Slide 1: The Power to Deliver Solutions
The Power to Deliver Solutions Around the world, leading enterprises rely on Cass for our vertical expertise, processing power, and global payment network to execute critical financial transactions while driving greater control and efficiency across critical business expenses. Q3 2022 INVESTOR PRESE
Slide 2: Table of Contents
TABLE OF CONTENTS 3 Forward-Looking Statements 4 Cass at a Glance 6 Financial Performance 9 Revenue & Expenses 15 Balance Sheet 19 Capital 20 ESG Highlights 21 Leadership and Shareholder Information www.cassinfo.com / © 2022 Cass Information Systems 2
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “poten
Slide 4: Cass at a Glance
CASS AT A GLANCE www.cassinfo.com / © 2022 Cass Information Systems 4
Slide 5: Overview
OVERVIEW INFORMATION SYSTEMS / PAYMENTS + Cass is an information services company that + Transportation information systems provides freight invoice audit and payment services in the contract market processes freight and facility payments for some of + Facilities expense management provides payments
Slide 6: Q3 2022 Financial Performance
Q3 2022 FINANCIAL PERFORMANCE www.cassinfo.com / © 2022 Cass Information Systems 6
Slide 7: Q3 2022 Financial Highlights
Q3 2022 FINANCIAL HIGHLIGHTS NET INCOME DILUTED EPS RETURN ON EQUITY $8.80M $0.64 16.84% $6.81M $0.48 10.61% + Record net income of $8.8 million + Record diluted EPS of $0.64 + Return on average equity of 16.84% Q3 '21 Q3 '22 Q3 '21 Q3 '22 Q3 '21 Q3 '22 + Record quarterly transportation dollar TRANS
Slide 8: Financial Performance
FINANCIAL PERFORMANCE TOTAL REVENUE NET INCOME $47.2M $8.80M $42.1M $44.2M $8.56M $38.7M $40.0M $8.26M $7.70M + Cass has continued to convert $6.81M revenue growth into bottom line net income growth over the past 5 quarters Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 + High
Slide 9: Revenue & Expenses
REVENUE & EXPENSES www.cassinfo.com / © 2022 Cass Information Systems 9
Slide 10: Financial Fees
FINANCIAL FEES FINANCIAL FEES + The change quarter to quarter is highly correlated to transportation and facility dollar $10.5M $10.6M $11.3M volumes which have been trending higher due to higher energy prices and inflationary $9.6M $8.6M pressures + As transportation and facility volumes has increa
Slide 11: Processing Fees
PROCESSING FEES + The change quarter to quarter is generally correlated to transportation and facility invoice volumes, although Cass has other processing fee revenue tied to CassPay and Cass Commercial Bank. + As compared to the same quarter last year, processing fees are higher primarily due to gr
Slide 12: Net Interest Income
NET INTEREST INCOME + The recent increase in short and long-term interest rates has had a positive impact on net interest income and margin, jumping from a low of 2.30% up to 2.90% + The combination of increasing interest earning assets and rising interest rates is expected to enable Cass to expand
Slide 13: Impact of Interest Rates
IMPACT OF INTEREST RATES + Cass earns net interest income off the float generated by its payment business in addition to Cass Commercial Bank + As interest rates have decreased to historically low levels, the net interest margin has also deteriorated, but Cass is well positioned for rising interest
Slide 14: Operating Expense
OPERATING EXPENSE EXPENSE AS A % OF REVENUE 79.40% 78.40% 76.10% 76.90% 75.60% + Personnel expense increased during the third quarter of 2022 as compared to the same quarter last year as a result of merit increases, wage pressures and a 7.5% increase in average FTEs Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '2
Slide 15: Balance Sheet
BALANCE SHEET www.cassinfo.com / © 2022 Cass Information Systems 15
Slide 16: Loans
LOANS + Cass has experienced good organic loan growth in recent quarters, in particular its specialty franchise, faith-based and investment grade lease niches + Cass has not incurred a loan charge-off since 2015 ($ in millions) PORTFOLIO COMPOSITION 9/30/22 Portfolio Composition 9/30/21 12/31/21 3/
Slide 17: Investments
INVESTMENTS + Cass has a high quality investment portfolio which increased throughout 2021 due to significant increases in accounts and drafts payable and deposits at Cass Commercial Bank + The portfolio yield is expected to rise gradually in a rising interest rate environment ENDING INVESTMENTS INV
Slide 18: Funding
FUNDING + For 3Q 2022, 74.8% of average funding was non-interest bearing + Accounts and drafts payable have increased due to rising energy prices and inflationary pressures + Deposits declined slightly during 3Q2022, partially due to tightening monetary policy AVERAGE DEPOSITS AND ACCOUNTS & FUNDING
Slide 19: Capital
CAPITAL + $112.0 million in excess of capital over Tier 1 leverage ratio at 9/30/22 9.08% 7.0% common equity tier 1 risk-based regulatory requirement Common equity tier 1 risk- + Maintain excess capital to support based ratio at 9/30/22 13.33% organic balance sheet growth and opportunistic acquisiti
Slide 20: Environmental, Social and Governance (ESG) Highlights
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) HIGHLIGHTS In 2022, we published our inaugural ESG report, a copy of which is available on our Investor Relations site. To read more from the Cass ESG report, please follow this link to cassinfo.com www.cassinfo.com / © 2022 Cass Information Systems 20
Slide 21: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION www.cassinfo.com / © 2022 Cass Information Systems 21
Slide 22: Board of Directors
BOARD OF DIRECTORS Eric H. Brunngraber Wendy J. Henry Sally H. Roth Chairman and Retired Managing Partner, Retired Area President — Chief Executive Officer BKD, LLP Upper Midwest, Regions Bank Ralph W. Clermont James J. Lindemann Joseph D. Rupp Retired Managing Partner, Retired Executive Lead Direct
Slide 23: Leadership Council
LEADERSHIP COUNCIL Cory J. Bricker Carl N. Friedholm Michael J. Normile Anthony G. Urban Vice President, Vice President and General Manager, Executive Vice President and Executive Vice President, Integrated Financial Solutions Telecom Expense Management Chief Financial Officer Transportation Informa
Slide 24: Shareholder Information
SHAREHOLDER INFORMATION CORPORATE HEADQUARTERS SHAREHOLDER WEBSITE TRANSFER AGENT Cass Information Systems, Inc. www.computershare.com/investor Shareholder correspondence 12444 Powerscourt Drive, Suite 550 should be mailed to: Saint Louis, Missouri 63131 INDEPENDENT AUDITORS Computershare 314.506.55
Slide 25: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc.