CASS

Cass Information Systems came into Q3 2026 with a reputation as a steady, dividend-paying financial processor, not a drama stock. Then the numbers hit. Basic EPS landed at US$0.83 on revenue of US$56.3m, another quarter of solid profit for a relatively niche billing and payments specialist. The immediate reaction told a different story. The share price jumped 5.1% to US$57.67 in the first full session after the release, a move that suggests investors raised their view of the earnings power more than the headline growth indicates. Like the stability Cass Information Systems brings with recurring payments revenue but want a wider set of options with similar financial resilience and income appeal? Explore a curated list of peers with robust balance sheets and fundamentals through our list of solid balance sheet and fundamentals stocks (26 results). - Revenue (Q3 2026 vs. Q3 2025): US$56.3m vs. US$54.0m (single digit increase in quarterly revenue). - Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): US$10.6m vs. US$9.2m (year on year earnings improvement). - Basic EPS (Q3 2026 vs. Q3 2025): US$0.83 vs. US$0.70 (higher earnings per share for the quarter). - Net Margin, Trailing 12 Months (latest vs. prior year): 17.5% vs. 13.3% (profitability ratio increased over the last year). Ask Charlie which margin driver really powered Cass Information Systems. Cass Information Systems is often framed as a steady infrastructure style operator, and recent figures broadly support that view. Revenue and net income both moved higher year on year, while trailing 12 month net margin stepped up from 13.3% to 17.5%. That kind of margin progression fits a thesis built on recurring processing fees and disciplined cost control. The 5.1% share price move after results suggests the market read these numbers as confirmation that the billing and payments engine is still doing its job. Concerns that Cass Information Systems might be too sleepy or at risk of pressure from faster growing fintech rivals find less support in this set of results. Earnings per share advanced from US$0.70 to US$0.83 while margin improved, which pushes back on fears of erosion in the core processing franchise. Recent 30 and 90 day returns a bit above 5% and 6% do not point to distressed sentiment. In the near term, the financials look more like a slow compounder than a broken hybrid fintech bank model. Access the analyst estimates for Cass Information Systems to see where the consensus models start to diverge on Cass Information Systems, and to assess whether the calm share price today masks a sharper inflection point in the next few years. Cass Information Systems reports that consistent dividends and improved profitability can influence valuations. The real opportunity could be finding companies where current business progress is not fully reflected in the share price. - Company 1 - 35% below our estimate - expand an advisory platform shifting revenue toward capital markets and private capital mandates for higher fee transactions. - Company 2 - 50% below our estimate - reshape earnings by leaning into fee based services and partnership driven cost synergies while managing lending margin pressure. - Company 3 - 23% below our estimate - add manufacturing capacity for AI driven data center optics and higher value photonics programs as customer demand consolidates. Three companies from the same screener. Open the full list of 30 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CASS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Cass Information Systems (CASS) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.25%. A quarter ago, it was expected that this invoice and payment management company would post earnings of $0.72 per share when it actually produced earnings of $0.71, delivering a surprise of -1.39%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Cass, which belongs to the Zacks Computer - Services industry, posted revenues of $52.7 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.77%. This compares to year-ago revenues of $50.06 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cass shares have added about 32.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While Cass has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cass was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.82 on $52.84 million in revenues for the coming quarter and $2.98 on $204.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. PDF Solutions (PDFS), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 5. This provider of software and services for semiconductor makers is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +36%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PDF Solutions' revenues are expected to be $68.76 million, up 20.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cass Information Systems, Inc (CASS) : Free Stock Analysis Report PDF Solutions, Inc. (PDFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ST. LOUIS, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Cass Information Systems, Inc. (Nasdaq: CASS) (the Company or Cass) today reported its third quarter 2026 earnings. Strong year-over-year growth in net income and EPS Continued net interest margin expansion Third Quarter Financial Highlights (All comparisons refer to the third quarter of 2025, except as noted) - Net income and diluted earnings per share of $10.6 million and $0.81, respectively, increases of 16.1% and 19.1%, respectively. - Return on average equity of 17.46%. - Increase in net interest margin to 4.02% compared to 3.87%. - Increase in net interest income of $1.9 million, or 8.9%. - Increase in financial fees of $1.2 million, or 11.8%. - Increase in total revenues of $2.6 million, or 5.3%. - Increase in transportation dollar volumes of 14.5%. - Increase in average deposits of $79.2 million, or 7.8%. - Increased quarterly dividend by $0.02 to $0.34 per share for the fourth quarter of 2026. Martin Resch, the Company's President and Chief Executive Officer, noted, "We are pleased with our third quarter financial results, reflecting continued profitability growth throughout all of our lines of business." Resch added, "Recent CassPay and Facilities client wins, combined with higher transportation and facility dollar volumes, present us with an enviable outlook for continued growth in assets, net interest income and financial fees in coming quarters. The improved revenue outlook, when combined with additional technology enhancements designed to improve client experience and reinforce our competitive advantages, should allow for enhanced profitability for the next several quarters." Earnings for the third quarter of 2026 are summarized as follows: ($ in thousands, except per share data) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 Net income from continuing operations | $ | 10,568 | | | $ | 10,575 | | | $ | 8,739 | | | $ | 8,189 | | | $ | 9,212 | | | $ | 29,882 | | | $ | 22,922 | Net income | $ | 10,574 | | | $ | 10,587 | | | $ | 8,832 | | | $ | 8,189 | | | $ | 9,106 | | | $ | 29,993 | | | $ | 26,927 | Diluted earnings per share from continuing operations | $ | 0.81 | | | $ | 0.81 | | | $ | 0.66 | | | $ | 0.62 | | | $ | 0.69 | | | $ | 2.28 | | | $ | 1.69 | Diluted earnings per share | $ | 0.81 | | | $ | 0.81 | | | $ | 0.67 | | | $ | 0.62 | | | $ | 0.68 | | | $ | 2.29 | | | $ | 1.99 | Return on average equity | | 17.46% | | | | 17.72% | | | | 14.63% | | | | 13.45% | | | | 15.29% | | | | 16.60% | | | | 15.51% | Return on average assets | | 1.60% | | | | 1.67% | | | | 1.42% | | | | 1.28% | | | | 1.44% | | | | 1.56% | | | | 1.48% | Net interest margin | | 4.02% | | | | 4.00% | | | | 3.95% | | | | 3.93% | | | | 3.87% | | | | 3.99% | | | | 3.80% | ($ in thousands, except per share data) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 Net income from continuing operations (GAAP) | $ | 10,568 | | $ | 10,575 | | | $ | 8,739 | | | $ | 8,189 | | $ | 9,212 | | | $ | 29,882 | | | $ | 22,922 Net income adjustments(1) | | 29 | | | (1,326 | ) | | | (4 | ) | | | 821 | | | (3 | ) | | | (1,301 | ) | | | 1,182 Adjusted net income from continuing operations (Non-GAAP)(1) | $ | 10,597 | | $ | 9,249 | | | $ | 8,735 | | | $ | 9,010 | | $ | 9,209 | | | $ | 28,581 | | | $ | 24,104 Diluted earnings per share from continuing operations (GAAP) | $ | 0.81 | | $ | 0.81 | | | $ | 0.66 | | | $ | 0.62 | | $ | 0.69 | | | $ | 2.28 | | | $ | 1.69 Adjusted diluted earnings per share from continuing operations (Non-GAAP)(1) | $ | 0.81 | | $ | 0.71 | | | $ | 0.66 | | | $ | 0.68 | | $ | 0.69 | | | $ | 2.18 | | | $ | 1.78 (1) | Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release. Third Quarter 2026 Financial Commentary (All comparisons refer to the third quarter of 2025, except as noted) Transportation Invoice and Dollar Volumes – Transportation dollar volumes increased 14.5%. The Company is experiencing rising transportation dollars processed as a result of rising contract freight rates as well as fuel surcharges. The average dollars per traditional freight invoice of $1,115 increased 17.2%. During September 2026, the average dollars per traditional freight invoice was $1,152, exceeding the full third quarter of 2026 level, suggesting that the average dollars per invoice will continue rising into the fourth quarter of 2026. Rising transportation dollar volumes positively impact the overall levels of accounts and drafts payable and payments in advance of funding, and resulting interest income and financial fees. Facility Expense Invoice and Dollar Volumes – Facility expense invoice volumes of 4.0 million decreased 1.2%, and dollar volumes of $6.6 billion increased 5.5%. The average dollars per invoice of $1,631 increased 6.9% primarily due to rising electricity and gas prices. Processing Fees – Processing fees decreased $763,000, or 4.6%, due to lower transportation and facility invoice volumes. Financial Fees – Financial fees, earned on a transactional level basis for invoice payment services when making customer payments, increased $1.2 million, or 11.8%. The increase in financial fees was primarily due to an increase in average payments in advance of funding of 15.8%, in addition to rising financial interchange fees within CassPay. Net Interest Income – Net interest income increased $1.9 million, or 8.9%. The increase in net interest income was attributable to the net interest margin improving to 4.02% as compared to 3.87%, in addition to an increase in average interest-earning assets of $105.4 million, or 4.8%. The Company's net interest margin improvement was driven by increases in the average yield on loans and investment securities of 24 and 33 basis points, respectively, combined with a decrease in the average cost of total deposits of 24 basis points, partially offset by a decrease in the yield on short-term investments of 55 basis points. Provision for Credit Losses – The Company recorded a release of credit losses of $211,000 during the third quarter of 2026 as compared to $193,000 in the third quarter of 2025. The release of credit losses for the third quarter of 2026 was driven by the decrease in loans as compared to June 30, 2026 of $38.3 million, or 3.5%, partially offset by the net impact to the allowance for loan losses related to a $508,000 charge-off of a nonperforming commercial real estate loan, the Company's first loan charge-off in over a decade. Personnel Expenses – Personnel expenses increased $41,000, or 0.1%. Salaries and commissions increased $582,000, or 2.9%, as a result of merit increases and higher commission payments related to sales activities, partially offset by the decrease in average full-time equivalent employees ("FTEs") of 6.6%. Employee profit sharing increased $271,000 due to the improvement in net income from continuing operations. Other benefits decreased $806,000, or 16.8%, due to the decrease in FTEs in addition to lower health insurance claims and related expenses. Equipment Expense – Equipment expense increased $424,000 primarily due to an increase in depreciation and licensing and maintenance expense on software related to technology initiatives. Other Expense – Other expense increased $880,000, or 12.1%. The increase is primarily due to higher business development costs and professional fees related to technology initiatives. Investment Securities – Investment securities increased $65.7 million as compared to June 30, 2026. During September 2026, the Company purchased $82.0 million of U.S. Treasury and government agency securities at a weighted average rate of 4.00% and laddered maturities between November 2026 and October 2027. The Company also purchased $28.1 million of mortgage-backed securities at a weighted average rate of 5.42% during the month. The unrealized loss on investment securities increased $34.4 million to $75.3 million as compared to June 30, 2026. The Company is evaluating opportunities to deploy liquidity in a higher interest rate environment with consideration to the impact of falling bond prices on its tangible common equity ratio. Loans – When compared to June 30, 2026, loans decreased $38.3 million, or 3.5%. The Company experienced several pay-offs within its faith-based portfolio during the quarter, some due to intentional exits of potential problem credits and others due to refinancing at other financial institutions. The Company expects loans at December 31, 2026 to be flat with September 30, 2026. The Company's 2027 and longer-term forecast for loan growth is 6-8%. Payments in Advance of Funding – Average payments in advance of funding increased $27.8 million, or 15.8%, primarily due to a 14.5% increase in transportation dollar volumes. Deposits – Average deposits increased $79.2 million, or 7.8%. The Company experienced growth in average CassPay deposits of $74.5 million, or 29.2%. Accounts and Drafts Payable – Average accounts and drafts payable increased $37.0 million, or 3.1%, as compared to the third quarter of 2025. The increase in these balances, which are non-interest bearing, is primarily reflective of the increase in transportation and facility dollar volumes of 14.5% and 5.5%, respectively. Shareholders' Equity – Total shareholders' equity decreased $18.6 million as compared to June 30, 2026 as a result of an increase in accumulated other comprehensive loss of $26.2 million and dividends of $4.1 million, partially offset by net income of $10.6 million. The increase in accumulated other comprehensive loss was due to the significant rise in long-term bond yields during the quarter. Dividend – On October 20, 2026, the Company's Board of Directors approved a quarterly dividend of $0.34 per share with the dividend payable on December 14, 2026 to shareholders of record on December 4, 2026. This represents a $0.02, or 6.3%, increase in the quarterly dividend reflecting the Board's confidence in earnings growth. Repurchase of Common Stock – The Company did not repurchase any of its common stock during the quarter primarily as a result of the increase in average assets of $80.8 million as compared to the second quarter of 2026, and the need to support the asset growth with capital generated from earnings. The Company manages capital with an overall objective of maintaining a leverage ratio of approximately 10.00%. Future levels of repurchases will depend on market conditions, earnings, balance sheet growth and potential acquisition opportunities. Asset Quality – Non-performing loans totaled $1.1 million at September 30, 2026, a decrease of $537,000 as compared to June 30, 2026, largely driven by the previously mentioned loan charge-off. Outlook – The Company is optimistic regarding its revenue outlook as a result of i) the likelihood of sustained higher interest rates which would be expected to positively impact net interest margin; ii) the impact of higher contract freight rates and fuel surcharges which should lead to higher levels of accounts and drafts payable, net interest income and financial fees; iii) increased sales activity around CassPay, which is expected to lead to growth in non-interest bearing deposits and financial fees; and iv) onboarding of new clients in Facilities. The Company expects higher operating expense growth as it heads into the fourth quarter of 2026 and 2027 versus what was experienced through the first three quarters of 2026 due to i) resources needed to support the onboarding and support of two large new CassPay clients; ii) an increase in technology-related depreciation expense as a result of projects around AI-enabled systems being placed into production; iii) an increase in licensing and other related costs around AI-enabled and other third party software platforms; iv) an increase in profit sharing and share-based compensation expense due to forecasted improved earnings; and v) an expectation of rising benefits, primarily due to health insurance costs. While the Company believes it will continue to achieve operational efficiencies in certain areas due to technology successes, this progress may be offset short-term as a result of anticipated investments in people and resources needed to get other AI-enabled systems in place and operating at a level where the Company can continue to achieve operational efficiencies in future periods. About Cass Information Systems Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities and other operations. Disbursing over $94 billion annually on behalf of clients, and with total assets of $2.6 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Commercial Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000®. More information is available at www.cassinfo.com. On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its Telecom Expense Management & Managed Mobility Services ("TEM") business to Asignet USA Inc. The sale closed on June 30, 2025. The Company has applied discontinued operations accounting in accordance with FASB Accounting Standards Codification ("ASC"), Topic 205-20, "Presentation of Financial Statements – Discontinued Operations," to the assets and liabilities sold related to the Company's TEM Business Unit as of and for the periods ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, as applicable. All financial information in this earnings release is reported on a continuing operations basis, unless otherwise noted. About Non-GAAP Financial Measures Certain of the financial measures and ratios the Company presents, including "adjusted net income from continuing operations," and "adjusted diluted earnings per share from continuing operations," are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). The Company refers to these financial measures and ratios as "non-GAAP financial measures." The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain revenue and expense items that the Company believes are not indicative of its primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. The Company believes that management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of the Company's performance. The non-GAAP financial measures the Company presents may differ from non-GAAP financial measures used by the Company's peers or other companies. The Company compensates for these differences by providing the equivalent GAAP measures whenever the Company presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing the Company's performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. Forward Looking Information Readers should note that, in addition to the historical information contained herein, this press release contains "forward-looking statements" within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company's expectations regarding revenue, expenses and asset growth, financial performance and profitability, loan, payments in advance of funding, accounts and drafts payable and deposit growth, changes in freight rates and energy prices, liquidity, yields and returns and asset diversification and credit management. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "pro forma", "pipeline" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: whether the Company's customers continue to utilize its payment processing and related services; unfavorable developments concerning customer credit quality; risks associated with lending concentrations including, but not limited to, faith-based ministries and franchise restaurants; liquidity risk; risks associated with cyber-attacks and data breaches; outcomes of litigation and other contingencies; exposure to general and local economic and market conditions; higher inflation and its impacts (including U.S. federal government measures to address higher inflation); impacts of trade and tariff policies and U.S. fiscal debt; any slowdown in global economic growth; risks associated with rapid increases or decreases in prevailing interest rates; the Company's ability to attract and retain deposits, accounts and drafts payable and access to other sources of liquidity; competition from banks, other financial institutions, freight audit and payment and utility bill management providers; the Company's ability to attract and retain key personnel; burdens imposed by federal and state regulation; changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on the Company's revenue, expenses and businesses; changes in accounting policies and practices or accounting standards; natural disasters (including wildfires and earthquakes); terrorist activities; war and geopolitical matters (including in Israel, Iran and Ukraine and the imposition of additional sanctions and export controls in connection therewith); pandemics or other health emergencies and their effects on economic and business environments in which the Company operates, including the related disruption to the financial market and other economic activity; and those factors and risks referenced from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the Company's other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company's results. For any forward-looking statements made in this press release or in any documents, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, the Company disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made. Consolidated Statements of Income (unaudited) ($ and numbers in thousands, except per share data) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 Processing fees | $ | 15,892 | | | $ | 16,086 | | | $ | 15,728 | | | $ | 16,304 | | $ | 16,655 | | | $ | 47,706 | | | $ | 49,824 | Financial fees | | 11,640 | | | | 10,951 | | | | 10,431 | | | | 9,860 | | | 10,416 | | | | 33,022 | | | | 30,538 | Total fee revenue | $ | 27,532 | | | $ | 27,037 | | | $ | 26,159 | | | $ | 26,164 | | $ | 27,071 | | | $ | 80,728 | | | $ | 80,362 | | | | | | | | | | | | | | Interest and fees on loans | | 15,989 | | | | 15,956 | | | | 15,277 | | | | 15,521 | | | 15,632 | | | | 47,222 | | | | 46,819 | Interest and dividends on investment securities | | 7,209 | | | | 7,079 | | | | 6,995 | | | | 6,767 | | | 5,679 | | | | 21,283 | | | | 14,625 | Interest on short-term investments | | 3,517 | | | | 2,570 | | | | 2,832 | | | | 3,078 | | | 3,860 | | | | 8,919 | | | | 10,755 | Total interest income | $ | 26,715 | | | $ | 25,605 | | | $ | 25,104 | | | $ | 25,366 | | $ | 25,171 | | | $ | 77,424 | | | $ | 72,199 | Interest expense | | 3,823 | | | | 4,058 | | | | 3,888 | | | | 3,895 | | | 4,151 | | | | 11,769 | | | | 12,431 | Net interest income | $ | 22,892 | | | $ | 21,547 | | | $ | 21,216 | | | $ | 21,471 | | $ | 21,020 | | | $ | 65,655 | | | $ | 59,768 | Release of (provision for) credit losses | | 211 | | | | (531 | ) | | | (61 | ) | | | 389 | | | 193 | | | | (381 | ) | | | (737 | ) (Loss) gain on sale of investment securities | | (38 | ) | | | 5 | | | | 5 | | | | 38 | | | 4 | | | | (28 | ) | | | (3,572 | ) Other | | 2,099 | | | | 1,885 | | | | 1,782 | | | | 1,827 | | | 1,768 | | | | 5,766 | | | | 5,039 | Total revenues | $ | 52,696 | | | $ | 49,943 | | | $ | 49,101 | | | $ | 49,889 | | $ | 50,056 | | | $ | 151,740 | | | $ | 140,860 | Salaries and commissions | | 20,687 | | | | 20,241 | | | | 19,268 | | | | 20,304 | | | 20,105 | | | | 60,196 | | | | 60,406 | Share-based compensation | | 1,012 | | | | 1,130 | | | | 1,439 | | | | 1,009 | | | 1,018 | | | | 3,581 | | | | 3,177 | Employee profit sharing | | 1,956 | | | | 1,959 | | | | 1,634 | | | | 1,514 | | | 1,685 | | | | 5,549 | | | | 4,770 | Other benefits | | 3,992 | | | | 3,755 | | | | 4,938 | | | | 4,602 | | | 4,798 | | | | 12,685 | | | | 14,284 | Total personnel expenses | $ | 27,647 | | | $ | 27,085 | | | $ | 27,279 | | | $ | 27,429 | | $ | 27,606 | | | $ | 82,011 | | | $ | 82,637 | Occupancy | | 735 | | | | 703 | | | | 681 | | | | 643 | | | 734 | | | | 2,119 | | | | 2,124 | Equipment | | 2,937 | | | | 2,776 | | | | 2,432 | | | | 2,548 | | | 2,513 | | | | 8,145 | | | | 7,369 | Amortization of intangible assets | | 286 | | | | 293 | | | | 293 | | | | 293 | | | 293 | | | | 872 | | | | 879 | Bad debt recovery | | — | | | | (1,759 | ) | | | — | | | | — | | | — | | | | (1,759 | ) | | | (2,000 | ) Other | | 8,175 | | | | 7,671 | | | | 7,533 | | | | 8,988 | | | 7,295 | | | | 23,379 | | | | 21,081 | Total operating expenses | $ | 39,780 | | | $ | 36,769 | | | $ | 38,218 | | | $ | 39,901 | | $ | 38,441 | | | $ | 114,767 | | | $ | 112,090 | Income from continuing operations, before income tax expense | $ | 12,916 | | | $ | 13,174 | | | $ | 10,883 | | | $ | 9,988 | | $ | 11,615 | | | $ | 36,973 | | | $ | 28,770 | Income tax expense | | 2,348 | | | | 2,599 | | | | 2,144 | | | | 1,799 | | | 2,403 | | | | 7,091 | | | | 5,848 | Net income from continuing operations | $ | 10,568 | | | $ | 10,575 | | | $ | 8,739 | | | $ | 8,189 | | $ | 9,212 | | | $ | 29,882 | | | $ | 22,922 | Income (loss) from discontinued operations, net of tax | | 6 | | | | 12 | | | | 93 | | | | — | | | (106 | ) | | | 111 | | | | 4,005 | Net income | $ | 10,574 | | | $ | 10,587 | | | $ | 8,832 | | | $ | 8,189 | | $ | 9,106 | | | $ | 29,993 | | | $ | 26,927 | | | | | | | | | | | | | | Basic earnings per share from continuing operations | $ .83 | | $ .83 | | $ .68 | | $ .63 | | $ .70 | | $ | 2.33 | | | $ | 1.73 | Basic earnings (loss) per share from discontinued operations | | — | | | | — | | | .01 | | | — | | (.01) | | .01 | | .30 Basic earnings per share | $ .83 | | $ .83 | | $ .69 | | $ .63 | | $ .69 | | $ | 2.34 | | | $ | 2.03 | | | | | | | | | | | | | | Diluted earnings per share from continuing operations | $ .81 | | $ .81 | | $ .66 | | $ .62 | | $ .69 | | $ | 2.28 | | | $ | 1.69 | Diluted earnings (loss) per share from discontinued operations | | — | | | | — | | | .01 | | | — | | (.01) | | .01 | | .30 Diluted earnings per share | $ .81 | | $ .81 | | $ .67 | | $ .62 | | $ .68 | | $ | 2.29 | | | $ | 1.99 | | | | | | | | | | | | | | Consolidated Balance Sheets (unaudited) ($ in thousands) | As of | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 Assets: | | | | | | | | | Cash and cash equivalents | $ | 255,870 | | | $ | 228,473 | | | $ | 244,343 | | | $ | 392,268 | | | $ | 258,634 | Investment securities available-for-sale, at fair value | | 802,463 | | | | 736,790 | | | | 785,343 | | | | 770,772 | | | | 717,369 | Loans | | 1,064,723 | | | | 1,103,039 | | | | 1,088,730 | | | | 1,061,217 | | | | 1,088,347 | Less: Allowance for credit losses | | (13,602 | ) | | | (14,374 | ) | | | (13,861 | ) | | | (13,597 | ) | | | (14,066 | ) Loans, net | $ | 1,051,121 | | | $ | 1,088,665 | | | $ | 1,074,869 | | | $ | 1,047,620 | | | $ | 1,074,281 | Payments in advance of funding | | 257,706 | | | | 249,614 | | | | 260,624 | | | | 164,514 | | | | 188,040 | Premises and equipment, net | | 29,786 | | | | 29,848 | | | | 29,903 | | | | 29,449 | | | | 30,287 | Investments in bank-owned life insurance | | 53,670 | | | | 53,161 | | | | 52,670 | | | | 52,195 | | | | 51,700 | Goodwill and other intangible assets | | 19,019 | | | | 19,306 | | | | 19,599 | | | | 19,892 | | | | 20,200 | Accounts and drafts receivable from customers | | 4,999 | | | | 44,690 | | | | 4,950 | | | | 69,425 | | | | 49,798 | Other assets | | 81,328 | | | | 65,665 | | | | 61,490 | | | | 59,889 | | | | 63,313 | Total assets | $ | 2,555,962 | | | $ | 2,516,212 | | | $ | 2,533,791 | | | $ | 2,606,024 | | | $ | 2,453,622 | | | | | | | | | | Liabilities and shareholders' equity: | | | | | | | | | Deposits | | | | | | | | | Non-interest bearing | $ | 496,255 | | | $ | 481,852 | | | $ | 406,113 | | | $ | 513,434 | | | $ | 407,169 | Interest-bearing | | 656,114 | | | | 634,716 | | | | 699,570 | | | | 686,599 | | | | 627,491 | Total deposits | $ | 1,152,369 | | | $ | 1,116,568 | | | $ | 1,105,683 | | | $ | 1,200,033 | | | $ | 1,034,660 | Accounts and drafts payable | | 1,131,354 | | | | 1,028,098 | | | | 1,000,154 | | | | 1,124,858 | | | | 1,130,371 | Short-term borrowings | | — | | | | 80,000 | | | | 145,000 | | | | — | | | | — | Other liabilities | | 46,200 | | | | 46,882 | | | | 41,162 | | | | 38,135 | | | | 45,142 | Total liabilities | $ | 2,329,923 | | | $ | 2,271,548 | | | $ | 2,291,999 | | | $ | 2,363,026 | | | $ | 2,210,173 | | | | | | | | | | Shareholders' equity: | | | | | | | | | Common stock | $ | 7,753 | | | $ | 7,753 | | | $ | 7,753 | | | $ | 7,753 | | | $ | 7,753 | Additional paid-in capital | | 208,061 | | | | 206,971 | | | | 206,807 | | | | 207,052 | | | | 205,925 | Retained earnings | | 184,763 | | | | 178,287 | | | | 171,797 | | | | 167,092 | | | | 163,038 | Common shares in treasury, at cost | | (117,437 | ) | | | (117,437 | ) | | | (114,366 | ) | | | (112,148 | ) | | | (103,835 | ) Accumulated other comprehensive loss | | (57,101 | ) | | | (30,910 | ) | | | (30,199 | ) | | | (26,751 | ) | | | (29,432 | ) Total shareholders' equity | $ | 226,039 | | | $ | 244,664 | | | $ | 241,792 | | | $ | 242,998 | | | $ | 243,449 | Total liabilities and shareholders' equity | $ | 2,555,962 | | | $ | 2,516,212 | | | $ | 2,533,791 | | | $ | 2,606,024 | | | $ | 2,453,622 | | | Consolidated Financial Summary (unaudited) ($ in thousands) | | | As of or for Three Months Ended | | As of or for Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 LOAN PORTFOLIO | | | | | | | | | | | | | Commercial & Industrial: | | | | | | | | | | | | | Franchise | $ | 250,370 | | | $ | 231,520 | | | $ | 233,088 | | | $ | 235,718 | | | $ | 249,855 | | | $ | 250,370 | | | $ | 249,855 | Leases | | 137,013 | | | | 128,531 | | | | 123,914 | | | | 119,186 | | | | 123,601 | | | | 137,013 | | | | 123,601 | Other | | 206,111 | | | | 235,031 | | | | 220,863 | | | | 198,194 | | | | 196,273 | | | | 206,111 | | | | 196,273 | Commercial Real Estate: | | | | | | | | | | | | | Faith-Based | | 359,031 | | | | 395,521 | | | | 396,758 | | | | 397,608 | | | | 407,074 | | | | 359,031 | | | | 407,074 | Other | | 112,198 | | | | 112,436 | | | | 114,107 | | | | 110,511 | | | | 111,544 | | | | 112,198 | | | | 111,544 | Total loans | $ | 1,064,723 | | | $ | 1,103,039 | | | $ | 1,088,730 | | | $ | 1,061,217 | | | $ | 1,088,347 | | | $ | 1,064,723 | | | $ | 1,088,347 | | | | | | | | | | | | | | AVERAGE BALANCES | | | | | | | | | | | | | Interest-earning assets | $ | 2,294,778 | | | $ | 2,199,091 | | | $ | 2,214,838 | | | $ | 2,207,672 | | | $ | 2,189,384 | | | $ | 2,236,529 | | | $ | 2,128,428 | Loans | | 1,075,606 | | | | 1,090,796 | | | | 1,066,371 | | | | 1,081,819 | | | | 1,095,412 | | | | 1,077,625 | | | | 1,110,227 | Investment securities | | 768,095 | | | | 761,707 | | | | 777,777 | | | | 755,004 | | | | 667,271 | | | | 769,157 | | | | 612,398 | Short-term investments | | 403,057 | | | | 305,759 | | | | 339,667 | | | | 334,824 | | | | 382,250 | | | | 349,726 | | | | 354,981 | Payments in advance of funding | | 203,543 | | | | 210,387 | | | | 176,987 | | | | 175,009 | | | | 175,705 | | | | 197,070 | | | | 175,170 | Assets | | 2,627,423 | | | | 2,546,593 | | | | 2,523,860 | | | | 2,529,068 | | | | 2,499,914 | | | | 2,566,338 | | | | 2,437,278 | Non-interest bearing deposits | | 468,412 | | | | 432,183 | | | | 421,702 | | | | 421,548 | | | | 406,241 | | | | 440,937 | | | | 401,497 | Interest-bearing deposits | | 627,426 | | | | 642,892 | | | | 648,261 | | | | 614,165 | | | | 610,403 | | | | 639,450 | | | | 618,114 | Short-term borrowings | | 174 | | | | 9,967 | | | | 4,067 | | | | 609 | | | | 11 | | | | 4,722 | | | | 11 | Accounts and drafts payable | | 1,246,398 | | | | 1,178,774 | | | | 1,172,102 | | | | 1,214,865 | | | | 1,209,416 | | | | 1,199,364 | | | | 1,141,535 | Shareholders' equity | $ | 240,242 | | | $ | 239,614 | | | $ | 244,850 | | | $ | 241,525 | | | $ | 236,208 | | | $ | 241,551 | | | $ | 232,107 | | | | | | | | | | | | | | YIELDS (tax equivalent)1 | | | | | | | | | | | | | Net interest margin | | 4.02% | | | | 4.00% | | | | 3.95% | | | | 3.93% | | | | 3.87% | | | | 3.99% | | | | 3.80% | Interest-earning assets | | 4.68% | | | | 4.74% | | | | 4.67% | | | | 4.63% | | | | 4.62% | | | | 4.69% | | | | 4.58% | Loans | | 5.90% | | | | 5.87% | | | | 5.81% | | | | 5.69% | | | | 5.66% | | | | 5.86% | | | | 5.64% | Investment securities | | 3.67% | | | | 3.72% | | | | 3.69% | | | | 3.59% | | | | 3.34% | | | | 3.69% | | | | 3.09% | Short-term investments | | 3.46% | | | | 3.37% | | | | 3.38% | | | | 3.65% | | | | 4.01% | | | | 3.41% | | | | 4.05% | Total deposits | | 1.38% | | | | 1.46% | | | | 1.45% | | | | 1.49% | | | | 1.62% | | | | 1.43% | | | | 1.63% | Interest-bearing deposits | | 2.42% | | | | 2.44% | | | | 2.39% | | | | 2.51% | | | | 2.70% | | | | 2.42% | | | | 2.69% | Interest-bearing liabilities | | 2.42% | | | | 2.49% | | | | 2.42% | | | | 2.51% | | | | 2.70% | | | | 2.44% | | | | 2.69% | | | | | | | | | | | | | | ASSET QUALITY | | | | | | | | | | | | | Allowance for credit losses to loans | | 1.28% | | | | 1.30% | | | | 1.27% | | | | 1.28% | | | | 1.29% | | | | 1.28% | | | | 1.29% | Non-performing loans | $ | 1,111 | | | $ | 1,648 | | | $ | 3,139 | | | $ | 6,992 | | | $ | 7,074 | | | $ | 1,111 | | | $ | 7,074 | Non-performing loans to total loans | | 0.10% | | | | 0.15% | | | | 0.29% | | | | 0.66% | | | | 0.65% | | | | 0.10% | | | | 0.65% | Net loan charge-offs to loans | | 0.05% | | | | —% | | | | —% | | | | —% | | | | —% | | | | 0.05% | | | | —% | 1 Yields are presented on a tax-equivalent basis assuming a tax rate of 21%. | | Consolidated Financial Summary (unaudited) (continued) (numbers in thousands) | | | As of or for Three Months Ended | | As of or for Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 SHARE DATA | | | | | | | | | | | | | Weighted average common shares outstanding | 12,776 | | | 12,805 | | | 12,875 | | | 12,939 | | | 13,116 | | | 12,818 | | | 13,264 | Weighted average common shares outstanding assuming dilution | 13,041 | | | 13,069 | | | 13,152 | | | 13,219 | | | 13,399 | | | 13,087 | | | 13,546 | Period end common shares outstanding | 12,776 | | | 12,776 | | | 12,843 | | | 12,871 | | | 13,073 | | | 12,776 | | | 13,073 | | | | | | | | | | | | | | CAPITAL | | | | | | | | | | | | | Common equity tier 1 ratio | 15.45% | | | 14.68% | | | 14.80% | | | 15.10% | | | 15.04% | | | 15.45% | | | 15.04% | Total risk-based capital ratio | 16.26% | | | 15.52% | | | 15.63% | | | 15.95% | | | 15.90% | | | 16.26% | | | 15.90% | Leverage ratio | 10.11% | | | 10.13% | | | 10.05% | | | 9.91% | | | 10.17% | | | 10.11% | | | 10.17% | Tangible common equity ratio | 8.16% | | | 9.03% | | | 8.84% | | | 8.63% | | | 9.17% | | | 8.16% | | | 9.17% | | | Consolidated Financial Summary (unaudited) (continued) ($ and numbers in thousands, except average dollars per invoice and average full-time equivalent employees) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 | | | | | | | | | | | | | TRANSPORTATION INVOICE AND DOLLAR VOLUMES Traditional freight $$ processed by line item: | | | | | | | | | | | | | Linehaul/other | $ | 8,544,465 | | $ | 8,012,376 | | $ | 7,360,767 | | $ | 7,393,950 | | $ | 7,537,244 | | $ | 23,917,608 | | $ | 22,288,954 Fuel surcharge | | 1,080,606 | | | 1,041,950 | | | 653,769 | | | 667,507 | | | 711,022 | | | 2,776,325 | | | 2,126,777 Tariff | | 142,030 | | | 140,913 | | | 187,159 | | | 150,013 | | | 181,126 | | | 470,102 | | | 423,230 Total | $ | 9,767,101 | | $ | 9,195,239 | | $ | 8,201,695 | | $ | 8,211,470 | | $ | 8,429,392 | | $ | 27,164,035 | | $ | 24,838,961 | | | | | | | | | | | | | Traditional freight average $$ per invoice: | | | | | | | | | | | | | Linehaul/other | $ | 976 | | $ | 924 | | $ | 913 | | $ | 885 | | $ | 851 | | $ | 938 | | $ | 857 Fuel surcharge | | 123 | | | 120 | | | 81 | | | 80 | | | 80 | | | 109 | | | 82 Tariff | | 16 | | | 16 | | | 23 | | | 18 | | | 20 | | | 18 | | | 16 Total | $ | 1,115 | | $ | 1,060 | | $ | 1,017 | | $ | 983 | | $ | 951 | | $ | 1,065 | | $ | 955 | | | | | | | | | | | | | All other Transportation $$ processed | $ | 1,280,053 | | $ | 1,269,833 | | $ | 1,127,447 | | $ | 1,270,928 | | $ | 1,221,941 | | $ | 3,677,333 | | $ | 3,490,947 Total Transportation $$ processed | $ | 11,047,154 | | $ | 10,465,072 | | $ | 9,329,142 | | $ | 9,482,398 | | $ | 9,651,333 | | $ | 30,841,368 | | $ | 28,329,908 | | | | | | | | | | | | | Traditional freight invoices processed | | 8,755 | | | 8,669 | | | 8,064 | | | 8,351 | | | 8,861 | | | 25,488 | | | 26,008 All other invoices processed | | 40,376 | | | 42,120 | | | 40,330 | | | 47,872 | | | 44,061 | | | 122,826 | | | 128,652 Total Transportation invoices processed | | 49,131 | | | 50,789 | | | 48,394 | | | 56,223 | | | 52,922 | | | 148,314 | | | 154,660 Note: To provide more meaningful information to investors, the Company changed the manner in which it is reporting transportation invoices and dollars processed by differentiating between traditional freight (truckload, less-than-truckload, ocean, air and rail) and other (parcel and final mile). Previous quarters have been restated to be consistent with current quarter presentation. | | | | | | | | | | | | | FACILITY INVOICE AND DOLLAR VOLUMES Facility expense invoice volume | | 4,033 | | | 4,018 | | | 4,038 | | | 4,058 | | | 4,084 | | | 12,089 | | | 12,450 Facility expense dollar volume | $ | 6,578,114 | | $ | 5,656,647 | | $ | 6,253,208 | | $ | 5,686,642 | | $ | 6,233,369 | | $ | 18,487,969 | | $ | 17,569,447 Average Facility $$ per invoice | $ | 1,631 | | $ | 1,408 | | $ | 1,549 | | $ | 1,401 | | $ | 1,526 | | $ | 1,529 | | $ | 1,411 | | | | | | | | | | | | | EMPLOYEES Average full-time equivalent employees | | 895 | | | 896 | | | 923 | | | 939 | | | 958 | | | 905 | | | 982 Income from Discontinued Operations (unaudited) ($ in thousands) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 Revenue: | | | | | | | | | | | | | Processing fees | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | 7,630 Financial fees | | — | | | — | | | — | | | — | | | — | | | | — | | | 888 Other fees | | 503 | | | 736 | | | 733 | | | 794 | | | 772 | | | | 1,972 | | | 2,608 Gain on sale of TEM business | | — | | | — | | | — | | | — | | | — | | | | — | | | 3,550 Total revenue | $ | 503 | | $ | 736 | | $ | 733 | | $ | 794 | | $ | 772 | | | $ | 1,972 | | $ | 14,676 | | | | | | | | | | | | | Operating expense: | | | | | | | | | | | | | Salaries and commissions | | 375 | | | 401 | | | 433 | | | 487 | | | 536 | | | | 1,209 | | | 6,150 Share-based compensation | | — | | | — | | | — | | | — | | | — | | | | — | | | 28 Other benefits | | 41 | | | 72 | | | 72 | | | 90 | | | 183 | | | | 185 | | | 1,324 Total personnel expenses | $ | 416 | | $ | 473 | | $ | 505 | | $ | 577 | | $ | 719 | | | $ | 1,394 | | $ | 7,502 Occupancy | | — | | | 21 | | | 23 | | | 24 | | | 23 | | | | 44 | | | 384 Equipment | | — | | | — | | | — | | | 9 | | | 1 | | | | — | | | 100 Amortization of intangible assets | | — | | | — | | | — | | | — | | | — | | | | — | | | 19 Other | | 79 | | | 226 | | | 81 | | | 184 | | | 170 | | | | 386 | | | 1,357 Total operating expense | $ | 495 | | $ | 720 | | $ | 609 | | $ | 794 | | $ | 913 | | | $ | 1,824 | | $ | 9,362 Income (loss) from discontinued operations, before income tax expense (benefit) | $ | 8 | | $ | 16 | | $ | 124 | | $ | — | | $ | (141 | ) | | $ | 148 | | $ | 5,314 Income tax expense (benefit) | | 2 | | | 4 | | | 31 | | | — | | | (35 | ) | | | 37 | | | 1,309 Net income (loss) from discontinued operations | $ | 6 | | $ | 12 | | $ | 93 | | $ | — | | $ | (106 | ) | | $ | 111 | | $ | 4,005 Reconciliation of GAAP to Non-GAAP Financial Information (unaudited) ($ in thousands, except per share data) | Three Months Ended | | Nine Months Ended | 9/30/26 | | 6/30/26 | | 3/31/26 | | 12/31/25 | | 9/30/25 | | 9/30/26 | | 9/30/25 Net income from continuing operations (GAAP) | $ | 10,568 | | | $ | 10,575 | | | $ | 8,739 | | | $ | 8,189 | | | $ | 9,212 | | | $ | 29,882 | | | $ | 22,922 | Adjustments: | | | | | | | | | | | | | Loss (gain) on sale of investment securities | | 38 | | | | (5 | ) | | | (5 | ) | | | (38 | ) | | | (4 | ) | | | 28 | | | | 3,572 | Bad debt recovery | | — | | | | (1,759 | ) | | | — | | | | — | | | | — | | | | (1,759 | ) | | | (2,000 | ) Restructuring expense | | — | | | | — | | | | — | | | | 1,131 | | | | — | | | | — | | | | — | Tax effect1 | | (9 | ) | | | 438 | | | | 1 | | | | (272 | ) | | | 1 | | | | 430 | | | | (390 | ) Adjusted net income from continuing operations (Non-GAAP) | $ | 10,597 | | | $ | 9,249 | | | $ | 8,735 | | | $ | 9,010 | | | $ | 9,209 | | | $ | 28,581 | | | $ | 24,104 | Diluted earnings per share from continuing operations (GAAP) | $ | 0.81 | | | $ | 0.81 | | | $ | 0.66 | | | $ | 0.62 | | | $ | 0.69 | | | $ | 2.28 | | | $ | 1.69 | Adjusted diluted earnings per share from continuing operations (Non-GAAP) | $ | 0.81 | | | $ | 0.71 | | | $ | 0.66 | | | $ | 0.68 | | | $ | 0.69 | | | $ | 2.18 | | | $ | 1.78 | 1 The tax effect is calculated using the Company's effective statutory rate of 21% plus the state tax effect. Contact: Cass Investor Relations [email protected]

Cass Information Systems CFO Mike Normile reveals how rising freight rates, fuel surcharges, and higher interest rates fueled a 19% increase in earnings per share for Q3. He details the impact of market shifts on their financial performance and discusses strategic investments in AI and technology for future competitiveness. Discover how Cass thrives in today's changing supply chain finance landscape. Cass Information Systems reported third-quarter net income of $10.6 million, or $0.81 per share, with earnings per share up 19% year over year, driven by higher freight rates, fuel surcharges, and elevated interest rates. Transportation dollar volumes climbed 14.5% compared to the same quarter last year, signaling a meaningful recovery for the freight payment and analytics company after an extended period of near-zero interest rates and a prolonged freight recession. "We lived with 0% interest rates and a freight recession now for a while," said Mike Normile, executive vice president and CFO of Cass Information Systems. "Coming out of that, you can see the earnings power that Cass has." Normile broke down what is driving higher invoice values: the average dollar amount per traditional freight invoice rose roughly $150 compared to the third quarter of the prior year. Of that increase, approximately $40 per invoice — about 25% of the total gain — was attributable to fuel surcharges, with the remainder reflecting contract rates repricing in a higher-rate environment. "Fuel surcharge was a big factor there — it was about 25% of the total," Normile said. "The rest was just contract rates repricing in a higher environment." The momentum appears to be building into the fourth quarter. September's average invoice was higher than the full third-quarter average, Normile noted, and because Cass processes invoices on a 30-to-45-day lead before payment, rising rates continue to flow through the company's revenue in the form of higher payment float and financial fees. Clients typically fund invoices five to seven days before they are due, giving Cass a spread it can invest in short- and longer-term instruments. That funding dynamic is central to Cass's interest income story. Unlike traditional banks, 70% of Cass's funding is non-interest-bearing — largely payment float from clients. With the 10-year Treasury above 5%, Normile said the company is able to generate a significantly wider spread on that float than it could in a near-zero-rate environment, pushing the company's net interest margin above 4%. His personal view is that rates will stay "higher for longer," which he said would allow Cass to continue expanding that margin. When rates are elevated, Cass invests longer-term to protect itself against a future rate decline. Cass is reinvesting the revenue tailwind into technology, including AI-enabled data extraction systems. Normile said the company has seen considerable success applying AI on the facility-payment side and is now committing more resources to the freight side, which he described as more complex. The company also raised its dividend in the fourth quarter — more than the usual increment — which Normile said reflects management's and the board's confidence in continued earnings growth. Looking ahead, he said the primary focus is onboarding new clients won on the Cass Pay platform so their invoice volumes begin flowing through the company's processing pipes and expanding the revenue base. - Cass Q3 EPS rose 19% to $0.81 per share, with transportation dollar volumes up 14.5% on higher freight rates and fuel surcharges. - Average freight invoice value increased ~$150 year over year; roughly $40 — about 25% — came from fuel surcharges alone. - With 70% non-interest-bearing funding and the 10-year Treasury above 5%, Cass's net interest margin topped 4% and CFO expects rates to stay higher for longer. This Summary is generated thanks to a transcription of the interview, for the full interview please enjoy the video above. The post Cass Q3 Earnings Soar: 19% EPS Growth & Freight Market Boom appeared first on FreightWaves.

Wall Street expects a year-over-year increase in earnings on higher revenues when Cass Information Systems (CASS) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This invoice and payment management company is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +15.9%. Revenues are expected to be $52.29 million, up 4.5% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cass, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.89%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Cass will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cass would post earnings of $0.72 per share when it actually produced earnings of $0.71, delivering a surprise of -1.39%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cass doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cass Information Systems, Inc (CASS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cass Information Systems (CASS) came out with quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.39%. A quarter ago, it was expected that this invoice and payment management company would post earnings of $0.63 per share when it actually produced earnings of $0.66, delivering a surprise of +4.76%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Cass, which belongs to the Zacks Computer - Services industry, posted revenues of $49.94 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.1%. This compares to year-ago revenues of $44.4 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cass shares have added about 26.5% since the beginning of the year versus the S&P 500's gain of 9.6%. While Cass has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cass was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $52.36 million in revenues for the coming quarter and $3.00 on $205.57 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Services is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CACI International (CACI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This defense contractor is expected to post quarterly earnings of $7.34 per share in its upcoming report, which represents a year-over-year change of -12.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CACI International's revenues are expected to be $2.71 billion, up 17.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cass Information Systems, Inc (CASS) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record level of quarterly net income and EPS Continued net interest margin expansion Strong expense control ST. LOUIS, July 23, 2026 (GLOBE NEWSWIRE) -- Cass Information Systems, Inc. (Nasdaq: CASS) (the Company or Cass) today reported its second quarter 2026 earnings. Second Quarter Financial Highlights Record net income and diluted earnings per share of $10.6 million and $0.81, respectively. Adjusted net income and adjusted diluted earnings per share from continuing operations (non-GAAP) of $9.2 million and $0.71, respectively, increases of 18.1% and 22.4%, respectively, compared to the second quarter of 2025. Increase in net interest margin to 4.00% compared to 3.78% in the second quarter of 2025. Increase in transportation dollar volumes of 7.4% compared to the second quarter of 2025. Decrease in personnel expenses of 2.4% compared to the second quarter of 2025. Continued strong asset quality with no loan charge-offs and an allowance for credit losses to loans ratio of 1.30%. In addition, reduced non-performing loans by $5.3 million, or 76.4%, as compared to December 31, 2025. Received a bad debt recovery of $1.8 million. Repurchased 65,557 shares of Company stock at a weighted average price of $46.23. Martin Resch, the Company’s President and Chief Executive Officer, noted, “Our record quarterly earnings reflect continued successful execution against our financial objectives.” Resch added, “The current market conditions, including higher freight rates and a sustained higher interest rate environment, present meaningful support to our earnings outlook. These tailwinds, combined with new business wins and expense discipline, should position Cass well for continued core earnings growth in coming quarters." Earnings for the second quarter of 2026 are summarized as follows: (1) Refer to explanation of use of non-GAAP financial measures and reconciliation of adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations as presented later in this earnings release. Second Quarter 2026 Financial Commentary (All comparisons refer to the second quarter of 2025, except as noted) Transportation Invoice and Dollar Volumes – Despite transportation invoice volumes of 8.7 million decreasing 1.9%, transportation dollar volumes of $10.1 billion increased 7.4%. The average dollars per invoice were $1,161 in the second quarter of 2026, compared to $1,115 in the first quarter of 2026 and $1,060 in the second quarter of 2025. Dollars per invoice increased due to an increase in overall freight rates, as well as the impact of fuel surcharges. The Company expects average dollars per invoice to continue increasing in future quarters due to the anticipated upward repricing of contract freight rates. A more detailed analysis of Cass Freight Index® changes can be found at www.cassinfo.com. Facility Expense Invoice and Dollar Volumes – Facility expense invoice volumes of 4.0 million decreased 3.0%, and dollar volumes of $5.7 billion, increased 2.6%. The Company expects invoice volumes to increase on a quarter over prior year quarter basis beginning in the fourth quarter of 2026 as new clients are onboarded. Dollar volumes are expected to continue increasing compared to prior year quarters due to rising electricity and gas prices. Processing Fees – Processing fees decreased $614,000, or 3.7%, due to lower transportation and facility invoice volumes. Financial Fees – Financial fees, earned on a transactional level basis for invoice payment services when making customer payments, increased $790,000, or 7.8%. The increase in financial fees was primarily due to an increase in average payments in advance of funding of 19.4%. Rising freight rates, combined with higher demand for the Company’s early payment and other financial solutions, are expected to continue to drive an increase in payments in advance of funding and resulting financial fees in future quarters. Net Interest Income – Net interest income increased $2.1 million, or 10.6%. The increase in net interest income was attributable to the net interest margin improving to 4.00% as compared to 3.78%, in addition to an increase in average interest-earning assets of $108.7 million, or 5.2%. The Company’s net interest margin improvement was driven by increases in the average yield on loans and investment securities of 23 and 70 basis points, respectively, combined with a decrease in the average cost of total deposits of 20 basis points, partially offset by a decrease in the yield on short-term investments of 66 basis points. The increase in loan yield was driven by the continued maturity and subsequent re-pricing of fixed rate loans originated in the years 2021 and 2022 to current market interest rates. The increase in the investment securities yield was driven by the partial repositioning of the portfolio at the end of the second quarter of 2025 as well as purchases of investments at current market rates. The decline in the cost of total deposits and yield on short-term investments was driven by the reduction in the federal funds rate. The Company expects continued expansion in its net interest margin in future quarters to the extent 3-5 year U.S. Treasury interest rates stay relatively consistent or increase as compared to current levels. Provision for Credit Losses - The Company recorded a provision for credit losses of $531,000 during the second quarter of 2026 as compared to $25,000 in the second quarter of 2025. The provision for credit losses for the second quarter of 2026 was driven by loan growth as well as a specific reserve on a nonperforming commercial real estate loan. Personnel Expenses - Personnel expenses decreased $667,000, or 2.4%, as compared to the second quarter of 2025. Salaries and commissions decreased $397,000, or 1.9%, as a result of the decrease in average full-time equivalent employees (“FTEs”) of 9.0% due to automation and the ongoing consolidation within our Facilities division, partially offset by merit increases. Share-based compensation and employee profit sharing increased $212,000 and $376,000, respectively, due to the improvement in net income from continuing operations. Other benefits decreased $858,000, or 18.6%, due to the decrease in FTEs in addition to lower health insurance claims and related expenses. Salaries and commissions increased $973,000, or 5.0%, as compared to the first quarter of 2026 due to merit increases effective April 1, 2026, an increase in severance costs of $160,000 and one additional payroll day, partially offset by a 2.9% decrease in average FTEs. Equipment Expense - Equipment expense increased $214,000 primarily due to an increase in depreciation and licensing and maintenance expense on software related to technology initiatives. Bad Debt Recovery - The Company recorded a bad debt recovery of $1.8 million related to the second annual payment in a litigation settlement. There are three annual payments remaining of $1.25 million each, plus interest. Other Expense - Other expense increased $828,000, or 12.1%. The increase is primarily due to higher business development costs and professional fees. Loans - When compared to December 31, 2025, loans increased $41.8 million, or 3.9%. Other commercial and industrial loans have increased $38.0 million year-to-date due to organic growth and higher line utilization. The Company continues to expect loan growth of 6-8% for full year 2026. Payments in Advance of Funding – Average payments in advance of funding increased $34.2 million, or 19.4%, primarily due to a 7.4% increase in transportation dollar volumes and a higher level of demand for the Company’s early payment and other financial solutions. Deposits – Average deposits increased $66.1 million, or 6.6%. The Company experienced growth in average CassPay deposits of $43.4 million, or 18.0%, as compared to the second quarter of 2025. Accounts and Drafts Payable - Average accounts and drafts payable increased $56.0 million, or 5.0%, as compared to the second quarter of 2025. The increase in these balances, which are non-interest bearing, is primarily reflective of the increase in transportation and facility dollar volumes of 7.4% and 2.6%, respectively. Short-term Borrowings - The Company had outstanding borrowings of $80.0 million on its lines of credit at June 30, 2026 to provide funding for higher balances of payments in advance of funding and accounts and drafts receivable from customers at quarter end. Average short-term borrowings during the second quarter of 2026 were $10.0 million. Shareholders’ Equity - Total shareholders’ equity increased $2.9 million as compared to March 31, 2026 as a result of net income of $10.6 million, partially offset by the repurchase of Company stock of $3.0 million and dividends of $4.1 million. Dividend - On July 21, 2026, the Company’s Board of Directors approved a quarterly dividend of $0.32 per share with the dividend payable on September 14, 2026 to shareholders of record on September 4, 2026. Repurchase of Common Stock - The Company repurchased 65,557 shares of common stock during the current quarter. The Company manages capital with an overall objective of maintaining a leverage ratio of approximately 10.00%. Future levels of repurchases will depend on market conditions, earnings, balance sheet growth and potential acquisition opportunities. Asset Quality - Non-performing loans totaled $1.6 million at June 30, 2026, a decrease of $1.5 million as compared to March 31, 2026. The Company has two non-performing loan relationships remaining at June 30, 2026. Outlook - The Company is optimistic regarding its revenue outlook as a result of i) the likelihood of sustained higher interest rates which would be expected to positively impact net interest margin; ii) the impact of higher contract freight rates and fuel surcharges which should lead to higher levels of accounts and drafts payable, net interest income and financial fees; iii) increased sales activity around early payment solutions within Transportation which generates financial fees: iv) organic loan growth opportunities; and v) increased sales activity around non-interest bearing CassPay deposits. In addition, the Company expects to be able to hold quarter over prior year quarter core expense growth to under 2% as a result of the continued focus on AI-enabled systems and other operational efficiency opportunities. While transaction growth in its Transportation and Facility businesses remains a challenge, the Company believes that recent technology investments into AI-enabled systems and a higher level of focus on business development positions the Company for better success in client growth in the mid-term. About Cass Information Systems Cass Information Systems, Inc. is a leading provider of integrated information and payment management solutions. Cass enables enterprises to achieve visibility, control and efficiency in their supply chains, communications networks, facilities and other operations. Disbursing over $94 billion annually on behalf of clients, and with total assets of $2.5 billion, Cass is uniquely supported by Cass Commercial Bank. Founded in 1906 and a wholly owned subsidiary, Cass Commercial Bank provides sophisticated financial exchange services to the parent organization and its clients. Cass is part of the Russell 2000®. More information is available at www.cassinfo.com. On April 7, 2025, the Company signed an Asset Purchase Agreement providing for the sale of its Telecom Expense Management & Managed Mobility Services (“TEM”) business to Asignet USA Inc. The sale closed on June 30, 2025. The Company has applied discontinued operations accounting in accordance with FASB Accounting Standards Codification (“ASC”), Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities sold related to the Company's TEM Business Unit as of and for the periods ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, as applicable. All financial information in this earnings release is reported on a continuing operations basis, unless otherwise noted. About Non-GAAP Financial Measures Certain of the financial measures and ratios the Company presents, including “adjusted net income from continuing operations,” and “adjusted diluted earnings per share from continuing operations,” are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). The Company refers to these financial measures and ratios as “non-GAAP financial measures.” The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain revenue and expense items that the Company believes are not indicative of its primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. The Company believes that management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of the Company’s performance. The non-GAAP financial measures the Company presents may differ from non-GAAP financial measures used by the Company’s peers or other companies. The Company compensates for these differences by providing the equivalent GAAP measures whenever the Company presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing the Company’s performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables. Forward Looking Information All statements other than statements of historical fact included in this release, including without limitation the Company’s future prospects and performance, the business strategy and the plans and objectives of the Company's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate,” “could,” “should,” “would,” “likely,” “may,” “will,” “plan,” “intend,” “believes,” “expects,” “anticipates,” “projected,” and variations of these terms and similar expressions. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Actual results or business conditions may differ materially from those projected or suggested in forward-looking statements as a result of various factors including, but not limited to, those described below and in Part I, Item 1A, “Risk Factors” of our most recent Annual Report. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to general economic, market or business conditions unrelated to the Company’s operating performance, including inflation, changes in interest rates, changes in energy prices, supply chain disruptions, financial institution disruptions, geopolitical conflicts, public health emergencies and declines in consumer confidence and discretionary spending; the Company’s ability to compete with its competitors and increase market share; the Company’s ability to maintain compliance with rules and regulations applicable to our business operations and industry; increased regulatory examination scrutiny or new regulatory requirements; whether the Company’s customers continue to utilize its payment processing and related services; unfavorable developments concerning customer credit quality; risk associated with lending concentrations including, but not limited to, faith-based ministries and franchise restaurants; liquidity risk; and risks associated with cyber-attacks and data breaches. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by the Company in this release speaks only as of the date of this release. Unless required by law, the Company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. If the Company updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. Consolidated Statements of Income (unaudited) ($ and numbers in thousands, except per share data) Consolidated Balance Sheets (unaudited) ($ in thousands) Consolidated Financial Summary (unaudited) ($ in thousands) 1 Yields are presented on a tax-equivalent basis assuming a tax rate of 21%. Consolidated Financial Summary (unaudited) (continued) ($ and numbers in thousands, except average full-time equivalent employees) Income from Discontinued Operations (unaudited) ($ in thousands) Reconciliation of GAAP to Non-GAAP Financial Information (unaudited) ($ in thousands, except per share data) 1 The tax effect is calculated using the Company’s effective statutory rate of 21% plus the state tax effect. Contact: Cass Investor [email protected]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cass Information Systems (CASS), which belongs to the Zacks Computer - Services industry, could be a great candidate to consider. When looking at the last two reports, this invoice and payment management company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.51%, on average, in the last two quarters. For the last reported quarter, Cass came out with earnings of $0.66 per share versus the Zacks Consensus Estimate of $0.63 per share, representing a surprise of 4.76%. For the previous quarter, the company was expected to post earnings of $0.64 per share and it actually produced earnings of $0.68 per share, delivering a surprise of 6.25%. For Cass, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Cass currently has an Earnings ESP of +5.56%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cass Information Systems, Inc (CASS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Cass Information Systems (CASS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This invoice and payment management company is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +89.5%. Revenues are expected to be $51.02 million, up 14.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.63% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cass, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Cass will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cass would post earnings of $0.63 per share when it actually produced earnings of $0.66, delivering a surprise of +4.76%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cass doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cass Information Systems, Inc (CASS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research