Cass Information Systems, Inc. has reported its second quarter 2024 results, showcasing several significant changes compared to the same period in 2023:
- Net income decreased to $4.5 million from $7.1 million in the second quarter of 2023.
- Earnings per diluted share dropped to $0.32 from $0.52 in the second quarter of 2023 and $0.52 in the first quarter of 2024.
- Return on average equity and assets were 8.01% and 0.78%, respectively.
In terms of specific business segments: Transportation dollar volumes decreased by 6.5% to $9.1 billion year-over-year. Facility expense dollar volumes increased by 10.1% to $5.0 billion year-over-year. * Processing fees grew by 8.9%, primarily driven by a 25.1% increase in facility transaction volumes.
On the financial side: Financial fees earned on a transactional level basis for invoice payment services decreased by $1.0 million, or 8.9%, primarily due to a decline in transportation dollar volumes. Net interest income decreased by 0.5%, attributed to a decline in average interest-earning assets.
Other notable changes include: Personnel expenses increased by $425,000, or 1.4%, mainly due to salary and commission increases. Non-personnel expenses increased by $3.0 million, with $2.1 million attributed to reserves and other losses on outstanding receivables.
Looking ahead, the company plans to focus on implementing signed client deals and reducing run-rate expense levels using new technology. Additionally, the termination of its noncontributory defined-benefit pension plan is expected to result in one-time termination expenses of approximately $5.0 million, with an anticipated reduction of run-rate operating expenses by approximately $1.0 million annually.
Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions, disbursing over $90 billion annually on behalf of clients. It is also part of the Russell 2000®. As a result of these announcements, the company's shares have moved -15.2% on the market, and are now trading at a price of $39.05. If you want to know more, read the company's complete 8-K report here.
