0000708781-26-000010 | 10-K | XBRL Viewer | Cass Information Systems INC

Summary of Operations The Company provides payment and information services, which include processing and payment of transportation, energy, telecommunications and environmental invoices. These services include the acquisition and management of data, information delivery and financial exchange. The consolidated balance sheet captions, “Accounts and drafts payable” and “Payments in advance of funding,” represent the Company’s resulting financial position related to the payment services that are performed for customers. The Company also provides a full range of banking services to individual, corporate and institutional customers through the Bank, its wholly owned bank subsidiary.

Investment in Debt Securities [Policy Text Block]

cass_InvestmentInDebtSecuritiesPolicyTextBlock

Investment Securities The Company classifies its investment securities as available-for-sale. Securities classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and reported in accumulated other comprehensive income, a component of shareholders’ equity. Securities are periodically evaluated for credit losses in accordance with the guidance provided in FASB ASC Topic 326, Financial Instruments – Credit Losses ("ASC 326").

For available for sale investment securities in an unrealized loss position, the entire loss in fair value is required to be recognized in current earnings if the Company intends to sell the securities or believes it is more likely than not that it will be required to sell the security before the anticipated recovery. If neither condition is met, and the Company does not expect to recover the amortized cost basis, the Company determines whether the decline in fair value resulted from credit losses or other factors. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss has occurred, and an allowance for credit losses is recorded. The allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis. Any impairment not recorded through the provision for credit losses would be recognized in other comprehensive income.

Changes in the allowance for credit losses would be recorded as a provision for credit losses on the consolidated statements of income. Losses would be charged against the allowance for credit losses on securities when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the conditions regarding intent or requirement to sell is met.

Premiums and discounts are amortized or accreted to interest income over the expected lives of the respective securities using the level-yield method. Interest income is recognized when earned. Gains and losses are calculated using the specific identification method.

Impairment of Loans [Policy Text Block]

cass_ImpairmentOfLoansPolicyTextBlock

Individually Evaluated Loans A loan is considered individually evaluated when it is probable that a creditor will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. Individually evaluated loans are generally measured based on the expected future cash flows and discounted at the loan's effective interest rate. Alternatively, reference to an observable market price could be used to individually evaluate loans, if one exists, or the fair value of the collateral for a collateral-dependent loan. Regardless of the historical measurement method used, the Company measures individually evaluated loans based on the fair value of the collateral when the Company determines foreclosure is probable. The Company uses its methods as discussed above for recognizing interest on individually evaluated loans.

Percentage holding required to account investments under non-marketable equity investments

cass_PercentageHoldingRequiredToAccountInvestmentsNonMarketableEquityInvestments

20.00%

Treasury Stock [Policy Text Block]

cass_TreasuryStockPolicyTextBlock

Treasury Stock Purchases of the Company’s common stock are recorded at cost. Upon reissuance, treasury stock is reduced based upon the average cost basis of shares held.

Processing Fees [Policy Text Block]

cass_ProcessingFeesPolicyTextBlock

Processing Fees A majority of the Company’s fee revenue is attributable to providing services related to processing and payment of invoices. These services include invoice processing, transportation invoice rating, payment processing and services, auditing, and the generation of accounting and transportation information. The Company also processes, pays and generates management information from electric, gas, telecommunications, environmental, and other invoices. The specific payment and information processing services provided to each customer are developed individually to meet each customer’s specific requirements. The Company enters into service agreements with customers typically for fixed fees per transaction that are invoiced monthly. Revenues are recognized in the period services are rendered and earned under the service agreements, as long as collection is reasonably assured.

Financial Fees [Policy Text Block]

cass_FinancialFeesPolicyTextBlock

Financial fees The Company earns fees on a transaction level basis for invoice payment services when making customer payments. Fees are recognized at the point in time when the payment transactions are made, which is when the performance obligation is satisfied.

Accounts and drafts payable, discontinued operations

cass_AccountsAndDraftsPayableDiscontinuedOperations

$ 0

Accounts and drafts payable, discontinued operations

cass_AccountsAndDraftsPayableDiscontinuedOperations

19,665,000

Salaries and commissions, discontinued operations

cass_SalariesAndCommissionsDiscontinuedOperations

6,637,000

Salaries and commissions, discontinued operations

cass_SalariesAndCommissionsDiscontinuedOperations

11,533,000

Salaries and commissions, discontinued operations

cass_SalariesAndCommissionsDiscontinuedOperations

11,562,000

Shared-Based Payment Arrangement, Noncash Expense, Discontinued Operations

cass_SharedBasedPaymentArrangementNoncashExpenseDiscontinuedOperations

27,000

Shared-Based Payment Arrangement, Noncash Expense, Discontinued Operations

cass_SharedBasedPaymentArrangementNoncashExpenseDiscontinuedOperations

116,000

Shared-Based Payment Arrangement, Noncash Expense, Discontinued Operations

cass_SharedBasedPaymentArrangementNoncashExpenseDiscontinuedOperations

132,000

Other benefits, Discontinued Operations

cass_OtherBenefitsDiscontinuedOperations

1,414,000

Other benefits, Discontinued Operations

cass_OtherBenefitsDiscontinuedOperations

2,406,000

Other benefits, Discontinued Operations

cass_OtherBenefitsDiscontinuedOperations

2,612,000

Total personnel expenses, Discontinued Operations

cass_TotalPersonnelExpensesDiscontinuedOperations

8,078,000

Total personnel expenses, Discontinued Operations

cass_TotalPersonnelExpensesDiscontinuedOperations

14,055,000

Total personnel expenses, Discontinued Operations

cass_TotalPersonnelExpensesDiscontinuedOperations

14,306,000

Occupancy, Discontinued Operations

cass_OccupancyDiscontinuedOperations

408,000

Occupancy, Discontinued Operations

cass_OccupancyDiscontinuedOperations

751,000

Occupancy, Discontinued Operations

cass_OccupancyDiscontinuedOperations

761,000

Equipment, Discontinued Operations

cass_EquipmentDiscontinuedOperations

110,000

Equipment, Discontinued Operations

cass_EquipmentDiscontinuedOperations

204,000

Equipment, Discontinued Operations

cass_EquipmentDiscontinuedOperations

$ 242,000

Available-For-Sale, Securities In Unrealized Loss Positions, Percentage Of Total Securities

cass_AvailableForSaleSecuritiesInUnrealizedLossPositionsPercentageOfTotalSecurities

67.30%

Available-For-Sale, Securities In Unrealized Loss Positions, Percentage Of Total Securities

cass_AvailableForSaleSecuritiesInUnrealizedLossPositionsPercentageOfTotalSecurities

96.00%

Available-For-Sale, Securities In Unrealized Loss Positions, Greater Than 12 Months, Percentage Of Total Securities

cass_AvailableForSaleSecuritiesInUnrealizedLossPositionsGreaterThan12MonthsPercentageOfTotalSecurities

58.40%

Summary of Loan Categories [Table Text Block]

cass_SummaryOfLoanCategoriesTableTextBlock

A summary of loan categories is as follows:


	December 31,
(In thousands)	2025		2024
Commercial and industrial	$	553,080	$	559,262
Real estate:
Commercial:
Mortgage	97,567		119,194
Construction	12,943		9,134
Faith-based:
Mortgage	362,312		368,881
Construction	35,288		25,518
Other	27		—
Total loans	$	1,061,217	$	1,081,989

Schedule of Credit Exposure of the Loan Portfolio [Table Text Block]

cass_ScheduleOfCreditExposureOfTheLoanPortfolioTableTextBlock

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2025:


(In thousands)	Loans Subject to Normal Monitoring(1)		Performing Loans Subject to Special Monitoring(2)		Nonperforming Loans Subject to Special Monitoring(2)		Total Loans
Commercial and industrial	$	531,416	$	17,894	$	3,770	$	553,080
Real estate
Commercial:
Mortgage	81,744		12,601		3,222		97,567
Construction	12,943		—		—		12,943
Faith-based:
Mortgage	358,691		3,621		—		362,312
Construction	35,288		—		—		35,288
Other	27		—		—		27
Total	$	1,020,109	$	34,116	$	6,992	$	1,061,217


(1)			Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk and have the apparent ability to satisfy their loan obligation.
(2)			Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a higher level of management attention.

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2024:


(In thousands)	Loans Subject to Normal Monitoring(1)		Performing Loans Subject to Special Monitoring(2)		Nonperforming Loans Subject to Special Monitoring(2)		Total Loans
Commercial and industrial	$	527,690	$	31,572	$	—	$	559,262
Real estate
Commercial:
Mortgage	116,063		3,131		—		119,194
Construction	9,134		—		—		9,134
Faith-based:
Mortgage	352,356		16,525		—		368,881
Construction	25,518		—		—		25,518

Total	$	1,030,761	$	51,228	$	—	$	1,081,989


(1)			Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk and have the apparent ability to satisfy their loan obligation.
(2)			Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a higher level of management attention.

A summary of the ACL by category for the period ended December 31, 2025 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2024	$	5,897	$	1,023	$	6,258	$	217	$	13,395


(Release of) provision for credit losses (1)	(64)		(134)		288		112		202

Balance at December 31, 2025	$	5,833	$	889	$	6,546	$	329	$	13,597


(1)			For the year ended December 31, 2025, there was a provision for credit losses of $146,000 for unfunded commitments.

A summary of the ACL by category for the period ended December 31, 2024 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:


Balance at December 31, 2023	$	5,412	$	1,093	$	6,476	$	108	$	13,089
Provision for (release of) credit losses (1)	485		(70)		(218)		109		306

Balance at December 31, 2024	$	5,897	$	1,023	$	6,258	$	217	$	13,395


(1)			For the year ended December 31, 2024, there was a provision for credit losses of $141,000 for unfunded commitments.

As of December 31, 2025 and 2024, there were no loans to executive officers or directors, or their affiliates.

Summary of Allowance For Credit Loss by Category [Table Text Block]

cass_SummaryOfAllowanceForCreditLossByCategoryTableTextBlock

A summary of the ACL by category for the period ended December 31, 2025 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:
Balance at December 31, 2024	$	5,897	$	1,023	$	6,258	$	217	$	13,395


(Release of) provision for credit losses (1)	(64)		(134)		288		112		202

Balance at December 31, 2025	$	5,833	$	889	$	6,546	$	329	$	13,597


(1)			For the year ended December 31, 2025, there was a provision for credit losses of $146,000 for unfunded commitments.

A summary of the ACL by category for the period ended December 31, 2024 is as follows:


(In thousands)	C&I		CRE		Faith-based CRE		Construction		Total
Allowance for credit losses on loans:


Balance at December 31, 2023	$	5,412	$	1,093	$	6,476	$	108	$	13,089
Provision for (release of) credit losses (1)	485		(70)		(218)		109		306

Balance at December 31, 2024	$	5,897	$	1,023	$	6,258	$	217	$	13,395


(1)			For the year ended December 31, 2024, there was a provision for credit losses of $141,000 for unfunded commitments.

Time Deposits, More than $100,000 Less than $250,000

cass_TimeDepositsMoreThan100000LessThan250000

$ 69,534,000

Time Deposits, More than $100,000 Less than $250,000

cass_TimeDepositsMoreThan100000LessThan250000

54,411,000

Time Deposits, More than $250,000

cass_TimeDepositsMoreThan250000

25,166,000

Time Deposits, More than $250,000

cass_TimeDepositsMoreThan250000

21,677,000

Interest Expense Time Deposits 100000 or More and Less Than 250000

cass_InterestExpenseTimeDeposits100000OrMoreAndLessThan250000

2,175,000

Interest Expense Time Deposits 100000 or More and Less Than 250000

cass_InterestExpenseTimeDeposits100000OrMoreAndLessThan250000

2,290,000

Interest Expense Time Deposits 100000 or More and Less Than 250000

cass_InterestExpenseTimeDeposits100000OrMoreAndLessThan250000

1,411,000

Interest Expense Time Deposits 250000 or More

cass_InterestExpenseTimeDeposits250000OrMore

813,000

Interest Expense Time Deposits 250000 or More

cass_InterestExpenseTimeDeposits250000OrMore

597,000

Interest Expense Time Deposits 250000 or More

cass_InterestExpenseTimeDeposits250000OrMore

$ 417,000

Time Deposits, Weighted Average Interest Rate, Aggregate

cass_TimeDepositsWeightedAverageInterestRateAggregate

100.00%

Time Deposits, Weighted Average Interest Rate, Aggregate

cass_TimeDepositsWeightedAverageInterestRateAggregate

100.00%

Performance Based Stock

cass_PerformanceBasedStock

55,348

Summary of Projected Benefit Obligation [Table Text Block]

cass_SummaryOfProjectedBenefitObligationTableTextBlock

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:


(In thousands)	2025		2024
Projected benefit obligation:
Balance, January 1	$	784	$	87,127

Interest cost	—		4,280
Actuarial (gain) loss	—		(6,047)

Benefits paid	(784)		(84,576)
Balance, December 31	$	—	$	784
Plan assets:
Fair value, January 1	$	2,129	$	86,754
Actual investment return	60		996

Expenses paid from plan assets	(209)		(1,045)
Transfer to defined contributions plan	(1,196)		—
Benefits paid	(784)		(84,576)
Fair value, December 31	$	—	$	2,129
Funded status:
Accrued pension asset (liability)	$	—	$	1,345

A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows:


	December 31,
(In thousands)	2025		2024
Benefit obligation:
Balance, January 1	$	8,812	$	9,501

Interest cost	463		450
Benefits paid	(656)		(382)
Actuarial loss (gain)	176		(757)
Balance, December 31	$	8,795	$	8,812

Transfer to defined contributions plan

cass_TransferToDefinedContributionsPlan

$ (1,196,000)

Transfer to defined contributions plan

cass_TransferToDefinedContributionsPlan

$ 0

Schedule of Assumptions used to Determine Projected Benefit Obligation [Table Text Block]

cass_ScheduleOfAssumptionsUsedToDetermineProjectedBenefitObligationTableTextBlock

For 2024, the projected benefit obligation represents actual benefit payments made during the first quarter of 2025. During the fourth quarter of 2024, the plan liabilities were settled with lump sum payments and the purchase of annuity contracts. The remaining projected benefit obligation at December 31, 2024 represented benefit payments to be made to retirees prior to the administration of the Plan being taken over by the insurance company that assumed the annuity contracts in a sale from the Plan.

For 2024 and 2023, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2023, the Pri-2012 Mortality Table and MP-2022 Mortality Improvement Scale were used.


	2025	2024		2023
Weighted average discount rate	N/A	5.60	%	5.05	%
Rate of increase in compensation levels	N/A	N/A		N/A

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2025, 2024 and 2023, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve.


	2025		2024		2023
Weighted average discount rate	5.15	%	5.50	%	4.95	%
Rate of increase in compensation levels	N/A		N/A		N/A

Schedule of Plan's Pension Costs [Table Text Block]

cass_ScheduleOfPlansPensionCostsTableTextBlock

The Plan’s net periodic pension cost included the following components:


	For the Year Ended December 31,
(In thousands)	2025		2024		2023

Interest cost on projected benefit obligations	—		4,280		4,314
Expected return on plan assets	—		(3,566)		(3,735)
Net amortization and deferral	—		3,458		154
Net periodic pension cost	$	—	$	4,172	$	733

Schedule of Assumptions used to Determine Net Pension Cost [Table Text Block]

cass_ScheduleOfAssumptionsUsedToDetermineNetPensionCostTableTextBlock

The following represent the major assumptions used to determine the net periodic pension cost of the Plan:


	2025	2024		2023
Weighted average discount rate	N/A	5.05	%	5.25	%
Rate of increase in compensation levels	N/A	N/A		N/A
Expected long-term rate of return on assets	N/A	6.00	%	6.00	%

Schedule Of Net Periodic Pension Cost Related To SERP [Table Text Block]

cass_ScheduleOfNetPeriodicPensionCostRelatedToSERPTableTextBlock

Net periodic benefit cost related to the SERP included the following components:


	For the Year Ended December 31,
(In thousands)	2025		2024		2023
Service cost – benefits earned during the year	$	—	$	—	$	—
Interest cost on projected benefit obligations	463		450		472
Net amortization and deferral	—		—		—
Net periodic pension cost	$	463	$	450	$	472

Schedule of Pretax Amounts in Accumulated Other Comprehensive Loss [Table Text Block]

cass_ScheduleOfPretaxAmountsInAccumulatedOtherComprehensiveLossTableTextBlock

The pretax amounts in accumulated other comprehensive loss for the SERP as of December 31, 2025 and 2024 were a net actuarial gain of $855,000 and $1.0 million, respectively.

Amortization of restricted stock bonus

cass_AmortizationOfRestrictedStockBonus

$ 2,400,000

Amortization of restricted stock bonus

cass_AmortizationOfRestrictedStockBonus

2,100,000

Amortization of restricted stock bonus

cass_AmortizationOfRestrictedStockBonus

$ 2,100,000

Percentage of target opportunity for awards to vest

cass_PercentageOfTargetOpportunityForAwardsToVest

0.00%

Percentage of target opportunity for awards to vest

cass_PercentageOfTargetOpportunityForAwardsToVest

150.00%

Outside service fees

cass_OutsideServiceFees

$ 9,531,000

Outside service fees

cass_OutsideServiceFees

8,761,000

Outside service fees

cass_OutsideServiceFees

8,471,000

Total Federal Income Tax

cass_TotalFederalIncomeTax

6,384,000

Total Federal Income Tax

cass_TotalFederalIncomeTax

4,271,000

Total Federal Income Tax

cass_TotalFederalIncomeTax

5,722,000

Total State Income Tax

cass_TotalStateIncomeTax

1,192,000

Total State Income Tax

cass_TotalStateIncomeTax

456,000

Total State Income Tax

cass_TotalStateIncomeTax

1,045,000

Total Foreign Income Tax

cass_TotalForeignIncomeTax

71,000

Total Foreign Income Tax

cass_TotalForeignIncomeTax

160,000

Total Foreign Income Tax

cass_TotalForeignIncomeTax

(193,000)

Deferred Tax Asset, Lease Liability

cass_DeferredTaxAssetLeaseLiability

1,073,000

Deferred Tax Asset, Lease Liability

cass_DeferredTaxAssetLeaseLiability

1,774,000

Deferred Tax Liabilities, Supplemental Retirement Plan

cass_DeferredTaxLiabilitiesSupplementalRetirementPlan

249,000

Deferred Tax Liabilities, Supplemental Retirement Plan

cass_DeferredTaxLiabilitiesSupplementalRetirementPlan

249,000

Accrued Interest Receivable, Fair Value Disclosure

cass_AccruedInterestReceivableFairValueDisclosure

9,170,000

Accrued Interest Receivable, Fair Value Disclosure

cass_AccruedInterestReceivableFairValueDisclosure

9,170,000

Accrued Interest Receivable, Fair Value Disclosure

cass_AccruedInterestReceivableFairValueDisclosure

7,979,000

Accrued Interest Receivable, Fair Value Disclosure

cass_AccruedInterestReceivableFairValueDisclosure

7,979,000

Accounts and drafts payable

cass_AccountsAndDraftsPayable

1,124,858,000

Accounts and drafts payable

cass_AccountsAndDraftsPayable

$ 1,129,610,000

Commercial And Standby Letters Of Credit, Remaining Duration, Term

cass_CommercialAndStandbyLettersOfCreditRemainingDurationTerm

1 year

Commercial And Standby Letters Of Credit, Remaining Duration, Term

cass_CommercialAndStandbyLettersOfCreditRemainingDurationTerm

5 years

Interest and Dividend Income, Including Tax Equivalent Adjustment, Operating