Press release

Cass Information Systems, Inc. Achieves All-Time High in Quarterly Net Income in Q1 2019

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Cass
Information Systems, Inc.
(NASDAQ: CASS), a
leading provider of transportation, energy, telecom and waste invoice
payment and information services, reported first quarter 2019 earnings
of $.55 per diluted share, an increase of 2% from the $.54 per diluted
share it earned in the first quarter of 2018. Net income for the period
was $8.2 million, the highest quarterly net figure ever produced by the
company. In the first quarter of 2018, Cass had $8.1 million in net
income.

                   
      March 31, 2019     March 31, 2018     % Change
Transportation Invoice Volume     8.9 million     9.1 million     (2.6)
Transportation Dollar Volume     $7.0 billion     $6.8 billion     2.9
Facility Expense Transaction Volume*     7.0 million     7.1 million     (1.8)
Facility Expense Dollar Volume*     $3.6 billion     $3.4 billion     5.2
Revenues     $38.4 million     $36.0 million     6.6
Net Income     $8.2 million     $8.1 million     0.9
Diluted Earnings Per Share     $.55     $.54     1.9

*Includes Energy, Telecom and Waste

 

2019 1st Quarter Recap

First quarter 2019 revenue increased 7% with net income up 1%. Factors
that continued to influence performance were an expanding customer base;
the development, deployment and extension of new revenue-generating
services; and higher interest rates. The bottom-line advances were
achieved despite significant on-going investment in technology and
infrastructure to support global expansion and future service growth.

Transportation activity was mixed with dollar volume increasing 3% in
the quarter aided by higher carrier and fuel prices, while
transportation invoice volume declined 3% compared to a strong Q1 2018
that included one additional processing day.

Facility-related (electricity, gas, waste and telecom expense
management) dollar volume was up 5%. New customer wins, coupled with
increased volume from current accounts, supported the increase. Facility
expense transactions were down 2% for the period due to a reduction in
the number of sites for existing retail customers and one less
processing day in Q1 2019.

Consolidated operating expenses increased $2.3 million (9%) due mainly
to on-going strategic investment in the technology and staff required to
win and support new business.

“Even as the company sets a new record for quarterly net income in the
present day, our focus remains on the future and on procuring the people
and technology required to execute our long-term plan for steady
growth,” noted Eric H. Brunngraber,
Cass chairman and chief executive officer.

Cash Dividend Declared

On April 23, 2019, the company’s board of directors declared a second
quarter dividend of $.26 per share payable June 14, 2019 to shareholders
of record June 4, 2019. Cass has continuously paid regularly scheduled
cash dividends since 1934.

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 $60 billion annually on behalf of clients, and with total assets of
$1.6 billion, Cass is uniquely supported by Cass
Commercial Bank. Founded in 1906 and
a wholly owned subsidiary, Cass 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.

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, 2018.

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, 2019 and 2018:

     
Quarter

Ended

March 31, 2019

Quarter

Ended

March 31, 2018

Transportation Invoice Volume 8,948 9,191
Transportation Dollar Volume $ 6,985,773 $ 6,790,747
Facility Expense Transaction Volume 6,994 7,121
Facility Expense Dollar Volume $ 3,617,428 $ 3,438,203
 
Payment and Processing Fees $ 26,457 $ 24,827
Net Investment Income 11,357 10,609
Gains on Sales of Securities 11 13
Other   545   534
Total Revenues $ 38,370 $ 35,983
Personnel $ 22,277 $ 20,382
Occupancy 959 854
Equipment 1,469 1,308
Other   3,757   3,638
Total Operating Expenses $ 28,462 $ 26,182
Income from Operations before Income Tax Expense $ 9,908 $ 9,801
Income Tax Expense   1,745   1,709
Net Income $ 8,163 $ 8,092
Basic Earnings per Share $ .56 $ .55
Diluted Earnings per Share $ .55 $ .54
 
Average Earning Assets $ 1,438,614 $ 1,410,945
Net Interest Margin 3.42% 3.25%
Allowance for Loan Losses to Loans 1.40% 1.45%
Non-performing Loans to Total Loans

Net Loan (Recoveries) / Charge-offs to Loans

Provision for Loan Losses $ 250 $