Cass Information Systems (CASS) Q4 2000 earnings summary

Executive summary

• FY2000 net income was $7.147M vs. $6.198M in 1999; diluted EPS was $2.02 vs. $1.61.

• Loan growth, higher interest rates and a shift toward higher-yielding assets lifted net interest income; information-services processing investments supported expansion but weighed on costs.

Financial highlights

• Total interest income was $37.065M vs. $30.875M; net interest income after loan-loss provision was $31.130M vs. $26.509M.

• Noninterest income was $21.114M vs. $21.444M; noninterest expense rose 7.5% to $41.236M, including higher staffing and processing investment.

• Income before tax was $11.008M vs. $9.609M; income tax expense was $3.861M vs. $3.411M.

• Total loans rose 33.7% to $372.220M; accounts and drafts payable increased 21.2% to $302.840M at year-end.

Outlook and guidance

• Utility processing reached 1.8M invoices and over $1B in annualized invoice value by year-end; the Utility Navigator acquisition was expected to add customers and processing growth.

• Internet-based carrier-rate delivery and new freight-processing capabilities were intended to expand service features and support future growth.

• New business volume and accounts and drafts payable were expected to continue increasing in 2001.