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Cass Information Systems, Inc. Reports 1st Quarter 2012 Earnings

Net investment income decreased $.7 million, or 6%, primarily due to the historically low interest rate environment.

Overall operating expenses were up $2.2 million, or 12%, primarily due to higher processing volume requiring more headcount plus the addition of the new environmental expense service line following Cass’ acquisition of Waste Reduction Consultants, Inc. of Jacksonville, Fla. in January.

“While year-to-year earnings and net income results were muted this quarter, they do represent record levels and demonstrate the ability of the company to continue to steadily grow despite a depressed interest rate environment that exerts severe pressure on interest rate related earnings,” said Eric H. Brunngraber , Cass president and chief executive officer. “Our focus remains on sustaining growth over the long-term. We believe our newly expanded portfolio of complex payables services provides a solid base to achieve that objective in 2012 and the years beyond.”

About Cass Information Systems

Cass Information Systems is the leading provider of transportation, utility, telecom and environmental invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses $32 billion annually on behalf of customers from locations in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C., Wellington, Kansas, and Jacksonville, Fla. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000® Index .

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. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the company’s actual results, see the company’s reports filed from time to time with the Securities and Exchange Commission including the company’s annual report on Form 10-K for the year ended December 31, 2011.

Selected Consolidated Financial Data

The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended March 31, 2012 and 2011:


March 31, 2012


March 31, 2011
Transportation Invoice Volume 6,873 6,670
Transportation Dollar Volume $ 5,382,091 $ 4,568,930
Utility Transaction Volume 3,607 3,358
Utility Dollar Volume $ 2,592,486 $ 2,689,235
Payment and Processing Fees $ 16,487 $ 14,347
Net Investment Income 10,551 11,248
Gains on Sales of Securities 966

Other   430     485  
Total Revenues $ 28,434   $ 26,080  
Salaries and Benefits $ 15,561 $ 13,706
Occupancy 532 648
Equipment 863 847
Other   3,385     2,933  
Total Operating Expenses $ 20,341   $ 18,134  
Income from Operations before Income Tax Expense $ 8,093 $ 7,946
Income Tax Expense   2,185     2,227  
Net Income $ 5,908   $ 5,719  
Basic Earnings per Share $ .57   $ .55  
Diluted Earnings per Share $ .56   $ .55  
Average Earning Assets $ 1,193,752 $ 1,149,715
Net Interest Margin 4.08 % 4.60 %
Allowance for Loan Losses to Loans 1.88 % 1.74 %
Non-performing Loans to Total Loans 1.11 % .08 %
Net Loan (Recoveries) Charge-offs to Loans .03 % -.01 %
Provision for Loan Losses $ 200 $ 450

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