Cass Information Systems(CASS) - 2024 Q1 - Quarterly Results

Financial Performance - First quarter 2024 earnings per diluted share were $0.52, a 2.0% increase from $0.51 in the first quarter of 2023, but a 14.8% decrease from $0.61 in the fourth quarter of 2023[1] - Net income for the first quarter of 2024 was $7.2 million, reflecting a 0.5% increase from $7.1 million in the same period last year, but a 15.0% decrease from the previous quarter[1] - Total revenues for Q1 2024 were $49.678 million, compared to $50.736 million in Q4 2023 and $49.345 million in Q1 2023[30] - Net income for Q1 2024 was $7.152 million, down from $8.410 million in Q4 2023 but slightly up from $7.117 million in Q1 2023[30] - Basic earnings per share for Q1 2024 were $0.53, compared to $0.62 in Q4 2023 and $0.52 in Q1 2023[30] Revenue and Expenses - Total fee revenue for Q1 2024 was $32.030 million, slightly down from $32.195 million in Q4 2023 and up from $30.772 million in Q1 2023[30] - Net interest income for Q1 2024 was $16.476 million, down from $17.034 million in Q4 2023 and up from $16.898 million in Q1 2023[30] - Facility expense dollar volumes reached $5.3 billion, marking a 0.3% increase year-over-year and a 9.9% increase from the fourth quarter of 2023[2] - Personnel expenses rose by $581,000, or 1.9%, with salaries and commissions increasing by $1.4 million, or 6.1%[5] - Processing fees increased by $1.7 million, or 8.9%, driven by a 23.0% increase in facility transaction volumes[12] Asset and Liability Management - Average interest-earning assets decreased to $2.063 billion in Q1 2024 from $2.075 billion in Q4 2023[31] - Average loans decreased to $1.016 billion in Q1 2024 from $1.025 billion in Q4 2023[31] - Average deposits decreased by $65.2 million, or 5.7%, compared to Q1 2023, but increased by $22.5 million, or 2.1%, compared to Q4 2023[26] - Average non-interest bearing deposits decreased to $447.9 million in Q1 2024 from $464.9 million in Q4 2023[31] Credit Quality - The company recorded a provision for credit losses of $95,000, compared to a release of $340,000 in the first quarter of 2023, driven by a 2.2% increase in total loans[14] - The company maintained exceptional credit quality, with no non-performing loans or charge-offs reported[10] - Total shareholders' equity decreased by $322,000 since December 31, 2023, primarily due to an increase in accumulated other comprehensive loss[7] Market Trends - Transportation dollar volumes were $8.9 billion, down 12.9% compared to the first quarter of 2023 and 1.2% from the fourth quarter of 2023[11] - Net interest income decreased by $422,000, or 2.5%, due to a decline in average interest-earning assets of $99.5 million, or 4.6%[4] - The Company's net interest margin declined by 4 basis points to 3.30% in Q4 2023, primarily due to a $91.6 million decrease in average non-interest bearing funding[24]