Cass Information Services Inc.
Annual Report 2011

Plain-text annual report

Insight. Expertise. Execution. 2011 SUMMARY ANNUAL REPORT CASS INFORMATION SYSTEMS, INC. Corporate Profile Cass Information Systems, Inc. is the leading provider of transportation, utility and telecom expense management and related business intelligence services, disbursing $32 billion annually on behalf of its clients. With total assets of $1.3 billion, Cass is a business process outsourcer focused on invoice processing, auditing and payment services. Cass is uniquely supported by Cass Commercial Bank, founded in 1906. Today, Cass Commercial Bank is a wholly owned subsidiary, providing sophisticated financial exchange services to the parent organization and its clients. Table of Contents Insight. Expertise. Execution. 1 2011 Year in Review 14 Report of Independent Registered 2 Letter to Shareholders 5 Cass Leadership 6 Insight. Expertise. Execution. 12 Condensed Consolidated Statements of Income 13 Condensed Consolidated Balance Sheets Public Accounting Firm 14 Forward-Looking Statements 15 Board of Directors and Executive Officers 15 Shareholder Information 2011 SUMMARY ANNUAL REPORT 2011 Year in Review For the Year Ended December 31, 2011 Total Net Revenues Net Income Basic Earnings per Common Share Diluted Earnings per Common Share Dividends Paid per Common Share $ $106,535,000 $ $ $ $ $23,009,000 2.23 2.21 0.61 2010 96,217,000 20,310,000 1.98 1.95 0.53 $ $ $ $ $ Total Number of Transactions Processed 42,466,000 38,534,000 Total Dollar Volume Paid $ 31,945,761,000 $ 27,426,336,000 Return on Average Total Shareholders’ Equity Return on Average Assets As of December 31, Total Assets Total Shareholders’ Equity Book Value per Common Share 15.17% 1.77% 2011 14.74% 1.76% 2010 $ 1,319,301,000 $ 1,188,035,000 $ $ 160,548,000 15.50 $ $ 142,094,000 13.76 DILUTED EARNINGS PER COMMON SHARE NET INCOME (in dollars) (in millions of dollars) BOOK VALUE PER SHARE (in dollars) 2.2 2.0 1.7 1.9 1.6 23.0 20.3 17.8 19.0 16.1 15.5 13.8 12.6 9.8 10.5 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 PAGE 1 LETTER TO SHAREHOLDERS Eric Brunngraber President and CEO $23 MILLION NET PROFIT Dear Fellow Shareholders, Record-Setting Performance In 2011, for the second consecutive year, Cass achieved record per- broaden service lines, expand geographically and penetrate new markets formance in total revenues and earnings. In so doing, our Company in business process outsourcing for complex payables. surpassed $100 million in revenues for the first time in its 106-year history. It is a milestone figure that attests to our growing presence and stature in expanding niche markets involving complex payables. Our Financial Highlights In 2011, Cass posted revenues of $106.5 million, a $10.3 million or extensive experience differentiates us in these markets, providing the 10.7% increase over the $96.2 million in revenues recorded in 2010. As insight and expertise necessary for superior execution. noted above, it is the first time that Cass has surpassed the $100 million revenue plateau after more than 100 years in business. Our record-setting operating results were attributable to significant new contract wins, additional services provided to existing customers and a The Company also set a new all-time record for net income, earning recovering global economy. These factors combined to boost both Cass $23 million in 2011 – a 13.3% increase over the $20.3 million earned fee revenue and dollars processed, which increased earning assets and net in 2010. As measured by diluted earnings, 2011 net income was $2.21/ interest income. The market share increase we realized by adding more share compared to $1.95/share in 2010. Profit margins were robust with customers and securing more business from existing clients is particularly a return on average assets of 1.77% and a return on average shareholders’ satisfying. It attests to our ongoing success in truly understanding their equity of 15.17%. These results allowed us to declare a 10% stock dividend challenges and requirements, and then applying our expertise to develop and increase the quarterly cash dividend one cent per share, effectively unique, effective solutions. increasing the dividend by 17%. As longtime shareholders know, investing in the people and technology Cass generates revenue from two main sources – fees for its payables deemed critical to fueling future growth is central to our core strategy and information processing services and net investment income resulting and a key multiplier in the Cass formula for long-term profitability. The from the balances produced by payment processing plus net interest Company remained true to that tradition in 2011 as it set the stage to income earned by our subsidiary, Cass Commercial Bank. PAGE 2 letter to shareholders Continuing to leverage our core systems and competencies during the year, Cass made its presence felt in a new market, medical claim With Profound Gratitude The theme of this year’s shareholder report – “Insight. Expertise. reimbursement. A Cass payment engine that links claims payers and Execution.” – is in large measure a tribute to our employees. Without multiple providers executed more than $200 million in payments in their acumen in discerning client needs, ability to devise solutions support of a major U.S. healthcare management company. That figure is based on sound business principles, and resolve to implement expected to grow substantially in 2012. solutions with utmost efficiency, it would not have been possible for our Company to achieve the record results of 2011. Finally, in January 2012, Cass acquired Waste Reduction Consultants, Inc., one of the fastest-growing providers of environmental expense management While our employees define our Company, our customers are the services in the U.S. Purchasing the Jacksonville, Florida-based firm, which helps reason Cass exists. Cass is privileged to serve a remarkably diverse multi-site companies optimize the cost of waste removal and recycling, array of clients – from multi-national corporations to regional broadens our portfolio of services for controlling facility-related expenses retailers to faith-based organizations. Regardless of their stature or and enhances our national standing as a back-office business processor. standing, our clients challenge us to find new ways to be of greater Looking Ahead Although the U.S. economy is beginning to exhibit stronger signs of recovery, our outlook for 2012 remains cautious. We see debt uncertainty service to them. The innovative solutions we present in response to the needs they express ultimately enhance our capability to serve new customers in the future. in Europe, slow worldwide growth and political indecision in To our board of directors, we extend special thanks for its guidance, Washington, D.C. as drags on today’s tepid U.S. economic recovery. counsel and ongoing support of the core values and culture that make Further, the commitment of the U.S. Federal Reserve to hold interest Cass so unique in the domain of publicly traded companies. rates at historic lows means that Cass net investment income will continue to be negatively impacted. While we are encouraged by our Equally exceptional and rare is the loyalty of so many of our shareholders. demonstrated ability to win new business in a variety of economic climates, It is notable that a number of families and institutions have held Cass an economic environment marked by slow growth and interest rates that stock for decades. hover just above zero percent will present a stiff headwind. Yet, we remain optimistic. Our balance sheet remains strong. It enables us spiritual foundation on which we base our plan. As media reports to continue to invest in the human and physical infrastructure that will detailed throughout 2011, it appears increasingly difficult for a publicly position us to strategically enter into new payables markets, add services and held company to conduct business in a moral and wholly ethical manner. expand geographically. Also robust is the pipeline of new business prospects Yet, that remains the goal to which we aspire. As 2012 unfolds, our for each of our operating units. Fortunate for Cass is that, in a cost- belief in His sovereignty will continue to inspire and guide us. Finally, we express our gratitude to God for providing us with the solid conscious environment such as today’s, our services carry a high value. While the bottom-line benefits of our internal advances may be muted while short-term interest rates remain historically low, when interest rates return to previous norms, Cass will be well-positioned to profit and to reward shareholders with even stronger per-share earnings. Eric H. Brunngraber President and Chief Executive Officer Cass Information Systems, Inc. FROM THE FULLNESS OF HIS GRACE, WE ALL HAVE RECEIVED ONE BLESSING AFTER ANOTHER. JOHN 1:16 PAGE 4 CASS INFORMATION SYSTEMS, INC. $32 BILLION PAID Insight. Expertise. Execution. As a premier business process outsourcer, Cass has built a national reputation for managing complex payables. We’re an organization that partners with some of the largest companies in the world by providing insight, expertise and execution into challenging payment types such as freight, utility, small parcel, telecom, waste and others. In 2011, Cass processed more than 42 million invoices and paid 47,000 separate client vendors. It takes impeccable execution – and “ Cass provides clients with powerful business intelligence tools that can be leveraged in a variety of ways.” extremely sophisticated business systems – to manage such high volume. With over five decades of experience, Cass has amassed deep domain expertise surrounding our products in select back-office process areas, giving our customers confidence to entrust $32 billion in payables to us in 2011, a new record. At the heart of our products’ value proposition is the insight provided to clients from the information harvested from the invoices – insight that drives significant enterprise cost savings through logistics, sourcing, auditing and targeted Insight. With in- depth knowledge of the niches we serve, we bring unique perspective to everything we do. equipment investment – insight that supports sustainability initiatives – insight that empowers employees to help their organization curtail resource consumption – insight that makes Cass a leader. Strategic Initiatives in 2011 Cass recorded another year of exceptional growth in the transportation marketplace. We exceeded our previous high of freight bills processed, and for the first time, Cass reached $20 billion in payments made to carriers on behalf of our customers. Another milestone was reached with the release of a new global processing system and the opening of our European office in Breda, The Netherlands. In addition to Europe, we have added business in Mexico on our global platform and expect that South America will be the next opportunity in our global expansion plans. We continue to focus on automation and scalability that will allow our customers to economically expand their relationship with us to gain processing control and visibility to their global supply chain expenses. Cass Transportation Indexes In the process of managing $20 billion in payments to freight carriers, we extract information that is exceedingly valuable to our customers in managing their supply chain expenses. When this information is aggregated, it becomes a useful tool for transportation economists who PAGE 6 2011 SUMMARY ANNUAL REPORT gauge overall economic trends in business growth and carrier pricing. In 2011, Cass began publishing two new mode-specific freight cost Minimizing Environmental Impact Automation and the elimination of paper continue to be a major indexes that offer reliable market indicators. The Cass Truckload initiative. Where we cannot process completely electronically, we have Linehaul Index™ and Cass Intermodal Linehaul Index™ measure developed unique processes that combine electronic images of invoices changes in U.S. domestic freight rates. and automation that have proven very successful. With the help of the carrier community, this approach is gaining momentum as a preferred In 1990, Cass began publishing its first barometer, the Cass Freight Index™, which tracks all modes of North American freight. The index method of processing freight bills to eliminate paper transactions. Our efforts were recognized with our third Green Award by Supply & is based on Cass clients’ monthly shipments. Like same-store sales Demand Chain Executive magazine. Cass’ products continue to be a key comparisons, the customer data is normalized to enable a statistically component of sustainability initiatives for large companies throughout valid comparison of freight bills (shipment volume) and freight dollars the U.S. With data warehouses built from accurately entered invoices, from one period to another. Cass industry data has been well-received and insight provided by sophisticated portals and skilled analysts, by the media, economists, financial analysts and others. Bloomberg, decisions are made daily to minimize the environmental impact of CNBC and The Journal of Commerce are among the media outlets running a business. that have reported Cass Index results to describe transportation industry trends. Total Invoices Processed Total Dollars Paid 42.5 million 38.5 million 34.6 million $ 31.9 billion $ 27.4 billion $ 23.7 billion 2009 2010 2011 2009 2010 2011 Environmental Cost Management In January 2012, Cass acquired Waste Reduction Consultants, Inc., one of the fastest-growing providers of environmental expense management services. The acquisition adds to Cass’ industry-leading suite of services for controlling facility-related expenses and accelerates our leadership position as a back-office business processor. Waste Reduction Consultants assists clients in effectively managing the storage, collection and disposal or recycling of a myriad of waste material types, including medical waste. Combining its proprietary technology platform with the knowledge gained from managing thousands of waste service plans, Waste Reduction Consultants helps multi-location businesses control their expenses through information-driven optimization and procurement of waste removal services. By automating the auditing and processing of waste invoices and managing the dispatch of on-demand hauling, Waste Reduction Consultants helps its clients maintain optimal service efficiencies. PAGE 7 PAGE 7 CASS INFORMATION SYSTEMS, INC. 106 YEARS IN BUSINESS Expertise. Our knowledge is unmatched by any other business process outsourcer. Utility Invoices Processed Freight Invoices Processed 13.4 million 12.2 million 11.5 million 29.0 million 26.3 million 23.1 million 2009 2010 2011 2009 2010 2011 No.1 for Client Satisfaction In 2011, Cass received exceptional client feedback through an independent study of large enterprises using telecom expense management (TEM) services. Nearly 1,000 professionals at more than 450 organizations participated in the study conducted by AOTMP, a leading industry authority on driving efficiency and performance into enterprise fixed and mobile telecom environments. Participants were asked to rate their TEM providers on a number of service components including invoice processing, reporting & analysis, auditing, optimization, asset inventory management, and service inventory management. Cass outperformed all other TEM business process outsourcers. Not only did Cass clients indicate a high level of satisfaction, but the highest ratings came from senior management in these organizations. These study results directly reflect our highest organizational priorities: delivering results while serving our clients with accuracy, efficiency and responsiveness. PAGE 8 2011 SUMMARY ANNUAL REPORT Executing New Processes Less than a day. That’s been the goal – and the result – for turning around Cass excels in client-focused solutions. A large regional banking company wanted Cass to provide insight into fees paid for false alarms, a utility or telecom invoice at Cass for years. In the world of complex which are generally levied by cities when police or fire departments are payables outsourcing, processing speed is a critical component of success, dispatched erroneously, either by equipment malfunction or human and Cass delivered in 2011 with an average receipt-to-bill entry of .68 error. These fees/fines can easily reach $100 per occurrence. By adding business days. And we are not done yet. A recent process refinement these bills to the facility-payables solution at Cass, and aided by reports put in production for a subset of clients in 2011 ensures that 100% of that highlight locations incurring the charges, the customer gains visibility bills have key billing determinants entered within 12 hours of receipt. and control. In total, Cass processes and pays invoices for more than This allows intelligence-driven scheduling of downstream data capture, 50 discrete services related to facilities across its customer base. prioritizing keying by due date and/or invoice amount and by service type. Executing new processes such as these continues to drive quality improvement and further cut into unnecessary late fees. Wireless Optimization Delivers Value Wireless expense management continues to drive double-digit growth of the telecom product. Unlike competitors that have expanded “ Cass helps clients visualize the true costs associated with various steps in the supply chain.” As another example horizontally through acquisition, Cass’ telecom wireless product was of Cass leveraging its developed internally, leveraging Cass’ expertise in the wireless arena. core business systems Just as importantly, Cass’ portal seamlessly integrates wired and wireless and expertise, it has expense management, inventory controls, and usage reporting with a continued to build a single application and single logon. niche product in medical claim reimbursement. It Optimization is a key value proposition of Cass’ wireless expense provides a sophisticated management service. Wireless carriers compete intensely to capture large payment engine that enterprise accounts. However, making sure each employee is on the correct links claims payers and plan, or contributing the optimal amount of voice and data services to multiple providers in shared pools, requires continuous monitoring and management of actual support of one of the largest healthcare revenue and payment cycle consumption. Unfortunately, choosing the right plan is only the start. Very management companies in the U.S. Claims worth more than $200 often, subsequent invoices don’t accurately reflect the newly negotiated rate. million were paid via this product in 2011, a number that is expected Given the volume of invoices and the complexity of rate structures, these to grow substantially in 2012 as more providers adopt this electronic errors aren’t easily identified without the right automation and business method of payment that eliminates the need for paper checks and process expertise. Cass’ systems and service teams execute time-tested facilitates reconciliation of accounts receivable. procedures to ensure the recovery of overcharges. Client-Focused Solutions Utility customers use Expense$mart®, Cass’ industry-leading business intelligence platform, and services of skilled energy engineers in its For wireless expense management clients, Cass integrates with customers’ Human Resource Information Systems (HRIS). HRIS integration enables Cass to keep an accurate roster of employees with partner network to cost-effectively deploy capital toward making wireless devices, enabling near real-time management of employee their stores or plants more energy efficient and to measure the results of those investments. Freight customers use CassPort®, our portal that consolidates logistical data into an organized online analytical turnover and change. Reporting can be delivered via email to managers, supervisors and employees (with hierarchical roll-ups of direct reports, as well) providing insight into equipment, usage and costs. New devices processing (OLAP) cube, for sophisticated cost-reduction analysis. can be provisioned through the portal, using customer-specific business Customers will also rely on Cass’ expertise in waste reduction to remove rules based on an employee’s role in the organization. HRIS integration items from their waste stream, spurring recycling and lowering pressure also allows automated workflow such as the routing of service requests on landfills. and accurate chargeback of wireless costs to appropriate cost centers. PAGE 9 CASS INFORMATION SYSTEMS, INC. 47 THOUSAND VENDORS Execution. We execute back- office processes with speed, accuracy and reliability. Utility Dollars Paid Freight Dollars Paid $ 10.7 billion $ 10.5 billion $ 9.7 billion $ 20.6 billion $ 17.0 billion $ 14.0 billion 2009 2010 2011 2009 2010 2011 We Help Cass Clients Leverage Their ERP Systems In 2011, Cass worked on numerous system integrations, allowing our clients to further leverage their investments in enterprise resource planning solutions such as SAP and Oracle, as well as other systems. We integrate with our clients’ financial applications to provide a seamless connection to their enterprise platform. Cass experts apply their in-depth understanding of cost accounting to create custom business rules for sophisticated cost allocations. Automated general ledger accounting eliminates manual coding and data entry. Automated accounting processes produce extraordinary time savings and increased information accuracy, however, these benefits are predicated on Cass’ systems integration knowledge and ability to address the sophistication of our clients’ business logic. PAGE 10 PAGE 10 2011 SUMMARY ANNUAL REPORT Key Role of Cass Commercial Bank Cass Commercial Bank is embarking on its 106th year of providing over the past two years. Perhaps no area represents Cass insight and experience more than our over 20-year commitment to lending and expertise and banking services for its clients. From its beginning as a expertise in the faith-based community. Working together, our office one-location bank on the north side of downtown St. Louis, the bank in Orange County, California, our new presence in Colorado and has evolved into a critical risk management role within the Company our St. Louis/Eastern U.S. team provide national coverage for serving while continuing to serve businesses and faith-based organizations. congregations and faith-based organizations. The bank serves as both the primary asset generator and risk manager The bank also plays a pivotal role in providing execution for financial for the corporate financial assets – loans and investments. We have had transaction services both for our bank clients and importantly for Cass’ a favorable loan loss experience for many years – especially during the own payables services. As a member of the Federal Reserve System, economic and financial crisis of the past four years. Our losses have been we processed payments of $32 billion for Cass alone to over 47,000 less than 1/10th those experienced by our peer group. As a result, the bank suppliers. This high level of execution capability provides efficient has continued to provide loans and expertise to our customers through service to our Company internally and leading-edge financial service this difficult economic period. Loans have grown an average of over 8% to our bank clients. a year for the past three “ Delivering what we promise is a cultural value at Cass.” years. We have identified Insight. Expertise. Execution. It’s what Cass is all about. Our specialized specific market niches domain expertise, our insight from years in complex payables and our where we can bring our skilled execution differentiate Cass from others in the marketplace. insight and expertise In addition to driving customer value, we believe these traits create as a trusted advisor. In shareholder value. We leverage these attributes to win new business, addition to our long satisfy our existing base of clients and even drive costs out of our own history of serving private operations. Cass insight, expertise and execution – we believe these companies in greater characteristics position us well for whatever we confront during our St. Louis, we also provide specific lending expertise to McDonald’s 106th year in business. ■ restaurant franchises – a key source of growth in our loan portfolio Strong Bank Payment Operations As a wholly owned subsidiary of Cass Information Systems, Inc., Cass Commercial Bank provides the investment management expertise and financial exchange infrastructure that protects the Company’s assets and supports its payment operations – the movement of $32 billion to 47,000 suppliers in 2011. We process payments through our bank’s operations center, providing cost efficiencies that benefit our customers and provide competitive advantage. Cass delivers payment and remittance data electronically, executes payment timing with precision, and consolidates payments to suppliers. A single automated clearing house transfer of several million dollars to one supplier might include several payments on behalf of multiple Cass clients. Such intricate payment processing creates efficiencies for Cass, its clients and their suppliers. PAGE 11 PAGE 11 CASS INFORMATION SYSTEMS, INC. Condensed Consolidated Statements of Income (in thousands of dollars, except share and per share information) For the Year Ended December 31, 2011 2010 2009 REVENUES Payment and Processing Net Investment Income Gain on Sales of Securities Other Total Net Revenues EXPENSES Salaries and Employee Benefits Occupancy Equipment Other Total Expenses Income Before Income Tax Expense Income Tax Expense Net Income EARNINGS PER SHARE Basic Diluted WEIGHTED AVERAGE SHARES OUTSTANDING Basic Diluted PAGE 12 $ 60,688 $ 54,183 $ 48,665 43,711 43 2,093 106,535 56,573 2,318 3,525 12,613 75,029 31,506 8,497 40,071 — 1,963 96,217 51,368 2,485 3,561 10,870 68,284 27,933 7,623 36,681 697 1,876 87,919 50,614 2,396 3,348 10,027 66,385 21,534 5,405 $ 23,009 $ 20,310 $ $16,129 $ 2.23 2.21 $ 1.98 1.95 $ 1.60 1.57 10,297,244 10,432,382 10,268,811 10,392,333 10,072,340 10,311,476 2011 SUMMARY ANNUAL REPORT Condensed Consolidated Balance Sheets (in thousands of dollars, except share and per share information) As of December 31, ASSETS Cash and Cash Equivalents Loans and Investments, Net Premises and Equipment, Net Other Assets Total Assets LIABILITIES Deposits Accounts and Drafts Payable Other Liabilities Total Liabilities SHAREHOLDERS’ EQUITY 2011 2010 $ 235,962 $ 138,929 969,223 9,587 104,529 961,311 9,617 78,178 $1,319,301 $1,188,035 $ 548,368 $ 518,590 595,201 15,184 516,107 11,244 1,158,753 1,045,941 Preferred Stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued – – Common Stock, par value $.50 per share; 20,000,000 shares authorized; 10,890,163 and 9,949,324 shares issued at December 31, 2011 and 2010, respectively Additional Paid in Capital Retained Earnings Common Shares in Treasury, at cost (532,233 and 561,533 shares at December 31, 2011 and 2010, respectively) Accumulated Other Comprehensive Loss Total Shareholders’ Equity Total Liabilities and Shareholders’ Equity 5,445 80,971 89,853 4,975 46,653 107,263 (12,968) (13,549) (2,753) 160,548 (3,248) 142,094 $1,319,301 $1,188,035 PAGE 13 CASS INFORMATION SYSTEMS, INC. Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders of Cass Information Systems, Inc. We have audited, in accordance with the standards of the Public In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairly stated, in all Company Accounting Oversight Board (United States), the material respects, in relation to the consolidated financial statements consolidated balance sheets of Cass Information Systems, Inc. and from which it has been derived. subsidiaries (the Company) as of December 31, 2011 and 2010, and the related consolidated statements of income, shareholders’ equity and comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2011 (not presented herein); and in our report dated March 9, 2012, we expressed an unqualified St. Louis, Missouri March 9, 2012 opinion on those consolidated financial statements. Forward-Looking Statements Factors That May Affect Future Results This report may contain or incorporate by reference forward-looking performance to be materially different from expected performance statements made pursuant to the safe harbor provisions of Section summarized in the forward-looking statements. These risks, 27A of the Securities Act of 1933, as amended, and Section 21E uncertainties and other factors are discussed in Part I, Item 1A, “Risk of the Securities Exchange Act of 1934, as amended. Although we Factors” section of the Company’s Annual Report on Form 10-K, believe that, in making any such statements, our expectations are filed with the Securities and Exchange Commission. We undertake no based on reasonable assumptions, forward-looking statements are not obligation to publicly update or revise any forward-looking statements guarantees of future performance and involve risks, uncertainties and to reflect changed assumptions, the occurrence of anticipated or other factors beyond our control, which may cause future unanticipated events, or changes to future results over time. PAGE 14 2011 SUMMARY ANNUAL REPORT Board of Directors Executive Officers ERIC H. BRUNNGRABER President & Chief Executive Officer P. STEPHEN APPELBAUM Executive Vice President & Chief Financial Officer HARRY M. MURRAY Executive Vice President, Corporate Development JOHN F. PICKERING President, Transportation Information Services GARY B. LANGFITT President, Expense Management Services ROBERT J. MATHIAS President & Chief Operating Officer, Cass Commercial Bank LAWRENCE A. COLLETT Chairman of the Board K. DANE BROOKSHER Retired Chairman & Chief Executive Officer, ProLogis ERIC H. BRUNNGRABER President & Chief Executive Officer BRYAN S. CHAPELL President, Covenant Theological Seminary ROBERT A. EBEL Chief Executive Officer, Universal Printing Company BENJAMIN F. EDWARDS, IV Chairman, Chief Executive Officer & President, Benjamin F. Edwards & Company JOHN L. GILLIS, JR. Retired, Armstrong Teasdale LLP WAYNE J. GRACE Retired Managing Director, UHY Advisors MO, Inc. JAMES J. LINDEMANN Executive Vice President, Emerson Electric Co. RANDALL L. SCHILLING President & Chief Executive Officer, Candlestiq ANDREW J. SIGNORELLI President, Hope Educational & Research Center FRANKLIN D. WICKS, JR., PH. D. Executive Vice President & President, Research S.B.U., Sigma-Aldrich Shareholder Information CORPORATE HEADQUARTERS Cass Information Systems, Inc. 13001 Hollenberg Drive Bridgeton, Missouri 63044 314.506.5500 cass@cassinfo.com www.cassinfo.com COMMON STOCK The company’s common stock trades on the NASDAQ stock market under the symbol CASS. ANNUAL MEETING The annual meeting of shareholders will be held Monday, April 16, 2012 at 11 a.m. at the Charles F. Knight Executive Education and Conference Center, Olin Business School at Washington University, St. Louis, Missouri. INVESTOR RELATIONS Security analysts, investment managers and others seeking financial information about the company should contact: TRANSFER AGENT Shareholders with inquiries regarding stock accounts, dividends, change of ownership or address, lost certificates or consolidation of accounts should contact: Investor Relations Department Cass Information Systems, Inc. 13001 Hollenberg Drive Bridgeton, Missouri 63044 314.506.5500 10-K AND OTHER PUBLICATIONS A copy of the company’s Form 10-K, as filed with the Securities and Exchange Commission, will be furnished without charge upon written request to the address above or from the company’s website at: www.cassinfo.com Computershare Shareowner Services LLC 480 Washington Boulevard Jersey City, New Jersey 07310 866.323.8170 www.bnymellon.com/shareowner/equityaccess INDEPENDENT AUDITORS KPMG LLP 10 South Broadway, Suite 900 St. Louis, Missouri 63102 PAGE 15 13001 HOLLENBERG DRIVE BRIDGETON, MISSOURI 63044 314.506.5500 

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