Cass Information Systems Reports Record Annual Net Income and EPS

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-performing loans financial

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

restructuring charge financial

A restructuring charge is a one-time accounting expense a company records when it reorganizes operations—like closing facilities, laying off staff, or writing down assets—to make the business leaner or change strategy. Think of it as the short-term cost of renovating a house to lower future bills: it reduces reported profit and may use cash now, but investors watch it to judge whether the cleanup will improve future profitability or hide ongoing problems.

defined benefit pension plan financial

A defined benefit pension plan is a retirement program that promises participants a specific monthly payment in retirement, usually based on salary and years worked, with the employer responsible for funding and making up any shortfall. Think of it as the company guaranteeing a steady paycheck in retirement while handling the investments and risks. Investors care because shortfalls become long-term liabilities that can require large cash contributions, affect profitability and borrowing costs, and add uncertainty to a company’s financial health.

payments in advance of funding financial

Payments in advance of funding are cash outlays a company makes or receives before a planned loan, investment, grant, or fundraiser is finalized. Think of it like paying a deposit on a house before the mortgage is approved — it helps a project or deal keep moving but creates short-term cash flow and risk if the expected financing falls through. Investors watch these payments because they can affect liquidity, reveal funding confidence, and change the true timing of expenses or incoming capital.

supply chain finance solution financial

A supply chain finance solution is a financing arrangement that lets suppliers get paid sooner while allowing buyers to delay cash outlays, with a bank or platform advancing funds against approved invoices. Think of it as a short-term loan that smooths cash flow across trading partners so suppliers stay healthy and buyers preserve cash. Investors care because it affects a company’s working capital, credit risk, and reported cash flow and can mask or reveal pressure in the business.

full-time equivalent employees financial

Full-time equivalent employees (FTE) is a standardized way to count workforce size by converting part-time and variable hours into the number of full-time workers they equal — for example, two half-time workers equal one FTE. Investors use FTE to compare staffing levels, estimate labor costs, and assess operational efficiency across periods or companies; it’s like adding up all the work hours and saying how many full-time people they amount to.

ST. LOUIS--(BUSINESS WIRE)-- Cass Information Systems, Inc. (Nasdaq: CASS) (the Company or Cass) today reported its full year and fourth quarter 2025 earnings.

Full Year Financial Highlights

• Record net income and diluted earnings per share of $35.1 million and $2.61, respectively.
• Return on average equity and assets of 14.98% and 1.43%, respectively.
• Increase in net interest income of $13.5 million, or 19.8%.
• Increase in facility dollar volumes of 14.7%.
• Increase in average accounts and drafts payable of 14.9%.
• Salaries and commissions increase limited to 0.4% as a result of a decline in average FTEs of 5.4%.
• Repurchased 617,415 shares of Company common stock at a weighted average price of $41.59.

Fourth Quarter Financial Highlights

• Net income and diluted earnings per share of $8.2 million and $0.62, respectively.
• Adjusted net income and adjusted diluted earnings per share from continuing operations of $9.0 million and $0.68, increases of 32.9% and 38.8% compared to the prior year quarter.
• Increase in net interest margin to 3.93%, compared to 3.55% in the prior year quarter.
• Increase in facility dollar volumes of 13.0%.
• Consolidated Waste and Utility divisions into a single Facility division to drive improved efficiency and client experience.
• Continued strong asset quality with no loan charge-offs and an allowance for credit losses to loans ratio of 1.28%. In addition, received a full payoff on the Company’s only modified loan of $27.9 million.
• Repurchased 201,450 shares of Company stock at a weighted average price of $40.59.

In announcing these results, Martin Resch, the Company’s President and Chief Executive Officer, noted, “Our record annual earnings are a testament to the ability of the entire Cass team to execute on our strategy.” Resch added, “While I am extremely proud of our performance in 2025, I am even more excited about our prospects for 2026 with revenue tailwinds from onboarding new clients as well as the prospect of interest-earning asset growth and net interest margin expansion. Operationally, the consolidation of our non-transportation invoice and payment processing activities into a single Facilities division, combined with the expanded utilization of AI-enabled systems, should result in increased efficiency and enhanced levels of client satisfaction."

Earnings for the fourth quarter and full year of 2025 are summarized as follows:

($ in thousands, except per share data)	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Net income from continuing operations	$	8,189		$	9,212		$	5,160		$	8,551		$	4,158		$	31,112		$	18,558
Net income	$	8,189		$	9,106		$	8,855		$	8,966		$	4,594		$	35,116		$	19,168
Diluted earnings per share from continuing operations	$	0.62		$	0.69		$	0.38		$	0.63		$	0.30		$	2.31		$	1.35
Diluted earnings per share	$	0.62		$	0.68		$	0.66		$	0.66		$	0.33		$	2.61		$	1.39
Return on average equity		13.45 %			15.29 %			15.35 %			15.91 %			7.88 %			14.98 %			8.37 %
Return on average assets		1.28 %			1.44 %			1.48 %			1.51 %			0.77 %			1.43 %			0.82 %
Net interest margin		3.93 %			3.87 %			3.78 %			3.75 %			3.55 %			3.83 %			3.42 %

($ in thousands, except per share data)	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Net income from continuing operations (GAAP)	$	8,189		$	9,212		$	5,160		$	8,551		$	4,158		$	31,112		$	18,558
Net income adjustments(1)		821			(3)			2,674			(1,489)			2,623			2,003			9,507
Adjusted net income from continuing operations (Non-GAAP) (1)	$	9,010		$	9,209		$	7,834		$	7,062		$	6,781		$	33,115		$	28,065
Diluted earnings per share from continuing operations (GAAP)	$	0.62		$	0.69		$	0.38		$	0.63		$	0.30		$	2.31		$	1.35
Adjusted diluted earnings per share from continuing operations (Non-GAAP) (1)	$	0.68		$	0.69		$	0.58		$	0.52		$	0.49		$	2.46		$	2.04

(1)	Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release.

Fourth Quarter 2025 Financial Commentary

(All comparisons refer to the fourth quarter of 2024, except as noted)

Transportation Invoice and Dollar Volumes – Transportation invoice volumes of 8.4 million decreased 6.1% as compared to the fourth quarter of 2024. Transportation dollar volumes of $9.2 billion increased 1.8% as compared to the fourth quarter of 2024. The average dollars per invoice were $1,093 in the fourth quarter of 2025, compared to $1,044 in the third quarter of 2025 and $1,008 in the fourth quarter of 2024. Invoice volumes remain lower than prior periods primarily due to the ongoing freight recession, the impact of tariffs, and weather conditions in the most recent period. Dollars per invoice increased as compared to the fourth quarter of 2024 due to an increase in overall freight rates, as well as the impact of tariffs. A more detailed analysis of Cass Freight Index® changes can be found at www.cassinfo.com.

Facility Expense Invoice and Dollar Volumes – Facility expense invoice volumes of 4.1 million decreased 0.6% as compared to the fourth quarter of 2024. Facility expense dollar volumes totaled $5.7 billion, an increase of 13.0% as compared to the fourth quarter of 2024. The significant increase in facility dollar volumes was primarily driven by the onboarding of new clients with high dollar volumes in proportion to transaction volumes and rising energy prices.

Processing Fees – Processing fees increased $605,000, or 3.9% over the same period in the prior year due to the AcuAudit acquisition, partially offset by lower transportation and facility transaction volumes.

Financial Fees – Financial fees, earned on a transactional level basis for invoice payment services when making customer payments, decreased $650,000, or 6.2%. The decrease in financial fees was primarily due to a decrease in average payments in advance of funding of 12.9% in addition to changes in the manner whereby facility vendors receive payments. The Company continues to focus on the rollout of its Amplify supply chain finance solution as well as other opportunities to increase payments in advance of funding and resulting financial fees in future quarters.

Net Interest Income – Net interest income increased $3.7 million, or 20.9%. The increase in net interest income was attributable to the net interest margin improving to 3.93% as compared to 3.55% in the same period last year, in addition to an increase in average interest-earning assets of $184.9 million, or 9.1%.

The Company’s net interest margin improvement was driven by increases in the average yield on loans and investment securities of 31 and 72 basis points, respectively, combined with a decrease in the average cost of total deposits of 28 basis points, partially offset by a decrease in the yield on short-term investments of 74 basis points. The increase in loan yield was driven by the continued maturing and re-pricing of existing fixed rate loans to current market interest rates. The increase in the investment securities yield was driven by the partial repositioning of the portfolio at the end of the second quarter as well as purchases of investments at current market rates during the fourth quarter. The decline in the cost of total deposits and yield on short-term investments was driven by the reduction in the federal funds rate.

The Company would expect continued expansion in its net interest margin in future quarters to the extent 3-5 year U.S. Treasury interest rates stay relatively consistent or increase as compared to current levels.

Provision for Credit Losses - The Company recorded a release of credit losses of $389,000 during the fourth quarter of 2025 as compared to a provision for credit loss of $92,000 in the fourth quarter of 2024. The release of credit losses for the fourth quarter of 2025 was largely driven by the $27.9 million payoff of a modified loan.

Personnel Expenses - Personnel expenses decreased $2.2 million, or 7.5% as compared to the fourth quarter of 2024, primarily due to the termination of the Company’s defined benefit pension plan in the prior year quarter resulting in expense of $3.6 million. Salaries and commissions increased $378,000, or 1.9%, as a result of the AcuAudit acquisition and merit increases, partially offset by a decrease in average full-time equivalent employees (“FTEs”) of 6.0% due to strategic investments in various technology initiatives. Share-based compensation and employee profit sharing increased $464,000 and $40,000, respectively, due to the improvement in earnings. Other benefits increased $471,000, or 11.4%, due to higher health insurance costs, partially offset by the decrease in average FTEs.

The Company expects a continued gradual decline in its FTEs in future quarters as a result of the Facility line of business consolidation in addition to the continued focus on AI-enabled systems.

Equipment Expense - Equipment expense increased $272,000 as compared to the fourth quarter of 2024 primarily due to an increase in depreciation expense on software related to recently completed technology initiatives.

Other Expense - Other expense increased $1.4 million as compared to the fourth quarter of 2024. Other expense includes a $1.1 million restructuring charge primarily related to the consolidation of the Company’s non-transportation invoice and payment processing activities into a single Facilities division. The restructuring charge includes write-offs of redundant internally developed software and other assets. The Facility consolidation is expected to result in efficiencies of approximately $1.0 million on an annual basis. Other expense is also higher than previous quarters as a result of an increase in the cost of delivering Canadian utility invoices due to the Canada Post labor dispute, resulting in an increase in expense of $262,000. The labor dispute is not expected to have an impact on expense levels in future quarters.

Income Tax Expense - The Company’s effective tax rate was 18.0% for the fourth quarter of 2025 compared to 20.7% for the third quarter of 2025 and 20.3% for the fourth quarter of 2024. The effective tax rate for the fourth quarter of 2025 is reflective of purchases of tax-exempt municipal securities during the second half of 2025 and the impact of certain tax credits. The Company expects an effective tax rate of approximately 20.5% in future quarters.

Loans - When compared to September 30, 2025, loans decreased $27.1 million, or 2.5%, due to the aforementioned $27.9 million payoff of a modified franchise loan.

Payments in Advance of Funding – Average payments in advance of funding decreased $26.0 million, or 12.9%, as compared to the fourth quarter of 2024, primarily due to the continued consolidation of freight carriers, partially offset by a 1.8% increase in transportation dollar volumes.

Deposits – Average deposits decreased $2.2 million, or 0.2%, when compared to the fourth quarter of 2024 and increased $19.0 million, or 1.9%, as compared to the third quarter of 2025.

Accounts and Drafts Payable - Average accounts and drafts payable increased $178.7 million, or 17.2%, as compared to the fourth quarter of 2024. The increase in these balances, which are non-interest bearing, are primarily reflective of the increase in transportation and facility dollar volumes of 1.8% and 13.0%, respectively.

Shareholders’ Equity - Total shareholders’ equity decreased $451,000 since September 30, 2025 as a result of the repurchase of Company stock of $8.2 million and dividends of $4.1 million, partially offset by net income of $8.2 million and a decrease in accumulated other comprehensive loss of $2.7 million primarily related to the fair value of available-for-sale investment securities.

Dividend - On January 20, 2026, the Company’s Board of Directors approved a quarterly dividend of $0.32 per share with the dividend payable on March 13, 2026 to shareholders of record on March 3, 2026.

Repurchase of Common Stock - On November 10, 2025, the Company announced a new buyback program with an authorization from the Board of Directors to repurchase up to 1,000,000 shares of the Company’s common stock. The Company repurchased 201,450 shares of common stock during the current quarter. The Company anticipates further repurchases in coming quarters with an overall objective of maintaining a leverage ratio of approximately 10.00%. Future levels of repurchases will depend on market conditions, earnings, balance sheet growth and potential acquisition opportunities.

Asset Quality - Non-performing loans totaled $7.0 million at December 31, 2025, a decrease of $82,000 as compared to September 30, 2025. The Company is actively working to reduce these loan balances and does not believe there is more than nominal loss exposure in these loans based on collateral position.

About Cass Information Systems

Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities and other operations. Disbursing over $94 billion annually on behalf of clients, and with total assets of $2.6 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Commercial Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000^®. More information is available at www.cassinfo.com.

On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its Telecom Expense Management & Managed Mobility Services (“TEM”) business to Asignet USA Inc. The sale closed on June 30, 2025. The Company has applied discontinued operations accounting in accordance with FASB Accounting Standards Codification (“ASC”), Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities being sold related to the Company's TEM Business Unit as of and for the periods ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024, as applicable. All financial information in this earnings release is reported on a continuing operations basis, unless otherwise noted.

About Non-GAAP Financial Measures

Certain of the financial measures and ratios the Company presents, including “adjusted net income from continuing operations,” and “adjusted diluted earnings per share from continuing operations,” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). The Company refers to these financial measures and ratios as “non-GAAP financial measures.” The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain revenue and expense items that the Company believes are not indicative of its primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. The Company believes that management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of the Company’s performance. The non-GAAP financial measures the Company presents may differ from non-GAAP financial measures used by the Company’s peers or other companies. The Company compensates for these differences by providing the equivalent GAAP measures whenever the Company presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing the Company’s performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward Looking Information

All statements other than statements of historical fact included in this release, including without limitation the Company’s future prospects and performance, the business strategy and the plans and objectives of the Company's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate,” “could,” “should,” “would,” “likely,” “may,” “will,” “plan,” “intend,” “believes,” “expects,” “anticipates,” “projected,” and variations of these terms and similar expressions. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Actual results or business conditions may differ materially from those projected or suggested in forward-looking statements as a result of various factors including, but not limited to, those described below and in Part I, Item 1A, “Risk Factors” of our most recent Annual Report.

Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to general economic, market or business conditions unrelated to the Company’s operating performance, including inflation, changes in interest rates, changes in energy prices, supply chain disruptions, financial institution disruptions, geopolitical conflicts, public health emergencies and declines in consumer confidence and discretionary spending; the Company’s ability to compete with its competitors and increase market share; the Company’s ability to maintain compliance with rules and regulations applicable to our business operations and industry; increased regulatory examination scrutiny or new regulatory requirements; whether the Company’s customers continue to utilize its payment processing and related services; unfavorable developments concerning customer credit quality; risk associated with lending concentrations including, but not limited to, faith-based ministries and franchise restaurants; liquidity risk; and risks associated with cyber-attacks and data breaches.

Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by the Company in this release speaks only as of the date of this release. Unless required by law, the Company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. If the Company updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.

Consolidated Statements of Income (unaudited)

($ and numbers in thousands, except per share data)
	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Processing fees	$	16,304		$	16,655		$	17,082		$	16,469		$	15,699		$	66,510		$	66,060
Financial fees		9,860			10,416			10,161			9,961			10,510			40,398			42,585
Total fee revenue	$	26,164		$	27,071		$	27,243		$	26,430		$	26,209		$	106,908		$	108,645
Interest and fees on loans		15,521			15,632			15,837			15,350			14,428			62,340			55,363
Interest and dividends on investment securities		6,767			5,679			4,799			4,147			4,104			21,392			16,930
Interest on short-term investments		3,078			3,860			3,003			3,893			3,844			13,834			15,752
Total interest income	$	25,366		$	25,171		$	23,639		$	23,390		$	22,376		$	97,566		$	88,045
Interest expense		3,895			4,151			4,164			4,116			4,612			16,326			20,258
Net interest income	$	21,471		$	21,020		$	19,475		$	19,274		$	17,764		$	81,240		$	67,787
Release of (provision for) credit losses		389			193			(25)			(905)			(92)			(348)			(447)
Gain (loss) on sale of investment securities		38			4			(3,558)			(18)			(33)			(3,534)			(46)
Other		1,827			1,768			1,263			1,626			1,736			6,484			5,248
Total revenues	$	49,889		$	50,056		$	44,398		$	46,407		$	45,584		$	190,750		$	181,187
Salaries and commissions		20,304			20,105			20,638			19,663			19,926			80,710			80,371
Share-based compensation		1,009			1,018			918			1,241			545			4,186			3,053
Employee profit sharing		1,514			1,685			1,583			1,502			1,474			6,284			4,452
Net periodic pension cost		—			—			—			—			3,588			—			4,169
Other benefits		4,602			4,798			4,613			4,873			4,131			18,886			17,292
Total personnel expenses	$	27,429		$	27,606		$	27,752		$	27,279		$	29,664		$	110,066		$	109,337
Occupancy		643			734			669			721			679			2,767			2,695
Equipment		2,548			2,513			2,562			2,294			2,276			9,917			8,101
Amortization of intangible assets		293			293			293			293			173			1,172			692
Bad debt (recovery) expense		—			—			—			(2,000)			—			(2,000)			7,847
Other		8,988			7,295			6,843			6,943			7,576			30,069			29,070
Total operating expenses	$	39,901		$	38,441		$	38,119		$	35,530		$	40,368		$	151,991		$	157,742
Income from continuing operations, before income tax expense	$	9,988		$	11,615		$	6,279		$	10,877		$	5,216		$	38,759		$	23,445
Income tax expense		1,799			2,403			1,119			2,326			1,058			7,647			4,887
Net income from continuing operations	$	8,189		$	9,212		$	5,160		$	8,551		$	4,158		$	31,112		$	18,558
(Loss) income from discontinued operations, net of tax		—			(106)			3,695			415			436			4,004			610
Net income	$	8,189		$	9,106		$	8,855		$	8,966		$	4,594		$	35,116		$	19,168
Basic earnings per share from continuing operations	$	.63		$	.70		$	.39		$	.64		$	.31		$	2.36		$	1.37
Basic (loss) earnings per share from discontinued operations		—			(.01)			.28			.03			.03			.30			.05
Basic earnings per share	$	.63		$	.69		$	.67		$	.67		$	.34		$	2.66		$	1.42
Diluted earnings per share from continuing operations	$	.62		$	.69		$	.38		$	.63		$	.30		$	2.31		$	1.35
Diluted (loss) earnings per share from discontinued operations		—			(.01)			.28			.03			.03			.30			.04
Diluted earnings per share	$	.62		$	.68		$	.66		$	.66		$	.33		$	2.61		$	1.39

Consolidated Balance Sheets (unaudited)

($ in thousands)
	As of
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Assets:
Cash and cash equivalents	$	392,268		$	258,634		$	218,165		$	220,674		$	349,728
Investment securities available-for-sale, at fair value		770,772			717,369			599,541			576,510			528,021
Loans		1,061,217			1,088,347			1,117,004			1,141,874			1,081,989
Less: Allowance for credit losses		(13,597)			(14,066)			(14,296)			(14,286)			(13,395)
Loans, net	$	1,047,620		$	1,074,281		$	1,102,708		$	1,127,588		$	1,068,594
Payments in advance of funding		164,514			188,040			177,601			175,326			208,530
Premises and equipment, net		29,449			30,287			30,700			31,748			30,576
Investments in bank-owned life insurance		52,195			51,700			51,224			50,767			50,325
Goodwill and other intangible assets		19,892			20,200			20,493			20,786			21,247
Accounts and drafts receivable from customers		69,425			49,798			60,276			40,465			55,906
Other assets		59,889			63,313			55,310			60,536			67,741
Assets of discontinued operations		—			—			—			14,057			14,413
Total assets	$	2,606,024		$	2,453,622		$	2,316,018		$	2,318,457		$	2,395,081
Liabilities and shareholders’ equity:
Deposits
Non-interest bearing	$	513,434		$	407,169		$	370,606		$	363,798		$	251,230
Interest-bearing		686,599			627,491			633,189			636,277			716,686
Total deposits	$	1,200,033		$	1,034,660		$	1,003,795		$	1,000,075		$	967,916
Accounts and drafts payable		1,124,858			1,130,371			1,036,795			1,016,324			1,129,610
Other liabilities		38,135			45,142			34,606			48,823			46,211
Liabilities of discontinued operations		—			—			—			18,988			22,314
Total liabilities	$	2,363,026		$	2,210,173		$	2,075,196		$	2,084,210		$	2,166,051
Shareholders’ equity:
Common stock	$	7,753		$	7,753		$	7,753		$	7,753		$	7,753
Additional paid-in capital		207,052			205,925			204,842			203,755			205,593
Retained earnings		167,092			163,038			158,005			153,278			148,487
Common shares in treasury, at cost		(112,148)			(103,835)			(97,103)			(91,025)			(87,615)
Accumulated other comprehensive loss		(26,751)			(29,432)			(32,675)			(39,514)			(45,188)
Total shareholders’ equity	$	242,998		$	243,449		$	240,822		$	234,247		$	229,030
Total liabilities and shareholders’ equity	$	2,606,024		$	2,453,622		$	2,316,018		$	2,318,457		$	2,395,081

Consolidated Financial Summary (unaudited)

($ in thousands)
	As of or for Three Months Ended															As of or for Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
LOAN PORTFOLIO
Commercial & Industrial:
Franchise	$	235,718		$	249,855		$	260,283		$	258,539		$	257,805		$	235,718		$	257,805
Leases		119,186			123,601			111,657			124,290			122,115			119,186			122,115
Other		198,194			196,273			211,629			229,514			179,329			198,194			179,329
Commercial Real Estate:
Faith-Based		397,608			407,074			410,917			403,525			394,412			397,608			394,412
Other		110,511			111,544			122,518			126,006			128,328			110,511			128,328
Total loans	$	1,061,217		$	1,088,347		$	1,117,004		$	1,141,874		$	1,081,989		$	1,061,217		$	1,081,989
AVERAGE BALANCES
Interest-earning assets	$	2,207,672		$	2,189,384		$	2,090,366		$	2,104,603		$	2,022,794		$	2,148,402		$	2,011,554
Loans		1,081,819			1,095,412			1,125,899			1,109,526			1,065,944			1,103,067			1,048,732
Investment securities		755,004			667,271			613,782			554,905			555,674			648,342			578,817
Short-term investments		334,824			382,250			298,875			383,836			348,632			349,900			326,233
Payments in advance of funding		175,009			175,705			176,191			173,590			200,963			175,129			202,860
Assets		2,529,068			2,499,914			2,402,508			2,408,406			2,366,992			2,460,414			2,349,397
Non-interest bearing deposits		421,548			406,241			393,054			405,183			399,778			406,551			414,711
Interest-bearing deposits		614,165			610,403			615,921			628,214			638,180			617,119			634,581
Accounts and drafts payable		1,214,865			1,209,416			1,122,739			1,072,013			1,036,212			1,160,018			1,009,757
Shareholders’ equity	$	241,525		$	236,208		$	231,414		$	228,615		$	231,993		$	234,481		$	228,944
YIELDS (tax equivalent)
Net interest margin		3.93 %			3.87 %			3.78 %			3.75 %			3.55 %			3.83 %			3.42 %
Interest-earning assets		4.63 %			4.62 %			4.58 %			4.54 %			4.46 %			4.59 %			4.43 %
Loans		5.69 %			5.66 %			5.64 %			5.61 %			5.38 %			5.65 %			5.28 %
Investment securities		3.59 %			3.34 %			3.02 %			2.86 %			2.87 %			3.23 %			2.82 %
Short-term investments		3.65 %			4.01 %			4.03 %			4.11 %			4.39 %			3.95 %			4.83 %
Total deposits		1.49 %			1.62 %			1.66 %			1.62 %			1.77 %			1.59 %			1.93 %
Interest-bearing deposits		2.52 %			2.70 %			2.71 %			2.66 %			2.88 %			2.65 %			3.19 %
ASSET QUALITY
Allowance for credit losses to loans		1.28 %			1.29 %			1.28 %			1.25 %			1.24 %			1.28 %			1.24 %
Non-performing loans	$	6,992		$	7,074		$	3,380		$	—		$	—		$	6,992		$	—
Non-performing loans to total loans		0.66 %			0.65 %			0.30 %			— %			— %			0.66 %			— %
Net loan charge-offs to loans		— %			— %			— %			— %			— %			— %			— %

Consolidated Financial Summary (unaudited) (continued)

($ and numbers in thousands, except average full-time equivalent employees)
	As of or for Three Months Ended															As of or for Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
SHARE DATA
Weighted average common shares outstanding		12,939			13,116			13,269			13,398			13,436			13,182			13,501
Weighted average common shares outstanding assuming dilution		13,219			13,399			13,562			13,653			13,718			13,463			13,778
Period end common shares outstanding		12,871			13,073			13,233			13,351			13,399			12,871			13,399
CAPITAL
Common equity tier 1 ratio		15.10 %			15.04 %			14.82 %			14.11 %			13.84 %			15.10 %			13.84 %
Total risk-based capital ratio		15.95 %			15.90 %			15.67 %			14.94 %			14.61 %			15.95 %			14.61 %
Leverage ratio		9.91 %			10.17 %			10.62 %			10.39 %			10.57 %			9.91 %			10.57 %
OTHER INFORMATION
Transportation invoice volume		8,376			8,884			8,837			8,355			8,919			34,451			35,729
Transportation dollar volume	$	9,156,077		$	9,277,722		$	9,370,535		$	8,643,138		$	8,994,440		$	36,447,471		$	36,113,169
Facility expense invoice volume		4,058			4,084			4,141			4,225			4,084			16,508			16,572
Facility expense dollar volume	$	5,686,642		$	6,233,369		$	5,513,143		$	5,822,935		$	5,032,620		$	23,256,090		$	20,272,451
Average full-time equivalent employees		939			958			985			1,002			999			971			1,026

Assets and Liabilities of Discontinued Operations (unaudited)

($ in thousands)
	As of
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24
Assets:
Premises and equipment, net	$	—		$	—		$	—		$	3,605		$	3,598
Goodwill and other intangible assets, net		—			—			—			5,102			5,112
Other assets		—			—			—			5,350			5,703
Assets of discontinued operations	$	—		$	—		$	—		$	14,057		$	14,413
Liabilities:
Accounts and drafts payable	$	—		$	—		$	—		$	16,465		$	19,665
Other liabilities		—			—			—			2,523			2,649
Liabilities of discontinued operations	$	—		$	—		$	—		$	18,988		$	22,314

Income from Discontinued Operations (unaudited)

($ in thousands)
	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Revenue:
Processing fees	$	—		$	—		$	3,807		$	3,823		$	3,768		$	7,630		$	15,795
Financial fees		—			—			475			413			205			888			713
Other fees		794			772			1,454			382			814			3,402			1,494
Gain on sale of TEM business		—			—			3,550			—			—			3,550			—
Total revenue		794			772			9,286			4,618			4,787			15,470			18,002
Operating expense:
Salaries and commissions		487			536			2,858			2,756			2,871			6,637			11,533
Share-based compensation		—			—			(16)			43			25			27			116
Other benefits		90			183			525			616			501			1,414			2,406
Total personnel expenses		577			719			3,367			3,415			3,397			8,078			14,055
Occupancy		24			23			180			181			189			408			751
Equipment		9			1			49			51			53			110			204
Amortization of intangible assets		—			—			9			9			9			18			45
Other		184			170			754			434			592			1,542			2,174
Total operating expense		794			913			4,359			4,090			4,240			10,156			17,229
(Loss) income from discontinued operations, before income tax (benefit) expense		—			(141)			4,927			528			547			5,314			773
Income tax (benefit) expense		—			(35)			1,232			113			111			1,310			163
Net (loss) income from discontinued operations	$	—		$	(106)		$	3,695		$	415		$	436		$	4,004		$	610

Other Information from Discontinued Operations (unaudited)

($ and numbers in thousands, except average full-time equivalent employees)
	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Facility expense invoice volume		—			—			126			133			133			259			563
Facility expense dollar volume	$	—		$	—		$	244,782		$	256,844		$	258,523		$	501,626		$	1,165,831
Average full-time equivalent employees		26			27			120			135			144			77			155

Reconciliation of GAAP to Non-GAAP Financial Information (unaudited)

($ in thousands, except per share data)
	Three Months Ended															Year Ended
	12/31/25			9/30/25			6/30/25			3/31/25			12/31/24			12/31/25			12/31/24
Net income from continuing operations (GAAP)	$	8,189		$	9,212		$	5,160		$	8,551		$	4,158		$	31,112		$	18,558
Adjustments:
(Gain) loss on sale of investment securities		(38)			(4)			3,558			18			33			3,534			46
Bad debt (recovery) expense		—			—			—			(2,000)			—			(2,000)			7,847
Late fees on facility transactions		—			—			—			—			—			—			1,300
Pension termination expense		—			—			—			—			3,458			—			3,458
Restructuring expense		1,131			—			—			—			—			1,131			—
Tax effect		(272)			1			(884)			493			(868)			(662)			(3,144)
Adjusted net income from continuing operations (Non-GAAP)	$	9,010		$	9,209		$	7,834		$	7,062		$	6,781		$	33,115		$	28,065
Diluted earnings per share from continuing operations (GAAP)	$	0.62		$	0.69		$	0.38		$	0.63		$	0.30		$	2.31		$	1.35
Adjusted diluted earnings per share from continuing operations (Non-GAAP)	$	0.68		$	0.69		$	0.58		$	0.52		$	0.49		$	2.46		$	2.04

 

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Cass Investor Relations

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Source: Cass Information Systems, Inc.