Cass Information Systems posts higher Q3 profit

• Cass Information Systems reported third-quarter 2026 net income of $10.6 million, up 16.1% year over year, while diluted earnings per share increased 19.1% to $0.81.
• Revenue increased 5.3%, supported by higher net interest income and an 11.8% rise in financial fees, while net interest margin reached 4.02%.
• Cass raised its quarterly dividend to $0.34 per share and expects new client onboarding and higher payment volumes to support future revenue growth.

Cass Information Systems (NASDAQ:CASS) reported third-quarter 2026 net income of $10.6 million, up 16.1%, while diluted earnings per share reached $0.81.

Revenue increased 5.3%, or $2.6 million, from a year earlier, supported by higher net interest income and financial fees.

Net interest margin widened to 4.02% from 3.87%, while financial fees increased 11.8% and processing fees declined 4.6%.

Cass recorded a $508,000 loan charge-off, while shareholders' equity declined $18.6 million and unrealized investment securities losses reached $75.3 million.

Cass expects client onboarding and higher payment volumes to support revenue growth, while forecasting faster expense growth through 2027.

The company increased its quarterly cash dividend to $0.34 per share, payable December 14, 2026, while loans declined 3.5% sequentially.

Cass previously reported second-quarter net income of $10.6 million and diluted EPS of $0.81, supported by expanding margins and payment services.