Note 17
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 Note 1 of this report. 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. Certain amounts in the table below for 2017 and 2016 have been reclassified to conform to 2018 presentation.

Summarized information about the Company’s operations in each industry segment for the years ended December 31, 2018, 2017 and 2016, is as follows:

						Corporate,
		Information		Banking		Eliminations
*(In thousands)*		Services		Services		and Other			Total
*2018*
Fee income from customers	$	102,839	$	1,307	$	(70	)	$	104,076
Interest income*		22,273		23,706		4,369			50,348
Interest expense		—		3,736		—			3,736
Intersegment income (expense)		—		1,880		(1,880	)		—
Depreciation and amortization		4,254		142		—			4,396
Tax-equivalized pre-tax income*		24,962		11,625		2,181			38,768
Goodwill		12,433		136		—			12,569
Other intangible assets, net		1,554		—		—			1,554
Total Assets		826,201		886,291		(17,316	)		1,695,176

Funding Sources		642,733		572,653		—			1,215,386
*2017*
Fee income from customers	$	93,484	$	1,547	$	481		$	95,512
Interest income*		20,634		23,732		3,301			47,667
Interest expense		—		2,187		—			2,187
Intersegment income (expense)		—		1,362		(1,362	)		—
Depreciation and amortization		3,902		149		—			4,051
Tax-equivalized pre-tax income*		24,990		13,691		1,908			40,589
Goodwill		12,433		136		—			12,569
Other intangible assets, net		1,996		—		—			1,996
Total Assets		854,214		830,672		(27,677	)		1,603,209
Funding Sources		604,493		598,986		—			1,203,479
*2016*
Fee income from customers	$	83,821	$	1,417	$	898		$	86,136
Interest income*		18,729		24,088		2,614			45,431
Interest expense		—		2,029		—			2,029
Intersegment income (expense)		—		1,136		(1,136	)		—
Depreciation and amortization		3,488		165		—			3,653
Tax-equivalized pre-tax income*		20,065		15,090		2,410			37,565
Goodwill		11,454		136		—			11,590
Other intangible assets, net		1,997		—		—			1,997
Total Assets		763,999		756,164		(15,324	)		1,504,839
Funding Sources		545,726		614,974		—			1,160,700

*	Presented on a tax-equivalent basis assuming a tax rate of 21% for 2018 and 35% for 2017 and 2016. The tax-equivalent adjustment was approximately $2,422,000 for 2018, $5,691,000 for 2017, and $5,550,000 for 2016.