2018 Q2 Form 10-Q Financial Statement

#000070134718000040 Filed on August 07, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $48.51M $45.08M
YoY Change 7.61% 7.67%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.700M $2.900M
YoY Change -6.9% -25.64%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $5.837M $3.451M
YoY Change 69.14% 52.63%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $18.16M $19.67M
YoY Change -7.68% 6.5%
Income Tax $3.935M $7.421M
% Of Pretax Income 21.67% 37.73%
Net Earnings $14.22M $12.03M
YoY Change 18.29% -0.92%
Net Earnings / Revenue 29.32% 26.67%
Basic Earnings Per Share $0.48 $0.39
Diluted Earnings Per Share $0.48 $0.39
COMMON SHARES
Basic Shares Outstanding 29.51M shares 30.57M shares
Diluted Shares Outstanding 29.71M shares 30.80M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.528B $1.661B
YoY Change -7.98% 4.76%
Cash & Equivalents $89.50M $140.6M
Short-Term Investments $1.439B $1.520B
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $47.00M $49.25M
YoY Change -4.56% 1.82%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $100.0K $400.0K
YoY Change -75.0% -94.44%
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $5.682B $5.533B
YoY Change 2.68% 4.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $87.00M $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $92.80M $92.80M
YoY Change 0.0% 0.0%
Other Long-Term Liabilities $42.00M $41.00M
YoY Change 2.44% -0.97%
Total Long-Term Liabilities $134.8M $133.8M
YoY Change 0.75% -0.3%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $134.8M $133.8M
Total Liabilities $5.201B $5.020B
YoY Change 3.6% 5.35%
SHAREHOLDERS EQUITY
Retained Earnings -$70.44M -$94.27M
YoY Change -25.28% -23.19%
Common Stock $485.4M $519.4M
YoY Change -6.54% -3.54%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $480.7M $512.9M
YoY Change
Total Liabilities & Shareholders Equity $5.682B $5.533B
YoY Change 2.68% 4.74%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income $14.22M $12.03M
YoY Change 18.29% -0.92%
Depreciation, Depletion And Amortization $2.700M $2.900M
YoY Change -6.9% -25.64%
Cash From Operating Activities $20.40M $13.00M
YoY Change 56.92% -50.94%
INVESTING ACTIVITIES
Capital Expenditures -$1.100M -$2.500M
YoY Change -56.0% 66.67%
Acquisitions
YoY Change
Other Investing Activities -$11.00M -$50.70M
YoY Change -78.3% 11.43%
Cash From Investing Activities -$12.10M -$53.20M
YoY Change -77.26% 12.95%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 15.50M 74.70M
YoY Change -79.25% 301.61%
NET CHANGE
Cash From Operating Activities 20.40M 13.00M
Cash From Investing Activities -12.10M -53.20M
Cash From Financing Activities 15.50M 74.70M
Net Change In Cash 23.80M 34.50M
YoY Change -31.01% -1825.0%
FREE CASH FLOW
Cash From Operating Activities $20.40M $13.00M
Capital Expenditures -$1.100M -$2.500M
Free Cash Flow $21.50M $15.50M
YoY Change 38.71% -44.64%

Facts In Submission

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35259000 USD
CY2018Q2 us-gaap Available For Sale Securities Debt Maturities Rolling After Year Ten Amortized Cost Basis
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60389000 USD
CY2018Q2 us-gaap Available For Sale Securities Debt Maturities Rolling After Year Ten Fair Value
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59651000 USD
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50044000 USD
CY2018Q2 us-gaap Available For Sale Securities Debt Maturities Rolling Year Six Through Ten Fair Value
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49512000 USD
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132627000 USD
CY2018Q2 us-gaap Available For Sale Securities Debt Maturities Rolling Year Two Through Five Fair Value
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132431000 USD
CY2017Q4 us-gaap Available For Sale Securities Equity Securities
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825000 USD
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844000 USD
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96000000 USD
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583000 USD
us-gaap Bank Owned Life Insurance Income
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1700000 USD
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501000 USD
us-gaap Bank Owned Life Insurance Income
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819000 USD
CY2016Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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84341000 USD
CY2017Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
140551000 USD
CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2017Q4 us-gaap Cash And Due From Banks
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75318000 USD
CY2018Q2 us-gaap Cash And Due From Banks
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0.18
us-gaap Common Stock Dividends Per Share Declared
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0.34
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0.21
us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.40
us-gaap Common Stock Dividends Per Share Declared
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0.4
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CommonStockNoParValue
0
CY2018Q2 us-gaap Common Stock No Par Value
CommonStockNoParValue
0
CY2017Q4 us-gaap Common Stock Shares Authorized
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185000000 shares
CY2018Q2 us-gaap Common Stock Shares Authorized
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185000000 shares
CY2017Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
30024222 shares
CY2018Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
29489954 shares
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30024222 shares
CY2018Q2 us-gaap Common Stock Shares Outstanding
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29489954 shares
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503988000 USD
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485402000 USD
CY2017Q2 us-gaap Communication
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891000 USD
us-gaap Communication
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1791000 USD
CY2018Q2 us-gaap Communication
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746000 USD
us-gaap Communication
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1644000 USD
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15010000 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
29849000 USD
CY2018Q2 us-gaap Comprehensive Income Net Of Tax
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10705000 USD
us-gaap Comprehensive Income Net Of Tax
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10267000 USD
CY2017Q4 us-gaap Cost Method Investments
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6500000 USD
CY2018Q2 us-gaap Cost Method Investments
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9200000 USD
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0 USD
us-gaap Deferred Income Tax Expense Benefit
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13648000 USD
us-gaap Deferred Income Tax Expense Benefit
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7348000 USD
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4956354000 USD
CY2018Q2 us-gaap Deposits
Deposits
4979099000 USD
CY2017Q4 us-gaap Deposits Savings Deposits
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1481876000 USD
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1502284000 USD
us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
3150000 USD
us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
3177000 USD
CY2017Q2 us-gaap Derivative Gain Loss On Derivative Net
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80000 USD
us-gaap Derivative Gain Loss On Derivative Net
DerivativeGainLossOnDerivativeNet
-127000 USD
CY2018Q2 us-gaap Derivative Gain Loss On Derivative Net
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-36000 USD
us-gaap Derivative Gain Loss On Derivative Net
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12000 USD
us-gaap Dividend Income Operating
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24000 USD
CY2018Q2 us-gaap Dividend Income Operating
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3000 USD
us-gaap Dividend Income Operating
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18000 USD
us-gaap Dividends Common Stock Cash
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10432000 USD
us-gaap Dividends Common Stock Cash
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11875000 USD
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0.39
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.82
CY2018Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.48
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.96
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EarningsPerShareDiluted
0.39
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.81
CY2018Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.48
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.95
CY2017Q2 us-gaap Equipment Expense
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967000 USD
us-gaap Equipment Expense
EquipmentExpense
1809000 USD
CY2018Q2 us-gaap Equipment Expense
EquipmentExpense
1044000 USD
us-gaap Equipment Expense
EquipmentExpense
2112000 USD
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600000 USD
CY2018Q2 us-gaap Equity Method Investments
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100000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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CY2018Q2 us-gaap Interest Income Deposits With Financial Institutions
InterestIncomeDepositsWithFinancialInstitutions
117000 USD
us-gaap Interest Income Deposits With Financial Institutions
InterestIncomeDepositsWithFinancialInstitutions
201000 USD
CY2017Q2 us-gaap Interest Income Expense After Provision For Loan Loss
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43911000 USD
us-gaap Interest Income Expense After Provision For Loan Loss
InterestIncomeExpenseAfterProvisionForLoanLoss
85246000 USD
CY2018Q2 us-gaap Interest Income Expense After Provision For Loan Loss
InterestIncomeExpenseAfterProvisionForLoanLoss
42140000 USD
us-gaap Interest Income Expense After Provision For Loan Loss
InterestIncomeExpenseAfterProvisionForLoanLoss
84673000 USD
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41629000 USD
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
82884000 USD
CY2018Q2 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
42672000 USD
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
84994000 USD
CY2017Q2 us-gaap Interest Income Securities Tax Exempt
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974000 USD
us-gaap Interest Income Securities Tax Exempt
InterestIncomeSecuritiesTaxExempt
1953000 USD
CY2018Q2 us-gaap Interest Income Securities Tax Exempt
InterestIncomeSecuritiesTaxExempt
933000 USD
us-gaap Interest Income Securities Tax Exempt
InterestIncomeSecuritiesTaxExempt
1866000 USD
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InterestIncomeSecuritiesTaxable
8481000 USD
us-gaap Interest Income Securities Taxable
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16616000 USD
CY2018Q2 us-gaap Interest Income Securities Taxable
InterestIncomeSecuritiesTaxable
8717000 USD
us-gaap Interest Income Securities Taxable
InterestIncomeSecuritiesTaxable
17560000 USD
us-gaap Fees And Commissions Mortgage Banking And Servicing
FeesAndCommissionsMortgageBankingAndServicing
3900000 USD
CY2018Q2 us-gaap Fees And Commissions Mortgage Banking And Servicing
FeesAndCommissionsMortgageBankingAndServicing
1775000 USD
us-gaap Fees And Commissions Mortgage Banking And Servicing
FeesAndCommissionsMortgageBankingAndServicing
3622000 USD
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50001000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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-166000 USD
CY2018Q2 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0 USD
CY2018Q2 us-gaap Fair Value Assets Level2 To Level1 Transfers Amount
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0 USD
CY2018Q2 us-gaap Fair Value Liabilities Level1 To Level2 Transfers Amount
FairValueLiabilitiesLevel1ToLevel2TransfersAmount
0 USD
CY2018Q2 us-gaap Fair Value Liabilities Level2 To Level1 Transfers Amount
FairValueLiabilitiesLevel2ToLevel1TransfersAmount
0 USD
CY2018Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Liability Transfers Out Of Level3
FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersOutOfLevel3
0 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Liability Transfers Out Of Level3
FairValueMeasurementWithUnobservableInputsReconciliationLiabilityTransfersOutOfLevel3
0 USD
CY2018Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetTransfersOutOfLevel3
0 USD
us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetTransfersOutOfLevel3
0 USD
CY2017Q4 us-gaap Federal Home Loan Bank Stock
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CY2018Q2 us-gaap Federal Home Loan Bank Stock
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10246000 USD
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964000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
1828000 USD
CY2018Q2 us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
1017000 USD
us-gaap Fees And Commissions Fiduciary And Trust Activities
FeesAndCommissionsFiduciaryAndTrustActivities
1973000 USD
CY2017Q2 us-gaap Fees And Commissions Mortgage Banking And Servicing
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1957000 USD
CY2018Q2 us-gaap Financing Receivable Allowance For Credit Losses Collectively Evaluated For Impairment
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48181000 USD
CY2017Q4 us-gaap Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1
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0 USD
CY2018Q2 us-gaap Financing Receivable Allowance For Credit Losses Individually Evaluated For Impairment1
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0 USD
CY2017Q4 us-gaap Financing Receivable Collectively Evaluated For Impairment
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3746826000 USD
CY2018Q2 us-gaap Financing Receivable Collectively Evaluated For Impairment
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3859376000 USD
CY2017Q4 us-gaap Financing Receivable Individually Evaluated For Impairment
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21280000 USD
CY2018Q2 us-gaap Financing Receivable Individually Evaluated For Impairment
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19834000 USD
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us-gaap Financing Receivable Modifications Post Modification Recorded Investment2
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653000 USD
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0 loan
CY2017Q4 us-gaap Financing Receivable Recorded Investment Current
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2775000 USD
CY2018Q2 us-gaap Financing Receivable Recorded Investment Nonaccrual Status
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2914000 USD
us-gaap Financing Receivables Impaired Troubled Debt Restructuring Write Down
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0 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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1439000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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793000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
934000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
1113000 USD
CY2018Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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1323000 USD
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CY2018Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
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17849000 USD
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FiniteLivedIntangibleAssetsNet
16425000 USD
us-gaap Finitelived Intangible Assets Acquired1
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807000 USD
CY2017Q2 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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130000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
293000 USD
CY2018Q2 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
277000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
488000 USD
CY2017Q2 us-gaap Gain Loss On Sale Of Loans And Leases
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1084000 USD
us-gaap Gain Loss On Sale Of Loans And Leases
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2396000 USD
CY2018Q2 us-gaap Gain Loss On Sale Of Loans And Leases
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959000 USD
us-gaap Gain Loss On Sale Of Loans And Leases
GainLossOnSaleOfLoansAndLeases
1931000 USD
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-1640000 USD
us-gaap Gain Loss On Sale Of Securities Net
GainLossOnSaleOfSecuritiesNet
-1640000 USD
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0 USD
us-gaap Gain Loss On Sale Of Securities Net
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0 USD
CY2017Q4 us-gaap Held To Maturity Securities
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191753000 USD
CY2018Q2 us-gaap Held To Maturity Securities
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158156000 USD
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106000 USD
CY2018Q2 us-gaap Held To Maturity Securities Accumulated Unrecognized Holding Gain
HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain
3000 USD
CY2017Q4 us-gaap Held To Maturity Securities Accumulated Unrecognized Holding Loss
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2658000 USD
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5829000 USD
CY2018Q2 us-gaap Held To Maturity Securities Debt Maturities Without Single Maturity Date Fair Value
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152330000 USD
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158156000 USD
CY2017Q4 us-gaap Held To Maturity Securities Fair Value
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189201000 USD
CY2018Q2 us-gaap Held To Maturity Securities Fair Value
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152330000 USD
CY2017Q2 us-gaap Impaired Financing Receivable Average Recorded Investment
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28560000 USD
us-gaap Impaired Financing Receivable Average Recorded Investment
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29817000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Average Recorded Investment
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20058000 USD
us-gaap Impaired Financing Receivable Average Recorded Investment
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20687000 USD
CY2017Q2 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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1145000 USD
us-gaap Impaired Financing Receivable Interest Income Accrual Method
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1313000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Interest Income Accrual Method
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226000 USD
us-gaap Impaired Financing Receivable Interest Income Accrual Method
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429000 USD
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21280000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Recorded Investment
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19834000 USD
CY2017Q4 us-gaap Impaired Financing Receivable Related Allowance
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0 USD
CY2018Q2 us-gaap Impaired Financing Receivable Related Allowance
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0 USD
CY2017Q4 us-gaap Impaired Financing Receivable Unpaid Principal Balance
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27799000 USD
CY2018Q2 us-gaap Impaired Financing Receivable Unpaid Principal Balance
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26353000 USD
CY2017Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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19446000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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39335000 USD
CY2018Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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18046000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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36015000 USD
CY2017Q2 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
151000 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
212000 USD
CY2018Q2 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
37000 USD
us-gaap Interest Paid
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5461000 USD
us-gaap Interest Paid
InterestPaid
10552000 USD
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16581000 USD
CY2018Q2 us-gaap Interest Receivable
InterestReceivable
16606000 USD
CY2017Q4 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
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7088000 USD
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9362000 USD
CY2017Q2 us-gaap Labor And Related Expense
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17983000 USD
us-gaap Labor And Related Expense
LaborAndRelatedExpense
35370000 USD
CY2018Q2 us-gaap Labor And Related Expense
LaborAndRelatedExpense
18783000 USD
us-gaap Labor And Related Expense
LaborAndRelatedExpense
37288000 USD
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5123673000 USD
CY2018Q2 us-gaap Liabilities
Liabilities
5200851000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
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5623708000 USD
CY2018Q2 us-gaap Liabilities And Stockholders Equity
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5681519000 USD
us-gaap Life Insurance Corporate Or Bank Owned Change In Value
LifeInsuranceCorporateOrBankOwnedChangeInValue
2170000 USD
us-gaap Life Insurance Corporate Or Bank Owned Change In Value
LifeInsuranceCorporateOrBankOwnedChangeInValue
819000 USD
CY2016Q4 us-gaap Loans And Leases Receivable Allowance
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56631000 USD
CY2017Q1 us-gaap Loans And Leases Receivable Allowance
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55369000 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
80000 USD
CY2017Q2 us-gaap Income Tax Credits And Adjustments
IncomeTaxCreditsAndAdjustments
260000 USD
us-gaap Income Tax Credits And Adjustments
IncomeTaxCreditsAndAdjustments
526000 USD
CY2018Q2 us-gaap Income Tax Credits And Adjustments
IncomeTaxCreditsAndAdjustments
153000 USD
us-gaap Income Tax Credits And Adjustments
IncomeTaxCreditsAndAdjustments
305000 USD
CY2017Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
7421000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
14231000 USD
CY2018Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
3822000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
7514000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
4000000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
22000 USD
us-gaap Increase Decrease In Deposits
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278181000 USD
us-gaap Increase Decrease In Deposits
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22745000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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8279000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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5274000 USD
CY2017Q2 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
45080000 USD
us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
89293000 USD
CY2018Q2 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
48509000 USD
us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
95819000 USD
CY2017Q2 us-gaap Interest And Fee Income Loans And Leases
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Revenue Recognition</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accounting Standards Codification ("ASC") 606, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Revenue from Contracts with Customers"</font><font style="font-family:inherit;font-size:10pt;">, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts to provide goods or services to its customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services. Revenue is recognized as performance obligations are satisfied.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. Our principal source of revenue is derived from interest income on financial instruments, such as our loan and investment securities portfolios, as well as revenue related to our mortgage banking activities. These revenue-generating transactions are out of scope of ASC 606, but are subject to other GAAP and discussed elsewhere within our disclosures.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We also generate other revenue in connection with our broad range of banking products and financial services. Descriptions of our other revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of income as components of other operating income are as follows:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Service charges on deposit accounts</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue from service charges on deposit accounts includes general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as stop payment fees). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Service Charges and Fees</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue from other service charges and fees includes cards and payments income, safe deposit rental income and other service charges, commissions and fees.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cards and payments income includes interchange fees from debit cards processed through card association networks, merchant services, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees are recognized as transactions occur. Interchange expenses related to cards and payments income are presented gross in other operating expense. Merchant services income represents account management fees and transaction fees charged to merchants for the processing of card association network transactions. Merchant services revenue is recognized as transactions occur, or as services are performed.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other service charges, commissions and fees include automated teller machines ("ATM") surcharge and interchange fees, bill payment fees, cashier&#8217;s check and money order fees, wire transfer fees, loan brokerage fees, and commissions on sales of insurance, broker-dealer products, letters of credit, and travelers&#8217; checks. Revenue from these fees and commissions is recorded in a manner that reflects the timing of when transactions occur, and as services are provided.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based on the nature of the commission agreement with the broker-dealer and each insurance provider, we may recognize revenue from broker-dealer and insurance commissions over time or at a point-in-time as our performance obligation is satisfied.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Income from Fiduciary Activities</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Income from fiduciary activities includes fees from wealth management, trust, custodial and escrow services provided to individual and institutional customers. Revenue is generally recognized monthly based on a minimum annual fee and/or the market value of assets in custody. Additional fees are recognized for transactional activity.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue from trade execution and brokerage services is earned through commissions from trade execution on behalf of clients. Revenue from these transactions is recognized at the trade date. Any ongoing service fees are recognized on a monthly basis as services are performed.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fees on Foreign Exchange</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company provides foreign currency exchange services to customers, whereby cash can be converted to different foreign currencies, and vice versa. As a result of the services, a gain or loss is recognized on foreign currency transactions, as well as income related to commissions and fees earned on each transaction. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenue from the commissions and fees earned on the transactions fall within the scope of ASC 606, and is recorded in a manner that reflects the timing of when transactions occur, and as services are provided. Realized and unrealized gains or losses related to foreign currency are out of scope of ASC 606.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Loan Placement Fees</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Loan placement fees primarily represent revenues earned by the Company for loan placement and underwriting. Revenues for these services are recorded at a point-in-time, upon completion of a contractually identified transaction, or when an advisory opinion is provided.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's equity investment securities in the prior year have been reclassified from available-for-sale debt securities to conform to the current year's presentation in accordance with Accounting Standards Update ("ASU") 2016-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities</font><font style="font-family:inherit;font-size:10pt;">.</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">&quot;</font><font style="font-family:inherit;font-size:10pt;"> The reclassification had no impact on the Company's reported net income or shareholders' equity.</font></div></div>

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