8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): July 22, 2010

CASS INFORMATION SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Missouri	000-20827	43-1265338
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

13001 Hollenberg Drive Bridgeton, Missouri	63044
(Address of principal executive offices)	(Zip Code)

(314) 506-5500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ 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.

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2010, Cass Information Systems, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of fiscal 2010. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information reported under this Item 2.02 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01. Other Events.

Also on July 22, 2010, the Company announced a third quarter cash dividend of $0.14 per share, payable September 15, 2010 to shareholders of record as of September 3, 2010.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press release issued by Cass Information Systems, Inc. dated July 22, 2010.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 22, 2010

CASS INFORMATION SYSTEMS, INC.
By:	/s/ Eric H. Brunngraber
Name:	Eric H. Brunngraber
Title:	President and Chief Executive Officer
By:	/s/ P. Stephen Appelbaum
Name:	P. Stephen Appelbaum
Title:	Chief Financial Officer

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EX-99.1

Exhibit 99.1

Contact: Contact Kenn Entringer at Casey Communications, Inc., (314) 721-2828

kentringer@caseycomm.com

July 22, 2010

Cass Information Systems, Inc. Reports Record

2^nd Quarter 2010 Earnings; 33% Increase over Q2 2009

Also Declares Regular Quarterly Dividend

ST. LOUIS – Cass Information Systems, Inc. (NASDAQ: CASS), the nation’s leading provider of transportation, utility and telecom invoice payment and information services, reported record second quarter 2010 earnings of $.52 per fully-diluted share, a 33% increase over the $.39 per fully diluted share it earned in the second quarter of 2009. Net income for the period was $4.9 million, a nearly 34% increase over the $3.7 million reported in 2009.

	2nd Quarter				%		YTD				%
	2010		2009		Change		2010		2009		Change
Transportation Dollar Volume	$	4.2 billion	$	3.4 billion	23.6	%	$	8.0 billion	$	6.8 billion	17.5	%
Utility Dollar Volume	$	2.5 billion	$	2.3 billion	8.3	%	$	5.1 billion	$	4.8 billion	6.3	%
Revenues	$	23.8 million	$	21.7 million	9.2	%	$	46.5 million	$	43.4 million	7.1	%
Net Income	$	4.9 million	$	3.7 million	33.8	%	$	9.6 million	$	7.6 million	27.2	%
Diluted Earnings per Share	$	.52	$	.39	33.3	%	$	1.02	$	.81	25.9	%

2010 2nd Quarter Recap

Increased activity from both base customers and new customers helped transportation transaction dollar volume surge more than 23%, with utility transaction volume up a steady 8%. Overall, revenues for the quarter grew to $23.8 million, a 9% increase over the $21.7 million posted in 2009.

Operating expenses were up less than 1%, or $53,000, as Cass continued to concentrate on cost control.

Six-Month 2010 Recap

For the six months ended June 30, 2010, the company earned $1.02 per fully diluted share, a 26% increase over the $.81 per fully diluted share earned in the first half of 2009. Net income was $9.6 million, 27% higher than the $7.6 million earned in 2009. Revenues rose 7%, from $43.4 million in 2009 to $46.5 million in 2010.

Operating expenses were essentially flat compared to 2009.

“Posting our record results in the second quarter was even more gratifying with all of our businesses – transportation, utility and telecom invoice processing plus our commercial bank subsidiary – making positive contributions,” said Eric H. Brunngraber, Cass president and chief executive officer. “We believe the company is solidly positioned to capitalize on improving economic conditions. Our continuing focus will be on strategies that promise to enhance our competitive position in the markets we serve.”

Cash Dividend Declared

On July 19, 2010, the company’s board of directors declared a third quarter dividend of $.14 per share payable September 15, 2010 to shareholders of record September 3, 2010. Cass has continuously paid regularly scheduled cash dividends since 1934.

About Cass Information Systems

Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses over $24 billion annually on behalf of customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington, Kansas. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000^® Index and ranked #65 on the 2009 Fortune Small Business FSB 100 list of the fastest-growing public companies in America.

Note to Investors

Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the company’s actual results, see the company’s reports filed from time to time with the Securities and Exchange Commission including the company’s annual report on Form 10-K for the year ended December 31, 2009.

Selected Consolidated Financial Data

The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended June 30, 2010 and 2009:

	Quarter Ended 6/30/10			Quarter Ended 6/30/09			Six Months Ended 6/30/10			Six Months Ended 6/30/09
Transportation Invoice Volume		6,716			5,716			12,733			11,111
Transportation Dollar Volume	$	4,193,903		$	3,391,822		$	7,962,844		$	6,778,562
Utility Transaction Volume		3,045			2,823			6,100			5,653
Utility Dollar Volume	$	2,451,775		$	2,263,404		$	5,059,874		$	4,759,101
Payment and Processing Fees	$	13,533		$	12,036		$	26,278		$	23,980
Net Investment Income		9,782			9,144			19,334			18,246
Gain on Sales of Securities		—			83			—			202
Other		435			479			915			1,018
Total Revenues	$	23,750		$	21,742		$	46,527		$	43,446
Salaries and Benefits	$	12,683		$	12,730		$	25,173		$	25,179
Occupancy		611			571			1,183			1,186
Equipment		916			833			1,814			1,674
Other		2,640			2,663			4,877			5,048
Total Operating Expenses	$	16,850		$	16,797		$	33,047		$	33,087
Income from Operations before Income Taxes	$	6,900		$	4,945		$	13,480		$	10,359
Provision for Income Taxes		2,000			1,284			3,831			2,775
Net Income	$	4,900		$	3,661		$	9,649		$	7,584
Basic Earnings per Share	$	.52		$	.40		$	1.03		$	.83
Diluted Earnings per Share	$	.52		$	.39		$	1.02		$	.81
Average Earning Assets	$	1,017,818		$	831,669		$	1,001,350		$	817,884
Net Interest Margin		4.77	%		5.02	%		4.77	%		5.16	%
Allowance for Loan Losses to Loans		1.49	%		1.14	%		1.49	%		1.14	%
Non-performing Loans to Total Loans		.22	%		.32	%		.22	%		.32	%
Net Loan (Recoveries) Charge-offs to Loans		—			(.01	)%		.03	%		.03	%
Provision for Loan Losses	$	1,150		$	300		$	2,050		$	700