Cass Information Systems, Inc. Reports 1st Quarter 2013 Earnings
Net Income Up 2% Compared to 1st Quarter of 2012
2013 1st Quarter Recap
March 31, 2013 | March 31, 2012 | % Change | ||||||||||||||
Transportation Dollar Volume | $5.4 billion | $5.4 billion | .6% | |||||||||||||
Facility Expense Dollar Volume* |
$2.6 billion | $2.7 billion | (3.8%) | |||||||||||||
Revenues | $28.4 million | $28.4 million | 0% | |||||||||||||
Net Income | $6.0 million | $5.9 million | 2.1% | |||||||||||||
Diluted Earnings per Share | $.52 | $.51 | 2.0% | |||||||||||||
*Includes Energy, Telecom and Environmental |
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The positive result was achieved in the face of strong headwinds. Transaction volume, which generates fee income, increased in the transportation, telecom and environmental sectors despite an anemic economy. That growth, however, was partially offset by lower volumes in the energy marketplace, where recent merger and acquisition activity is affecting customer retention, even as new sales remain strong.
A primary impediment to earnings growth remains a historically low
interest rate environment that continues to erode the company’s net
interest margin. In the first quarter, Cass net investment income
declined by
Operating expenses were basically unchanged from year-earlier levels.
“Considering that today’s low interest rate and slow growth environment
continues to undermine profitability, we are pleased to have posted a
modest increase in earnings in the first quarter,” said
About
Note to Investors
Certain matters set forth in this news release may contain
forward-looking statements that are provided to assist in the
understanding of anticipated future financial performance. However,
such performance involves risks and uncertainties that may cause actual
results to differ materially from those in such statements. For a
discussion of certain factors that may cause such forward-looking
statements to differ materially from the company’s actual results, see
the company’s reports filed from time to time with the
Selected Consolidated Financial Data |
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The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended March 31, 2013 and 2012: |
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Quarter |
Quarter |
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Transportation Invoice Volume | 7,344 | 6,873 | ||||||
Transportation Dollar Volume | $ | 5,415,365 | $ | 5,382,091 | ||||
Facility Expense Transaction Volume | 4,618 | 4,577 | ||||||
Facility Expense Dollar Volume | $ | 2,640,243 | $ | 2,743,528 | ||||
Payment and Processing Fees | $ | 16,576 | $ | 16,487 | ||||
Net Investment Income | 9,969 | 10,551 | ||||||
Gains on Sales of Securities | 1,453 | 966 | ||||||
Other | 436 | 430 | ||||||
Total Revenues | $ | 28,434 | $ | 28,434 | ||||
Salaries and Benefits | $ | 16,258 | $ | 15,561 | ||||
Occupancy | 609 | 532 | ||||||
Equipment | 908 | 863 | ||||||
Other | 2,614 | 3,385 | ||||||
Total Operating Expenses | $ | 20,389 | $ | 20,341 | ||||
Income from Operations before Income Tax Expense | $ | 8,045 | $ | 8,093 | ||||
Income Tax Expense | 2,013 | 2,185 | ||||||
Net Income | $ | 6,032 | $ | 5,908 | ||||
Basic Earnings per Share | $ | .53 | $ | .52 | ||||
Diluted Earnings per Share | $ | .52 | $ | .51 | ||||
Average Earning Assets | $ | 1,165,993 | $ | 1,193,752 | ||||
Net Interest Margin | 3.96% | 4.08% | ||||||
Allowance for Loan Losses to Loans | 1.62% | 1.88% | ||||||
Non-performing Loans to Total Loans | .13% | 1.11% | ||||||
Net Loan Charge-offs to Loans | .22% | .03% | ||||||
Provision for Loan Losses | $ | 200 | $ | 200 |
Source:
Casey Communications, Inc.
Kenn Entringer, 314-721-2828
kentringer@caseycomm.com