Cass Information Systems(CASS) - 2024 Q4 - Annual Results

Net Income and Profitability - Net income for Q4 2024 was $4.6 million, a decrease of 45.4$8.4 million in Q4 2023, but an increase of 56.4% compared to Q3 2024[1] - Net income for Q4 2024 was $4,594 thousand, compared to$2,938 thousand in Q3 2024 and $8,410 thousand in Q4 2023[23] - Return on average equity increased to 7.88$30,976 thousand, a slight decrease from $31,230 thousand in Q3 2024 and$32,195 thousand in Q4 2023[23] - Total revenues for Q4 2024 were $50,371 thousand, slightly down from$50,550 thousand in Q3 2024 and $50,736 thousand in Q4 2023[23] Net Interest Income and Margin - Net interest income increased by$730,000 (4.3%) in Q4 2024, driven by a net interest margin increase to 3.55% from 3.30% in Q4 2023[9] - Net interest income for Q4 2024 was $17,764 thousand, compared to$17,618 thousand in Q3 2024 and $17,034 thousand in Q4 2023[23] - Net interest margin remained stable at 3.55$67.7 million (6.7%) compared to December 31, 2023[14] - Average loans for Q4 2024 were $1,065,944 thousand, compared to$1,072,824 thousand in Q3 2024 and $1,025,259 thousand in Q4 2023[27] - Average deposits decreased by$19.0 million (1.8%) compared to Q4 2023, driven by client funds migration from non-interest bearing to interest-bearing accounts[16] - Total deposits as of December 31, 2024, were $967,916 thousand, down from$1,047,323 thousand in September 30, 2024, and $1,140,814 thousand in December 31, 2023[25] - Average non-interest bearing deposits for Q4 2024 were$399,778 thousand, down from $404,364 thousand in Q3 2024 and$464,924 thousand in Q4 2023[27] - Average cost of total deposits decreased to 1.77% in Q4 2024 from 1.98% in Q3 2024, but increased from 1.76% in Q4 2023[29] Transportation and Facility Expenses - Transportation dollar volumes in Q4 2024 were $9.0 billion, a decrease of 0.6$5.3 billion in Q4 2024, an increase of 9.1% compared to Q4 2023 but a decrease of 8.4% compared to Q3 2024[6] - Transportation dollar volume decreased to $8,994,440 in Q4 2024 from$9,097,739 in Q3 2024, but increased from $9,044,772 in Q4 2023[29] - Facility expense dollar volume decreased to$5,291,143 in Q4 2024 from $5,778,291 in Q3 2024, but increased from$4,848,064 in Q4 2023[29] Personnel and Operating Costs - Personnel expenses increased by $3.5 million (11.7$3.5 million related to the termination of the defined benefit pension plan[12] - The termination of the defined benefit pension plan is expected to reduce annual operating costs by approximately $1.0 million[12] Capital and Shareholder Equity - The company repurchased 79,713 shares of its stock at a weighted average price of$44.02[4] - Average shareholders' equity for Q4 2024 was $231,993 thousand, compared to$231,785 thousand in Q3 2024 and $207,834 thousand in Q4 2023[27] - Common equity tier 1 ratio decreased to 13.84$2,395,081 thousand, up from $2,260,760 thousand in September 30, 2024, but down from$2,478,622 thousand in December 31, 2023[25] - Average interest-earning assets for Q4 2024 were $2,022,794 thousand, compared to$2,001,740 thousand in Q3 2024 and $2,075,641 thousand in Q4 2023[27] Credit and Risk Management - Allowance for credit losses to loans remained stable at 1.24$3.0 million and an earnout based on annualized recurring revenue of $2.5 million[15]