Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Q1 2025 Earnings Presentation
27 slides from Cass Information Systems's earnings presentation, May 5, 2025
Slide 1: The Power to Deliver Solutions - Q1 2025 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. Q1 2025 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 7 10 17 22 23 www.cassinfo.com / © 2025 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 / © 2025 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: Sale of Telecom Expense Management & Managed Mobility Services Business
SALE OF TELECOM EXPENSE MANAGEMENT & MANAGED MOBILITY SERVICES (“TEM”) BUSINESS 6www.cassinfo.com / © 2025 Cass Information Systems + On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its TEM business to Asignet USA Inc. Under the terms of the Asset Purchase
Slide 7: Financial Performance
7www.cassinfo.com / © 2025 Cass Information Systems FINANCIAL PERFORMANCE
Slide 8: Q1 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS 8www.cassinfo.com / © 2025 Cass Information Systems $7.15M $8.97M Q1 '24 Q1 '25 $0.52 $0.66 Q1 '24 Q1 '25 12.66% 15.91% Q1 '24 Q1 '25 NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $9.0 million, or $0.66 per common share + Increase in net interest margin to 3.75
Slide 9: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE 9www.cassinfo.com / © 2025 Cass Information Systems $36.2M $38.4M $42.8M $40.4M $35.5M Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 $7.15M $4.48M $2.94M $4.59M $8.97M Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 12.66% 8.01% 5.04% 7.88% 15.91% Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 1.20% 0.7
Slide 10: Revenue & Expenses
10www.cassinfo.com / © 2025 Cass Information Systems REVENUE & EXPENSES
Slide 11: Financial Fees
FINANCIAL FEES 11www.cassinfo.com / © 2025 Cass Information Systems + Financial fees declined $637,000, or 6.0%, from Q1 2024 due to a 3.3% decline in transportation dollar volumes, which led to a lower average balance of payments in advance of funding of 10.7%. + The Company expects its new working
Slide 12: Processing Fees
PROCESSING FEES 12www.cassinfo.com / © 2025 Cass Information Systems + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees decreased 2.3% as compared to 1Q 2024 primarily due to a decrease in transportation invoice volumes of 4.7%,
Slide 13: Net Interest Income
NET INTEREST INCOME 13www.cassinfo.com / © 2025 Cass Information Systems + The net interest margin (NIM) improved 49 basis points from Q1 2024 largely driven by increases in the average yield on loans and investment securities of 55 and 15 basis points, respectively, combined with a decline in the a
Slide 14: Net Interest Income (Continued)
NET INTEREST INCOME (CONTINUED) 14www.cassinfo.com / © 2025 Cass Information Systems + 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 ma
Slide 15: Personnel Expense
PERSONNEL EXPENSE 15www.cassinfo.com / © 2025 Cass Information Systems + Salaries and commissions have declined in recent quarters as a result of a reduction in the average full- time employee count. + Employee profit sharing is tied to the overall level of net income. + The termination of the defin
Slide 16: Non-Personnel Expense
NON-PERSONNEL EXPENSE 16www.cassinfo.com / © 2025 Cass Information Systems + Equipment expense has increased as a result of an increase in depreciation expense related to technology projects now in production. + Bad debt expense (recovery) relates to a full write-off of a funding receivable related
Slide 17: Balance Sheet
17www.cassinfo.com / © 2025 Cass Information Systems BALANCE SHEET
Slide 18: Loans
LOANS 18www.cassinfo.com / © 2025 Cass Information Systems + Loans increased $59.9 million, or 10.1%, as compared to December 31, 2024. The Company experienced solid growth in faith-based and other C&I loans during 1Q2025. + The Company has not incurred a loan charge-off since 2015. Portfolio Compos
Slide 19: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION 19www.cassinfo.com / © 2025 Cass Information Systems + All investment securities are classified as available-for-sale. The overall weighted-average repricing term is 4.0 years and the average yield for 1Q2025 was 2.86%. The portfolio had unrealized losses of $52.4 mi
Slide 20: Funding
FUNDING 20www.cassinfo.com / © 2025 Cass Information Systems + For 1Q2025, 70.2% of average funding was non-interest bearing, a strategic advantage in the current interest rate environment. + Average accounts and drafts payable increased $57.9 million, or 5.7%, during 1Q2025 primarily reflective of
Slide 21: Key Funding Points
KEY FUNDING POINTS 21www.cassinfo.com / © 2025 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 22: Capital
CAPITAL 22www.cassinfo.com / © 2025 Cass Information Systems + The Company maintains excess capital to support organic balance sheet growth and opportunistic acquisitions + Dividend of $0.31 per share + Cass has continuously paid regularly scheduled cash dividends since 1934 + The Company repurchase
Slide 23: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION 23www.cassinfo.com / © 2025 Cass Information Systems
Slide 24: Board of Directors
BOARD OF DIRECTORS 24 Eric H. Brunngraber 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 Vice Presid
Slide 25: Leadership Council
LEADERSHIP COUNCIL 25www.cassinfo.com / © 2025 Cass Information Systems Cory J. Bricker Senior Vice President and President - CassPay Dwight D. Erdbruegger President and Chief Operating Officer, Cass Commercial Bank Ross M. Miller Senior Vice President and President - TouchPoint Martin H. Resch Pres
Slide 26: Shareholder Information
SHAREHOLDER INFORMATION 26www.cassinfo.com / © 2025 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 27: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc:
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