Slide 1: The Power to Deliver Solutions - Q2 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. Q2 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 / © 2023 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 / © 2023 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 / © 2023 Cass Information Systems FINANCIAL PERFORMANCE
Slide 7: Q2 2024 Financial Highlights
Q2 2024 FINANCIAL HIGHLIGHTS 7www.cassinfo.com / © 2023 Cass Information Systems $7.14M $4.48M Q2 '23 Q2 '24 $0.52 $0.32 Q2 '23 Q2 '24 13.37% 8.01% Q2 '23 Q2 '24 NET INCOME DILUTED EPS RETURN ON EQUITY + Net income of $4.5 million + Diluted EPS of $0.32 + Return on average equity of 8.01% + Increase
Slide 8: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE 8www.cassinfo.com / © 2023 Cass Information Systems $39.3M $40.1M $40.4M $40.7M $42.8M Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 $7.14M $7.39M $8.41M $7.15M $4.48M Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 13.37% 13.80% 16.05% 12.66% 8.01% Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 1.21% 1
Slide 9: Revenue & Expenses
9www.cassinfo.com / © 2023 Cass Information Systems REVENUE & EXPENSES
Slide 10: Financial Fees
FINANCIAL FEES 10www.cassinfo.com / © 2023 Cass Information Systems + Financial fees declined due to a 6.5% decline in transportation dollar volumes, which led to a lower average balance of payments, in addition to changes in the manner certain vendors receive payments. + The Company expects its new
Slide 11: Processing Fees
PROCESSING FEES 11www.cassinfo.com / © 2023 Cass Information Systems + The change quarter to quarter is generally correlated to transportation and facility invoice volumes. + Processing fees increased 8.9% as compared to 2Q 2023 primarily due to a 25.1% increase in facility invoice volumes. The Comp
Slide 12: Net Interest Income
NET INTEREST INCOME 12www.cassinfo.com / © 2023 Cass Information Systems + The net interest margin improved 7 basis points from the second quarter of 2023. + The Company lost approximately $100.0 million of CassPay non-interest bearing balances in February 2024 as a result of a cyber attack on a lar
Slide 13: Operating Expense
OPERATING EXPENSE 13www.cassinfo.com / © 2023 Cass Information Systems + Salaries and commissions have stabilized and are expected to decline beginning in 4Q2024 as the Company expects to takes advantage of recent technology investments. + Share-based compensation declined reflecting the Company’s f
Slide 14: Balance Sheet
14www.cassinfo.com / © 2023 Cass Information Systems BALANCE SHEET
Slide 15: Loans
LOANS 15www.cassinfo.com / © 2023 Cass Information Systems + Loans increased 2.4% during the second quarter of 2024. The Company experienced growth in its franchise restaurant and equipment finance portfolios. + The Company has not incurred a loan charge-off since 2015. Portfolio Composition 6/30/23
Slide 16: Investment Portfolio Composition
INVESTMENT PORTFOLIO COMPOSITION 16www.cassinfo.com / © 2023 Cass Information Systems + All investment securities are classified as available-for-sale. The overall weighted-average repricing term is 3.55 years and the average yield for 2Q2024 was 2.89%. The portfolio had unrealized losses of $60.5 m
Slide 17: Funding
FUNDING 17www.cassinfo.com / © 2023 Cass Information Systems + For 2Q2024, 68.7% of average funding was non-interest bearing, a strategic advantage in the current interest rate environment. + Average accounts and drafts payable declined during the second quarter of 2024 as a result of the cyber even
Slide 18: Key Funding Points
KEY FUNDING POINTS 18www.cassinfo.com / © 2023 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 19: Capital
CAPITAL 19www.cassinfo.com / © 2023 Cass Information Systems + The Company maintains excess capital to support organic balance sheet growth and opportunistic acquisitions + Quarterly dividend of $0.30 per share and Cass has continuously paid regularly scheduled cash dividends since 1934 + No share b
Slide 20: Leadership and Shareholder Information
LEADERSHIP AND SHAREHOLDER INFORMATION 20www.cassinfo.com / © 2023 Cass Information Systems
Slide 21: Board of Directors
BOARD OF DIRECTORS 21 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 22: Leadership Council
LEADERSHIP COUNCIL 22 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 23: Shareholder Information
SHAREHOLDER INFORMATION 23www.cassinfo.com / © 2023 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 24: Thank You for Your Time
Thank You for Your Time Cass Information Systems, Inc: