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

Financial Performance - The Company reported a return on average assets of 1.20% and a return on average equity of 12.66%[17] - The Company reported a net income of $7.152 million for the quarter ended March 31, 2024, compared to $7.117 million for the same period in 2023[92] - Net cash flows from operating activities were $9.8 million for the three months ended March 31, 2024, an increase of $534,000 from the same period in 2023[34] Revenue and Income Sources - Processing fee revenue increased by $1.7 million, or 8.9%, driven by a 23.0% rise in facility-related invoice volumes[20] - Net interest income decreased due to a $99.5 million, or 4.6%, decline in average earning assets, while the net interest margin increased to 3.26% from 3.23%[21] Assets and Investments - Total assets as of March 31, 2024, amounted to $2,478.622 million, with loans net of allowance for credit losses at $1,001.229 million[84][85] - Average short-term investments rose by $57.0 million, or 19.3%, to $352.2 million, with an average yield increase of 79 basis points to 5.07%[23] - Total investment securities were $621.9 million at March 31, 2024, a decrease of $5.2 million from December 31, 2023[33] - The investment securities portfolio decreased by $5.2 million, or 0.8%, during the first three months of 2024, due to maturities of $39.6 million and an increase in unrealized losses of $1.7 million[75] Liabilities and Equity - Total liabilities decreased by $184.7 million, or 8.2%, to $2.06 billion from December 31, 2023[32] - The total shareholders' equity as of March 31, 2024, was $229.487 million, slightly down from $229.809 million at the end of 2023[85] - Cash dividends declared were $0.30 per share, totaling $4.089 million for the quarter[94] Loans and Credit - Loans increased by $22.7 million, or 2.2%, from December 31, 2023, reflecting growth in the commercial and industrial loan portfolio[31] - The allowance for credit losses (ACL) was $13.3 million, representing 1.28% of outstanding loans as of March 31, 2024[27] Other Financial Activities - The Company experienced a decrease in cash and cash equivalents of $179.7 million, or 48.2%, during the first three months of 2024[30] - The Company experienced an increase in accounts receivable by $1.601 million during the quarter[92] - The Company reported an increase in current income tax liability by $1.786 million[92] - The Company purchased 23,271 common shares during the quarter[94] Legal Matters - The Company is subject to various pending legal actions, but management believes these will not materially affect its financial condition[77] Capital and Regulatory Compliance - The Company continues to exceed all regulatory capital requirements, maintaining strong capital ratios[76]