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Cass Information Systems Inc Reports Operating Results (10-Q)

August 06, 2009 | About:

Cass Information Systems Inc (CASS) filed Quarterly Report for the period ended 2009-06-30.

Cass is a leading provider of payables services and information support systems to companies throughout North America. Cass Information Systems Inc has a market cap of $298.1 million; its shares were traded at around $32.33 with a P/E ratio of 16.8 and P/S ratio of 3.2. The dividend yield of Cass Information Systems Inc stocks is 1.6%. Cass Information Systems Inc had an annual average earning growth of 23% over the past 5 years.

Highlight of Business Operations:



Three Months Ended Six Months Ended

June 30, June 30,

- -

(Dollars in thousands % %

except per share data) 2009 2008 Change 2009 2008 Change

- -



Net income $ 3,661 $ 4,566 (19.8)% $ 7,584 $ 8,585 (11.7)%

Diluted earnings per share $ .39 $ .48 (18.8)% $ .81 $ .91 (11.0)%

Return on average assets 1.61% 2.05% - 1.70% 1.94% -

Return on average equity 12.74% 17.60% - 13.52% 16.81% -

-





Three Months Ended Six Months Ended

June 30, June 30,

- -

% %

(In thousands) 2009 2008 Change 2009 2008 Change

- -



Freight Core Invoice Transaction Volume* 5,716 6,765 (15.5)% 11,111 12,737 (12.8)%

Freight Invoice Dollar Volume $3,391,822 $4,355,522 (22.1)% $6,778,562 $8,213,095 (17.5)%

Utility Transaction Volume 2,823 2,618 7.8% 5,653 5,150 9.8%

Utility Transaction Dollar Volume $2,263,404 $2,257,471 .3% $4,759,101 $4,493,361 5.9%

Payment and Processing Fees $ 12,036 $ 12,744 (5.6)% $ 23,980 $ 24,791 (3.3)%

-

*Core invoices exclude parcel shipments.



New transportation customer implementations helped offset a 22% decline in base

customer volumes as the global economic slowdown impacted the transportation

industry. As a result, freight invoice volume was down 16% and dollar volume was

down 22%. New business helped boost utility transaction volume by 8% and dollar

volume by .3% to partially offset the drop in the freight business. Overall,

payment and processing fees decreased 6% compared to the year-earlier period.



New transportation customers helped offset a 22% decline in base customer

volumes causing freight invoice volume to decline 13% and dollar volume to

decline 18% as a result of the impact of the economic recession on the

transportation industry. Conversely, utility transaction volume was up 10% while

dollar volume increased 6% for the First Half of 2009. The net effect was a 3%

decrease in overall payment and processing fees compared to the First Half of

2008.





Three Months Ended Six Months Ended

June 30, June 30,

- -

% %

(Dollars in thousands) 2009 2008 Change 2009 2008 Change

- -



Average earnings assets $ 831,669 $ 803,611 3.5% $ 817,884 $ 801,903 2.0%

Average interest-bearing liabilities 254,383 142,797 78.1% 228,881 152,546 50.0%

Net interest income* 10,410 11,163 (6.7)% 20,932 21,865 (4.3%)

Net interest margin* 5.02% 5.59% - 5.16% 5.48% -

Yield on earning assets* 5.64% 5.94% - 5.72% 5.97% -

Rate on interest bearing liabilities 2.02% 2.00% - 2.00% 2.56% -

- -

*Presented on a tax-equivalent basis assuming a tax rate of 35%.



Provision charged to expense 300 650 700 1,100

Loans charged off 0 844 254 1,335

Recoveries on loans previously charged off 44 27 78 45

-

Net loans (recovered) charged-off (44) 817 176 1,290

Allowance at end of period $ 6,975 $ 6,090 $ 6,975 $ 6,090

-

Loans outstanding:

Average $ 609,826 $ 557,406 $ 601,078 $ 530,802

June 30 610,769 570,414 610,769 570,414

Ratio of allowance for loan losses to loans outstanding:

Average 1.14% 1.09% 1.16% 1.15%

June 30 1.14 1.07 1.14 1.07

Nonperforming loans:

Nonaccrual loans $ 1,411 $ 2,919 $ 1,411 $ 2,919

Loans past due 90 days or more - 346 - 346

Renegotiated loans 556 - 556 -

-

Total nonperforming loans $ 1,967 $ 3,265 $ 1,967 $ 3,265

Foreclosed assets 2,177 1,388 2,177 1,388

-

Nonperforming loans as percentage of average loans .32% .59% .33% .62%

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Read the The complete Report

Rating: 2.3/5 (4 votes)

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