Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Q4 2024 Earnings Presentation
26 slides from Cass Information Systems's earnings presentation, 2025
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. Q4 2024 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 14 Balance Sheet 19 Capital 20 Leadership and Shareholder Information www.cassinfo.com / © 2024 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 / © 2024 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 processes freight and facility payments for a number + Facilities expense management provides invoice management, payment an
Slide 6: Financial Performance
FINANCIAL PERFORMANCE www.cassinfo.com / © 2024 Cass Information Systems 6
Slide 7: Q4 2024 Financial Highlights
Q4 2024 FINANCIAL HIGHLIGHTS NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $4.6 million $8.41M 16.06% $0.61 + Successfully terminated defined benefit $4.59M $0.33 7.88% pension plan resulting in one-time expense of $3.5 million + Increase in net interest margin to 3.55% Q4 '23 Q4 '24 Q4 '2
Slide 8: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE TOTAL REVENUE TOTAL OPERATING EXPENSE NET INCOME $50.7M $50.6M $50.4M $46.9M $8.41M $44.6M $7.15M $49.7M $42.8M $40.4M $40.7M $4.48M $4.59M $48.6M $2.94M Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 DILUTED E
Slide 9: Revenue & Expenses
REVENUE & EXPENSES www.cassinfo.com / © 2024 Cass Information Systems 9
Slide 10: Financial Fees
FINANCIAL FEES FINANCIAL FEES + Financial fees declined $753,000 from Q4 2023 due to a 0.6% decline in transportation $11.5M $11.2M $10.8M $10.6M $10.7M dollar volumes, which led to a lower average balance of payments in advance of funding, in addition to changes in the manner certain vendors receiv
Slide 11: Processing Fees
PROCESSING FEES + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees decreased 2.2% as compared to 4Q 2023 primarily due to a decrease in fees in the Company’s Waste division and a decrease in ancillary fees, partially offset by in
Slide 12: Net Interest Income
NET INTEREST INCOME + The net interest margin (NIM) improved 25 basis points from Q4 2023 largely driven by an increase in the weighted average yield on loans to 5.38% from 4.95%. The increase in NIM led to a 4.3% increase in net interest income. + Higher 3-10 year U.S. Treasury rates would be expec
Slide 13: Net Interest Income (Continued)
NET INTEREST INCOME (CONTINUED) + As can be seen in the graph below, the Company’s net interest margin has historically trended above the average 5-year UST. With the rise in short and long-term bond yields over the last 3 years, the yield on many of the Company’s fixed rate loans and investment sec
Slide 14: Personnel Expense
PERSONNEL EXPENSE ($$ in millions) + Salaries and commissions have declined in recent Expense 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 quarters as a result of a reduction in the full-time Salaries and commissions $22.0 $22.4 $23.2 $23.2 $22.6 employee count. + Employee profit sharing is tied to the overal
Slide 15: Non-Personnel Expense
NON-PERSONNEL EXPENSE ($$ in millions) + Equipment expense has increased as a result of an Expense 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 increase in depreciation expense related to technology Occupancy expense $0.9 $0.9 $0.8 $0.9 $0.9 projects now in production. + Bad debt expense relates to a full wri
Slide 16: Balance Sheet
BALANCE SHEET www.cassinfo.com / © 2024 Cass Information Systems 16
Slide 17: Loans
LOANS + Loans increased 6.7% as compared to December 31, 2023. The Company experienced solid growth in franchise and C&I loans during 2024. + The Company has not incurred a loan charge-off since 2015. ($$ in millions) PORTFOLIO COMPOSITION Portfolio Composition 12/31/23 3/31/24 6/30/24 9/30/24 12/31
Slide 18: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION + All investment securities are classified as available-for-sale. The overall weighted-average PORTFOLIO COMPOSITION repricing term is 4.0 years and the average yield for 4Q2024 was 2.87%. The portfolio had (BOOK VALUE) unrealized losses of $59.7 million at December
Slide 19: Funding
FUNDING + For 4Q2024, 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 4Q2024 as a result of a cyber event at a CassPay client during Q1 2024, resulting in the loss of approximatel
Slide 20: Key Funding Points
KEY FUNDING POINTS + 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 deposits almost entirely consist of operating accounts
Slide 21: Capital
CAPITAL + The Company maintains excess capital to Tier 1 leverage support organic balance sheet growth and ratio at 12/31/24 10.57% opportunistic acquisitions + Dividend of $0.31 per share Common equity tier 1 risk- + Cass has continuously paid regularly scheduled based ratio at 12/31/24 13.84% cash
Slide 22: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION www.cassinfo.com / © 2024 Cass Information Systems 22
Slide 23: Board of Directors
BOARD OF DIRECTORS Eric H. Brunngraber Wendy J. Henry Sally H. Roth Executive Chairman Retired Managing Partner, Retired Area President — BKD, LLP Upper Midwest, Regions Bank Ralph W. Clermont James J. Lindemann Joseph D. Rupp Retired Managing Partner, Retired Executive Lead Director and Retired Cha
Slide 24: Leadership Council
LEADERSHIP COUNCIL Cory J. Bricker Carl N. Friedholm Sean M. Mullins Jeanne M. Scannell Senior Vice President and Senior Vice President and President - Vice President – Chief Chief Credit Officer - Cass President - CassPay Telecom Expense Management Information Security Officer Commercial Bank Mark
Slide 25: 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 26: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc.
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