CASS INFORMATION SYSTEMS INC Files Q3 2024 10-Q

TL;DR

**CASS Q3 2024 10-Q FILED: Financials are in, check the numbers.**

AI Summary

CASS INFORMATION SYSTEMS INC filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial metrics and business segment information are provided, reflecting the company's ongoing operations and strategic positioning.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Cass Information Systems Inc., crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures, with no immediate red flags or significant new risks highlighted.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-11-07 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• CASS INFORMATION SYSTEMS INC (company) — Filer of the 10-Q
• 0000708781 (company) — Central Index Key for Cass Information Systems Inc.
• 20240930 (date) — End of the reporting period
• 20241107 (date) — Filing date

FAQ

Key Financial Figures

• $3,000 — there was a release of credit losses of $3,000 and

Filing Documents

• cass-20240930.htm (10-Q) — 1731KB
• cass-20240930xex311.htm (EX-31.1) — 10KB
• cass-20240930xex312.htm (EX-31.2) — 10KB
• cass-20240930xex321.htm (EX-32.1) — 5KB
• cass-20240930xex322.htm (EX-32.2) — 5KB
• 0000708781-24-000091.txt ( ) — 8180KB
• cass-20240930.xsd (EX-101.SCH) — 40KB
• cass-20240930_cal.xml (EX-101.CAL) — 86KB
• cass-20240930_def.xml (EX-101.DEF) — 244KB
• cass-20240930_lab.xml (EX-101.LAB) — 518KB
• cass-20240930_pre.xml (EX-101.PRE) — 407KB
• cass-20240930_htm.xml (XML) — 1553KB

– Financial Information

PART I – Financial Information Item 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Consolidated Balance Sheets September 30, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income Three and Nine Month s Ended September 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income Three and Nine Mont hs Ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows Nine Month s Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Shareholders' Equity Three and Nine Month s Ended September 30, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 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 22 Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 35 Item 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 35

– Other Information – Items 1. – 6

PART II – Other Information – Items 1. – 6. 37

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) September 30, 2024 (Unaudited) December 31, 2023 Assets Cash and due from banks $ 29,125 $ 20,908 Short-term investments 201,431 351,560 Cash and cash equivalents 230,556 372,468 Securities available-for-sale, at fair value 550,756 627,117 Loans 1,078,387 1,014,318 Less: Allowance for credit losses 13,447 13,089 Loans, net 1,064,940 1,001,229 Payments in advance of funding 207,202 198,861 Premises and equipment, net 34,295 30,093 Investment in bank-owned life insurance 49,885 49,159 Goodwill 17,309 17,309 Other intangible assets, net 2,789 3,345 Accounts and drafts receivable from customers 30,892 110,651 Other assets 72,136 68,390 Total assets $ 2,260,760 $ 2,478,622 Liabilities and Shareholders' Equity Liabilities: Deposits: Noninterest-bearing $ 392,573 $ 524,359 Interest-bearing 654,750 616,455 Total deposits 1,047,323 1,140,814 Accounts and drafts payable 936,463 1,071,369 Other liabilities 39,327 36,630 Total liabilities 2,023,113 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 September 30, 2024 and December 31, 2023; 13,582,282 and 13,582,375 shares outstanding at September 30, 2024 and December 31, 2023, respectively. 7,753 7,753 Additional paid-in capital 205,026 208,007 Retained earnings 148,092 145,782 Common shares in treasury, at cost ( 1,923,490 shares at September 30, 2024 and 1,923,397 shares at December 31, 2023) ( 84,139 ) ( 84,264 ) Accumulated other comprehensive loss ( 39,085 ) ( 47,469 ) Total shareholders' equity 237,647 229,809 Total liabilities and shareholders' equity $ 2,260,760 $ 2,478,622 See accompanying notes to unaudited consolidated financial state

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: September 30, 2024 December 31, 2023 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 6,470 $ ( 5,039 ) $ 6,470 $ ( 4,851 ) Patents 72 ( 39 ) 72 ( 36 ) Software 3,212 ( 2,252 ) 3,212 ( 1,933 ) Trade name 373 ( 91 ) 373 ( 70 ) Other 500 (

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