Cass Information Systems (CASS) Q4 2002 earnings summary

Executive summary

• 2002 net income was $7.312M vs. $7.025M in 2001; payment-processing growth and $1.477M in securities gains offset lower net interest income.

• Utility processing expanded rapidly; 3.435M utility transactions represented $2.634B in invoice value, while freight processing also grew.

Financial highlights

• Net interest income after loan-loss provision fell to $28.844M from $32.250M; noninterest income rose to $28.030M from $23.243M.

• Noninterest expense increased to $46.575M from $44.729M; income before tax was $10.299M vs. $10.764M, and income tax expense was $2.987M vs. $3.739M.

• Total assets were $572.233M at year-end, down from $602.377M; loans rose to $434.689M from $381.452M.

Outlook and guidance

• Management expected cash, cash equivalents, maturing investments and operating cash flow to fund 2003 operations and capital expenditures.

• A sustained 100-bp rate decrease was projected to reduce next-12-month net interest income 3.1% and fair value of equity 5.8%; a 100-bp increase was projected to lift them 1.7% and 3.9%, respectively.