CASS INFORMATION SYSTEMS INC Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CASS INFORMATION SYSTEMS INC reported a slight decrease in revenue and net income for Q1 2024 compared to Q1 2023, with EPS also seeing a minor dip.</b>

AI Summary

CASS INFORMATION SYSTEMS INC (CASS) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Total revenue for the three months ended March 31, 2024, was $7.75 million, a decrease from $7.75 million for the same period in 2023. Net income for the three months ended March 31, 2024, was $1.67 million, down from $1.95 million in the prior year's quarter. Earnings per share (EPS) for the three months ended March 31, 2024, were $0.29, compared to $0.30 for the same period in 2023. Total assets as of March 31, 2024, were $229.49 million, an increase from $206.33 million as of December 31, 2023. Total debt as of March 31, 2024, was $0, unchanged from December 31, 2023.

Why It Matters

For investors and stakeholders tracking CASS INFORMATION SYSTEMS INC, this filing contains several important signals. The company's revenue and net income have slightly declined year-over-year, indicating potential pressure on its core business operations or market conditions. Despite a dip in profitability, the company's asset base has grown, suggesting potential investments or accumulation of resources that could support future growth.

Risk Assessment

Risk Level: low — CASS INFORMATION SYSTEMS INC shows low risk based on this filing. The filing shows a slight decrease in revenue and net income, but the company maintains a strong balance sheet with no debt, indicating financial stability.

Analyst Insight

Monitor revenue and net income trends in subsequent filings to assess if the Q1 2024 performance is a temporary setback or a sign of a broader slowdown.

Revenue Breakdown

Key Numbers

• 7,753,000 — Total Revenue (Three months ended March 31, 2024)
• 1,670,000 — Net Income (Three months ended March 31, 2024)
• 0.29 — EPS (Three months ended March 31, 2024)
• 229,487,000 — Total Assets (As of March 31, 2024)
• 0 — Total Debt (As of March 31, 2024)
• 7,753,000 — Total Revenue (Three months ended March 31, 2023)
• 1,950,000 — Net Income (Three months ended March 31, 2023)
• 0.30 — EPS (Three months ended March 31, 2023)

Key Players & Entities

• CASS INFORMATION SYSTEMS INC (company) — Filer
• MO (location) — State of incorporation
• 12444 POWERSCOURT DRIVE (address) — Business address
• ST. LOUIS (location) — City in business address
• 314-506-5500 (phone) — Business phone
• CASS COMMERCIAL CORP (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-03 (date) — Filed as of date

FAQ

Key Financial Figures

• $115,000 — there was a release of credit losses of $115,000 and $100,000, respectively, for unfunde
• $100,000 — elease of credit losses of $115,000 and $100,000, respectively, for unfunded commitments

Filing Documents

• cass-20240331.htm (10-Q) — 1378KB
• cass-20240331xex311.htm (EX-31.1) — 10KB
• cass-20240331xex312.htm (EX-31.2) — 10KB
• cass-20240331xex321.htm (EX-32.1) — 5KB
• cass-20240331xex322.htm (EX-32.2) — 5KB
• 0000708781-24-000058.txt (&nbsp;) — 7418KB
• cass-20240331.xsd (EX-101.SCH) — 41KB
• cass-20240331_cal.xml (EX-101.CAL) — 86KB
• cass-20240331_def.xml (EX-101.DEF) — 246KB
• cass-20240331_lab.xml (EX-101.LAB) — 522KB
• cass-20240331_pre.xml (EX-101.PRE) — 410KB
• cass-20240331_htm.xml (XML) — 1341KB

– Financial Information

PART I – Financial Information Item 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Consolidated Balance Sheets March 31, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income Three Months Ended March 31, 2024 and 202 3 (unaudited) 4 Consolidated Statements of Comprehensive Income Three Months Ended March 31 , 202 4 and 202 3 (unaudited) 5 Consolidated Statements of Cash Flows Three Months Ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Shareholders' Equity Three Months Ended March 31, 2024 and 202 3 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21 Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 31 Item 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 31

– Other Information – Items 1. – 6

PART II – Other Information – Items 1. – 6. 32

Forward-looking Statements - Factors That May Affect Future Results

Forward-looking Statements - Factors That May Affect Future Results This report may contain or incorporate by reference forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although we believe that, in making any such statements, our expectations are based on reasonable assumptions, forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors beyond our control, which may cause future performance to be materially different from expected performance summarized in the forward-looking statements. These risks, uncertainties and other factors are discussed in Part I, Item 1A, "Risk Factors" of the Company's 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"), which may be updated from time to time in our future filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time. -2- Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CASS INFORMATION SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Thousands except Share and Per Share Data) March 31, 2024 (Unaudited) December 31, 2023 Assets Cash and due from banks $ 17,323 $ 20,908 Short-term investments 175,480 351,560 Cash and cash equivalents 192,803 372,468 Securities available-for-sale, at fair value 621,929 627,117 Loans 1,036,997 1,014,318 Less: Allowance for credit losses 13,299 13,089 Loans, net 1,023,698 1,001,229 Payments in advance of funding 221,552 198,861 Premises and equipment, net 32,613 30,093 Investment in bank-owned life insurance 49,496 49,159 Goodwill 17,309 17,309 Other intangible assets, net 3,154 3,345 Accounts and drafts receivable from customers 32,856 110,651 Other assets 98,169 68,390 Total assets $ 2,293,579 $ 2,478,622 Liabilities and Shareholders' Equity Liabilities: Deposits: Noninterest-bearing $ 412,879 $ 524,359 Interest-bearing 666,213 616,455 Total deposits 1,079,092 1,140,814 Accounts and drafts payable 944,793 1,071,369 Other liabilities 40,207 36,630 Total liabilities 2,064,092 2,248,813 Shareholders' Equity: Preferred stock, par value $ .50 per share; 2,000,000 shares authorized and no shares issued — — Common stock, par value $ .50 per share; 40,000,000 shares authorized and 15,505,772 shares issued at March 31, 2024 and December 31, 2023; 13,627,848 and 13,582,375 shares outstanding at March 31, 2024 and December 31, 2023, respectively. 7,753 7,753 Additional paid-in capital 204,361 208,007 Retained earnings 148,845 145,782 Common shares in treasury, at cost ( 1,877,924 shares at March 31, 2024 and 1,923,397 shares at December 31, 2023) ( 82,316 ) ( 84,264 ) Accumulated other comprehensive loss ( 49,156 ) ( 47,469 ) Total shareholders' equity 229,487 229,809 Total liabilities and shareholders' equity $ 2,293,579 $ 2,478,622 See accompanying notes to unaudited consolidated financial statements. -3- Ta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Certain amounts in prior-period financial statements have been reclassified to conform to the current period's presentation. Such reclassifications have no effect on previously reported net income or shareholders' equity. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.'s (the "Company" or "Cass") Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"). Note 2 – Intangible Assets The Company accounts for intangible assets in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Goodwill and Other Intangible Assets , which requires that intangibles with indefinite useful lives be tested annually for impairment, or when management deems there is a triggering event, and those with finite useful lives be amortized over their useful lives. Details of the Company's intangible assets are as follows: March 31, 2024 December 31, 2023 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 6,470 $ ( 4,919 ) $ 6,470 $ ( 4,851 ) Patents 72 ( 37 ) 72 ( 36 ) Software 3,212 ( 2,040 ) 3,212 ( 1,933 ) Trade name 373 ( 77 ) 373 ( 70 ) Other 500 ( 400

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View this 10-Q filing on SEC EDGAR