Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CASS INFORMATION SYSTEMS INC | |
Entity Central Index Key | 708,781 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 12,289,377 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 11,835 | $ 17,422 |
Interest-bearing deposits in other financial institutions | 145,803 | 152,056 |
Federal funds sold and other short-term investments | 22,409 | 58,632 |
Cash and cash equivalents | 180,047 | 228,110 |
Securities available-for-sale, at fair value | 446,440 | 470,523 |
Loans | 726,239 | 686,231 |
Less: Allowance for loan losses | 10,220 | 10,205 |
Loans, net | 716,019 | 676,026 |
Premises and equipment, net | 22,615 | 21,586 |
Investment in bank-owned life insurance | 17,270 | 16,927 |
Payments in excess of funding | 161,080 | 139,103 |
Goodwill | 12,569 | 12,569 |
Other intangible assets, net | 1,664 | 1,996 |
Other assets | 120,543 | 90,369 |
Total assets | 1,678,247 | 1,657,209 |
Deposits: | ||
Noninterest-bearing | 270,395 | 281,541 |
Interest-bearing | 364,329 | 396,547 |
Total deposits | 634,724 | 678,088 |
Accounts and drafts payable | 769,638 | 715,888 |
Other liabilities | 44,543 | 38,145 |
Total liabilities | 1,448,905 | 1,432,121 |
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 and 13,047,997 shares issued at September 30, 2018 and December 31, 2017 | 6,524 | 6,524 |
Additional paid-in capital | 204,971 | 204,631 |
Retained earnings | 73,183 | 59,314 |
Common shares in treasury, at cost (746,260 shares at September 30, 2018 and 760,962 shares at December 31, 2017) | (32,029) | (32,061) |
Accumulated other comprehensive loss | (23,307) | (13,320) |
Total shareholders' equity | 229,342 | 225,088 |
Total liabilities and shareholders' equity | $ 1,678,247 | $ 1,657,209 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.50 | $ .50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value per share | $ 0.50 | $ .50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 13,047,997 | 13,047,997 |
Treasury stock, shares | 746,260 | 760,962 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 26,020 | $ 23,761 | $ 76,068 | $ 69,332 |
Bank service fees | 300 | 327 | 994 | 998 |
Losses on sales of securities | (42) | |||
Other | 115 | 119 | 429 | 448 |
Total fee revenue and other income | 26,435 | 24,207 | 77,449 | 70,778 |
Interest Income: | ||||
Interest and fees on loans | 8,367 | 7,209 | 23,832 | 21,266 |
Interest and dividends on securities: | ||||
Taxable | 618 | 107 | 1,428 | 268 |
Exempt from federal income taxes | 2,111 | 2,605 | 7,008 | 7,865 |
Interest on federal funds sold and other short-term investments | 1,119 | 744 | 2,748 | 1,597 |
Total interest income | 12,215 | 10,665 | 35,016 | 30,996 |
Interest Expense: | ||||
Interest on deposits | 1,029 | 571 | 2,502 | 1,521 |
Net interest income | 11,186 | 10,094 | 32,514 | 29,475 |
Provision for loan losses | ||||
Net interest income after provision for loan losses | 11,186 | 10,094 | 32,514 | 29,475 |
Total net revenue | 37,621 | 34,301 | 109,963 | 100,253 |
Operating Expense: | ||||
Personnel | 21,747 | 19,423 | 63,718 | 57,384 |
Occupancy | 975 | 903 | 2,754 | 2,634 |
Equipment | 1,434 | 1,242 | 4,150 | 3,746 |
Amortization of intangible assets | 110 | 110 | 331 | 317 |
Other operating expense | 4,264 | 3,364 | 11,222 | 10,180 |
Total operating expense | 28,530 | 25,042 | 82,175 | 74,261 |
Income before income tax expense | 9,091 | 9,259 | 27,788 | 25,992 |
Income tax expense | 1,481 | 2,396 | 4,577 | 6,309 |
Net income | $ 7,610 | $ 6,863 | $ 23,211 | $ 19,683 |
Basic earnings per share | $ 0.62 | $ 0.56 | $ 1.90 | $ 1.61 |
Diluted earnings per share | $ 0.61 | $ 0.55 | $ 1.87 | $ 1.58 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Comprehensive income: | ||||
Net income | $ 7,610 | $ 6,863 | $ 23,211 | $ 19,683 |
Other comprehensive income: | ||||
Net unrealized (loss) gain on securities available-for-sale | (2,835) | (99) | (13,029) | 8,246 |
Tax effect | 675 | 37 | 3,101 | (3,063) |
Reclassification adjustments for losses included in net income | 42 | |||
Tax effect | (10) | |||
Foreign currency translation adjustments | (21) | 41 | (91) | 143 |
Total comprehensive income | $ 5,429 | $ 6,842 | $ 13,224 | $ 25,009 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net income | $ 23,211 | $ 19,683 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,524 | 8,361 |
Net losses on sales of securities | 42 | |
Stock-based compensation expense | 2,238 | 1,658 |
Increase in income tax liability | 773 | 551 |
Increase in pension liability | 3,688 | 3,476 |
Decrease (increase) in accounts receivable | 4,027 | (3,637) |
Other operating activities, net | (3,707) | (2,156) |
Net cash provided by operating activities | 38,796 | 27,936 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 58,520 | |
Proceeds from maturities of securities available-for-sale | 26,041 | 33,856 |
Purchase of securities available-for-sale | (78,772) | (97,473) |
Net (increase) decrease in loans | (39,993) | 6,803 |
Net increase in payments in excess of funding | (21,977) | (14,455) |
Purchases of premises and equipment, net | (3,956) | (2,780) |
Net cash used in investing activities | (60,137) | (74,049) |
Cash Flows From Financing Activities: | ||
Net decrease in noninterest-bearing demand deposits | (11,146) | (3,243) |
Net decrease in interest-bearing demand and savings deposits | (35,988) | (6,504) |
Net increase (decrease) in time deposits | 3,771 | (2,984) |
Net increase in accounts and drafts payable | 27,849 | 44,946 |
Cash dividends paid | (9,342) | (7,725) |
Purchase of common shares for treasury | (1,409) | (2,270) |
Other financing activities, net | (457) | (752) |
Net cash (used in) provided by financing activities | (26,722) | 21,468 |
Net decrease in cash and cash equivalents | (48,063) | (24,645) |
Cash and cash equivalents at beginning of period | 228,110 | 266,743 |
Cash and cash equivalents at end of period | 180,047 | 242,098 |
Supplemental information: | ||
Cash paid for interest | 2,459 | 1,520 |
Cash paid for income taxes | $ 3,776 | $ 5,758 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share and per share data have been restated to give effect to the 10% stock dividend issued on December 15, 2017. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2017 . On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“FASB ASC 606”), and selected the modified retrospective transition method. The adoption of this new standard did not impact the Company’s results of operations or balance sheet and there was no cumulative effect of initially applying this new revenue standard to the opening balance of retained earnings. Since interest income on loans and securities are both excluded from this topic, a significant portion of the Company’s revenues are not subject to the new guidance. The services that fall within the scope of FASB ASC 606 are presented within fee revenue and other income in the Consolidated Statements of Income and are recognized as revenue as the obligation to the customer is satisfied. Services within the scope of FASB ASC 606 include transportation and facility payment and processing fees, bank service fees, and other real estate owned (“OREO”). Invoice processing and payment fees – The Company earns fees on a per-item basis for the services rendered on behalf of customers. Fees are earned over the course of a month, representing the period over with the performance obligation is satisfied. Bank service fees – Revenue from service fees consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds and, when applicable, pay interest on deposits. Service charges on deposit accounts are primarily all charges that are recognized on a monthly basis representing the period over which the performance obligation is satisfied. OREO – The Company currently does not have any OREO and has not in recent years. Net gains or losses would be recorded when other real estate is sold to a third party and substantially all of the consideration for the transfer of property is received. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 2 – Intangible Assets The Company accounts for intangible assets in accordance with FASB ASC 350, “Goodwill and Other Intangible Assets,” (“FASB 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. Details of the Company’s intangible assets are as follows: September 30, 2018 December 31, 2017 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (2,979) $ 4,288 $ (2,702) Patents 72 (15) 72 (12) Non-compete agreements 332 (317) 332 (291) Software 234 (234) 234 (234) Other 500 (217) 500 (191) Unamortized intangible assets: Goodwill 1 12,796 (227) 12,796 (227) Total intangible assets $ 18,222 $ (3,989) $ 18,222 $ (3,657) 1 . 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 $331,000 and $317,000 for the nine-month periods ended September 30, 2018 and 2017, respectively. Estimated annual amortization of intangibles is as follows: $442,000 in 2018, $412,000 in 2019, $406,000 in each of 2020 and 2021, and $88,000 in 2022. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – 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. There were no anti-dilutive shares in the three and nine months ended September 30, 2018 and 2017. The calculations of basic and diluted earnings per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands except share and per share data) 2018 2017 2018 2017 Basic: Net income $ 7,610 $ 6,863 $ 23,211 $ 19,683 Weighted-average common shares outstanding 12,245,975 12,251,084 12,239,678 12,257,337 Basic earnings per share $ .62 $ .56 $ 1.90 $ 1.61 Diluted: Net income $ 7,610 $ 6,863 $ 23,211 $ 19,683 Weighted-average common shares outstanding 12,245,975 12,251,084 12,239,678 12,257,337 Effect of dilutive restricted stock and stock appreciation rights 206,388 176,767 200,315 179,029 Weighted-average common shares outstanding assuming dilution assuming dilution 12,452,363 12,427,851 12,439,993 12,436,366 Diluted earnings per share $ .61 $ .55 $ 1.87 $ 1.58 |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stock Repurchases | Note 4 – Stock Repurchases The Company maintains a treasury stock buyback program pursuant to which the Board of Directors has authorized the repurchase of up to 500,000 shares of the Company’s common stock. As restored by the Board of Directors on October 24, 2017, the program provides that the Company may repurchase up to an aggregate of 500,000 shares of common stock and has no expiration date. The Company repurchased 0 and 41,846 shares during the three-month periods and 15,547 and 41,846 during the nine-month periods ended September 30, 2018 and 2017, respectively. As of September 30, 2018, 484,453 shares remained available for repurchase under the program. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions. |
Industry Segment Information
Industry Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 5 – Industry Segment Information The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries as well as supporting the banking needs of the Information Services segment. The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Management evaluates segment performance based on tax-equivalized (as defined in the footnote to the chart on the following table) pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value. Substantially all revenue originates from, and all long-lived assets are located within the United States, and no revenue from any customer of any segment exceeds 10% of the Company’s consolidated revenue. Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Segment interest income is a function of the relative share of average funding sources generated by each segment multiplied by the following rates: ● Information Services – one or more fixed rates depending upon the specific characteristics of the funding source, and ● Banking Services – a variable rate that is based upon the overall performance of the Company’s earning assets. Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other. Summarized information about the Company’s operations in each industry segment is as follows: Corporate, Information Banking Eliminations (In thousands) Services Services and Other Total Three Months Ended September 30, 2018 Fee income from customers $ 26,263 $ 253 $ (81) $ 26,435 Interest income* 5,703 5,856 1,219 12,778 Interest expense — 1,029 — 1,029 Intersegment income (expense) — 467 (467) — Tax-equivalized pre-tax income* 6,525 2,538 591 9,654 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Funding Sources 650,267 550,594 — 1,200,861 Three Months Ended September 30, 2017 Fee income from customers $ 23,809 $ 279 $ 119 $ 24,207 Interest income* 5,465 5,894 725 12,084 Interest expense — 571 — 571 Intersegment income (expense) — 339 (339) — Tax-equivalized pre-tax income* 7,130 3,179 369 10,678 Goodwill 12,433 136 — 12,569 Other intangible assets, net 2,106 — — 2,106 Total Assets 820,596 738,478 (2,324) 1,556,750 Funding Sources 631,539 601,355 — 1,232,894 Nine Months Ended September 30, 2018 Fee income from customers $ 76,397 $ 947 $ 105 $ 77,449 Interest income* 16,553 17,342 2,996 36,891 Interest expense — 2,502 — 2,502 Intersegment income (expense) — 1,415 (1,415) — Tax-equivalized pre-tax income* 19,326 8,814 1,523 29,663 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Funding Sources 637,508 566,390 — 1,203,898 Nine Months Ended September 30, 2017 Fee income from customers $ 69,453 $ 958 $ 367 $ 70,778 Interest income* 15,237 17,602 2,447 35,286 Interest expense — 1,521 — 1,521 Intersegment income (expense) — 962 (962) — Tax-equivalized pre-tax income* 18,946 9,922 1,414 30,282 Goodwill 12,433 136 — 12,569 Other intangible assets, net 2,106 — — 2,106 Total Assets 820,596 738,478 (2,324) 1,556,750 Funding Sources 596,919 593,709 — 1,190,628 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $564,000 and $1,419,000 for the Three Months Ended 2018 and 2017, respectively, and $1,875,000 and $4,290,000 for the Nine Months Ended 2018 and 2017, respectively. |
Loans by Type
Loans by Type | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows: September 30, December 31, (In thousands) 2018 2017 Commercial and industrial $ 270,854 $ 236,394 Real estate: Commercial: Mortgage 92,972 94,675 Construction 22,883 9,359 Faith-based: Mortgage 307,679 316,073 Construction 30,838 25,948 Industrial Revenue Bonds 921 3,374 Other 92 408 Total loans $ 726,239 $ 686,231 The following table presents the aging of loans by loan categories at September 30, 2018 and December 31, 2017: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans September 30, 2018 Commercial and industrial $ 270,854 $ — $ — $ — $ — $ 270,854 Real estate: Commercial: Mortgage 92,972 — — — — 92,972 Construction 22,883 — — — — 22,883 Faith-based: Mortgage 307,679 — — — — 307,679 Construction 30,838 — — — — 30,838 Industrial revenue bonds 921 — — — — 921 Other 92 — — — — 92 Total $ 726,239 $ — $ — $ — $ — $ 726,239 December 31, 2017 Commercial and industrial $ 236,394 $ — $ — $ — $ — $ 236,394 Real estate: Commercial: Mortgage 94,675 — — — — 94,675 Construction 9,359 — — — — 9,359 Faith-based: 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 credit exposure of the loan portfolio as of September 30, 2018 and 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 September 30, 2018 Commercial and industrial $ 267,696 $ 3,158 $ — $ 270,854 Real estate: Commercial: Mortgage 91,998 974 — 92,972 Construction 22,883 — — 22,883 Faith-based: Mortgage 307,596 83 — 307,679 Construction 30,838 — — 30,838 Industrial Revenue Bonds 921 — — 921 Other 92 — — 92 Total $ 722,024 $ 4,215 $ — $ 726,239 December 31, 2017 Commercial and industrial $ 234,271 $ 2,123 $ — $ 236,394 Real estate: Commercial: Mortgage 93,788 887 — 94,675 Construction 9,359 — — 9,359 Faith-based: 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 obligations. 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 nonperforming. 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. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” There were no impaired loans, loans delinquent 90 days or more and still accruing, or loans classified as troubled debt restructuring at September 30, 2018 and December 31, 2017. There were no foreclosed loans recorded as other real estate owned as of September 30, 2018 and December 31, 2017. A summary of the activity in the allowance for loan losses from December 31, 2017 to September 30, 2018 is as follows: December 31, Charge- September 30, (In thousands) 2017 Offs Recoveries Provision 2018 Commercial and industrial $ 3,652 $ — $ 15 $ 535 $ 4,202 Real estate: Commercial: Mortgage 1,394 — — (9) 1,385 Construction 70 — — 100 170 Faith-based: Mortgage 3,962 — — (105) 3,857 Construction 196 — — 34 230 Industrial Revenue Bonds 52 — — (38) 14 Other 879 — — (517) 362 Total $ 10,205 $ — $ 15 $ — $ 10,220 A summary of the activity in the allowance for loan losses from December 31, 2016 to September 30, 2017 is as follows: December 31, Charge- September 30, (In thousands) 2016 Offs Recoveries Provision 2017 Commercial and industrial $ 3,261 $ — $ 27 $ (61) $ 3,227 Real estate: Commercial: Mortgage 1,662 — — (160) 1,502 Construction 47 — — 54 101 Faith-based: Mortgage 4,027 — — 20 4,047 Construction 85 — — (26) 59 Industrial Revenue Bonds 101 — — (37) 64 Other 992 — — 210 1,202 Total $ 10,175 $ — $ 27 $ — $ 10,202 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. 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 September 30, 2018 and December 31, 2017, 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 or its subsidiaries 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. At September 30, 2018, the balance of unused loan commitments, standby and commercial letters of credit were $73,830,000, $12,917,000, and $3,740,000, respectively. Since some of the 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 or its subsidiaries may obtain and liquidate the collateral to recover amounts paid under guarantees on these financial instruments. The following table summarizes contractual cash obligations of the Company related to operating lease commitments and time deposits at September 30, 2018: Amount of Commitment Expiration per Period Less than 1-3 3-5 Over 5 (In thousands) Total 1 Year Years Years Years Operating lease commitments $ 10,075 $ 1,614 $ 3,570 $ 2,431 $ 2,460 Time deposits 56,269 43,033 10,769 2,467 — Total $ 66,344 $ 44,647 $ 14,339 $ 4,898 $ 2,460 The Company and its subsidiaries are involved in various pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate resolution of these legal actions and proceedings will not have a material effect upon the Company’s consolidated financial position or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-Based Compensation The Amended and Restated Omnibus Stock and Performance Compensation Plan (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, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company may issue shares out of treasury stock for these awards. During the nine months ended September 30, 2018, 28,527 restricted shares, 29,278 performance-based restricted shares, and 0 SARs were granted under the Omnibus Plan. Restricted Stock Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over a three-year 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 payments 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. As of September 30, 2018, the total unrecognized compensation expense related to non-vested restricted shares was $1,750,000, and the related weighted-average period over which it is expected to be recognized is approximately 0.92 years. Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2018 Shares Fair Value Balance at December 31, 2017 78,166 $ 50.30 Granted 28,527 59.69 Vested (23,758) 46.83 Balance at September 30, 2018 82,935 $ 54.52 Performance-Based Restricted Stock In February of 2017, the Company granted three-year performance based restricted stock (“PBRS”) awards which are contingent upon the Company’s 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 aggregate target number of PBRS shares granted was 25,342 with an average grant date fair value of $59.20 per share. The 2018 expense related to these grants is currently estimated to be $690,000 and is based on the grant date fair value of the awards and the Company’s achievement of 132% 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. In February and July of 2018, the Company granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2018 through December 31, 2020. 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 aggregate target number of PBRS shares granted was 29,278 with an average grant date fair value of $58.70 per share. The 2018 expense related to these grants is currently estimated to be $741,000 and is based on the grant date fair value of the awards and the Company’s achievement of 144% 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 and no expense recognized during the nine months ended September 30, 2018. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2018: Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term Years (In thousands) Outstanding at December 31, 2017 234,236 $ 34.97 5.03 $ 7,291 Exercised (36,624) 30.31 Outstanding at September 30, 2018 197,612 35.84 3.75 5,787 Exercisable at September 30, 2018 197,612 $ 35.84 3.75 $ 5,787 There were no non-vested SARs at June 30, 2018. |
Defined Pension Plans
Defined Pension Plans | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Defined Pension Plans | Note 9 – Defined Pension Plans The Company has a noncontributory defined-benefit pension 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. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs: Estimated Actual (In thousands) 2018 2017 Service cost – benefits earned during the year $ 4,294 $ 3,733 Interest cost on projected benefit obligations 3,655 3,621 Expected return on plan assets (5,206) (4,681) Net amortization and deferral 1,409 1,382 Net periodic pension cost $ 4,152 $ 4,055 Pension costs recorded to expense were $1,049,000 and $1,033,000 for the three-month periods ended September 30, 2018 and 2017, respectively, and totaled $3,147,000 and $3,070,000 for the nine-month periods ended September 30, 2018 and 2017, respectively. Pension costs increased in 2018 primarily due to a decrease in the discount rate. The Company made no contribution to the plan during the nine-month period ended September 30, 2018 and is evaluating the amount of additional contributions, if any, in the remainder of 2018. In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2017 and an estimate for 2018: Estimated Actual (In thousands) 2018 2017 Service cost – benefits earned during the year $ 92 $ 143 Interest cost on projected benefit obligation 348 360 Net amortization 581 324 Net periodic pension cost $ 1,021 $ 827 Pension costs recorded to expense were $255,000 and $210,000 for the three-month periods ended September 30, 2018 and 2017, respectively, and were $766,000 and $628,000 for the nine-month periods ended September 30, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As of September 30, 2018, the Company’s unrecognized tax benefits were approximately $1,822,000, of which $1,652,000 would, if recognized, affect the Company’s effective tax rate. As of December 31, 2017, the Company’s unrecognized tax benefits were approximately $1,632,000, of which $1,464,000 would, if recognized, affect the Company’s effective tax rate. During the next 12 months, the Company may realize a reduction of its unrecognized tax benefits of approximately $315,000 due to the lapse of federal and state statutes of limitations. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company had $191,000 and $139,000 of gross interest accrued as of September 30, 2018 and December 31, 2017, respectively. There were no penalties for unrecognized tax benefits accrued at September 30, 2018 and December 31, 2017. The Company is subject to income tax in the U.S. federal jurisdiction and numerous state jurisdictions. U.S. federal income tax returns for tax years 2014 through 2017 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 2017. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21% beginning January 1, 2018; (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. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), providing guidance on accounting for the Tax Act. The Company has not completed the accounting for the income tax effects of the Tax Act. In accordance with SAB 118, a provisional charge was recorded in December 2017 based on reasonable estimates of certain effects of the Tax Act. The Company expects to finalize its provisional amounts by the fourth quarter of 2018. |
Investment in Securities
Investment in Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | Note 11 – Investment in Securities Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale 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 fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 337,378 $ 2,187 $ 4,691 $ 334,874 U.S. government agencies 108,158 — 2,337 105,821 Certificates of deposit 5,745 — — 5,745 Total $ 451,281 $ 2,187 $ 7,028 $ 446,440 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 The fair values of securities with unrealized losses are as follows: September 30, 2018 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 $ 178,137 $ 2,905 $ 36,804 $ 1,786 $ 214,941 $ 4,691 U.S. government agencies 79,513 974 26,308 1,363 105,821 2,337 Total $ 257,650 $ 3,879 $ 63,112 $ 3,149 $ 320,762 $ 7,028 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 Total $ 68,938 $ 499 $ 42,568 $ 884 $ 111,506 $ 1,383 There were 197 securities, or 61% of the total (35 greater than 12 months), in an unrealized loss position as of September 30, 2018. There were 64 securities, or 17% of the total (24 greater than 12 months), in an unrealized loss position as of December 31, 2017. All unrealized losses were reviewed to determine whether the losses were other than temporary. Management believes that all unrealized losses are temporary since they were market driven, 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 investment 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. September 30, 2018 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 13,741 $ 13,782 Due after 1 year through 5 years 121,838 121,626 Due after 5 years through 10 years 232,821 231,333 Due after 10 years 82,881 79,699 Total $ 451,281 $ 446,440 There were no sales of investment securities classified as available for sale for the three months ended September 30, 2018 or 2017. Proceeds from sales of investment securities classified as available for sale were $58,520,000 and $0 for the nine months ended September 30, 2018 and 2017, respectively. There were no gross realized gains for the three months ended September 30, 2018 or 2017. Gross realized losses were $42,000 and $0 for the nine months ended September 30, 2018 and 2017, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at September 30, 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: September 30, 2018 December 31, 2017 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 180,047 $ 180,047 $ 228,110 $ 228,110 Investment securities 446,440 446,440 470,523 470,523 Loans, net 716,019 709,807 676,026 675,020 Accrued interest receivable 6,323 6,323 7,413 7,413 Total $ 1,348,829 $ 1,342,617 $ 1,382,072 $ 1,381,066 Balance sheet liabilities: Deposits $ 634,724 $ 632,162 $ 678,088 $ 678,346 Accounts and drafts payable 769,638 769,638 661,888 661,888 Accrued interest payable 99 99 55 55 Total $ 1,404,461 $ 1,401,899 $ 1,340,031 $ 1,340,289 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 11, “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 result in a fair valuation. The estimated fair values of loans disclosed above as of September 30, 2018 follow the guidance in Accounting Standards Update 2016-01 which prescribes an exit price approach in estimating and disclosing fair value. Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or a 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. There were no transfers between Levels 1 and 2 of the fair value hierarchy for the nine months ended September 30, 2018 and 2017. No financial instruments are measured using Level 3 inputs for the nine months ended September 30, 2018 and 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events On October 23, 2018, the Company’s Board of Directors declared a 20% common stock dividend payable on December 14, 2018 to shareholders of record on December 4, 2018. Shareholders will receive one additional share of Cass common stock for each five shares of common stock owned. No fractional shares will be issued. Shareholders will receive cash for any fractional shares owned based on the share price reported by the Nasdaq Stock Market at the close of trading on December 4, 2018. Additionally, on October 23, 2018, the Company’s Board of Directors declared a fourth quarter cash dividend of $0.26 per share payable on December 14, 2018 to shareholders of record on December 4, 2018. The cash dividend will apply to all shares of common stock held after the 20% common stock dividend is completed. The Board of Directors voted to restore the capacity of the Company’s stock repurchase program to 500,000 shares. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: September 30, 2018 December 31, 2017 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (2,979) $ 4,288 $ (2,702) Patents 72 (15) 72 (12) Non-compete agreements 332 (317) 332 (291) Software 234 (234) 234 (234) Other 500 (217) 500 (191) Unamortized intangible assets: Goodwill 1 12,796 (227) 12,796 (227) Total intangible assets $ 18,222 $ (3,989) $ 18,222 $ (3,657) 1 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The calculations of basic and diluted earnings per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands except share and per share data) 2018 2017 2018 2017 Basic: Net income $ 7,610 $ 6,863 $ 23,211 $ 19,683 Weighted-average common shares outstanding 12,245,975 12,251,084 12,239,678 12,257,337 Basic earnings per share $ .62 $ .56 $ 1.90 $ 1.61 Diluted: Net income $ 7,610 $ 6,863 $ 23,211 $ 19,683 Weighted-average common shares outstanding 12,245,975 12,251,084 12,239,678 12,257,337 Effect of dilutive restricted stock and stock appreciation rights 206,388 176,767 200,315 179,029 Weighted-average common shares outstanding assuming dilution assuming dilution 12,452,363 12,427,851 12,439,993 12,436,366 Diluted earnings per share $ .61 $ .55 $ 1.87 $ 1.58 |
Industry Segment Information (T
Industry Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Company's Operations in Each Segment | Summarized information about the Company’s operations in each industry segment is as follows: Corporate, Information Banking Eliminations (In thousands) Services Services and Other Total Three Months Ended September 30, 2018 Fee income from customers $ 26,263 $ 253 $ (81) $ 26,435 Interest income* 5,703 5,856 1,219 12,778 Interest expense — 1,029 — 1,029 Intersegment income (expense) — 467 (467) — Tax-equivalized pre-tax income* 6,525 2,538 591 9,654 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Funding Sources 650,267 550,594 — 1,200,861 Three Months Ended September 30, 2017 Fee income from customers $ 23,809 $ 279 $ 119 $ 24,207 Interest income* 5,465 5,894 725 12,084 Interest expense — 571 — 571 Intersegment income (expense) — 339 (339) — Tax-equivalized pre-tax income* 7,130 3,179 369 10,678 Goodwill 12,433 136 — 12,569 Other intangible assets, net 2,106 — — 2,106 Total Assets 820,596 738,478 (2,324) 1,556,750 Funding Sources 631,539 601,355 — 1,232,894 Nine Months Ended September 30, 2018 Fee income from customers $ 76,397 $ 947 $ 105 $ 77,449 Interest income* 16,553 17,342 2,996 36,891 Interest expense — 2,502 — 2,502 Intersegment income (expense) — 1,415 (1,415) — Tax-equivalized pre-tax income* 19,326 8,814 1,523 29,663 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Funding Sources 637,508 566,390 — 1,203,898 Nine Months Ended September 30, 2017 Fee income from customers $ 69,453 $ 958 $ 367 $ 70,778 Interest income* 15,237 17,602 2,447 35,286 Interest expense — 1,521 — 1,521 Intersegment income (expense) — 962 (962) — Tax-equivalized pre-tax income* 18,946 9,922 1,414 30,282 Goodwill 12,433 136 — 12,569 Other intangible assets, net 2,106 — — 2,106 Total Assets 820,596 738,478 (2,324) 1,556,750 Funding Sources 596,919 593,709 — 1,190,628 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $564,000 and $1,419,000 for the Three Months Ended 2018 and 2017, respectively, and $1,875,000 and $4,290,000 for the Nine Months Ended 2018 and 2017, respectively. |
Loans by Type (Tables)
Loans by Type (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: September 30, December 31, (In thousands) 2018 2017 Commercial and industrial $ 270,854 $ 236,394 Real estate: Commercial: Mortgage 92,972 94,675 Construction 22,883 9,359 Faith-based: Mortgage 307,679 316,073 Construction 30,838 25,948 Industrial Revenue Bonds 921 3,374 Other 92 408 Total loans $ 726,239 $ 686,231 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans by loan categories at September 30, 2018 and December 31, 2017: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans September 30, 2018 Commercial and industrial $ 270,854 $ — $ — $ — $ — $ 270,854 Real estate: Commercial: Mortgage 92,972 — — — — 92,972 Construction 22,883 — — — — 22,883 Faith-based: Mortgage 307,679 — — — — 307,679 Construction 30,838 — — — — 30,838 Industrial revenue bonds 921 — — — — 921 Other 92 — — — — 92 Total $ 726,239 $ — $ — $ — $ — $ 726,239 December 31, 2017 Commercial and industrial $ 236,394 $ — $ — $ — $ — $ 236,394 Real estate: Commercial: Mortgage 94,675 — — — — 94,675 Construction 9,359 — — — — 9,359 Faith-based: 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 |
Schedule of Credit Exposure of the Loan Portfolio | The following table presents the credit exposure of the loan portfolio as of September 30, 2018 and 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 September 30, 2018 Commercial and industrial $ 267,696 $ 3,158 $ — $ 270,854 Real estate: Commercial: Mortgage 91,998 974 — 92,972 Construction 22,883 — — 22,883 Faith-based: Mortgage 307,596 83 — 307,679 Construction 30,838 — — 30,838 Industrial Revenue Bonds 921 — — 921 Other 92 — — 92 Total $ 722,024 $ 4,215 $ — $ 726,239 December 31, 2017 Commercial and industrial $ 234,271 $ 2,123 $ — $ 236,394 Real estate: Commercial: Mortgage 93,788 887 — 94,675 Construction 9,359 — — 9,359 Faith-based: 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 obligations. 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 | A summary of the activity in the allowance for loan losses from December 31, 2017 to September 30, 2018 is as follows: December 31, Charge- September 30, (In thousands) 2017 Offs Recoveries Provision 2018 Commercial and industrial $ 3,652 $ — $ 15 $ 535 $ 4,202 Real estate: Commercial: Mortgage 1,394 — — (9) 1,385 Construction 70 — — 100 170 Faith-based: Mortgage 3,962 — — (105) 3,857 Construction 196 — — 34 230 Industrial Revenue Bonds 52 — — (38) 14 Other 879 — — (517) 362 Total $ 10,205 $ — $ 15 $ — $ 10,220 A summary of the activity in the allowance for loan losses from December 31, 2016 to September 30, 2017 is as follows: December 31, Charge- September 30, (In thousands) 2016 Offs Recoveries Provision 2017 Commercial and industrial $ 3,261 $ — $ 27 $ (61) $ 3,227 Real estate: Commercial: Mortgage 1,662 — — (160) 1,502 Construction 47 — — 54 101 Faith-based: Mortgage 4,027 — — 20 4,047 Construction 85 — — (26) 59 Industrial Revenue Bonds 101 — — (37) 64 Other 992 — — 210 1,202 Total $ 10,175 $ — $ 27 $ — $ 10,202 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Cash Obligation of Operating Lease Commitments | The following table summarizes contractual cash obligations of the Company related to operating lease commitments and time deposits at September 30, 2018: Amount of Commitment Expiration per Period Less than 1-3 3-5 Over 5 (In thousands) Total 1 Year Years Years Years Operating lease commitments $ 10,075 $ 1,614 $ 3,570 $ 2,431 $ 2,460 Time deposits 56,269 43,033 10,769 2,467 — Total $ 66,344 $ 44,647 $ 14,339 $ 4,898 $ 2,460 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2018 Shares Fair Value Balance at December 31, 2017 78,166 $ 50.30 Granted 28,527 59.69 Vested (23,758) 46.83 Balance at September 30, 2018 82,935 $ 54.52 |
Summary of SARs Activity | Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2018: Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term Years (In thousands) Outstanding at December 31, 2017 234,236 $ 34.97 5.03 $ 7,291 Exercised (36,624) 30.31 Outstanding at September 30, 2018 197,612 35.84 3.75 5,787 Exercisable at September 30, 2018 197,612 $ 35.84 3.75 $ 5,787 |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The following table represents the components of the net periodic pension costs: Estimated Actual (In thousands) 2018 2017 Service cost – benefits earned during the year $ 4,294 $ 3,733 Interest cost on projected benefit obligations 3,655 3,621 Expected return on plan assets (5,206) (4,681) Net amortization and deferral 1,409 1,382 Net periodic pension cost $ 4,152 $ 4,055 |
Schedule of Unfunded Supplemental Executive Retirement Plan | The following table represents the components of the net periodic pension costs for 2017 and an estimate for 2018: Estimated Actual (In thousands) 2018 2017 Service cost – benefits earned during the year $ 92 $ 143 Interest cost on projected benefit obligation 348 360 Net amortization 581 324 Net periodic pension cost $ 1,021 $ 827 |
Investment in Securities (Table
Investment in Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 337,378 $ 2,187 $ 4,691 $ 334,874 U.S. government agencies 108,158 — 2,337 105,821 Certificates of deposit 5,745 — — 5,745 Total $ 451,281 $ 2,187 $ 7,028 $ 446,440 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 |
Schedule of the Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses are as follows: September 30, 2018 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 $ 178,137 $ 2,905 $ 36,804 $ 1,786 $ 214,941 $ 4,691 U.S. government agencies 79,513 974 26,308 1,363 105,821 2,337 Total $ 257,650 $ 3,879 $ 63,112 $ 3,149 $ 320,762 $ 7,028 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 Total $ 68,938 $ 499 $ 42,568 $ 884 $ 111,506 $ 1,383 |
Schedule of Amortized Cost and Fair Value of Investment | The amortized cost and fair value of investment 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. September 30, 2018 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 13,741 $ 13,782 Due after 1 year through 5 years 121,838 121,626 Due after 5 years through 10 years 232,821 231,333 Due after 10 years 82,881 79,699 Total $ 451,281 $ 446,440 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of the Fair Value of Financial Instruments | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: September 30, 2018 December 31, 2017 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 180,047 $ 180,047 $ 228,110 $ 228,110 Investment securities 446,440 446,440 470,523 470,523 Loans, net 716,019 709,807 676,026 675,020 Accrued interest receivable 6,323 6,323 7,413 7,413 Total $ 1,348,829 $ 1,342,617 $ 1,382,072 $ 1,381,066 Balance sheet liabilities: Deposits $ 634,724 $ 632,162 $ 678,088 $ 678,346 Accounts and drafts payable 769,638 769,638 661,888 661,888 Accrued interest payable 99 99 55 55 Total $ 1,404,461 $ 1,401,899 $ 1,340,031 $ 1,340,289 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 110 | $ 110 | $ 331 | $ 317 |
2,018 | 442 | 442 | ||
2,019 | 412 | 412 | ||
2,020 | 406 | 406 | ||
2,021 | 406 | 406 | ||
2,022 | $ 88 | $ 88 | ||
Customer Lists [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 7 years | |||
Customer Lists [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 10 years | |||
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 18 years | |||
Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 3 years | |||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 15 years | |||
Non-compete Agreements [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 2 years | |||
Non-compete Agreements [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 5 years |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Company's Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | $ 12,796 | $ 12,796 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Total intangible assets | 18,222 | 18,222 | |
Accumulated Amortization | (3,989) | (3,657) | |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,288 | 4,288 | |
Accumulated Amortization | (2,979) | (2,702) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (15) | (12) | |
Non-compete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 332 | 332 | |
Accumulated Amortization | (317) | (291) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 234 | 234 | |
Accumulated Amortization | (234) | (234) | |
Other [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (217) | $ (191) | |
[1] | Amortization through December 31, 2001 prior to adoption of FASB ASC 350 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic: | ||||
Net income | $ 7,610 | $ 6,863 | $ 23,211 | $ 19,683 |
Weighted-average common shares outstanding | 12,245,975 | 12,251,084 | 12,239,678 | 12,257,337 |
Basic earnings per share | $ 0.62 | $ 0.56 | $ 1.90 | $ 1.61 |
Diluted: | ||||
Net Income | $ 7,610 | $ 6,863 | $ 23,211 | $ 19,683 |
Weighted-average common shares outstanding | 12,245,975 | 12,251,084 | 12,239,678 | 12,257,337 |
Effect of dilutive restricted stock and stock appreciation rights | 206,388 | 176,767 | 200,315 | 179,029 |
Weighted-average common shares outstanding assuming dilution | 12,452,363 | 12,427,851 | 12,439,993 | 12,436,366 |
Diluted earnings per share | $ 0.61 | $ 0.55 | $ 1.87 | $ 1.58 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Number of shares authorized to be repurchased | 500,000 | 500,000 | 500,000 | 500,000 |
Shares repurchased | 0 | 41,846 | 15,547 | 41,846 |
Remaining number of shares available for repurchase | 484,453 | 484,453 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Fee revenue and other income: | ||||||
Fee income from customers | $ 26,435 | $ 24,207 | $ 77,449 | $ 70,778 | ||
Interest income | [1] | 12,778 | 12,084 | 36,891 | 35,286 | |
Interest expense | 1,029 | 571 | 2,502 | 1,521 | ||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 9,654 | 10,678 | 29,663 | 30,282 | |
Goodwill | 12,569 | 12,569 | 12,569 | 12,569 | $ 12,569 | |
Other intangible assets, net | 1,664 | 2,106 | 1,664 | 2,106 | ||
Total assets | 1,678,247 | 1,556,750 | 1,678,247 | 1,556,750 | $ 1,657,209 | |
Funding Sources | 1,200,861 | 1,232,894 | 1,203,898 | 1,190,628 | ||
Information Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | 26,263 | 23,809 | 76,397 | 69,453 | ||
Interest income | [1] | 5,703 | 5,465 | 16,553 | 15,237 | |
Interest expense | ||||||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 6,525 | 7,130 | 19,326 | 18,946 | |
Goodwill | 12,433 | 12,433 | 12,433 | 12,433 | ||
Other intangible assets, net | 1,664 | 2,106 | 1,664 | 2,106 | ||
Total assets | 903,055 | 820,596 | 903,055 | 820,596 | ||
Funding Sources | 650,267 | 631,539 | 637,508 | 596,919 | ||
Banking Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | 253 | 279 | 947 | 958 | ||
Interest income | [1] | 5,856 | 5,894 | 17,342 | 17,602 | |
Interest expense | 1,029 | 571 | 2,502 | 1,521 | ||
Intersegment income (expense) | 467 | 339 | 1,415 | 962 | ||
Tax-equivalized pre-tax income | [1] | 2,538 | 3,179 | 8,814 | 9,922 | |
Goodwill | 136 | 136 | 136 | 136 | ||
Other intangible assets, net | ||||||
Total assets | 847,673 | 738,478 | 847,673 | 738,478 | ||
Funding Sources | 550,594 | 601,355 | 566,390 | 593,709 | ||
Corporate Eliminations and Other [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | (81) | 119 | 105 | 367 | ||
Interest income | [1] | 1,219 | 725 | 2,996 | 2,447 | |
Interest expense | ||||||
Intersegment income (expense) | (467) | (339) | (1,415) | (962) | ||
Tax-equivalized pre-tax income | [1] | 591 | 369 | 1,523 | 1,414 | |
Goodwill | ||||||
Other intangible assets, net | ||||||
Total assets | (72,481) | (2,324) | (72,481) | (2,324) | ||
Funding Sources | ||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $564,000 and $1,419,000 for the Three Months Ended 2018 and 2017, respectively, and $1,875,000 and $4,290,000 for the Nine Months Ended 2018 and 2017, respectively. |
Loans by Type (Summary of Loan
Loans by Type (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Participating Mortgage Loans [Line Items] | ||
Loans | $ 726,239 | $ 686,231 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 270,854 | 236,394 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 92,972 | 94,675 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 22,883 | 9,359 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 307,679 | 316,073 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 30,838 | 25,948 |
Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 921 | 3,374 |
Other Loan [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | $ 92 | $ 408 |
Loans by Type (Schedule of the
Loans by Type (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 726,239 | 686,231 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 270,854 | 236,394 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 92,972 | 94,675 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 22,883 | 9,359 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 307,679 | 316,073 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 30,838 | 25,948 |
Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 921 | 3,374 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 92 | 408 |
Current [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 726,239 | 686,231 |
Current [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 270,854 | 236,394 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 92,972 | 94,675 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 22,883 | 9,359 |
Current [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 307,679 | 316,073 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 30,838 | 25,948 |
Current [Member] | Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 921 | 3,374 |
Current [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 92 | 408 |
30 to 59 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due |
Loans by Type (Schedule of th_2
Loans by Type (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Participating Mortgage Loans [Line Items] | |||
Loans | $ 726,239 | $ 686,231 | |
Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 722,024 | 683,190 |
Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 4,215 | 3,041 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Commercial and Industrial [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 270,854 | 236,394 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 267,696 | 234,271 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 3,158 | 2,123 |
Commercial and Industrial [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 92,972 | 94,675 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 91,998 | 93,788 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 974 | 887 |
Real Estate Commercial Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 22,883 | 9,359 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 22,883 | 9,359 |
Real Estate Commercial Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 307,679 | 316,073 | |
Real Estate Faith-based Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 307,596 | 316,042 |
Real Estate Faith-based Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 83 | 31 |
Real Estate Faith-based Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 30,838 | 25,948 | |
Real Estate Faith-based Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 30,838 | 25,948 |
Real Estate Faith-based Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Industrial Revenue Bonds [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 921 | 3,374 | |
Industrial Revenue Bonds [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 921 | 3,374 |
Industrial Revenue Bonds [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Industrial Revenue Bonds [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 92 | 408 | |
Other Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 92 | 408 |
Other Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
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 obligations. | ||
[2] | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Loans by Type (Summary of Allow
Loans by Type (Summary of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | $ 10,205 | $ 10,175 |
Charge-Offs | ||
Recoveries | 15 | 27 |
Provision | ||
Ending Balance | 10,220 | 10,202 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 3,652 | 3,261 |
Charge-Offs | ||
Recoveries | 15 | 27 |
Provision | 535 | (61) |
Ending Balance | 4,202 | 3,227 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 1,394 | 1,662 |
Charge-Offs | ||
Recoveries | ||
Provision | (9) | (160) |
Ending Balance | 1,385 | 1,502 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 70 | 47 |
Charge-Offs | ||
Recoveries | ||
Provision | 100 | 54 |
Ending Balance | 170 | 101 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 3,962 | 4,027 |
Charge-Offs | ||
Recoveries | ||
Provision | (105) | 20 |
Ending Balance | 3,857 | 4,047 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 196 | 85 |
Charge-Offs | ||
Recoveries | ||
Provision | 34 | (26) |
Ending Balance | 230 | 59 |
Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 52 | 101 |
Charge-Offs | ||
Recoveries | ||
Provision | (38) | (37) |
Ending Balance | 14 | 64 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 879 | 992 |
Charge-Offs | ||
Recoveries | ||
Provision | (517) | 210 |
Ending Balance | $ 362 | $ 1,202 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unused loan commitments | $ 73,830 |
Standby letters of credit | 12,917 |
Commercial letters of credit | $ 3,740 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Company's Contractual Cash Obligations) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease commitments, Less than 1 Year | $ 1,614 |
Operating lease commitments, 1 to 3 Years | 3,570 |
Operating lease commitments, 3 to 5 Years | 2,431 |
Operating lease commitments, Over 5 Years | 2,460 |
Operating lease commitments, Total | 10,075 |
Time Deposits, Less than 1 Year | 43,033 |
Time Deposits, 1 to 3 Years | 10,769 |
Time Deposits, 3 to 5 Years | 2,467 |
Time Deposits, over 5 Years | |
Time Deposits, Total | 56,269 |
Commitments, Less than 1 Year | 44,647 |
Commitments, 1 to 3 Years | 14,339 |
Commitments, 3 to 5 Years | 4,898 |
Commitments, Over 5 Years | 2,460 |
Commitments, Total | $ 66,344 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity Incentive Plan, shares authorized | 1,500,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1,750 | |
Total unrecognized compensation expense, weighted average period | 11 months 1 day | |
Vesting period | 3 years | |
Granted, Shares | 28,527 | |
Fair value of granted shares per share | $ 59.69 | |
Performance-based restricted shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | 3 years |
Granted, Shares | 29,278 | 25,342 |
Fair value of granted shares per share | $ 58.70 | $ 59.20 |
Expense incurred to grant shares | $ 741 | $ 690 |
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% | 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% | 150.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Beginning balance | shares | 78,166 |
Granted | shares | 28,527 |
Vested | shares | (23,758) |
Ending balance | shares | 82,935 |
Fair Value | |
Beginning balance | $ / shares | $ 50.30 |
Granted | $ / shares | 59.69 |
Vested | $ / shares | 46.83 |
Ending balance | $ / shares | $ 54.52 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Company's SARs Activity) (Details) - SARs [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 234,236 | |
Exercised | (36,624) | |
Ending balance | 197,612 | 234,236 |
Exercisable | 197,612 | |
Outstanding, Weighted Average Exercise Price | $ 34.97 | |
Exercised, Weighted Average Exercise Price | 30.31 | |
Outstanding, Weighted Average Exercise Price | 35.84 | $ 34.97 |
Exercisable, Weighted Average Exercise Price | $ 35.84 | |
Outstanding, Average Remaining Contractual Term Years | 3 years 9 months | 5 years 11 days |
Exercisable, Average Remaining Contractual Term Years | 3 years 9 months | |
Outstanding, Aggregate Intrinsic Value | $ 7,291 | |
Outstanding, Aggregate Intrinsic Value | 5,787 | $ 7,291 |
Exercisable, Aggregate Intrinsic Value | $ 5,787 |
Defined Pension Plans (Narrativ
Defined Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | ||||
Pension period | 30 years | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 1,049 | $ 1,033 | $ 3,147 | 3,070 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 255 | $ 210 | $ 766 | $ 628 |
Defined Pension Plans (Schedule
Defined Pension Plans (Schedule of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 4,294 | $ 3,733 |
Interest cost on projected benefit obligations | 3,655 | 3,621 |
Expected return on plan assets | (5,206) | (4,681) |
Net amortization and deferral | 1,409 | 1,382 |
Net periodic pension cost | 4,152 | 4,055 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 92 | 143 |
Interest cost on projected benefit obligations | 348 | 360 |
Net amortization and deferral | 581 | 324 |
Net periodic pension cost | $ 1,021 | $ 827 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | $ 1,822 | $ 1,632 |
Amounts of tax benefits that would affect effective tax rate if recognized | 1,652 | 1,464 |
Income tax accrued interest | 191 | $ 139 |
Statute of limitations | $ 315 |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Number of securities that had an unrealized loss | 197 | 197 | 64 | ||
Number of securities that had an unrealized loss, greater than 12 months | 35 | 35 | 24 | ||
Percentage of total securities | 61.00% | 61.00% | 17.00% | ||
Proceeds from sales of securities available-for-sale | $ 58,520 | ||||
Gross realized gains | 42 | $ 0 | |||
Securities pledged as collateral | $ 3,750 | $ 3,750 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Fair Value | $ 446,440 | $ 470,523 |
Gross Unrealized Gains | 2,187 | 9,528 |
Gross Unrealized Losses | 7,028 | 1,383 |
Amortized Cost | 451,281 | 462,378 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value | 334,874 | 417,032 |
Gross Unrealized Gains | 2,187 | 9,528 |
Gross Unrealized Losses | 4,691 | 661 |
Amortized Cost | 337,378 | 408,165 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Fair Value | 105,821 | 45,500 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 2,337 | 722 |
Amortized Cost | 108,158 | 46,222 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Fair Value | 5,745 | 7,991 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 5,745 | $ 7,991 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Estimated fair value, less than 12 months | $ 257,650 | $ 68,938 |
Estimated fair value, 12 months or more | 63,112 | 42,568 |
Estimated fair value, total | 320,762 | 111,506 |
Unrealized losses, less than 12 months | 3,879 | 499 |
Unrealized losses, 12 months or more | 3,149 | 884 |
Unrealized losses, total | 7,028 | 1,383 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 178,137 | 34,755 |
Estimated fair value, 12 months or more | 36,804 | 31,251 |
Estimated fair value, total | 214,941 | 66,006 |
Unrealized losses, less than 12 months | 2,905 | 123 |
Unrealized losses, 12 months or more | 1,786 | 538 |
Unrealized losses, total | 4,691 | 661 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 79,513 | 34,183 |
Estimated fair value, 12 months or more | 26,308 | 11,317 |
Estimated fair value, total | 105,821 | 45,500 |
Unrealized losses, less than 12 months | 974 | 376 |
Unrealized losses, 12 months or more | 1,363 | 346 |
Unrealized losses, total | $ 2,337 | $ 722 |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 13,741 | |
Amortized Cost, Due after 1 year through 5 years | 121,838 | |
Amortized Cost, Due after 5 years through 10 years | 232,821 | |
Amortized Cost, Due after 10 years | 82,881 | |
Amortized Cost, Total | 451,281 | |
Fair Value, Due in 1 year or less | 13,782 | |
Fair Value, Due after 1 year through 5 years | 121,626 | |
Fair Value, Due after 5 years through 10 years | 231,333 | |
Fair Value, Due after 10 years | 79,699 | |
Fair Value, Total | $ 446,440 | $ 470,523 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 180,047 | $ 228,110 | $ 242,098 | $ 266,743 |
Investment securities, Carrying Amount | 446,440 | 470,523 | ||
Loans, net, Carrying Amount | 716,019 | 676,026 | ||
Accrued interest receivable, Carrying Amount | 6,323 | 7,413 | ||
Assets, Carrying Amount | 1,348,829 | 1,382,072 | ||
Cash and cash equivalents, Fair Value | 180,047 | 228,110 | ||
Investment securities, Fair Value | 446,440 | 470,523 | ||
Loans, net, Fair Value | 709,807 | 675,020 | ||
Accrued interest receivable, Fair Value | 6,323 | 7,413 | ||
Assets, Fair Value | 1,342,617 | 1,381,066 | ||
Deposits, Carrying Amount | 634,724 | 678,088 | ||
Accounts and drafts payable, Carrying Amount | 769,638 | 661,888 | ||
Accrued interest payable, Carrying Amount | 99 | 55 | ||
Liabilities, Carrying Amount | 1,404,461 | 1,340,031 | ||
Deposits, Fair Value | 632,162 | 678,346 | ||
Accounts and drafts payable, Fair Value | 769,638 | 661,888 | ||
Accrued interest payable, Fair Value | 99 | 55 | ||
Liabilities, Fair Value | $ 1,401,899 | $ 1,340,289 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
Oct. 23, 2018$ / sharesshares | |
Percentage of common stock dividend payable | 20.00% |
Dividend per share | $ / shares | $ 0.26 |
Date of dividend payable | Dec. 14, 2018 |
Additional share of common stock received on unit | shares | 500,000 |