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Sep 30, 2024
Cass Q3 2024 Earnings Report
Cass Information Systems' third quarter earnings of 2024 were reported, impacted by bad debt expense but supported by transaction volume growth and increased net interest margin.
Key Takeaways
Cass Information Systems reported third quarter earnings of $0.21 per diluted share, down from $0.54 in the same quarter last year. Net income was $2.9 million, impacted by $6.6 million in bad debt expense. However, the company saw an increase in net interest margin to 3.55% and growth in facility expense transaction volumes of 26.3%.
Net income was $2.9 million, or $0.21 per diluted common share, which includes $6.6 million of bad debt expense.
Net interest margin increased to 3.55%.
Facility expense transaction volumes increased by 26.3%.
Quarterly dividend increased to $0.31 per share.
Cass
Cass
Cass Revenue by Segment
Revenue by Segment
Processing fees Revenue
CapyFin.comFinancial fees Revenue
CapyFin.com Forward Guidance
The Company expects to record one-time termination expenses of between approximately $4-6 million through operating expense related to the termination of its noncontributory defined-benefit pension plan during the fourth quarter of 2024. The successful termination of the plan is expected to reduce run rate operating expense by approximately $1.0 million on an annual basis.
Positive Outlook
- Termination of pension plan is expected to reduce run rate operating expense by approximately $1.0 million annually.
Challenges Ahead
- One-time termination expenses of between approximately $4-6 million expected in Q4 2024 due to pension plan termination.
Revenue & Expenses
Visualization of income flow from segment revenue to net income