Cass Information Systems, Inc. (Nasdaq: CASS) reported financial results for the third quarter of fiscal 2026, highlighting a record diluted earnings per share and a significant increase in its quarterly dividend. The company announced net income of $10.6 million for the quarter, representing a 16.1% increase compared to the third quarter of 2025. Diluted earnings per share rose to $0.81, a 19.1% increase year-over-year.
The company’s return on average equity stood at 17.46% for the quarter. A key driver of the results was the expansion of the net interest margin to 4.02%, up from 3.87% in the prior year. This improvement was attributed to increases in the average yield on loans and investment securities, combined with a decrease in the average cost of total deposits.
Revenues for the quarter increased by $2.6 million, or 5.3%. This growth was fueled by an 8.9% increase in net interest income and an 11.8% rise in financial fees. The company also noted a 14.5% increase in transportation dollar volumes, driven by rising contract freight rates and fuel surcharges.
In a separate announcement, the company’s Board of Directors declared a quarterly dividend of $0.34 per share. This represents a $0.02 increase over the previous quarter and is payable on December 14, 2026, to shareholders of record on December 4, 2026.
The company also provided an outlook for the remainder of fiscal 2026 and 2027. Management anticipates higher operating expense growth in the fourth quarter of 2026 and 2027 due to investments in personnel and technology, including AI-enabled systems. However, the company remains optimistic about revenue prospects, citing sustained higher interest rates, rising freight rates, and increased sales activity around its CassPay platform.
