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Jun 30, 2022
Cass Q2 2022 Earnings Report
Reported net income and revenue growth of 21.9% and 15.1%, respectively.
Key Takeaways
Cass Information Systems reported a strong second quarter with record net income and diluted earnings per share. Net income increased by 21.9% to $8.6 million, and diluted earnings per share increased by 29.2% to $0.62. The company saw growth in transportation dollar volumes, financial fees, and average loans, excluding PPP loans.
Record quarterly net income and diluted earnings per share were achieved.
Diluted earnings per share increased by 29.2% to $0.62.
Net income increased by 21.9% to $8.6 million.
Transportation dollar volumes increased by 27.7%.
Cass
Cass
Cass Revenue by Segment
Revenue by Segment
Processing fees Revenue
CapyFin.comFinancial fees Revenue
CapyFin.com Forward Guidance
The company anticipates that recent and future increases in short-term interest rates should enhance revenue going forward.
Positive Outlook
- Strategic initiatives undertaken during the past few years are yielding strong financial results.
- Further initiatives are well underway to expand the service portfolio.
- Operational efficiency is expected to increase.
- Recent and anticipated future increase in short-term interest rates should enhance revenue going forward.
- Company maintains significant liquidity.
Challenges Ahead
- The provision for credit losses was primarily driven by external economic factors, including the reduction in the forecast of Gross Domestic Product (GDP).
- Total shareholders’ equity has declined $40.2 million since December 31, 2021 primarily as a result of an increase in accumulated other comprehensive loss due to the rise in market interest rates and resulting negative impact on the fair value of available-for-sale investment securities.
- Inflationary pressures
- Supply chain disruptions
- Energy prices
Revenue & Expenses
Visualization of income flow from segment revenue to net income