Cass Information Systems Announces Quarterly Net Income and Revenue Growth of 21.9% and 15.1%, Respectively
Cass Information Systems reported a strong second quarter of 2022, with diluted earnings per share rising 29.2% to $.62 and net income increasing 21.9% to $8.6 million. Total transportation dollar volumes reached a record $11.4 billion, marking a 27.7% rise, driven by inflation and supply chain factors. Financial fee income surged 41.6%, while net interest income rose 26.2%. Despite a slight increase in operating expenses by 12.9%, credit quality remains solid with no charge-offs. The company maintains significant liquidity and a healthy capital ratio.
- Earnings per share rose 29.2% to $.62.
- Net income increased 21.9% to $8.6 million.
- Record transportation dollar volumes of $11.4 billion, a 27.7% increase.
- Financial fee income increased by $3.1 million, or 41.6%.
- Net interest income rose by $2.8 million, or 26.2%.
- Average loans increased by $174.4 million, or 21.8%.
- Strong credit quality with no charge-offs or non-performing loans.
- Average deposits rose by $212.9 million, or 20.9%.
- Operating expenses rose $3.8 million, or 12.9%.
- Provision for credit losses increased to $70,000 from a release of $610,000 in the prior year.
- Total shareholders' equity declined by $40.2 million due to accumulated losses from rising interest rates.
Second Quarter Results
(All comparisons refer to the second quarter of 2021, except as noted)
- Earned record quarterly net income and diluted earnings per share.
-
Increase in diluted earnings per share of
29.2% , to$.62 from$.48 . -
Increase in net income of
21.9% , to from$8.6 million .$7.0 million -
Increase in return on average equity to
16.53% from10.83% . -
Processed record quarterly transportation dollar volumes of
, a$11.4 billion 27.7% increase. -
Increase in financial fees of
, or$3.1 million 41.6% . -
Increase in average payments in advance of funding of
, or$95.3 million 48.2% . -
Increase in average loans, excluding PPP loans, of
, or$174.4 million 21.8% . - Maintained exceptional credit quality.
Second Quarter 2022 Highlights
Financial Fees – Financial fee income, earned on a transactional level basis for invoice payment services when making customer payments, increased
Net Interest Income – Net interest income increased
Provision for Credit Losses - The provision for credit losses was
Operating Expenses - Consolidated operating expenses rose
Loans - Average loans increased
Payments in Advance of Funding – Average payments in advance of funding increased
Deposits – Average deposits increased
Accounts and Drafts Payable - Average accounts and drafts payable increased
Transportation Dollar Volumes – Transportation dollar volumes hit a record level of
Facility Expense Dollar Volumes – Facility dollar volumes totaled
Liquidity - The Company continues to maintain significant liquidity, with average short-term investments of
Capital - The Company’s common equity tier 1, total risk-based capital and leverage ratios were
About
Note to Investors
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include the impact of the COVID-19 pandemic as well as economic and market conditions, inflationary pressures, risks of credit deterioration, interest rate changes, governmental actions, market volatility, security breaches and technology interruptions, energy prices and competitive factors, among others, as set forth in the Company’s most recent Annual Report on Form 10-K and subsequent reports filed with the
Consolidated Statements of Income (unaudited) |
||||||||||||||||||
($ and numbers in thousands, except per share data) |
||||||||||||||||||
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Six-Months
|
|
Six-Months
|
|||||||||
Processing fees |
$ |
19,326 |
|
|
$ |
19,036 |
|
|
$ |
19,048 |
|
$ |
38,362 |
|
|
$ |
37,423 |
|
Financial fees |
|
10,623 |
|
|
|
10,532 |
|
|
|
7,500 |
|
|
21,155 |
|
|
|
14,497 |
|
Net interest income |
|
13,641 |
|
|
|
11,903 |
|
|
|
10,811 |
|
|
25,544 |
|
|
|
21,156 |
|
(Provision for) release of credit losses |
|
(70 |
) |
|
|
(230 |
) |
|
|
610 |
|
|
(300 |
) |
|
|
1,210 |
|
Other |
|
702 |
|
|
|
862 |
|
|
|
439 |
|
|
1,564 |
|
|
|
1,242 |
|
Total revenues |
$ |
44,222 |
|
|
$ |
42,103 |
|
|
$ |
38,408 |
|
$ |
86,325 |
|
|
$ |
75,528 |
|
Personnel |
$ |
26,033 |
|
|
$ |
24,718 |
|
|
$ |
22,880 |
|
$ |
50,751 |
|
|
$ |
45,406 |
|
Occupancy |
|
916 |
|
|
|
915 |
|
|
|
959 |
|
|
1,831 |
|
|
|
1,906 |
|
Equipment |
|
1,660 |
|
|
|
1,711 |
|
|
|
1,653 |
|
|
3,371 |
|
|
|
3,328 |
|
Other |
|
5,030 |
|
|
|
4,484 |
|
|
|
4,311 |
|
|
9,514 |
|
|
|
7,688 |
|
Total operating expenses |
$ |
33,639 |
|
|
$ |
31,828 |
|
|
$ |
29,803 |
|
$ |
65,467 |
|
|
$ |
58,328 |
|
Income from operations before income taxes |
$ |
10,583 |
|
|
$ |
10,275 |
|
|
$ |
8,605 |
|
$ |
20,858 |
|
|
$ |
17,200 |
|
Income tax expense |
|
2,021 |
|
|
|
2,017 |
|
|
|
1,579 |
|
|
4,038 |
|
|
|
3,103 |
|
Net income |
$ |
8,562 |
|
|
$ |
8,258 |
|
|
$ |
7,026 |
|
$ |
16,820 |
|
|
$ |
14,097 |
|
Basic earnings per share |
$ |
.63 |
|
|
$ |
.61 |
|
|
$ |
.49 |
|
$ |
1.24 |
|
|
$ |
.99 |
|
Diluted earnings per share |
$ |
.62 |
|
|
$ |
.60 |
|
|
$ |
.48 |
|
$ |
1.22 |
|
|
$ |
.97 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share data: |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding |
|
13,543 |
|
|
|
13,578 |
|
|
|
14,267 |
|
|
13,560 |
|
|
|
14,286 |
|
Weighted-average common shares outstanding assuming dilution |
|
13,802 |
|
|
|
13,814 |
|
|
|
14,510 |
|
|
13,808 |
|
|
|
14,526 |
Consolidated Balance Sheets |
|||||||||||||
($ in thousands) |
|||||||||||||
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|||||||
Assets: |
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
$ |
261,234 |
|
|
$ |
191,449 |
|
|
$ |
514,928 |
|
|
|
Investment securities |
|
740,074 |
|
|
|
774,610 |
|
|
|
673,453 |
|
|
|
Loans, excluding PPP loans |
|
958,491 |
|
|
|
975,829 |
|
|
|
954,268 |
|
|
|
PPP loans |
|
996 |
|
|
|
1,373 |
|
|
|
6,299 |
|
|
|
Allowance for credit losses |
|
(12,573 |
) |
|
|
(12,406 |
) |
|
|
(12,041 |
) |
|
|
Payments in advance of funding |
|
313,172 |
|
|
|
329,622 |
|
|
|
291,427 |
|
|
|
Premises and equipment, net |
|
19,470 |
|
|
|
19,086 |
|
|
|
18,113 |
|
|
|
Investments in bank-owned life insurance |
|
47,435 |
|
|
|
47,163 |
|
|
|
43,176 |
|
|
|
|
|
21,825 |
|
|
|
16,691 |
|
|
|
16,826 |
|
|
|
Other assets |
|
93,864 |
|
|
|
78,626 |
|
|
|
48,452 |
|
|
|
Total assets |
$ |
2,443,988 |
|
|
$ |
2,422,043 |
|
|
$ |
2,554,901 |
|
|
|
|
|
|
|
|
|
|
|||||||
Liabilities and shareholders’ equity: |
|
|
|
|
|
|
|||||||
Deposits |
|
|
|
|
|
|
|||||||
Non-interest bearing |
$ |
604,492 |
|
|
$ |
621,819 |
|
|
$ |
582,642 |
|
|
|
Interest bearing |
|
585,083 |
|
|
|
555,116 |
|
|
|
638,861 |
|
|
|
Total deposits |
|
1,189,575 |
|
|
|
1,176,935 |
|
|
|
1,221,503 |
|
|
|
Accounts and drafts payable |
|
998,870 |
|
|
|
989,733 |
|
|
|
1,050,396 |
|
|
|
Other liabilities |
|
49,929 |
|
|
|
38,297 |
|
|
|
37,204 |
|
|
|
Total liabilities |
$ |
2,238,374 |
|
|
$ |
2,204,965 |
|
|
$ |
2,309,103 |
|
|
|
|
|
|
|
|
|
|
|||||||
Shareholders’ equity: |
|
|
|
|
|
|
|||||||
Common stock |
$ |
7,753 |
|
|
$ |
7,753 |
|
|
$ |
7,753 |
|
|
|
Additional paid-in capital |
|
204,482 |
|
|
|
203,149 |
|
|
|
204,276 |
|
|
|
Retained earnings |
|
121,386 |
|
|
|
116,646 |
|
|
|
112,220 |
|
|
|
Common shares in treasury, at cost |
|
(81,742 |
) |
|
|
(82,348 |
) |
|
|
(78,904 |
) |
|
|
Accumulated other comprehensive (loss) income |
|
(46,265 |
) |
|
|
(28,122 |
) |
|
|
453 |
|
|
|
Total shareholders’ equity |
$ |
205,614 |
|
|
$ |
217,078 |
|
|
$ |
245,798 |
|
|
|
Total liabilities and shareholders’ equity |
$ |
2,443,988 |
|
|
$ |
2,422,043 |
|
|
$ |
2,554,901 |
|
|
Average Balances (unaudited) |
|||||||||||||||
($ in thousands) |
|||||||||||||||
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Six-Months
|
|
Six-Months
|
||||||
Average interest-earning assets |
$ |
2,222,655 |
|
$ |
2,122,915 |
|
$ |
1,968,646 |
|
$ |
2,173,060 |
|
$ |
1,930,235 |
|
Average loans, excluding PPP loans |
|
972,756 |
|
|
956,913 |
|
|
798,329 |
|
|
964,879 |
|
|
783,181 |
|
Average PPP loans |
|
1,115 |
|
|
2,938 |
|
|
103,290 |
|
|
2,021 |
|
|
108,296 |
|
Average payments in advance of funding |
|
293,150 |
|
|
279,479 |
|
|
197,855 |
|
|
286,352 |
|
|
187,632 |
|
Average assets |
|
2,616,220 |
|
|
2,528,263 |
|
|
2,278,402 |
|
|
2,572,485 |
|
|
2,231,744 |
|
Average deposits |
|
1,229,744 |
|
|
1,167,121 |
|
|
1,016,806 |
|
|
1,198,606 |
|
|
993,950 |
|
Average accounts and drafts payable |
|
1,135,504 |
|
|
1,088,105 |
|
|
947,987 |
|
|
1,111,935 |
|
|
923,320 |
|
Average shareholders’ equity |
$ |
207,828 |
|
$ |
235,720 |
|
$ |
260,117 |
|
$ |
221,697 |
|
$ |
259,410 |
Consolidated Financial Highlights (unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
($ and numbers in thousands, except ratios) |
||||||||||||||||||||
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Six-Months
|
|
Six-Months
|
|||||||||||
Return on average equity |
|
16.53 |
% |
|
|
14.21 |
% |
|
|
10.83 |
% |
|
|
15.30 |
% |
|
|
10.96 |
% |
|
Net interest margin |
|
2.54 |
% |
|
|
2.36 |
% |
|
|
2.30 |
% |
|
|
2.45 |
% |
|
|
2.31 |
% |
|
Allowance for credit losses to loans |
|
1.31 |
% |
|
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.28 |
% |
|
Non-performing loans to total loans |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
Net loan charge-offs (recoveries) to loans |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Transportation invoice volume |
|
9,289 |
|
|
|
8,958 |
|
|
|
9,461 |
|
|
|
18,247 |
|
|
|
18,248 |
|
|
Transportation dollar volume |
$ |
11,413,414 |
|
|
$ |
10,855,180 |
|
|
$ |
8,940,889 |
|
|
$ |
22,268,594 |
|
|
$ |
16,845,528 |
|
|
Facility expense transaction volume |
|
6,557 |
|
|
|
6,641 |
|
|
|
6,827 |
|
|
|
13,198 |
|
|
|
13,823 |
|
|
Facility expense dollar volume |
$ |
4,570,178 |
|
|
$ |
4,643,942 |
|
|
$ |
3,657,965 |
|
|
$ |
9,214,120 |
|
|
$ |
7,375,393 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220714005138/en/
(314) 721-2828
kentringer@caseycomm.com
Source:
FAQ
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