Cass Information Systems Inc: Form 10-Q for the period ended Sep 30, 2024
Filed with the SEC on Nov 7, 2024 and accepted by EDGAR at Nov 7, 2024, 16:15 ET.
Management's discussion and analysis
As filed, 49,872 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Overview
Cass Information Systems, Inc. ("Cass" or the "Company") provides payment and information processing services to large manufacturing, distribution, and retail enterprises across the United States. The Company’s services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. Cass also processes and pays facility-related invoices, which include electricity and gas as well as waste and telecommunications expenses, and is a provider of telecom expense management solutions. Cass solutions include integrated payments, a B2B payment platform for clients that require an agile fintech partner. Additionally, the Company offers a church management software solution and an on-line platform to provide generosity services for faith-based and non-profit organizations. The Company’s bank subsidiary, Cass Commercial Bank (the “Bank”), supports the Company’s payment operations. The Bank also provides banking services to its target markets, which include privately held businesses in the St. Louis metropolitan area and restaurant franchises and faith-based ministries within the United States.
In general, Cass is compensated for its information processing services through service fees, transactional level payment services, and investment of account balances generated during the payment process. Both the number of transactions processed and the dollar volume processed are therefore key metrics followed by management. The Bank earns most of its revenue from net interest income.
Various factors will influence the Company’s revenue and profitability, such as changes in the general level of interest rates, which has a significant effect on net interest income; industry-wide factors, such as the willingness of large corporations to outsource key business functions, the general level of transportation costs, deregulation of energy costs, and consolidation of telecommunication providers; and economic factors that include the general level of economic activity, the ability to hire and retain qualified staff, and the growth and quality of the Bank’s loan portfolio. For a more detailed discussion of the Company’s revenue drivers and factors that impact the Company’s results of operation and financial condition generally, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2023 Form 10-K.
Recent Industry Developments
The transportation industry continues to experience a decline in overall freight rates caused by an ongoing freight recession. The freight recession adversely affects the number of freight transactions and dollar amount of invoices processed. Partially as a result, the Company's transportation invoice and dollar volumes declined 1.5% and 7.3%, respectively during the nine months ended September 30, 2024 as compared to the same period in 2023. Transportation dollar volumes are key to the Company’s revenue as higher volumes generally lead to an increase in payment float, which generates interest income, as well as an increase in payments in advance of funding, which generates financial fees.
2024 Items of Note
Average interest-earning assets for the third quarter of 2024 declined $58.1 million, or 2.8%, as compared to the third quarter of 2023. The Company had fewer funds to invest due to the loss of approximately $100.0 million of balances in February 2024 as a result of a cyber attack experienced by large client. CassPay offers solutions such as integrated payments, a B2B payment platform for clients. The loss of CassPay balances was partially offset by an increase in facility dollar volumes of 13.4%, leading to higher average accounts and drafts payable.
Despite the decline in average interest-earning assets during the quarter, the Company’s liquidity position and balance sheet remains strong. The Company maintained average short-term investments of $338.5 million during the third quarter of 2024. In addition, all of the Company's investment securities are classified as available-for-sale and there were no outstanding borrowings at September 30, 2024.
The Company recorded bad debt expense of $6.6 million and $7.8 million for the three and nine months ended September 30, 2024, respectively on a funding receivable related to a facility client. See Note 7, "Commitments and Contingencies" for further information.
Also, on July 16, 2024, the Company approved an Amendment providing for the termination of its noncontributory defined-benefit pension plan. The Company expects to record one-time termination expenses of approximately $4.0 million to $6.0 million through operating expense related to the plan termination during the fourth quarter of 2024 as the plan liabilities are settled. The successful termination of the plan is expected to reduce run rate operating expense by approximately $1.0 million on an annual basis.
Results of Operations
The following paragraphs more fully discuss the results of operations and changes in financial condition for the three month period ended September 30, 2024 (“third quarter of 2024”) compared to the three month period ended September 30, 2023 (“third quarter of 2023”) and the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The following discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes and with the statistical information and financial data appearing in this report, as well as in the Company’s 2023 Form 10-K. Results of operations for the three month period ended September 30, 2024 are not necessarily indicative of the results to be attained for any other period.
Summary of Results
The following table summarizes the Company’s operating results:
(In thousands except per share data)
| 2024 | Third Quarter of 2023 | % Change | 2024 | Nine Months Ended September 30, 2023 | % Change | |
|---|---|---|---|---|---|---|
| Processing fees | $20,053 | $19,939 | 0.6% | $62,409 | $58,838 | 6.1% |
| Financial fees | 11,177 | 11,597 | (3.6)% | 32,582 | 34,518 | (5.6)% |
| Net interest income | 17,618 | 16,548 | 6.5% | 50,024 | 49,460 | 1.1% |
| Provision for (release of) credit loss | (140) | 125 | (212.0)% | 355 | (335) | (206.0)% |
| Other | 1,562 | 1,264 | 23.6% | 4,158 | 3,624 | 14.7% |
| Total net revenue | 50,550 | 49,223 | 2.7% | 148,818 | 146,775 | 1.4% |
| Operating expense | 46,898 | 40,063 | 17.1% | 130,362 | 119,774 | 8.8% |
| Income before income tax expense | 3,652 | 9,160 | (60.1)% | 18,456 | 27,001 | (31.6)% |
| Income tax expense | 714 | 1,766 | (59.6)% | 3,882 | 5,352 | (27.5)% |
| Net income | $2,938 | $7,394 | (60.3)% | $14,574 | $21,649 | (32.7)% |
| Diluted earnings per share | $0.21 | $0.54 | (61.1)% | $1.06 | $1.56 | (32.1)% |
| Return on average assets | 0.50% | 1.22% | — | 0.83% | 1.20% | — |
| Return on average equity | 5.04% | 13.80% | — | 8.54% | 13.64% | — |
Third quarter of 2024 compared to third quarter of 2023:
The Company recorded net revenue of $50.6 million during the three month period ended September 30, 2024, up 2.7% from the three month period ended September 30, 2023, primarily driven by higher net interest income. Operating expense increased 17.1% primarily driven by $6.6 million of bad debt expense on a funding receivable related to a facility client. Net income was $2.9 million and diluted EPS was $0.21 per share, decreases of 60.3% and 61.1% from the three month period ended September 30, 2023, respectively.
The Company posted a 0.50% return on average assets and 5.04% return on average equity.
Nine months ended September 30, 2024 compared to nine months ended September 30, 2023:
The Company recorded net revenue of $148.8 million during the nine months ended September 30, 2024, up 1.4% from the nine months ended September 30, 2023, primarily driven by higher processing fees. Operating expense increased 8.8% largely driven by $7.9 million of bad debt expense experienced during the first nine months of 2024 on a funding receivable related to a facility client. Net income was $14.6 million and diluted EPS was $1.06 per share, decreases of 32.7% and 32.1% from the nine months ended September 30, 2023, respectively.
The Company posted a 0.83% return on average assets and 8.54% return on average equity.
Fee Revenue and Other Income
The Company’s fee revenue is derived mainly from transportation and facility processing and financial fees. As the Company provides its processing and payment services, it is compensated by service fees which are typically calculated on a per-item basis, discounts received for services provided to carriers and by the accounts and drafts payable balances generated in the payment process which can be used to generate interest income. Processing volumes, average payments in advance of funding, and fee revenue were as follows:
(In thousands)
| 2024 | Third Quarter of 2023 | % Change | 2024 | Nine Months Ended September 30, 2023 | % Change | |
|---|---|---|---|---|---|---|
| Transportation invoice volume | 9,160 | 8,925 | 2.6% | 26,810 | 27,216 | (1.5)% |
| Transportation invoice dollar volume | $9,097,739 | $9,263,453 | (1.8)% | $27,118,728 | $29,243,706 | (7.3)% |
| Facility-related transaction volume 1 | 4,316 | 3,417 | 26.3% | 12,917 | 10,352 | 24.8% |
| Facility-related dollar volume 1 | $5,778,291 | $5,096,882 | 13.4% | $16,147,139 | $14,988,757 | 7.7% |
| Average payments in advance of funding | $202,976 | $234,684 | (13.5)% | $203,498 | $243,458 | (16.4)% |
| Processing fees | $20,053 | $19,939 | 0.6% | $62,409 | $58,838 | 6.1% |
| Financial fees | $11,177 | $11,597 | (3.6)% | $32,582 | $34,518 | (5.6)% |
| Other fees | $1,562 | $1,264 | 23.6% | $4,158 | $3,624 | 14.7% |
1. Includes energy, telecom and environmental.
Third quarter of 2024 compared to third quarter of 2023:
Processing fees increased $114,000, or 0.6%, primarily attributable to an increase in facility-related invoice volumes of 26.3%, partially offset by a decrease in ancillary processing fees unrelated to transaction volumes, such as implementation fees. The Company has experienced recent success in adding facility clients with high transaction volumes.
Financial fees decreased $420,000, or 3.6%, primarily attributable to a decline in transportation dollar volumes of 1.8%, in addition to changes in the manner certain vendors receive payments.
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:
Processing fees increased $3.6 million, or 6.1%, primarily attributable to an increase in facility-related invoice volumes of 24.8%. Transportation invoice volumes decreased 1.5% over the same period.
Financial fees decreased $1.9 million, or 5.6%, primarily attributable to a decline in transportation dollar volumes of 7.3%, in addition to changes in the manner certain vendors receive payments.
Net Interest Income
Net interest income is the difference between interest earned on loans, investments, and other earning assets and interest expense on deposits and other interest-bearing liabilities. Net interest income is a significant source of the Company’s revenues. The following table summarizes the changes in tax-equivalent net interest income and related factors:
(In thousands)
| 2024 | Third Quarter of 2023 | % Change | 2024 | Nine Months Ended September 30, 2023 | % Change | |
|---|---|---|---|---|---|---|
| Average earning assets | $2,001,741 | $2,059,801 | (2.8)% | $2,007,780 | $2,077,392 | (3.4)% |
| Average interest-bearing liabilities | 630,215 | 591,567 | 6.5% | 633,384 | 566,987 | 11.7% |
| Net interest income* | 17,856 | 16,805 | 6.3% | 50,744 | 50,300 | 0.9% |
| Net interest margin* | 3.55% | 3.24% | 3.38% | 3.24% | ||
| Yield on earning assets* | 4.57% | 4.13% | 4.42% | 3.98% | ||
| Cost of interest-bearing liabilities | 3.25% | 3.11% | 3.30% | 2.73% |
*Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2024 and 2023.
Third quarter of 2024 compared to third quarter of 2023:
The increase in net interest income is primarily due to the increase in the net interest margin to 3.55%, as compared to 3.24% in the same quarter last year, partially offset by the decrease in average earning assets of $58.1 million, or 2.8%. The yield on interest-earning assets increased 44 basis points from 4.13% to 4.57% while the cost of interest-bearing liabilities increased 14 basis points from 3.11% to 3.25%.
Average loans increased $26.9 million, or 2.6%, to $1.07 billion. The increase in average loans was primarily due to growth in the Company's franchise restaurant and faith-based portfolios. The average yield on loans increased 52 basis points to 5.40%.
Average investment securities decreased $112.6 million, or 16.0%, to $590.5 million. The average yield on taxable investment securities increased 26 basis points to 2.88% and the average yield on tax-exempt investment securities increased 18 basis points to 2.81% driven by purchases of investment securities at current market interest rates and maturities and sales of securities at below market interest rates.
Average short-term investments, consisting of interest-bearing deposits in other financial institutions and federal funds sold, increased $27.7 million, or 8.9%, to $338.5 million. The increase is primarily a result of the decline in average investment securities, partially offset by a decrease in average funding sources. The average yield on short-term investments decreased 8 basis points to 4.94%, primarily due to the recent decline in the Federal Funds rate of 50 basis points. The majority of these short-term investments are held at the Federal Reserve Bank.
The average balance of interest-bearing deposits increased $38.6 million, or 6.5%, to $630.2 million. Average non-interest-bearing demand deposits decreased $76.1 million, or 15.8%, to $404.4 million. The Company has experienced a migration of client funds from non-interest bearing to interest-bearing driven by the higher interest rate environment prior to the recent 50 basis point decline in the Federal Funds rate. The average rate paid on interest-bearing deposits increased 14 basis points to 3.25%.
Average accounts and drafts payable decreased $37.0 million, or 3.5%, to $1.03 billion. The decrease in average accounts and drafts payable was primarily reflective of a cyber event at a client during the first quarter of 2024, which decreased average balances by approximately $100.0 million as well as the decrease in transportation dollar volumes of 1.8%, partially offset by an increase in facility dollar volume of 13.4%.
Nine months ended September 30, 2024 compared to nine months ended September 30, 2023:
The increase in net interest income is primarily due to the increase in the net interest margin to 3.38%, as compared to 3.24% in the prior year, partially offset by the decrease in average earning assets of $69.6 million, or 3.4%. The yield on interest-earning assets increased 44 basis points from 3.98% to 4.42% while the cost of interest-bearing liabilities increased 57 basis points from 2.73% to 3.30%.
Average loans decreased $23.0 million, or 2.2%, to $1.04 billion. The decrease in average loans was primarily due to the Company opting to be more selective in booking new loans as a result of a decline in average deposits. The average yield on loans increased 47 basis points to 5.24%.
Average investment securities decreased $101.6 million, or 13.6%, to $646.1 million. The average yield on taxable investment securities increased 22 basis points to 2.82% and the average yield on tax-exempt investment securities increased 3 basis points to 2.75%. The increase in the average yield on taxable investment securities was driven by purchases of investment securities at current market interest rates and maturities and sales of securities at below market interest rates.
Average short-term investments, consisting of interest-bearing deposits in other financial institutions and federal funds sold, increased $54.9 million, or 20.8%, to $318.7 million. The increase is primarily a result of the decline in average investment securities and loans, partially offset by a decrease in average funding sources. The average yield on short-term investments increased 35 basis points to 4.99%, primarily due to higher average short-term interest rates when comparing the periods. The majority of these short-term investments are held at the Federal Reserve Bank.
The average balance of interest-bearing deposits increased $69.4 million, or 12.3%, to $633.4 million. Average non-interest-bearing demand deposits decreased $109.0 million, or 20.6%, to $419.7 million. The Company has experienced a migration of client funds from non-interest bearing to interest-bearing driven by the higher interest rate environment prior to the recent 50 basis point decline in the Federal Funds rate. The average rate paid on interest-bearing deposits increased 58 basis points to 3.30% due to higher average short-term interest rates when comparing the periods.
Average accounts and drafts payable decreased $49.4 million, or 4.6%, to $1.02 billion. The decrease in average accounts and drafts payable was primarily reflective of a cyber event experienced by a client during the first quarter of 2024, which decreased average balances approximately $100.0 million as well as the decrease in transportation dollar volumes of 7.3%, partially offset by an increase in facility dollar volumes of 7.7%.
Distribution of Assets, Liabilities and Shareholders' Equity; Interest Rate and Interest Differential
The following tables show the condensed average balance sheets for each of the periods reported, the tax-equivalent interest income and expense for each category of interest-earning assets and interest-bearing liabilities, and the average yield on such categories of interest-earning assets and the average rates paid on such categories of interest-bearing liabilities for each of the periods reported.
(In thousands)
| Average Balance Assets1 Interest-earning assets | Third Quarter of 2024 Interest Income/ Expense | Yield/ Rate | Average Balance | Third Quarter of 2023 Interest Income/ Expense | Yield/ Rate | |
|---|---|---|---|---|---|---|
| Loans2: | $1,072,824 | $14,567 | 5.40% | $1,045,967 | $12,863 | 4.88% |
| Investment securities3: | ||||||
| Taxable | 430,242 | 3,114 | 2.88% | 518,954 | 3,429 | 2.62% |
| Tax-exempt4 | 160,211 | 1,131 | 2.81% | 184,110 | 1,220 | 2.63% |
| Short-term investments | 338,464 | 4,200 | 4.94% | 310,770 | 3,934 | 5.02% |
| Total interest-earning assets | 2,001,741 | 23,012 | 4.57% | 2,059,801 | 21,446 | 4.13% |
| Non-interest-earning assets | ||||||
| Cash and due from banks | 22,473 | 24,786 | ||||
| Premises and equipment, net | 34,054 | 25,531 | ||||
| Bank-owned life insurance | 49,899 | 48,677 | ||||
| Goodwill and other intangibles | 20,206 | 20,966 | ||||
| Payments in advance of funding | 202,976 | 234,684 | ||||
| Unrealized loss on investment securities | (55,029) | (68,230) | ||||
| Other assets | 78,182 | 62,244 | ||||
| Allowance for credit losses | (13,632) | (13,195) | ||||
| Total assets | $2,340,870 | $2,395,264 | ||||
| Liabilities and Shareholders’ Equity1 | ||||||
| Interest-bearing liabilities | ||||||
| Interest-bearing demand deposits | $543,845 | $4,314 | 3.16% | $508,554 | $4,007 | 3.13% |
| Savings deposits | 6,921 | 29 | 1.67% | 7,716 | 33 | 1.70% |
| Time deposits >= $100 | 27,884 | 270 | 3.85% | 23,610 | 203 | 3.41% |
| Other time deposits | 51,554 | 543 | 4.19% | 51,676 | 398 | 3.06% |
| Total interest-bearing deposits | 630,204 | 5,156 | 3.25% | 591,556 | 4,641 | 3.11% |
| Short-term borrowings | 11 | — | —% | 11 | — | —% |
| Total interest-bearing liabilities | 630,215 | 5,156 | 3.25% | 591,567 | 4,641 | 3.11% |
| Non-interest bearing liabilities | ||||||
| Demand deposits | 404,364 | 480,472 | ||||
| Accounts and drafts payable | 1,033,070 | 1,070,057 | ||||
| Other liabilities | 41,436 | 40,578 | ||||
| Total liabilities | 2,109,085 | 2,182,674 | ||||
| Shareholders’ equity | 231,785 | 212,590 | ||||
| Total liabilities and shareholders’ equity | $2,340,870 | $2,395,264 | ||||
| Net interest income | $17,856 | $16,805 | ||||
| Net interest margin | 3.55% | 3.24% | ||||
| Interest spread | 1.32% | 1.02% |
1. Balances shown are daily averages.
2. Interest income on loans includes net loan fees of $154,000 and $98,000 for the third quarter of 2024 and 2023, respectively.
3. For purposes of these computations, yields on investment securities are computed as interest income divided by the average amortized cost of the investments.
4. Interest income is presented on a tax-equivalent basis assuming a tax rate of 21% for both 2024 and 2023. The tax-equivalent adjustment was approximately $237,000 and $256,000 for the third quarter of 2024 and 2023, respectively.
(In thousands)
| Average Balance Assets1 Interest-earning assets Loans2: | Nine Months Ended 2024 Interest Income/ Expense | Yield/ Rate | Average Balance | Nine Months Ended 2023 Interest Income/ Expense | Yield/ Rate | |
|---|---|---|---|---|---|---|
| Taxable | $1,042,953 | $40,935 | 5.24% | $1,065,915 | $38,029 | 4.77% |
| Investment securities3: | ||||||
| Taxable | 479,337 | 10,118 | 2.82% | 550,680 | 10,702 | 2.60% |
| Tax-exempt4 | 166,778 | 3,429 | 2.75% | 197,023 | 4,001 | 2.72% |
| Short-term investments | 318,712 | 11,908 | 4.99% | 263,774 | 9,147 | 4.64% |
| Total interest-earning assets | 2,007,780 | 66,390 | 4.42% | 2,077,392 | 61,879 | 3.98% |
| Non-interest-earning assets: | ||||||
| Cash and due from banks | 22,631 | 23,774 | ||||
| Premises and equipment, net | 32,972 | 22,984 | ||||
| Bank-owned life insurance | 49,603 | 48,395 | ||||
| Goodwill and other intangibles | 20,389 | 21,159 | ||||
| Payments in advance of funding | 203,498 | 243,458 | ||||
| Unrealized loss on investment securities | (59,528) | (65,882) | ||||
| Other assets | 79,487 | 63,321 | ||||
| Allowance for credit losses | (13,343) | (13,327) | ||||
| Total assets | $2,343,489 | $2,421,274 | ||||
| Liabilities and Shareholders’ Equity1 | ||||||
| Interest-bearing liabilities: | ||||||
| Interest-bearing demand deposits | $548,891 | $13,244 | 3.22% | $491,495 | $10,060 | 2.74% |
| Savings deposits | 7,134 | 92 | 1.72% | 7,094 | 82 | 1.55% |
| Time deposits >= $100 | 27,492 | 773 | 3.76% | 23,115 | 463 | 2.68% |
| Other time deposits | 49,856 | 1,536 | 4.12% | 42,290 | 858 | 2.71% |
| Total interest-bearing deposits | 633,373 | 15,645 | 3.30% | 563,994 | 11,463 | 2.72% |
| Short-term borrowings | 11 | 1 | 12.14% | 2,993 | 116 | 5.18% |
| Total interest-bearing liabilities | 633,384 | 15,646 | 3.30% | 566,987 | 11,579 | 2.73% |
| Non-interest bearing liabilities: | ||||||
| Demand deposits | 419,724 | 528,677 | ||||
| Accounts and drafts payable | 1,021,989 | 1,071,414 | ||||
| Other liabilities | 40,472 | 42,037 | ||||
| Total liabilities | 2,115,569 | 2,209,115 | ||||
| Shareholders’ equity | 227,920 | 212,159 | ||||
| Total liabilities and shareholders’ equity | $2,343,489 | $2,421,274 | ||||
| Net interest income | $50,744 | $50,300 | ||||
| Net interest margin | 3.38% | 3.24% | ||||
| Interest spread | 1.12% | 1.25% |
1. Balances shown are daily averages.
2. Interest income on loans includes net loan fees of $383,000 and $609,000 for the nine months ended September 30, 2024 and 2023, respectively.
3. For purposes of these computations, yields on investment securities are computed as interest income divided by the average amortized cost of the investments.
4. Interest income is presented on a tax-equivalent basis assuming a tax rate of 21% for both the nine months ended September 30, 2024 and 2023. The tax-equivalent adjustment was approximately $720,000 and $840,000 for the nine months ended September 30, 2024 and 2023, respectively.
Analysis of Net Interest Income Changes
The following tables present the changes in interest income and expense between periods due to changes in volume and interest rates. That portion of the change in interest attributable to the combined rate/volume variance has been allocated to rate and volume changes in proportion to the absolute dollar amounts of the change in each.
(In thousands)
| Volume Increase (decrease) in interest income: | Third Quarter of 2024 Compared to Third Quarter of 2023 Rate | Total | |
|---|---|---|---|
| Loans1: | $329 | $1,375 | $1,704 |
| Investment securities: | |||
| Taxable | (628) | 313 | (315) |
| Tax-exempt2 | (167) | 78 | (89) |
| Short-term investments | 336 | (70) | 266 |
| Total interest income | (130) | 1,696 | 1,566 |
| Increase (decrease) in interest expense: | |||
| Interest-bearing demand deposits | 270 | 37 | 307 |
| Savings deposits | (3) | (1) | (4) |
| Time deposits >=$100 | 39 | 28 | 67 |
| Other time deposits | (1) | 146 | 145 |
| Short-term borrowings | — | — | — |
| Total interest expense | 305 | 210 | 515 |
| Net interest income | $(435) | $1,486 | $1,051 |
1. Interest income includes net loan fees.
2. Interest income is presented on a tax-equivalent basis assuming a tax rate of 21% for the three months ended September 30, 2024 and 2023.
(In thousands)
| Volume Increase (decrease) in interest income: Loans1: | Nine Months Ended 2024 Compared to Nine Months Ended 2023 Rate | Total | |
|---|---|---|---|
| Taxable | $(832) | $3,738 | $2,906 |
| Investment securities: | |||
| Taxable | (1,456) | 872 | (584) |
| Tax-exempt2 | (618) | 46 | (572) |
| Short-term investments | 2,020 | 741 | 2,761 |
| Total interest income | (886) | 5,397 | 4,511 |
| Interest expense on: | |||
| Interest-bearing demand deposits | 1,262 | 1,922 | 3,184 |
| Savings deposits | — | 10 | 10 |
| Time deposits >=$100 | 99 | 211 | 310 |
| Other time deposits | 174 | 504 | 678 |
| Short-term borrowings | (182) | 67 | (115) |
| Total interest expense | 1,353 | 2,714 | 4,067 |
| Net interest income | $(2,239) | $2,683 | $444 |
1. Interest income includes net loan fees.
2. Interest income is presented on a tax-equivalent basis assuming a tax rate of 21% for the nine months ended September 30, 2024 and 2023.
Provision and Allowance for Credit Losses and Allowance for Unfunded Commitments
The Company recorded a release of credit losses and off-balance sheet credit exposures of $140,000 for the third quarter of 2024 and a provision for credit losses of $125,000 in third quarter of 2023. The Company recorded a provision for credit losses and off-balance sheet credit exposures of $355,000 for the nine months ended of September 30, 2024 and a release of credit losses of $335,000 for the nine months ended September 30, 2023. The amount of the (release of) provision for credit losses is derived from the Company’s quarterly Current Expected Credit Loss (“CECL”) model. The amount of the (release of) provision for credit losses will fluctuate as determined by these quarterly analyses. The provision for credit losses for the nine months ended September 30, 2024 was driven by an increase in total loans of $64.1 million, or 6.3%, as compared to December 31, 2023.
The Company experienced no loan charge-offs in the third quarters of 2024 and 2023. The ACL was $13.4 million at September 30, 2024 and $13.1 million at December 31, 2023. The ACL represented 1.25% of outstanding loans at September 30, 2024 and 1.29% of outstanding loans at December 31, 2023. The allowance for unfunded commitments was $129,000 at September 30, 2024 and $132,000 at December 31, 2023. There were no nonperforming loans outstanding at September 30, 2024 and December 31, 2023.
The ACL has been established and is maintained to estimate the lifetime expected credit losses in the loan portfolio. An ongoing assessment is performed to determine if the balance is adequate. Charges or credits are made to expense based on changes in the economic forecast, qualitative risk factors, loan volume, and individual loans. For loans that are individually evaluated, the Company uses two impairment measurement methods: 1) the present value of expected future cash flows and 2) collateral value.
The Company also utilizes ratio analyses to evaluate the overall reasonableness of the ACL compared to its peers and required levels of regulatory capital. Federal and state regulatory agencies review the Company’s methodology for maintaining the ACL. These agencies may require the Company to adjust the ACL based on their judgments and interpretations about information available to them at the time of their examinations.
Summary of Credit Loss Experience
The following table presents information on the Company's provision for (release of) credit losses and analysis of the ACL:
(In thousands)
| Third Quarter of 2024 | 2023 | Nine Months Ended September 30, 2024 | 2023 | |
|---|---|---|---|---|
| Allowance for credit losses at beginning of period | $13,634 | $13,194 | $13,089 | $13,539 |
| (Release of) provision for credit losses | (187) | 125 | 358 | (220) |
| Allowance for credit losses at end of period | $13,447 | $13,319 | $13,447 | $13,319 |
| Allowance for unfunded commitments at beginning of period | $82 | $177 | $132 | $232 |
| Provision for (release of) credit losses | 47 | — | (3) | (115) |
| Allowance for unfunded commitments at end of period | $129 | $177 | $129 | $117 |
| Loans outstanding: | ||||
| Average | $1,072,824 | $1,045,967 | $1,042,953 | $1,065,915 |
| September 30 | $1,078,387 | $1,039,619 | $1,078,387 | $1,039,619 |
| Ratio of allowance for credit losses to loans outstanding at September 30 | 1.25% | 1.28% | 1.25% | 1.28% |
Operating Expenses
Total operating expenses for the third quarter of 2024 increased $6.8 million, or 17.1%, compared to the third quarter of 2023. Total operating expenses for the nine months ended September 30, 2024 increased $10.6 million, or 8.8%, compared to the nine months ended September 30, 2023. The following table details the components of operating expenses:
(In thousands)
| 2024 | Third Quarter of 2023 | 2024 | Nine Months Ended September 30, 2023 | |
|---|---|---|---|---|
| Salaries and commissions | $23,850 | $23,391 | $72,085 | $69,613 |
| Share-based compensation | 898 | 938 | 2,598 | 3,796 |
| Net periodic pension cost | 195 | 100 | 584 | 299 |
| Other benefits | 4,924 | 5,207 | 15,064 | 15,386 |
| Personnel | $29,867 | $29,636 | $90,331 | $89,094 |
| Occupancy | 890 | 908 | 2,577 | 2,670 |
| Equipment | 2,107 | 1,789 | 5,976 | 5,188 |
| Amortization of intangible assets | 183 | 195 | 556 | 585 |
| Bad debt expense | 6,559 | — | 7,847 | — |
| Other operating | 7,292 | 7,535 | 23,075 | 22,237 |
| Total operating expense | $46,898 | $40,063 | $130,362 | $119,774 |
Third quarter of 2024 compared to third quarter of 2023:
Personnel expense increased $231,000, or 0.8%. Salaries and commissions increased $459,000, or 2.0%, primarily as a result of merit increases and $280,000 severance recorded during the third quarter of 2024, partially offset by a decrease in employee profit sharing due to the decline in net income. Share-based compensation decreased $40,000, reflecting the Company's financial performance and the impact on performance-based restricted stock between the periods.
Equipment expense increased $318,000, or 17.8%, primarily due to an increase in depreciation expense related to technology initiatives throughout the Company's lines of business.
The Company recorded bad debt expense of $6.6 million on a funding receivable related to a facility client. While the Company is in the process of litigation to collect the receivable, a full write-off to bad debt expense was recorded as a result of a credit analysis.
Nine months ended September 30, 2024 compared to nine months ended September 30, 2023:
Personnel expense increased $1.2 million, or 1.4%. Salaries and commissions increased $2.5 million, or 3.6%, primarily as a result of merit increases. Share-based compensation decreased $1.2 million, reflecting the Company's financial performance and the impact on performance-based restricted stock between the periods.
Equipment expense increased $788,000, or 15.2%, primarily due to an increase in depreciation expense related to technology initiatives throughout the Company's lines of business.
The Company recorded bad debt expense of $7.8 million on a funding receivable related to a facility client. While the Company is in the process of litigation to collect the receivable, a full write-off to bad debt expense was recorded as a result of a credit analysis.
Financial Condition
Total assets at September 30, 2024 were $2.26 billion, a decrease of $217.9 million, or 8.8%, from December 31, 2023.
The Company experienced a decrease in cash and cash equivalents of $141.9 million, or 38.1%, during the nine months ended September 30, 2024. The change in cash and cash equivalents reflects the Company’s daily liquidity position and is primarily affected by changes in funding sources, mainly accounts and drafts payable and deposits, cash flows in and out of loans, investments securities and payments in advance of funding.
The investment securities portfolio decreased $76.4 million, or 12.2%, during the nine months ended September 30, 2024. The decrease is due to sales of $25.0 million and maturities of $130.5 million, partially offset by purchases of $71.1 million.
Loans increased $64.1 million, or 6.3%, from December 31, 2023. The Company experienced growth in its franchise restaurant, faith-based and commercial and industrial loan portfolios during the nine months ended September 30, 2024.
Payments in advance of funding increased $8.3 million, or 4.2%. from December 31, 2023 due to timing of funding.
Accounts and drafts receivable from customers decreased $79.8 million, or 72.1%, from December 31, 2023. The decrease is solely due to timing of customer funding.
Total deposits at September 30, 2024 were $1.05 billion, a decrease of $93.5 million, or 8.2%, from December 31, 2023. The decrease is primarily due to timing as well as a migration of non-interest bearing deposits into interest-bearing deposits within the Bank and other alternatives outside the banking system.
Accounts and drafts payable at September 30, 2024 were $936.5 million, a decrease of $134.9 million, or 12.6%, from December 31, 2023. The decrease in accounts and drafts payable was primarily reflective of a cyber event at a client during the first quarter of 2024 which decreased average balances approximately $100.0 million. Accounts and drafts payable will fluctuate from period-end to period-end due to the payment processing cycle, which results in lower balances on days when payments clear and higher balances on days when payments are issued. For this reason, average balances are generally a more meaningful measure of accounts and drafts payable.
Total liabilities at September 30, 2024 were $2.02 billion, a decrease of $225.7 million, or 10.0%, from December 31, 2023, reflective of the decrease in deposits and accounts and drafts payable.
Total shareholders’ equity at September 30, 2024 was $237.6 million, a $7.8 million increase from December 31, 2023. The increase in shareholders’ equity is a result of net income for the nine months ended September 30, 2024 of $14.6 million, and a decrease in accumulated other comprehensive loss of $8.4 million primarily related to the fair value of available-for-sale investment securities, partially offset by dividends paid of $12.3 million and the repurchase of Company stock of $3.7 million.
Liquidity and Capital Resources
The discipline of liquidity management as practiced by the Company seeks to ensure that funds are available to fulfill all payment obligations relating to invoices processed as they become due and meet depositor withdrawal requests and borrower credit demands while at the same time maximizing profitability. This is accomplished by balancing changes in demand for funds with changes in supply of funds. Primary liquidity to meet demand is provided by short-term liquid assets that can be converted to cash, maturing securities and the ability to obtain funds from external sources. The Company's Asset/Liability Committee has direct oversight responsibility for the Company's liquidity position and profile. Management considers both on-balance sheet and off-balance sheet items in its evaluation of liquidity.
The balance of liquid assets consists of cash and cash equivalents, which include cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold and money market funds. Cash and cash equivalents totaled $230.6 million at September 30, 2024, a decrease of $141.9 million, or 38.1%, from December 31, 2023. At September 30, 2024, these assets represented 10.2% of total assets and are the Company’s and its subsidiaries’ primary source of liquidity to meet future expected and unexpected loan demand, depositor withdrawals or reductions in accounts and drafts payable.
Secondary sources of liquidity include the investment portfolio and borrowing lines. Total investment securities were $550.8 million at September 30, 2024, a decrease of $76.4 million from December 31, 2023. These assets represented 24.4% of total assets at September 30, 2024. Of the total portfolio, 6.5% mature in one year, 22.5% mature in one to five years, and 71.0% mature in five or more years.
The Bank has unsecured lines of credit at six correspondent banks to purchase federal funds up to a maximum of $83.0 million in aggregate. As of September 30, 2024, the Bank also has secured lines of credit with the Federal Home Loan Bank of $191.0 million collateralized by mortgage loans. The Company also has secured lines of credit from three banks up to a maximum of $250.0 million in aggregate collateralized by investment securities. There were no amounts outstanding under any line of credit as of September 30, 2024 or December 31, 2023.
The deposits of the Company's banking subsidiary have historically been stable, consisting of a sizable volume of core deposits related to customers that utilize other commercial products of the Bank, including CassPay and faith-based customers. The accounts and drafts payable generated by the Company has also historically been a stable source of funds. The Company is part of the Certificate of Deposit Account Registry Service (“CDARS”) and Insured Cash Sweep (“ICS”) deposit placement programs. Time deposits include $52.8 million of CDARS deposits and interest-bearing demand deposits include $150.5 million of ICS deposits. These programs offer the Bank’s customers the ability to maximize Federal Deposit Insurance Corporation (“FDIC”) insurance coverage. The Company uses these programs to retain or attract deposits from existing customers.
Net cash flows provided by operating activities were $20.3 million for the nine months ended September 30, 2024, compared to $29.4 million for the nine months ended September 30, 2023, an decrease of $9.0 million. Net cash flows from investing and financing activities fluctuate greatly as the Company actively manages its investment and loan portfolios and customer activity influences changes in deposit and accounts and drafts payable balances. Other causes for the changes in these account balances are discussed earlier in this report. Due to the daily fluctuations in these account balances, the analysis of changes in average balances, also discussed earlier in this report, can be more indicative of underlying activity than the period-end balances used in the statements of cash flows. Management anticipates that cash and cash equivalents, maturing investments and cash from operations will continue to be sufficient to fund the Company’s operations and capital expenditures in 2024, which are estimated to range from $10 million to $12 million.
Net income plus amortization of intangible assets, net amortization of premium/discount on investment securities and depreciation of premises and equipment was $21.7 million and $28.7 million for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $7.0 million. The nine months ended September 30, 2024 reflected lower net income of $7.1 million and a decrease in net amortization of premium/discount on investment securities of $462,000, partially offset by higher depreciation of $585,000. The net amortization of premium/discount on investment securities is dependent on the type of securities purchased and changes in the prevailing market interest rate environment. Depreciation expense has increased as a result of capital expenditures related to technology initiatives.
Other factors impacting the $9.0 million decrease in net cash provided by operating activities include:
- An increase in accounts receivable of $4.0 million; and
- A decrease in stock compensation expense of $1.2 million
These factors were partially offset by a decrease in income tax liability $1.6 million.
The Company faces market risk to the extent that its net interest income and fair market value of equity are affected by changes in market interest rates. For information regarding the market risk of the Company’s financial instruments, see Item 3, “Quantitative and Qualitative Disclosures about Market Risk.”
There are several trends and uncertainties that may impact the Company’s ability to generate revenues and income at the levels that it has in the past. Those that could significantly impact the Company include the general levels of interest rates, business activity, inflation, and energy costs as well as new business opportunities available to the Company. For more detailed information on these trends and uncertainties and how they can generally affect the Company’s available liquidity, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity” in the Company’s 2023 Form 10-K.
As a bank holding company, the Company and the Bank are subject to capital requirements administered by state and federal banking agencies. Capital adequacy guidelines, and, for banks, prompt correct action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are subject to qualitative judgments by regulators about components, risk weighting, and other factors. In addition, the calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations. For example, as allowed under the Basel III Capital Rules, the Company has elected to opt-out of the requirement to include most components of accumulated other comprehensive income in common equity Tier 1 capital. For more information on these regulatory requirements, including the Basel III Capital Rules and capital classifications, see Item 1, "Business-Supervision and Regulation" and Item 8, Note 2, "Financial Statements and Supplementary Data" of the Company's 2023 Form 10-K.
The Company and the Bank continue to exceed all regulatory capital requirements, as evidenced by the following capital amounts and ratios:
(In thousands)
| At September 30, 2024 Total capital (to risk-weighted assets) | Actual Amount | Ratio | Capital Requirements Amount | Ratio | Requirement to be Well-Capitalized Amount | Ratio |
|---|---|---|---|---|---|---|
| Cass Information Systems, Inc. | $269,984 | 15.31% | $141,096 | 8.00% | $ N/A | N/A % |
| Cass Commercial Bank | 208,838 | 18.06 | 92,498 | 8.00 | 115,623 | 10.00 |
| Common Equity Tier I Capital (to risk-weighted assets) | ||||||
| Cass Information Systems, Inc. | 256,408 | 14.54 | 79,366 | 4.50 | N/A | N/A |
| Cass Commercial Bank | 195,915 | 16.94 | 52,030 | 4.50 | 75,155 | 6.50 |
| Tier I capital (to risk-weighted assets) | ||||||
| Cass Information Systems, Inc. | 256,408 | 14.54 | 105,822 | 6.00 | N/A | N/A |
| Cass Commercial Bank | 195,915 | 16.94 | 69,374 | 6.00 | 92,498 | 8.00 |
| Tier I capital (to average assets) | ||||||
| Cass Information Systems, Inc. | 256,408 | 11.05 | 92,831 | 4.00 | N/A | N/A |
| Cass Commercial Bank | 195,915 | 13.61 | 57,571 | 4.00 | 71,964 | 5.00 |
| At December 31, 2023 | ||||||
| Total capital (to risk-weighted assets) | ||||||
| Cass Information Systems, Inc. | $269,580 | 15.49% | $139,266 | 8.00% | $ N/A | N/A % |
| Cass Commercial Bank | 204,584 | 19.04 | 85,964 | 8.00 | 107,455 | 10.00 |
| Common Equity Tier I Capital (to risk-weighted assets) | ||||||
| Cass Information Systems, Inc. | 256,359 | 14.73 | 78,337 | 4.50 | N/A | N/A |
| Cass Commercial Bank | 192,104 | 17.88 | 48,355 | 4.50 | 69,846 | 6.50 |
| Tier I capital (to risk-weighted assets) | ||||||
| Cass Information Systems, Inc. | 256,359 | 14.73 | 104,449 | 6.00 | N/A | N/A |
| Cass Commercial Bank | 192,104 | 17.88 | 64,473 | 6.00 | 85,964 | 8.00 |
| Tier I capital (to average assets) | ||||||
| Cass Information Systems, Inc. | 256,359 | 10.71 | 95,760 | 4.00 | N/A | N/A |
| Cass Commercial Bank | 192,104 | 12.49 | 61,526 | 4.00 | 76,908 | 5.00 |
Impact of New and Not Yet Adopted Accounting Pronouncements
In October 2023, the FASB issued 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018.
The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on the Company's financial statements.
In November 2023, the FASB issued 2023-07, Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This ASU expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after
December 15, 2024. Early adoption is permitted. ASU 2023-07 is not expected to have a significant impact on the Company's financial statements.
In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). This ASU requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. It also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state, and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, though early adoption is permitted. ASU 2023-09 is not expected to have a significant impact on the Company's financial statements.
Critical Accounting Policies
The Company has prepared the consolidated financial statements in this report in accordance with the Financial Accounting Standards Board Accounting Standards Codification. In preparing the consolidated financial statements, management makes estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates have been generally accurate in the past, have been consistent and have not required any material changes. There can be no assurances that actual results will not differ from those estimates. The accounting policy that requires significant management estimates and is deemed critical to the Company’s results of operations or financial position has been discussed with the Audit and Risk Committee of the Board of Directors and is described below.
Allowance for Credit Losses. The Company performs periodic and systematic detailed reviews of its loan portfolio to determine management’s estimate of the lifetime expected credit losses. Although these estimates are based on established methodologies for determining allowance requirements, actual results can differ significantly from estimated results. These policies affect both segments of the Company. The impact and associated risks related to these policies on the Company’s business operations are discussed in the “Provision and Allowance for Credit Losses and Allowance for Unfunded Commitments” section of this report.
Market risk
As filed, 1,102 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
As described in the Company’s 2023 Form 10-K for the year ended December 31, 2023, the Company manages its interest rate risk through measurement techniques that include gap analysis and a simulation model. As part of the risk management process, asset/liability management policies are established and monitored by management.
The following table summarizes simulated changes in net interest income versus unchanged rates over the next 12 months as of September 30, 2024 and December 31, 2023.
| % change in projected net interest income September 30, 2024 | December 31, 2023 | |
|---|---|---|
| +200 basis points | 8.8% | 14.7% |
| +100 basis points | 4.1% | 6.5% |
| Flat rates | —% | —% |
| -100 basis points | 0.4% | (3.2)% |
| -200 basis points | (0.2)% | (6.0)% |
The Company is generally asset sensitive as average interest-earning assets of $2.00 billion for the third quarter of 2024 greatly exceeded average interest-bearing liabilities of $630.2 million. The table above on the projected impact of interest rate shocks results from a static balance sheet at September 30, 2024.
Controls and procedures
As filed, 923 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The Company’s management, under the supervision and with the participation of the principal executive officer and the principal financial officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report and concluded that, as of such date, these controls and procedures were effective.
There were no changes in the third quarter of 2024 in the Company's internal control over financial reporting identified by the Company’s principal executive officer and principal financial officer in connection with their evaluation that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended).
Risk factors
As filed, 317 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The Company has included in Part I, Item 1A of its 2023 Form 10-K, a description of certain risks and uncertainties that could affect the Company’s business, future performance or financial condition (the “Risk Factors”). There are no material changes to the Risk Factors as disclosed in the Company’s 2023 Form 10-K.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2024-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2024-07-01 to 2024-09-30 | $31.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months2024-01-01 to 2024-09-30 | $95.9m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Interest expense | 3 months2024-07-01 to 2024-09-30 | $5.2m | us-gaap:InterestExpense |
| Interest expense | 9 months2024-01-01 to 2024-09-30 | $15.6m | us-gaap:InterestExpense |
| Income tax | 3 months2024-07-01 to 2024-09-30 | $714.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2024-01-01 to 2024-09-30 | $3.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2024-07-01 to 2024-09-30 | $2.9m | us-gaap:NetIncomeLoss |
| Net income | 9 months2024-01-01 to 2024-09-30 | $14.6m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2024-07-01 to 2024-09-30 | $0.21 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months2024-01-01 to 2024-09-30 | $1.06 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2024-07-01 to 2024-09-30 | $0.22 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months2024-01-01 to 2024-09-30 | $1.08 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2024-07-01 to 2024-09-30 | 13,785,997 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months2024-01-01 to 2024-09-30 | 13,797,740 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months2024-01-01 to 2024-09-30 | $20.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2024-01-01 to 2024-09-30 | $7.8m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months2024-01-01 to 2024-09-30 | $12.3m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 9 months2024-01-01 to 2024-09-30 | $3.7m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | At period end2024-09-30 | $2.26bn | us-gaap:Assets |
| Total liabilities | At period end2024-09-30 | $2.02bn | us-gaap:Liabilities |
| Shareholders' equity | At period end2024-09-30 | $237.6m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0000708781-24-000091. Last ingested by Listed: Nov 4, 2026, 17:36 ET. Listed shows no prices and gives no investment advice.