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 2023 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 / © 2023 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 / © 2023 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 a number + Facilities expense management provides payment
Slide 6: Financial Performance
FINANCIAL PERFORMANCE www.cassinfo.com / © 2023 Cass Information Systems 6
Slide 7: Q4 2023 Financial Highlights
Q4 2023 FINANCIAL HIGHLIGHTS NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $8.4 million $9.29M 18.96% $0.67 $8.41M $0.61 + Diluted EPS of $0.61 16.05% + Return on average equity of 16.06% + Quarterly revenue of $50.7 million + Expanding net interest margin Q4 '22 Q4 '23 Q4 '22 Q4 '23 Q4 '2
Slide 8: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE TOTAL REVENUE NET INCOME $50.7M + Revenue improved in 4Q2023 as $9.29M $8.41M $49.3M $49.2M compared to 3Q2023 as result of a $48.9M $7.14M $7.39M $7.12M $48.2M higher level of interest-earning assets, net interest margin and processing fees in addition to a Q4 '22 Q1
Slide 9: Revenue & Expenses
REVENUE & EXPENSES www.cassinfo.com / © 2023 Cass Information Systems 9
Slide 10: Financial Fees
FINANCIAL FEES FINANCIAL FEES + Despite a decline in transportation dollar volumes, which led to a lower average balance $11.7M $11.6M of payments in advance of funding, and changes in the manner certain vendors receive $11.5M payments, financial fees increased slightly compared to the same period l
Slide 11: Processing Fees
PROCESSING FEES + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees increased as compared to 4Q 2022 due to an increase in ancillary fees and facility invoice volumes. The Company has experienced recent success in winning facility
Slide 12: Net Interest Income
NET INTEREST INCOME + The increase in short-term interest rates has had a positive impact on net interest margin, jumping from 3.15% during 4Q 2022 up to 3.30% in 4Q 2023. + Average interest-earning assets have declined as compared to the fourth quarter of 2022 as a result of a decrease in payment f
Slide 13: Operating Expense
OPERATING EXPENSE ($ in millions) + Salaries and commissions as well as other benefits Expense 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 have increased due to average FTEs being up 10.8% as Salaries and commissions 23.0 22.6 23.6 23.4 23.9 compared to 4Q 2022, primarily due to technology initiatives. Shar
Slide 14: Balance Sheet
BALANCE SHEET www.cassinfo.com / © 2023 Cass Information Systems 14
Slide 15: Loans
LOANS + Cass has opted to be more selective in booking new loans as a result of the decline in deposits during the first half of 2023, focusing solely on new client relationships. + Cass has not incurred a loan charge-off since 2015 ($ in millions) PORTFOLIO COMPOSITION Portfolio Composition 12/31/
Slide 16: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION + All investment securities are classified as available-for-sale. The overall weighted-average PORTFOLIO COMPOSITION repricing term is 3.7 years and the average yield for 4Q2023 was 2.63%. The portfolio had (BOOK VALUE) unrealized losses of $57.8 million at December
Slide 17: Funding
FUNDING + For 4Q 2023, 72.7% of average funding was non-interest bearing, a strategic advantage in current rate environment. + The Company experienced deposit attrition during 2023 as larger commercial clients moved their funds to higher interest rate alternatives outside of the banking system. Aver
Slide 18: 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 19: Capital
CAPITAL + Repurchased 13,964 shares of Company Tier 1 leverage ratio at 12/31/23 10.71% stock during 4Q2023 + Maintain excess capital to support Common equity tier 1 risk- organic balance sheet growth and 14.73% based ratio at 12/31/23 opportunistic acquisitions + Quarterly dividend of $0.30 per sha
Slide 20: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION www.cassinfo.com / © 2023 Cass Information Systems 20
Slide 21: 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 22: Leadership Council
LEADERSHIP COUNCIL Cory J. Bricker Teresa D. Meares Martin H. Resch Vice President - CassPay Vice President and General Manager - President and Waste Expense Management Chief Executive Officer Mark A. Campbell Ross M. Miller Jeanne M. Scannell Senior Vice President Vice President and General Manager
Slide 23: 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 24: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc.