Cass Information Systems Reports Third Quarter 2026 Results
| ($ in thousands, except per share data) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | |||||||||||||||||||||
| Net income from continuing operations | $ | 10,568 | $ | 10,575 | $ | 8,739 | $ | 8,189 | $ | 9,212 | $ | 29,882 | $ | 22,922 | |||||||||||||
| Net income | $ | 10,574 | $ | 10,587 | $ | 8,832 | $ | 8,189 | $ | 9,106 | $ | 29,993 | $ | 26,927 | |||||||||||||
| Diluted earnings per share from continuing operations | $ | 0.81 | $ | 0.81 | $ | 0.66 | $ | 0.62 | $ | 0.69 | $ | 2.28 | $ | 1.69 | |||||||||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.81 | $ | 0.67 | $ | 0.62 | $ | 0.68 | $ | 2.29 | $ | 1.99 | |||||||||||||
| Return on average equity | 17.46% | 17.72% | 14.63% | 13.45% | 15.29% | 16.60% | 15.51% | ||||||||||||||||||||
| Return on average assets | 1.60% | 1.67% | 1.42% | 1.28% | 1.44% | 1.56% | 1.48% | ||||||||||||||||||||
| Net interest margin | 4.02% | 4.00% | 3.95% | 3.93% | 3.87% | 3.99% | 3.80% |
| ($ in thousands, except per share data) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | ||||||||||||||||||
| Net income from continuing operations (GAAP) | $ | 10,568 | $ | 10,575 | $ | 8,739 | $ | 8,189 | $ | 9,212 | $ | 29,882 | $ | 22,922 | ||||||||||
| Net income adjustments(1) | 29 | (1,326 | ) | (4 | ) | 821 | (3 | ) | (1,301 | ) | 1,182 | |||||||||||||
| Adjusted net income from continuing operations (Non-GAAP)(1) | $ | 10,597 | $ | 9,249 | $ | 8,735 | $ | 9,010 | $ | 9,209 | $ | 28,581 | $ | 24,104 | ||||||||||
| Diluted earnings per share from continuing operations (GAAP) | $ | 0.81 | $ | 0.81 | $ | 0.66 | $ | 0.62 | $ | 0.69 | $ | 2.28 | $ | 1.69 | ||||||||||
| Adjusted diluted earnings per share from continuing operations (Non-GAAP)(1) | $ | 0.81 | $ | 0.71 | $ | 0.66 | $ | 0.68 | $ | 0.69 | $ | 2.18 | $ | 1.78 |
| (1) | Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release. |
Third Quarter 2026 Financial Commentary
(All comparisons refer to the third quarter of 2025, except as noted)
Transportation Invoice and Dollar Volumes – Transportation dollar volumes increased 14.5%. The Company is experiencing rising transportation dollars processed as a result of rising contract freight rates as well as fuel surcharges. The average dollars per traditional freight invoice of $1,115 increased 17.2%. During September 2026, the average dollars per traditional freight invoice was $1,152, exceeding the full third quarter of 2026 level, suggesting that the average dollars per invoice will continue rising into the fourth quarter of 2026. Rising transportation dollar volumes positively impact the overall levels of accounts and drafts payable and payments in advance of funding, and resulting interest income and financial fees.
Facility Expense Invoice and Dollar Volumes – Facility expense invoice volumes of 4.0 million decreased 1.2%, and dollar volumes of $6.6 billion increased 5.5%. The average dollars per invoice of $1,631 increased 6.9% primarily due to rising electricity and gas prices.
Processing Fees – Processing fees decreased $763,000, or 4.6%, due to lower transportation and facility invoice volumes.
Financial Fees – Financial fees, earned on a transactional level basis for invoice payment services when making customer payments, increased $1.2 million, or 11.8%. The increase in financial fees was primarily due to an increase in average payments in advance of funding of 15.8%, in addition to rising financial interchange fees within CassPay.
Net Interest Income – Net interest income increased $1.9 million, or 8.9%. The increase in net interest income was attributable to the net interest margin improving to 4.02% as compared to 3.87%, in addition to an increase in average interest-earning assets of $105.4 million, or 4.8%.
The Company's net interest margin improvement was driven by increases in the average yield on loans and investment securities of 24 and 33 basis points, respectively, combined with a decrease in the average cost of total deposits of 24 basis points, partially offset by a decrease in the yield on short-term investments of 55 basis points.
Provision for Credit Losses – The Company recorded a release of credit losses of $211,000 during the third quarter of 2026 as compared to $193,000 in the third quarter of 2025. The release of credit losses for the third quarter of 2026 was driven by the decrease in loans as compared to June 30, 2026 of $38.3 million, or 3.5%, partially offset by the net impact to the allowance for loan losses related to a $508,000 charge-off of a nonperforming commercial real estate loan, the Company's first loan charge-off in over a decade.
Personnel Expenses – Personnel expenses increased $41,000, or 0.1%. Salaries and commissions increased $582,000, or 2.9%, as a result of merit increases and higher commission payments related to sales activities, partially offset by the decrease in average full-time equivalent employees (“FTEs”) of 6.6%. Employee profit sharing increased $271,000 due to the improvement in net income from continuing operations. Other benefits decreased $806,000, or 16.8%, due to the decrease in FTEs in addition to lower health insurance claims and related expenses.
Equipment Expense – Equipment expense increased $424,000 primarily due to an increase in depreciation and licensing and maintenance expense on software related to technology initiatives.
Other Expense – Other expense increased $880,000, or 12.1%. The increase is primarily due to higher business development costs and professional fees related to technology initiatives.
Investment Securities – Investment securities increased $65.7 million as compared to June 30, 2026. During September 2026, the Company purchased $82.0 million of U.S. Treasury and government agency securities at a weighted average rate of 4.00% and laddered maturities between November 2026 and October 2027. The Company also purchased $28.1 million of mortgage-backed securities at a weighted average rate of 5.42% during the month. The unrealized loss on investment securities increased $34.4 million to $75.3 million as compared to June 30, 2026. The Company is evaluating opportunities to deploy liquidity in a higher interest rate environment with consideration to the impact of falling bond prices on its tangible common equity ratio.
Loans – When compared to June 30, 2026, loans decreased $38.3 million, or 3.5%. The Company experienced several pay-offs within its faith-based portfolio during the quarter, some due to intentional exits of potential problem credits and others due to refinancing at other financial institutions. The Company expects loans at December 31, 2026 to be flat with September 30, 2026. The Company's 2027 and longer-term forecast for loan growth is 6-8%.
Payments in Advance of Funding – Average payments in advance of funding increased $27.8 million, or 15.8%, primarily due to a 14.5% increase in transportation dollar volumes.
Deposits – Average deposits increased $79.2 million, or 7.8%. The Company experienced growth in average CassPay deposits of $74.5 million, or 29.2%.
Accounts and Drafts Payable – Average accounts and drafts payable increased $37.0 million, or 3.1%, as compared to the third quarter of 2025. The increase in these balances, which are non-interest bearing, is primarily reflective of the increase in transportation and facility dollar volumes of 14.5% and 5.5%, respectively.
Shareholders' Equity – Total shareholders' equity decreased $18.6 million as compared to June 30, 2026 as a result of an increase in accumulated other comprehensive loss of $26.2 million and dividends of $4.1 million, partially offset by net income of $10.6 million. The increase in accumulated other comprehensive loss was due to the significant rise in long-term bond yields during the quarter.
Dividend – On October 20, 2026, the Company's Board of Directors approved a quarterly dividend of $0.34 per share with the dividend payable on December 14, 2026 to shareholders of record on December 4, 2026. This represents a $0.02, or 6.3%, increase in the quarterly dividend reflecting the Board's confidence in earnings growth.
Repurchase of Common Stock – The Company did not repurchase any of its common stock during the quarter primarily as a result of the increase in average assets of $80.8 million as compared to the second quarter of 2026, and the need to support the asset growth with capital generated from earnings. The Company manages capital with an overall objective of maintaining a leverage ratio of approximately 10.00%. Future levels of repurchases will depend on market conditions, earnings, balance sheet growth and potential acquisition opportunities.
Asset Quality – Non-performing loans totaled $1.1 million at September 30, 2026, a decrease of $537,000 as compared to June 30, 2026, largely driven by the previously mentioned loan charge-off.
Outlook – The Company is optimistic regarding its revenue outlook as a result of i) the likelihood of sustained higher interest rates which would be expected to positively impact net interest margin; ii) the impact of higher contract freight rates and fuel surcharges which should lead to higher levels of accounts and drafts payable, net interest income and financial fees; iii) increased sales activity around CassPay, which is expected to lead to growth in non-interest bearing deposits and financial fees; and iv) onboarding of new clients in Facilities.
The Company expects higher operating expense growth as it heads into the fourth quarter of 2026 and 2027 versus what was experienced through the first three quarters of 2026 due to i) resources needed to support the onboarding and support of two large new CassPay clients; ii) an increase in technology-related depreciation expense as a result of projects around AI-enabled systems being placed into production; iii) an increase in licensing and other related costs around AI-enabled and other third party software platforms; iv) an increase in profit sharing and share-based compensation expense due to forecasted improved earnings; and v) an expectation of rising benefits, primarily due to health insurance costs. While the Company believes it will continue to achieve operational efficiencies in certain areas due to technology successes, this progress may be offset short-term as a result of anticipated investments in people and resources needed to get other AI-enabled systems in place and operating at a level where the Company can continue to achieve operational efficiencies in future periods.
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 $94 billion annually on behalf of clients, and with total assets of $2.6 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Commercial 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 .
On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its Telecom Expense Management & Managed Mobility Services (“TEM”) business to Asignet USA Inc. The sale closed on June 30, 2025. The Company has applied discontinued operations accounting in accordance with FASB Accounting Standards Codification (“ASC”), Topic 205-20,“Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities sold related to the Company's TEM Business Unit as of and for the periods ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, as applicable. All financial information in this earnings release is reported on a continuing operations basis, unless otherwise noted.
About Non-GAAP Financial Measures
Certain of the financial measures and ratios the Company presents, including“adjusted net income from continuing operations,” and“adjusted diluted earnings per share from continuing operations,” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). The Company refers to these financial measures and ratios as“non-GAAP financial measures.” The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain revenue and expense items that the Company believes are not indicative of its primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. The Company believes that management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of the Company's performance. The non-GAAP financial measures the Company presents may differ from non-GAAP financial measures used by the Company's peers or other companies. The Company compensates for these differences by providing the equivalent GAAP measures whenever the Company presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing the Company's performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward Looking Information
Readers should note that, in addition to the historical information contained herein, this press release contains“forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company's expectations regarding revenue, expenses and asset growth, financial performance and profitability, loan, payments in advance of funding, accounts and drafts payable and deposit growth, changes in freight rates and energy prices, liquidity, yields and returns and asset diversification and credit management.
Forward-looking statements are typically identified by words such as“believe,”“expect,”“anticipate,”“intend,”“outlook,”“estimate,”“forecast,”“project,”“pro forma”,“pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: whether the Company's customers continue to utilize its payment processing and related services; unfavorable developments concerning customer credit quality; risks associated with lending concentrations including, but not limited to, faith-based ministries and franchise restaurants; liquidity risk; risks associated with cyber-attacks and data breaches; outcomes of litigation and other contingencies; exposure to general and local economic and market conditions; higher inflation and its impacts (including U.S. federal government measures to address higher inflation); impacts of trade and tariff policies and U.S. fiscal debt; any slowdown in global economic growth; risks associated with rapid increases or decreases in prevailing interest rates; the Company's ability to attract and retain deposits, accounts and drafts payable and access to other sources of liquidity; competition from banks, other financial institutions, freight audit and payment and utility bill management providers; the Company's ability to attract and retain key personnel; burdens imposed by federal and state regulation; changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on the Company's revenue, expenses and businesses; changes in accounting policies and practices or accounting standards; natural disasters (including wildfires and earthquakes); terrorist activities; war and geopolitical matters (including in Israel, Iran and Ukraine and the imposition of additional sanctions and export controls in connection therewith); pandemics or other health emergencies and their effects on economic and business environments in which the Company operates, including the related disruption to the financial market and other economic activity; and those factors and risks referenced from time to time in the Company's filings with the Securities and Exchange Commission (the“SEC”), including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the Company's other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company's results.
For any forward-looking statements made in this press release or in any documents, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, the Company disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.
| Consolidated Statements of Income (unaudited) | ||||||||||||||||||||||||||
| ($ and numbers in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | ||||||||||||||||||||
| Processing fees | $ | 15,892 | $ | 16,086 | $ | 15,728 | $ | 16,304 | $ | 16,655 | $ | 47,706 | $ | 49,824 | ||||||||||||
| Financial fees | 11,640 | 10,951 | 10,431 | 9,860 | 10,416 | 33,022 | 30,538 | |||||||||||||||||||
| Total fee revenue | $ | 27,532 | $ | 27,037 | $ | 26,159 | $ | 26,164 | $ | 27,071 | $ | 80,728 | $ | 80,362 | ||||||||||||
| Interest and fees on loans | 15,989 | 15,956 | 15,277 | 15,521 | 15,632 | 47,222 | 46,819 | |||||||||||||||||||
| Interest and dividends on investment securities | 7,209 | 7,079 | 6,995 | 6,767 | 5,679 | 21,283 | 14,625 | |||||||||||||||||||
| Interest on short-term investments | 3,517 | 2,570 | 2,832 | 3,078 | 3,860 | 8,919 | 10,755 | |||||||||||||||||||
| Total interest income | $ | 26,715 | $ | 25,605 | $ | 25,104 | $ | 25,366 | $ | 25,171 | $ | 77,424 | $ | 72,199 | ||||||||||||
| Interest expense | 3,823 | 4,058 | 3,888 | 3,895 | 4,151 | 11,769 | 12,431 | |||||||||||||||||||
| Net interest income | $ | 22,892 | $ | 21,547 | $ | 21,216 | $ | 21,471 | $ | 21,020 | $ | 65,655 | $ | 59,768 | ||||||||||||
| Release of (provision for) credit losses | 211 | (531 | ) | (61 | ) | 389 | 193 | (381 | ) | (737 | ) | |||||||||||||||
| (Loss) gain on sale of investment securities | (38 | ) | 5 | 5 | 38 | 4 | (28 | ) | (3,572 | ) | ||||||||||||||||
| Other | 2,099 | 1,885 | 1,782 | 1,827 | 1,768 | 5,766 | 5,039 | |||||||||||||||||||
| Total revenues | $ | 52,696 | $ | 49,943 | $ | 49,101 | $ | 49,889 | $ | 50,056 | $ | 151,740 | $ | 140,860 | ||||||||||||
| Salaries and commissions | 20,687 | 20,241 | 19,268 | 20,304 | 20,105 | 60,196 | 60,406 | |||||||||||||||||||
| Share-based compensation | 1,012 | 1,130 | 1,439 | 1,009 | 1,018 | 3,581 | 3,177 | |||||||||||||||||||
| Employee profit sharing | 1,956 | 1,959 | 1,634 | 1,514 | 1,685 | 5,549 | 4,770 | |||||||||||||||||||
| Other benefits | 3,992 | 3,755 | 4,938 | 4,602 | 4,798 | 12,685 | 14,284 | |||||||||||||||||||
| Total personnel expenses | $ | 27,647 | $ | 27,085 | $ | 27,279 | $ | 27,429 | $ | 27,606 | $ | 82,011 | $ | 82,637 | ||||||||||||
| Occupancy | 735 | 703 | 681 | 643 | 734 | 2,119 | 2,124 | |||||||||||||||||||
| Equipment | 2,937 | 2,776 | 2,432 | 2,548 | 2,513 | 8,145 | 7,369 | |||||||||||||||||||
| Amortization of intangible assets | 286 | 293 | 293 | 293 | 293 | 872 | 879 | |||||||||||||||||||
| Bad debt recovery | - | (1,759 | ) | - | - | - | (1,759 | ) | (2,000 | ) | ||||||||||||||||
| Other | 8,175 | 7,671 | 7,533 | 8,988 | 7,295 | 23,379 | 21,081 | |||||||||||||||||||
| Total operating expenses | $ | 39,780 | $ | 36,769 | $ | 38,218 | $ | 39,901 | $ | 38,441 | $ | 114,767 | $ | 112,090 | ||||||||||||
| Income from continuing operations, before income tax expense | $ | 12,916 | $ | 13,174 | $ | 10,883 | $ | 9,988 | $ | 11,615 | $ | 36,973 | $ | 28,770 | ||||||||||||
| Income tax expense | 2,348 | 2,599 | 2,144 | 1,799 | 2,403 | 7,091 | 5,848 | |||||||||||||||||||
| Net income from continuing operations | $ | 10,568 | $ | 10,575 | $ | 8,739 | $ | 8,189 | $ | 9,212 | $ | 29,882 | $ | 22,922 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | 6 | 12 | 93 | - | (106 | ) | 111 | 4,005 | ||||||||||||||||||
| Net income | $ | 10,574 | $ | 10,587 | $ | 8,832 | $ | 8,189 | $ | 9,106 | $ | 29,993 | $ | 26,927 | ||||||||||||
| Basic earnings per share from continuing operations | $.83 | $.83 | $.68 | $.63 | $.70 | $ | 2.33 | $ | 1.73 | |||||||||||||||||
| Basic earnings (loss) per share from discontinued operations | - | - | .01 | - | (.01) | .01 | .30 | |||||||||||||||||||
| Basic earnings per share | $.83 | $.83 | $.69 | $.63 | $.69 | $ | 2.34 | $ | 2.03 | |||||||||||||||||
| Diluted earnings per share from continuing operations | $.81 | $.81 | $.66 | $.62 | $.69 | $ | 2.28 | $ | 1.69 | |||||||||||||||||
| Diluted earnings (loss) per share from discontinued operations | - | - | .01 | - | (.01) | .01 | .30 | |||||||||||||||||||
| Diluted earnings per share | $.81 | $.81 | $.67 | $.62 | $.68 | $ | 2.29 | $ | 1.99 | |||||||||||||||||
| Consolidated Balance Sheets (unaudited) | |||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||
| As of | |||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | |||||||||||||||
| Assets: | |||||||||||||||||||
| Cash and cash equivalents | $ | 255,870 | $ | 228,473 | $ | 244,343 | $ | 392,268 | $ | 258,634 | |||||||||
| Investment securities available-for-sale, at fair value | 802,463 | 736,790 | 785,343 | 770,772 | 717,369 | ||||||||||||||
| Loans | 1,064,723 | 1,103,039 | 1,088,730 | 1,061,217 | 1,088,347 | ||||||||||||||
| Less: Allowance for credit losses | (13,602 | ) | (14,374 | ) | (13,861 | ) | (13,597 | ) | (14,066 | ) | |||||||||
| Loans, net | $ | 1,051,121 | $ | 1,088,665 | $ | 1,074,869 | $ | 1,047,620 | $ | 1,074,281 | |||||||||
| Payments in advance of funding | 257,706 | 249,614 | 260,624 | 164,514 | 188,040 | ||||||||||||||
| Premises and equipment, net | 29,786 | 29,848 | 29,903 | 29,449 | 30,287 | ||||||||||||||
| Investments in bank-owned life insurance | 53,670 | 53,161 | 52,670 | 52,195 | 51,700 | ||||||||||||||
| Goodwill and other intangible assets | 19,019 | 19,306 | 19,599 | 19,892 | 20,200 | ||||||||||||||
| Accounts and drafts receivable from customers | 4,999 | 44,690 | 4,950 | 69,425 | 49,798 | ||||||||||||||
| Other assets | 81,328 | 65,665 | 61,490 | 59,889 | 63,313 | ||||||||||||||
| Total assets | $ | 2,555,962 | $ | 2,516,212 | $ | 2,533,791 | $ | 2,606,024 | $ | 2,453,622 | |||||||||
| Liabilities and shareholders' equity: | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Non-interest bearing | $ | 496,255 | $ | 481,852 | $ | 406,113 | $ | 513,434 | $ | 407,169 | |||||||||
| Interest-bearing | 656,114 | 634,716 | 699,570 | 686,599 | 627,491 | ||||||||||||||
| Total deposits | $ | 1,152,369 | $ | 1,116,568 | $ | 1,105,683 | $ | 1,200,033 | $ | 1,034,660 | |||||||||
| Accounts and drafts payable | 1,131,354 | 1,028,098 | 1,000,154 | 1,124,858 | 1,130,371 | ||||||||||||||
| Short-term borrowings | - | 80,000 | 145,000 | - | - | ||||||||||||||
| Other liabilities | 46,200 | 46,882 | 41,162 | 38,135 | 45,142 | ||||||||||||||
| Total liabilities | $ | 2,329,923 | $ | 2,271,548 | $ | 2,291,999 | $ | 2,363,026 | $ | 2,210,173 | |||||||||
| Shareholders' equity: | |||||||||||||||||||
| Common stock | $ | 7,753 | $ | 7,753 | $ | 7,753 | $ | 7,753 | $ | 7,753 | |||||||||
| Additional paid-in capital | 208,061 | 206,971 | 206,807 | 207,052 | 205,925 | ||||||||||||||
| Retained earnings | 184,763 | 178,287 | 171,797 | 167,092 | 163,038 | ||||||||||||||
| Common shares in treasury, at cost | (117,437 | ) | (117,437 | ) | (114,366 | ) | (112,148 | ) | (103,835 | ) | |||||||||
| Accumulated other comprehensive loss | (57,101 | ) | (30,910 | ) | (30,199 | ) | (26,751 | ) | (29,432 | ) | |||||||||
| Total shareholders' equity | $ | 226,039 | $ | 244,664 | $ | 241,792 | $ | 242,998 | $ | 243,449 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,555,962 | $ | 2,516,212 | $ | 2,533,791 | $ | 2,606,024 | $ | 2,453,622 |
| Consolidated Financial Summary (unaudited) | |||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||
| As of or for Three Months Ended | As of or for Nine Months Ended | ||||||||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | |||||||||||||||||||||
| LOAN PORTFOLIO | |||||||||||||||||||||||||||
| Commercial & Industrial: | |||||||||||||||||||||||||||
| Franchise | $ | 250,370 | $ | 231,520 | $ | 233,088 | $ | 235,718 | $ | 249,855 | $ | 250,370 | $ | 249,855 | |||||||||||||
| Leases | 137,013 | 128,531 | 123,914 | 119,186 | 123,601 | 137,013 | 123,601 | ||||||||||||||||||||
| Other | 206,111 | 235,031 | 220,863 | 198,194 | 196,273 | 206,111 | 196,273 | ||||||||||||||||||||
| Commercial Real Estate: | |||||||||||||||||||||||||||
| Faith-Based | 359,031 | 395,521 | 396,758 | 397,608 | 407,074 | 359,031 | 407,074 | ||||||||||||||||||||
| Other | 112,198 | 112,436 | 114,107 | 110,511 | 111,544 | 112,198 | 111,544 | ||||||||||||||||||||
| Total loans | $ | 1,064,723 | $ | 1,103,039 | $ | 1,088,730 | $ | 1,061,217 | $ | 1,088,347 | $ | 1,064,723 | $ | 1,088,347 | |||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||||||||
| Interest-earning assets | $ | 2,294,778 | $ | 2,199,091 | $ | 2,214,838 | $ | 2,207,672 | $ | 2,189,384 | $ | 2,236,529 | $ | 2,128,428 | |||||||||||||
| Loans | 1,075,606 | 1,090,796 | 1,066,371 | 1,081,819 | 1,095,412 | 1,077,625 | 1,110,227 | ||||||||||||||||||||
| Investment securities | 768,095 | 761,707 | 777,777 | 755,004 | 667,271 | 769,157 | 612,398 | ||||||||||||||||||||
| Short-term investments | 403,057 | 305,759 | 339,667 | 334,824 | 382,250 | 349,726 | 354,981 | ||||||||||||||||||||
| Payments in advance of funding | 203,543 | 210,387 | 176,987 | 175,009 | 175,705 | 197,070 | 175,170 | ||||||||||||||||||||
| Assets | 2,627,423 | 2,546,593 | 2,523,860 | 2,529,068 | 2,499,914 | 2,566,338 | 2,437,278 | ||||||||||||||||||||
| Non-interest bearing deposits | 468,412 | 432,183 | 421,702 | 421,548 | 406,241 | 440,937 | 401,497 | ||||||||||||||||||||
| Interest-bearing deposits | 627,426 | 642,892 | 648,261 | 614,165 | 610,403 | 639,450 | 618,114 | ||||||||||||||||||||
| Short-term borrowings | 174 | 9,967 | 4,067 | 609 | 11 | 4,722 | 11 | ||||||||||||||||||||
| Accounts and drafts payable | 1,246,398 | 1,178,774 | 1,172,102 | 1,214,865 | 1,209,416 | 1,199,364 | 1,141,535 | ||||||||||||||||||||
| Shareholders' equity | $ | 240,242 | $ | 239,614 | $ | 244,850 | $ | 241,525 | $ | 236,208 | $ | 241,551 | $ | 232,107 | |||||||||||||
| YIELDS (tax equivalent) 1 | |||||||||||||||||||||||||||
| Net interest margin | 4.02% | 4.00% | 3.95% | 3.93% | 3.87% | 3.99% | 3.80% | ||||||||||||||||||||
| Interest-earning assets | 4.68% | 4.74% | 4.67% | 4.63% | 4.62% | 4.69% | 4.58% | ||||||||||||||||||||
| Loans | 5.90% | 5.87% | 5.81% | 5.69% | 5.66% | 5.86% | 5.64% | ||||||||||||||||||||
| Investment securities | 3.67% | 3.72% | 3.69% | 3.59% | 3.34% | 3.69% | 3.09% | ||||||||||||||||||||
| Short-term investments | 3.46% | 3.37% | 3.38% | 3.65% | 4.01% | 3.41% | 4.05% | ||||||||||||||||||||
| Total deposits | 1.38% | 1.46% | 1.45% | 1.49% | 1.62% | 1.43% | 1.63% | ||||||||||||||||||||
| Interest-bearing deposits | 2.42% | 2.44% | 2.39% | 2.51% | 2.70% | 2.42% | 2.69% | ||||||||||||||||||||
| Interest-bearing liabilities | 2.42% | 2.49% | 2.42% | 2.51% | 2.70% | 2.44% | 2.69% | ||||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||
| Allowance for credit losses to loans | 1.28% | 1.30% | 1.27% | 1.28% | 1.29% | 1.28% | 1.29% | ||||||||||||||||||||
| Non-performing loans | $ | 1,111 | $ | 1,648 | $ | 3,139 | $ | 6,992 | $ | 7,074 | $ | 1,111 | $ | 7,074 | |||||||||||||
| Non-performing loans to total loans | 0.10% | 0.15% | 0.29% | 0.66% | 0.65% | 0.10% | 0.65% | ||||||||||||||||||||
| Net loan charge-offs to loans | 0.05% | -% | -% | -% | -% | 0.05% | -% |
1Yields are presented on a tax-equivalent basis assuming a tax rate of 21%.
| Consolidated Financial Summary (unaudited) (continued) | ||||||||||||||||||||
| (numbers in thousands) | ||||||||||||||||||||
| As of or for Three Months Ended | As of or for Nine Months Ended | |||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | ||||||||||||||
| SHARE DATA | ||||||||||||||||||||
| Weighted average common shares outstanding | 12,776 | 12,805 | 12,875 | 12,939 | 13,116 | 12,818 | 13,264 | |||||||||||||
| Weighted average common shares outstanding assuming dilution | 13,041 | 13,069 | 13,152 | 13,219 | 13,399 | 13,087 | 13,546 | |||||||||||||
| Period end common shares outstanding | 12,776 | 12,776 | 12,843 | 12,871 | 13,073 | 12,776 | 13,073 | |||||||||||||
| CAPITAL | ||||||||||||||||||||
| Common equity tier 1 ratio | 15.45% | 14.68% | 14.80% | 15.10% | 15.04% | 15.45% | 15.04% | |||||||||||||
| Total risk-based capital ratio | 16.26% | 15.52% | 15.63% | 15.95% | 15.90% | 16.26% | 15.90% | |||||||||||||
| Leverage ratio | 10.11% | 10.13% | 10.05% | 9.91% | 10.17% | 10.11% | 10.17% | |||||||||||||
| Tangible common equity ratio | 8.16% | 9.03% | 8.84% | 8.63% | 9.17% | 8.16% | 9.17% |
| Consolidated Financial Summary (unaudited) (continued) | ||||||||||||||||||||
| ($ and numbers in thousands, except average dollars per invoice and average full-time equivalent employees) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | ||||||||||||||
| TRANSPORTATION INVOICE AND DOLLAR VOLUMES | ||||||||||||||||||||
| Traditional freight $$ processed by line item: | ||||||||||||||||||||
| Linehaul/other | $ | 8,544,465 | $ | 8,012,376 | $ | 7,360,767 | $ | 7,393,950 | $ | 7,537,244 | $ | 23,917,608 | $ | 22,288,954 | ||||||
| Fuel surcharge | 1,080,606 | 1,041,950 | 653,769 | 667,507 | 711,022 | 2,776,325 | 2,126,777 | |||||||||||||
| Tariff | 142,030 | 140,913 | 187,159 | 150,013 | 181,126 | 470,102 | 423,230 | |||||||||||||
| Total | $ | 9,767,101 | $ | 9,195,239 | $ | 8,201,695 | $ | 8,211,470 | $ | 8,429,392 | $ | 27,164,035 | $ | 24,838,961 | ||||||
| Traditional freight average $$ per invoice: | ||||||||||||||||||||
| Linehaul/other | $ | 976 | $ | 924 | $ | 913 | $ | 885 | $ | 851 | $ | 938 | $ | 857 | ||||||
| Fuel surcharge | 123 | 120 | 81 | 80 | 80 | 109 | 82 | |||||||||||||
| Tariff | 16 | 16 | 23 | 18 | 20 | 18 | 16 | |||||||||||||
| Total | $ | 1,115 | $ | 1,060 | $ | 1,017 | $ | 983 | $ | 951 | $ | 1,065 | $ | 955 | ||||||
| All other Transportation $$ processed | $ | 1,280,053 | $ | 1,269,833 | $ | 1,127,447 | $ | 1,270,928 | $ | 1,221,941 | $ | 3,677,333 | $ | 3,490,947 | ||||||
| Total Transportation $$ processed | $ | 11,047,154 | $ | 10,465,072 | $ | 9,329,142 | $ | 9,482,398 | $ | 9,651,333 | $ | 30,841,368 | $ | 28,329,908 | ||||||
| Traditional freight invoices processed | 8,755 | 8,669 | 8,064 | 8,351 | 8,861 | 25,488 | 26,008 | |||||||||||||
| All other invoices processed | 40,376 | 42,120 | 40,330 | 47,872 | 44,061 | 122,826 | 128,652 | |||||||||||||
| Total Transportation invoices processed | 49,131 | 50,789 | 48,394 | 56,223 | 52,922 | 148,314 | 154,660 | |||||||||||||
| Note: To provide more meaningful information to investors, the Company changed the manner in which it is reporting transportation invoices and dollars processed by differentiating between traditional freight (truckload, less-than-truckload, ocean, air and rail) and other (parcel and final mile). Previous quarters have been restated to be consistent with current quarter presentation. | ||||||||||||||||||||
| FACILITY INVOICE AND DOLLAR VOLUMES | ||||||||||||||||||||
| Facility expense invoice volume | 4,033 | 4,018 | 4,038 | 4,058 | 4,084 | 12,089 | 12,450 | |||||||||||||
| Facility expense dollar volume | $ | 6,578,114 | $ | 5,656,647 | $ | 6,253,208 | $ | 5,686,642 | $ | 6,233,369 | $ | 18,487,969 | $ | 17,569,447 | ||||||
| Average Facility $$ per invoice | $ | 1,631 | $ | 1,408 | $ | 1,549 | $ | 1,401 | $ | 1,526 | $ | 1,529 | $ | 1,411 | ||||||
| EMPLOYEES | ||||||||||||||||||||
| Average full-time equivalent employees | 895 | 896 | 923 | 939 | 958 | 905 | 982 |
| Income from Discontinued Operations (unaudited) | |||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | |||||||||||||||
| Revenue: | |||||||||||||||||||||
| Processing fees | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 7,630 | |||||||
| Financial fees | - | - | - | - | - | - | 888 | ||||||||||||||
| Other fees | 503 | 736 | 733 | 794 | 772 | 1,972 | 2,608 | ||||||||||||||
| Gain on sale of TEM business | - | - | - | - | - | - | 3,550 | ||||||||||||||
| Total revenue | $ | 503 | $ | 736 | $ | 733 | $ | 794 | $ | 772 | $ | 1,972 | $ | 14,676 | |||||||
| Operating expense: | |||||||||||||||||||||
| Salaries and commissions | 375 | 401 | 433 | 487 | 536 | 1,209 | 6,150 | ||||||||||||||
| Share-based compensation | - | - | - | - | - | - | 28 | ||||||||||||||
| Other benefits | 41 | 72 | 72 | 90 | 183 | 185 | 1,324 | ||||||||||||||
| Total personnel expenses | $ | 416 | $ | 473 | $ | 505 | $ | 577 | $ | 719 | $ | 1,394 | $ | 7,502 | |||||||
| Occupancy | - | 21 | 23 | 24 | 23 | 44 | 384 | ||||||||||||||
| Equipment | - | - | - | 9 | 1 | - | 100 | ||||||||||||||
| Amortization of intangible assets | - | - | - | - | - | - | 19 | ||||||||||||||
| Other | 79 | 226 | 81 | 184 | 170 | 386 | 1,357 | ||||||||||||||
| Total operating expense | $ | 495 | $ | 720 | $ | 609 | $ | 794 | $ | 913 | $ | 1,824 | $ | 9,362 | |||||||
| Income (loss) from discontinued operations, before income tax expense (benefit) | $ | 8 | $ | 16 | $ | 124 | $ | - | $ | (141 | ) | $ | 148 | $ | 5,314 | ||||||
| Income tax expense (benefit) | 2 | 4 | 31 | - | (35 | ) | 37 | 1,309 | |||||||||||||
| Net income (loss) from discontinued operations | $ | 6 | $ | 12 | $ | 93 | $ | - | $ | (106 | ) | $ | 111 | $ | 4,005 |
| Reconciliation of GAAP to Non-GAAP Financial Information (unaudited) | |||||||||||||||||||||||||||
| ($ in thousands, except per share data) | |||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| 9/30/26 | 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 9/30/26 | 9/30/25 | |||||||||||||||||||||
| Net income from continuing operations (GAAP) | $ | 10,568 | $ | 10,575 | $ | 8,739 | $ | 8,189 | $ | 9,212 | $ | 29,882 | $ | 22,922 | |||||||||||||
| Adjustments: | |||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities | 38 | (5 | ) | (5 | ) | (38 | ) | (4 | ) | 28 | 3,572 | ||||||||||||||||
| Bad debt recovery | - | (1,759 | ) | - | - | - | (1,759 | ) | (2,000 | ) | |||||||||||||||||
| Restructuring expense | - | - | - | 1,131 | - | - | - | ||||||||||||||||||||
| Tax effect 1 | (9 | ) | 438 | 1 | (272 | ) | 1 | 430 | (390 | ) | |||||||||||||||||
| Adjusted net income from continuing operations (Non-GAAP) | $ | 10,597 | $ | 9,249 | $ | 8,735 | $ | 9,010 | $ | 9,209 | $ | 28,581 | $ | 24,104 | |||||||||||||
| Diluted earnings per share from continuing operations (GAAP) | $ | 0.81 | $ | 0.81 | $ | 0.66 | $ | 0.62 | $ | 0.69 | $ | 2.28 | $ | 1.69 | |||||||||||||
| Adjusted diluted earnings per share from continuing operations (Non-GAAP) | $ | 0.81 | $ | 0.71 | $ | 0.66 | $ | 0.68 | $ | 0.69 | $ | 2.18 | $ | 1.78 |
1 The tax effect is calculated using the Company's effective statutory rate of 21% plus the state tax effect.
Contact: Cass Investor Relations
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