分组1 - Cass Information Systems (CASS) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and showing a significant increase from $0.33 per share a year ago, resulting in an earnings surprise of +6.25% [1] - The company posted revenues of $49.89 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.58%, although this represents a decline from year-ago revenues of $50.37 million [2] - Cass has outperformed the S&P 500, with shares increasing by about 3.4% since the beginning of the year compared to the S&P 500's gain of 0.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $49.7 million, while for the current fiscal year, the estimate is $2.90 on revenues of $205.4 million [7] - The Computer - Services industry, to which Cass belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Record annual net income of $35.1 million and diluted earnings per share (EPS) of $2.61, representing an increase of 32.9% and 38.8% respectively compared to the prior year quarter [5]. - Net income from continuing operations for the year ended December 31, 2025, was $31,112,000, compared to $18,558,000 in the previous year, marking an increase of 67.5% [34]. - Basic earnings per share from continuing operations for the year ended December 31, 2025, were $2.36, up from $1.37 in the previous year, representing a growth of 72.3% [34]. - Adjusted net income from continuing operations (Non-GAAP) for the year ended December 31, 2025, was $33,115,000, up from $28,065,000 in 2024 [48]. - Diluted earnings per share from continuing operations (GAAP) was $2.31 for the year ended December 31, 2025, compared to $1.35 in 2024 [48]. - Adjusted diluted earnings per share from continuing operations (Non-GAAP) increased to $2.46 for the year ended December 31, 2025, from $2.04 in 2024 [48]. Revenue and Income Sources - Net interest income increased by $13.5 million, or 19.8%, with net interest margin rising to 3.93% from 3.55% in the prior year quarter [5][11]. - Interest and fees on loans increased to $15,521,000 for the three months ended December 31, 2025, compared to $14,428,000 for the same period last year, representing a growth of 7.6% [34]. - Net interest income for the year ended December 31, 2025, was $81,240,000, up from $67,787,000 in the previous year, reflecting a year-over-year increase of 19.8% [34]. - Total fee revenue for the three months ended December 31, 2025, was $26,164,000, a decrease of 3.3% from $27,071,000 in the previous quarter [34]. Asset and Equity Management - The company reported total assets of $2.6 billion, reflecting its financial stability and capacity for growth [26]. - Total assets increased to $2,606,024 thousand as of December 31, 2025, up from $2,395,081 thousand a year earlier, representing an increase of 8.8% [36]. - Shareholders' equity stood at $242,998 thousand, a slight increase from $229,030 thousand a year ago, reflecting a growth of 6.1% [36]. - Total shareholders' equity decreased by $451,000 since September 30, 2025, due to stock repurchases and dividends [22]. Loan and Deposit Trends - Loans decreased by $27.1 million, or 2.5%, due to the payoff of a modified franchise loan [19]. - Net loans decreased slightly to $1,047,620 thousand from $1,068,594 thousand year-over-year, reflecting a decline of 2.0% [36]. - Total deposits rose to $1,200,033 thousand, a significant increase of 16.0% compared to $967,916 thousand in the previous year [36]. - Non-performing loans amounted to $6,992 thousand, representing 0.66% of total loans, indicating stable asset quality [38]. Operational Efficiency - Total operating expenses for the year ended December 31, 2025, were $151,991,000, a decrease from $157,742,000 in the previous year, indicating a reduction of 3.6% [34]. - Personnel expenses decreased by $2.2 million, or 7.5%, primarily due to the termination of the defined benefit pension plan [15]. - Average full-time equivalent employees decreased to 939 in Q4 2025 from 999 in Q4 2024 [40]. Strategic Initiatives - The company completed the sale of its Telecom Expense Management & Managed Mobility Services business to Asignet USA Inc. on June 30, 2025, indicating a strategic shift in focus [26]. - The company plans to continue expanding its market presence and enhancing its product offerings in the upcoming quarters [39]. - The company anticipates continued growth in interest income and fee revenue, driven by an expanding client base and enhanced service offerings [30]. Tax and Regulatory Compliance - The effective tax rate for the fourth quarter was 18.0%, down from 20.3% in the fourth quarter of 2024, with an expected rate of approximately 20.5% in future quarters [18]. - Common equity tier 1 ratio improved to 15.10% as of December 31, 2025, up from 13.84% a year earlier [40]. - Total risk-based capital ratio increased to 15.95% as of December 31, 2025, compared to 14.61% at the end of 2024 [40].

Investor Presentation January 2026 www.cassinfo.com | ©2025 Cass Information Systems | Forward-Looking Information All statements other than statements of historical fact included in this release, including without limitation the Company's future prospects and performance, the business strategy and the plans and objectives of the Company's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, wo ...

It is easy to overlook Cass Information Systems ( CASS ). It operates in the unglamorous world of freight audit and payment processing. Consequently, the stock has drifted sideways for years while the rest of the market marchedI'm a fundamental investor who targets situations where the market has pushed a company’s valuation far out of line with its underlying economics. My professional background in corporate financial analysis has deeply shaped my investment perspective, leading me to focus intensely on c ...

Core Insights - Cass Information Systems (CASS) operates in the freight audit and payment processing sector, which is often overlooked due to its unglamorous nature, leading to stagnant stock performance while the broader market has progressed [1] Company Analysis - The company is positioned in a niche market that has not attracted significant investor attention, resulting in a valuation that may not reflect its underlying economic fundamentals [1] - The focus on cash flow durability and balance sheet strength indicates a solid financial foundation, which is crucial for long-term investment considerations [1] Investment Perspective - The investment strategy emphasizes identifying mispriced opportunities, particularly in cyclical industries and under-followed mid-cap companies, where market expectations may diverge from actual performance [1] - The approach seeks to capitalize on situations where sentiment is lagging behind reality, allowing for potential stock price appreciation with modest changes in expectations [1]

Financial Performance - Net interest income increased by $3.5 million, or 19.3%, compared to the same period last year, driven by an improved net interest margin of 3.87%[96] - The Company recorded net revenue of $50.1 million during the third quarter of 2025, an increase of 7.6% from the third quarter of 2024, primarily due to higher net interest income[102] - Net income for the third quarter of 2025 was $9.1 million, representing a 204.2% increase from the same period in 2024, with diluted EPS rising to $0.68, an increase of 223.8%[103] - The Company experienced a 19.5% increase in net interest income for the nine months ended September 30, 2025, compared to the same period in 2024[101] - For the nine months ended September 30, 2025, net interest income rose to $60.467 million, up from $50.744 million in the same period of 2024, reflecting a 19.5% increase[110] - Net interest income for the nine months ended September 30, 2025, was $60,467,000, up from $50,744,000 in 2024, reflecting an increase of 19.2%[126] Revenue and Income Sources - Processing fees decreased by $31,000, or 0.2%, in the third quarter of 2025, reflecting lower transportation and facility transaction volumes[107] - Financial fees decreased by $601,000, or 5.5%, primarily due to a decline in average payments in advance of funding by 13.4%[107] - The Company sold $34.0 million of corporate investment securities at a loss of $3.6 million during June 2025, with proceeds redeployed into higher yielding interest-earning assets[108] Asset and Liability Management - Total assets increased by $58.5 million, or 2.4%, to $2.45 billion as of September 30, 2025, compared to December 31, 2024[145] - Total liabilities increased to $2,205,171,000 as of September 30, 2025, compared to $2,115,569,000 in 2024, reflecting a growth of 4.2%[126] - Total liabilities increased by $44.1 million, or 2.0%, to $2.21 billion as of September 30, 2025[151] - Total deposits rose by $66.7 million, or 6.9%, to $1.03 billion as of September 30, 2025, compared to December 31, 2024[149] Operating Expenses - Operating expenses decreased by 10.1% in the third quarter of 2025, primarily due to a reduction in bad debt expense from the previous year[102] - Total operating expenses decreased to $38.4 million in Q3 2025 from $42.8 million in Q3 2024, a reduction of 10.8%[140] - Total operating expenses decreased by $5.3 million, or 4.5%, for the nine months ended September 30, 2025, compared to the same period in 2024[139] Credit Quality and Losses - The provision for credit losses for the nine months ended September 30, 2025, was $737,000, compared to $355,000 in 2024, marking an increase of 108.5%[134] - The allowance for credit losses (ACL) was $14,066,000 at September 30, 2025, representing 1.29% of outstanding loans, compared to $13,447,000 and 1.25% at the end of 2024[135] - The company recorded no loan charge-offs in the third quarter of 2025, maintaining a stable credit quality[135] - Nonperforming loans increased to $7.1 million at September 30, 2025, from $0 at December 31, 2024, highlighting a shift in asset quality[135] Capital and Regulatory Compliance - The Company and the Bank continue to exceed all regulatory capital requirements, with Cass Information Systems, Inc. reporting total capital of $266,552,000 and a ratio of 15.90% as of September 30, 2025, compared to the required 8.00%[165] - Cass Commercial Bank reported total capital of $220,318,000 with a ratio of 19.63% as of September 30, 2025, exceeding the required 8.00%[165] - Common Equity Tier I Capital for Cass Information Systems, Inc. was $252,147,000 with a ratio of 15.04% as of September 30, 2025, surpassing the required 4.50%[165] Market Risks and Accounting Policies - The Company continues to face market risks related to changes in interest rates, inflation, and energy costs, which may impact revenue generation[162] - The Company performs periodic reviews of its loan portfolio to estimate lifetime expected credit losses, which can significantly differ from actual results[171] - Management's estimates and assumptions affect the reported amounts of assets, liabilities, revenue, and expenses during the reporting period[170] - Actual results can differ significantly from estimated results related to credit loss allowances[171] - The Company has not required any material changes to its estimates in the past, indicating consistency in its accounting practices[170]

Core Insights - Cass Information Systems (CASS) reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and significantly up from $0.21 per share a year ago, representing an earnings surprise of +9.52% [1] - The company posted revenues of $50.06 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.33%, although this is a decrease from year-ago revenues of $50.55 million [2] - Cass has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates twice as well [2] Earnings Outlook - The sustainability of Cass's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $49.8 million, and for the current fiscal year, it is $2.58 on revenues of $190.9 million [7] Industry Context - The Computer - Services industry, to which Cass belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5]

Investor Presentation OCTOBER 2025 www.cassinfo.com | ©2025 Cass Information Systems | Forward-Looking Information All statements other than statements of historical fact included in this release, including without limitation the Company's future prospects and performance, the business strategy and the plans and objectives of the Company's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, wo ...

Financial Performance - Net income for Q3 2025 was $9.1 million, with diluted earnings per share of $0.68, representing an increase from $2.9 million and $0.21 in Q3 2024[1][11] - Net income from continuing operations for the three months ended September 30, 2025, was $9,212,000, up from $5,160,000 in the previous quarter, representing a 78.9% increase[25] - The company reported a net income of $9,106,000 for the three months ended September 30, 2025, compared to $8,855,000 in the prior quarter, reflecting a growth of 2.8%[25] - Net income from continuing operations (GAAP) for the three months ended September 30, 2025, was $9,212, compared to $3,028 in Q3 2024, representing a significant increase[39] Revenue and Income Sources - Total revenues for the nine months ended September 30, 2025, reached $140,860,000, compared to $135,603,000 for the same period in the previous year, indicating a growth of 3.3%[25] - Total fee revenue for the three months ended September 30, 2025, was $27,071,000, a slight decrease from $27,243,000 in the previous quarter[25] - Net interest income increased by $3.4 million, or 19.3%, driven by an improved net interest margin of 3.87%, up from 3.55% in the prior year quarter[6][11] - Net interest income increased to $21,020,000 for the three months ended September 30, 2025, compared to $19,475,000 in the prior quarter, reflecting a growth of 7.9%[25] Expenses and Costs - Total operating expenses for the three months ended September 30, 2025, were $38,441,000, slightly higher than $38,119,000 in the previous quarter[25] - Total personnel expenses for the three months ended September 30, 2025, were $27,606,000, compared to $27,752,000 in the prior quarter, showing a decrease of 0.5%[25] - Interest expense for the three months ended September 30, 2025, was $4,151,000, a slight decrease from $4,164,000 in the previous quarter[25] Asset and Equity Management - Total assets increased to $2,453,622 thousand as of September 30, 2025, up from $2,316,018 thousand as of June 30, 2025, representing a growth of 5.93%[27] - Total deposits rose to $1,034,660 thousand, an increase of 3.66% from $1,003,795 thousand in the previous quarter[27] - Shareholders' equity increased to $243,449 thousand, up from $240,822 thousand, reflecting a growth of 0.68%[27] - The company maintained a strong capital position with total liabilities of $2,210,173 thousand, up from $2,075,196 thousand, indicating a growth of 6.51%[27] Loan and Credit Quality - Non-performing loans totaled $7.1 million, an increase of $3.7 million from June 30, 2025, with the company actively working to reduce these balances[17][11] - Non-performing loans increased to $7,074 thousand, representing 0.65% of total loans, compared to 0.30% in the previous quarter[29] - The allowance for credit losses to loans ratio remained stable at 1.29% as of September 30, 2025, compared to 1.28% in the previous quarter[29] Shareholder Actions - The company repurchased 159,587 shares at a weighted average price of $41.96, and increased the quarterly dividend by $0.01 to $0.32 per share[11][16] Operational Metrics - Transportation invoice volumes decreased by 3.0% to 8.9 million, while transportation dollar volumes increased by 2.0% to $9.3 billion compared to Q3 2024[2][11] - Average payments in advance of funding decreased by $27.3 million, or 13.4%, compared to Q3 2024, reflecting ongoing consolidation in freight carriers[12][11] - Average full-time equivalent employees decreased to 958 in Q3 2025 from 1,029 in Q3 2024[31] Capital Ratios - As of September 30, 2025, the common equity tier 1 ratio improved to 15.04%, up from 14.54% a year ago[31] - Total risk-based capital ratio as of September 30, 2025, was 15.90%, an increase from 15.31% a year ago[31] - The leverage ratio as of September 30, 2025, was 10.17%, down from 11.05% a year ago[31]

Core Insights - Cass Information Systems specializes in payment and information processing services, primarily serving manufacturing, distribution, and retail sectors in the U.S. The company operates through two segments: Information Services and Banking Services, offering services like freight invoice rating, payment processing, and telecom expense management [1] Price Target Analysis - The consensus price target for Cass Information Systems has shown stability over the past year, with an average price target of $47 last month and last quarter, compared to $46 the previous year. This indicates a consistent outlook from analysts regarding the company's performance and growth potential. However, analyst Frank Schiraldi from Piper Sandler has set a lower price target of $45, reflecting a more cautious perspective [2] Earnings Performance - Cass Information Systems is expected to report third-quarter results, with Wall Street anticipating earnings growth. However, the company may lack the optimal factors for an earnings beat, as noted by Zacks. In Q2 2025, Cass reported GAAP earnings per share of $0.66, below the expected $0.72, and GAAP revenue was also below the anticipated $51 million. Net income for the quarter was $9 million, a 25.4% increase from $7.2 million in the same period last year, indicating improved financial performance over time [3] Investor Considerations - Investors should consider the financial results and analyst expectations when evaluating Cass Information Systems. The stable price target and recent earnings performance provide insights into future prospects, but it is crucial to stay informed about any recent developments that could impact these targets, such as earnings reports or strategic initiatives [4][5]