Cass Information Systems (CASS) investor relations material

Executive summary

• Achieved record net income of $10.6 million and diluted EPS of $0.81 in Q2 2026, with adjusted net income up 18.1% and adjusted EPS up 22.4% year-over-year.

• Net revenue for Q2 2026 increased 12.5% year-over-year to $49.9 million, driven by higher net interest income and financial fees, partially offset by lower processing fees.

• Net interest margin expanded to 4.00% from 3.78% in Q2 2025, driven by higher yields and lower deposit costs.

• Transportation dollar volumes rose 7.4% and facility expense dollar volumes increased 2.6% compared to Q2 2025, despite lower invoice volumes.

• Continued strong asset quality with no loan charge-offs and a 76.4% reduction in nonperforming loans since December 2025.

Financial highlights

• Net income from continuing operations reached $10.6 million, up from $5.2 million in Q2 2025.

• Adjusted net income was $9.2 million, and adjusted diluted EPS was $0.71, both showing strong year-over-year growth.

• Net interest income increased by $2.1 million (10.6%) year-over-year, with average interest-earning assets up 5.2%.

• Total operating expenses were $36.8 million, down from $38.1 million in Q2 2025, aided by a $1.8 million bad debt recovery.

• Return on average equity reached 17.72%, up from 15.35% in Q2 2025.

Outlook and guidance

• Expects facility expense invoice volumes to increase starting Q4 2026 as new clients are onboarded.

• Anticipates overall loan growth of 6-8% for full year 2026.

• Forecasts continued growth in deposits and payments in advance of funding, supporting higher financial fees.

• Plans to maintain core expense growth under 2% year-over-year through operational efficiencies and AI-enabled systems.

• Management anticipates sufficient liquidity and capital resources to fund operations and capital expenditures of approximately $6.0 million in 2026.