ST. LOUIS--(BUSINESS WIRE)--Jan. 30, 2007--Cass Information Systems, Inc. (NASDAQ: CASS), the nation's leading provider of transportation, utility and telecom invoice payment and information services, reports that it earned $1.77 per fully diluted share for the year ended Dec. 31, 2006, a 37% increase over the $1.29 per share (adjusted for a 50% stock dividend issued Sept. 15, 2006) earned in 2005. Net income was $15,066,000 in 2006, a 38% increase over the $10,946,000 earned in 2005.

Income from continuing operations before taxes (excluding a 2005 impairment charge) increased $4,502,000 or 23 % over 2005. Total revenue from continuing operations rose $10,663,000 or 15% as Cass boosted processing volumes, fee revenues and investment income. Payment and processing fees increased 12% or $4,442,000, as a result of the 18% increase in utility volume and 8% increase in transportation volume.

Net investment income was up 20% or $6,495,000 due to growth in funds generated from processing activities and higher prevailing interest rates.

Operating expenses for continuing operations for the year were up 12% or $6,161,000, due mainly to increased processing activity.

"On behalf of our shareholders, I am gratified that Cass was able to convincingly attain the double-digit earnings growth that we thought was within reach as we entered fiscal 2006," said Lawrence A. Collett, Cass chief executive officer and chairman. "Even though national economic factors and trends may not be as beneficial for us in 2007 as they were in 2006, we remain confident in the abilities of our people to grow the company in the year ahead."

4th Quarter 2006 Earnings Up 48%

Fourth quarter 2006 earnings were 43 cents per fully-diluted share, a 48% increase over the 29 cents posted in the fourth quarter of 2005. Net income for the period was $3,695,000 compared to the $2,502,000 reported during the final quarter of 2005. (Two significant events affected fourth quarter 2005 results: the sale of a wholly owned subsidiary that generated a pre-tax gain of $1,336,000 and the impairment of an equity investment that produced a $3,100,000 pre-tax loss).

About Cass Information Systems

Cass Information Systems is the leading provider of transportation, utility and telecom invoice payment and information services. The company, which has been involved in the payables services and information support business since 1956, disburses over $19 billion annually on behalf of customers from processing centers in St. Louis, Mo., Columbus, Ohio, Boston, Mass., Greenville, S.C. and Wellington, Kansas. The support of Cass Commercial Bank, founded in 1906, makes Cass Information Systems unique in the industry. Cass is part of the Russell 2000(R) Index.

    http://www.cassinfo.com

    Selected Consolidated Financial Data

The following table presents selected unaudited consolidated financial data (in thousands, except per share data) for the periods ended December 31, 2006 and 2005:

                          Quarter    Quarter      Year        Year
                           Ended      Ended       Ended      Ended
                          12/31/06   12/31/05   12/31/06    12/31/05
Transportation Invoice
 Volume                      5,909      5,860      24,220      22,348
Transportation Dollar
 Volume                 $3,476,395 $3,400,498 $14,199,389 $11,949,052
Utility Transaction
 Volume                      1,868      1,430       6,665       5,655
Utility Dollar Volume   $1,483,314 $1,256,192 $ 5,671,892 $ 4,423,045
Payment and Processing
 Fees                   $   10,490 $    9,415 $    40,343 $    35,901
Net Investment Income        9,813      9,331      39,284      32,789
Gain on Sales of Debt
 Securities                      -          -           -         547
Other                          583        554       2,478       2,205
                         --------------------- ----------- -----------
  Total Revenues        $   20,886 $   19,300 $    82,105 $    71,442
Salaries and Benefits   $   11,003 $    9,764 $    42,676 $    38,044
Occupancy                      517        498       1,979       1,941
Equipment                      800        649       2,928       2,795
Other                        2,783      2,435      10,694       9,336
                         ---------- ---------- ----------- -----------
  Total Operating
   Expenses             $   15,103 $   13,346 $    58,277 $    52,116
Impairment of Equity
 Investment                      -      3,100           -       3,100
                         ---------- ---------- ----------- -----------
Income from Continuing
 Operations before
 Income Taxes           $    5,783 $    2,854 $    23,828 $    16,226
Provision for Income
 Taxes                  $    1,970 $      436 $     8,367 $     4,982
                         ---------- ---------- ----------- -----------
Income from Continuing
 Operations             $    3,813 $    2,418 $    15,461 $    11,244
(Loss) Income from
 Discontinued
 Operations                   (200)       832        (675)        259
(Credit) Provision for
 Income Taxes                  (82)       748        (280)        557
                         ---------- ---------- ----------- -----------
(Loss) Income from
 Discontinued
 Operations             $     (118)$       84 $      (395)$      (298)
Net Income              $    3,695 $    2,502 $    15,066 $    10,946
                         ========== ========== =========== ===========
Average Earning Assets  $  793,937 $  742,367 $   762,397 $   697,285
Net Interest Margin           5.42%      5.24%       5.50%       4.95%
Allowance for Loan
 Losses to Loans              1.31%      1.19%       1.31%       1.19%
Non-performing Loans to
 Total Loans                   .16%       .28%        .16%        .28%
Net Loan Charge-offs to
 Loans                           -        .02%        .17%        .10%
Provision for Loan
 Losses                 $      650 $      150 $     1,150 $       775
Non-performing Loans    $      795 $    1,464 $       795 $     1,464
Basic Earnings per
 Share from Continuing
 Operations             $      .46 $      .29 $      1.86 $      1.36
Basic Earnings per
 Share from
 Discontinued
 Operations                   (.02)       .02        (.05)       (.03)
Basic Earnings per
 Share                  $      .44 $      .31 $      1.81 $      1.33
Diluted Earnings per
 Share from Continuing
 Operations             $      .45 $      .29 $      1.82 $      1.33
Diluted Earnings per
 Share from
 Discontinued
 Operations                   (.02)         -        (.05)       (.04)
Diluted Earnings per
 Share                  $      .43 $      .29 $      1.77 $      1.29

Note to Investors

Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the company's actual results, see the company's reports filed from time to time with the Securities and Exchange Commission including the company's annual report on Form 10-K for the year ended December 31, 2005.

    CONTACT: Casey Communications, Inc.
             Kenn Entringer, (314) 721-2828
             kentringer@caseycomm.com

    SOURCE: Cass Information Systems