Cass Information Systems(US:CASS)2025-05-05 21:08Earnings Performance - First quarter 2025 earnings per diluted share were $0.66, up 26.9% from $0.52 in Q1 2024 and 100% from $0.33 in Q4 2024[1] - Net income for Q1 2025 was $9.0 million, a 25.4% increase from $7.2 million in Q1 2024 and a 95.2% increase from $4.6 million in Q4 2024[1] - Total revenues for Q1 2025 were $46.4 million, a slight increase from $45.1 million in Q1 2024[23] Asset and Loan Management - Total assets as of March 31, 2025, were $2,318,457, a decrease of 3.2% from $2,395,081 on December 31, 2024[25] - Net loans increased to $1,127,588 as of March 31, 2025, up 5.5% from $1,068,594 at the end of 2024[25] - Average loans for the quarter ended March 31, 2025, were $1,109,526, up 4.1% from $1,065,944 in the previous quarter[27] Deposits and Funding - Average deposits decreased by $46.1 million, or 4.3%, compared to Q1 2024, attributed to client funding needs for acquisitions[16] - Total deposits rose to $1,000,075, reflecting an increase of 3.1% from $967,916 on December 31, 2024[25] Interest Income and Margin - Net interest income rose by $2.8 million, or 17.0%, to $19.3 million, driven by an increase in net interest margin to 3.75% from 3.26%[5][9] - The net interest margin for the quarter was 3.75%, an increase from 3.55% in the previous quarter[29] - Average interest-earning assets increased to $2,104,603, up 4.0% from $2,022,794 in the prior quarter[27] Credit Losses and Provisions - The company recorded a provision for credit losses of $905,000 in Q1 2025, compared to $95,000 in Q1 2024, due to a 5.5% increase in total loans[11] Shareholder Actions - The company repurchased 116,109 shares at a weighted average price of $42.86, totaling $5.0 million[5] Operational Changes - The successful sale of the Telecom Expense Management business is expected to allow the company to focus on its strengths in financial exchange and information processing[3] Employee Metrics - Average full-time equivalent employees remained stable at 1,008 for the quarter ended March 31, 2025, unchanged from the previous quarter[29] Financial Ratios - Return on average equity improved to 15.91% for the quarter ended March 31, 2025, compared to 7.88% in the previous quarter[29] - Common equity tier 1 ratio improved to 14.11% as of March 31, 2025, compared to 13.84% at the end of 2024[29] Other Income - Net income from discontinued operations for the quarter was $415, a slight decrease from $434 in the previous quarter[33] Transportation and Facility Expenses - Transportation invoice volumes decreased by 4.7% year-over-year to 8.36 million, while dollar volumes were $8.6 billion, down 3.3% from Q1 2024[4] - Facility expense invoice volumes increased by 2.7% year-over-year to 4.2 million, with dollar volumes totaling $5.8 billion, reflecting a 16.1% increase from Q1 2024[6]