Slide 1: Q3 2024 Investor Presentation
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 2024 INVESTOR PRESE
Slide 2: Table of Contents
Forward-Looking Statements Cass at a Glance Financial Performance Revenue & Expenses Balance Sheet Capital Leadership and Shareholder Information TABLE OF CONTENTS 2 3 4 6 9 14 19 20 www.cassinfo.com / © 2024 Cass Information Systems
Slide 3: 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,” “potential,” “will,” “estimate,”
Slide 4: Cass at a Glance
4www.cassinfo.com / © 2024 Cass Information Systems CASS AT A GLANCE
Slide 5: Cass at a Glance
+ Cass is an information services company that processes freight and facility payments for a number of the largest global companies + The information systems business has a 70-year legacy + As a result of its $90B of payments, Cass generates $1B+ of average non-interest bearing float + Cass continue
Slide 6: Financial Performance
6www.cassinfo.com / © 2024 Cass Information Systems FINANCIAL PERFORMANCE
Slide 7: Q3 2024 Financial Highlights
Q3 2024 FINANCIAL HIGHLIGHTS 7www.cassinfo.com / © 2024 Cass Information Systems $7.39M $2.94M Q3 '23 Q3 '24 $0.54 $0.21 Q3 '23 Q3 '24 13.80% 5.04% Q3 '23 Q3 '24 NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $2.9 million (includes $6.6 million of bad debt expense on a funding receivable to
Slide 8: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE 8www.cassinfo.com / © 2024 Cass Information Systems $40.1M $40.4M $40.7M $42.8M $46.9M Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 $7.39M $8.41M $7.15M $4.48M $2.94M Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 13.80% 16.05% 12.66% 8.01% 5.04% Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 1.22% 1.
Slide 9: Revenue & Expenses
9www.cassinfo.com / © 2024 Cass Information Systems REVENUE & EXPENSES
Slide 10: Financial Fees
FINANCIAL FEES 10www.cassinfo.com / © 2024 Cass Information Systems + Financial fees declined $420,000 from Q3 2023 due to a 1.8% decline in transportation dollar volumes, which led to a lower average balance of payments in advance of funding, in addition to changes in the manner certain vendors rec
Slide 11: Processing Fees
PROCESSING FEES 11www.cassinfo.com / © 2024 Cass Information Systems + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees increased 0.6% as compared to 3Q 2023 primarily due to a 26.3% increase in facility invoice volumes, partiall
Slide 12: Net Interest Income
NET INTEREST INCOME 12www.cassinfo.com / © 2024 Cass Information Systems + The net interest margin (NIM) improved 31 basis points from Q3 2023 largely driven by an increase in the weighted average yield on loans to 5.40% from 4.88%. The increase in NIM led to a 6.5% increase in net interest income.
Slide 13: Personnel Expense
PERSONNEL EXPENSE 13www.cassinfo.com / © 2024 Cass Information Systems + Salaries and commissions have stabilized and are expected to decline in future quarters as a result of a reduction in the full-time employee count. + Employee profit sharing declined commensurate with the decline in net income.
Slide 14: Non-Personnel Expense
NON-PERSONNEL EXPENSE 14www.cassinfo.com / © 2024 Cass Information Systems + Equipment expense has increased slightly as a result of an increase in depreciation expense related to technology projects now in production. + Bad debt expense relates to a full write-off of a funding receivable related to
Slide 15: Balance Sheet
15www.cassinfo.com / © 2024 Cass Information Systems BALANCE SHEET
Slide 16: Loans
LOANS 16www.cassinfo.com / © 2024 Cass Information Systems + Loans increased 1.5% as compared to June 20, 2024. The Company experienced growth in its franchise restaurant and faith-based portfolios. + The Company has not incurred a loan charge-off since 2015. Portfolio Composition 9/30/23 12/31/23 3
Slide 17: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION 17www.cassinfo.com / © 2024 Cass Information Systems + All investment securities are classified as available-for-sale. The overall weighted-average repricing term is 3.5 years and the average yield for 3Q2024 was 2.86%. The portfolio had unrealized losses of $46.9 mi
Slide 18: Funding
FUNDING 18www.cassinfo.com / © 2024 Cass Information Systems + For 3Q2024, 69.5% of average funding was non-interest bearing, a strategic advantage in the current interest rate environment. + Average accounts and drafts payable declined during 3Q2024 as a result of a cyber event at a CassPay client
Slide 19: Key Funding Points
KEY FUNDING POINTS 19www.cassinfo.com / © 2024 Cass Information Systems + Accounts and drafts payable represents float generated by our payments businesses and have proven a very stable source of funding over a long period of time. + Deposits are generated from core Bank and CassPay clients. These d
Slide 20: Capital
CAPITAL 20www.cassinfo.com / © 2024 Cass Information Systems + The Company maintains excess capital to support organic balance sheet growth and opportunistic acquisitions + Increase in quarterly dividend to 0.31 per share + Cass has continuously paid regularly scheduled cash dividends since 1934 + T
Slide 21: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION 21www.cassinfo.com / © 2024 Cass Information Systems
Slide 22: Board of Directors
BOARD OF DIRECTORS 22 Eric H. Brunngraber Executive Chairman Ralph W. Clermont Retired Managing Partner, KPMG LLP, Saint Louis, Missouri Robert A. Ebel Retired Chief Executive Officer, Universal Printing Company Wendy J. Henry Retired Managing Partner, BKD, LLP James J. Lindemann Retired Executive V
Slide 23: Leadership Council
LEADERSHIP COUNCIL 23 Cory J. Bricker Senior Vice President and President - CassPay Carl N. Friedholm Senior Vice President and President - Telecom Expense Management Christi A. Reiter Senior Vice President - Human Resources Nicole M. Jennings Vice President - Internal Audit and Risk Management Mart
Slide 24: Shareholder Information
SHAREHOLDER INFORMATION 24www.cassinfo.com / © 2024 Cass Information Systems CORPORATE HEADQUARTERS Cass Information Systems, Inc. 12444 Powerscourt Drive, Suite 550 Saint Louis, Missouri 63131 314.506.5500 www.cassinfo.com INVESTOR RELATIONS ir@cassinfo.com COMMON STOCK The company’s common stock t
Slide 25: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc: