NASDAQ$CASS

Cass Information Systems Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Reported fourth quarter earnings, showing a decrease in net income compared to the same period last year, but an increase compared to the previous quarter. The company successfully terminated its defined benefit pension plan and completed the acquisition of AcuAudit.

Cass Information Systems reported Q4 2024 earnings of $0.33 per diluted share, a decrease from $0.61 in Q4 2023 but an increase from $0.21 in Q3 2024. Net income was $4.6 million, down 45.4% year-over-year but up 56.4% from the previous quarter. The company highlighted operational strength, increased net interest margin, and strategic initiatives expected to drive future profitability.

  • Net income decreased by 45.4% compared to Q4 2023, but increased by 56.4% compared to Q3 2024.
  • Net interest margin increased to 3.55% from 3.30% in Q4 2023.
  • Facility expense transaction volumes increased by 20.3% year-over-year.
  • The company successfully terminated its defined benefit pension plan, resulting in a one-time expense of $3.5 million but expected to reduce annual operating costs by approximately $1 million.

Headline financials

Total Revenue

$50.4M

Previous: $50.7M-0.7%
EPS (adj)

$0.33

Previous: $0.61-45.9%
Transportation Invoices

8.9M

Previous: 8.7K+102029.9%
Transportation Volume

$8.99B

No prior period
Facility Expense Invoices

4.1M

No prior period
Facility Expense Volume

$5.03B

No prior period
Net Interest Margin

3.5%

Previous: 3.3%+7.6%
ROAE

7.9%

Previous: 16.1%-50.9%
ROAA

0.8%

No prior period
Avg. FTEs

999

No prior period
Capital Expenditures

-$1.48M

Previous: $4.96M-129.8%
Net Income

$4.59M

Previous: $8.41M-45.4%
Operating Income

$5.76M

Previous: $10.4M-44.3%

Revenue & EPS history

Cass · Revenue · Quarterly

$50.4M

Q4 2024-0.7%vs Q4 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Cass · $31.5M total across 2 segments · Q3 2023

  • Processing Fees
    $19.9M+5.1%
  • Financial Fees
    $11.6M+3.1%

Forward guidance

Cass expects enhanced profitability in 2025, driven by increased net interest margin, recovery of earning assets, operating efficiencies from AI, and new business wins. Freight indices approaching positive territory also contribute to a positive outlook.

Tailwinds

  • Net interest margin is expected to continue to increase.
  • Average earning assets are expected to return to pre-cyber event levels.
  • AI-enabled technology platforms are expected to improve operating efficiencies.
  • The termination of the defined benefit pension plan will reduce annual operating costs by close to $1 million.
  • New business wins reflect market leadership and client trust.

Headwinds

  • Net income in 2024 was negatively impacted by bad debt expense, a pension termination loss, and a cyber event.
  • Processing fees decreased by 2.2% year-over-year.
  • Financial fees decreased by 6.6% year-over-year.
  • Average deposits decreased by 1.8% when compared to the fourth quarter of 2023.
  • Average accounts and drafts payable decreased by 4.9%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.8%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+5.9%

Q3 2022

Best reaction

-13.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-2.0%-6.0%
Q4 2025+1.6%+3.6%+4.2%
Q3 2025+0.4%-0.6%+5.5%
Q2 2025-1.4%-0.8%-0.0%
Q1 2025-1.2%-0.8%+3.5%
Q4 2024+2.7%+2.6%+6.9%
Q3 2024-6.2%-3.9%+3.6%
Q2 2024-13.8%-11.3%-9.1%
Q1 2024-6.9%-3.9%+2.1%
Q4 2023+2.4%+2.9%+10.6%
Q3 2023-1.1%+1.7%+12.0%
Q2 2023+0.2%-2.2%+0.2%
Q1 2023-12.3%-13.1%-10.2%
Q4 2022+1.7%+2.2%+7.0%
Q3 2022+5.9%+7.9%+16.5%
Q2 2022+5.1%+9.0%+14.0%
Q1 2022+3.2%+4.3%-11.0%
Q4 2021+3.6%+6.5%+5.5%
Q3 2021+0.4%+0.1%+7.1%
Q2 2021-0.4%+1.2%+8.9%
Q1 2021+0.2%-1.7%-0.9%
Q4 2020+0.7%+4.1%+6.8%
Q3 2020+3.4%-3.7%+1.8%
Q2 2020-4.3%-6.5%-2.4%
Q1 2020+2.4%+13.4%+8.1%
Q4 2019-2.5%-2.4%-15.2%
Q3 2019+2.9%+8.9%+6.4%
Q2 2019+2.9%+3.7%-1.4%
Q1 2019+3.4%+1.0%-6.3%
Q4 2018-2.9%+1.0%+2.6%
Q3 2018+4.8%+10.8%+14.3%
Q2 2018-2.8%-2.9%+6.5%
Q1 2018-1.5%-1.0%+2.2%
Q4 2017-2.5%-4.5%+4.3%
Q3 2017+1.1%-0.2%+1.5%
Q2 2017-1.2%-3.8%-9.1%
Q1 2017-1.3%-2.2%-8.0%
Q4 2016+0.5%-3.2%-0.3%
Q3 2016+0.7%+2.7%+29.2%
Q2 2016-0.0%-2.3%+1.5%
Q1 2016+0.2%
Q4 2015+4.0%
Q3 2015+2.7%
Q2 2015-8.0%
Q1 2015+4.4%
Q4 2014-8.8%
Q3 2014+5.1%
Q2 2014-0.8%
Q1 2014+2.9%
Q4 2013-8.6%
Q3 2013+1.2%
Q2 2013+3.3%
Q1 2013-0.4%
Q4 2012-4.0%
Q3 2012-2.3%
Q4 2011+4.9%
Q2 2012+4.9%
Q1 2011-1.7%
Q1 2012+0.9%
Q4 2009+2.2%
Q3 2010+1.0%
Q3 2011+1.0%
Q2 2011-1.7%
Q2 2010-1.7%
Q4 2010-1.7%
Q1 2010-4.4%

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