Industry Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Industry Segment Information

Industry Segment Information

The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements.

The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries, including on-line generosity services, as well as supporting the banking needs of the Information Services segment.

The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Management evaluates segment performance based on tax-equivalized (as defined in the footnote to the chart on the following table) pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value.

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

Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Segment interest income is a function of the relative share of average funding sources generated by each segment multiplied by the following rates:

•Information Services – one or more fixed rates depending upon the specific characteristics of the funding source, and

•Banking Services – a variable rate that is based upon the overall performance of the Company’s earning assets.

Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other.

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

(In thousands)	Information Services		Banking Services		Corporate, Eliminations and Other		Total
Three Months Ended September 30, 2021:
Fee income	$	26,642	$	596	$	339	$	27,577
Interest income*	6,361		6,187		(361)		12,187
Interest expense	—		287		—		287
Intersegment income (expense)	—		859		(859)		—
Tax-equivalized pre-tax income*	6,753		1,886		(193)		8,446
Goodwill	12,433		1,829		—		14,262
Other intangible assets, net	431		2,348		—		2,779
Total assets	1,018,710		1,279,452		(5,176)		2,292,986
Average funding sources	974,091		875,997		—		1,850,088
Three Months Ended September 30, 2020:
Fee income	$	24,198	$	651	$	83	$	24,932
Interest income*	5,112		7,212		(579)		11,745
Interest expense	—		465		—		465
Intersegment income (expense)	—		593		(593)		—
Tax-equivalized pre-tax income*	4,522		3,506		(496)		7,532
Goodwill	12,433		1,829		—		14,262
Other intangible assets, net	837		2,800		—		3,637
Total assets	905,158		1,105,845		(10,540)		2,000,463
Average funding sources	751,010		780,217		—		1,531,227
Nine Months Ended September 30, 2021:
Fee income	$	77,717	$	1,846	$	1,176	$	80,739
Interest income*	17,754		18,501		(1,335)		34,920
Interest expense	—		915		—		915
Intersegment income (expense)	—		2,170		(2,170)		—
Tax-equivalized pre-tax income*	19,170		8,080		(654)		26,596
Goodwill	12,433		1,829		—		14,262
Other intangible assets, net	431		2,348		—		2,779
Total assets	1,018,710		1,279,452		(5,176)		2,292,986
Average funding sources	906,474		862,142		—		1,768,616
Nine Months Ended September 30, 2020:
Fee income	$	72,098	$	1,906	$	1,197	$	75,201
Interest income*	14,774		21,097		812		36,683
Interest expense	—		1,911		—		1,911
Intersegment income (expense)	—		1,674		(1,674)		—
Tax-equivalized pre-tax income*	13,082		9,190		2,010		24,282
Goodwill	12,433		1,829		—		14,262
Other intangible assets, net	837		2,800		—		3,637
Total assets	905,158		1,105,845		(10,540)		2,000,463
Average funding sources	703,142		712,903		—		1,416,045

* Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2021 and 2020. The tax-equivalent adjustment was approximately $468,000 and $466,000 for the Third Quarter of 2021 and 2020, respectively, and $1,417,000 and $1,424,000 for the Nine Months Ended 2021 and 2020, respectively.