{"success":true,"data":{"pressRelease":{"id":"6487","rtpr_id":"nGNX4nkY3g","ticker":"CASS","exchange":"NASDAQ","all_tickers":["CASS"],"title":"Cass Information Systems reports First Quarter 2026 Results","author":"Globe Newswire","published_at":"2026-04-23T12:00:02.978Z","article_body":"Reports another quarter of strong EPS growth\n\nContinued net interest margin expansion\n\nStrong expense control\n\nST. LOUIS, April 23, 2026 (GLOBE NEWSWIRE) -- Cass Information Systems, Inc.\n(Nasdaq: CASS) (the Company or Cass) today reported its first quarter 2026\nearnings.\n\nFirst Quarter Financial Highlights\n* Net income and diluted earnings per share of $8.8 million and $0.67,\nrespectively.\n* Adjusted net income and adjusted diluted earnings per share from continuing\noperations of $8.7 million and $0.66, respectively, increases of 23.7% and\n26.9%, respectively, compared to the prior year quarter.\n* Increase in net interest margin to 3.95%, compared to 3.75% in the prior\nyear quarter.\n* Increase in facility dollar volumes of 7.4% compared to the prior year\nquarter.\n* Personnel expense levels flat compared to the prior year quarter as a result\nof ongoing automation and efficiency initiatives.\n* Continued strong asset quality with no loan charge-offs and an allowance for\ncredit losses to loans ratio of 1.27%. In addition, reduced non-performing\nloans by $3.9 million, or 55.1% as compared to December 31, 2025.\n* Repurchased 64,802 shares of Company stock at a weighted average price of\n$44.34.\nMartin Resch, the Company’s President and Chief Executive Officer, noted,\n“The management team is proud of how we have started the year. We continue\nto drive revenue growth while keeping core expenses relatively flat compared\nto prior periods.” Resch added, “Going forward in 2026, we see\nopportunities to grow net interest income driven by rising funding balances\nand the deployment of those funds into loans and investment securities, as\nwell as increasing financial fees from higher demand for advances through\nAmplify and other quick pay solutions. The ability to combine revenue growth\nwith expense control, primarily due to automation and the ongoing\nconsolidation within our Facilities division, offers very compelling earnings\nmomentum for us in coming periods.\"\n\nEarnings for the first quarter of 2026 are summarized as follows:\n\n ($ in thousands, except per share data) Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Net income $ 8,832 $ 8,189 $ 9,106 $ 8,855 $ 8,966 \n Diluted earnings per share from continuing operations $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Diluted earnings per share $ 0.67 $ 0.62 $ 0.68 $ 0.66 $ 0.66 \n Return on average equity 14.63 % 13.45 % 15.29 % 15.35 % 15.91 % \n Return on average assets 1.42 % 1.28 % 1.44 % 1.48 % 1.51 % \n Net interest margin 3.95 % 3.93 % 3.87 % 3.78 % 3.75 % \n \n\n\n\n ($ in thousands, except per share data) Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations (GAAP) $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Net income adjustments ((1)) (4 ) 821 (3 ) 2,674 (1,489 ) \n Adjusted net income from continuing operations (Non-GAAP) ((1)) $ 8,735 $ 9,010 $ 9,209 $ 7,834 $ 7,062 \n Diluted earnings per share from continuing operations (GAAP) $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Adjusted diluted earnings per share from continuing operations (Non-GAAP) ((1)) $ 0.66 $ 0.68 $ 0.69 $ 0.58 $ 0.52 \n ((1)   )Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release. \n \n\nFirst Quarter 2026 Financial Commentary\n\n(All comparisons refer to the first quarter of 2025, except as noted)\n\nTransportation Invoice and Dollar Volumes – Transportation invoice volumes\nof 8.1 million decreased 3.1% as compared to the first quarter of 2025.\nTransportation dollar volumes of $9.0 billion increased 4.5% as compared to\nthe first quarter of 2025. The average dollars per invoice were $1,115 in the\nfirst quarter of 2026, compared to $1,093 in the fourth quarter of 2025 and\n$1,034 in the first quarter of 2025. Invoice volumes remain lower than prior\nperiods primarily due to the ongoing freight recession. Dollars per invoice\nincreased as compared to the first quarter of 2025 due to an increase in\noverall freight rates, as well as the impact of tariffs. A more detailed\nanalysis of Cass Freight Index® changes can be found at www.cassinfo.com.\n\nFacility Expense Invoice and Dollar Volumes – Facility expense invoice\nvolumes of 4.0 million decreased 4.4% as compared to the first quarter of\n2025. Facility expense dollar volumes totaled $6.3 billion, an increase of\n7.4% as compared to the first quarter of 2025. The increase in facility dollar\nvolumes was primarily driven by rising energy prices.\n\nProcessing Fees – Processing fees decreased $741,000, or 4.5% over the same\nperiod in the prior year due to lower transportation and facility transaction\nvolumes.\n\nFinancial Fees – Financial fees, earned on a transactional level basis for\ninvoice payment services when making customer payments, increased $470,000, or\n4.7%. The increase in financial fees was primarily due to an increase in\naverage payments in advance of funding of 2.0%. The Company has recently seen\nincreased demand for its quick pay solutions and continues to focus on the\nrollout of its Amplify working capital solution as well as other opportunities\nto increase payments in advance of funding and resulting financial fees in\nfuture quarters.\n\nNet Interest Income – Net interest income increased $1.9 million, or 10.1%.\nThe increase in net interest income was attributable to the net interest\nmargin improving to 3.95% as compared to 3.75% in the same period last year,\nin addition to an increase in average interest-earning assets of $110.2\nmillion, or 5.2%.\n\nThe Company’s net interest margin improvement was driven by increases in the\naverage yield on loans and investment securities of 20 and 83 basis points,\nrespectively, combined with a decrease in the average cost of total deposits\nof 15 basis points, partially offset by a decrease in the yield on short-term\ninvestments of 73 basis points. The increase in loan yield was driven by the\ncontinued maturity and subsequent re-pricing of fixed rate loans originated in\nthe years 2021 and 2022 to current market interest rates as well as the payoff\nof a non-performing loan which increased the loan yield by seven basis points.\nThe increase in the investment securities yield was driven by the partial\nrepositioning of the portfolio at the end of the second quarter of 2025 as\nwell as purchases of investments at current market rates. The decline in the\ncost of total deposits and yield on short-term investments was driven by the\nreduction in the federal funds rate.\n\nThe Company would expect continued expansion in its net interest margin in\nfuture quarters to the extent 3-5 year U.S. Treasury interest rates stay\nrelatively consistent or increase as compared to current levels.\n\nProvision for Credit Losses - The Company recorded a provision for credit\nlosses of $61,000 during the first quarter of 2026 as compared to $905,000 in\nthe first quarter of 2025. The provision for credit losses for the first\nquarter of 2026 was largely driven by loan growth.\n\nPersonnel Expenses - Personnel expenses were flat as compared to the first\nquarter of 2025. Salaries and commissions decreased $395,000, or 2.0%, as a\nresult of the decrease in average full-time equivalent employees (“FTEs”)\nof 7.9% due to automation and the ongoing consolidation within our Facilities\ndivision, partially offset by merit increases. Share-based compensation and\nemployee profit sharing increased $198,000 and $132,000, respectively, due to\nthe improvement in net income from continuing operations. Other benefits\nincreased $65,000, or 1.3%, due to higher health insurance costs, partially\noffset by the decrease in average FTEs.\n\nThe Company continues to expect a gradual decline in its FTEs in future\nquarters as a result of the continued focus on AI-enabled systems and other\noperational efficiency opportunities.\n\nEquipment Expense - Equipment expense increased $138,000 as compared to the\nfirst quarter of 2025 primarily due to an increase in depreciation and\nlicensing and maintenance expense on software related to recently completed\ntechnology initiatives.\n\nOther Expense - Other expense increased $590,000, or 8.5%, as compared to the\nfirst quarter of 2025. The increase is primarily due to higher business\ndevelopment, postage and professional fees.\n\nLoans - When compared to December 31, 2025, loans increased $27.5 million, or\n2.6%. Other commercial and industrial loans increased $22.7 million during the\nfirst quarter of 2026. The Company expects loan growth of 6-8% for full year\n2026.\n\nPayments in Advance of Funding – Average payments in advance of funding\nincreased $3.4 million, or 2.0%, as compared to the first quarter of 2025,\nprimarily due to a 4.5% increase in transportation dollar volumes. The ending\nbalance of payments in advance of funding increased $96.1 million, or 58.4%,\nas compared to December 31, 2025. The increase is due to a recent higher level\nof demand for the Company’s quick pay solutions as well as timing of quarter\nend advances.\n\nDeposits – Average deposits increased $36.6 million, or 3.5%, when compared\nto the first quarter of 2025.\n\nAccounts and Drafts Payable - Average accounts and drafts payable increased\n$100.1 million, or 9.3%, as compared to the first quarter of 2025. The\nincrease in these balances, which are non-interest bearing, are primarily\nreflective of the increase in transportation and facility dollar volumes of\n4.5% and 7.4%, respectively.\n\nShort-term Borrowings - The Company had outstanding borrowings of $145.0\nmillion on its lines of credit at March 31, 2026 primarily in order to fund a\n$96.1 million increase in payments in advance of funding as compared to\nDecember 31, 2025.\n\nShareholders’ Equity - Total shareholders’ equity decreased $1.2 million\nas compared to December 31, 2025 as a result of the repurchase of Company\nstock of $2.9 million, dividends of $4.1 million, and an increase in\naccumulated other comprehensive loss of $3.4 million, partially offset by net\nincome of $8.8 million.\n\nDividend - On April 21, 2026, the Company’s Board of Directors approved a\nquarterly dividend of $0.32 per share with the dividend payable on June 15,\n2026 to shareholders of record on June 5, 2026.\n\nRepurchase of Common Stock - The Company repurchased 64,802 shares of common\nstock during the current quarter. The Company anticipates further repurchases\nin coming quarters with an overall objective of maintaining a leverage ratio\nof approximately 10.00%. Future levels of repurchases will depend on market\nconditions, earnings, balance sheet growth and potential acquisition\nopportunities.\n\nAsset Quality - Non-performing loans totaled $3.1 million at March 31, 2026,\na decrease of $3.9 million as compared to December 31, 2025. The Company\nreceived a full payoff on one of its three non-performing loans during the\nfirst quarter of 2026 and does not believe there is more than nominal loss\nexposure on the remaining two loans based on collateral position.\n\nAbout Cass Information Systems\n\nCass Information Systems, Inc. is a leading provider of integrated information\nand payment management solutions. Cass enables enterprises to achieve\nvisibility, control and efficiency in their supply chains, communications\nnetworks, facilities and other operations. Disbursing over $94 billion\nannually on behalf of clients, and with total assets of $2.5 billion, Cass is\nuniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly\nowned subsidiary, Cass Commercial Bank provides sophisticated financial\nexchange services to the parent organization and its clients. Cass is part of\nthe Russell 2000(®). More information is available at www.cassinfo.com.\n\nOn April 7, 2025, the Company signed an Asset Purchase Agreement providing for\nthe sale of its Telecom Expense Management & Managed Mobility Services\n(“TEM”) business to Asignet USA Inc. The sale closed on June 30, 2025. The\nCompany has applied discontinued operations accounting in accordance with FASB\nAccounting Standards Codification (“ASC”), Topic 205-20, “Presentation\nof Financial Statements – Discontinued Operations,” to the assets and\nliabilities sold related to the Company's TEM Business Unit as of and for the\nperiods ended March 31, 2026, December 31, 2025, September 30, 2025, June 30,\n2025, and March 31, 2025, as applicable. All financial information in this\nearnings release is reported on a continuing operations basis, unless\notherwise noted.\n\nAbout Non-GAAP Financial Measures\n\nCertain of the financial measures and ratios the Company presents, including\n“adjusted net income from continuing operations,” and “adjusted diluted\nearnings per share from continuing operations,” are supplemental measures\nthat are not required by, or are not presented in accordance with, U.S.\ngenerally accepted accounting principles (GAAP). The Company refers to these\nfinancial measures and ratios as “non-GAAP financial measures.” The\nCompany considers the use of select non-GAAP financial measures and ratios to\nbe useful for financial and operational decision making and useful in\nevaluating period-to-period comparisons. The Company believes that these\nnon-GAAP financial measures provide meaningful supplemental information\nregarding its performance by excluding certain revenue and expense items that\nthe Company believes are not indicative of its primary business operating\nresults or by presenting certain metrics on a fully taxable equivalent basis.\nThe Company believes that management and investors benefit from referring to\nthese non-GAAP financial measures in assessing the Company’s performance and\nwhen planning, forecasting, analyzing and comparing past, present and future\nperiods.\n\nThese non-GAAP financial measures should not be considered a substitute for\nfinancial information presented in accordance with GAAP and you should not\nrely on non-GAAP financial measures alone as measures of the Company’s\nperformance. The non-GAAP financial measures the Company presents may differ\nfrom non-GAAP financial measures used by the Company’s peers or other\ncompanies. The Company compensates for these differences by providing the\nequivalent GAAP measures whenever the Company presents the non-GAAP financial\nmeasures and by including a reconciliation of the impact of the components\nadjusted for in the non-GAAP financial measure so that both measures and the\nindividual components may be considered when analyzing the Company’s\nperformance. A reconciliation of non-GAAP financial measures to the comparable\nGAAP financial measures is included at the end of the financial statement\ntables.\n\nForward Looking Information\n\nAll statements other than statements of historical fact included in this\nrelease, including without limitation the Company’s future prospects and\nperformance, the business strategy and the plans and objectives of the\nCompany's management for future operations, are forward-looking statements\nwithin the meaning of the Private Securities Litigation Reform Act of 1995.\nWhen used in this release, words such as “estimate,” “could,”\n“should,” “would,” “likely,” “may,” “will,” “plan,”\n“intend,” “believes,” “expects,” “anticipates,”\n“projected,” and variations of these terms and similar expressions.\nAlthough the Company believes that the expectations reflected in the\nforward-looking statements are reasonable, the Company cannot guarantee future\nresults, levels of activity, performance, or achievements. Actual results or\nbusiness conditions may differ materially from those projected or suggested in\nforward-looking statements as a result of various factors including, but not\nlimited to, those described below and in Part I, Item 1A, “Risk Factors”\nof our most recent Annual Report.\n\nActual results could differ materially from those contemplated by the\nforward-looking statements as a result of certain factors, including but not\nlimited to general economic, market or business conditions unrelated to the\nCompany’s operating performance, including inflation, changes in interest\nrates, changes in energy prices, supply chain disruptions, financial\ninstitution disruptions, geopolitical conflicts, public health emergencies and\ndeclines in consumer confidence and discretionary spending; the Company’s\nability to compete with its competitors and increase market share; the\nCompany’s ability to maintain compliance with rules and regulations\napplicable to our business operations and industry; increased regulatory\nexamination scrutiny or new regulatory requirements; whether the Company’s\ncustomers continue to utilize its payment processing and related services;\nunfavorable developments concerning customer credit quality; risk associated\nwith lending concentrations including, but not limited to, faith-based\nministries and franchise restaurants; liquidity risk; and risks associated\nwith cyber-attacks and data breaches.\n\nReaders are cautioned not to place undue reliance on these forward-looking\nstatements. Any forward-looking statement made by the Company in this release\nspeaks only as of the date of this release. Unless required by law, the\nCompany does not undertake to release publicly any revisions to these\nforward-looking statements to reflect future events or circumstances or to\nreflect the occurrence of unanticipated events. If the Company updates one or\nmore forward-looking statements, no inference should be drawn that the Company\nwill make additional updates with respect to those or other forward-looking\nstatements.\n\nConsolidated Statements of Income (unaudited)\n\n($ and numbers in thousands, except per share data)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Processing fees $ 15,728 $ 16,304 $ 16,655 $ 16,700 $ 16,469 \n Financial fees 10,431 9,860 10,416 10,161 9,961 \n Total fee revenue $ 26,159 $ 26,164 $ 27,071 $ 26,861 $ 26,430 \n \n Interest and fees on loans 15,277 15,521 15,632 15,837 15,350 \n Interest and dividends on investment securities 6,995 6,767 5,679 4,799 4,147 \n Interest on short-term investments 2,832 3,078 3,860 3,003 3,893 \n Total interest income $ 25,104 $ 25,366 $ 25,171 $ 23,639 $ 23,390 \n Interest expense 3,888 3,895 4,151 4,164 4,116 \n Net interest income $ 21,216 $ 21,471 $ 21,020 $ 19,475 $ 19,274 \n (Provision for) release of credit losses (61 ) 389 193 (25 ) (905 ) \n Gain (loss) on sale of investment securities 5 38 4 (3,558 ) (18 ) \n Other 1,782 1,827 1,768 1,645 1,626 \n Total revenues $ 49,101 $ 49,889 $ 50,056 $ 44,398 $ 46,407 \n Salaries and commissions 19,268 20,304 20,105 20,638 19,663 \n Share-based compensation 1,439 1,009 1,018 918 1,241 \n Employee profit sharing 1,634 1,514 1,685 1,583 1,502 \n Other benefits 4,938 4,602 4,798 4,613 4,873 \n Total personnel expenses $ 27,279 $ 27,429 $ 27,606 $ 27,752 $ 27,279 \n Occupancy 681 643 734 669 721 \n Equipment 2,432 2,548 2,513 2,562 2,294 \n Amortization of intangible assets 293 293 293 293 293 \n Bad debt recovery — — — — (2,000 ) \n Other 7,533 8,988 7,295 6,843 6,943 \n Total operating expenses $ 38,218 $ 39,901 $ 38,441 $ 38,119 $ 35,530 \n Income from continuing operations, before income tax expense $ 10,883 $ 9,988 $ 11,615 $ 6,279 $ 10,877 \n Income tax expense 2,144 1,799 2,403 1,119 2,326 \n Net income from continuing operations $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Income (loss) from discontinued operations, net of tax 93 — (106 ) 3,695 415 \n Net income $ 8,832 $ 8,189 $ 9,106 $ 8,855 $ 8,966 \n \n Basic earnings per share from continuing operations $ .68 $ .63 $ .70 $ .39 $ .64 \n Basic earnings (loss) per share from discontinued operations .01 — (.01) .28 .03 \n Basic earnings per share $ .69 $ .63 $ .69 $ .67 $ .67 \n \n Diluted earnings per share from continuing operations $ .66 $ .62 $ .69 $ .38 $ .63 \n Diluted earnings (loss) per share from discontinued operations .01 — (.01) .28 .03 \n Diluted earnings per share $ .67 $ .62 $ .68 $ .66 $ .66 \n \n\nConsolidated Balance Sheets (unaudited)\n\n($ in thousands)\n\n As of \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Assets: \n Cash and cash equivalents $ 244,343 $ 392,268 $ 258,634 $ 218,165 $ 220,674 \n Investment securities available-for-sale, at fair value 785,343 770,772 717,369 599,541 576,510 \n Loans 1,088,730 1,061,217 1,088,347 1,117,004 1,141,874 \n Less: Allowance for credit losses (13,861 ) (13,597 ) (14,066 ) (14,296 ) (14,286 ) \n Loans, net $ 1,074,869 $ 1,047,620 $ 1,074,281 $ 1,102,708 $ 1,127,588 \n Payments in advance of funding 260,624 164,514 188,040 177,601 175,326 \n Premises and equipment, net 29,903 29,449 30,287 30,700 31,748 \n Investments in bank-owned life insurance 52,670 52,195 51,700 51,224 50,767 \n Goodwill and other intangible assets 19,599 19,892 20,200 20,493 20,786 \n Accounts and drafts receivable from customers 4,950 69,425 49,798 60,276 40,465 \n Other assets 61,490 59,889 63,313 55,310 60,536 \n Assets of discontinued operations — — — — 14,057 \n Total assets $ 2,533,791 $ 2,606,024 $ 2,453,622 $ 2,316,018 $ 2,318,457 \n \n Liabilities and shareholders’ equity: \n Deposits \n Non-interest bearing $ 406,113 $ 513,434 $ 407,169 $ 370,606 $ 363,798 \n Interest-bearing 699,570 686,599 627,491 633,189 636,277 \n Total deposits $ 1,105,683 $ 1,200,033 $ 1,034,660 $ 1,003,795 $ 1,000,075 \n Accounts and drafts payable 1,000,154 1,124,858 1,130,371 1,036,795 1,016,324 \n Short-term borrowings 145,000 — — — — \n Other liabilities 41,162 38,135 45,142 34,606 48,823 \n Liabilities of discontinued operations — — — — 18,988 \n Total liabilities $ 2,291,999 $ 2,363,026 $ 2,210,173 $ 2,075,196 $ 2,084,210 \n \n Shareholders’ equity: \n Common stock $ 7,753 $ 7,753 $ 7,753 $ 7,753 $ 7,753 \n Additional paid-in capital 206,807 207,052 205,925 204,842 203,755 \n Retained earnings 171,797 167,092 163,038 158,005 153,278 \n Common shares in treasury, at cost (114,366 ) (112,148 ) (103,835 ) (97,103 ) (91,025 ) \n Accumulated other comprehensive loss (30,199 ) (26,751 ) (29,432 ) (32,675 ) (39,514 ) \n Total shareholders’ equity $ 241,792 $ 242,998 $ 243,449 $ 240,822 $ 234,247 \n Total liabilities and shareholders’ equity $ 2,533,791 $ 2,606,024 $ 2,453,622 $ 2,316,018 $ 2,318,457 \n \n\nConsolidated Financial Summary (unaudited)\n\n($ in thousands)\n\n As of or for Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n LOAN PORTFOLIO \n Commercial & Industrial: \n Franchise $ 233,088 $ 235,718 $ 249,855 $ 260,283 $ 258,539 \n Leases 123,914 119,186 123,601 111,657 124,290 \n Other 220,863 198,194 196,273 211,629 229,514 \n Commercial Real Estate: \n Faith-Based 396,758 397,608 407,074 410,917 403,525 \n Other 114,107 110,511 111,544 122,518 126,006 \n Total loans $ 1,088,730 $ 1,061,217 $ 1,088,347 $ 1,117,004 $ 1,141,874 \n \n AVERAGE BALANCES \n Interest-earning assets $ 2,214,838 $ 2,207,672 $ 2,189,384 $ 2,090,366 $ 2,104,603 \n Loans 1,066,371 1,081,819 1,095,412 1,125,899 1,109,526 \n Investment securities 777,777 755,004 667,271 613,782 554,905 \n Short-term investments 339,667 334,824 382,250 298,875 383,836 \n Payments in advance of funding 176,987 175,009 175,705 176,191 173,590 \n Assets 2,523,860 2,529,068 2,499,914 2,402,508 2,408,406 \n Non-interest bearing deposits 421,702 421,548 406,241 393,054 405,183 \n Interest-bearing deposits 648,261 614,165 610,403 615,921 628,214 \n Accounts and drafts payable 1,172,102 1,214,865 1,209,416 1,122,739 1,072,013 \n Shareholders’ equity $ 244,850 $ 241,525 $ 236,208 $ 231,414 $ 228,615 \n \n YIELDS (tax equivalent) (1) \n Net interest margin 3.95 % 3.93 % 3.87 % 3.78 % 3.75 % \n Interest-earning assets 4.67 % 4.63 % 4.62 % 4.58 % 4.54 % \n Loans 5.81 % 5.69 % 5.66 % 5.64 % 5.61 % \n Investment securities 3.69 % 3.59 % 3.34 % 3.02 % 2.86 % \n Short-term investments 3.38 % 3.65 % 4.01 % 4.03 % 4.11 % \n Total deposits 1.47 % 1.49 % 1.62 % 1.66 % 1.62 % \n Interest-bearing deposits 2.43 % 2.52 % 2.70 % 2.71 % 2.66 % \n \n ASSET QUALITY \n Allowance for credit losses to loans 1.27 % 1.28 % 1.29 % 1.28 % 1.25 % \n Non-performing loans $ 3,139 $ 6,992 $ 7,074 $ 3,380 $ — \n Non-performing loans to total loans 0.29 % 0.66 % 0.65 % 0.30 % — % \n Net loan charge-offs to loans — % — % — % — % — % \n (1)Yields are presented on a tax-equivalent basis assuming a tax rate of 21%. \n \n\nConsolidated Financial Summary (unaudited) (continued)\n\n($ and numbers in thousands, except average full-time equivalent employees)\n\n As of or for Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n SHARE DATA \n Weighted average common shares outstanding 12,875 12,939 13,116 13,269 13,398 \n Weighted average common shares outstanding assuming dilution 13,152 13,219 13,399 13,562 13,653 \n Period end common shares outstanding 12,843 12,871 13,073 13,233 13,351 \n \n CAPITAL \n Common equity tier 1 ratio 14.80 % 15.10 % 15.04 % 14.82 % 14.11 % \n Total risk-based capital ratio 15.63 % 15.95 % 15.90 % 15.67 % 14.94 % \n Leverage ratio 10.05 % 9.91 % 10.17 % 10.62 % 10.39 % \n \n OTHER INFORMATION \n Transportation invoice volume 8,098 8,376 8,884 8,837 8,355 \n Transportation dollar volume $ 9,032,515 $ 9,156,077 $ 9,277,722 $ 9,370,535 $ 8,643,138 \n Facility expense invoice volume 4,038 4,058 4,084 4,141 4,225 \n Facility expense dollar volume $ 6,253,208 $ 5,686,642 $ 6,233,369 $ 5,513,143 $ 5,822,935 \n Average full-time equivalent employees 923 939 958 985 1,002 \n \n\nAssets and Liabilities of Discontinued Operations (unaudited)\n\n($ in thousands)\n\n As of \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Assets: \n Premises and equipment, net $ — $ — $ — $ — $ 3,605 \n Goodwill and other intangible assets, net — — — — 5,102 \n Other assets — — — — 5,350 \n Assets of discontinued operations $ — $ — $ — $ — $ 14,057 \n \n Liabilities: \n Accounts and drafts payable $ — $ — $ — $ — $ 16,465 \n Other liabilities — — — — 2,523 \n Liabilities of discontinued operations $ — $ — $ — $ — $ 18,988 \n \n\nIncome from Discontinued Operations (unaudited)\n\n($ in thousands)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Revenue: \n Processing fees $ — $ — $ — $ 3,807 $ 3,823 \n Financial fees — — — 475 413 \n Other fees 733 794 772 1,454 382 \n Gain on sale of TEM business — — — 3,550 — \n Total revenue $ 733 $ 794 $ 772 $ 9,286 $ 4,618 \n \n Operating expense: \n Salaries and commissions 433 487 536 2,858 2,756 \n Share-based compensation — — — (16 ) 43 \n Other benefits 72 90 183 525 616 \n Total personnel expenses $ 505 $ 577 $ 719 $ 3,367 $ 3,415 \n Occupancy 23 24 23 180 181 \n Equipment — 9 1 49 51 \n Amortization of intangible assets — — — 9 9 \n Other 81 184 170 754 434 \n Total operating expense $ 609 $ 794 $ 913 $ 4,359 $ 4,090 \n Income (loss) from discontinued operations, before income tax expense (benefit) $ 124 $ — $ (141 ) $ 4,927 $ 528 \n Income tax expense (benefit) 31 — (35 ) 1,232 113 \n Net income (loss) from discontinued operations $ 93 $ — $ (106 ) $ 3,695 $ 415 \n \n\nOther Information from Discontinued Operations (unaudited)\n\n($ and numbers in thousands, except average full-time equivalent employees)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Facility expense invoice volume — — — 126 133 \n Facility expense dollar volume $ — $ — $ — $ 244,782 $ 256,844 \n Average full-time equivalent employees 23 26 27 120 135 \n \n\nReconciliation of GAAP to Non-GAAP Financial Information (unaudited)\n        \n\n($ in thousands, except per share data)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations (GAAP) $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Adjustments: \n (Gain) loss on sale of investment securities (5 ) (38 ) (4 ) 3,558 18 \n Bad debt recovery — — — — (2,000 ) \n Restructuring expense — 1,131 — — — \n Tax effect (1) 1 (272 ) 1 (884 ) 493 \n Adjusted net income from continuing operations (Non-GAAP) $ 8,735 $ 9,010 $ 9,209 $ 7,834 $ 7,062 \n Diluted earnings per share from continuing operations (GAAP) $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Adjusted diluted earnings per share from continuing operations (Non-GAAP) $ 0.66 $ 0.68 $ 0.69 $ 0.58 $ 0.52 \n \n\n(1) The tax effect is calculated using the Company’s effective statutory\nrate of 21% plus the state tax effect.\n\n\n\nContact: Cass Investor Relations\nir@cassinfo.com\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX4nkY3g","title":"Cass Information Systems reports First Quarter 2026 Results","author":"Globe Newswire","ticker":"CASS","created":"2026-04-23T12:00:02.978Z","tickers":["CASS"],"exchange":"NASDAQ","article_body":"Reports another quarter of strong EPS growth\n\nContinued net interest margin expansion\n\nStrong expense control\n\nST. LOUIS, April 23, 2026 (GLOBE NEWSWIRE) -- Cass Information Systems, Inc.\n(Nasdaq: CASS) (the Company or Cass) today reported its first quarter 2026\nearnings.\n\nFirst Quarter Financial Highlights\n* Net income and diluted earnings per share of $8.8 million and $0.67,\nrespectively.\n* Adjusted net income and adjusted diluted earnings per share from continuing\noperations of $8.7 million and $0.66, respectively, increases of 23.7% and\n26.9%, respectively, compared to the prior year quarter.\n* Increase in net interest margin to 3.95%, compared to 3.75% in the prior\nyear quarter.\n* Increase in facility dollar volumes of 7.4% compared to the prior year\nquarter.\n* Personnel expense levels flat compared to the prior year quarter as a result\nof ongoing automation and efficiency initiatives.\n* Continued strong asset quality with no loan charge-offs and an allowance for\ncredit losses to loans ratio of 1.27%. In addition, reduced non-performing\nloans by $3.9 million, or 55.1% as compared to December 31, 2025.\n* Repurchased 64,802 shares of Company stock at a weighted average price of\n$44.34.\nMartin Resch, the Company’s President and Chief Executive Officer, noted,\n“The management team is proud of how we have started the year. We continue\nto drive revenue growth while keeping core expenses relatively flat compared\nto prior periods.” Resch added, “Going forward in 2026, we see\nopportunities to grow net interest income driven by rising funding balances\nand the deployment of those funds into loans and investment securities, as\nwell as increasing financial fees from higher demand for advances through\nAmplify and other quick pay solutions. The ability to combine revenue growth\nwith expense control, primarily due to automation and the ongoing\nconsolidation within our Facilities division, offers very compelling earnings\nmomentum for us in coming periods.\"\n\nEarnings for the first quarter of 2026 are summarized as follows:\n\n ($ in thousands, except per share data) Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Net income $ 8,832 $ 8,189 $ 9,106 $ 8,855 $ 8,966 \n Diluted earnings per share from continuing operations $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Diluted earnings per share $ 0.67 $ 0.62 $ 0.68 $ 0.66 $ 0.66 \n Return on average equity 14.63 % 13.45 % 15.29 % 15.35 % 15.91 % \n Return on average assets 1.42 % 1.28 % 1.44 % 1.48 % 1.51 % \n Net interest margin 3.95 % 3.93 % 3.87 % 3.78 % 3.75 % \n \n\n\n\n ($ in thousands, except per share data) Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations (GAAP) $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Net income adjustments ((1)) (4 ) 821 (3 ) 2,674 (1,489 ) \n Adjusted net income from continuing operations (Non-GAAP) ((1)) $ 8,735 $ 9,010 $ 9,209 $ 7,834 $ 7,062 \n Diluted earnings per share from continuing operations (GAAP) $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Adjusted diluted earnings per share from continuing operations (Non-GAAP) ((1)) $ 0.66 $ 0.68 $ 0.69 $ 0.58 $ 0.52 \n ((1)   )Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release. \n \n\nFirst Quarter 2026 Financial Commentary\n\n(All comparisons refer to the first quarter of 2025, except as noted)\n\nTransportation Invoice and Dollar Volumes – Transportation invoice volumes\nof 8.1 million decreased 3.1% as compared to the first quarter of 2025.\nTransportation dollar volumes of $9.0 billion increased 4.5% as compared to\nthe first quarter of 2025. The average dollars per invoice were $1,115 in the\nfirst quarter of 2026, compared to $1,093 in the fourth quarter of 2025 and\n$1,034 in the first quarter of 2025. Invoice volumes remain lower than prior\nperiods primarily due to the ongoing freight recession. Dollars per invoice\nincreased as compared to the first quarter of 2025 due to an increase in\noverall freight rates, as well as the impact of tariffs. A more detailed\nanalysis of Cass Freight Index® changes can be found at www.cassinfo.com.\n\nFacility Expense Invoice and Dollar Volumes – Facility expense invoice\nvolumes of 4.0 million decreased 4.4% as compared to the first quarter of\n2025. Facility expense dollar volumes totaled $6.3 billion, an increase of\n7.4% as compared to the first quarter of 2025. The increase in facility dollar\nvolumes was primarily driven by rising energy prices.\n\nProcessing Fees – Processing fees decreased $741,000, or 4.5% over the same\nperiod in the prior year due to lower transportation and facility transaction\nvolumes.\n\nFinancial Fees – Financial fees, earned on a transactional level basis for\ninvoice payment services when making customer payments, increased $470,000, or\n4.7%. The increase in financial fees was primarily due to an increase in\naverage payments in advance of funding of 2.0%. The Company has recently seen\nincreased demand for its quick pay solutions and continues to focus on the\nrollout of its Amplify working capital solution as well as other opportunities\nto increase payments in advance of funding and resulting financial fees in\nfuture quarters.\n\nNet Interest Income – Net interest income increased $1.9 million, or 10.1%.\nThe increase in net interest income was attributable to the net interest\nmargin improving to 3.95% as compared to 3.75% in the same period last year,\nin addition to an increase in average interest-earning assets of $110.2\nmillion, or 5.2%.\n\nThe Company’s net interest margin improvement was driven by increases in the\naverage yield on loans and investment securities of 20 and 83 basis points,\nrespectively, combined with a decrease in the average cost of total deposits\nof 15 basis points, partially offset by a decrease in the yield on short-term\ninvestments of 73 basis points. The increase in loan yield was driven by the\ncontinued maturity and subsequent re-pricing of fixed rate loans originated in\nthe years 2021 and 2022 to current market interest rates as well as the payoff\nof a non-performing loan which increased the loan yield by seven basis points.\nThe increase in the investment securities yield was driven by the partial\nrepositioning of the portfolio at the end of the second quarter of 2025 as\nwell as purchases of investments at current market rates. The decline in the\ncost of total deposits and yield on short-term investments was driven by the\nreduction in the federal funds rate.\n\nThe Company would expect continued expansion in its net interest margin in\nfuture quarters to the extent 3-5 year U.S. Treasury interest rates stay\nrelatively consistent or increase as compared to current levels.\n\nProvision for Credit Losses - The Company recorded a provision for credit\nlosses of $61,000 during the first quarter of 2026 as compared to $905,000 in\nthe first quarter of 2025. The provision for credit losses for the first\nquarter of 2026 was largely driven by loan growth.\n\nPersonnel Expenses - Personnel expenses were flat as compared to the first\nquarter of 2025. Salaries and commissions decreased $395,000, or 2.0%, as a\nresult of the decrease in average full-time equivalent employees (“FTEs”)\nof 7.9% due to automation and the ongoing consolidation within our Facilities\ndivision, partially offset by merit increases. Share-based compensation and\nemployee profit sharing increased $198,000 and $132,000, respectively, due to\nthe improvement in net income from continuing operations. Other benefits\nincreased $65,000, or 1.3%, due to higher health insurance costs, partially\noffset by the decrease in average FTEs.\n\nThe Company continues to expect a gradual decline in its FTEs in future\nquarters as a result of the continued focus on AI-enabled systems and other\noperational efficiency opportunities.\n\nEquipment Expense - Equipment expense increased $138,000 as compared to the\nfirst quarter of 2025 primarily due to an increase in depreciation and\nlicensing and maintenance expense on software related to recently completed\ntechnology initiatives.\n\nOther Expense - Other expense increased $590,000, or 8.5%, as compared to the\nfirst quarter of 2025. The increase is primarily due to higher business\ndevelopment, postage and professional fees.\n\nLoans - When compared to December 31, 2025, loans increased $27.5 million, or\n2.6%. Other commercial and industrial loans increased $22.7 million during the\nfirst quarter of 2026. The Company expects loan growth of 6-8% for full year\n2026.\n\nPayments in Advance of Funding – Average payments in advance of funding\nincreased $3.4 million, or 2.0%, as compared to the first quarter of 2025,\nprimarily due to a 4.5% increase in transportation dollar volumes. The ending\nbalance of payments in advance of funding increased $96.1 million, or 58.4%,\nas compared to December 31, 2025. The increase is due to a recent higher level\nof demand for the Company’s quick pay solutions as well as timing of quarter\nend advances.\n\nDeposits – Average deposits increased $36.6 million, or 3.5%, when compared\nto the first quarter of 2025.\n\nAccounts and Drafts Payable - Average accounts and drafts payable increased\n$100.1 million, or 9.3%, as compared to the first quarter of 2025. The\nincrease in these balances, which are non-interest bearing, are primarily\nreflective of the increase in transportation and facility dollar volumes of\n4.5% and 7.4%, respectively.\n\nShort-term Borrowings - The Company had outstanding borrowings of $145.0\nmillion on its lines of credit at March 31, 2026 primarily in order to fund a\n$96.1 million increase in payments in advance of funding as compared to\nDecember 31, 2025.\n\nShareholders’ Equity - Total shareholders’ equity decreased $1.2 million\nas compared to December 31, 2025 as a result of the repurchase of Company\nstock of $2.9 million, dividends of $4.1 million, and an increase in\naccumulated other comprehensive loss of $3.4 million, partially offset by net\nincome of $8.8 million.\n\nDividend - On April 21, 2026, the Company’s Board of Directors approved a\nquarterly dividend of $0.32 per share with the dividend payable on June 15,\n2026 to shareholders of record on June 5, 2026.\n\nRepurchase of Common Stock - The Company repurchased 64,802 shares of common\nstock during the current quarter. The Company anticipates further repurchases\nin coming quarters with an overall objective of maintaining a leverage ratio\nof approximately 10.00%. Future levels of repurchases will depend on market\nconditions, earnings, balance sheet growth and potential acquisition\nopportunities.\n\nAsset Quality - Non-performing loans totaled $3.1 million at March 31, 2026,\na decrease of $3.9 million as compared to December 31, 2025. The Company\nreceived a full payoff on one of its three non-performing loans during the\nfirst quarter of 2026 and does not believe there is more than nominal loss\nexposure on the remaining two loans based on collateral position.\n\nAbout Cass Information Systems\n\nCass Information Systems, Inc. is a leading provider of integrated information\nand payment management solutions. Cass enables enterprises to achieve\nvisibility, control and efficiency in their supply chains, communications\nnetworks, facilities and other operations. Disbursing over $94 billion\nannually on behalf of clients, and with total assets of $2.5 billion, Cass is\nuniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly\nowned subsidiary, Cass Commercial Bank provides sophisticated financial\nexchange services to the parent organization and its clients. Cass is part of\nthe Russell 2000(®). More information is available at www.cassinfo.com.\n\nOn April 7, 2025, the Company signed an Asset Purchase Agreement providing for\nthe sale of its Telecom Expense Management & Managed Mobility Services\n(“TEM”) business to Asignet USA Inc. The sale closed on June 30, 2025. The\nCompany has applied discontinued operations accounting in accordance with FASB\nAccounting Standards Codification (“ASC”), Topic 205-20, “Presentation\nof Financial Statements – Discontinued Operations,” to the assets and\nliabilities sold related to the Company's TEM Business Unit as of and for the\nperiods ended March 31, 2026, December 31, 2025, September 30, 2025, June 30,\n2025, and March 31, 2025, as applicable. All financial information in this\nearnings release is reported on a continuing operations basis, unless\notherwise noted.\n\nAbout Non-GAAP Financial Measures\n\nCertain of the financial measures and ratios the Company presents, including\n“adjusted net income from continuing operations,” and “adjusted diluted\nearnings per share from continuing operations,” are supplemental measures\nthat are not required by, or are not presented in accordance with, U.S.\ngenerally accepted accounting principles (GAAP). The Company refers to these\nfinancial measures and ratios as “non-GAAP financial measures.” The\nCompany considers the use of select non-GAAP financial measures and ratios to\nbe useful for financial and operational decision making and useful in\nevaluating period-to-period comparisons. The Company believes that these\nnon-GAAP financial measures provide meaningful supplemental information\nregarding its performance by excluding certain revenue and expense items that\nthe Company believes are not indicative of its primary business operating\nresults or by presenting certain metrics on a fully taxable equivalent basis.\nThe Company believes that management and investors benefit from referring to\nthese non-GAAP financial measures in assessing the Company’s performance and\nwhen planning, forecasting, analyzing and comparing past, present and future\nperiods.\n\nThese non-GAAP financial measures should not be considered a substitute for\nfinancial information presented in accordance with GAAP and you should not\nrely on non-GAAP financial measures alone as measures of the Company’s\nperformance. The non-GAAP financial measures the Company presents may differ\nfrom non-GAAP financial measures used by the Company’s peers or other\ncompanies. The Company compensates for these differences by providing the\nequivalent GAAP measures whenever the Company presents the non-GAAP financial\nmeasures and by including a reconciliation of the impact of the components\nadjusted for in the non-GAAP financial measure so that both measures and the\nindividual components may be considered when analyzing the Company’s\nperformance. A reconciliation of non-GAAP financial measures to the comparable\nGAAP financial measures is included at the end of the financial statement\ntables.\n\nForward Looking Information\n\nAll statements other than statements of historical fact included in this\nrelease, including without limitation the Company’s future prospects and\nperformance, the business strategy and the plans and objectives of the\nCompany's management for future operations, are forward-looking statements\nwithin the meaning of the Private Securities Litigation Reform Act of 1995.\nWhen used in this release, words such as “estimate,” “could,”\n“should,” “would,” “likely,” “may,” “will,” “plan,”\n“intend,” “believes,” “expects,” “anticipates,”\n“projected,” and variations of these terms and similar expressions.\nAlthough the Company believes that the expectations reflected in the\nforward-looking statements are reasonable, the Company cannot guarantee future\nresults, levels of activity, performance, or achievements. Actual results or\nbusiness conditions may differ materially from those projected or suggested in\nforward-looking statements as a result of various factors including, but not\nlimited to, those described below and in Part I, Item 1A, “Risk Factors”\nof our most recent Annual Report.\n\nActual results could differ materially from those contemplated by the\nforward-looking statements as a result of certain factors, including but not\nlimited to general economic, market or business conditions unrelated to the\nCompany’s operating performance, including inflation, changes in interest\nrates, changes in energy prices, supply chain disruptions, financial\ninstitution disruptions, geopolitical conflicts, public health emergencies and\ndeclines in consumer confidence and discretionary spending; the Company’s\nability to compete with its competitors and increase market share; the\nCompany’s ability to maintain compliance with rules and regulations\napplicable to our business operations and industry; increased regulatory\nexamination scrutiny or new regulatory requirements; whether the Company’s\ncustomers continue to utilize its payment processing and related services;\nunfavorable developments concerning customer credit quality; risk associated\nwith lending concentrations including, but not limited to, faith-based\nministries and franchise restaurants; liquidity risk; and risks associated\nwith cyber-attacks and data breaches.\n\nReaders are cautioned not to place undue reliance on these forward-looking\nstatements. Any forward-looking statement made by the Company in this release\nspeaks only as of the date of this release. Unless required by law, the\nCompany does not undertake to release publicly any revisions to these\nforward-looking statements to reflect future events or circumstances or to\nreflect the occurrence of unanticipated events. If the Company updates one or\nmore forward-looking statements, no inference should be drawn that the Company\nwill make additional updates with respect to those or other forward-looking\nstatements.\n\nConsolidated Statements of Income (unaudited)\n\n($ and numbers in thousands, except per share data)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Processing fees $ 15,728 $ 16,304 $ 16,655 $ 16,700 $ 16,469 \n Financial fees 10,431 9,860 10,416 10,161 9,961 \n Total fee revenue $ 26,159 $ 26,164 $ 27,071 $ 26,861 $ 26,430 \n \n Interest and fees on loans 15,277 15,521 15,632 15,837 15,350 \n Interest and dividends on investment securities 6,995 6,767 5,679 4,799 4,147 \n Interest on short-term investments 2,832 3,078 3,860 3,003 3,893 \n Total interest income $ 25,104 $ 25,366 $ 25,171 $ 23,639 $ 23,390 \n Interest expense 3,888 3,895 4,151 4,164 4,116 \n Net interest income $ 21,216 $ 21,471 $ 21,020 $ 19,475 $ 19,274 \n (Provision for) release of credit losses (61 ) 389 193 (25 ) (905 ) \n Gain (loss) on sale of investment securities 5 38 4 (3,558 ) (18 ) \n Other 1,782 1,827 1,768 1,645 1,626 \n Total revenues $ 49,101 $ 49,889 $ 50,056 $ 44,398 $ 46,407 \n Salaries and commissions 19,268 20,304 20,105 20,638 19,663 \n Share-based compensation 1,439 1,009 1,018 918 1,241 \n Employee profit sharing 1,634 1,514 1,685 1,583 1,502 \n Other benefits 4,938 4,602 4,798 4,613 4,873 \n Total personnel expenses $ 27,279 $ 27,429 $ 27,606 $ 27,752 $ 27,279 \n Occupancy 681 643 734 669 721 \n Equipment 2,432 2,548 2,513 2,562 2,294 \n Amortization of intangible assets 293 293 293 293 293 \n Bad debt recovery — — — — (2,000 ) \n Other 7,533 8,988 7,295 6,843 6,943 \n Total operating expenses $ 38,218 $ 39,901 $ 38,441 $ 38,119 $ 35,530 \n Income from continuing operations, before income tax expense $ 10,883 $ 9,988 $ 11,615 $ 6,279 $ 10,877 \n Income tax expense 2,144 1,799 2,403 1,119 2,326 \n Net income from continuing operations $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Income (loss) from discontinued operations, net of tax 93 — (106 ) 3,695 415 \n Net income $ 8,832 $ 8,189 $ 9,106 $ 8,855 $ 8,966 \n \n Basic earnings per share from continuing operations $ .68 $ .63 $ .70 $ .39 $ .64 \n Basic earnings (loss) per share from discontinued operations .01 — (.01) .28 .03 \n Basic earnings per share $ .69 $ .63 $ .69 $ .67 $ .67 \n \n Diluted earnings per share from continuing operations $ .66 $ .62 $ .69 $ .38 $ .63 \n Diluted earnings (loss) per share from discontinued operations .01 — (.01) .28 .03 \n Diluted earnings per share $ .67 $ .62 $ .68 $ .66 $ .66 \n \n\nConsolidated Balance Sheets (unaudited)\n\n($ in thousands)\n\n As of \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Assets: \n Cash and cash equivalents $ 244,343 $ 392,268 $ 258,634 $ 218,165 $ 220,674 \n Investment securities available-for-sale, at fair value 785,343 770,772 717,369 599,541 576,510 \n Loans 1,088,730 1,061,217 1,088,347 1,117,004 1,141,874 \n Less: Allowance for credit losses (13,861 ) (13,597 ) (14,066 ) (14,296 ) (14,286 ) \n Loans, net $ 1,074,869 $ 1,047,620 $ 1,074,281 $ 1,102,708 $ 1,127,588 \n Payments in advance of funding 260,624 164,514 188,040 177,601 175,326 \n Premises and equipment, net 29,903 29,449 30,287 30,700 31,748 \n Investments in bank-owned life insurance 52,670 52,195 51,700 51,224 50,767 \n Goodwill and other intangible assets 19,599 19,892 20,200 20,493 20,786 \n Accounts and drafts receivable from customers 4,950 69,425 49,798 60,276 40,465 \n Other assets 61,490 59,889 63,313 55,310 60,536 \n Assets of discontinued operations — — — — 14,057 \n Total assets $ 2,533,791 $ 2,606,024 $ 2,453,622 $ 2,316,018 $ 2,318,457 \n \n Liabilities and shareholders’ equity: \n Deposits \n Non-interest bearing $ 406,113 $ 513,434 $ 407,169 $ 370,606 $ 363,798 \n Interest-bearing 699,570 686,599 627,491 633,189 636,277 \n Total deposits $ 1,105,683 $ 1,200,033 $ 1,034,660 $ 1,003,795 $ 1,000,075 \n Accounts and drafts payable 1,000,154 1,124,858 1,130,371 1,036,795 1,016,324 \n Short-term borrowings 145,000 — — — — \n Other liabilities 41,162 38,135 45,142 34,606 48,823 \n Liabilities of discontinued operations — — — — 18,988 \n Total liabilities $ 2,291,999 $ 2,363,026 $ 2,210,173 $ 2,075,196 $ 2,084,210 \n \n Shareholders’ equity: \n Common stock $ 7,753 $ 7,753 $ 7,753 $ 7,753 $ 7,753 \n Additional paid-in capital 206,807 207,052 205,925 204,842 203,755 \n Retained earnings 171,797 167,092 163,038 158,005 153,278 \n Common shares in treasury, at cost (114,366 ) (112,148 ) (103,835 ) (97,103 ) (91,025 ) \n Accumulated other comprehensive loss (30,199 ) (26,751 ) (29,432 ) (32,675 ) (39,514 ) \n Total shareholders’ equity $ 241,792 $ 242,998 $ 243,449 $ 240,822 $ 234,247 \n Total liabilities and shareholders’ equity $ 2,533,791 $ 2,606,024 $ 2,453,622 $ 2,316,018 $ 2,318,457 \n \n\nConsolidated Financial Summary (unaudited)\n\n($ in thousands)\n\n As of or for Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n LOAN PORTFOLIO \n Commercial & Industrial: \n Franchise $ 233,088 $ 235,718 $ 249,855 $ 260,283 $ 258,539 \n Leases 123,914 119,186 123,601 111,657 124,290 \n Other 220,863 198,194 196,273 211,629 229,514 \n Commercial Real Estate: \n Faith-Based 396,758 397,608 407,074 410,917 403,525 \n Other 114,107 110,511 111,544 122,518 126,006 \n Total loans $ 1,088,730 $ 1,061,217 $ 1,088,347 $ 1,117,004 $ 1,141,874 \n \n AVERAGE BALANCES \n Interest-earning assets $ 2,214,838 $ 2,207,672 $ 2,189,384 $ 2,090,366 $ 2,104,603 \n Loans 1,066,371 1,081,819 1,095,412 1,125,899 1,109,526 \n Investment securities 777,777 755,004 667,271 613,782 554,905 \n Short-term investments 339,667 334,824 382,250 298,875 383,836 \n Payments in advance of funding 176,987 175,009 175,705 176,191 173,590 \n Assets 2,523,860 2,529,068 2,499,914 2,402,508 2,408,406 \n Non-interest bearing deposits 421,702 421,548 406,241 393,054 405,183 \n Interest-bearing deposits 648,261 614,165 610,403 615,921 628,214 \n Accounts and drafts payable 1,172,102 1,214,865 1,209,416 1,122,739 1,072,013 \n Shareholders’ equity $ 244,850 $ 241,525 $ 236,208 $ 231,414 $ 228,615 \n \n YIELDS (tax equivalent) (1) \n Net interest margin 3.95 % 3.93 % 3.87 % 3.78 % 3.75 % \n Interest-earning assets 4.67 % 4.63 % 4.62 % 4.58 % 4.54 % \n Loans 5.81 % 5.69 % 5.66 % 5.64 % 5.61 % \n Investment securities 3.69 % 3.59 % 3.34 % 3.02 % 2.86 % \n Short-term investments 3.38 % 3.65 % 4.01 % 4.03 % 4.11 % \n Total deposits 1.47 % 1.49 % 1.62 % 1.66 % 1.62 % \n Interest-bearing deposits 2.43 % 2.52 % 2.70 % 2.71 % 2.66 % \n \n ASSET QUALITY \n Allowance for credit losses to loans 1.27 % 1.28 % 1.29 % 1.28 % 1.25 % \n Non-performing loans $ 3,139 $ 6,992 $ 7,074 $ 3,380 $ — \n Non-performing loans to total loans 0.29 % 0.66 % 0.65 % 0.30 % — % \n Net loan charge-offs to loans — % — % — % — % — % \n (1)Yields are presented on a tax-equivalent basis assuming a tax rate of 21%. \n \n\nConsolidated Financial Summary (unaudited) (continued)\n\n($ and numbers in thousands, except average full-time equivalent employees)\n\n As of or for Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n SHARE DATA \n Weighted average common shares outstanding 12,875 12,939 13,116 13,269 13,398 \n Weighted average common shares outstanding assuming dilution 13,152 13,219 13,399 13,562 13,653 \n Period end common shares outstanding 12,843 12,871 13,073 13,233 13,351 \n \n CAPITAL \n Common equity tier 1 ratio 14.80 % 15.10 % 15.04 % 14.82 % 14.11 % \n Total risk-based capital ratio 15.63 % 15.95 % 15.90 % 15.67 % 14.94 % \n Leverage ratio 10.05 % 9.91 % 10.17 % 10.62 % 10.39 % \n \n OTHER INFORMATION \n Transportation invoice volume 8,098 8,376 8,884 8,837 8,355 \n Transportation dollar volume $ 9,032,515 $ 9,156,077 $ 9,277,722 $ 9,370,535 $ 8,643,138 \n Facility expense invoice volume 4,038 4,058 4,084 4,141 4,225 \n Facility expense dollar volume $ 6,253,208 $ 5,686,642 $ 6,233,369 $ 5,513,143 $ 5,822,935 \n Average full-time equivalent employees 923 939 958 985 1,002 \n \n\nAssets and Liabilities of Discontinued Operations (unaudited)\n\n($ in thousands)\n\n As of \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Assets: \n Premises and equipment, net $ — $ — $ — $ — $ 3,605 \n Goodwill and other intangible assets, net — — — — 5,102 \n Other assets — — — — 5,350 \n Assets of discontinued operations $ — $ — $ — $ — $ 14,057 \n \n Liabilities: \n Accounts and drafts payable $ — $ — $ — $ — $ 16,465 \n Other liabilities — — — — 2,523 \n Liabilities of discontinued operations $ — $ — $ — $ — $ 18,988 \n \n\nIncome from Discontinued Operations (unaudited)\n\n($ in thousands)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Revenue: \n Processing fees $ — $ — $ — $ 3,807 $ 3,823 \n Financial fees — — — 475 413 \n Other fees 733 794 772 1,454 382 \n Gain on sale of TEM business — — — 3,550 — \n Total revenue $ 733 $ 794 $ 772 $ 9,286 $ 4,618 \n \n Operating expense: \n Salaries and commissions 433 487 536 2,858 2,756 \n Share-based compensation — — — (16 ) 43 \n Other benefits 72 90 183 525 616 \n Total personnel expenses $ 505 $ 577 $ 719 $ 3,367 $ 3,415 \n Occupancy 23 24 23 180 181 \n Equipment — 9 1 49 51 \n Amortization of intangible assets — — — 9 9 \n Other 81 184 170 754 434 \n Total operating expense $ 609 $ 794 $ 913 $ 4,359 $ 4,090 \n Income (loss) from discontinued operations, before income tax expense (benefit) $ 124 $ — $ (141 ) $ 4,927 $ 528 \n Income tax expense (benefit) 31 — (35 ) 1,232 113 \n Net income (loss) from discontinued operations $ 93 $ — $ (106 ) $ 3,695 $ 415 \n \n\nOther Information from Discontinued Operations (unaudited)\n\n($ and numbers in thousands, except average full-time equivalent employees)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Facility expense invoice volume — — — 126 133 \n Facility expense dollar volume $ — $ — $ — $ 244,782 $ 256,844 \n Average full-time equivalent employees 23 26 27 120 135 \n \n\nReconciliation of GAAP to Non-GAAP Financial Information (unaudited)\n        \n\n($ in thousands, except per share data)\n\n Three Months Ended \n 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 \n Net income from continuing operations (GAAP) $ 8,739 $ 8,189 $ 9,212 $ 5,160 $ 8,551 \n Adjustments: \n (Gain) loss on sale of investment securities (5 ) (38 ) (4 ) 3,558 18 \n Bad debt recovery — — — — (2,000 ) \n Restructuring expense — 1,131 — — — \n Tax effect (1) 1 (272 ) 1 (884 ) 493 \n Adjusted net income from continuing operations (Non-GAAP) $ 8,735 $ 9,010 $ 9,209 $ 7,834 $ 7,062 \n Diluted earnings per share from continuing operations (GAAP) $ 0.66 $ 0.62 $ 0.69 $ 0.38 $ 0.63 \n Adjusted diluted earnings per share from continuing operations (Non-GAAP) $ 0.66 $ 0.68 $ 0.69 $ 0.58 $ 0.52 \n \n\n(1) The tax effect is calculated using the Company’s effective statutory\nrate of 21% plus the state tax effect.\n\n\n\nContact: Cass Investor Relations\nir@cassinfo.com\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-04-23T12:00:03.054603091Z","server_sent_at_ms":1776945603054},"received_at":"2026-04-23T12:00:03.110Z","source_url":null},"analysis":{"id":"4742","press_release_id":"6487","analysis_json":{"industry":{"label":"Software & Services","sector":"Information Technology"},"redFlags":[],"eventType":"earnings","narrative":"Cass Information Systems reported Q1 2026 net income of $8.8 million, with adjusted diluted EPS growing 26.9% year-over-year to $0.66.\n\nNet interest margin expanded to 3.95% and facility dollar volumes grew 7.4%, while personnel expenses remained flat due to automation initiatives.\n\nThe company repurchased 64,802 shares at an average price of $44.34 and declared a quarterly dividend of $0.32 per share.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":"Consistent operational efficiency drives EPS growth; bank subsidiary benefits from net interest margin expansion."},"keyFigures":{"eps":0.67,"guidance":"loan growth of 6-8% for full year 2026","customDimensions":{"adjusted_eps":0.66,"dividend_per_share":0.32,"shares_repurchased":64802,"net_interest_margin":"3.95%","share_repurchase_price":44.34,"adjusted_eps_growth_yoy":"26.9%"}},"quotedText":"We continue to drive revenue growth while keeping core expenses relatively flat compared to prior periods.","namedEntities":{"people":[{"name":"Martin Resch","role":"President and Chief Executive Officer"}],"products":["Amplify","Cass Freight Index®"],"companies":[{"name":"Cass Information Systems, Inc.","ticker":"CASS"},{"name":"Cass Commercial Bank","relationship":"wholly-owned subsidiary"},{"name":"Asignet USA Inc.","relationship":"acquirer of discontinued TEM business"}],"dollarAmounts":[{"amount":"$8.8 million","context":"Net income"},{"amount":"$0.67","context":"Diluted earnings per share"},{"amount":"$8.7 million","context":"Adjusted net income"},{"amount":"$0.66","context":"Adjusted diluted earnings per share"},{"amount":"$44.34","context":"weighted average price of share repurchases"},{"amount":"$9.0 billion","context":"Transportation dollar volumes"},{"amount":"$6.3 billion","context":"Facility expense dollar volumes"},{"amount":"$61,000","context":"Provision for credit losses"},{"amount":"$27.5 million","context":"Increase in loans compared to December 31, 2025"},{"amount":"$96.1 million","context":"Increase in payments in advance of funding compared to December 31, 2025"},{"amount":"$145.0 million","context":"outstanding borrowings on lines of credit"},{"amount":"$0.32","context":"quarterly dividend per share"}]},"materialImpact":{"score":3,"reasoning":"Strong quarter with 26.9% adjusted EPS growth and net interest margin expansion, supported by buybacks and expense control. However, no consensus data is provided to verify a surprise magnitude >10%, limiting the score to a solid but not extreme 3."},"tickerRelevance":{"others":[],"primary":"CASS"},"eventTypeSecondary":["buyback","dividend"]},"event_type":"earnings","event_type_secondary":["buyback","dividend"],"sentiment":"bullish","material_impact_score":3,"narrative":"Cass Information Systems reported Q1 2026 net income of $8.8 million, with adjusted diluted EPS growing 26.9% year-over-year to $0.66.\n\nNet interest margin expanded to 3.95% and facility dollar volumes grew 7.4%, while personnel expenses remained flat due to automation initiatives.\n\nThe company repurchased 64,802 shares at an average price of $44.34 and declared a quarterly dividend of $0.32 per share.","key_figures":{"eps":0.67,"guidance":"loan growth of 6-8% for full year 2026","customDimensions":{"adjusted_eps":0.66,"dividend_per_share":0.32,"shares_repurchased":64802,"net_interest_margin":"3.95%","share_repurchase_price":44.34,"adjusted_eps_growth_yoy":"26.9%"}},"named_entities":{"people":[{"name":"Martin Resch","role":"President and Chief Executive Officer"}],"products":["Amplify","Cass Freight Index®"],"companies":[{"name":"Cass Information Systems, Inc.","ticker":"CASS"},{"name":"Cass Commercial Bank","relationship":"wholly-owned subsidiary"},{"name":"Asignet USA Inc.","relationship":"acquirer of discontinued TEM business"}],"dollarAmounts":[{"amount":"$8.8 million","context":"Net income"},{"amount":"$0.67","context":"Diluted earnings per share"},{"amount":"$8.7 million","context":"Adjusted net income"},{"amount":"$0.66","context":"Adjusted diluted earnings per share"},{"amount":"$44.34","context":"weighted average price of share repurchases"},{"amount":"$9.0 billion","context":"Transportation dollar volumes"},{"amount":"$6.3 billion","context":"Facility expense dollar volumes"},{"amount":"$61,000","context":"Provision for credit losses"},{"amount":"$27.5 million","context":"Increase in loans compared to December 31, 2025"},{"amount":"$96.1 million","context":"Increase in payments in advance of funding compared to December 31, 2025"},{"amount":"$145.0 million","context":"outstanding borrowings on lines of credit"},{"amount":"$0.32","context":"quarterly dividend per share"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-23T15:36:56.339Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:54.736Z"}},"durationMs":32067,"modelName":"glm-4.7"}}