(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act. | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act. | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
CASS INFORMATION SYSTEMS, INC. | ||||||||
By: | /s/ Martin H. Resch | |||||||
Name: | Martin H. Resch | |||||||
Title: | President and Chief Executive Officer | |||||||
By: | /s/ Michael J. Normile | |||||||
Name: | Michael J. Normile | |||||||
Title: | Executive Vice President and Chief Financial Officer |
Quarter Ended June 30, 2024 | Quarter Ended March 31, 2024 | Quarter Ended June 30, 2023 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2023 | |||||||||||||||||||||||||
Processing fees | $ | 21,103 | $ | 21,253 | $ | 19,386 | $ | 42,356 | $ | 38,899 | |||||||||||||||||||
Financial fees | 10,628 | 10,777 | 11,662 | 21,405 | 22,921 | ||||||||||||||||||||||||
Total fee revenue | $ | 31,731 | $ | 32,030 | $ | 31,048 | $ | 63,761 | $ | 61,820 | |||||||||||||||||||
Interest and fees on loans | 13,592 | 12,776 | 12,931 | 26,368 | 25,166 | ||||||||||||||||||||||||
Interest and dividends on securities | 4,383 | 4,437 | 4,677 | 8,820 | 9,471 | ||||||||||||||||||||||||
Interest on federal funds sold and other short-term investments | 3,267 | 4,441 | 2,100 | 7,708 | 5,213 | ||||||||||||||||||||||||
Total interest income | $ | 21,242 | $ | 21,654 | $ | 19,708 | $ | 42,896 | $ | 39,850 | |||||||||||||||||||
Interest expense | 5,312 | 5,178 | 3,694 | 10,490 | 6,938 | ||||||||||||||||||||||||
Net interest income | $ | 15,930 | $ | 16,476 | $ | 16,014 | $ | 32,406 | $ | 32,912 | |||||||||||||||||||
(Provision for) release of credit losses | (400) | (95) | 120 | (495) | 460 | ||||||||||||||||||||||||
Loss on sale of investment securities | (13) | — | (199) | (13) | (160) | ||||||||||||||||||||||||
Other | 1,342 | 1,267 | 1,224 | 2,609 | 2,520 | ||||||||||||||||||||||||
Total revenues | $ | 48,590 | $ | 49,678 | $ | 48,207 | $ | 98,268 | $ | 97,552 | |||||||||||||||||||
Salaries and commissions | 24,259 | 23,976 | 23,617 | 48,235 | 46,222 | ||||||||||||||||||||||||
Share-based compensation | 474 | 1,226 | 909 | 1,700 | 2,858 | ||||||||||||||||||||||||
Other benefits | 5,124 | 5,405 | 4,906 | 10,529 | 10,378 | ||||||||||||||||||||||||
Total personnel expenses | $ | 29,857 | $ | 30,607 | $ | 29,432 | $ | 60,464 | $ | 59,458 | |||||||||||||||||||
Occupancy | 826 | 861 | 907 | 1,687 | 1,762 | ||||||||||||||||||||||||
Equipment | 1,988 | 1,881 | 1,749 | 3,869 | 3,399 | ||||||||||||||||||||||||
Other | 10,122 | 7,322 | 7,251 | 17,444 | 15,092 | ||||||||||||||||||||||||
Total operating expenses | $ | 42,793 | $ | 40,671 | $ | 39,339 | $ | 83,464 | $ | 79,711 | |||||||||||||||||||
Income from operations before income taxes | $ | 5,797 | $ | 9,007 | $ | 8,868 | $ | 14,804 | $ | 17,841 | |||||||||||||||||||
Income tax expense | 1,313 | 1,855 | 1,730 | 3,168 | 3,586 | ||||||||||||||||||||||||
Net income | $ | 4,484 | $ | 7,152 | $ | 7,138 | $ | 11,636 | $ | 14,255 | |||||||||||||||||||
Basic earnings per share | $ | .33 | $ | .53 | $ | .53 | $ | .86 | $ | 1.05 | |||||||||||||||||||
Diluted earnings per share | $ | .32 | $ | .52 | $ | .52 | $ | .84 | $ | 1.03 | |||||||||||||||||||
Share data: | |||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 13,538 | 13,530 | 13,553 | 13,534 | 13,576 | ||||||||||||||||||||||||
Weighted-average common shares outstanding assuming dilution | 13,822 | 13,785 | 13,854 | 13,804 | 13,859 |
(unaudited) June 30, 2024 | (unaudited) March 31, 2024 | December 31, 2023 | |||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 223,727 | $ | 192,803 | $ | 372,468 | |||||||||||
Securities available-for-sale, at fair value | 540,802 | 621,929 | 627,117 | ||||||||||||||
Loans | 1,061,991 | 1,036,997 | 1,014,318 | ||||||||||||||
Less: Allowance for credit losses | (13,633) | (13,299) | (13,089) | ||||||||||||||
Loans, net | $ | 1,048,358 | $ | 1,023,698 | $ | 1,001,229 | |||||||||||
Payments in advance of funding | 214,581 | 221,552 | 198,861 | ||||||||||||||
Premises and equipment, net | 33,469 | 32,613 | 30,093 | ||||||||||||||
Investments in bank-owned life insurance | 49,840 | 49,496 | 49,159 | ||||||||||||||
Goodwill and other intangible assets | 20,281 | 20,463 | 20,654 | ||||||||||||||
Accounts and drafts receivable from customers | 78,407 | 32,856 | 110,651 | ||||||||||||||
Other assets | 73,131 | 98,169 | 68,390 | ||||||||||||||
Total assets | $ | 2,282,596 | $ | 2,293,579 | $ | 2,478,622 | |||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||
Deposits | |||||||||||||||||
Non-interest bearing | $ | 372,031 | $ | 412,879 | $ | 524,359 | |||||||||||
Interest-bearing | 640,315 | 666,213 | 616,455 | ||||||||||||||
Total deposits | $ | 1,012,346 | $ | 1,079,092 | $ | 1,140,814 | |||||||||||
Accounts and drafts payable | 996,832 | 944,793 | 1,071,369 | ||||||||||||||
Other liabilities | 43,493 | 40,207 | 36,630 | ||||||||||||||
Total liabilities | $ | 2,052,671 | $ | 2,064,092 | $ | 2,248,813 | |||||||||||
Shareholders’ equity: | |||||||||||||||||
Common stock | $ | 7,753 | $ | 7,753 | $ | 7,753 | |||||||||||
Additional paid-in capital | 204,128 | 204,361 | 208,007 | ||||||||||||||
Retained earnings | 149,236 | 148,845 | 145,782 | ||||||||||||||
Common shares in treasury, at cost | (81,554) | (82,316) | (84,264) | ||||||||||||||
Accumulated other comprehensive loss | (49,638) | (49,156) | (47,469) | ||||||||||||||
Total shareholders’ equity | $ | 229,925 | $ | 229,487 | $ | 229,809 | |||||||||||
Total liabilities and shareholders’ equity | $ | 2,282,596 | $ | 2,293,579 | $ | 2,478,622 |
Quarter Ended June 30, 2024 | Quarter Ended March 31, 2024 | Quarter Ended June 30, 2023 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2023 | |||||||||||||||||||||||||
Average interest-earning assets | $ | 1,958,427 | $ | 2,063,239 | $ | 2,010,771 | $ | 2,010,833 | $ | 2,086,333 | |||||||||||||||||||
Average loans | 1,039,461 | 1,016,246 | 1,075,891 | 1,027,854 | 1,076,055 | ||||||||||||||||||||||||
Average securities available-for-sale | 589,480 | 635,422 | 686,777 | 612,451 | 705,703 | ||||||||||||||||||||||||
Average short-term investments | 265,291 | 352,163 | 185,230 | 308,727 | 239,886 | ||||||||||||||||||||||||
Average payments in advance of funding | 213,185 | 194,338 | 254,869 | 203,761 | 247,918 | ||||||||||||||||||||||||
Average assets | 2,308,045 | 2,381,582 | 2,370,359 | 2,344,813 | 2,434,494 | ||||||||||||||||||||||||
Average non-interest bearing deposits | 407,079 | 447,900 | 552,718 | 427,489 | 553,178 | ||||||||||||||||||||||||
Average interest-bearing deposits | 638,328 | 631,622 | 509,319 | 634,975 | 549,985 | ||||||||||||||||||||||||
Average borrowings | 11 | 11 | 3,199 | 11 | 4,509 | ||||||||||||||||||||||||
Average interest-bearing liabilities | 638,339 | 631,633 | 512,518 | 634,986 | 554,494 | ||||||||||||||||||||||||
Average accounts and drafts payable | 996,944 | 1,035,833 | 1,049,281 | 1,016,388 | 1,072,105 | ||||||||||||||||||||||||
Average shareholders’ equity | $ | 225,265 | $ | 226,669 | $ | 214,066 | $ | 225,967 | $ | 211,940 |
Quarter Ended June 30, 2024 | Quarter Ended March 31, 2024 | Quarter Ended June 30, 2023 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2023 | |||||||||||||||||||||||||
Return on average equity | 8.01% | 12.66% | 13.37% | 10.36% | 13.56% | ||||||||||||||||||||||||
Return on average assets | 0.78% | 1.20% | 1.21% | 1.00% | 1.18% | ||||||||||||||||||||||||
Net interest margin (1) | 3.32% | 3.26% | 3.25% | 3.29% | 3.24% | ||||||||||||||||||||||||
Average interest-earning assets yield (1) | 4.41% | 4.27% | 3.98% | 4.34% | 3.91% | ||||||||||||||||||||||||
Average loan yield | 5.26% | 5.06% | 4.82% | 5.16% | 4.72% | ||||||||||||||||||||||||
Average investment securities yield (1) | 2.84% | 2.71% | 2.64% | 2.77% | 2.63% | ||||||||||||||||||||||||
Average short-term investment yield | 4.95% | 5.07% | 4.55% | 5.02% | 4.38% | ||||||||||||||||||||||||
Average cost of total deposits | 2.04% | 1.93% | 1.38% | 1.99% | 1.25% | ||||||||||||||||||||||||
Average cost of interest-bearing deposits | 3.35% | 3.30% | 2.88% | 3.32% | 2.50% | ||||||||||||||||||||||||
Average cost of interest-bearing liabilities | 3.35% | 3.30% | 2.89% | 3.32% | 2.52% | ||||||||||||||||||||||||
Allowance for credit losses to loans | 1.28% | 1.28% | 1.25% | 1.28% | 1.25% | ||||||||||||||||||||||||
Non-performing loans to total loans | —% | —% | —% | —% | —% | ||||||||||||||||||||||||
Net loan charge-offs (recoveries) to loans | —% | —% | —% | —% | —% | ||||||||||||||||||||||||
Common equity tier 1 ratio | 14.32% | 14.84% | 13.66% | 14.32% | 13.66% | ||||||||||||||||||||||||
Total risk-based capital ratio | 15.08% | 15.60% | 14.39% | 15.08% | 14.39% | ||||||||||||||||||||||||
Leverage ratio | 11.32% | 10.92% | 10.65% | 11.32% | 10.65% | ||||||||||||||||||||||||
(1) Yields are presented on tax-equivalent basis assuming a tax rate of 21%. | |||||||||||||||||||||||||||||
Transportation invoice volume | 8,879 | 8,771 | 9,193 | 17,649 | 18,291 | ||||||||||||||||||||||||
Transportation dollar volume | $ | 9,081,343 | $ | 8,939,646 | $ | 9,711,801 | $ | 18,020,989 | $ | 19,980,252 | |||||||||||||||||||
Facility expense transaction volume | 4,337 | 4,264 | 3,467 | 8,601 | 6,935 | ||||||||||||||||||||||||
Facility expense dollar volume | $ | 5,039,283 | $ | 5,329,566 | $ | 4,578,490 | $ | 10,368,848 | $ | 9,891,875 |
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