Cass Information Systems(US:CASS)2025-10-23 12:22Financial 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]