This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs