Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Q2 2025 Earnings Presentation
28 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. Q2 2025 INVESTOR PRESE
Slide 2: Table of Contents
TABLE OF CONTENTS 3 Forward-Looking Statements 4 Cass at a Glance 7 Financial Performance 10 Revenue & Expenses 17 Balance Sheet 23 Capital 24 Leadership and Shareholder Information www.cassinfo.com / © 2025 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 / © 2025 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: Sale of Telecom Expense Management & Managed Mobility Services (TEM) Business
SALE OF TELECOM EXPENSE MANAGEMENT & MANAGED MOBILITY SERVICES (“TEM”) BUSINESS + On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its TEM business to Asignet USA Inc for $18.0 million in cash. The transaction closed on June 30, 2025. + During the second qua
Slide 7: Financial Performance
FINANCIAL PERFORMANCE www.cassinfo.com / © 2025 Cass Information Systems 7
Slide 8: Q2 2025 Financial Highlights
Q2 2025 FINANCIAL HIGHLIGHTS NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $8.9 million, or $0.66 per $8.86M $0.66 15.35% common share. $4.48M 8.01% + Return on average equity and assets of $0.32 15.35% and 1.48%, respectively. + Increase in net interest margin to 3.78% from Q2 '24 Q2 '25
Slide 9: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE TOTAL REVENUE, EXCL INV LOSSES TOTAL OPERATING EXPENSE NET INCOME $42.8M $8.97M $8.86M $48.0M $40.4M $46.5M $46.4M $45.6M $38.4M $38.1M $4.48M $4.59M $2.94M $44.0M $35.5M Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q2 '24 Q3 '24 Q4 '24 Q1 '25
Slide 10: Revenue & Expenses
REVENUE & EXPENSES www.cassinfo.com / © 2025 Cass Information Systems 10
Slide 11: Financial Fees
FINANCIAL FEES FINANCIAL FEES + Financial fees declined $299,000, or 2.9%, from Q2 2024 due to a lower average balance $11.0M of payments in advance of funding of 17.4%. $10.5M $10.5M $10.0M $10.2M + The Company expects its new working capital solution and other initiatives to increase the average b
Slide 12: Processing Fees
PROCESSING FEES + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees increased 1.6% as compared to 2Q 2024 reflecting relatively flat transportation and facility transaction volumes. TRANSPORTATION INVOICE VOLUMES FACILITY INVOICE
Slide 13: Net Interest Income
NET INTEREST INCOME + The net interest margin (NIM) improved 46 basis points from Q2 2024 largely driven by increases in the average yield on loans and investment securities of 38 and 18 basis points, respectively, combined with a decline in the average cost of total deposits of 38 basis points. + T
Slide 14: 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 3-4 years, the yield on many of the Company’s fixed rate loans and investment s
Slide 15: Personnel Expense
PERSONNEL EXPENSE ($$ in millions) + Salaries and commissions increased 1.2% compared to Expense 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 2Q2024. The increase compared to 1Q2025 was due to Salaries and commissions $20.4 $20.5 $19.9 $19.7 $20.6 merit increases and severance. + Employee profit sharing and s
Slide 16: Non-Personnel Expense
NON-PERSONNEL EXPENSE ($$ in millions) + Equipment expense has increased as a result of an Expense 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 increase in depreciation expense related to technology Occupancy expense $0.6 $0.7 $0.7 $0.7 $0.7 projects now in production. + Bad debt expense (recovery) relates to
Slide 17: Balance Sheet
BALANCE SHEET www.cassinfo.com / © 2025 Cass Information Systems 17
Slide 18: Loans
LOANS + Loans have increased $35.0 million, or 3.2%, as compared to December 31, 2024. The Company experienced solid growth in faith-based and other C&I loans. The Company elected to not replace runoff in its lease financing portfolio during the second quarter of 2025 to generate liquidity for other
Slide 19: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION + All investment securities are classified as available-for-sale. The overall weighted-average PORTFOLIO COMPOSITION repricing term is 4.2 years and the average yield for 2Q2025 was 3.02%. The portfolio had (BOOK VALUE) unrealized losses of $43.8 million at June 30,
Slide 20: Loans & Securities (Book Value) - Repricing or Maturity
LOANS & SECURITIES (BOOK VALUE)-REPRICING OR MATURITY Total Loans at June 30, 2025 Repricing or Maturity Term Rate Structure 1 Year > 1 to 3 >3 to 5 >5 Floating Fixed or Less Years Years Years Total Rate Rate Commercial and Industrial: Franchise 12,968 31,368 27,418 188,528 260,282 12,204 248,078 Le
Slide 21: Funding
FUNDING + For 2Q2025, 71.1% of average funding was non-interest bearing, a strategic advantage in the current interest rate environment. + Average accounts and drafts payable increased $147.3 million, or 15.1%, during 2Q2025 primarily reflective of the increase in facility and transportation dollar
Slide 22: 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 23: Capital
CAPITAL + The Company maintains excess capital to Tier 1 leverage support organic balance sheet growth and ratio at 6/30/25 10.62% opportunistic acquisitions + Dividend of $0.31 per share Common equity tier 1 risk- + Cass has continuously paid regularly scheduled based ratio at 6/30/25 14.82% cash d
Slide 24: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION www.cassinfo.com / © 2025 Cass Information Systems 24
Slide 25: Board of Directors
BOARD OF DIRECTORS Eric H. Brunngraber Wendy J. Henry Sally H. Roth 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 Chairman, Pre
Slide 26: Leadership Council
LEADERSHIP COUNCIL Cory J. Bricker Dwight D. Erdbruegger Ross M. Miller Martin H. Resch Todd J. Wills Senior Vice President and President and Chief Senior Vice President and President and Senior Vice President and President - CassPay Operating Officer, Cass President - TouchPoint Chief Executive Off
Slide 27: 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 28: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc.
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