10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_________________

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended    March 31, 2013
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ___________________ to ___________________

Commission File No. 000-20827
________________
CASS INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)

Missouri	43-1265338
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
12444 Powerscourt Drive, Suite 550
St. Louis, Missouri	63131
(Address of principal executive offices)	(Zip Code)

(314) 506-5500
(Registrant’s telephone number, including area code)
_________________

     Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes               X                           No          

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes               X                           No          

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one)	Large Accelerated Filer	Accelerated Filer        X
	Non-Accelerated Filer	Smaller Reporting Company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes                                No               X     

     The number of shares outstanding of the registrant's only class of common stock as of April 29, 2013: Common stock, par value $.50 per share – 11,487,650 shares outstanding.

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TABLE OF CONTENTS

PART I – Financial Information
	Item 1.	FINANCIAL STATEMENTS
		Consolidated Balance Sheets
		March 31, 2013 (unaudited) and December 31, 2012	3
		Consolidated Statements of Income
		Three Months Ended March 31, 2013 and 2012 (unaudited)	4
		Consolidated Statements of Comprehensive Income
		Three Months Ended March 31, 2013 and 2012 (unaudited)	5
		Consolidated Statements of Cash Flows
		Three Months Ended March 31, 2013 and 2012 (unaudited)	6
		Notes to Consolidated Financial Statements (unaudited)	7
	Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
		AND RESULTS OF OPERATIONS	17
	Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	26
	Item 4.	CONTROLS AND PROCEDURES	26
PART II – Other Information – Items 1. – 6.			26
	SIGNATURES		28

Forward-looking Statements - Factors That May Affect Future Results

This report may contain or incorporate by reference forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although we believe that, in making any such statements, our expectations are based on reasonable assumptions, forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors beyond our control, which may cause future performance to be materially different from expected performance summarized in the forward-looking statements. These risks, uncertainties and other factors are discussed in Part I, Item 1A, “Risk Factors” of the Company’s 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”), which may be updated from time to time in our future filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands except Share and Per Share Data)

	March 31,
	2013			December 31,
	(Unaudited)			2012
Assets
Cash and due from banks	$	9,692		$	18,794
Interest-bearing deposits in other financial institutions		89,420			108,560
Federal funds sold and other short-term investments		67,255			13,734
Cash and cash equivalents		166,367			141,088
Securities available-for-sale, at fair value		307,507			341,935
Loans		679,890			687,733
Less: Allowance for loan losses		11,032			12,357
Loans, net		668,858			675,376
Premises and equipment, net		11,905			10,735
Investment in bank-owned life insurance		15,041			14,910
Payments in excess of funding		69,419			63,522
Goodwill		11,590			11,590
Other intangible assets, net		3,610			3,757
Other assets		25,982			24,474
Total assets	$	1,280,279		$	1,287,387
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	133,284		$	144,143
Interest-bearing		403,062			419,565
Total deposits		536,346			563,708
Accounts and drafts payable		542,528			522,761
Other liabilities		25,019			26,903
Total liabilities		1,103,893			1,113,372
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; 20,000,000
shares authorized and 11,931,147 shares issued at March 31, 2013
and December 31, 2012		5,966			5,966
Additional paid-in capital		124,983			125,086
Retained earnings		64,918			60,952
Common shares in treasury, at cost (451,284 shares at March 31,
2013 and 467,316 shares at December 31, 2012)		(11,580	)		(11,896	)
Accumulated other comprehensive loss		(7,901	)		(6,093	)
Total shareholders’ equity		176,386			174,015
Total liabilities and shareholders’ equity	$	1,280,279		$	1,287,387

See accompanying notes to unaudited consolidated financial statements.

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CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in Thousands except Per Share Data)

	Three Months Ended
	March 31,
	2013		2012
Fee Revenue and Other Income:
Information services payment and processing revenue	$	16,576	$	16,487
Bank service fees		304		298
Gains on sales of securities		1,453		966
Other		132		132
Total fee revenue and other income		18,465		17,883
Interest Income:
Interest and fees on loans		8,415		8,940
Interest and dividends on securities:
Taxable		11		10
Exempt from federal income taxes		2,333		2,510
Interest on federal funds sold and
other short-term investments		97		129
Total interest income		10,856		11,589
Interest Expense:
Interest on deposits		687		838
Net interest income		10,169		10,751
Provision for loan losses		200		200
Net interest income after provision for loan
losses		9,969		10,551
Total net revenue		28,434		28,434
Operating Expense:
Salaries and employee benefits		16,258		15,561
Occupancy		609		532
Equipment		908		863
Amortization of intangible assets		147		139
Other operating expense		2,467		3,246
Total operating expense		20,389		20,341
Income before income tax expense		8,045		8,093
Income tax expense		2,013		2,185
Net income	$	6,032	$	5,908
Basic earnings per share	$	.53	$	.52
Diluted earnings per share		.52		.51

See accompanying notes to unaudited consolidated financial statements.

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CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars In Thousands)

	Three Months Ended
	March 31,
	2013			2012
Comprehensive income:
Net income	$	6,032		$	5,908
Other comprehensive income:
Net unrealized gain on securities available-for-sale, net of tax		(815	)		(903	)
Reclassification adjustments for gains included in net income, net of
tax		(945	)		(628	)
Foreign currency translation adjustments		(48	)		3
Total comprehensive income	$	4,224		$	4,380

See accompanying notes to unaudited consolidated financial statements.

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CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in Thousands)

	Three Months Ended
	March 31,
	2013			2012
Cash Flows From Operating Activities:
Net income	$	6,032		$	5,908
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		1,828			1,515
Net gains on sales of securities		(1,453	)		(966	)
Provision for loan losses		200			200
Stock-based compensation expense		421			351
Increase in income tax liability		537			1,770
Increase in pension liability		625			129
Other operating activities, net		(3,785	)		903
Net cash provided by operating activities		4,405			9,810
Cash Flows From Investing Activities:
Proceeds from sales of securities available-for-sale		28,021			14,659
Proceeds from maturities of securities available-for-sale		4,015			2,950
Purchase of securities available-for-sale		—			(18,490	)
Net decrease (increase) in loans		6,318			(18,999	)
Increase in payments in excess of funding		(5,897	)		(4,247	)
Purchases of premises and equipment, net		(1,714	)		(168	)
Environmental management acquisition		—			(7,798	)
Net cash provided by (used in) investing activities		30,743			(32,093	)
Cash Flows From Financing Activities:
Net decrease in noninterest-bearing demand deposits		(10,859	)		(6,456	)
Net decrease in interest-bearing demand and savings deposits		(13,130	)		(14,130	)
Net decrease in time deposits		(3,373	)		(11,866	)
Net increase (decrease) in accounts and drafts payable		19,767			(20,211	)
Cash dividends paid		(2,066	)		(1,765	)
Distribution of stock awards, net		(208	)		(135	)
Net cash used in financing activities		(9,869	)		(54,563	)
Net increase (decrease) in cash and cash equivalents		25,279			(76,846	)
Cash and cash equivalents at beginning of period		141,088			235,962
Cash and cash equivalents at end of period	$	166,367		$	159,116
Supplemental information:
Cash paid for interest	$	669		$	842
Cash paid for income taxes		1,445			293

See accompanying notes to unaudited consolidated financial statements.

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CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1 - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share and per share data have been restated to give effect to the 10% stock dividend issued on December 14, 2012. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2012.

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,” which requires that intangibles with indefinite useful lives be tested annually for impairment and those with finite useful lives be amortized over their useful lives.

Details of the Company’s intangible assets are as follows:

	March 31, 2013					December 31, 2012
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(In thousands)	Amount		Amortization			Amount		Amortization
Assets eligible for amortization:
Customer lists	$	3,933	$	(1,121	)	$	3,933	$	(1,015	)
Non-compete agreements		261		(66	)		261		(53	)
Software		234		(98	)		234		(78	)
Other		500		(33	)		500		(25	)
Unamortized intangible assets:
Goodwill1		11,817		(227	)		11,817		(227	)
Total intangible assets	$	16,745	$	(1,545	)	$	16,745	$	(1,398	)

____________________

¹Amortization through December 31, 2001 prior to adoption of FASB ASC 350.

The customer lists are amortized over seven and 10 years; the non-compete agreements over five years; software over three years and other intangible assets over 15 years. Amortization of intangible assets amounted to $147,000 and $139,000 for the three-month periods ended March 31, 2013 and 2012, respectively. Estimated future amortization of intangibles is as follows: $535,000 in 2013, $482,000 in 2014, $404,000 in 2015 and 2016 and $352,000 in 2017.

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Note 3 – Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. There were no anti-dilutive shares in the three months ended March 31, 2013 and 2012. The calculations of basic and diluted earnings per share are as follows:

	Three Months Ended
	March 31,
(In thousands except share and per share data)	2013		2012
Basic
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Basic earnings per share	$	.53	$	.52
Diluted
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Effect of dilutive restricted stock, stock options and stock appreciation
rights		174,866		175,597
Weighted-average common shares outstanding assuming dilution		11,596,894		11,544,818
Diluted earnings per share	$	.52	$	.51

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 363,000 shares of the Company’s common stock. The Company did not repurchase any shares during the three-month periods ended March 31, 2013 and 2012. As of March 31, 2013, 363,000 shares remained available for repurchase under the program. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions.

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, processing and capital requirements.

The Information Services segment provides freight, utility, telecommunication and environmental invoice processing and payment services primarily to large corporations. The Banking Services segment provides banking services primarily to privately-held businesses and churches.

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, 2012. Management evaluates segment performance based on net income after allocations for corporate expenses and income taxes. Transactions between segments are accounted for at what management believes to be fair value.

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

Assets represent actual assets owned by Information Services and Banking Services and there is no allocation methodology used. Loans are sold by Banking Services to Information Services to create liquidity when the loan-to-deposit ratio of the Company’s bank subsidiary, Cass Commercial Bank (the “Bank”), is greater than 100%. In addition, investment securities are sold by Information Services to Town and Country Investments LLC, a subsidiary of the Bank, to balance consolidated liquidity. Segment interest from customers is the actual interest earned on the loans owned by Information Services and Banking Services, respectively.

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Summarized information about the Company’s operations in each industry segment is as follows:

					Corporate,
	Information		Banking		Eliminations
(In thousands)	Services		Services		and Other			Total
Quarter Ended March 31, 2013
Fee revenue and other income:
Income from customers	$	18,161	$	304	$	—		$	18,465
Intersegment income (expense)		2,568		381		(2,949	)		—
Net income		3,693		2,252		87			6,032
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,610		—		—			3,610
Total assets		660,631		629,929		(10,281	)		1,280,279
Quarter Ended March 31, 2012
Fee revenue and other income
Income from customers	$	22,548	$	5,886	$	—		$	28,434
Intersegment income (expense)		2,540		428		(2,968	)		—
Net income (expense)		3,877		2,031		—			5,908
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,699		—		—			3,699
Total assets		693,352		590,458		(10,296	)		1,273,514

Note 6 – Loans by Type

A summary of loan categories is as follows:

	March 31,		December 31,
(In thousands)	2013		2012
Commercial and industrial	$	179,021	$	160,862
Real estate
Commercial:
Mortgage		125,204		134,843
Construction		6,836		7,025
Church, church-related:
Mortgage		350,674		368,118
Construction		17,994		16,450
Other		161		435
Total loans	$	679,890	$	687,733

The following table presents the aging of loans by loan categories at March 31, 2013 and December 31, 2012:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
(In thousands)	Current		Days		Days		Over		accrual		Loans
March 31, 2013
Commercial and industrial	$	178,885	$	—	$	—	$	—	$	136	$	179,021
Real estate
Commercial:
Mortgage		124,600		—		—		—		604		125,204
Construction		6,836		—		—		—		—		6,836
Church, church-related:
Mortgage		349,355		1,151		—		—		168		350,674
Construction		17,994		—		—		—		—		17,994
Other		161		—		—		—		—		161
Total	$	677,831	$	1,151	$	—	$	—	$	908	$	679,890
December 31, 2012
Commercial and industrial	$	159,423	$	—	$	—	$	—	$	1,439	$	160,862
Real estate
Commercial:
Mortgage		129,884		—		—		—		4,959		134,843
Construction		7,025		—		—		—		—		7,025
Church, church-related:
Mortgage		367,944		—		—		—		174		368,118
Construction		16,450		—		—		—		—		16,450
Other		435		—		—		—		—		435
Total	$	681,161	$	—	$	—	$	—	$	6,572	$	687,733

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The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2013 and December 31, 2012:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject to
	Normal		Special		Special			Total
(In thousands)	Monitoring1		Monitoring2		Monitoring2			Loans
March 31, 2013
Commercial and industrial	$	175,369	$	3,516	$	136		$	179,021
Real estate
Commercial:
Mortgage		116,618		7,982		604			125,204
Construction		6,836		—		—			6,836
Church, church-related:
Mortgage		347,173		3,333		168			350,674
Construction		17,994		—		—			17,994
Other		161		—		—			161
Total	$	664,151	$	14,831	$	908		$	679,890
December 31, 2012
Commercial and industrial	$	155,838	$	3,585	$	1,439		$	160,862
Real estate
Commercial:
Mortgage		123,315		6,569		4,959	3		134,843
Construction		7,025		—		—			7,025
Church, church-related:
Mortgage		366,366		1,578		174			368,118
Construction		16,450		—		—			16,450
Other		435		—		—			435
Total	$	669,429	$	11,732	$	6,572		$	687,733

____________________

¹Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
²Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
³In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” At March 31, 2013 and December 31, 2012, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. Loans delinquent 90 days or more and still accruing interest at March 31, 2013 and December 31, 2012 were $0. Loans classified as troubled debt restructuring were $0 at March 31, 2013 and December 31, 2012.

There are two foreclosed loans with an aggregate book value of $1,322,000 which have been recorded as other real estate owned (included in other assets) as of March 31, 2013 and there were two foreclosed loans with an aggregate book value of $1,322,000 as of December 31, 2012.

-10-

The following table presents the recorded investment and unpaid principal balance for impaired loans at March 31, 2013 and December 31, 2012:

				Unpaid			Related
	Recorded			Principal			Allowance for
(In thousands)	Investment			Balance			Loan Losses
March 31, 2013
Commercial and industrial:
Nonaccrual	$	136		$	136		$	68
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		604			604			144
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		168			168			84
Total impaired loans	$	908		$	908		$	296
December 31, 2012
Commercial and industrial:
Nonaccrual	$	1,439		$	1,439		$	657
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		4,959	*		4,959	*		660
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		174			174			87
Total impaired loans	$	6,572		$	6,572		$	1,404

____________________

*In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

A summary of the activity in the allowance for loan losses from December 31, 2012 to March 31, 2013 is as follows:

	December 31,		Charge-							March 31,
(In thousands)	2012		Offs		Recoveries		Provision			2012
Commercial and industrial	$	3,192	$	1,296	$	2	$	724		$	2,622
Real estate
Commercial:
Mortgage		3,784		233		—		(379	)		3,172
Construction		137		—		—		(3	)		134
Church, church-related:
Mortgage		4,903		—		2		(124	)		4,781
Construction		333		—		—		(12	)		321
Other		8		—		—		(6	)		2
Total	$	12,357	$	1,529	$	4	$	200		$	11,032

Note 7 – Commitments and Contingencies

In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. At March 31, 2013 and December 31, 2012, no amounts have been accrued for any estimated losses for these instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial and standby letters of credit are conditional commitments issued by the Company or its subsidiaries to guarantee the performance of a customer to a third party. These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At March 31, 2013, the balance of unused loan commitments, standby and commercial letters of credit were $11,919,000, $11,856,000, and $3,866,000, 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.

-11-

The following table summarizes contractual cash obligations of the Company related to operating lease commitments and time deposits at March 31, 2013:

			Amount of Commitment Expiration per Period
			Less than		1-3		3-5		Over 5
(In thousands)	Total		1 Year		Years		Years		Years
Operating lease commitments	$	7,926	$	1,236	$	1,997	$	1,589	$	3,104
Time deposits		109,177		91,230		17,149		798		—
Total	$	117,103	$	92,466	$	19,146	$	2,387	$	3,104

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.

Note 8 – Stock-Based Compensation

The 2007 Omnibus Incentive Stock Plan (the “Omnibus Plan”) permits the issuance of up to 1,065,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company issues shares out of treasury stock for these awards. During the three months ended March 31, 2013, 21,804 restricted shares and 85,943 SARs were granted under the Omnibus Plan.

Restricted Stock

Restricted shares are amortized to expense over the three-year vesting period. As of March 31, 2013, the total unrecognized compensation expense related to non-vested common stock was $1,753,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.3 years.

Following is a summary of the activity of the restricted stock:

	Three Months Ended
	March 31, 2013
	Shares		Fair Value
Balance at December 31, 2012	54,875		$	31.61
Granted	21,804		$	42.14
Vested	(18,959	)	$	30.68
Balance at March 31, 2013	57,720		$	35.90

SARs
SARs vest over a three-year period, with one-third of the shares vesting and becoming exercisable each year on the anniversary date of the grant, and they expire 10 years from the original grant date. As of March 31, 2013, the total unrecognized compensation expense was $1,555,000, and the related weighted-average period over which it is expected to be recognized is 1.9 years. Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2013:

			Weighted-		Average	Aggregate
			Average		Remaining	Intrinsic
			Exercise		Contractual	Value
	Shares		Price		Term Years	(In thousands)
Outstanding at December 31, 2012	351,881		$	27.52	7.34	$	4,988
Granted	85,943		$	42.14
Exercised	(3,192	)	$	29.66
Outstanding at March 31, 2013	434,632		$	30.40	7.60	$	5,061
Exercisable at March 31, 2013	257,504		$	25.78	6.46	$	4,187

-12-

Following is a summary of the activity of the non-vested SARs during the three-month period ended March 31, 2013:

			Weighted-Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2012	161,294		$	31.70
Granted	85,943		$	42.14
Vested	(70,109	)	$	30.85
Non-vested at March 31, 2013	177,128		$	37.11

The Company uses the Black-Scholes pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the per-share fair value of SARs granted:

	Three Months Ended March 31,
	2013		2012
Risk-free interest rate	1.29	%	1.38	%
Expected life	7 yrs.		7 yrs.
Expected volatility	28.72	%	29.39	%
Expected dividend yield	1.71	%	1.84	%

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield for the period equal to the expected life of the SARs at the time of the grant. The expected life was derived using the historical exercise activity. The Company uses historical volatility for a period equal to the expected life of the rights using average monthly closing market prices of the Company’s stock as reported on The Nasdaq Global Market. The expected dividend yield is based on the Company’s current rate of annual dividends.

Note 9 – Defined Pension Plans

The Company has a noncontributory defined benefit pension plan, which covers most of its employees. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs:

	Estimated			Actual
(In thousands)	2013			2012
Service cost – benefits earned during the year	$	3,519		$	2,799
Interest cost on projected benefit obligation		2,821			2,570
Expected return on plan assets		(4,472	)		(3,967	)
Net amortization and deferral		1,849			1,473
Net periodic pension cost	$	3,717		$	2,875

Pension costs recorded to expense were $935,000 and $665,000 for the three-month periods ended March 31, 2013 and 2012, respectively. The Company made a contribution of $500,000 to the plan during the three-month period ended March 31, 2013 and expects to contribute at least an additional $1,500,000 in 2013.

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 2012 and an estimate for 2013:

	Estimated		Actual
(In thousands)	2013		2012
Service cost – benefits earned during the year	$	144	$	115
Interest cost on projected benefit obligation		335		307
Net amortization		551		360
Net periodic pension cost	$	1,030	$	782

-13-

Pension costs recorded to expense were $260,000 and $224,000 for the three-month periods ended March 31, 2013 and 2012, respectively.

Note 10 – Income Taxes

As of March 31, 2013, the Company’s unrecognized tax benefits were approximately $1,990,000, of which $1,439,000 would, if recognized, affect the Company’s effective tax rate. As of December 31, 2012, the Company's unrecognized tax benefits were approximately $1,885,000, of which $1,357,000 would, if recognized, affect the Company's effective tax rate. During the next 12 months, the Company may realize a reduction of its unrecognized tax benefits of approximately $538,000 due to the lapse of federal and state statutes of limitations.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company had $106,000 and $89,000 of gross interest accrued as of March 31, 2013 and December 31, 2012, respectively. There were no penalties for unrecognized tax benefits accrued at March 31, 2013 and December 31, 2012.

The Company is subject to income tax in the U.S. federal jurisdiction and numerous state jurisdictions. U.S. federal income tax returns for tax years 2009 through 2011 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2009 through 2011.

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 falls into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	March 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	283,625	$	17,343	$	203	$	300,765
Certificates of deposit		6,742		—		—		6,742
Total	$	290,367	$	17,343	$	203	$	307,507
	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	315,345	$	19,960	$	112	$	335,193
Certificates of deposit		6,742		—		—		6,742
Total	$	322,087	$	19,960	$	112	$	341,935

-14-

The fair values of securities with unrealized losses are as follows:

	March 31, 2013
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	28,408	$	203	$	—	$	—	$	28,048	$	203
Certificates of deposit		—		—		—		—		—		—
Total	$	28,048	$	203	$	—	$	—	$	28,048	$	203
	December 31, 2012
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	19,758	$	112	$	—	$	—	$	19,758	$	112
Certificates of deposit		—		—		—		—		—		—
Total	$	19,758	$	112	$	—	$	—	$	19,758	$	112

There were 25 securities, or 10% of total (none greater than 12 months), in an unrealized loss position as of March 31, 2013. There were 18 securities, or 5% of total (none greater than 12 months), in an unrealized loss position as of December 31, 2012. All unrealized losses were reviewed to determine whether the losses were other than temporary. Management believes that all unrealized losses are temporary since they were market driven, and the Company has the ability and intent to hold these securities until maturity.

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.

	March 31, 2013
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,816	$	17,039
Due after 1 year through 5 years		72,535		77,867
Due after 5 years through 10 years		148,171		155,920
Due after 10 years		52,845		56,681
Total	$	290,367	$	307,507

Proceeds from sales of investment securities classified as available for sale were $28,021,000 and $14,659,000 for the three months ended March 31, 2013 and 2012, respectively. Gross realized gains were $1,453,000 and $966,000 for the three months ended March 31, 2013 and 2012, respectively. There were two securities totaling $3,750,000 pledged to secure public deposits and for other purposes at March 31, 2013.

-15-

Note 12 – Fair Value of Financial Instruments

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments:

	March 31, 2013				December 31, 2012
	Carrying				Carrying
(In thousands)	Amount		Fair Value		Amount		Fair Value
Balance sheet assets:
Cash and cash equivalents	$	166,367	$	166,367	$	141,088	$	141,088
Investment securities		307,507		307,507		341,935		341,935
Loans, net		668,858		669,565		675,376		676,675
Accrued interest receivable		5,664		5,664		6,276		6,276
Total	$	1,148,396	$	1,149,103	$	1,164,675	$	1,165,974
Balance sheet liabilities:
Deposits	$	536,346	$	536,768	$	563,708	$	564,189
Accounts and drafts payable		542,528		542,528		522,761		522,761
Accrued interest payable		129		129		112	$	112
Total	$	1,079,003	$	1,079,425	$	1,086,581	$	1,087,062

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and Cash Equivalents - The carrying amount approximates fair value.

Investment in Securities - The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 11, “Investment in Securities”, for fair value and unrealized gains and losses by investment type.

Loans - The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 2 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses results in a fair valuation.

Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or current appraised value and therefore, the fair value is a nonrecurring Level 3 valuation.

Accrued Interest Receivable - The carrying amount approximates fair value.

Deposits - The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities and therefore, is a Level 2 valuation. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits.

Accounts and Drafts Payable - The carrying amount approximates fair value.

Accrued Interest - The carrying amount approximates fair value.

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three months ended March 31, 2013 and 2012. No financial instruments are measured using Level 3 inputs for the three months ended March 31, 2013 and 2012.

Note 13 – Subsequent Events

In accordance with FASB ASC 855, “Subsequent Events,” the Company has evaluated subsequent events after the consolidated balance sheet date of March 31, 2013 and there were no events identified that would require additional disclosures to prevent the Company’s unaudited consolidated financial statements from being misleading.

-16-

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Cass provides payment and information processing services to large manufacturing, distribution and retail enterprises from its offices/locations in St. Louis, Missouri, Columbus, Ohio, Boston, Massachusetts, Greenville, South Carolina, Wellington, Kansas, Breda, Netherlands and Jacksonville, Florida. The Company’s services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. Cass also processes and pays energy invoices, which include electricity and gas as well as waste and telecommunications expenses, and is a provider of telecom expense management solutions. Cass extracts, stores, and presents information from freight, energy, telecommunication and environmental invoices, assisting its customers’ transportation, energy, environmental and information technology managers in making decisions that will enable them to improve operating performance. The Company receives data from multiple sources, electronic and otherwise, and processes the data to accomplish the specific operating requirements of its customers. It then provides the data in a central repository for access and archiving. The data is finally transformed into information through the Company’s databases that allow client interaction as required and provide Internet-based tools for analytical processing. The Company also, through Cass Commercial Bank, its St. Louis, Missouri based bank subsidiary, provides banking services in the St. Louis metropolitan area, Orange County, California, and other selected cities in the United States. In addition to supporting the Company’s payment operations, the Bank provides banking services to its target markets, which include privately-owned businesses and churches and church-related ministries.

The specific payment and information processing services provided to each customer are developed individually to meet each customer’s requirements, which can vary greatly. In addition, the degree of automation such as electronic data interchange, imaging, work flow, and web-based solutions varies greatly among customers and industries. These factors combine so that pricing varies greatly among the customer base. In general, however, Cass is compensated for its processing services through service fees and investment of account balances generated during the payment process. The amount, type, and calculation of service fees vary greatly by service offering, but generally follow the volume of transactions processed. Interest income from the balances generated during the payment processing cycle is affected by the amount of time Cass holds the funds prior to payment and the dollar volume processed. Both the number of transactions processed and the dollar volume processed are therefore key metrics followed by management. Other factors will also influence revenue and profitability, such as changes in the general level of interest rates, which have a significant effect on net interest income. The funds generated by these processing activities are invested in overnight investments, investment grade securities, and loans generated by the Bank. The Bank earns most of its revenue from net interest income, or the difference between the interest earned on its loans and investments and the interest paid on its deposits and other borrowings. The Bank also assesses fees on other services such as cash management services.

Industry-wide factors that impact the Company include the willingness of large corporations to outsource key business functions such as freight, energy, telecommunication and environmental payment and audit. The benefits that can be achieved by outsourcing transaction processing and the management information generated by Cass’ systems can be influenced by factors such as the competitive pressures within industries to improve profitability, the general level of transportation costs, deregulation of energy costs, and consolidation of telecommunication providers. Economic factors that impact the Company include the general level of economic activity that can affect the volume and size of invoices processed, the ability to hire and retain qualified staff, and the growth and quality of the loan portfolio. In 2013, transaction volume increased in the transportation, telecom and environmental sectors despite an anemic economy. That growth was partially offset by lower volumes in the energy marketplace, where recent merger and acquisition activity is affecting customer retention, even as new sales remain strong. The general level of interest rates also has a significant effect on the revenue of the Company. As discussed in greater detail in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” in the Company’s 2012 Annual Report on Form 10-K, a decline in the general level of interest rates can have a negative impact on net interest income.

On January 6, 2012, the Company acquired the assets of Waste Reduction Consultants, Inc. (“WRC”), a provider of environmental expense management services. This acquisition positions the Company to expand its portfolio of services for controlling facility-related expenses and accelerates Cass’ leadership position as a back-office business processor. The results of operations for this service are included in the Information Services business segment.

Currently, management views Cass’ major opportunity as the continued expansion of its payment and information processing service offerings and customer base. Management intends to accomplish this by maintaining the Company’s leadership position in applied technology, which when combined with the security and processing controls of the Bank, makes Cass unique in the industry.

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Critical Accounting Policies

The Company has prepared the unaudited consolidated financial statements in this report in accordance with the FASB ASC. In preparing the unaudited consolidated financial statements, management makes estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates have been generally accurate in the past, have been consistent and have not required any material changes. There can be no assurances that actual results will not differ from those estimates. Certain accounting policies that require significant management estimates and are deemed critical to our results of operations or financial position have been discussed with the Audit Committee of the Board of Directors and are described below.

Allowance for Loan Losses. The Company performs periodic and systematic detailed reviews of its loan portfolio to assess overall collectability. The level of the allowance for loan losses reflects management’s estimate of the collectability of the loan portfolio. Although these estimates are based on established methodologies for determining allowance requirements, actual results can differ significantly from estimated results. These policies affect both segments of the Company. The impact and associated risks related to these policies on the Company’s business operations are discussed in the “Provision and Allowance for Loan Losses” section of this report. The Company’s estimates have been materially accurate in the past, and accordingly, we expect to continue to utilize the present processes.

Impairment of Assets. The Company periodically evaluates certain long-term assets such as intangible assets including goodwill, foreclosed assets and assets held for sale for impairment. Generally, these assets are initially recorded at cost, and recognition of impairment is required when events and circumstances indicate that the carrying amounts of these assets will not be recoverable in the future. If impairment occurs, various methods of measuring impairment may be called for depending on the circumstances and type of asset, including quoted market prices, estimates based on similar assets, and estimates based on valuation techniques such as discounted projected cash flows. The Company had no impairment of goodwill and intangible assets for the three-month period ended March 31, 2013 or for the fiscal year ended December 31, 2012, and management does not anticipate any future impairment loss. Investment securities available-for-sale are measured at fair value as calculated by an independent research firm. These policies affect both segments of the Company and require significant management assumptions and estimates that could result in materially different results if conditions or underlying circumstances change.

Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Judgment is required in addressing the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns such as the realization of deferred tax assets or changes in tax laws or interpretations thereof. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service and other taxing authorities. In accordance with FASB ASC 740, “Income Taxes,” the Company has unrecognized tax benefits related to tax positions taken or expected to be taken. See Note 10 to the unaudited consolidated financial statements contained herein.

Pension Plans. The amounts recognized in the unaudited consolidated financial statements related to pension plans are determined from actuarial valuations. Inherent in these valuations are assumptions, including expected return on plan assets, discount rates at which the liabilities could be settled at December 31, 2012, rate of increase in future compensation levels and mortality rates. These assumptions are updated annually and are disclosed in Note 10 to the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. There have been no significant changes in the Company’s long-term rate of return assumptions for the past three fiscal years ended December 31, and management believes they are not reasonably likely to change in the future. Pursuant to FASB ASC 715, “Compensation – Retirement Benefits,” the Company has recognized the funded status of its defined benefit postretirement plan in its balance sheet and has recognized changes in that funded status through comprehensive income. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the date of its fiscal year-end.

-18-

Results of Operations

The following paragraphs more fully discuss the results of operations and changes in financial condition for the three-month period ended March 31, 2013 (“First Quarter of 2013”) compared to the three-month period ended March 31, 2012 (“First Quarter of 2012”). The following discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes and with the statistical information and financial data appearing in this report, as well as in the Company's 2012 Annual Report on Form 10-K. Results of operations for the First Quarter of 2013 are not necessarily indicative of the results to be attained for any other period.

Net Income

The following table summarizes the Company’s operating results:

	First Quarter of
							%
(Dollars in thousands except per share data)	2013			2012			Change
Net income	$	6,032		$	5,908		2.1	%
Diluted earnings per share	$	.52		$	.51		2.0	%
Return on average assets		1.86	%		1.79	%	—
Return on average equity		14.06	%		14.69	%	—

Fee Revenue and Other Income

The Company’s fee revenue is derived mainly from transportation and facility payment and processing fees. As the Company provides its processing and payment services, it is compensated by service fees which are typically calculated on a per-item basis and by the accounts and drafts payable balances generated in the payment process which can be used to generate interest income. Processing volumes, fee revenue and other income were as follows:

	First Quarter of
					%
(In thousands)	2013		2012		Change
Transportation invoice transaction volume		7,344		6,873	6.9	%
Transportation invoice dollar volume	$	5,415,365	$	5,382,091	0.6	%
Expense management transaction volume*		4,618		4,577	0.9	%
Expense management dollar volume*	$	2,640,243	$	2,743,528	(3.8	%)
Payment and processing fees	$	16,576	$	16,487	0.5	%

____________________

*Includes Energy, Telecom and Environmental

First Quarter of 2013 compared to First Quarter of 2012:

Transportation transaction volume was up 6.9% and expense management transaction volume was up 0.9%, primarily in the telecom and environmental sectors. Transportation dollar volumes were up 0.6%, while expense management dollar volumes were down 3.8%, primarily due to the energy marketplace, where recent merger and acquisition activity is affecting customer retention, even as new sales remain strong.

There were $1,453,000 gains on sales of securities in the First Quarter of 2013, compared to $966,000 in the First Quarter of 2012.

Net Interest Income

Net interest income is the difference between interest earned on loans, investments, and other earning assets and interest expense on deposits and other interest-bearing liabilities. Net interest income is a significant source of the Company’s revenues. The following table summarizes the changes in net interest income and related factors:

	First Quarter of
							%
(In thousands)	2013			2012			Change
Average earnings assets	$	1,165,993		$	1,193,752		(2.3	%)
Average interest-bearing liabilities	$	404,988		$	402,859		.53	%
Net interest income*	$	11,378		$	12,102		(6.0	%)
Net interest margin*		3.96	%		4.08	%
Yield on earning assets*		4.20	%		4.36	%
Rate on interest-bearing liabilities		.69	%		.84	%

____________________

*Presented on a tax-equivalent basis assuming a tax rate of 35%.

-19-

First Quarter of 2013 compared to First Quarter of 2012:

First Quarter of 2013 average earning assets decreased $27,759,000, or 2.3%, compared to the same period in the prior year (see discussion in the following paragraphs). The yield on earning assets and the tax equivalent net interest margin both decreased in 2013 as the general level of interest rates remained low.

Total average loans were approximately the same for the First Quarter of 2013 as compared to the First Quarter of 2012. Average investment securities increased $13,244,000, or 4.51%, to $306,597,000.

Total average interest-bearing deposits for the First Quarter of 2013 increased $2,129,000, or 0.53%, to $404,988,000 compared to the First Quarter of 2012. Average accounts and drafts payable decreased $33,101,000, or 5.4%, due to the decline in the expense management dollar volume.

For more information on the changes in net interest income, please refer to the tables that follow.

Distribution of Assets, Liabilities and Shareholders' Equity; Interest Rate and Interest Differential

The following tables show the condensed average balance sheets for each of the periods reported, the tax-equivalent interest income and expense on each category of interest-earning assets and interest-bearing liabilities, and the average yield on such categories of interest-earning assets and the average rates paid on such categories of interest-bearing liabilities for each of the periods reported.

	First Quarter of 2013							First Quarter of 2012
				Interest							Interest
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets1
Earning assets
Loans2, 3:
Taxable	$	677,048		$	8,414	5.04	%	$	677,183		$	8,939	5.31	%
Tax-exempt4		629			1	.64			707			1	.57
Investment securities5:
Taxable		1,030			1	.39			981			6	2.46
Tax-exempt4		298,825			3,542	4.81			289,122			3,861	5.37
Certificates of deposit		6,742			10	.60			3,250			4	.50
Interest-bearing deposits in
other financial institutions		84,747			69	.33			116,553			87	.30
Federal funds sold and other
short-term investments		96,972			28	.12			105,956			42	.16
Total earning assets		1,165,993			12,065	4.20			1,193,752			12,940	4.36
Non-earning assets
Cash and due from banks		12,350							12,224
Premise and equipment, net		11,535							9,539
Bank-owned life insurance		14,959							14,426
Goodwill and other
intangibles		15,288							13,187
Other assets		107,142							95,990
Allowance for loan losses		(12,058	)						(12,964	)
Total assets	$	1,315,209						$	1,326,154
Liabilities and Shareholders’ Equity1
Interest-bearing liabilities
Interest-bearing demand
deposits	$	274,445		$	411	.61	%	$	254,042		$	444	.70	%
Savings deposits		18,630			29	.63			22,566			39	.70
Time deposits >= $100		34,903			95	1.10			43,868			137	1.26
Other time deposits		77,010			152	.80			82,383			218	1.06
Total interest-bearing deposits		404,988			687	.69			402,859			838	.84
Non-interest bearing liabilities
Demand deposits		136,078							137,034
Accounts and drafts payable		575,381							608,482
Other liabilities		24,734							16,027
Total liabilities		1,141,181							1,164,402
Shareholders’ equity		174,028							161,752
Total liabilities and
shareholders’ equity	$	1,315,209						$	1,326,154
Net interest income				$	11,378						$	12,102
Net interest margin						3.96	%						4.08	%
Interest spread						3.51							3.52

____________________

1.	Balances shown are daily averages.
2.	For purposes of these computations, nonaccrual loans are included in the average loan amounts outstanding. Interest on nonaccrual loans is recorded when received as discussed further in Note 1 to the Company's 2012 consolidated financial statements, filed with the Company’s 2012 Annual Report on Form 10-K.
3.	Interest income on loans includes net loan fees of $65,000 and $70,000 for the First Quarter of 2013 and 2012, respectively.
4.	Interest income is presented on a tax-equivalent basis assuming a tax rate of 35%. The tax-equivalent adjustment was approximately $1,209,000 and $1,351,000 for the First Quarter of 2013 and 2012, respectively.
5.	For purposes of these computations, yields on investment securities are computed as interest income divided by the average amortized cost of the investments.

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Analysis of Net Interest Income Changes

The following tables present the changes in interest income and expense between periods due to changes in volume and interest rates. That portion of the change in interest attributable to the combined rate/volume variance has been allocated to rate and volume changes in proportion to the absolute dollar amounts of the change in each.

	First Quarter of 2013 Over
	First Quarter of 2012
(In thousands)	Volume			Rate			Total
Increase (decrease) in interest income:
Loans1, 2:
Taxable	$	(2	)	$	(523	)	$	(525	)
Tax-exempt3		—			—			—
Investment securities:
Taxable		—			(5	)		(5	)
Tax-exempt3		117			(436	)		(319	)
Certificates of deposit		5			1			6
Interest-bearing deposits in other financial institutions		(26	)		8			(18	)
Federal funds sold and other short-term investments		(3	)		(11	)		(14	)
Total interest income		91			(966	)		(875	)
Interest expense on:
Interest-bearing demand deposits		32			(65	)		(33	)
Savings deposits		(7	)		(3	)		(10	)
Time deposits of >=$100		(26	)		(16	)		(42	)
Other time deposits		(14	)		(52	)		(66	)
Total interest expense		(15	)		(136	)		(151	)
Net interest income	$	106		$	(830	)	$	(724	)

____________________
 

1.	Average balances include nonaccrual loans.
2.	Interest income includes net loan fees.
3.	Interest income is presented on a tax-equivalent basis assuming a tax rate of 35%.

Provision and Allowance for Loan Losses

A significant determinant of the Company's operating results is the provision for loan losses. Provision for loan losses during both the First Quarter of 2013 and the First Quarter of 2012, was $200,000. As discussed below, the Company continually analyzes the outstanding loan portfolio based on the performance, financial condition and collateralization of the credits. There were net loan charge-offs of $1,525,000 in the First Quarter of 2013, compared to $207,000 for the same period in 2012.

The allowance for loan losses at March 31, 2013 was $11,032,000 and at December 31, 2012 was $12,357,000. The ratio of allowance for loan losses to total loans outstanding at March 31, 2013 was 1.62% compared to 1.80% at December 31, 2012. Nonperforming loans were $908,000, or ..13%, of total loans at March 31, 2013 compared to $6,572,000, or .96%, of total loans at December 31, 2012. These loans, which are also considered impaired, consisted of five nonaccrual loans at March 31, 2013. Total nonaccrual loans decreased $6,721,000 from March 31, 2013 to March 31, 2013, primarily due to the payment of $4,884,000 received on one loan.

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In addition to the loans discussed above, at March 31, 2013, loans totaling $14,831,000 not included in the table below were identified by management as subject to special monitoring. These loans possess some credit deficiency or potential weakness which requires a high level of management attention.

The allowance for loan losses has been established and is maintained to absorb probable losses in the loan portfolio. An ongoing assessment of risk of loss is performed to determine if the current balance of the allowance is adequate to cover probable losses in the portfolio. A charge or credit is made to expense to cover any deficiency or reduce any excess. The current methodology employed to determine the appropriate allowance consists of two components, specific and general. The Company develops specific allowances on commercial, commercial real estate, and construction loans based on individual review of these loans and an estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and collection options available. The general component relates to all other loans, which are evaluated based on loan grade. The loan grade assigned to each loan is typically evaluated on an annual basis, unless circumstances require interim evaluation. The Company assigns an allowance amount consistent with each loan's rating category. The allowance amount is based on derived loss experience over prescribed periods. In addition to the amounts derived from the loan grades, a portion is added to the general allowance to take into account other factors including national and local economic conditions; downturns in specific industries including loss in collateral value; trends in credit quality at the Company and in the banking industry; and trends in risk rating changes. As part of their examination process, federal and state agencies review the Company's methodology for maintaining the allowance for loan losses and the related balance. These agencies may require the Company to increase the allowance for loan losses based on their judgments and interpretations about information available to them at the time of their examination.

Summary of Asset Quality

The following table presents information on the Company's provision for loan losses and analysis of the allowance for loan losses:

	First Quarter of
(Dollars in thousands)	2013			2012
Allowance at beginning of period	$	12,357		$	12,954
Provision charged to expense		200			200
Loans charged off		(1,529	)		(254	)
Recoveries on loans previously charged off		4			47
Net loans charged off		(1,525	)		(207	)
Allowance at end of period	$	11,032		$	12,947
Loans outstanding:
Average	$	677,677		$	677,890
March 31		679,890			690,357
Ratio of allowance for loan losses to loans outstanding:
Average		1.63	%		1.91	%
March 31		1.62			1.88
Impaired loans:
Nonaccrual loans	$	908		$	7,629
Loans past due 90 days or more		—			—
Troubled debt restructurings		—			—
Total impaired loans	$	908		$	7,629
Foreclosed assets		1,322			1,689
Impaired loans as percentage of average loans		.13	%		1.13	%

The Bank had two properties carried as other real estate owned of $1,322,000 as of March 31, 2013 and two properties carried as other real estate owned of $1,689,000 as of March 31, 2012.

Operating Expenses

Total operating expenses for the First Quarter of 2013 were up less than 1%, or $48,000, compared to the First Quarter of 2012, primarily due to increased payroll costs offset by a decrease in outside services.

Salaries and benefits expense for the First Quarter of 2013 increased $697,000 to $16,258,000 compared to the First Quarter of 2012 due to higher payroll and pension expense.

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Occupancy expense for the First Quarter of 2013 increased $77,000 to $609,000 from the First Quarter of 2012 due to increased rent associated with additional leased space.

Equipment expense for the First Quarter of 2013 increased $45,000, or 5.2%, compared to the First Quarter of 2012 due to increased depreciation expenses.

Amortization of intangible assets increased $8,000 for the First Quarter of 2013 as compared to the prior year period.

Other operating expenses for the First Quarter of 2013 decreased $779,000, or 24.0%, compared to the First Quarter of 2012. The majority of the decrease was in legal expenses.

Income tax expense for the First Quarter of 2013 decreased $172,000, or 7.9%, compared to the First Quarter of 2012. The effective tax rate was 25% and 27% for the First Quarters of 2013 and 2012, respectively, primarily due to reductions in state income taxes.

Financial Condition

Total assets at March 31, 2013 were $1,280,279,000 a decrease of $7,108,000, or 0.5%, from December 31, 2012. The most significant changes in asset balances during this period were a decrease of $34,428,000 in securities available for sale and a decrease of $19,140,000 in interest-bearing deposits in other financial institutions. Changes in cash and cash equivalents reflect the Company’s daily liquidity position and are affected by the changes in the other asset balances and changes in deposit and accounts and drafts payable balances.

Total liabilities at March 31, 2013 were $1,103,893,000, a decrease of $9,479,000, or 0.9%, from December 31, 2012. Total deposits at March 31, 2013 were $536,346,000, a decrease of $27,362,000, or 4.9%, from December 31, 2012. Accounts and drafts payable at March 31, 2013 were $542,528,000, an increase of $19,767,000, or 3.8%, from December 31, 2012. Total shareholders’ equity at March 31, 2013 was $176,386,000, a $2,371,000, or 1.4%, increase from December 31, 2012.

Accounts and drafts payable will fluctuate from period-end to period-end due to the payment processing cycle, which results in lower balances on days when checks clear and higher balances on days when checks are issued. For this reason, average balances are a more meaningful measure of accounts and drafts payable (for average balances refer to the tables under the “Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rate and Interest Differential” section of this report).

The increase in total shareholders’ equity of $2,371,000 resulted from net income of $6,032,000, stock-based compensation expense of $421,000, $1,808,000 in other comprehensive income, dividends paid of $2,066,000 and $208,000 for net distribution of stock awards.

Liquidity and Capital Resources

The balance of liquid assets consists of cash and cash equivalents, which include cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold and money market funds, and was $166,367,000 at March 31, 2013, an increase of $25,279,000 or 17.9%, from December 31, 2012. At March 31, 2013, these assets represented 13.0% of total assets. These funds are the Company’s and its subsidiaries’ primary source of liquidity to meet future expected and unexpected loan demand, depositor withdrawals or reductions in accounts and drafts payable.

Secondary sources of liquidity include the investment portfolio and borrowing lines. Total investment in securities was $307,507,000 at March 31, 2013, a decrease of $34,428,000 from December 31, 2012. These assets represented 24.0% of total assets at March 31, 2013. Of this total, 98% were state and political subdivision securities. Of the total portfolio, 5.8% mature in one year, 25.0% mature in one to five years, and 69.2% mature in five or more years.

The Bank has unsecured lines of credit at correspondent banks to purchase federal funds up to a maximum of $88,000,000 at the following banks: Bank of America, $20,000,000; US Bank, $20,000,000; Wells Fargo Bank, $15,000,000; Frost National Bank, $10,000,000; PNC Bank, $12,000,000; UMB Bank, $5,000,000; and JPM Chase Bank, $6,000,000. The Bank also had secured lines of credit with the Federal Home Loan Bank of $158,268,000 collateralized by commercial mortgage loans. The Company also has a secured line of credit of $50,000,000 with UMB Bank. There were no amounts outstanding under any line of credit as of March 31, 2013 or December 31, 2012.

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The deposits of the Company's banking subsidiary have historically been stable, consisting of a sizable volume of core deposits related to customers that utilize other commercial products of the Bank. The accounts and drafts payable generated by the Company has also historically been a stable source of funds. The Company is part of the Certificate of Deposit Account Registry Service (“CDARS”). Time deposits include $77,021,000 of CDARS deposits which offer the Bank’s customers the ability to maximize Federal Deposit Insurance Corporation (“FDIC”) insurance coverage. The Company uses this program to retain or attract deposits from existing customers.

Net cash flows provided by operating activities were $4,405,000 for the three months ended March 31, 2013, compared with $9,810,000 for the three months ended March 31, 2012, a decrease of $5,405,000. Net cash flows from investing and financing activities fluctuate greatly as the Company actively manages its investment and loan portfolios and customer activity influences changes in deposit and accounts and drafts payable balances. Other causes for the changes in these account balances are discussed earlier in this report. Due to the daily fluctuations in these account balances, the analysis of changes in average balances, also discussed earlier in this report, can be more indicative of underlying activity than the period-end balances used in the statements of cash flows. Management anticipates that cash and cash equivalents, maturing investments and cash from operations will continue to be sufficient to fund the Company’s operations and capital expenditures in 2013, which are estimated to be less than $6,000,000.

The Company faces market risk to the extent that its net interest income and fair market value of equity are affected by changes in market interest rates. For information regarding the market risk of the Company’s financial instruments, see Item 3, “Quantitative and Qualitative Disclosures about Market Risk.”

There are several trends and uncertainties that may impact the Company’s ability to generate revenues and income at the levels that it has in the past. In addition, these trends and uncertainties may impact available liquidity. Those that could significantly impact the Company include the general levels of interest rates, business activity, and energy costs as well as new business opportunities available to the Company.

As a financial institution, a significant source of the Company’s earnings is generated from net interest income. Therefore, the prevailing interest rate environment is important to the Company’s performance. A major portion of the Company’s funding sources are the non-interest bearing accounts and drafts payable generated from its payment and information processing services. Accordingly, higher levels of interest rates will generally allow the Company to earn more net interest income. Conversely, a lower interest rate environment will generally tend to depress net interest income. The Company actively manages its balance sheet in an effort to maximize net interest income as the interest rate environment changes. This balance sheet management impacts the mix of earning assets maintained by the Company at any point in time. For example, in the lower interest rate environment currently faced by the Company, short-term, relatively lower rate liquid investments are reduced in favor of longer-term relatively higher yielding investments and loans.

The overall level of economic activity can have a significant impact on the Company’s ability to generate revenues and income, as the volume and size of customer invoices processed may increase or decrease. Higher levels of economic activity increase both fee income (as more invoices are processed) and balances of accounts and drafts payable.

The relative level of energy costs can impact the Company’s earnings and available liquidity. Higher levels of energy costs will tend to increase transportation and utility invoice amounts resulting in a corresponding increase in accounts and drafts payable. Increases in accounts and drafts payable generate higher interest income and improve liquidity.

New business opportunities are an important component of the Company’s strategy to grow earnings and improve performance. Generating new customers allows the Company to leverage existing systems and facilities and grow revenues faster than expenses.

Risk-based capital guidelines require the Company to meet a minimum total capital ratio of 8.0%, of which at least 4.0% must consist of Tier 1 capital. Tier 1 capital generally consists of (a) common shareholders' equity (excluding the unrealized market value adjustments on the available-for-sale securities), (b) qualifying perpetual preferred stock and related surplus subject to certain limitations specified by the FDIC, (c) minority interests in the equity accounts of consolidated subsidiaries less (d) goodwill, (e) mortgage servicing rights within certain limits, and (f) any other intangible assets and investments in subsidiaries that the FDIC determines should be deducted from Tier 1 capital.

-24-

The FDIC also requires a minimum leverage ratio of 3.0%, defined as the ratio of Tier 1 capital less purchased mortgage servicing rights to total assets, for banking organizations deemed the strongest and most highly rated by banking regulators. A higher minimum leverage ratio is required of less highly-rated banking organizations. Total capital, a measure of capital adequacy, includes Tier 1 capital, allowance for loan losses, and debt considered equity for regulatory capital purposes.

The Company and the Bank continue to exceed all regulatory capital requirements, as evidenced by the following capital amounts and ratios:

	March 31, 2013				December 31, 2012
(Dollars in thousands)	Amount		Ratio		Amount		Ratio
Total capital (to risk-weighted assets)
Cass Information Systems, Inc.	$	180,039	20.33	%	$	175,802	19.87	%
Cass Commercial Bank		77,339	14.18	%		75,300	13.41	%
Tier I capital (to risk-weighted assets)
Cass Information Systems, Inc.	$	169,007	19.08	%	$	164,729	18.62	%
Cass Commercial Bank		70,513	12.93	%		68,261	12.16	%
Tier I capital (to average assets)
Cass Information Systems, Inc.	$	169,007	13.00	%	$	164,729	12.26	%
Cass Commercial Bank		70,513	11.25	%		68,261	10.64	%

Inflation

The Company’s assets and liabilities are primarily monetary, consisting of cash, cash equivalents, securities, loans, payables and deposits. Monetary assets and liabilities are those that can be converted into a fixed number of dollars. The Company's consolidated balance sheet reflects a net positive monetary position (monetary assets exceed monetary liabilities). During periods of inflation, the holding of a net positive monetary position will result in an overall decline in the purchasing power of a company. Management believes that replacement costs of equipment, furniture, and leasehold improvements will not materially affect operations. The rate of inflation does affect certain expenses, such as those for employee compensation, which may not be readily recoverable in the price of the Company’s services.

Impact of New and Not Yet Adopted Accounting Pronouncements

None.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, the Company manages its interest rate risk through measurement techniques that include gap analysis and a simulation model. As part of the risk management process, asset/liability management policies are established and monitored by management. The policy objective is to limit the change in annualized net interest income to 15% from an immediate and sustained parallel change in interest rates of 200 basis points. Based on the Company's most recent evaluation, management does not believe the Company's risk position at March 31, 2013 has changed materially from that at December 31, 2012.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, under the supervision and with the participation of the principal executive officer and the principal financial officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report and concluded that, as of such date, these controls and procedures were effective.

There were no changes in the First Quarter of 2013 in the Company's internal control over financial reporting identified by the Company’s principal executive officer and principal financial officer in connection with their evaluation that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended).

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company has included in Part I, Item 3 of its Annual Report on Form 10-K for the year ended December 31, 2012 disclosure regarding certain legal proceedings. There were no material developments with regard to these disclosed proceedings during the three-month period ended March 31, 2013. All other legal proceedings and actions involving the Company are of an ordinary and routine nature and are incidental to the operations of the Company. Management believes the outcome of all proceedings will not have a material effect on the businesses or financial conditions of the Company or its subsidiaries.

ITEM 1A. RISK FACTORS

The Company has included in Part I, Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2012, a description of certain risks and uncertainties that could affect the Company’s business, future performance or financial condition (the “Risk Factors”). There are no material changes to the Risk Factors as disclosed in the Company’s 2012 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a)	None.
(b)	There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors implemented in the First Quarter of 2013.

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ITEM 6. EXHIBITS

Exhibit 10.1 Form of Restricted Stock Agreement.*

Exhibit 31.1 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 31.2 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 101.INS	XBRL Instance Document.
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document.
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

____________________

*Management contract or compensatory plan or arrangement.

-27-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CASS INFORMATION SYSTEMS, INC.
DATE: May 3, 2013	By	/s/ Eric H. Brunngraber
		Eric H. Brunngraber
		President and Chief Executive Officer
		(Principal Executive Officer)
DATE: May 3, 2013	By	/s/ P. Stephen Appelbaum
		P. Stephen Appelbaum
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

-28-

EX-10.1

Exhibit 10.1

CASS INFORMATION SYSTEMS, INC.
AMENDED AND RESTATED
OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN
RESTRICTED STOCK AGREEMENT

Participant Name: 

Date of Grant: 

Number of Shares of Restricted Stock subject to this Award: 

We are pleased to inform you that, as an employee or director of Cass Information Systems, Inc. (“Cass”) or one of its Subsidiaries, you are granted an Award of Shares of Restricted Stock under the Cass Information Systems, Inc. Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Plan”). The shares of Cass common stock granted pursuant to this Agreement are hereinafter called “Shares.” Each Share under this Award is composed of one share of Cass common stock, $0.50 par value per share. This Award is subject to your acceptance as provided in Section 1 below and the terms and conditions that follow in this Agreement.

The date of the Award evidenced by this Agreement (the “Date of Grant”) is set forth above.

The terms and conditions of this Award, including non-standard provisions permitted by the Plan, are set forth below.

1.Acceptance of Award. This Award is to be accepted by signing your name on the signature page of two copies of this Agreement and causing them to be delivered to the Secretary of Cass, 12444 Powerscourt Drive, Suite 550, St. Louis, MO 63131, before 4:30 p.m. Central time on the 30th day after the Date of Grant. If the Secretary does not receive your properly signed copies of this Agreement before the time and date specified in the previous sentence, then, despite anything else provided in this Agreement, this Award will be void as if it was never awarded to you and will be of no effect. Your signing and timely delivering the copies of this Agreement will evidence your acceptance on the terms and conditions stated in this Agreement.

2.Issuance of Restricted Stock.

(a)

Subject to the provisions of this Agreement and except as any of the Shares may be issued in book entry form, Cass shall issue and register on its books and records in your name a certificate (certificates) evidencing the number of Shares subject to this Award as set forth above. Each certificate shall bear a legend, substantially in the following form:

“THE SALE OR OTHER TRANSFER OF THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY, OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE CASS INFORMATION SYSTEMS, INC. AMENDED AND RESTATED OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN AND IN THE RESTRICTED STOCK AGREEMENT. A COPY OF THE PLAN AND SUCH RESTRICTED STOCK AGREEMENT MAY BE OBTAINED FROM THE SECRETARY OF CASS INFORMATION SYSTEMS, INC.”

Exhibit 10.1

The certificate(s) shall be retained by Cass (or its designee) until the time that all restrictions or conditions applicable to the Shares have been satisfied or lapsed. You agree to (i) deliver to Cass, as a precondition to the issuance of any certificate or certificates with respect to Unvested Shares, one or more stock powers, endorsed in blank, with respect to such Shares, (ii) sign such other powers, take such other actions as Cass may reasonably request to accomplish the transfer or forfeiture of any Unvested Shares that are forfeited under this Agreement and (iii) authorize Cass to cause such Unvested Shares to be cancelled or transferred in the event they are forfeited pursuant to this Agreement. As used in this Agreement, “Unvested Shares” means Shares which are subject to forfeiture under this Agreement.

(b)

If Unvested Shares are held in book entry form, Subsection 2(a) shall not be applicable and you agree that Cass may give stop transfer instructions to the depository of such Shares to ensure compliance with the provisions of this Agreement. You hereby (i) acknowledge that the Unvested Shares may be held in book entry form on the books of Cass’s depository (or another institution specified by Cass), (ii) irrevocably authorize Cass to take such actions as may be necessary or appropriate to effect a transfer or cancellation of the record ownership of any such Unvested Shares that are forfeited in accordance with this Agreement, (iii) agree to take such other actions as Cass may reasonably request to accomplish the forfeiture of any Unvested Shares that are forfeited under this Agreement, and (iv) authorize Cass to cause such Shares to be cancelled or transferred in the event they are forfeited pursuant to this Agreement.

3.Restrictions. In association with the other terms of this Agreement and in accordance with the Plan, the Shares shall be subject to the following restrictions:

(a)

Neither (i) the Shares or any interest in them, (ii) the right to vote the Shares, (iii) the right to receive dividends on the Shares, or (iv) any other rights under this Agreement may be sold, transferred, donated, exchanged, pledged, hypothecated, assigned, or otherwise transferred, alienated or encumbered, by operation of law or otherwise, until (and then only to the extent of) the Shares are delivered to you or, in the event of your death, your Designated Beneficiary or Beneficiaries or testamentary transferee or transferees.

(b)

You shall have, with respect to the Shares, all of the rights of a holder of Shares, including the right to vote such Shares and to earn any cash dividends thereon, except as otherwise provided in the Plan. Additional Shares of Cass common stock resulting from adjustments under Section XII of the Plan with respect to Shares subject to this Agreement shall be treated as additional Shares subject to the same restrictions and other terms of this Award and you shall comply with the provisions of Sections 2(a) or (b), as appropriate, with respect to such additional Shares. Cash dividends paid on Unvested Shares are taxable to you as compensation income, and not dividend income, and are deductible by Cass or its Subsidiaries for income tax purposes as compensation income. Such dividends may be paid to you at the time they are paid to other holders of shares of Cass Common Stock or may be retained by Cass and payable subject to fulfillment of the terms and conditions of this Agreement.

2

Exhibit 10.1

(c)

During your lifetime, Shares shall only be delivered to you. Any Shares transferred in accordance with this Agreement shall continue to be subject to the terms and conditions of this Agreement. Any transfer permitted under this Agreement shall be promptly reported in writing to Cass’s Secretary.

(d)

You may designate a beneficiary or beneficiaries (“Designated Beneficiary or Beneficiaries”) on the Designated Beneficiary form attached to this Agreement to receive Shares which vest on your death. If you do not complete the Beneficiary Designation form or if, after your death, your Designated Beneficiary or Beneficiaries has or have died or cannot be located, Shares which become vested on your death shall be transferred in accordance with your will or, if you have no will, in accordance with applicable state laws of descent and distribution.

4.Lapse of Restrictions and Delivery of Shares of Restricted Stock. Unless previously forfeited or transferred on account of your death, Total Disability or a Change in Control, the Restriction Period will lapse with respect to applicable Shares and Cass shall deliver the Shares subject to this Award to you, pursuant to the vesting schedule described on the Exhibit A attached to this Agreement.

Cass shall deliver the Shares to you by transferring certificates to you evidencing your ownership of the Shares without the legend provided by Section 2(a) but with any legend required by federal and state securities laws. The appropriate officers of Cass may, in their discretion, cause the Shares as described in this Section 4 to instead be held in book entry form in your name without the restrictions imposed by this Agreement.

5.Effect of Death, Total Disability or Change of Control. If you die while in the employment or service of Cass or its Subsidiaries, the Restriction Period will lapse with respect to all outstanding Shares and Cass shall deliver the Shares subject to this Award to your Designated Beneficiary or as provided in Section 3(d) if a Beneficiary has not been designated, has died or cannot be located. Subsequently, such Shares shall not be subject to forfeiture after your death. If you become Totally Disabled or a Change of Control occurs while you are employed by or in the service of Cass or its Subsidiaries, the Restriction Period will lapse with respect to all outstanding Shares and Cass shall deliver the Shares subject to this Award to you. Subsequently, such Shares shall not be subject to forfeiture after the occurrence of your Total Disability or a Change of Control. Shares transferred pursuant to this Section 5 shall be delivered in the same manner as provided in Section 4.

3

Exhibit 10.1

6.Effect of Other Causes of Termination of Employment.

(a)	If your employment or service with Cass or any of its Subsidiaries terminates prior to the lapse of restrictions on Shares in accordance with Section 4 other than by reason of your death, Total Disability or after a Change of Control, you shall forfeit all such Shares.
(b)	For the purposes of this Agreement, your employment or service by a Subsidiary of Cass shall be considered terminated on the date that the company for which you are employed or serve is no longer a Subsidiary of Cass.
(c)	Notwithstanding anything in this Agreement to the contrary, no Shares shall be delivered to you under this Agreement if your employment or service with Cass or a Subsidiary is Terminated for Cause including Termination for Cause.

7.Transfer of Employment; Leave of Absence. A transfer of your employment from Cass to a Subsidiary or vice versa, or from one Subsidiary to another, without an intervening period, shall not be deemed a termination of employment. If you are granted an authorized leave of absence, you shall be deemed to have remained in the employ or service of the company by which you are employed or of which you serve as a director during such leave of absence.

8.Tax Matters.

(a)

Federal Income tax withholding (and state and local income tax withholding, if applicable) may be required with respect to the taxation of income realized when restrictions are removed from the Shares or in the event you make the election described in Section 20. You agree to deliver to Cass only the amounts the Committee determines should be withheld, provided, however, that you may pay a portion or all of such withholding taxes by electing to have (i) Cass withhold a portion of the Shares that would otherwise be delivered to you or (ii) you can deliver to Cass Shares that you have owned for at least six months, in either case, having a Fair Market Value (as of the date that the amount of taxes is to be withheld) in the sum of the amount to be withheld plus reasonable expenses of selling such Shares, and provided further that your election shall be irrevocable and subject to the approval of the Committee.

(b)

You should consult with your tax advisor regarding the tax consequences of receiving shares and making the election described in Section 20.

9.Employment and Service. Nothing contained in this Agreement or the Plan shall confer any right to continue in the employ or other service of Cass or any of its Subsidiaries or limit in any way the right of Cass or a Subsidiary to change your compensation or other benefits or to terminate your employment or other service with or without Cause.

10.Listing: Securities Considerations. Despite anything else in this Agreement, if at any time the Board determines, in its sole discretion, the listing, registration or qualification (or an updating of any such document) of the Shares issuable under this Agreement is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the issuance of the Shares, or the removal of any restrictions imposed on such Shares, such Shares shall not be issued, in whole or in part, or the restrictions on the Shares removed, unless such listing, registration, qualifications, consent or approval shall have been effected or obtained free of any conditions not acceptable to Cass.

4

Exhibit 10.1

11.Clawback Policy. Notwithstanding any provision to the contrary, in the event Cass materially restates its financial statements, the result of which is that the Award described herein would have been lesser if calculated based on restated results, the Compensation Committee shall have the discretion to rescind, revoke, adjust or otherwise modify the Award. Such action will be taken consistent with the Compensation Committee’s governing Clawback Policy, a copy of which is available from the Secretary of Cass upon request.

12.Binding Effect. This Agreement shall inure to the benefit of and be binding on the parties to this Agreement and their respective heirs, executors, administrators, legal representatives and successors. Without limiting the generality of the foregoing, whenever the term “you” is used in any provision of this Agreement under circumstances where the provision appropriately applies to the heirs, executors, administrators, or legal representatives to whom Shares may be transferred by the Beneficiary Designation, will or the laws of descent and distribution, the term “you” shall be deemed to include such person or persons.

13.Plan Provisions Govern.

(a)	This Award is subject to the terms, conditions, restrictions and other provisions of the Plan as if all those provisions were set forth in their entirety in this Agreement. If any provision of this Agreement conflicts with a provision of the Plan, the Plan provision shall control.
(b)	You acknowledge that a copy of the Plan and a prospectus summarizing the Plan was distributed or made available to you and that you were advised to review that material before entering into this Agreement. You waive the right to claim that the provisions of the Plan are not binding on you and your heirs, executors, administrators, legal representatives and successors.
(c)	Capitalized terms used but not defined in this Agreement have the meanings given those terms in the Plan.
(d)	By your signature below, you represent that you are familiar with the terms and provisions of the Plan, and hereby accept this Agreement subject to all of the terms and provisions of the Plan. You have reviewed the Plan and this Agreement in their entirety and fully understand all provisions of the Plan and this Agreement. You agree to accept as binding, conclusive and final all decisions or interpretations of the Committee on any questions arising under the Plan or this Agreement.

14.Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Missouri despite any laws of that state that would apply the laws of a different state. In the event of litigation arising in connection with this Agreement and/or the Plan, the parties hereto agree to submit to the jurisdiction of state and Federal courts located in Missouri.

5

Exhibit 10.1

15.Severability. If any term or provision of this Agreement, or the application of this Agreement to any person or circumstance, shall at any time or to any extent be invalid, illegal or unenforceable in any respect as written, both parties intend for any court construing this Agreement to modify or limit that provision so as to render it valid and enforceable to the fullest extent allowed by law. Any provision that is not susceptible of reformation shall be ignored so as to not affect any other term or provision of this Agreement, and the remainder of this Agreement, or the application of that term or provision to persons of circumstances other than those as to which it is held invalid, illegal or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

16.Entire Agreement; Modification. The Plan and this Agreement contain the entire agreement between the parties with respect to the subject matter contained in this Agreement and it may not be modified, except as provided in the Plan, as it may be amended from time to time in the manner provided in the Plan, or in this Agreement, as it may be amended from time to time by a written document signed by each of the parties to this Agreement. Any oral or written agreements, representations, warranties, written inducements, or other communications with respect to the subject matter contained in this Agreement made before the signing of this Agreement shall be void and ineffective for all purposes.

17.Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same Agreement.

18.Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

19.Notices; Electronic Delivery. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally; mailed by certified or registered mail, return receipt requested and postage prepaid; delivered by a nationally recognized overnight delivery service or sent by facsimile and confirmed by first class mail, to the recipient. Such notices, demands and other communications shall be sent to the parties at the addresses indicated below:

(a)	If to you:
(b)	If to the Company:	Secretary
		Cass Information Systems, Inc.
		12444 Powerscourt Drive, Suite 550
		St. Louis, Missouri 63131

6

Exhibit 10.1

or to such other address or to the attention of such other party as the recipient party has specified by prior written notice to the sending party. You agree during the term of this Agreement to keep Cass informed of your current mailing address and of receiving written notice from Cass in accordance with this Section 19. In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic delivery of any documents that may be required to be delivered to you (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award made or offered by Cass. Electronic delivery may be via electronic mail system or by reference to a location on a Cass intranet to which you have access. You hereby consent to any and all procedures Cass has established or may establish for an electronic signature system for delivery and acceptance of any such documents that may be required to be delivered to you, and agree that your electronic signature is the same as, and shall have the same force and effect as, your manual signature.

20.Section 83(b) Election. In the event you make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to Shares, the parties hereto shall cooperate to insure such election is effective.

21.Authority to Receive Payments. Any amount payable to or for the benefit of a minor, an incompetent person or other person incapable of receiving such payment shall be deemed paid when paid to the conservator of such person’s estate or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge Cass and Members of the Committee and the Board with respect thereto.

In Witness Whereof, the parties have caused this Agreement to be signed and delivered as of the day and year first above written.

CASS INFORMATION SYSTEMS, INC.	PARTICIPANT
Signature	Signature
By:	Date:
Title:
Date:

7

Exhibit 10.1

CASS INFORMATION SYSTEMS, INC.
AMENDED AND RESTATED
OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN
RESTRICTED STOCK AGREEMENT
BENEFICIARY DESIGNATION

To the Secretary of Cass Information Systems, Inc. (“Cass”)

Pursuant to the provisions of the Cass Information Systems, Inc. Amended and Restated Omnibus Stock and Performance Compensation Plan (“Plan”), permitting the designation of a Beneficiary or Beneficiaries by a Participant, I hereby designate the following person, persons or trust as Primary and Secondary Designated Beneficiaries of my benefits under the Plan and the Cass Information Systems, Inc. Amended and Restated Omnibus Stock and Performance Compensation Plan Restricted Stock Agreement (“Agreement”) between Cass and me dated __________, 20____ payable by reason of my death:

Primary Beneficiary [include address and relationship]:

Secondary Beneficiary [include address and relationship]:

I RESERVE THE RIGHT TO REVOKE OR CHANGE ANY BENEFICIARY DESIGNATION. I HEREBY REVOKE ALL PRIOR DESIGNATIONS (IF ANY) OF PRIMARY BENEFICIARIES AND SECONDARY BENEFICIARIES.

Cass shall cause all Shares of Cass stock to be transferred by reason of my death pursuant to the Agreement to the Primary Beneficiary, if he, she or it survives me, and if no Primary Designated Beneficiary shall survive me, then to my Secondary Designated Beneficiary, and if no named Designated Beneficiary survives me, then all Shares shall be transferred in accordance with the terms of the Agreement.

Date of this Designation Signature of Participant

NOTE: Unless the Participant provides otherwise in completing this Beneficiary Designation, Cass shall transfer all Shares of Cass stock to be transferred to more than one Designated Beneficiary equally to the living Designated Beneficiaries.

*     *     *     *     *

This Beneficiary Designation was received on behalf of Cass this _____day of ____________, 20____.

By:

Title:  

Exhibit 10.1

CASS INFORMATION SYSTEMS, INC.
AMENDED AND RESTATED
OMNIBUS STOCK AND PERFORMANCE COMPENSATION PLAN

EXHIBIT A

As described in Section 4 of this Agreement, the vesting schedule applicable to the Shares subject to this Agreement shall be as follows:

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Eric H. Brunngraber, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Cass Information Systems, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2013
	/s/ Eric H. Brunngraber
	Eric H. Brunngraber
	President and Chief Executive
	Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, P. Stephen Appelbaum, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Cass Information Systems, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2013
	/s/ P. Stephen Appelbaum
	P. Stephen Appelbaum
	Executive Vice President and Chief
	Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cass Information Systems, Inc. (“the Company”) on Form 10-Q for the period ended March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric H. Brunngraber, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

     /s/ Eric H. Brunngraber

Eric H. Brunngraber

President and Chief Executive Officer

(Principal Executive Officer)

May 3, 2013

A signed original of this written statement required by Section 906 has been provided to Cass Information Systems, Inc. and will be retained by Cass Information Systems, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cass Information Systems, Inc. (“the Company”) on Form 10-Q for the period ended March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, P. Stephen Appelbaum, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

     /s/ P. Stephen Appelbaum

P. Stephen Appelbaum

Executive Vice President and Chief

Financial Officer

(Principal Financial and Accounting Officer)

May 3, 2013

A signed original of this written statement required by Section 906 has been provided to Cass Information Systems, Inc. and will be retained by Cass Information Systems, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Loans by Type (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Impaired Financing Receivable, Recorded Investment	$ 908	$ 6,572
Impaired Financing Receivable, Unpaid Principal Balance	908	6,572
Impaired Financing Receivable, Related Allowance for Loan Losses	296	1,404
Commercial and Industrial Nonaccrual Financing Receivable [Member]
Impaired Financing Receivable, Recorded Investment	136	1,439
Impaired Financing Receivable, Unpaid Principal Balance	136	1,439
Impaired Financing Receivable, Related Allowance for Loan Losses	68	657
Commercial and Industrial Troubled Debt Restructurings Continuing To Accrue Interest Financing Receivable [Member]
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Impaired Financing Receivable, Related Allowance for Loan Losses	0	0
Real Estate Mortgage Nonaccrual Financing Receivable [Member]
Impaired Financing Receivable, Recorded Investment	604	4,959	[1]
Impaired Financing Receivable, Unpaid Principal Balance	604	4,959	[1]
Impaired Financing Receivable, Related Allowance for Loan Losses	144	660	[1]
Real Estate Mortgage Past Due 90 Days Or More and Still Accruing [Member]
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Impaired Financing Receivable, Related Allowance for Loan Losses	0	0
Real Estate Mortgage Troubled Debt Restructurings Continuing To Accrue Interest Financing Receivable [Member]
Impaired Financing Receivable, Recorded Investment	0	0
Impaired Financing Receivable, Unpaid Principal Balance	0	0
Impaired Financing Receivable, Related Allowance for Loan Losses	0	0
Real Estate Nonaccrual Church - Mortgage [Member]
Impaired Financing Receivable, Recorded Investment	168	174
Impaired Financing Receivable, Unpaid Principal Balance	168	174
Impaired Financing Receivable, Related Allowance for Loan Losses	$ 84	$ 87

[1] In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

XML

Investment in Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Estimated fair value, less than 12 months	$ 28,048	$ 19,758
Unrealized losses, less than 12 months	203	112
Estimated fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Estimated fair value, total	28,048	19,758
Unrealized losses, total	203	112
Us States and Political Subdivisions Debt Securities [Member]
Estimated fair value, less than 12 months	28,408	19,758
Unrealized losses, less than 12 months	203	112
Estimated fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Estimated fair value, total	28,048	19,758
Unrealized losses, total	203	112
Certificates Of Deposit [Member]
Estimated fair value, less than 12 months	0	0
Unrealized losses, less than 12 months	0	0
Estimated fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Estimated fair value, total	0	0
Unrealized losses, total	$ 0	$ 0

XML

Stock-Based Compensation (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,065,000
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 1,753,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 3 months 18 days
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period (in shares)	21,804
Stock Appreciation Rights (Sars) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 1,555,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	10 years
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period (in shares)	85,943

XML

Investment in Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Amortized Cost, Due in 1 year or less	$ 16,816
Amortized Cost, Due after 1 year through 5 years	72,535
Amortized Cost, Due after 5 years through 10 years	148,171
Amortized Cost, Due after 10 years	52,845
Amortized Cost, Total	290,367
Fair Value, Due in 1 year or less	17,039
Fair Value, Due after 1 year through 5 years	77,867
Fair Value, Due after 5 years through 10 years	155,920
Fair Value, Due after 10 years	56,681
Fair Value, Total	$ 307,507	$ 341,935

XML

Stock-Based Compensation (Details 2) (Stock Appreciation Rights (Sars) [Member], USD $)	3 Months Ended
	Mar. 31, 2013
Stock Appreciation Rights (Sars) [Member]
Non-vested, beginning	161,294
Granted (in shares)	85,943
Vested, (in shares)	(70,109)
Non-vested, ending	177,128
Balance, fair value beginning (in dollars per share)	$ 31.7
Granted, fair value (in dollars per share)	$ 42.14
Vested, fair value (in dollars per share)	$ 30.85
Balance, fair value ending (in dollars per share)	$ 37.11

XML

Stock Repurchases (Details Textual)	Mar. 31, 2013
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	363,000
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	363,000

XML

Fair Value of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Cash and cash equivalents, Carrying Amount	$ 166,367	$ 141,088	$ 159,116	$ 235,962
Investment securities, Carrying Amount	307,507	341,935
Loans, net, Carrying Amount	668,858	675,376
Accrued interest receivable, Carrying Amount	5,664	6,276
Assets, Carrying Amount	1,148,396	1,164,675
Cash and cash equivalents, Fair Value	166,367	141,088
Investment securities, Fair Value	307,507	341,935
Loans, net, Fair Value	669,565	676,675
Accrued interest receivable, Fair Value	5,664	6,276
Assets, Fair Value	1,149,103	1,165,974
Deposits	536,346	563,708
Accounts and drafts payable	542,528	522,761
Accrued interest payable, Carrying Amount	129	112
Liabilities, Carrying Amount	1,079,003	1,086,581
Deposits, Fair Value	536,768	564,189
Accounts and drafts payable, Fair Value	542,528	522,761
Accrued interest payable, Fair Value	129	112
Liabilities, Fair Value	$ 1,079,425	$ 1,087,062

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

Following is a summary of the activity of the restricted stock:

	Three Months Ended
	March 31, 2013
	Shares		Fair Value
Balance at December 31, 2012	54,875		$	31.61
Granted	21,804		$	42.14
Vested	(18,959	)	$	30.68
Balance at March 31, 2013	57,720		$	35.90

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2013:

			Weighted-		Average	Aggregate
			Average		Remaining	Intrinsic
			Exercise		Contractual	Value
	Shares		Price		Term Years	(In thousands)
Outstanding at December 31, 2012	351,881		$	27.52	7.34	$	4,988
Granted	85,943		$	42.14
Exercised	(3,192	)	$	29.66
Outstanding at March 31, 2013	434,632		$	30.40	7.60	$	5,061
Exercisable at March 31, 2013	257,504		$	25.78	6.46	$	4,187

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

Following is a summary of the activity of the non-vested SARs during the three-month period ended March 31, 2013:

			Weighted-Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2012	161,294		$	31.70
Granted	85,943		$	42.14
Vested	(70,109	)	$	30.85
Non-vested at March 31, 2013	177,128		$	37.11

Schedule Of Per Share Fair Value Of Stock Appreciation Rights [Table Text Block]

Following is a summary of the activity of the non-vested SARs during the three-month period ended March 31, 2013:

			Weighted-Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2012	161,294		$	31.70
Granted	85,943		$	42.14
Vested	(70,109	)	$	30.85
Non-vested at March 31, 2013	177,128		$	37.11

Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity [Table Text Block]

The Company uses the Black-Scholes pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the per-share fair value of SARs granted:

	Three Months Ended March 31,
	2013		2012
Risk-free interest rate	1.29	%	1.38	%
Expected life	7 yrs.		7 yrs.
Expected volatility	28.72	%	29.39	%
Expected dividend yield	1.71	%	1.84	%

XML

Defined Pension Plans (Details 1) (Pension Plans, Defined Benefit [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Scenario, Forecast [Member]
Service cost - benefits earned during the year	$ 144
Interest cost on projected benefit obligation	335
Net amortization	551
Net periodic pension cost	1,030
Scenario, Actual [Member]
Service cost - benefits earned during the year	115
Interest cost on projected benefit obligation	307
Net amortization	360
Net periodic pension cost	$ 782

XML

Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013
Operating lease commitments, total	$ 7,926
Operating lease commitments, less than 1 year	1,236
Operating lease commitments, 1 to 3 years	1,997
Operating lease commitments, 3 to 5 years	1,589
Operating lease commitments, over 5 years	3,104
Time Deposits, total	109,177
Time Deposits, less than 1 year	91,230
Time Deposits, 1 to 3 years	17,149
Time Deposits, 3 to 5 years	798
Time Deposits, over 5 years	0
Commitment Total	117,103
Commitment less than 1 Year	92,466
Commitment, 1 to 3 Years	19,146
Commitment, 3 to 5 Years	2,387
Commitment, over 5 Years	$ 3,104

XML

Loans by Type (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Total	$ 679,890	$ 687,733
Performing Financing Receivable [Member]
Current	677,831	681,161
30-59 Days	1,151	0
60-89 Days	0	0
Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	908	6,572
Commercial and Industrial Financing Receivable [Member]
Total	179,021	160,862
Commercial and Industrial Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	178,885	159,423
30-59 Days	0	0
60-89 Days	0	0
Commercial and Industrial Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	136	1,439
Real Estate Mortgage Commercial Financing Receivable [Member]
Total	125,204	134,843
Real Estate Mortgage Commercial Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	124,600	129,884
30-59 Days	0	0
60-89 Days	0	0
Real Estate Mortgage Commercial Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	604	4,959
Commercial Real Estate Construction Financing Receivable [Member]
Total	6,836	7,025
Commercial Real Estate Construction Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	6,836	7,025
30-59 Days	0	0
60-89 Days	0	0
Commercial Real Estate Construction Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	0	0
Real Estate Mortgage Church Related Financing Receivable [Member]
Total	350,674	368,118
Real Estate Mortgage Church Related Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	349,355	367,944
30-59 Days	1,151	0
60-89 Days	0	0
Real Estate Mortgage Church Related Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	168	174
Real Estate Construction Church Related Financing Receivable [Member]
Total	17,994	16,450
Real Estate Construction Church Related Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	17,994	16,450
30-59 Days	0	0
60-89 Days	0	0
Real Estate Construction Church Related Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	0	0
Other Financing Receivable [Member]
Total	161	435
Other Financing Receivable [Member] | Performing Financing Receivable [Member]
Current	161	435
30-59 Days	0	0
60-89 Days	0	0
Other Financing Receivable [Member] | Nonperforming Financing Receivable [Member]
90 Days and over	0	0
Non Accrual	$ 0	$ 0

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Income Taxes (Details Textual) (USD $)			3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Scenario, Forecast [Member]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,439,000	$ 1,885,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	106,000	89,000
Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations Over 12 Months			538,000
Unrecognized Tax Benefits	$ 1,990,000	$ 1,357,000

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Stock-Based Compensation (Details 3) (Stock Appreciation Rights (Sars) [Member])	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stock Appreciation Rights (Sars) [Member]
Risk free interest rate	1.29%	1.38%
Expected life	7 years	7 years
Expected volatility	28.72%	29.39%
Expected dividend yield	1.71%	1.84%

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Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 3 – Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. There were no anti-dilutive shares in the three months ended March 31, 2013 and 2012. The calculations of basic and diluted earnings per share are as follows:

	Three Months Ended
	March 31,
(In thousands except share and per share data)	2013		2012
Basic
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Basic earnings per share	$	.53	$	.52
Diluted
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Effect of dilutive restricted stock, stock options and stock appreciation
rights		174,866		175,597
Weighted-average common shares outstanding assuming dilution		11,596,894		11,544,818
Diluted earnings per share	$	.52	$	.51

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Commitments and Contingencies (Details Textual) (USD $)	Mar. 31, 2013
Standby Letters Of Credit [Member]
Commitments and Contingencies	$ 11,856,000
Commercial Letters Of Credit [Member]
Commitments and Contingencies	3,866,000
Unused Lines Of Credit [Member]
Commitments and Contingencies	$ 11,919,000

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Basis of Presentation (Details Textual)	12 Months Ended
	Dec. 31, 2012
Common Stock Dividend Rate Percentage	10.00%

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Unrealized Loss on Investments [Table Text Block]

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments:

	March 31, 2013				December 31, 2012
	Carrying				Carrying
(In thousands)	Amount		Fair Value		Amount		Fair Value
Balance sheet assets:
Cash and cash equivalents	$	166,367	$	166,367	$	141,088	$	141,088
Investment securities		307,507		307,507		341,935		341,935
Loans, net		668,858		669,565		675,376		676,675
Accrued interest receivable		5,664		5,664		6,276		6,276
Total	$	1,148,396	$	1,149,103	$	1,164,675	$	1,165,974
Balance sheet liabilities:
Deposits	$	536,346	$	536,768	$	563,708	$	564,189
Accounts and drafts payable		542,528		542,528		522,761		522,761
Accrued interest payable		129		129		112	$	112
Total	$	1,079,003	$	1,079,425	$	1,086,581	$	1,087,062

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Investment in Securities (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Proceeds from sales of securities available-for-sale	$ 28,021	$ 14,659
Gains on sales of securities	1,453	966
Available-for-sale Securities Pledged as Collateral	$ 3,750,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	25		18
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Percentage	10.00%	5.00%

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Stock-Based Compensation (Details) (Restricted Stock [Member], USD $)	3 Months Ended
	Mar. 31, 2013
Restricted Stock [Member]
Balance, beginning (in shares)	54,875
Granted, (in shares)	21,804
Vested, (in shares)	(18,959)
Balance, ending (in shares)	57,720
Balance, fair value beginning (in dollars per share)	$ 31.61
Granted, fair value (in dollars per share)	$ 42.14
Vested, fair value (in dollars per share)	$ 30.68
Balance, fair value ending (in dollars per share)	$ 35.9

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Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Assets eligible for amortization:
Accumulated Amortization	$ (1,545)		$ (1,398)
Unamortized intangible assets:
Goodwill	11,817	[1]	11,817	[1]
Total intangible assets	16,745		16,745
Customer Lists [Member]
Assets eligible for amortization:
Gross Carrying Amount	3,933		3,933
Accumulated Amortization	(1,121)		(1,015)
Non-compete Agreements [Member]
Assets eligible for amortization:
Gross Carrying Amount	261		261
Accumulated Amortization	(66)		(53)
Software [Member]
Assets eligible for amortization:
Gross Carrying Amount	234		234
Accumulated Amortization	(98)		(78)
Other Intangible Assets [Member]
Assets eligible for amortization:
Gross Carrying Amount	500		500
Accumulated Amortization	(33)		(25)
Goodwill [Member]
Assets eligible for amortization:
Accumulated Amortization	$ (227)	[1]	$ (227)	[1]

[1] Amortization through December 31, 2001 prior to adoption of FASB ASC 350.

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Intangible Assets (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Amortization of intangible assets	$ 147	$ 139
Future Amortization Expense, Year One	535,000
Future Amortization Expense, Year Two	482,000
Future Amortization Expense, Year Three	404,000
Future Amortization Expense, Year Four	404,000
Future Amortization Expense, after Year Five	$ 352,000
Customer Lists [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
Customer Lists [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	7 years
Noncompete Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Software [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Other Intangible Assets [Member]
Finite-Lived Intangible Asset, Useful Life	15 years

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Intangible Assets

3 Months Ended

Mar. 31, 2013

Intangible Asset Description [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

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,” which requires that intangibles with indefinite useful lives be tested annually for impairment and those with finite useful lives be amortized over their useful lives.

Details of the Company’s intangible assets are as follows:

	March 31, 2013					December 31, 2012
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(In thousands)	Amount		Amortization			Amount		Amortization
Assets eligible for amortization:
Customer lists	$	3,933	$	(1,121	)	$	3,933	$	(1,015	)
Non-compete agreements		261		(66	)		261		(53	)
Software		234		(98	)		234		(78	)
Other		500		(33	)		500		(25	)
Unamortized intangible assets:
Goodwill1		11,817		(227	)		11,817		(227	)
Total intangible assets	$	16,745	$	(1,545	)	$	16,745	$	(1,398	)

____________________

¹Amortization through December 31, 2001 prior to adoption of FASB ASC 350.

The customer lists are amortized over seven and 10 years; the non-compete agreements over five years; software over three years and other intangible assets over 15 years. Amortization of intangible assets amounted to $147,000 and $139,000 for the three-month periods ended March 31, 2013 and 2012, respectively. Estimated future amortization of intangibles is as follows: $535,000 in 2013, $482,000 in 2014, $404,000 in 2015 and 2016 and $352,000 in 2017.

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Basic
Net Income	$ 6,032	$ 5,908
Weighted-average common shares outstanding (in shares)	11,422,028	11,369,221
Basic earnings per share (in dollars per share)	$ 0.53	$ 0.52
Diluted
Net Income	$ 6,032	$ 5,908
Weighted-average common shares outstanding (in shares)	11,422,028	11,369,221
Effect of dilutive restricted stock, stock options and stock appreciation rights (in shares)	174,866	175,597
Weighted-average common shares outstanding assuming dilution (in shares)	11,596,894	11,544,818
Diluted earnings per share (in dollars per share)	$ 0.52	$ 0.51

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Loans by Type (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Loans and Leases Receivable, Allowance, Beginning Balance	$ 12,357
Charge-Offs	1,529
Recoveries	4
Provision	200
Loans and Leases Receivable, Allowance, Ending Balance	11,032
Commercial and Industrial Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	3,192
Charge-Offs	1,296
Recoveries	2
Provision	724
Loans and Leases Receivable, Allowance, Ending Balance	2,622
Real Estate Mortgage Commercial Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	3,784
Charge-Offs	233
Recoveries	0
Provision	(379)
Loans and Leases Receivable, Allowance, Ending Balance	3,172
Commercial Real Estate Construction Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	137
Charge-Offs	0
Recoveries	0
Provision	(3)
Loans and Leases Receivable, Allowance, Ending Balance	134
Real Estate Mortgage Church Related Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	4,903
Charge-Offs	0
Recoveries	2
Provision	(124)
Loans and Leases Receivable, Allowance, Ending Balance	4,781
Real Estate Construction Church Related Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	333
Charge-Offs	0
Recoveries	0
Provision	(12)
Loans and Leases Receivable, Allowance, Ending Balance	321
Other Financing Receivable [Member]
Loans and Leases Receivable, Allowance, Beginning Balance	8
Charge-Offs	0
Recoveries	0
Provision	(6)
Loans and Leases Receivable, Allowance, Ending Balance	$ 2

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Investment in Securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Amortized Cost	$ 290,367	$ 322,087
Gross Unrealized Gains	17,343	19,960
Gross Unrealized Losses	203	112
Fair Value	307,507	341,935
Us States and Political Subdivisions Debt Securities [Member]
Amortized Cost	283,625	315,345
Gross Unrealized Gains	17,343	19,960
Gross Unrealized Losses	203	112
Fair Value	300,765	335,193
Certificates Of Deposit [Member]
Amortized Cost	6,742	6,742
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 6,742	$ 6,742

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets
Cash and due from banks	$ 9,692	$ 18,794
Interest-bearing deposits in other financial institutions	89,420	108,560
Federal funds sold and other short-term investments	67,255	13,734
Cash and cash equivalents	166,367	141,088
Securities available-for-sale, at fair value	307,507	341,935
Loans	679,890	687,733
Less: Allowance for loan losses	11,032	12,357
Loans, net	668,858	675,376
Premises and equipment, net	11,905	10,735
Investment in bank-owned life insurance	15,041	14,910
Payments in excess of funding	69,419	63,522
Goodwill	11,590	11,590
Other intangible assets, net	3,610	3,757
Other assets	25,982	24,474
Total assets	1,280,279	1,287,387
Liabilities and Shareholders' Equity
Noninterest-bearing	133,284	144,143
Interest-bearing	403,062	419,565
Total deposits	536,346	563,708
Accounts and drafts payable	542,528	522,761
Other liabilities	25,019	26,903
Total liabilities	1,103,893	1,113,372
Shareholders' Equity:
Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued	0	0
Common stock, par value $.50 per share; 20,000,000 shares authorized and 11,931,147 shares issued at March 31, 2013 and December 31, 2012	5,966	5,966
Additional paid-in capital	124,983	125,086
Retained earnings	64,918	60,952
Common shares in treasury, at cost (451,284 shares at March 31, 2013 and 467,316 shares at December 31, 2012)	(11,580)	(11,896)
Accumulated other comprehensive loss	(7,901)	(6,093)
Total shareholders' equity	176,386	174,015
Total liabilities and shareholders' equity	$ 1,280,279	$ 1,287,387

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Stock-Based Compensation (Details 1) (Stock Appreciation Rights (Sars) [Member], USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Stock Appreciation Rights (Sars) [Member]
Balance, beginning (in shares)	351,881
Granted, (in shares)	85,943
Exercised, (in shares)	(3,192)
Balance, ending (in shares)	434,632
Exercisable, (in shares)	257,504
Outstanding, weighted average exercise price (in dollars per share)	$ 27.52
Granted, weighted average exercise price (in dollars per share)	$ 42.14
Exercised, weighted average exercise price (in dollars per share)	$ 29.66
Outstanding, weighted average exercise price (in dollars per share)	$ 30.4
Exercisable, weighted average exercise price (in dollars per share)	$ 25.78
Outstanding, average remaining contractual term years, beginning	7 years 4 months 2 days
Outstanding, average remaining contractual term years, ending	7 years 7 months 6 days
Exercisable, average remaining contractual term years	6 years 5 months 16 days
Outstanding, aggregate intrinsic value	$ 4,988
Outstanding, aggregate intrinsic value	5,061
Exercisable, aggregate intrinsic value	$ 4,187

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash Flows From Operating Activities:
Net Income	$ 6,032	$ 5,908
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,828	1,515
Net gains on sales of securities	(1,453)	(966)
Provision for loan losses	200	200
Stock-based compensation expense	421	351
Increase in income tax liability	537	1,770
Increase in pension liability	625	129
Other operating activities, net	(3,785)	903
Net cash provided by operating activities	4,405	9,810
Cash Flows From Investing Activities:
Proceeds from sales of securities available-for-sale	28,021	14,659
Proceeds from maturities of securities available-for-sale	4,015	2,950
Purchase of securities available-for-sale	0	(18,490)
Net decrease (increase) in loans	6,318	(18,999)
Increase in payments in excess of funding	(5,897)	(4,247)
Purchases of premises and equipment, net	(1,714)	(168)
Environmental management acquisition	0	(7,798)
Net cash provided by (used in) investing activities	30,743	(32,093)
Cash Flows From Financing Activities:
Net decrease in noninterest-bearing demand deposits	(10,859)	(6,456)
Net decrease in interest-bearing demand and savings deposits	(13,130)	(14,130)
Net decrease in time deposits	(3,373)	(11,866)
Net increase (decrease) in accounts and drafts payable	19,767	(20,211)
Cash dividends paid	(2,066)	(1,765)
Distribution of stock awards, net	(208)	(135)
Net cash used in financing activities	(9,869)	(54,563)
Net increase (decrease) in cash and cash equivalents	25,279	(76,846)
Cash and cash equivalents at beginning of period	141,088	235,962
Cash and cash equivalents at end of period	166,367	159,116
Supplemental information:
Cash paid for interest	669	842
Cash paid for income taxes	$ 1,445	$ 293

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Industry Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2013
Loan Description	Assets represent actual assets owned by Information Services and Banking Services and there is no allocation methodology used. Loans are sold by Banking Services to Information Services to create liquidity when the loan-to-deposit ratio of the Company's bank subsidiary, Cass Commercial Bank (the "Bank"), is greater than 100%.

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Industry Segment Information (Tables)

3 Months Ended

Mar. 31, 2013

Industry Segment Information Disclosure [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized information about the Company’s operations in each industry segment is as follows:

					Corporate,
	Information		Banking		Eliminations
(In thousands)	Services		Services		and Other			Total
Quarter Ended March 31, 2013
Fee revenue and other income:
Income from customers	$	18,161	$	304	$	—		$	18,465
Intersegment income (expense)		2,568		381		(2,949	)		—
Net income		3,693		2,252		87			6,032
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,610		—		—			3,610
Total assets		660,631		629,929		(10,281	)		1,280,279
Quarter Ended March 31, 2012
Fee revenue and other income
Income from customers	$	22,548	$	5,886	$	—		$	28,434
Intersegment income (expense)		2,540		428		(2,968	)		—
Net income (expense)		3,877		2,031		—			5,908
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,699		—		—			3,699
Total assets		693,352		590,458		(10,296	)		1,273,514

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Loans by Type (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Loans	$ 679,890	$ 687,733
Commercial and Industrial Loan [Member]
Loans	179,021	160,862
Real Estate Commercial Mortgage [Member]
Loans	125,204	134,843
Real Estate Commercial Construction Loan [Member]
Loans	6,836	7,025
Real Estate Church Related Mortgage [Member]
Loans	350,674	368,118
Real Estate Church Related Construction Loan [Member]
Loans	17,994	16,450
Other Loan [Member]
Loans	$ 161	$ 435

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Operating Lease Commitments [Table Text Block]

The following table summarizes contractual cash obligations of the Company related to operating lease commitments and time deposits at March 31, 2013:

			Amount of Commitment Expiration per Period
			Less than		1-3		3-5		Over 5
(In thousands)	Total		1 Year		Years		Years		Years
Operating lease commitments	$	7,926	$	1,236	$	1,997	$	1,589	$	3,104
Time deposits		109,177		91,230		17,149		798		—
Total	$	117,103	$	92,466	$	19,146	$	2,387	$	3,104

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share and per share data have been restated to give effect to the 10% stock dividend issued on December 14, 2012. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2012.

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Mar. 31, 2013	Dec. 31, 2012
Preferred stock, par value (in dollars per share)	$ 0.50	$ 0.50
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,931,147	11,931,147
Treasury stock, shares	451,284	467,316

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Investment in Securities

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

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 falls into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	March 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	283,625	$	17,343	$	203	$	300,765
Certificates of deposit		6,742		—		—		6,742
Total	$	290,367	$	17,343	$	203	$	307,507
	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	315,345	$	19,960	$	112	$	335,193
Certificates of deposit		6,742		—		—		6,742
Total	$	322,087	$	19,960	$	112	$	341,935

 The fair values of securities with unrealized losses are as follows:

	March 31, 2013
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	28,408	$	203	$	—	$	—	$	28,048	$	203
Certificates of deposit		—		—		—		—		—		—
Total	$	28,048	$	203	$	—	$	—	$	28,048	$	203
	December 31, 2012
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	19,758	$	112	$	—	$	—	$	19,758	$	112
Certificates of deposit		—		—		—		—		—		—
Total	$	19,758	$	112	$	—	$	—	$	19,758	$	112

There were 25 securities, or 10% of total (none greater than 12 months), in an unrealized loss position as of March 31, 2013. There were 18 securities, or 5% of total (none greater than 12 months), in an unrealized loss position as of December 31, 2012. All unrealized losses were reviewed to determine whether the losses were other than temporary. Management believes that all unrealized losses are temporary since they were market driven, and the Company has the ability and intent to hold these securities until maturity.

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.

	March 31, 2013
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,816	$	17,039
Due after 1 year through 5 years		72,535		77,867
Due after 5 years through 10 years		148,171		155,920
Due after 10 years		52,845		56,681
Total	$	290,367	$	307,507

Proceeds from sales of investment securities classified as available for sale were $28,021,000 and $14,659,000 for the three months ended March 31, 2013 and 2012, respectively. Gross realized gains were $1,453,000 and $966,000 for the three months ended March 31, 2013 and 2012, respectively. There were two securities totaling $3,750,000 pledged to secure public deposits and for other purposes at March 31, 2013.

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DOCUMENT AND ENTITY INFORMATION	3 Months Ended
	Mar. 31, 2013	Apr. 29, 2013
Entity Registrant Name	CASS INFORMATION SYSTEMS INC
Entity Central Index Key	0000708781
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	cass
Entity Common Stock, Shares Outstanding		11,487,650
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2013

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 12 – Fair Value of Financial Instruments

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments:

	March 31, 2013				December 31, 2012
	Carrying				Carrying
(In thousands)	Amount		Fair Value		Amount		Fair Value
Balance sheet assets:
Cash and cash equivalents	$	166,367	$	166,367	$	141,088	$	141,088
Investment securities		307,507		307,507		341,935		341,935
Loans, net		668,858		669,565		675,376		676,675
Accrued interest receivable		5,664		5,664		6,276		6,276
Total	$	1,148,396	$	1,149,103	$	1,164,675	$	1,165,974
Balance sheet liabilities:
Deposits	$	536,346	$	536,768	$	563,708	$	564,189
Accounts and drafts payable		542,528		542,528		522,761		522,761
Accrued interest payable		129		129		112	$	112
Total	$	1,079,003	$	1,079,425	$	1,086,581	$	1,087,062

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and Cash Equivalents - The carrying amount approximates fair value.

Investment in Securities - The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 11, “Investment in Securities”, for fair value and unrealized gains and losses by investment type.

Loans - The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 2 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses results in a fair valuation.

Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or current appraised value and therefore, the fair value is a nonrecurring Level 3 valuation.

Accrued Interest Receivable - The carrying amount approximates fair value.

Deposits - The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities and therefore, is a Level 2 valuation. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits.

Accounts and Drafts Payable - The carrying amount approximates fair value.

Accrued Interest - The carrying amount approximates fair value.

There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three months ended March 31, 2013 and 2012. No financial instruments are measured using Level 3 inputs for the three months ended March 31, 2013 and 2012.

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Fee Revenue and Other Income:
Information services payment and processing revenue	$ 16,576	$ 16,487
Bank service fees	304	298
Gains on sales of securities	1,453	966
Other	132	132
Total fee revenue and other income	18,465	17,883
Interest Income:
Interest and fees on loans	8,415	8,940
Interest and dividends on securities:
Taxable	11	10
Exempt from federal income taxes	2,333	2,510
Interest on federal funds sold and other short-term investments	97	129
Total interest income	10,856	11,589
Interest Expense:
Interest on deposits	687	838
Net interest income	10,169	10,751
Provision for loan losses	200	200
Net interest income after provision for loan losses	9,969	10,551
Total net revenue	28,434	28,434
Operating Expense:
Salaries and employee benefits	16,258	15,561
Occupancy	609	532
Equipment	908	863
Amortization of intangible assets	147	139
Other operating expense	2,467	3,246
Total operating expense	20,389	20,341
Income before income tax expense	8,045	8,093
Income tax expense	2,013	2,185
Net income	$ 6,032	$ 5,908
Basic earnings per share (in dollars per share)	$ 0.53	$ 0.52
Diluted earnings per share (in dollars per share)	$ 0.52	$ 0.51

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Loans by Type

3 Months Ended

Mar. 31, 2013

Loans By Type Disclosure [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 6 – Loans by Type

A summary of loan categories is as follows:

	March 31,		December 31,
(In thousands)	2013		2012
Commercial and industrial	$	179,021	$	160,862
Real estate
Commercial:
Mortgage		125,204		134,843
Construction		6,836		7,025
Church, church-related:
Mortgage		350,674		368,118
Construction		17,994		16,450
Other		161		435
Total loans	$	679,890	$	687,733

The following table presents the aging of loans by loan categories at March 31, 2013 and December 31, 2012:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
(In thousands)	Current		Days		Days		Over		accrual		Loans
March 31, 2013
Commercial and industrial	$	178,885	$	—	$	—	$	—	$	136	$	179,021
Real estate
Commercial:
Mortgage		124,600		—		—		—		604		125,204
Construction		6,836		—		—		—		—		6,836
Church, church-related:
Mortgage		349,355		1,151		—		—		168		350,674
Construction		17,994		—		—		—		—		17,994
Other		161		—		—		—		—		161
Total	$	677,831	$	1,151	$	—	$	—	$	908	$	679,890
December 31, 2012
Commercial and industrial	$	159,423	$	—	$	—	$	—	$	1,439	$	160,862
Real estate
Commercial:
Mortgage		129,884		—		—		—		4,959		134,843
Construction		7,025		—		—		—		—		7,025
Church, church-related:
Mortgage		367,944		—		—		—		174		368,118
Construction		16,450		—		—		—		—		16,450
Other		435		—		—		—		—		435
Total	$	681,161	$	—	$	—	$	—	$	6,572	$	687,733

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2013 and December 31, 2012:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject to
	Normal		Special		Special			Total
(In thousands)	Monitoring1		Monitoring2		Monitoring2			Loans
March 31, 2013
Commercial and industrial	$	175,369	$	3,516	$	136		$	179,021
Real estate
Commercial:
Mortgage		116,618		7,982		604			125,204
Construction		6,836		—		—			6,836
Church, church-related:
Mortgage		347,173		3,333		168			350,674
Construction		17,994		—		—			17,994
Other		161		—		—			161
Total	$	664,151	$	14,831	$	908		$	679,890
December 31, 2012
Commercial and industrial	$	155,838	$	3,585	$	1,439		$	160,862
Real estate
Commercial:
Mortgage		123,315		6,569		4,959	3		134,843
Construction		7,025		—		—			7,025
Church, church-related:
Mortgage		366,366		1,578		174			368,118
Construction		16,450		—		—			16,450
Other		435		—		—			435
Total	$	669,429	$	11,732	$	6,572		$	687,733

____________________

¹Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
²Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
³In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” At March 31, 2013 and December 31, 2012, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. Loans delinquent 90 days or more and still accruing interest at March 31, 2013 and December 31, 2012 were $0. Loans classified as troubled debt restructuring were $0 at March 31, 2013 and December 31, 2012.

There are two foreclosed loans with an aggregate book value of $1,322,000 which have been recorded as other real estate owned (included in other assets) as of March 31, 2013 and there were two foreclosed loans with an aggregate book value of $1,322,000 as of December 31, 2012.

The following table presents the recorded investment and unpaid principal balance for impaired loans at March 31, 2013 and December 31, 2012:

				Unpaid			Related
	Recorded			Principal			Allowance for
(In thousands)	Investment			Balance			Loan Losses
March 31, 2013
Commercial and industrial:
Nonaccrual	$	136		$	136		$	68
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		604			604			144
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		168			168			84
Total impaired loans	$	908		$	908		$	296
December 31, 2012
Commercial and industrial:
Nonaccrual	$	1,439		$	1,439		$	657
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		4,959	*		4,959	*		660
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		174			174			87
Total impaired loans	$	6,572		$	6,572		$	1,404

____________________ 

*In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

A summary of the activity in the allowance for loan losses from December 31, 2012 to March 31, 2013 is as follows:

	December 31,		Charge-							March 31,
(In thousands)	2012		Offs		Recoveries		Provision			2012
Commercial and industrial	$	3,192	$	1,296	$	2	$	724		$	2,622
Real estate
Commercial:
Mortgage		3,784		233		—		(379	)		3,172
Construction		137		—		—		(3	)		134
Church, church-related:
Mortgage		4,903		—		2		(124	)		4,781
Construction		333		—		—		(12	)		321
Other		8		—		—		(6	)		2
Total	$	12,357	$	1,529	$	4	$	200		$	11,032

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Industry Segment Information

3 Months Ended

Mar. 31, 2013

Industry Segment Information Disclosure [Abstract]

Segment Reporting Disclosure [Text Block]

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, processing and capital requirements.

The Information Services segment provides freight, utility, telecommunication and environmental invoice processing and payment services primarily to large corporations. The Banking Services segment provides banking services primarily to privately-held businesses and churches.

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, 2012. Management evaluates segment performance based on net income after allocations for corporate expenses and income taxes. Transactions between segments are accounted for at what management believes to be fair value.

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

Assets represent actual assets owned by Information Services and Banking Services and there is no allocation methodology used. Loans are sold by Banking Services to Information Services to create liquidity when the loan-to-deposit ratio of the Company’s bank subsidiary, Cass Commercial Bank (the “Bank”), is greater than 100%. In addition, investment securities are sold by Information Services to Town and Country Investments LLC, a subsidiary of the Bank, to balance consolidated liquidity. Segment interest from customers is the actual interest earned on the loans owned by Information Services and Banking Services, respectively.  

Summarized information about the Company’s operations in each industry segment is as follows:

					Corporate,
	Information		Banking		Eliminations
(In thousands)	Services		Services		and Other			Total
Quarter Ended March 31, 2013
Fee revenue and other income:
Income from customers	$	18,161	$	304	$	—		$	18,465
Intersegment income (expense)		2,568		381		(2,949	)		—
Net income		3,693		2,252		87			6,032
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,610		—		—			3,610
Total assets		660,631		629,929		(10,281	)		1,280,279
Quarter Ended March 31, 2012
Fee revenue and other income
Income from customers	$	22,548	$	5,886	$	—		$	28,434
Intersegment income (expense)		2,540		428		(2,968	)		—
Net income (expense)		3,877		2,031		—			5,908
Goodwill		11,454		136		—			11,590
Other intangible assets, net		3,699		—		—			3,699
Total assets		693,352		590,458		(10,296	)		1,273,514

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Loans by Type (Tables)

3 Months Ended

Mar. 31, 2013

Loans By Type Disclosure [Abstract]

Schedule Of Loan Categories [Table Text Block]

A summary of loan categories is as follows:

	March 31,		December 31,
(In thousands)	2013		2012
Commercial and industrial	$	179,021	$	160,862
Real estate
Commercial:
Mortgage		125,204		134,843
Construction		6,836		7,025
Church, church-related:
Mortgage		350,674		368,118
Construction		17,994		16,450
Other		161		435
Total loans	$	679,890	$	687,733

Schedule of Debt [Table Text Block]

The following table presents the aging of loans by loan categories at March 31, 2013 and December 31, 2012:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
(In thousands)	Current		Days		Days		Over		accrual		Loans
March 31, 2013
Commercial and industrial	$	178,885	$	—	$	—	$	—	$	136	$	179,021
Real estate
Commercial:
Mortgage		124,600		—		—		—		604		125,204
Construction		6,836		—		—		—		—		6,836
Church, church-related:
Mortgage		349,355		1,151		—		—		168		350,674
Construction		17,994		—		—		—		—		17,994
Other		161		—		—		—		—		161
Total	$	677,831	$	1,151	$	—	$	—	$	908	$	679,890
December 31, 2012
Commercial and industrial	$	159,423	$	—	$	—	$	—	$	1,439	$	160,862
Real estate
Commercial:
Mortgage		129,884		—		—		—		4,959		134,843
Construction		7,025		—		—		—		—		7,025
Church, church-related:
Mortgage		367,944		—		—		—		174		368,118
Construction		16,450		—		—		—		—		16,450
Other		435		—		—		—		—		435
Total	$	681,161	$	—	$	—	$	—	$	6,572	$	687,73

Schedule Of Credit Exposure Of Loan Portfolio By Internally Assigned Credit Grade [Table Text Block]

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2013 and December 31, 2012:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject to
	Normal		Special		Special			Total
(In thousands)	Monitoring1		Monitoring2		Monitoring2			Loans
March 31, 2013
Commercial and industrial	$	175,369	$	3,516	$	136		$	179,021
Real estate
Commercial:
Mortgage		116,618		7,982		604			125,204
Construction		6,836		—		—			6,836
Church, church-related:
Mortgage		347,173		3,333		168			350,674
Construction		17,994		—		—			17,994
Other		161		—		—			161
Total	$	664,151	$	14,831	$	908		$	679,890
December 31, 2012
Commercial and industrial	$	155,838	$	3,585	$	1,439		$	160,862
Real estate
Commercial:
Mortgage		123,315		6,569		4,959	3		134,843
Construction		7,025		—		—			7,025
Church, church-related:
Mortgage		366,366		1,578		174			368,118
Construction		16,450		—		—			16,450
Other		435		—		—			435
Total	$	669,429	$	11,732	$	6,572		$	687,733

__________________

¹Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
²Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
³In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Impaired Financing Receivables [Table Text Block]

The following table presents the recorded investment and unpaid principal balance for impaired loans at March 31, 2013 and December 31, 2012:

				Unpaid			Related
	Recorded			Principal			Allowance for
(In thousands)	Investment			Balance			Loan Losses
March 31, 2013
Commercial and industrial:
Nonaccrual	$	136		$	136		$	68
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		604			604			144
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		168			168			84
Total impaired loans	$	908		$	908		$	296
December 31, 2012
Commercial and industrial:
Nonaccrual	$	1,439		$	1,439		$	657
Troubled debt restructurings still accruing		—			—			—
Real estate
Commercial – Mortgage:
Nonaccrual		4,959	*		4,959	*		660
Past due 90 days or more and still accruing		—			—			—
Troubled debt restructurings still accruing		—			—			—
Church – Mortgage:
Nonaccrual		174			174			87
Total impaired loans	$	6,572		$	6,572		$	1,404

____________________ 

*In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the allowance for loan losses from December 31, 2012 to March 31, 2013 is as follows:

	December 31,		Charge-							March 31,
(In thousands)	2012		Offs		Recoveries		Provision			2012
Commercial and industrial	$	3,192	$	1,296	$	2	$	724		$	2,622
Real estate
Commercial:
Mortgage		3,784		233		—		(379	)		3,172
Construction		137		—		—		(3	)		134
Church, church-related:
Mortgage		4,903		—		2		(124	)		4,781
Construction		333		—		—		(12	)		321
Other		8		—		—		(6	)		2
Total	$	12,357	$	1,529	$	4	$	200		$	11,032

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events Disclosure [Abstract]

Subsequent Events [Text Block]

Note 13 – Subsequent Events

In accordance with FASB ASC 855, “Subsequent Events,” the Company has evaluated subsequent events after the consolidated balance sheet date of March 31, 2013 and there were no events identified that would require additional disclosures to prevent the Company’s unaudited consolidated financial statements from being misleading.

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Defined Pension Plans

3 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 9 – Defined Pension Plans

The Company has a noncontributory defined benefit pension plan, which covers most of its employees. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs:

	Estimated			Actual
(In thousands)	2013			2012
Service cost – benefits earned during the year	$	3,519		$	2,799
Interest cost on projected benefit obligation		2,821			2,570
Expected return on plan assets		(4,472	)		(3,967	)
Net amortization and deferral		1,849			1,473
Net periodic pension cost	$	3,717		$	2,875

 Pension costs recorded to expense were $935,000 and $665,000 for the three-month periods ended March 31, 2013 and 2012, respectively. The Company made a contribution of $500,000 to the plan during the three-month period ended March 31, 2013 and expects to contribute at least an additional $1,500,000 in 2013.

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 2012 and an estimate for 2013:

	Estimated		Actual
(In thousands)	2013		2012
Service cost – benefits earned during the year	$	144	$	115
Interest cost on projected benefit obligation		335		307
Net amortization		551		360
Net periodic pension cost	$	1,030	$	782

 Pension costs recorded to expense were $260,000 and $224,000 for the three-month periods ended March 31, 2013 and 2012, respectively.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 7 – Commitments and Contingencies

In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. At March 31, 2013 and December 31, 2012, no amounts have been accrued for any estimated losses for these instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial and standby letters of credit are conditional commitments issued by the Company or its subsidiaries to guarantee the performance of a customer to a third party. These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At March 31, 2013, the balance of unused loan commitments, standby and commercial letters of credit were $11,919,000, $11,856,000, and $3,866,000, respectively. Since some of the financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. Commitments to extend credit and letters of credit are subject to the same underwriting standards as those financial instruments included on the consolidated balance sheets. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of the credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but is generally accounts receivable, inventory, residential or income-producing commercial property or equipment. In the event of nonperformance, the Company or its subsidiaries may obtain and liquidate the collateral to recover amounts paid under guarantees on these financial instruments.

The following table summarizes contractual cash obligations of the Company related to operating lease commitments and time deposits at March 31, 2013:

			Amount of Commitment Expiration per Period
			Less than		1-3		3-5		Over 5
(In thousands)	Total		1 Year		Years		Years		Years
Operating lease commitments	$	7,926	$	1,236	$	1,997	$	1,589	$	3,104
Time deposits		109,177		91,230		17,149		798		—
Total	$	117,103	$	92,466	$	19,146	$	2,387	$	3,104

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.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 8 – Stock-Based Compensation

The 2007 Omnibus Incentive Stock Plan (the “Omnibus Plan”) permits the issuance of up to 1,065,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company issues shares out of treasury stock for these awards. During the three months ended March 31, 2013, 21,804 restricted shares and 85,943 SARs were granted under the Omnibus Plan.

Restricted Stock

Restricted shares are amortized to expense over the three-year vesting period. As of March 31, 2013, the total unrecognized compensation expense related to non-vested common stock was $1,753,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.3 years.

Following is a summary of the activity of the restricted stock:

	Three Months Ended
	March 31, 2013
	Shares		Fair Value
Balance at December 31, 2012	54,875		$	31.61
Granted	21,804		$	42.14
Vested	(18,959	)	$	30.68
Balance at March 31, 2013	57,720		$	35.90

SARs
SARs vest over a three-year period, with one-third of the shares vesting and becoming exercisable each year on the anniversary date of the grant, and they expire 10 years from the original grant date. As of March 31, 2013, the total unrecognized compensation expense was $1,555,000, and the related weighted-average period over which it is expected to be recognized is 1.9 years. Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2013:

			Weighted-		Average	Aggregate
			Average		Remaining	Intrinsic
			Exercise		Contractual	Value
	Shares		Price		Term Years	(In thousands)
Outstanding at December 31, 2012	351,881		$	27.52	7.34	$	4,988
Granted	85,943		$	42.14
Exercised	(3,192	)	$	29.66
Outstanding at March 31, 2013	434,632		$	30.40	7.60	$	5,061
Exercisable at March 31, 2013	257,504		$	25.78	6.46	$	4,187

Following is a summary of the activity of the non-vested SARs during the three-month period ended March 31, 2013:

			Weighted-Average
	Shares		Grant Date Fair Value
Non-vested at December 31, 2012	161,294		$	31.70
Granted	85,943		$	42.14
Vested	(70,109	)	$	30.85
Non-vested at March 31, 2013	177,128		$	37.11

The Company uses the Black-Scholes pricing model to determine the fair value of the SARs at the date of grant. Following are the assumptions used to estimate the per-share fair value of SARs granted:

	Three Months Ended March 31,
	2013		2012
Risk-free interest rate	1.29	%	1.38	%
Expected life	7 yrs.		7 yrs.
Expected volatility	28.72	%	29.39	%
Expected dividend yield	1.71	%	1.84	%

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield for the period equal to the expected life of the SARs at the time of the grant. The expected life was derived using the historical exercise activity. The Company uses historical volatility for a period equal to the expected life of the rights using average monthly closing market prices of the Company’s stock as reported on The Nasdaq Global Market. The expected dividend yield is based on the Company’s current rate of annual dividends.

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 10 – Income Taxes

As of March 31, 2013, the Company’s unrecognized tax benefits were approximately $1,990,000, of which $1,439,000 would, if recognized, affect the Company’s effective tax rate. As of December 31, 2012, the Company's unrecognized tax benefits were approximately $1,885,000, of which $1,357,000 would, if recognized, affect the Company's effective tax rate. During the next 12 months, the Company may realize a reduction of its unrecognized tax benefits of approximately $538,000 due to the lapse of federal and state statutes of limitations.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company had $106,000 and $89,000 of gross interest accrued as of March 31, 2013 and December 31, 2012, respectively. There were no penalties for unrecognized tax benefits accrued at March 31, 2013 and December 31, 2012.

The Company is subject to income tax in the U.S. federal jurisdiction and numerous state jurisdictions. U.S. federal income tax returns for tax years 2009 through 2011 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2009 through 2011.

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Industry Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Fee revenue and other income:
Income from customers	$ 18,465	$ 28,434
Intersegment income (expense)	0	0
Net income	6,032	5,908
Goodwill	11,590	11,590	11,590
Other intangible assets, net	3,610	3,699
Total assets	1,280,279	1,287,387	1,287,387
Information Services [Member]
Fee revenue and other income:
Income from customers	18,161	22,548
Intersegment income (expense)	2,568	2,540
Net income	3,693	3,877
Goodwill	11,454	11,454
Other intangible assets, net	3,610	3,699
Total assets	660,631	693,352
Banking Services [Member]
Fee revenue and other income:
Income from customers	304	5,886
Intersegment income (expense)	381	428
Net income	2,252	2,031
Goodwill	136	136
Other intangible assets, net	0	0
Total assets	629,929	590,458
Corporate Eliminations and Other [Member]
Fee revenue and other income:
Income from customers	0	0
Intersegment income (expense)	(2,949)	(2,968)
Net income	87	0
Goodwill	0	0
Other intangible assets, net	0	0
Total assets	$ (10,281)	$ (10,296)

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Defined Pension Plans (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Pension Plans, Defined Benefit [Member]
Pension Expense	$ 260,000	$ 224,000
Pension Contributions	500,000
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	1,500,000
Supplemental Employee Retirement Plans, Defined Benefit [Member]
Pension Expense	$ 935,000	$ 665,000

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

There were no anti-dilutive shares in the three months ended March 31, 2013 and 2012. The calculations of basic and diluted earnings per share are as follows:

	Three Months Ended
	March 31,
(In thousands except share and per share data)	2013		2012
Basic
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Basic earnings per share	$	.53	$	.52
Diluted
Net income	$	6,032	$	5,908
Weighted-average common shares outstanding		11,422,028		11,369,221
Effect of dilutive restricted stock, stock options and stock appreciation
rights		174,866		175,597
Weighted-average common shares outstanding assuming dilution		11,596,894		11,544,818
Diluted earnings per share	$	.52	$	.51

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Defined Pension Plans (Tables)

3 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule Of Net Periodic Pension Costs [Table Text Block]

The following table represents the components of the net periodic pension costs:

	Estimated			Actual
(In thousands)	2013			2012
Service cost – benefits earned during the year	$	3,519		$	2,799
Interest cost on projected benefit obligation		2,821			2,570
Expected return on plan assets		(4,472	)		(3,967	)
Net amortization and deferral		1,849			1,473
Net periodic pension cost	$	3,717		$	2,875

Schedule of Net Benefit Costs [Table Text Block]

The following table represents the components of the net periodic pension costs for 2012 and an estimate for 2013:

	Estimated		Actual
(In thousands)	2013		2012
Service cost – benefits earned during the year	$	144	$	115
Interest cost on projected benefit obligation		335		307
Net amortization		551		360
Net periodic pension cost	$	1,030	$	782

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Defined Pension Plans (Details) (Supplemental Employee Retirement Plans, Defined Benefit [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Scenario, Forecast [Member]
Service cost - benefits earned during the year	$ 3,519
Interest cost on projected benefit obligation	2,821
Expected return on plan assets	(4,472)
Net amortization and deferral	1,849
Net periodic pension cost	3,717
Scenario, Actual [Member]
Service cost - benefits earned during the year	2,799
Interest cost on projected benefit obligation	2,570
Expected return on plan assets	(3,967)
Net amortization and deferral	1,473
Net periodic pension cost	$ 2,875

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Loans by Type (Details Textual) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Loan Disclosure	Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate.
Accruing Interest On Nonrecurring Loan	$ 0	$ 0
Loans Classified As Troubled Debt Restructuring	0	0
Other Real Estate, Foreclosed Assets, and Repossessed Assets	1,322,000	1,322,000
Received From Nonaccrual Loan	4,115,000
Nonperforming Loans Nonaccrual	4,198,000
Nonaccrual Loan Charged Off	$ 83,000

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Comprehensive income:
Net Income	$ 6,032	$ 5,908
Other comprehensive income:
Net unrealized gain on securities available-for-sale, net of tax	(815)	(903)
Reclassification adjustments for gains included in net income, net of tax	(945)	(628)
Foreign currency translation adjustments	(48)	3
Total comprehensive income	$ 4,224	$ 4,380

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Stock Repurchases

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Treasury Stock [Text Block]

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 363,000 shares of the Company’s common stock. The Company did not repurchase any shares during the three-month periods ended March 31, 2013 and 2012. As of March 31, 2013, 363,000 shares remained available for repurchase under the program. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions.

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Investment in Securities (Tables)

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities [Table Text Block]

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	March 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	283,625	$	17,343	$	203	$	300,765
Certificates of deposit		6,742		—		—		6,742
Total	$	290,367	$	17,343	$	203	$	307,507
	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	315,345	$	19,960	$	112	$	335,193
Certificates of deposit		6,742		—		—		6,742
Total	$	322,087	$	19,960	$	112	$	341,935

Schedule of Unrealized Loss on Investments [Table Text Block]

The fair values of securities with unrealized losses are as follows:

	March 31, 2013
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	28,408	$	203	$	—	$	—	$	28,048	$	203
Certificates of deposit		—		—		—		—		—		—
Total	$	28,048	$	203	$	—	$	—	$	28,048	$	203
	December 31, 2012
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
State and political
subdivisions	$	19,758	$	112	$	—	$	—	$	19,758	$	112
Certificates of deposit		—		—		—		—		—		—
Total	$	19,758	$	112	$	—	$	—	$	19,758	$	112

Schedule Of Amortized Cost And Fair Value [Table Text Block]

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.

	March 31, 2013
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,816	$	17,039
Due after 1 year through 5 years		72,535		77,867
Due after 5 years through 10 years		148,171		155,920
Due after 10 years		52,845		56,681
Total	$	290,367	$	307,507

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Loans by Type (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Loans	$ 679,890		$ 687,733
Loans Subject To Normal Monitoring [Member]
Loans	664,151	[1]	669,429	[1]
Performing Loans Subject To Special Monitoring [Member]
Loans	14,831	[2]	11,732	[2]
Nonperforming Loans Subject To Special Monitoring [Member]
Loans	908	[2]	6,572	[2]
Commercial and Industrial Financing Receivable [Member]
Loans	179,021		160,862
Commercial and Industrial Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	175,369	[1]	155,838	[1]
Commercial and Industrial Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	3,516	[2]	3,585	[2]
Commercial and Industrial Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	136	[2]	1,439	[2]
Real Estate Mortgage Commercial Financing Receivable [Member]
Loans	125,204		134,843
Real Estate Mortgage Commercial Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	116,618	[1]	123,315	[1]
Real Estate Mortgage Commercial Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	7,982	[2]	6,569	[2]
Real Estate Mortgage Commercial Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	604	[2]	4,959	[3]
Commercial Real Estate Construction Financing Receivable [Member]
Loans	6,836		7,025
Commercial Real Estate Construction Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	6,836	[1]	7,025	[1]
Commercial Real Estate Construction Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	0	[2]	0	[2]
Commercial Real Estate Construction Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	0	[2]	0	[2]
Real Estate Mortgage Church Related Financing Receivable [Member]
Loans	350,674		368,118
Real Estate Mortgage Church Related Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	347,173	[1]	366,366	[1]
Real Estate Mortgage Church Related Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	3,333	[2]	1,578	[2]
Real Estate Mortgage Church Related Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	168	[2]	174	[2]
Real Estate Construction Church Related Financing Receivable [Member]
Loans	17,994		16,450
Real Estate Construction Church Related Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	17,994	[1]	16,450	[1]
Real Estate Construction Church Related Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	0	[2]	0	[2]
Real Estate Construction Church Related Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	0	[2]	0	[2]
Other Financing Receivable [Member]
Loans	161		435
Other Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member]
Loans	161	[1]	435	[1]
Other Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member]
Loans	0	[2]	0	[2]
Other Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member]
Loans	$ 0	[2]	$ 0	[2]

[1] Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.

[2] Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

[3] In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2013

Intangible Asset Description [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Details of the Company’s intangible assets are as follows:

	March 31, 2013					December 31, 2012
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(In thousands)	Amount		Amortization			Amount		Amortization
Assets eligible for amortization:
Customer lists	$	3,933	$	(1,121	)	$	3,933	$	(1,015	)
Non-compete agreements		261		(66	)		261		(53	)
Software		234		(98	)		234		(78	)
Other		500		(33	)		500		(25	)
Unamortized intangible assets:
Goodwill1		11,817		(227	)		11,817		(227	)
Total intangible assets	$	16,745	$	(1,545	)	$	16,745	$	(1,398	)