Net investment income increased $.6 million, or 6%, primarily due to an increase in average earning assets.
Operating expenses were up 11%, or $1.8 million, as Cass increased staff to support the growth in business volume.
Nine-Month 2011 Recap
For the nine-month period ended September 30, 2011, the company earned $1.85 per diluted share, a 15% increase over the $1.61 per diluted share earned in the comparable period of 2010. Net income grew to $17.5 million, 15% higher than the $15.2 million earned in 2010. Revenues rose more than 12%, from $71.2 million in 2010 to $80.0 million in 2011.
Operating expenses were up 11%, or $5.5 million, as Cass increased personnel to support volume growth.
“As our record results attest, Cass Information Systems continues its steady growth despite the faltering national economic recovery,” said
Eric H. Brunngraber
, Cass president and chief executive officer. “We believe the company’s performance provides a solid base for continued growth in 2012 and beyond.”
10% Stock Dividend Declared With Increase in Cash Dividend
On October 17, 2011, the company’s board of directors declared a 10% stock dividend payable December 15, 2011 to shareholders of record December 5, 2011.
Shareholders will receive one additional share of Cass stock for each 10 shares owned. No fractional shares will be issued. Shareholders will receive cash for any fractional shares owned based on the share price reported by NASDAQ at the close of trading December 5, 2011.
In addition, the company’s board declared a fourth quarter cash dividend of $.17 per share payable December 15, 2011 to shareholders of record December 5, 2011. That is a one cent increase from the previous dividend per share. The upcoming cash payout will apply to all shares held after the 10% stock dividend is completed, effectively increasing the fourth quarter dividend by nearly 17%. “These actions by the board reflect the company’s solid capital base, its strong performance and the board’s optimism about our future,” said Brunngraber. Cass has continuously paid regularly scheduled cash dividends since 1934.