Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Investor Presentation (2022)
34 slides from Cass Information Systems's investor presentation, 2022
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. 2022 INVESTOR PRESENTA
Slide 2: Contents
Contents Forward-Looking Statements 3 Cass at a Glance 4 How Cass Creates Value 5 Why Clients Choose Cass 6 Transaction Growth and Financial Highlights 7 Key Earnings Growth Strategies 17 Information Services Business Overview 18 Banking Services Business Overview 27 Environmental, Social and Govern
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 TOTAL ASSETS MARKET CAP $2.6B $540M As of 12/31/21 As of 12/31/21 TOTAL REVENUE GLOBAL OPERATIONS $154M Global service locations For year ended 12/31/21 www.cassinfo.com | © 2022 Cass Information Systems 4
Slide 5: How Cass Creates Value
How Cass Creates Value At Cass, we provide the means to accept We are the trusted third party, validating highly diverse inputs spanning paper, digitized pricing and contractual agreements. documents, digital data, and data feeds in We are recognized by the high level of multiple formats. service we
Slide 6: Why Clients Choose Cass
Why Clients Choose Cass We are recognized as an industry leader in the Because we have CCB, we can be nimble in freight, audit and payment space. Since 1995, our ability to drive bank product offerings the Cass Freight Index®, referenced needed by our clients. everywhere from the Wall Street Journal
Slide 7: Five-Year Transaction Growth
Five-Year Transaction Growth Transportation Invoice Expense Management Payment and Processing Key Points: Transaction Volume Invoice Transaction Fee Revenue (in millions) Volume (in millions) (in millions of dollars) Transportation invoice 35.5 37.5 36.0 36.8 28.7 volumes were up due to 33.2 27.7 27
Slide 8: Five-Quarter Transaction Growth
Five-Quarter Transaction Growth Transportation Invoice Expense Management Payment and Processing Key Points: Transaction Volume Invoice Transaction Fee Revenue (in millions) Volume (in millions) (in millions of dollars) Payment and processing 8.95 8.78 9.46 9.33 9.20 6.96 7.00 6.83 6.68 6.76 25.2 26
Slide 9: Five-Year Financial Highlights
Five-Year Financial Highlights Net Revenue Operating Expense Net Income Key Points: (in millions of dollars) (in millions of dollars) (in millions of dollars) Revenue and profitability 157.2 154.1 111.9 119.8 114.6 120.3 30.4 metrics generally improved 30.3 28.6 148.3 100.4 during 2021 primarily as
Slide 10: Five-Quarter Financial Highlights
Five-Quarter Financial Highlights Net Revenue Operating Expense Net Income Key Points: (in millions of dollars) (in millions of dollars) (in millions of dollars) 38.7 40.0 30.7 31.3 7.7 4Q2021 net income and 37.1 37.1 38.4 29.6 28.5 29.8 7.1 7.0 6.8 diluted EPS were up 20.1% 6.4 and 25.0%,respective
Slide 11: Diluted EPS Trend
Diluted EPS Trend (diluted) Earnings per share (diluted) Dividends declared per share Key Points: Full year 2021 EPS of $0.60 $2.00 represented a 25.0% improvement over 2020. $0.50 4Q2021 EPS of $0.55 was the highest since $0.56 during 3Q2019. $0.40 Cass has continuously paid regularly scheduled cas
Slide 12: 10-Year UST and Federal Funds Rate
10-Year UST and Federal Funds Rate 4.00 3.50 UST Rate 3.00 2.50 Percent 2.00 1.50 1.00 0.50 Federal Funds Rate - 2018 2019 2020 2021 2022 Source: Board of Governors of the Federal Reserve System (US) fred.stlouisfed.org www.cassinfo.com | © 2022 Cass Information Systems 12
Slide 13: Net Interest Income and Margin
Net Interest Income and Margin Annual Net Interest Annual Net Interest Annual Average Key Points: Income Margin Interest-Earning Assets (in millions of dollars) (in percent) (in billions of dollars) The low interest rate environment 47.4 3.34 3.32 3.36 2.00 in 2020 and 2021 has reduced our 44.2 45.3
Slide 14: Five-Year Balance Sheet Growth
Five-Year Balance Sheet Growth Loans Payments in Advance Deposits Key Points: (in millions of dollars) of Funding (in millions of dollars) (in millions of dollars) Achieved 7.7% loan growth in 2021 961 291 1,222 (22.0% growth excluding PPP loans). 892 1,051 722 773 206 686 195 Our payments in advanc
Slide 15: CASS Stock Performance
CASS Stock Performance 70.00 60.00 50.00 Share Price 40.00 30.00 20.00 2019 2020 2021 2022 www.cassinfo.com | © 2022 Cass Information Systems 15
Slide 16: Regulatory Capital
Regulatory Capital Key Points: Cass Commercial Bank Cass Information Systems Basel III Requirement All regulatory capital levels are strong at December 31, 16.07% Common Equity Tier 1 Risk-Based 2021 and well above Basel III 14.11% requirements. We repurchased 713,857 16.07% shares of our common sto
Slide 17: Key Earnings Growth Strategies
Key Earnings Growth Strategies Optimize Funding Provide Improve and Interest- Outstanding Operational Earning Assets Client Service Efficiency Achieve continued loan and Improve rating engine Investment in optical character payments in advance of capabilities, accelerate recognition (OCR), automated
Slide 18: Information Services Business Overview
Information Services Business Overview www.cassinfo.com | © 2022 Cass Information Systems 18
Slide 19: Freight Audit and Payment
Freight Audit and Payment Description of Business Value Proposition Multi-national corporations rely on Cass to We empower our customers to understand, control, provide increasingly sophisticated solutions and optimize their transportation costs. Clients that enable best practices in transportation
Slide 20: Shippers Who Trust Cass
FREIGHT AUDIT AND PAYMENT Shippers Who Trust Cass www.cassinfo.com | © 2022 Cass Information Systems 20
Slide 21: Facility Expense Management Services
Facility Expense Management Services Description of Business Value Proposition Cass processes and pays customers’ invoices Clients rely on accurate utility usage and cost data to for electricity, gas, water, and waste, plus make informed risk management and expense more than 50 other facility-relate
Slide 22: Telecom, Mobility, and Cloud Expense Management
Telecom, Mobility, and Cloud Expense Management Description of Business Value Proposition Cass delivers outsourced, value-added Clients choose Cass’s telecom and cloud management solutions for telecom expense management solutions to achieve multiple cross-functional objectives. (TEM), managed mobili
Slide 23: Major Customers
TELECOM, MOBILITY, and CLOUD EXPENSE MANAGEMENT Major Customers www.cassinfo.com | © 2022 Cass Information Systems 23
Slide 24: Integrated Financial Solutions
Integrated Financial Solutions Description of Business Value Proposition The Cass Integrated Financial Solutions (IFS) Our Fintech clients leverage the combination of our group develops and markets solutions for sophisticated platform, payment processing abilities and Fintechs who initiate or receiv
Slide 25: Major Customers
INTEGRATED FINANCIAL SOLUTIONS Major Customers www.cassinfo.com | © 2022 Cass Information Systems 25
Slide 26: 2021 Highlights for Information Services
2021 Highlights for Information Services TELECOM, MOBILITY, FREIGHT AUDIT FACILITY EXPENSE INTEGRATED FINANCIAL AND CLOUD EXPENSE AND PAYMENT MANAGEMENT SOLUTIONS MANAGEMENT § Sold a record level of new § Maintained fast and accurate § Recognized by Gartner in its § Became preferred provider of busi
Slide 27: Banking Services Business Overview
Banking Services Business Overview www.cassinfo.com | © 2022 Cass Information Systems 27
Slide 28: Cass Commercial Bank
Cass Commercial Bank Description of Business Value Proposition Cass Commercial Bank provides customized Cass Commercial Bank clients rely on our value-added financial services products, on a national level approach to banking partnerships that leads to trusted to faith-based ministries and McDonald’
Slide 29: Gyve Generosity Services
CASS COMMERCIAL BANK Gyve Generosity Services Description of Business Value Proposition Gyve Generosity Services provides the Using the Gyve platform, faith-based organizations can resources, tools, vision, and coaching that offer their members six new, modern methods for enable faith-based organiza
Slide 30: 2021 Highlights for Banking Services
CASS COMMERCIAL BANK 2021 Highlights for Banking Services Highlights for 2021 included the following: § Extended $39.7 million in loans to 112 small businesses during the second round of the PPP program. § Achieved strong loan growth with loans up $68.9 million, or 7.7%. Excluding PPP, loans were up
Slide 31: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 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 31
Slide 32: Board of Directors
Board of Directors Eric H. Brunngraber Benjamin F. (Tad) Edwards, IV Joseph D. Rupp Chairman and Chief Chairman, Chief Executive Lead Director and Retired Chairman, Executive Officer Officer, and President, President, and Chief Executive Officer, Benjamin F. Edwards & Company Olin Corporation Ralph
Slide 33: Leadership Council
Leadership Council Cory J. Bricker Carl N. Friedholm Christi A. Reiter Vice President, Integrated Vice President and Vice President, Human Financial Solutions General Manager, Telecom Resources Expense Management Eric H. Brunngraber Martin H. Resch Chairman and Chief Nicole M. Jennings President and
Slide 34: Shareholder Information
Shareholder Information CORPORATE HEADQUARTERS INVESTOR RELATIONS TRANSFER AGENT Cass Information Systems, Inc. Security analysts, investment Shareholder correspondence 12444 Powerscourt Drive, Suite 550 managers, and others seeking should be mailed to: Saint Louis, Missouri 63131 financial informat
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