CASS INFORMATION SYSTEMS INC
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

 

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

organization)

(I.R.S. Employer Identification No.)

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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbols

Name of each exchange on which registered

Common stock, par value $.50

CASS

The Nasdaq Global Select Market

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

  ☒  

No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

Yes

  ☒  

No

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

Large Accelerated Filer

Accelerated Filer ☐

 

Non-Accelerated Filer ☐

Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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

Yes

No

The number of shares outstanding of the registrant's only class of common stock as of October 25, 2019: Common stock, par value $.50 per share – 14,497,763 shares outstanding.


-1-


TABLE OF CONTENTS

PART I – Financial Information

Item 1.FINANCIAL STATEMENTS

Consolidated Balance Sheets
September 30, 2019 (unaudited) and December 31, 2018

3

Consolidated Statements of Income
Three and nine months ended September 30, 2019 and 2018 (unaudited)

4

Consolidated Statements of Comprehensive Income
Three and nine months ended September 30, 2019 and 2018 (unaudited)

5

Consolidated Statements of Cash Flows
Nine months ended September 30, 2019 and 2018 (unaudited)

6

Consolidated Statements of Shareholders’ Equity
Three and nine months ended September 30, 2019 and 2018 (unaudited)

7

Notes to Consolidated Financial Statements (unaudited)

8

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

20

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

30

Item 4.CONTROLS AND PROCEDURES

30

PART II – Other Information – Items 1. – 6.

30

SIGNATURES

32

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 2018 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.


-2-


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)

September 30,

2019

(Unaudited)

December 31,

2018

Assets

Cash and due from banks

$

24,472

$

15,042

Interest-bearing deposits in other financial institutions

 

114,869

 

179,281

Federal funds sold and other short-term investments

 

83,397

 

36,610

Cash and cash equivalents

 

222,738

 

230,933

Securities available-for-sale, at fair value

 

427,591

 

441,534

  

Loans

 

767,384

 

721,587

Less: Allowance for loan losses

 

10,509

 

10,225

Loans, net

 

756,875

 

711,362

Payments in excess of funding

 

208,225

 

160,777

Premises and equipment, net

 

20,775

 

22,031

Investment in bank-owned life insurance

 

17,484

 

17,384

Goodwill

 

15,894

 

12,569

Other intangible assets, net

 

3,170

 

1,554

Other assets

 

108,258

 

97,032

Total assets

$

1,781,010

$

1,695,176

  

Liabilities and Shareholders’ Equity

 

 

Liabilities:

 

 

Deposits:

 

 

Noninterest-bearing

$

310,695

$

313,258

Interest-bearing

 

400,538

 

408,668

Total deposits

 

711,233

 

721,926

Accounts and drafts payable

 

762,075

 

694,360

Other liabilities

 

61,085

 

49,042

Total liabilities

 

1,534,393

 

1,465,328

  

Shareholders’ Equity:

 

 

Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued

 

 

Common stock, par value $.50 per share; 40,000,000 shares authorized and 15,505,772 shares issued at September 30, 2019 and December 31, 2018

 

7,753

 

7,753

Additional paid-in capital

 

205,775

 

205,770

Retained earnings

 

87,887

 

75,171

Common shares in treasury, at cost (1,008,009 shares at September 30, 2019 and 894,486 shares at December 31, 2018)

 

(45,985)

 

(39,974)

Accumulated other comprehensive loss

 

(8,813)

 

(18,872)

Total shareholders’ equity

 

246,617

 

229,848

Total liabilities and shareholders’ equity

$

1,781,010

$

1,695,176

See accompanying notes to unaudited consolidated financial statements.


-3-


CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in Thousands except Per Share Data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2019

2018

2019

2018

Fee Revenue and Other Income:

Information services payment and processing revenue

$

27,741

$

26,020

$

81,050

$

76,068

Bank service fees

 

307

 

300

 

984

 

994

Gains (losses) on sales of securities

 

 

 

19

 

(42)

Other

 

214

 

115

 

594

 

429

Total fee revenue and other income

 

28,262

 

26,435

 

82,647

 

77,449

  

Interest Income:

 

 

Interest and fees on loans

 

9,548

 

8,367

 

27,564

 

23,832

Interest and dividends on securities:

 

 

Taxable

 

612

 

618

 

1,893

 

1,428

Exempt from federal income taxes

 

1,925

 

2,111

 

5,956

 

7,008

Interest on federal funds sold and other short-term investments

 

1,581

 

1,119

 

4,477

 

2,748

Total interest income

 

13,666

 

12,215

 

39,890

 

35,016

 

Interest Expense:

 

 

Interest on deposits

 

1,392

 

1,029

 

3,987

 

2,502

Net interest income

 

12,274

 

11,186

 

35,903

 

32,514

Provision for loan losses

 

 

 

250

 

Net interest income after provision for loan losses

 

12,274

 

11,186

 

35,653

 

32,514

Total net revenue

 

40,536

 

37,621

 

118,300

 

109,963

 

Operating Expense:

 

 

Personnel

 

23,514

 

21,747

 

68,594

 

63,718

Occupancy

 

973

 

975

 

2,930

 

2,754

Equipment

 

1,554

 

1,434

 

4,575

 

4,150

Amortization of intangible assets

 

150

 

110

 

359

 

331

Other operating expense

 

4,372

 

4,264

 

12,538

 

11,222

Total operating expense

 

30,563

 

28,530

 

88,996

 

82,175

Income before income tax expense

 

9,973

 

9,091

 

29,304

 

27,788

Income tax expense

 

1,787

 

1,481

 

5,271

 

4,577

Net income

$

8,186

$

7,610

$

24,033

$

23,211

 

Basic earnings per share

$

.57

$

.52

$

1.66

$

1.58

Diluted earnings per share

 

.56

 

.51

 

1.64

 

1.55

See accompanying notes to unaudited consolidated financial statements.


-4-


CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Dollars in Thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

 

2019

2018

2019

2018

Comprehensive income:

 

 

Net income

$

8,186

$

7,610

$

24,033

$

23,211

Other comprehensive income:

 

 

Net unrealized gain (loss) on securities available-for-sale

 

1,571

 

(2,835)

 

13,317

 

(13,029)

Tax effect

 

(374)

 

675

 

(3,170)

 

3,101

 

Reclassification adjustments for (gains) losses included in net income

 

 

 

(19)

 

42

Tax effect

 

 

 

5

 

(10)

 

Foreign currency translation adjustments

 

(78)

 

(21)

 

(74)

 

(91)

Total comprehensive income

$

9,305

$

5,429

$

34,092

$

13,224

See accompanying notes to unaudited consolidated financial statements.


-5-


CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in Thousands)

Nine Months Ended

September 30,

2019

2018

Cash Flows From Operating Activities:

Net income

$

24,033

$

23,211

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization

 

8,103

 

8,524

Net (gains) losses on sales of securities

 

(19)

 

42

Stock-based compensation expense

 

2,286

 

2,238

Provision for loan losses

 

250

 

(Decrease) increase in income tax liability

 

(1,384)

 

773

Increase in pension liability

 

3,888

 

3,688

(Increase) decrease in accounts receivable

 

(399)

 

4,027

Other operating activities, net

 

3,016

 

(3,707)

Net cash provided by operating activities

 

39,774

 

38,796

  

Cash Flows From Investing Activities:

 

 

Proceeds from sales of securities available-for-sale

 

4,648

 

58,520

Proceeds from maturities of securities available-for-sale

 

18,001

 

26,041

Purchase of securities available-for-sale

 

 

(78,772)

Net increase in loans

 

(45,763)

 

(39,993)

Increase in payments in excess of funding

 

(47,448)

 

(21,977)

Purchases of premises and equipment, net

 

(1,877)

 

(3,956)

Acquisition of Gateway Giving, LLC

 

(3,000)

 

Net cash used in investing activities

 

(75,439)

 

(60,137)

  

Cash Flows From Financing Activities:

 

 

Net decrease in noninterest-bearing demand deposits

 

(2,563)

 

(11,146)

Net decrease in interest-bearing demand and savings deposits

 

(10,485)

 

(35,988)

Net increase in time deposits

 

2,355

 

3,771

Net increase in accounts and drafts payable

 

57,772

 

27,849

Cash dividends paid

 

(11,317)

 

(9,342)

Purchase of common shares for treasury

 

(7,799)

 

(1,409)

Other financing activities, net

 

(493)

 

(457)

Net cash provided by (used in) by financing activities

 

27,470

 

(26,722)

Net decrease in cash and cash equivalents

 

(8,195)

 

(48,063)

Cash and cash equivalents at beginning of period

 

230,933

 

228,110

Cash and cash equivalents at end of period

$

222,738

$

180,047

  

Supplemental information:

 

 

Cash paid for interest

$

3,831

$

2,459

Cash paid for income taxes

 

6,648

 

3,776

See accompanying notes to unaudited consolidated financial statements.


-6-


CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2019

(Unaudited)

(Dollars in Thousands except Per Share Data)

Common

Stock

Additional

Paid-in

Capital

Retained

Earnings

Treasury

Stock

Accumulated

Other

Comprehensive

(Loss) Income

Total

Balance, June 30, 2018

$

6,524

$

204,687

$

68,771

$

(32,243)

$

(21,126)

$

226,613

  

Net income

 

 

 

7,610

 

 

 

7,610

Cash dividends ($.20 per share)

 

 

 

(3,198)

 

 

 

(3,198)

Issuance of 1,787 common shares pursuant to stock-based compensation plan, net

 

 

(23)

 

 

63

 

 

40

Exercise of SARs

 

 

(454)

 

 

151

 

 

(303)

Stock-based compensation expense

 

 

761

 

 

 

 

761

Other comprehensive loss

 

 

 

 

 

(2,181)

 

(2,181)

Balance, September 30, 2018

$

6,524

$

204,971

$

73,183

$

(32,029)

$

(23,307)

$

229,342

  

 

Balance, June 30, 2019

$

7,753

$

205,463

$

83,470

$

(46,333)

$

(9,932)

$

240,421

  

Net income

 

 

 

8,186

 

 

 

8,186

Cash dividends ($.26 per share)

 

 

 

(3,769)

 

 

 

(3,769)

Issuance of 795 common shares pursuant to stock-based compensation plan, net

 

 

(5)

 

 

48

 

 

43

Exercise of SARs

 

 

(552)

 

 

300

 

 

(252)

Stock-based compensation expense

 

 

869

 

 

 

 

869

Other comprehensive income

 

 

 

 

 

1,119

 

1,119

Balance, September , 2019

$

7,753

$

205,775

$

87,887

$

(45,985)

$

(8,813)

$

246,617

Common

Stock

Additional

Paid-in

Capital

Retained

Earnings

Treasury

Stock

Accumulated

Other

Comprehensive

(Loss) Income

Total

Balance, December 31, 2017

$

6,524

$

204,631

$

59,314

$

(32,061)

$

(13,320)

$

225,088

  

Net income

 

 

 

23,211

 

 

23,211

Cash dividends ($.20 per share)

 

 

 

(9,342)

 

 

(9,342)

Issuance of 34,215 common shares pursuant to stock-based compensation plan, net

 

 

(1,021)

 

 

614

 

(407)

Exercise of SARs

 

 

(877)

 

 

301

 

(576)

Stock-based compensation expense

 

 

2,238

 

 

 

2,238

Purchase of 18,656 common shares

 

 

 

 

(883)

 

(883)

Other comprehensive loss

 

 

 

 

 

(9,987)

 

(9,987)

Balance, September 30, 2018

$

6,524

$

204,971

$

73,183

$

(32,029)

$

(23,307)

$

229,342

  

 

Balance, December 31, 2018

$

7,753

$

205,770

$

75,171

$

(39,974)

$

(18,872)

$

229,848

  

Net income

 

 

 

24,033

 

 

24,033

Cash dividends ($.26 per share)

 

 

 

(11,317)

 

 

(11,317)

Issuance of 36,062 common shares pursuant to stock-based compensation plan, net

 

 

(1,426)

 

 

1,324

 

(102)

Exercise of SARs

 

 

(855)

 

 

464

 

(391)

Stock-based compensation expense

 

 

2,286

 

 

 

2,286

Purchase of 154,593 common shares

 

 

 

 

(7,799)

 

(7,799)

Other comprehensive income

 

 

 

 

 

10,059

10,059

Balance, September 30, 2019

$

7,753

$

205,775

$

87,887

$

(45,985)

$

(8,813)

$

246,617

See accompanying notes to unaudited consolidated financial statements.


-7-


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 20% stock dividend paid on December 14, 2018. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2018.

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,” (“FASB ASC 350”), which requires that intangibles with indefinite useful lives be tested annually for impairment and those with finite useful lives be amortized over their useful lives.

In September 2019, the Company acquired the assets of Gateway Giving, LLC and recorded intangible assets of $5,300,000. The purchase price of the acquisition consisted of a cash payment of $3,000,000 and a potential earnout of $4,000,000. The Company estimated the earnout component to be $2,300,000. Those intangible assets were estimated as $3,325,000 for goodwill, $1,500,000 for software, $325,000 for the customer list, and $150,000 for non-compete agreements. The amounts recorded for the software, the customer list, the non-compete agreements, and goodwill were done so on a provisional basis and will be adjusted upon the completion of a valuation.

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

September 30, 2019

December 31, 2018

(In thousands)

Gross Carrying

Amount

Accumulated

Amortization

Gross Carrying

Amount

Accumulated

Amortization

Assets eligible for amortization:

 

 

 

 

Customer lists

$

4,613

$

(3,352)

$

4,288

$

(3,071)

Patents

 

72

 

(19)

 

72

 

(16)

Non-compete agreements

 

482

 

(334)

 

332

 

(326)

Software

 

1,734

 

(276)

 

234

 

(234)

Other

 

500

 

(250)

 

500

 

(225)

Unamortized intangible assets:

 

 

 

 

Goodwill1

 

16,121

 

(227)

 

12,796

 

(227)

Total intangible assets

$

23,522

$

(4,458)

$

18,222

$

(4,099)

1

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

The customer lists are amortized over seven and ten years; the patents over 18 years; the non-compete agreements over two and five years; software over three years; and other intangible assets over 15 years. Amortization of intangible assets amounted to $359,000 and $331,000 for the nine-month periods ended September 30, 2019 and 2018, respectively. Estimated annual amortization of intangibles is as follows: $604,000 in 2019, $983,000 in each of 2020 and 2021, $498,000 in 2022 and $164,000 in 2023.


-8-


Note 3 – Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. There were no anti-dilutive shares in the three and nine months ended September 30, 2019 and 2018. The calculations of basic and diluted earnings per share are as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands except share and per share data)

2019

2018

2019

2018

Basic:

Net income

$

8,186

$

7,610

$

24,033

$

23,211

Weighted-average common shares outstanding

 

14,417,725

 

14,695,170

 

14,435,670

 

14,687,614

Basic earnings per share

$

.57

$

.52

$

1.66

$

1.58

Diluted:

 

 

 

 

Net income

$

8,186

$

7,610

$

24,033

$

23,211

Weighted-average common shares outstanding

 

14,417,725

 

14,695,170

 

14,435,670

 

14,687,614

Effect of dilutive restricted stock and stock appreciation rights

 

262,917

 

248,010

 

258,123

 

240,489

Weighted-average common shares outstanding assuming dilution

 

14,680,642

 

14,943,180

 

14,693,793

 

14,928,103

Diluted earnings per share

$

.56

$

.51

$

1.64

$

1.55

Note 4 – Stock Repurchases

The Company maintains a treasury stock buyback program pursuant to which the Board of Directors has authorized the repurchase of up to 500,000 shares of the Company’s common stock. As restored by the Board of Directors on October 22, 2019, the program provides that the Company may repurchase up to an aggregate of 500,000 shares of common stock and has no expiration date. The Company did not repurchase shares during the three-month periods ended September 30, 2019 and 2018 and repurchased 154,593 and 18,656 during the nine-month periods ended September 30, 2019 and 2018, respectively. As of September 30, 2019, 450,222 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 and processing requirements.

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

The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 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.


-9-


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, 2019

Fee income from customers

$

28,026

$

257

$

(21)

$

28,262

Interest income*

 

6,760

 

7,930

 

(513)

 

14,177

Interest expense

 

 

1,392

 

 

1,392

Intersegment income (expense)

 

 

533

 

(533)

 

Tax-equivalized pre-tax income*

 

7,619

 

3,399

 

(534)

 

10,484

Goodwill

 

15,758

 

136

 

 

15,894

Other intangible assets, net

 

3,170

 

 

 

3,170

Total Assets

 

908,946

 

862,142

 

9,922

 

1,781,010

Average Funding Sources

 

704,772

 

588,226

 

 

1,292,998

Three Months Ended September 30, 2018

 

 

 

 

Fee income from customers

$

26,263

$

253

$

(81)

$

26,435

Interest income*

 

6,446

 

6,661

 

(329)

 

12,778

Interest expense

 

 

1,029

 

 

1,029

Intersegment income (expense)

 

 

467

 

(467)

 

Tax-equivalized pre-tax income*

 

7,269

 

2,796

 

(411)

 

9,654

Goodwill

 

12,433

 

136

 

 

12,569

Other intangible assets, net

 

1,664

 

 

 

1,664

Total Assets

 

903,055

 

847,673

 

(72,481)

 

1,678,247

Average Funding Sources

 

650,267

 

550,594

 

 

1,200,861

Nine Months Ended September 30, 2019

 

 

 

 

Fee income from customers

$

82,049

$

1,040

$

(442)

 

$ 82,647

Interest income*

 

19,273

 

23,082

 

(883)

 

41,472

Interest expense

 

 

3,987

 

 

3,987

Intersegment income (expense)

 

 

1,587

 

(1,587)

 

Tax-equivalized pre-tax income*

 

21,997

 

10,214

 

(1,324)

 

30,887

Goodwill

 

15,758

 

136

 

 

15,894

Other intangible assets, net

 

3,170

 

 

 

3,170

Total Assets

 

908,946

 

862,142

 

9,922

 

1,781,010

Average Funding Sources

 

667,741

 

583,458

 

 

1,251,199

Nine Months Ended September 30, 2018

 

 

 

 

Fee income from customers

$

76,397

$

947

$

105

$

77,449

Interest income*

 

18,621

 

20,351

 

(2,081)

 

36,891

Interest expense

 

 

2,502

 

 

2,502

Intersegment income (expense)

 

 

1,415

 

(1,415)

 

Tax-equivalized pre-tax income*

 

21,394

 

10,245

 

(1,976)

 

29,663

Goodwill

 

12,433

 

136

 

 

12,569

Other intangible assets, net

 

1,664