Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 0000708781 | |
Document Period End Date | Jun. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-20827 | |
Entity Registrant Name | CASS INFORMATION SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1265338 | |
Entity Address, Address Line One | 12444 Powerscourt Drive | |
Entity Address, Address Line Two | Suite 550 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63131 | |
City Area Code | 314 | |
Local Phone Number | 506-5500 | |
Title of 12(b) Security | Common stock, par value $.50 | |
Trading Symbol | CASS | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,306,354 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 14,545 | $ 30,985 |
Interest-bearing deposits in other financial institutions | 424,263 | 393,810 |
Federal funds sold and other short-term investments | 182,773 | 245,733 |
Cash and cash equivalents | 621,581 | 670,528 |
Securities available-for-sale, at fair value | 507,047 | 357,726 |
Loans | 871,020 | 891,676 |
Less: Allowance for credit losses | 11,171 | 11,944 |
Loans, net | 859,849 | 879,732 |
Payments in excess of funding | 184,262 | 194,563 |
Premises and equipment, net | 17,741 | 18,057 |
Investment in bank-owned life insurance | 17,758 | 18,058 |
Goodwill | 14,262 | 14,262 |
Other intangible assets, net | 2,993 | 3,423 |
Other assets | 46,840 | 46,886 |
Total assets | 2,272,333 | 2,203,235 |
Deposits: | ||
Noninterest-bearing | 422,374 | 493,504 |
Interest-bearing | 593,569 | 557,352 |
Total deposits | 1,015,943 | 1,050,856 |
Accounts and drafts payable | 939,570 | 835,386 |
Other liabilities | 56,053 | 55,833 |
Total liabilities | 2,011,566 | 1,942,075 |
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 15,505,772 shares issued at June 30, 2021 and December 31, 2020 | 7,753 | 7,753 |
Additional paid-in capital | 203,098 | 204,875 |
Retained earnings | 105,398 | 99,062 |
Common shares in treasury, at cost (1,183,885 shares at June 30, 2021 and 1,113,103 shares at December 31, 2020) | (53,437) | (50,515) |
Accumulated other comprehensive loss | (2,045) | (15) |
Total shareholders' equity | 260,767 | 261,160 |
Total liabilities and shareholders' equity | $ 2,272,333 | $ 2,203,235 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value per share | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,505,772 | 15,505,772 |
Treasury stock, shares | 1,183,885 | 1,113,103 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 26,348 | $ 22,661 | $ 51,564 | $ 48,164 |
Bank service fees | 530 | 398 | 1,024 | 808 |
(Losses) gains on sales of securities | (3) | 45 | 1,069 | |
Other | 112 | 115 | 529 | 228 |
Total fee revenue and other income | 26,987 | 23,174 | 53,162 | 50,269 |
Interest Income: | ||||
Interest and fees on loans | 8,696 | 9,298 | 17,283 | 18,299 |
Interest and dividends on securities: | ||||
Taxable | 458 | 473 | 656 | 1,033 |
Exempt from federal income taxes | 1,832 | 1,785 | 3,571 | 3,604 |
Interest on federal funds sold and other short-term investments | 122 | 86 | 274 | 1,044 |
Total interest income | 11,108 | 11,642 | 21,784 | 23,980 |
Interest Expense: | ||||
Interest on deposits | 297 | 481 | 628 | 1,444 |
Interest on short-term borrowings | 2 | |||
Total interest expense | 297 | 481 | 628 | 1,446 |
Net interest income | 10,811 | 11,161 | 21,156 | 22,534 |
(Release of) provision for credit losses / loan losses | (610) | 400 | (1,210) | 725 |
Net interest income after provision for credit losses / loan losses | 11,421 | 10,761 | 22,366 | 21,809 |
Total net revenue | 38,408 | 33,935 | 75,528 | 72,078 |
Operating Expense: | ||||
Personnel | 22,880 | 20,891 | 45,406 | 43,318 |
Occupancy | 959 | 938 | 1,906 | 1,879 |
Equipment | 1,653 | 1,617 | 3,328 | 3,252 |
Amortization of intangible assets | 214 | 214 | 429 | 429 |
Other operating expense | 4,097 | 3,697 | 7,259 | 7,408 |
Total operating expense | 29,803 | 27,357 | 58,328 | 56,286 |
Income before income tax expense | 8,605 | 6,578 | 17,200 | 15,792 |
Income tax expense | 1,579 | 1,139 | 3,103 | 2,808 |
Net income | $ 7,026 | $ 5,439 | $ 14,097 | $ 12,984 |
Basic earnings per share | $ 0.49 | $ 0.38 | $ 0.99 | $ 0.90 |
Diluted earnings per share | $ 0.48 | $ 0.37 | $ 0.97 | $ 0.89 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Comprehensive Income: | ||||
Net income | $ 7,026 | $ 5,439 | $ 14,097 | $ 12,984 |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on securities available-for-sale | 1,566 | 6,407 | (2,648) | 6,985 |
Tax effect | (373) | (1,525) | 630 | (1,663) |
Reclassification adjustments for losses (gains) included in net income | 3 | (45) | (1,069) | |
Tax effect | (1) | 10 | 254 | |
Foreign currency translation adjustments | 152 | 16 | 23 | (128) |
Total comprehensive income | $ 8,373 | $ 10,337 | $ 12,067 | $ 17,363 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net income | $ 14,097 | $ 12,984 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,167 | 5,564 |
Gains on sales of securities | (45) | (1,069) |
Stock-based compensation expense | 1,519 | 1,478 |
(Release of) provision for credit losses / loan losses | (1,210) | 725 |
Decrease in income tax benefit | 22 | 1 |
(Decrease) increase in income tax liability | (88) | 592 |
(Decrease) increase in pension liability | (294) | 2,167 |
(Increase) decrease in accounts receivable | (1,131) | 1,472 |
Other operating activities, net | 2,722 | 8,741 |
Net cash provided by operating activities | 21,759 | 32,655 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 13,116 | 19,629 |
Proceeds from maturities of securities available-for-sale | 70,209 | 27,130 |
Purchase of securities available-for-sale | (238,831) | |
Net decrease (increase) in loans | 21,093 | (191,077) |
Decrease in payments in excess of funding | 10,301 | 43,948 |
Purchases of premises and equipment, net | (1,886) | (1,383) |
Net cash used in investing activities | (125,998) | (101,753) |
Cash Flows From Financing Activities: | ||
Net decrease in noninterest-bearing demand deposits | (71,130) | (7,524) |
Net increase in interest-bearing demand and savings deposits | 40,759 | 79,066 |
Net decrease in time deposits | (4,542) | (2,721) |
Net increase in accounts and drafts payable | 104,184 | 60,966 |
Net decrease in short-term borrowings | (18,000) | |
Cash dividends paid | (7,761) | (7,811) |
Purchase of common shares for treasury | (5,260) | (5,508) |
Other financing activities, net | (958) | (1,185) |
Net cash provided by financing activities | 55,292 | 97,283 |
Net (decrease) increase in cash and cash equivalents | (48,947) | 28,185 |
Cash and cash equivalents at beginning of period | 670,528 | 203,954 |
Cash and cash equivalents at end of period | 621,581 | 232,139 |
Supplemental information: | ||
Cash paid for interest | 608 | 1,429 |
Cash paid for income taxes | $ 3,164 | $ 2,219 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2019 | $ 7,753 | $ 205,397 | $ 90,341 | $ (45,381) | $ (13,920) | $ 244,190 |
Net income | 12,984 | 12,984 | ||||
Cash dividends | (7,811) | (7,811) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (2,374) | 1,291 | (1,083) | |||
Exercise of SARs | (243) | 141 | (102) | |||
Stock-based compensation expense | 1,478 | 1,478 | ||||
Purchase of common shares | (5,508) | (5,508) | ||||
Other comprehensive income | 4,379 | 4,379 | ||||
Balance at Jun. 30, 2020 | 7,753 | 204,258 | 95,514 | (49,457) | (9,541) | 248,527 |
Balance at Mar. 31, 2020 | 7,753 | 203,801 | 93,968 | (49,800) | (14,439) | 241,283 |
Net income | 5,439 | 5,439 | ||||
Cash dividends | (3,893) | (3,893) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (299) | 343 | 44 | |||
Stock-based compensation expense | 756 | 756 | ||||
Other comprehensive income | 4,898 | 4,898 | ||||
Balance at Jun. 30, 2020 | 7,753 | 204,258 | 95,514 | (49,457) | (9,541) | 248,527 |
Balance at Dec. 31, 2020 | 7,753 | 204,875 | 99,062 | (50,515) | (15) | 261,160 |
Net income | 14,097 | 14,097 | ||||
Cash dividends | (7,761) | (7,761) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (2,881) | 2,046 | (835) | |||
Exercise of SARs | (415) | 292 | (123) | |||
Stock-based compensation expense | 1,519 | 1,519 | ||||
Purchase of common shares | (5,260) | (5,260) | ||||
Other comprehensive income | (2,030) | (2,030) | ||||
Balance at Jun. 30, 2021 | 7,753 | 203,098 | 105,398 | (53,437) | (2,045) | 260,767 |
Balance at Mar. 31, 2021 | 7,753 | 202,828 | 102,247 | (49,949) | (3,392) | 259,487 |
Net income | 7,026 | 7,026 | ||||
Cash dividends | (3,875) | (3,875) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (455) | 450 | (5) | |||
Exercise of SARs | (101) | 94 | (7) | |||
Stock-based compensation expense | 826 | 826 | ||||
Purchase of common shares | (4,032) | (4,032) | ||||
Other comprehensive income | 1,347 | 1,347 | ||||
Balance at Jun. 30, 2021 | $ 7,753 | $ 203,098 | $ 105,398 | $ (53,437) | $ (2,045) | $ 260,767 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends, per share | $ 0.27 | $ 0.27 | $ 0.54 | $ 0.54 |
Stock issued pursuant to stock-based compensation | 9,720 | 9,292 | 79,094 | 66,625 |
Shares repurchased during period | 89,010 | 120,266 | 128,779 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. Such reclassifications have no effect on previously reported net income or shareholders’ equity. Results for quarterly reporting periods beginning after December 31, 2020 in the Company’s Form 10-Q will be presented under ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Risks and Uncertainties On March 11, 2020, the World Health Organization (“WHO”) declared the outbreak of COVID-19 as a global pandemic. The declaration of a global pandemic meant that almost all public commerce and related business activities was, to varying degrees, curtailed with the goal of decreasing the rate of new infections. In late fiscal 2020, vaccines for combatting COVID-19 were approved by health agencies and have been administered throughout the country. The timeline of full administration of the COVID-19 vaccines is uncertain and fluctuating, however has resulted in a significant amount of previous business and other restrictions being lifted. The ongoing impact of COVID-19, including the impact of restrictions imposed to combat its spread, could result in additional and prolonged business closures, work restrictions and activity restrictions. The Company is closely monitoring developments related to COVID-19 checking regularly for updated information and recommendations from the WHO and the CDC, from national, state, and local governments, and evaluating courses of action being taken by peers. At this time, the Company remains subject to heightened business, operational, market, credit and other risks related to the COVID-19 pandemic, including, but not limited to, those discussed below, which may have an adverse effect on business, financial condition and results of operations. Financial position and results of operations In response to COVID-19, the Federal Reserve has taken action to lower the Federal Funds rate, which has adversely affected interest income and therefore, the Company’s results of operations and financial condition. The Federal Reserve has continued its commitment to this approach, indicating that the target Federal Funds rate would remain at current levels until the economy is in a more stable employment and price-stability position. To the extent the business disruption continues for an extended period, additional cost control actions will be considered. Future asset impairment charges, increases in allowance for credit losses, or restructuring charges could be more likely and will be dependent on the severity and duration of this crisis and its effect on the Company’s borrowers. -8- Table of Contents For payment processing services, business closures cause a decrease in the number of transactions and dollars processed due to the decline in customers’ business activity. Other financial impact could occur though such potential impact is unknown at this time. Capital and liquidity The Company maintains access to multiple sources of liquidity. If an extended recession caused large numbers of the Bank’s customers to draw down deposits, the Company might become more reliant on more expensive sources of funding. Asset valuation The economic slowdown as a result of COVID-19 could cause a decline in the Company’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, necessitate a goodwill or intangible asset impairment test and result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. Processes, controls and business continuity In the past several years, Cass has invested in sophisticated technology initiatives that enable employees to operate remotely with full system(s) access along with unified and transparent voice and electronic communications capabilities, ensuring seamless service delivery. The Company cannot predict when or how it will fully lift the actions put in place as part of the Business Continuity Plan, including work from home requirements and travel restrictions. Cass does not believe the work from home protocol has materially adversely impacted internal controls, financial reporting systems, or operations. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 2 – Intangible Assets The Company accounts for intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Goodwill and Other Intangible Assets Details of the Company’s intangible assets are as follows: June 30, 2021 December 31, 2020 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (4,122) $ 4,778 $ (3,902) Patents 72 (26) 72 (24) Software 2,844 (918) 2,844 (731) Trade Name 190 (17) 190 (13) Other 500 (308) 500 (291) Unamortized intangible assets: Goodwill 14,262 ─ 14,262 ─ Total intangible assets $ 22,646 $ (5,391) $ 22,646 $ (4,961) -9- Table of Contents The customer lists are amortized over 7 and 10 years; the patents over 18 years; software over 3 years and 7 years, the trade name over 20 years and other intangible assets over 15 years. Amortization of intangible assets amounted to $429,000 for both for the six-month periods ended June 30, 2021 and 2020, respectively. Estimated amortization of intangibles is $859,000 in 2021, $540,000 in both 2022 and 2023, $498,000 in 2024, and $490,000 in 2025. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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. 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. The calculations of basic and diluted earnings per share are as follows: (In thousands except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic Net income $ 7,026 $ 5,439 $ 14,097 $ 12,984 Weighted-average common shares outstanding 14,267,290 14,349,040 14,286,362 14,385,927 Basic earnings per share $ .49 $ .38 $ .99 $ .90 Diluted Net income $ 7,026 $ 5,439 $ 14,097 $ 12,984 Weighted-average common shares outstanding 14,267,290 14,349,040 14,286,362 14,385,927 Effect of dilutive restricted stock and stock appreciation rights 243,192 196,159 239,906 201,930 Weighted-average common shares outstanding assuming dilution 14,510,482 14,545,199 14,526,268 14,587,857 Diluted earnings per share $ .48 $ .37 $ .97 $ .89 |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Jun. 30, 2021 | |
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 in October 2020, the program provides that the Company may repurchase up to an aggregate of 500,000 shares of common stock and has no expiration date. As of June 30, 2021, 345,612 shares remained available for repurchase under the program. The Company repurchased 89,010 and zero shares during the three-month periods ended June 30, 2021 and 2020 and 120,266 and 128,779 shares for the six-month periods ended June 30, 2021 and 2020, respectively. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 5 – Industry Segment Information The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries, including on-line generosity services, as well as supporting the banking needs of the Information Services segment. The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management evaluates segment performance based on tax-equivalized (as defined in the footnote to the chart on the following table) pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value. -10- Table of Contents Substantially all revenue originates from, and all long-lived assets are located within the United States, and no revenue from any customer of any segment exceeds 10% of the Company’s consolidated revenue. Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Segment interest income is a function of the relative share of average funding sources generated by each segment multiplied by the following rates: • Information Services – one or more fixed rates depending upon the specific characteristics of the funding source, and • Banking Services – a variable rate that is based upon the overall performance of the Company’s earning assets. Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other. -11- Table of Contents Summarized information about the Company’s operations in each industry segment is as follows: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended June 30, 2021: Fee income $ 26,098 $ 612 $ 277 $ 26,987 Interest income* 5,884 6,563 (853) 11,594 Interest expense — 297 — 297 Intersegment income (expense) — 688 (688) — Tax-equivalized pre-tax income* 6,404 3,432 (743) 9,093 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 532 2,461 — 2,993 Total assets 1,062,536 1,215,799 (6,002) 2,272,333 Average funding sources 905,983 860,956 — 1,766,939 Three Months Ended June 30, 2020: Fee income $ 22,460 $ 640 $ 74 $ 23,174 Interest income* 4,955 6,601 560 12,116 Interest expense — 481 — 481 Intersegment income (expense) — 556 (556) — Tax-equivalized pre-tax income* 3,437 2,981 634 7,052 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 939 2,913 — 3,852 Total assets 822,684 1,109,676 (103,376) 1,828,984 Average funding sources 680,061 746,619 — 1,426,680 Six Months Ended June 30, 2021: Fee income $ 51,075 $ 1,250 $ 837 $ 53,162 Interest income* 11,393 12,314 (975) 22,732 Interest expense ─ 628 — 628 Intersegment income (expense) — 1,311 (1,311) — Tax-equivalized pre-tax income* 12,417 6,194 461 18,150 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 532 2,461 — 2,993 Total assets 1,062,536 1,215,799 (6,002) 2,272,333 Average funding sources 872,106 855,099 — 1,727,205 Six Months Ended June 30, 2020: Fee income $ 47,900 $ 1,255 $ 1,114 $ 50,269 Interest income* 9,662 13,885 1,391 24,938 Interest expense — 1,446 — 1,446 Intersegment income (expense) — 1,081 (1,081) — Tax-equivalized pre-tax income* 8,560 5,684 2,506 16,750 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 939 2,913 — 3,852 Total assets 822,684 1,109,676 (103,376) 1,828,984 Average funding sources 678,945 678,877 — 1,357,822 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2021 and 2020. The tax-equivalent adjustment was approximately $487,000 and $474,000 f for the Second Quarter of 2021 and 2020, respectively, and $949,000 and $958,000 for the First Half of 2021 and 2020, respectively. |
Loans by Type
Loans by Type | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows: (In thousands) June 30, 2021 December 31, 2020 Commercial and industrial $ 330,714 $ 298,984 Real estate: Commercial: Mortgage 103,878 100,419 Construction 24,500 25,090 Faith-based: Mortgage 331,235 333,661 Construction 24,051 23,818 Paycheck Protection Program (“PPP”) 56,642 109,704 Total loans $ 871,020 $ 891,676 In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank processed nearly 460 applications for PPP loans of approximately $210,000,000 cumulatively during 2021 and 2020 to provide much-needed cash to small business and self-employed taxpayers during the COVID-19 crisis. The loans were primarily made to existing bank customers and are 100% guaranteed by the Small Business Administration (“SBA”) with no allowance for credit loss allocation. The Company has unaccreted PPP loan fees of $1,312,000 at June 30, 2021. The following table presents the aging of loans past due by category at June 30, 2021 and December 31, 2020: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans June 30, 2021 Commercial and industrial $ 330,714 $ — $ — $ — $ — $ 330,714 Real estate Commercial: Mortgage 103,878 — — — — 103,878 Construction 24,500 — — — — 24,500 Faith-based: Mortgage 331,235 — — — — 331,235 Construction 24,051 — — — — 24,051 PPP 56,642 — — — — 56,642 Total $ 871,020 $ — $ — $ — $ — $ 871,020 December 31, 2020 Commercial and industrial $ 298,984 $ — $ — $ — $ — $ 298,984 Real estate Commercial: Mortgage 100,419 — — — — 100,419 Construction 25,090 — — — — 25,090 Faith-based: Mortgage 333,661 — — — — 333,661 Construction 23,818 — — — — 23,818 PPP 109,704 — — — — 109,704 Total $ 891,676 $ — $ — $ — $ — $ 891,676 -13- Table of Contents The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2021 and December 31, 2020: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans June 30, 2021 Commercial and industrial $ 319,477 $ 11,237 $ — $ 330,714 Real estate Commercial: Mortgage 103,637 241 — 103,878 Construction 24,500 — — 24,500 Faith-based: Mortgage 328,236 2,999 — 331,235 Construction 24,051 — — 24,051 PPP 56,642 — — 56,642 Total $ 856,543 $ 14,477 $ — $ 871,020 December 31, 2020 Commercial and industrial $ 284,882 $ 14,102 $ — $ 298,984 Real estate Commercial: Mortgage 99,044 1,375 — 100,419 Construction 25,090 — — 25,090 Faith-based: Mortgage 330,554 3,107 — 333,661 Construction 23,818 — — 23,818 PPP 109,704 — — 109,704 Total $ 873,092 $ 18,584 $ — $ 891,676 1 2 The company had no impaired loans as of June 30, 2021. The Company had one loan considered impaired in the amount of $2,500,000 at December 31, 2020 that was individually evaluated for impairment, resulting in a specific allowance for credit loss of $500,000 at December 31, 2020. Due to improvement in borrower conditions, this loan was no longer considered impaired at June 30, 2021. There were no foreclosed loans recorded as other real estate owned (included in other assets) as of June 30, 2021 or December 31, 2020. There were no loans considered troubled debt restructurings as of June 30, 2021. There were two loans that were considered troubled debt restructurings at December 31, 2020 and these loans were removed from troubled debt restructuring status during the first quarter of 2021. The recorded investment by category for loans considered as troubled debt restructuring during the year ended December 31, 2020 is as follows: (In thousands) Number of Loans Pre-Modification Outstanding Balance Post-Modification Outstanding Balance Commercial and industrial 1 $ 8,773 $ 8,773 Faith-based real estate 1 1,029 1,029 Total 2 $ 9,802 $ 9,802 During the year ended December 31, 2020, two loans were restructured to change the amortization schedule to reduce payments from the borrowers while the contractual interest rate remained unchanged. These loans did not have a specific allowance for credit loss allocated to them at December 31, 2020. There were no loans restructured that subsequently defaulted during the year ended December 31, 2020. -14- Table of Contents A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended June 30, 2021 and December 31, 2020 is as follows: (In thousands) C&I CRE Faith-based CRE Construction Total Allowance for credit losses on loans: Balance at December 31, 2020 $ 4,635 $ 1,175 $ 5,717 $ 417 $ 11,944 Charge Offs — — — — — (Release of) provision for credit losses (509) (54) (199) (28) ($790) Recoveries 2 — 15 — 17 Balance at June 30, 2021 $ 4,128 $ 1,121 $ 5,533 $ 389 $ 11,171 The release of provision for credit losses during the six months ended June 30, 2021 is primarily due to improved economic conditions and the removal of specific allowance for credit loss allocations on impaired loans. (In thousands) C&I CRE Faith-based CRE Construction Total Allowance for credit losses on loans: Balance at December 31, 2019 $ 4,874 $ 1,528 $ 3,842 $ 312 $ 10,556 Cumulative effect of accounting change (ASU 2016-13) (526) (401) 1,636 14 723 Balance at January 1, 2020 4,348 1,127 5,478 326 11,279 Provision for credit losses 268 48 238 91 645 Recoveries 19 — 1 — 20 Balance at December 31, 2020 $ 4,635 $ 1,175 $ 5,717 $ 417 $ 11,944 The provision for credit losses during the year ended December 31, 2020 was due to the Company’s forecast of macroeconomic factors, which worsened during 2020, primarily due to the COVID-19 pandemic. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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. A release of credit losses of $420,000 was recorded during the six months ended June 30, 2021 due to lower line of credit usage. An allowance for unfunded commitments of $147,000 and $567,000 had been recorded at June 30, 2021 and December 31, 2020, respectively. 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 June 30, 2021, the balance of unused loan commitments, standby and commercial letters of credit were $194,669,000, $11,932,000, and $521,000, 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. -15- Table of Contents The following table summarizes contractual cash obligations of the Company related to time deposits at June 30, 2021: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits $ 51,442 $ 36,441 $ 14,938 $ 63 $ — 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 | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [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, SARs, restricted stock, restricted stock units and performance awards. The Company may issue shares out of treasury stock for these awards. During the six months ended June 30, 2021, 49,406 restricted shares, 29,688 performance-based restricted shares, and no SARs were granted under the Omnibus Plan. Stock-based compensation expense for the three months ended June 30, 2021 and 2020 was $826,000 and $756,000, respectively, and $1,519,000 and $1,478,000 for the six months ended June 30, 2021 and 2020, respectively. Restricted Stock Restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period. 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. As of June 30, 2021, the total unrecognized compensation expense related to non-vested restricted shares was $2,638,000, and the related weighted-average period over which it is expected to be recognized is approximately .85 years. Following is a summary of the activity of the restricted stock: Six Months Ended June 30, 2021 Shares Fair Value Balance at December 31, 2020 136,167 $ 46.78 Granted 49,406 41.54 Vested (22,750) 47.97 Balance at June 30, 2021 162,823 $ 44.99 Performance-Based Restricted Stock The Company has granted three-year performance based restricted stock (“PBRS”) awards which are contingent upon the Company’s achievement of pre-established financial goals over a three-year cliff vest period. The number of shares issued ranges from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. Following is a summary of the activity of the PBRS, based on target value: Six Months Ended June 30, 2021 Shares Fair Value Balance at December 31, 2020 98,410 $ 50.64 Granted 52,240 40.74 Vested (31,451) 48.63 Balance at June 30, 2021 119,199 $ 46.79 -16- Table of Contents The PBRS that vested during the six months ended June 30, 2021 achieved financial goals of 94.4%, resulting in the issuance of 29,688 shares of common stock. The outstanding PBRS at June 30, 2021 will vest at scheduled vesting dates and the actual number of shares of common stock issued will range from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the respective three-year performance period. SARs There were no SARs granted and no expense recognized during the six months ended June 30, 2021. Following is a summary of the activity of the Company’s SARs program for the six-month period ended June 30, 2021: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Balance at December 31, 2020 144,999 $ 32.99 1.95 $ 1,095 Exercised (20,560) 24.12 — — Forfeited (2,088) 31.92 ─ ─ Exercisable at June 30, 2021 122,351 $ 34.50 1.67 $ 1,228 There were no non-vested SARs at June 30, 2021. |
Defined Pension Plans
Defined Pension Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Defined Pension Plans | Note 9 – Defined Pension Plans The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Plan’s benefits were frozen for all remaining participants as of February 28, 2021. 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: (In thousands) Estimated 2021 Actual 2020 Service cost – benefits earned during the year $ 963 $ 4,329 Interest cost on projected benefit obligations 3,069 3,908 Expected return on plan assets (6,299) (6,049) Net amortization 360 1,946 Net periodic pension (benefit) cost $ (1,907) $ 4,134 The Company recorded a net periodic benefit of $691,000 and $418,000 for the three and six month periods ended June 30, 2021, respectively as compared to net periodic pension cost of $1,027,000 and $2,056,000 for the three and six month periods ended June 30, 2020, respectively. Pension costs decreased in 2021 due to the Plan being frozen as of February 28, 2021. The Company has not made a contribution to the plan during the six-month period ended June 30, 2021 and is evaluating the amount of additional contributions, if any, in the remainder of 2021. 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 2020 and an estimate for 2021: (In thousands) Estimated 2021 Actual 2020 Service cost – benefits earned during the year $ 147 $ 121 Interest cost on projected benefit obligation 291 347 Net amortization 203 112 Net periodic pension cost $ 641 $ 580 -17- Table of Contents Supplemental executive retirement plan costs recorded to expense were $161,000 and $145,000 for the three-month periods ended June 30, 2021 and 2020, respectively. Supplemental executive retirement plan costs recorded to expense were $321,000 and $290,000 for the six-month periods ended June 30, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes The effective tax rate was 18.4% and 17.3% for the three-month periods ended June 30, 2021 and 2020, respectively, and 18.0% and 17.8% for the six-month periods ended June 30, 2021 and 2020, respectively. The effective tax rate for all periods differs from the statutory rate of 21% primarily due to the tax-exempt interest received from municipal bonds. |
Investment in Securities
Investment in Securities | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 335,739 $ 16,004 $ 48 $ 351,695 U.S. government agencies 90,756 601 424 90,933 Corporate Bonds 63,567 852 ─ 64,419 Total $ 490,062 $ 17,457 $ 472 $ 507,047 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 287,059 $ 18,915 $ ─ $ 305,974 U.S. government agencies 50,988 764 ─ 51,752 Total $ 338,047 $ 19,679 $ ─ $ 357,726 The fair values of securities with unrealized losses are as follows: June 30, 2021 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and political subdivisions $ 8,184 $ 48 $ ─ $ ─ $ 8,184 $ 48 U.S. government agencies 59,998 424 ─ ─ 59,998 424 Total $ 68,182 $ 472 $ ─ $ ─ $ 68,182 $ 472 There were 15 securities, or 5%, (0 greater than 12 months) in an unrealized loss position as of June 30, 2021. There were no securities in an unrealized loss position as of December 31, 2020. 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. June 30, 2021 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 58,144 $ 58,412 Due after 1 year through 5 years 95,443 100,135 Due after 5 years through 10 years 216,180 227,682 Due after 10 years 120,295 120,818 Total $ 490,062 $ 507,047 -18- Table of Contents Proceeds from sales of investment securities classified as available-for-sale were $10,125,000 and $0 for the three months ended June 30, 2021 and 2020, respectively, and were $13,116,000 and $19,629,000 for the six months ended June 30, 2021 and 2020, respectively. Gross realized losses were $3,000 and $0 for the three months ended June 30, 2021 and 2020, respectively. Gross realized gains were $45,000 and $1,069,000 for the six months ended June 30, 2021 and 2020, respectively. There were no securities pledged to secure public deposits and for other purposes at June 30, 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 621,581 $ 621,581 $ 670,528 $ 670,528 Investment securities 507,047 507,047 357,726 357,726 Loans, net 859,849 861,911 879,732 883,461 Accrued interest receivable 6,802 6,802 6,850 6,850 Total $ 1,995,279 $ 1,997,341 $ 1,914,836 $ 1,918,565 Balance sheet liabilities: Deposits $ 1,015,943 $ 1,015,943 $ 1,050,856 $ 1,050,856 Accounts and drafts payable 939,570 939,570 835,386 835,386 Accrued interest payable 58 58 38 38 Total $ 1,955,571 $ 1,955,571 $ 1,886,280 $ 1,886,280 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 Investment in Securities Loans Accrued Interest Receivable Deposits Accounts and Drafts Payable Accrued Interest No financial instruments are measured using Level 3 inputs for the three months ended June 30, 2021 and 2020. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 13 – Revenue from Contracts with Customers Revenue is recognized as the obligation to the customer is satisfied. The following is detail of the Company’s revenue from contracts with clients. Invoice processing fees -19- Table of Contents Invoice payment fees Bank service fees For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 19,753 $ 17,923 $ 38,817 $ 37,047 Invoice payment fees 6,595 4,738 12,747 11,117 Information services payment and processing revenue 26,348 22,661 51,564 48,164 Bank service fees 530 398 1,024 808 Fee revenue (in-scope of FASB ASC 606) 26,878 23,059 52,588 48,972 Other income (out-of-scope of FASB ASC 606) 109 115 574 1,297 Total fee revenue and other income 26,987 23,174 53,162 50,269 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 14 – Leases The Company leases certain premises under operating leases. As of June 30, 2021, the Company had lease liabilities of $5,429,000 and right-of-use assets of $4,912,000. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Presented within occupancy expense on the Consolidated Statements of Income for the three months ended June 30, 2021, operating lease cost was $415,000, short-term lease cost was $61,000, and there was no variable lease cost. For the six months ended June 30, 2021, operating lease cost was $835,000, short-term lease cost was $91,000, and there was no variable lease cost. At June 30, 2021, the weighted average remaining lease term for the operating leases was 6.1 years and the weighted average discount rate used in the measurement of operating lease liabilities was 5.5%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. There has been no significant changes in the Company’s expected future minimum lease payments since December 31, 2020. See the Company’s 2020 Annual Report on Form 10-K for information regarding these commitments. A maturity analysis of operating lease liabilities and undiscounted cash flows as of June 30, 2021 is as follows: (In thousands) June 30, 2021 Lease payments due Less than 1 year $ 1,695 1-2 years 1,351 2-3 years 532 3-4 years 509 4-5 years 519 Over 5 years 1,760 Total undiscounted cash flows 6,366 Discount on cash flows 937 Total lease liability $ 5,429 -20- Table of Contents There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the six months ended June 30, 2021. At June 30, 2021, the Company had one lease that had not yet commenced, creating approximately $200,000 of additional lease liabilities and right-of-use assets for the Company. This lease will commence in July 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events In accordance with FASB ASC 855, Subsequent Events |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: June 30, 2021 December 31, 2020 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (4,122) $ 4,778 $ (3,902) Patents 72 (26) 72 (24) Software 2,844 (918) 2,844 (731) Trade Name 190 (17) 190 (13) Other 500 (308) 500 (291) Unamortized intangible assets: Goodwill 14,262 ─ 14,262 ─ Total intangible assets $ 22,646 $ (5,391) $ 22,646 $ (4,961) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of 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. 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. The calculations of basic and diluted earnings per share are as follows: (In thousands except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic Net income $ 7,026 $ 5,439 $ 14,097 $ 12,984 Weighted-average common shares outstanding 14,267,290 14,349,040 14,286,362 14,385,927 Basic earnings per share $ .49 $ .38 $ .99 $ .90 Diluted Net income $ 7,026 $ 5,439 $ 14,097 $ 12,984 Weighted-average common shares outstanding 14,267,290 14,349,040 14,286,362 14,385,927 Effect of dilutive restricted stock and stock appreciation rights 243,192 196,159 239,906 201,930 Weighted-average common shares outstanding assuming dilution 14,510,482 14,545,199 14,526,268 14,587,857 Diluted earnings per share $ .48 $ .37 $ .97 $ .89 |
Industry Segment Information (T
Industry Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended June 30, 2021: Fee income $ 26,098 $ 612 $ 277 $ 26,987 Interest income* 5,884 6,563 (853) 11,594 Interest expense — 297 — 297 Intersegment income (expense) — 688 (688) — Tax-equivalized pre-tax income* 6,404 3,432 (743) 9,093 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 532 2,461 — 2,993 Total assets 1,062,536 1,215,799 (6,002) 2,272,333 Average funding sources 905,983 860,956 — 1,766,939 Three Months Ended June 30, 2020: Fee income $ 22,460 $ 640 $ 74 $ 23,174 Interest income* 4,955 6,601 560 12,116 Interest expense — 481 — 481 Intersegment income (expense) — 556 (556) — Tax-equivalized pre-tax income* 3,437 2,981 634 7,052 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 939 2,913 — 3,852 Total assets 822,684 1,109,676 (103,376) 1,828,984 Average funding sources 680,061 746,619 — 1,426,680 Six Months Ended June 30, 2021: Fee income $ 51,075 $ 1,250 $ 837 $ 53,162 Interest income* 11,393 12,314 (975) 22,732 Interest expense ─ 628 — 628 Intersegment income (expense) — 1,311 (1,311) — Tax-equivalized pre-tax income* 12,417 6,194 461 18,150 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 532 2,461 — 2,993 Total assets 1,062,536 1,215,799 (6,002) 2,272,333 Average funding sources 872,106 855,099 — 1,727,205 Six Months Ended June 30, 2020: Fee income $ 47,900 $ 1,255 $ 1,114 $ 50,269 Interest income* 9,662 13,885 1,391 24,938 Interest expense — 1,446 — 1,446 Intersegment income (expense) — 1,081 (1,081) — Tax-equivalized pre-tax income* 8,560 5,684 2,506 16,750 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 939 2,913 — 3,852 Total assets 822,684 1,109,676 (103,376) 1,828,984 Average funding sources 678,945 678,877 — 1,357,822 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2021 and 2020. The tax-equivalent adjustment was approximately $487,000 and $474,000 f for the Second Quarter of 2021 and 2020, respectively, and $949,000 and $958,000 for the First Half of 2021 and 2020, respectively. |
Loans by Type (Tables)
Loans by Type (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: (In thousands) June 30, 2021 December 31, 2020 Commercial and industrial $ 330,714 $ 298,984 Real estate: Commercial: Mortgage 103,878 100,419 Construction 24,500 25,090 Faith-based: Mortgage 331,235 333,661 Construction 24,051 23,818 Paycheck Protection Program (“PPP”) 56,642 109,704 Total loans $ 871,020 $ 891,676 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans past due by category at June 30, 2021 and December 31, 2020: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans June 30, 2021 Commercial and industrial $ 330,714 $ — $ — $ — $ — $ 330,714 Real estate Commercial: Mortgage 103,878 — — — — 103,878 Construction 24,500 — — — — 24,500 Faith-based: Mortgage 331,235 — — — — 331,235 Construction 24,051 — — — — 24,051 PPP 56,642 — — — — 56,642 Total $ 871,020 $ — $ — $ — $ — $ 871,020 December 31, 2020 Commercial and industrial $ 298,984 $ — $ — $ — $ — $ 298,984 Real estate Commercial: Mortgage 100,419 — — — — 100,419 Construction 25,090 — — — — 25,090 Faith-based: Mortgage 333,661 — — — — 333,661 Construction 23,818 — — — — 23,818 PPP 109,704 — — — — 109,704 Total $ 891,676 $ — $ — $ — $ — $ 891,676 |
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 June 30, 2021 and December 31, 2020: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans June 30, 2021 Commercial and industrial $ 319,477 $ 11,237 $ — $ 330,714 Real estate Commercial: Mortgage 103,637 241 — 103,878 Construction 24,500 — — 24,500 Faith-based: Mortgage 328,236 2,999 — 331,235 Construction 24,051 — — 24,051 PPP 56,642 — — 56,642 Total $ 856,543 $ 14,477 $ — $ 871,020 December 31, 2020 Commercial and industrial $ 284,882 $ 14,102 $ — $ 298,984 Real estate Commercial: Mortgage 99,044 1,375 — 100,419 Construction 25,090 — — 25,090 Faith-based: Mortgage 330,554 3,107 — 333,661 Construction 23,818 — — 23,818 PPP 109,704 — — 109,704 Total $ 873,092 $ 18,584 $ — $ 891,676 1 2 |
Summary of Category of Loans Considered as Troubled Debt Restructuring | The recorded investment by category for loans considered as troubled debt restructuring during the year ended December 31, 2020 is as follows: (In thousands) Number of Loans Pre-Modification Outstanding Balance Post-Modification Outstanding Balance Commercial and industrial 1 $ 8,773 $ 8,773 Faith-based real estate 1 1,029 1,029 Total 2 $ 9,802 $ 9,802 |
Summary of ACL by Category | A summary of the activity in allowance for credit losses (“ACL”) by category for the period ended June 30, 2021 and December 31, 2020 is as follows: (In thousands) C&I CRE Faith-based CRE Construction Total Allowance for credit losses on loans: Balance at December 31, 2020 $ 4,635 $ 1,175 $ 5,717 $ 417 $ 11,944 Charge Offs — — — — — (Release of) provision for credit losses (509) (54) (199) (28) ($790) Recoveries 2 — 15 — 17 Balance at June 30, 2021 $ 4,128 $ 1,121 $ 5,533 $ 389 $ 11,171 The release of provision for credit losses during the six months ended June 30, 2021 is primarily due to improved economic conditions and the removal of specific allowance for credit loss allocations on impaired loans. (In thousands) C&I CRE Faith-based CRE Construction Total Allowance for credit losses on loans: Balance at December 31, 2019 $ 4,874 $ 1,528 $ 3,842 $ 312 $ 10,556 Cumulative effect of accounting change (ASU 2016-13) (526) (401) 1,636 14 723 Balance at January 1, 2020 4,348 1,127 5,478 326 11,279 Provision for credit losses 268 48 238 91 645 Recoveries 19 — 1 — 20 Balance at December 31, 2020 $ 4,635 $ 1,175 $ 5,717 $ 417 $ 11,944 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 time deposits at June 30, 2021: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits $ 51,442 $ 36,441 $ 14,938 $ 63 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | Following is a summary of the activity of the restricted stock: Six Months Ended June 30, 2021 Shares Fair Value Balance at December 31, 2020 136,167 $ 46.78 Granted 49,406 41.54 Vested (22,750) 47.97 Balance at June 30, 2021 162,823 $ 44.99 |
Summary of PBRS Activity | Following is a summary of the activity of the PBRS, based on target value: Six Months Ended June 30, 2021 Shares Fair Value Balance at December 31, 2020 98,410 $ 50.64 Granted 52,240 40.74 Vested (31,451) 48.63 Balance at June 30, 2021 119,199 $ 46.79 |
Summary of SARs Activity | There were no SARs granted and no expense recognized during the six months ended June 30, 2021. Following is a summary of the activity of the Company’s SARs program for the six-month period ended June 30, 2021: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Balance at December 31, 2020 144,999 $ 32.99 1.95 $ 1,095 Exercised (20,560) 24.12 — — Forfeited (2,088) 31.92 ─ ─ Exercisable at June 30, 2021 122,351 $ 34.50 1.67 $ 1,228 |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Plan’s benefits were frozen for all remaining participants as of February 28, 2021. 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: (In thousands) Estimated 2021 Actual 2020 Service cost – benefits earned during the year $ 963 $ 4,329 Interest cost on projected benefit obligations 3,069 3,908 Expected return on plan assets (6,299) (6,049) Net amortization 360 1,946 Net periodic pension (benefit) cost $ (1,907) $ 4,134 |
Schedule of Unfunded Supplemental Executive Retirement Plan | 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 2020 and an estimate for 2021: (In thousands) Estimated 2021 Actual 2020 Service cost – benefits earned during the year $ 147 $ 121 Interest cost on projected benefit obligation 291 347 Net amortization 203 112 Net periodic pension cost $ 641 $ 580 |
Investment in Securities (Table
Investment in Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment 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: June 30, 2021 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 335,739 $ 16,004 $ 48 $ 351,695 U.S. government agencies 90,756 601 424 90,933 Corporate Bonds 63,567 852 ─ 64,419 Total $ 490,062 $ 17,457 $ 472 $ 507,047 December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 287,059 $ 18,915 $ ─ $ 305,974 U.S. government agencies 50,988 764 ─ 51,752 Total $ 338,047 $ 19,679 $ ─ $ 357,726 |
Schedule of the Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses are as follows: June 30, 2021 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and political subdivisions $ 8,184 $ 48 $ ─ $ ─ $ 8,184 $ 48 U.S. government agencies 59,998 424 ─ ─ 59,998 424 Total $ 68,182 $ 472 $ ─ $ ─ $ 68,182 $ 472 |
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. June 30, 2021 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 58,144 $ 58,412 Due after 1 year through 5 years 95,443 100,135 Due after 5 years through 10 years 216,180 227,682 Due after 10 years 120,295 120,818 Total $ 490,062 $ 507,047 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 621,581 $ 621,581 $ 670,528 $ 670,528 Investment securities 507,047 507,047 357,726 357,726 Loans, net 859,849 861,911 879,732 883,461 Accrued interest receivable 6,802 6,802 6,850 6,850 Total $ 1,995,279 $ 1,997,341 $ 1,914,836 $ 1,918,565 Balance sheet liabilities: Deposits $ 1,015,943 $ 1,015,943 $ 1,050,856 $ 1,050,856 Accounts and drafts payable 939,570 939,570 835,386 835,386 Accrued interest payable 58 58 38 38 Total $ 1,955,571 $ 1,955,571 $ 1,886,280 $ 1,886,280 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 19,753 $ 17,923 $ 38,817 $ 37,047 Invoice payment fees 6,595 4,738 12,747 11,117 Information services payment and processing revenue 26,348 22,661 51,564 48,164 Bank service fees 530 398 1,024 808 Fee revenue (in-scope of FASB ASC 606) 26,878 23,059 52,588 48,972 Other income (out-of-scope of FASB ASC 606) 109 115 574 1,297 Total fee revenue and other income 26,987 23,174 53,162 50,269 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and undiscounted cash flows as of June 30, 2021 is as follows: (In thousands) June 30, 2021 Lease payments due Less than 1 year $ 1,695 1-2 years 1,351 2-3 years 532 3-4 years 509 4-5 years 519 Over 5 years 1,760 Total undiscounted cash flows 6,366 Discount on cash flows 937 Total lease liability $ 5,429 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 214 | $ 214 | $ 429 | $ 429 |
2021 | 859 | 859 | ||
2022 | 540 | 540 | ||
2023 | 540 | 540 | ||
2024 | 498 | 498 | ||
2025 | $ 490 | $ 490 | ||
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] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 7 years | |||
Trade Name [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 20 years | |||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 15 years |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Company's Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Unamortized intangible assets: | ||
Goodwill, Gross Carrying Amount | $ 14,262 | $ 14,262 |
Goodwill, Accumulated Amortization | ||
Total intangible assets | 22,646 | 22,646 |
Accumulated Amortization | (5,391) | (4,961) |
Customer Lists [Member] | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 4,778 | 4,778 |
Accumulated Amortization | (4,122) | (3,902) |
Patents [Member] | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 72 | 72 |
Accumulated Amortization | (26) | (24) |
Software [Member] | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 2,844 | 2,844 |
Accumulated Amortization | (918) | (731) |
Trade Name [Member] | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 190 | 190 |
Accumulated Amortization | (17) | (13) |
Other [Member] | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 500 | 500 |
Accumulated Amortization | $ (308) | $ (291) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic: | ||||
Net income | $ 7,026 | $ 5,439 | $ 14,097 | $ 12,984 |
Weighted-average common shares outstanding | 14,267,290 | 14,349,040 | 14,286,362 | 14,385,927 |
Basic earnings per share | $ 0.49 | $ 0.38 | $ 0.99 | $ 0.90 |
Diluted: | ||||
Net Income | $ 7,026 | $ 5,439 | $ 14,097 | $ 12,984 |
Weighted-average common shares outstanding | 14,267,290 | 14,349,040 | 14,286,362 | 14,385,927 |
Effect of dilutive restricted stock and stock appreciation rights | 243,192 | 196,159 | 239,906 | 201,930 |
Weighted-average common shares outstanding assuming dilution | 14,510,482 | 14,545,199 | 14,526,268 | 14,587,857 |
Diluted earnings per share | $ 0.48 | $ 0.37 | $ 0.97 | $ 0.89 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Oct. 30, 2020 | |
Equity [Abstract] | |||||
Number of shares authorized to be repurchased | 500,000 | 500,000 | 500,000 | ||
Shares repurchased | 89,010 | 0 | 120,266 | 128,779 | |
Remaining number of shares available for repurchase | 345,612 | 345,612 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Fee revenue and other income: | ||||||
Fee income | $ 26,987 | $ 23,174 | $ 53,162 | $ 50,269 | ||
Interest income | [1] | 11,594 | 12,116 | 22,732 | 24,938 | |
Interest expense | 297 | 481 | 628 | 1,446 | ||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 9,093 | 7,052 | 18,150 | 16,750 | |
Goodwill | 14,262 | 14,262 | 14,262 | 14,262 | $ 14,262 | |
Other intangible assets, net | 2,993 | 3,852 | 2,993 | 3,852 | ||
Total assets | 2,272,333 | 1,828,984 | 2,272,333 | 1,828,984 | $ 2,203,235 | |
Average funding sources | 1,766,939 | 1,426,680 | $ 1,727,205 | $ 1,357,822 | ||
Tax-equivalent basis tax rate | 21.00% | 21.00% | ||||
Tax-equivalent adjustment | 487 | 474 | $ 949 | $ 958 | ||
Information Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 26,098 | 22,460 | 51,075 | 47,900 | ||
Interest income | [1] | 5,884 | 4,955 | 11,393 | 9,662 | |
Interest expense | ||||||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 6,404 | 3,437 | 12,417 | 8,560 | |
Goodwill | 12,433 | 12,433 | 12,433 | 12,433 | ||
Other intangible assets, net | 532 | 939 | 532 | 939 | ||
Total assets | 1,062,536 | 822,684 | 1,062,536 | 822,684 | ||
Average funding sources | 905,983 | 680,061 | 872,106 | 678,945 | ||
Banking Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 612 | 640 | 1,250 | 1,255 | ||
Interest income | [1] | 6,563 | 6,601 | 12,314 | 13,885 | |
Interest expense | 297 | 481 | 628 | 1,446 | ||
Intersegment income (expense) | 688 | 556 | 1,311 | 1,081 | ||
Tax-equivalized pre-tax income | [1] | 3,432 | 2,981 | 6,194 | 5,684 | |
Goodwill | 1,829 | 1,829 | 1,829 | 1,829 | ||
Other intangible assets, net | 2,461 | 2,913 | 2,461 | 2,913 | ||
Total assets | 1,215,799 | 1,109,676 | 1,215,799 | 1,109,676 | ||
Average funding sources | 860,956 | 746,619 | 855,099 | 678,877 | ||
Corporate, Eliminations and Other [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 277 | 74 | 837 | 1,114 | ||
Interest income | [1] | (853) | 560 | (975) | 1,391 | |
Interest expense | ||||||
Intersegment income (expense) | (688) | (556) | (1,311) | (1,081) | ||
Tax-equivalized pre-tax income | [1] | (743) | 634 | (461) | 2,506 | |
Goodwill | ||||||
Other intangible assets, net | ||||||
Total assets | (6,002) | (103,376) | (6,002) | (103,376) | ||
Average funding sources | ||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2021 and 2020. The tax-equivalent adjustment was approximately $487,000 and $474,000 f for the Second Quarter of 2021 and 2020, respectively, and $949,000 and $958,000 for the First Half of 2021 and 2020, respectively. |
Loans by Type (Summary of Loan
Loans by Type (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Participating Mortgage Loans [Line Items] | ||
Loans | $ 871,020 | $ 891,676 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 330,714 | 298,984 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 103,878 | 100,419 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 24,500 | 25,090 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 331,235 | 333,661 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 24,051 | 23,818 |
Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 56,642 | $ 109,704 |
Unaccreted PPP loan fees | $ 1,312 |
Loans by Type (Schedule of the
Loans by Type (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 871,020 | 891,676 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 330,714 | 298,984 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 103,878 | 100,419 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 24,500 | 25,090 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 331,235 | 333,661 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 24,051 | 23,818 |
Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 56,642 | 109,704 |
Current [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 871,020 | 891,676 |
Current [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 330,714 | 298,984 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 103,878 | 100,419 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 24,500 | 25,090 |
Current [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 331,235 | 333,661 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | 24,051 | 23,818 |
30 to 59 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
30 to 59 Days Past Due [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
60 to 89 Days Past Due [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
90 Days and Over [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | ||
Current [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Gross | $ 56,642 | $ 109,704 |
Loans by Type (Schedule of th_2
Loans by Type (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Participating Mortgage Loans [Line Items] | |||
Loans | $ 871,020 | $ 891,676 | |
Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 856,543 | 873,092 |
Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 14,477 | 18,584 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Commercial and Industrial [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 330,714 | 298,984 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 319,477 | 284,882 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 11,237 | 14,102 |
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 | 103,878 | 100,419 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 103,637 | 99,044 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 241 | 1,375 |
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 | 24,500 | 25,090 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 24,500 | 25,090 |
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 | 331,235 | 333,661 | |
Real Estate Faith-based Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 328,236 | 330,554 |
Real Estate Faith-based Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 2,999 | 3,107 |
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 | 24,051 | 23,818 | |
Real Estate Faith-based Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 24,051 | 23,818 |
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] | ||
Paycheck protection program ("PPP") [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 56,642 | 109,704 | |
Paycheck protection program ("PPP") [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 56,642 | 109,704 |
Paycheck protection program ("PPP") [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Paycheck protection program ("PPP") [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 Categ
Loans by Type (Summary of Category of Loans Considered as Troubled Debt Restructuring) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Loans | 2 |
Pre-Modification Outstanding Balance | $ 9,802 |
Post-Modification Outstanding Balance | $ 9,802 |
Commercial and Industrial [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Loans | 1 |
Pre-Modification Outstanding Balance | $ 8,773 |
Post-Modification Outstanding Balance | $ 8,773 |
Faith-Based Real Estate [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Number of Loans | 1 |
Pre-Modification Outstanding Balance | $ 1,029 |
Post-Modification Outstanding Balance | $ 1,029 |
Loans by Type (Summary of ACL b
Loans by Type (Summary of ACL by Category) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | $ 11,944 | $ 11,279 | $ 10,556 |
Cumulative effect of accounting change (ASU 2016-13) | 723 | ||
Charge-Offs | |||
(Release of) provision for credit losses | (790) | 645 | |
Recoveries | 17 | 20 | |
Ending Balance | 11,171 | 11,944 | 11,279 |
C&I [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 4,635 | 4,348 | 4,874 |
Cumulative effect of accounting change (ASU 2016-13) | (526) | ||
Charge-Offs | |||
(Release of) provision for credit losses | (509) | 268 | |
Recoveries | 2 | 19 | |
Ending Balance | 4,128 | 4,635 | 4,348 |
CRE [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 1,175 | 1,127 | 1,528 |
Cumulative effect of accounting change (ASU 2016-13) | (401) | ||
Charge-Offs | |||
(Release of) provision for credit losses | (54) | 48 | |
Recoveries | |||
Ending Balance | 1,121 | 1,175 | 1,127 |
Faith-based CRE [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 5,717 | 5,478 | 3,842 |
Cumulative effect of accounting change (ASU 2016-13) | 1,636 | ||
Charge-Offs | |||
(Release of) provision for credit losses | (199) | 238 | |
Recoveries | 15 | 1 | |
Ending Balance | 5,533 | 5,717 | 5,478 |
Construction [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 417 | 326 | 312 |
Cumulative effect of accounting change (ASU 2016-13) | 14 | ||
Charge-Offs | |||
(Release of) provision for credit losses | (28) | 91 | |
Recoveries | |||
Ending Balance | $ 389 | $ 417 | $ 326 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Credit losses released | $ 420,000 | |
Allowance for unfunded commitments | 147,000 | $ 567,000 |
Unused loan commitments | 194,669,000 | |
Standby letters of credit | 11,932,000 | |
Commercial letters of credit | $ 521,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Company's Contractual Cash Obligations) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Time Deposits, Less than 1 Year | $ 36,441 |
Time Deposits, 1 to 3 Years | 14,938 |
Time Deposits, 3 to 5 Years | 63 |
Time Deposits, over 5 Years | |
Time Deposits, Total | $ 51,442 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Incentive Plan, shares authorized | 1,500,000 | 1,500,000 | ||
Stock-based compensation expense | $ 826 | $ 756 | $ 1,519 | $ 1,478 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 2,638 | $ 2,638 | ||
Total unrecognized compensation expense, weighted average period | 85 years | |||
Vesting period | 3 years | |||
Granted, Shares | 49,406 | |||
Performance-based restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Granted, Shares | 29,688 | |||
Performance-based restricted shares [Member] | June 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 29,688 | |||
Percentage of target opportunity for awards to vest | 94.40% | |||
Expiry period | 3 years | |||
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] | Minimum [Member] | June 2021 [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% | |||
Performance-based restricted shares [Member] | Maximum [Member] | June 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target opportunity for awards to vest | 150.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares | |
Beginning balance | shares | 136,167 |
Granted | shares | 49,406 |
Vested | shares | (22,750) |
Ending balance | shares | 162,823 |
Fair Value | |
Beginning balance | $ / shares | $ 46.78 |
Granted | $ / shares | 41.54 |
Vested | $ / shares | 47.97 |
Ending balance | $ / shares | $ 44.99 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of PBRS Activity) (Details) - Performance-Based Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares | |
Beginning balance | shares | 98,410 |
Granted | shares | 52,240 |
Vested | shares | (31,451) |
Ending balance | shares | 119,199 |
Fair Value | |
Beginning balance | $ / shares | $ 50.64 |
Granted | $ / shares | 40.74 |
Vested | $ / shares | 48.63 |
Ending balance | $ / shares | $ 46.79 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Company's SARs Activity) (Details) - SARs [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance | shares | 144,999 |
Exercised | shares | (20,560) |
Forfeited | $ (2,088) |
Exercisable ending balance | shares | 122,351 |
Beginning balance, Weighted-Average Exercise Price | $ 32.99 |
Exercised, Weighted-Average Exercise Price | 24.12 |
Forfeited, Weighted-Average Exercise Price | 31.92 |
Exercisable, Weighted-Average Exercise Price | $ 34.50 |
Beginning balance, Average Remaining Contractual Term Years | 1 year 11 months 12 days |
Exercisable, Average Remaining Contractual Term Years | 1 year 8 months 1 day |
Beginning balance, Aggregate Intrinsic Value | $ | $ 1,095 |
Exercisable, Aggregate Intrinsic Value | $ | $ 1,228 |
Defined Pension Plans (Narrativ
Defined Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension period | 30 years | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 691 | $ 1,027 | $ 418 | $ 2,056 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 161 | $ 145 | $ 321 | $ 290 |
Defined Pension Plans (Schedule
Defined Pension Plans (Schedule of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 963 | $ 4,329 |
Interest cost on projected benefit obligations | 3,069 | 3,908 |
Expected return on plan assets | (6,299) | (6,049) |
Net amortization | 360 | 1,946 |
Net periodic pension (benefit) cost | (1,907) | 4,134 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 147 | 121 |
Interest cost on projected benefit obligations | 291 | 347 |
Net amortization | 203 | 112 |
Net periodic pension (benefit) cost | $ 641 | $ 580 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.40% | 17.30% | 18.00% | 17.80% |
Statutory federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Number of securities that had an unrealized loss | 15 | 15 | ||
Number of securities that had an unrealized loss, greater than 12 months | 0 | 0 | ||
Percentage of total securities | 5.00% | 5.00% | ||
Proceeds from sales of securities available-for-sale | $ 10,125 | $ 0 | $ 13,116 | $ 19,629 |
Gross realized gains | $ 3 | $ 0 | $ 45 | $ 1,069 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Fair Value | $ 507,047 | $ 357,726 |
Gross Unrealized Gains | 17,457 | 19,679 |
Gross Unrealized Losses | 472 | |
Amortized Cost | 490,062 | 338,047 |
State and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 351,695 | 305,974 |
Gross Unrealized Gains | 16,004 | 18,915 |
Gross Unrealized Losses | 48 | |
Amortized Cost | 335,739 | 287,059 |
U.S. government agencies [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 90,933 | 51,752 |
Gross Unrealized Gains | 601 | 764 |
Gross Unrealized Losses | 424 | |
Amortized Cost | 90,756 | $ 50,988 |
Corporate Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 64,419 | |
Gross Unrealized Gains | 852 | |
Gross Unrealized Losses | ||
Amortized Cost | $ 63,567 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Marketable Securities [Line Items] | |
Estimated fair value, less than 12 months | $ 68,182 |
Estimated fair value, 12 months or more | |
Estimated fair value, total | 68,182 |
Unrealized losses, less than 12 months | 472 |
Unrealized losses, 12 months or more | |
Unrealized losses, total | 472 |
State and political subdivisions [Member] | |
Marketable Securities [Line Items] | |
Estimated fair value, less than 12 months | 8,184 |
Estimated fair value, 12 months or more | |
Estimated fair value, total | 8,184 |
Unrealized losses, less than 12 months | 48 |
Unrealized losses, 12 months or more | |
Unrealized losses, total | 48 |
U.S. government agencies [Member] | |
Marketable Securities [Line Items] | |
Estimated fair value, less than 12 months | 59,998 |
Estimated fair value, 12 months or more | |
Estimated fair value, total | 59,998 |
Unrealized losses, less than 12 months | 424 |
Unrealized losses, 12 months or more | |
Unrealized losses, total | $ 424 |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 58,144 | |
Amortized Cost, Due after 1 year through 5 years | 95,443 | |
Amortized Cost, Due after 5 years through 10 years | 216,180 | |
Amortized Cost, Due after 10 years | 120,295 | |
Amortized Cost, Total | 490,062 | |
Fair Value, Due in 1 year or less | 58,412 | |
Fair Value, Due after 1 year through 5 years | 100,135 | |
Fair Value, Due after 5 years through 10 years | 227,682 | |
Fair Value, Due after 10 years | 120,818 | |
Fair Value, Total | $ 507,047 | $ 357,726 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 621,581 | $ 670,528 | $ 232,139 | $ 203,954 |
Investment securities, Carrying Amount | 507,047 | 357,726 | ||
Loans, net, Carrying Amount | 859,849 | 879,732 | ||
Accrued interest receivable, Carrying Amount | 6,802 | 6,850 | ||
Assets, Carrying Amount | 1,995,279 | 1,914,836 | ||
Cash and cash equivalents, Fair Value | 621,581 | 670,528 | ||
Investment securities, Fair Value | 507,047 | 357,726 | ||
Loans, net, Fair Value | 861,911 | 883,461 | ||
Accrued interest receivable, Fair Value | 6,802 | 6,850 | ||
Assets, Fair Value | 1,997,341 | 1,918,565 | ||
Deposits, Carrying Amount | 1,015,943 | 1,050,856 | ||
Accounts and drafts payable, Carrying Amount | 939,570 | 835,386 | ||
Accrued interest payable, Carrying Amount | 58 | 38 | ||
Liabilities, Carrying Amount | 1,955,571 | 1,886,280 | ||
Deposits, Fair Value | 1,015,943 | 1,050,856 | ||
Accounts and drafts payable, Fair Value | 939,570 | 835,386 | ||
Accrued interest payable, Fair Value | 58 | 38 | ||
Liabilities, Fair Value | $ 1,955,571 | $ 1,886,280 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fee revenue and other income: | ||||
In-scope of FASB ASC 606 - Invoice processing fees | $ 19,753 | $ 17,923 | $ 38,817 | $ 37,047 |
In-scope of FASB ASC 606 - Invoice payment fees | 6,595 | 4,738 | 12,747 | 11,117 |
Information services payment and processing revenue | 26,348 | 22,661 | 51,564 | 48,164 |
Bank service fees | 530 | 398 | 1,024 | 808 |
Fee revenue (in-scope of FASB ASC 606) | 26,878 | 23,059 | 52,588 | 48,972 |
Other income (out-of-scope of FASB ASC 606) | 109 | 115 | 574 | 1,297 |
Total fee revenue and other income | $ 26,987 | $ 23,174 | $ 53,162 | $ 50,269 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Leases [Abstract] | ||
Lease liabilities | $ 5,429 | $ 5,429 |
Right-of-use assets | 4,912 | 4,912 |
Operating lease cost | 415 | 835 |
Short-term lease cost | $ 61 | $ 91 |
Weighted average remaining lease term | 6 years 1 month 6 days | 6 years 1 month 6 days |
Weighted average discount rate | 5.50% | 5.50% |
Additional lease liabilities | $ 200 | $ 200 |
Additional right-of-use assets | $ 200 | $ 200 |
Leases (Schedule of operating l
Leases (Schedule of operating lease liabilities) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Lease payments due | |
Less than 1 year | $ 1,695 |
1-2 years | 1,351 |
2-3 years | 532 |
3-4 years | 509 |
4-5 years | 519 |
Over 5 years | 1,760 |
Total undiscounted cash flows | 6,366 |
Discount on cash flows | 937 |
Total lease liability | $ 5,429 |