Wed, Mar 5, 3:33 PM (53 days ago)
**Cass Information Systems, Inc. (CASS) Summary** For the fiscal year ended December 31, 2024, Cass Information Systems reported total revenues of $199.2 million, a modest increase of 0.8% from 2023, driven primarily by a rise in processing fees. The company's net income fell significantly to $19.2 million (EPS of $1.39), down 36.2% year-over-year, largely due to increased operating expenses of $175 million, which included a $7.8 million bad debt expense related to a client and a one-time pension termination cost of $3.5 million. The firm maintained a strong capital position with a common equity Tier 1 capital ratio of 13.84% and no non-performing loans. However, average earning assets decreased by 3.1% to $2 billion, influenced by a cyber incident resulting in a loss of $100 million in balances. The company continues to focus on expanding its payment processing services while managing risks associated with economic fluctuations, interest rate changes, and cybersecurity threats. Future outlook remains cautious, with potential impacts from interest rate declines and ongoing economic uncertainties. The company’s treasury stock buyback program remains active, with $7.2 million spent in 2024. Overall, while Cass remains well-capitalized, its profitability and growth are contingent upon navigating significant operational challenges.