CASS · Cass Information Systems, Inc.

Cass Information Systems delivered solid Q1 2026 results with net income of $8.8 million and diluted EPS of $0.67, reflecting continued momentum from net interest margin expansion to 3.95% driven by higher loan and investment yields amid fixed-rate asset repricing, partially offset by lower short-term investment yields and deposit costs. Processing fees declined 4.5% due to 3.1% lower transportation invoice volumes amid freight recession and 4.4% drop in facility volumes, though dollar volumes rose 4.5% and 7.4% respectively from higher freight rates and energy prices, boosting non-interest bearing funding. Financial fees grew 4.7% on 2.0% higher average payments in advance of funding, signaling quick-pay demand via Amplify. Personnel expenses held flat YoY despite merit increases, aided by 7.9% FTE reduction from AI automation and Facilities consolidation. Asset quality strengthened with non-performing loans down 55.1% to 0.29% of loans and no charge-offs. Balance sheet showed loan growth of 2.6% QoQ to $1.09 billion, with expected 6-8% full-year growth, and payments in advance surging 58.4% QoQ. Capital returns included $0.32 Q2 dividend and $2.9 million buyback of 64,802 shares, targeting 10% leverage. Board refresh elected John J. Drabik with Energizer CFO expertise to Audit Committee, replacing retirees without disputes; all proposals passed at annual meeting. Management highlights expense control and NIM upside from asset repricing and funding growth as key to earnings momentum.