Pathward Financial, Inc.™ Announces Results for 2022 Fiscal Third Quarter
Pathward Financial (CASH) reported fiscal Q3 2022 net income of $22.4 million or $0.76 per share, down from $38.7 million or $1.21 per share year-over-year. Excluding $6.5 million in rebranding and separation expenses, adjusted net income was $27.3 million or $0.93 per share. Total revenue decreased 4% to $126.1 million. Net interest income grew 5% to $72.2 million, with a net interest margin increase to 4.76%. The company reinstated guidance for FY 2023 EPS between $5.25 and $5.75.
- Adjusted net income of $27.3 million or $0.93 per share excluding one-time expenses.
- Net interest income increased by 5% to $72.2 million.
- Reinstated guidance for FY 2023 GAAP EPS in the range of $5.25 to $5.75.
- Net interest margin improved to 4.76%.
- Net income decreased by 42% year-over-year.
- Total revenue decreased by $4.8 million or 4% compared to the prior year.
- Reduction in renewable energy loan financing from $13.5 million to $4.4 million in Q3.
- Noninterest expense increased by 19% to $96.7 million.
- Fiscal 2022 Third Quarter Net Income of
- Reinstates Guidance, With Fiscal 2023
CEO
“As we potentially enter a recessionary period, we believe
Business Development Highlights for the 2022 Fiscal Third Quarter
-
On
July 13, 2022 , the Company announced it changed its name toPathward Financial , Inc.™, and its bank subsidiary, MetaBank®, N.A., changed its name to Pathward™, N.A. ("Pathward" or the "Bank"). Certain changes were made immediately, with a full transition to Pathward expected by the end of this calendar year, including the launch of a new brand identity and website. The Company recognized of pre-tax expenses related to rebranding efforts during the third quarter of fiscal 2022. The Company continues to estimate total rebranding expenses will range between$3.4 million to$15 million .$20 million
-
As part of the Company's priority to work with partners that use a broader suite of the capabilities and multi-product solutions that it provides, the Company will not be renewing its agreements with
Liberty Tax andJackson Hewitt . This change is expected to boost operational efficiencies over time. Taxpayer advance volumes are expected to be reduced by approximately30% next year. No significant impact is anticipated to refund transfer volumes. During the quarter, the Company recognized of pre-tax one-time partner termination related expenses.$1.2 million
Financial Highlights for the 2022 Fiscal Third Quarter
-
Total revenue for the third quarter was
, a decrease of$126.1 million , or$4.8 million 4% , compared to the same quarter in fiscal 2021, primarily driven by a decrease in noninterest income, partially offset by an increase in interest income.
-
Net interest income for the third quarter was
, an increase of$72.2 million compared to$3.7 million in the third quarter last year.$68.5 million
-
Net interest margin ("NIM") increased to
4.76% for the third quarter from3.75% during the same period of last year. The prior year period was impacted by excess cash associated with the Company's participation in theU.S. Treasury Department's Economic Impact Program.
-
Total gross loans and leases at
June 30, 2022 increased , to$188 million , or$3.68 billion 5% , compared toJune 30, 2021 and decreased , or$43 million 1% , when compared toMarch 31, 2022 . The increase compared to the prior year quarter was primarily driven by growth in our commercial finance portfolio, partially offset by the sale of all remaining community banking loans during the fiscal 2022 first quarter. The primary driver for the decrease on a linked quarter basis was the seasonal decline in tax services loans.
-
The Company originated
in aggregate principal of renewable energy loan financing for the third quarter of fiscal 2022, resulting in$4.4 million in total net investment tax credits. During the third quarter of fiscal 2021. the Company originated$1.0 million in aggregate principle of renewable energy loan financing resulting in$13.5 million in total net investment tax credits.$3.4 million
-
On
May 15, 2022 , the Company retired the outstanding subordinated debt, which was due$75.0 million August 15, 2026 . As a result of the retirement, the Company will save more than of interest expense per year.$4 million
-
The Company resumed share repurchases on
July 1, 2022 , and throughJuly 22, 2022 , the Company repurchased 305,700 shares of common stock at an average share price of . There are 4,562,477 shares available for repurchase under the common stock share repurchase program announced during the fourth quarter of fiscal year 2021.$40.74
-
The Company reinstated guidance and expects fiscal year 2023 GAAP earnings per share to be in the range of
and$5.25 . The Company expects fiscal year 2023 adjusted earnings per share to be in the range of$5.75 and$5.10 . See non-GAAP reconciliation table below.$5.60
Tax Season Recap
During the third quarter of fiscal 2022, total tax services product revenue was
While taxpayer advances came in below the Company's expectations, overall refund transfer revenues grew
Net Interest Income
Net interest income for the third quarter of fiscal 2022 was
The third quarter average outstanding balance of loans and leases increased
Fiscal 2022 third quarter NIM increased to
The Company's cost of funds for all deposits and borrowings averaged
Noninterest Income
Fiscal 2022 third quarter noninterest income decreased to
Noninterest Expense
Noninterest expense increased
Income Tax Expense
The Company recorded income tax expense of
The Company originated
Outlook
The following forward-looking statements reflect the Company’s expectations as of the date of this release, and are subject to substantial uncertainty. The Company's results may be materially affected by many factors, such as changes in economic conditions and customer demand, changes in interest rates, inflation, uncertainty regarding the COVID-19 pandemic, and other factors detailed below under “Forward-looking Statements.” Because the Company’s reported GAAP results include certain income and expense items that are not expected to continue indefinitely and may include additional elements that the Company cannot currently predict, the Company is also providing guidance on a non-GAAP or “adjusted” basis.
The Company reinstated guidance and expects fiscal year 2022 GAAP earnings per share to be in the range of
When adjusting for gain on sale of trademarks, rebrand related expenses, and separation related expenses, the Company expects fiscal year 2022 adjusted earnings per share to be in the range of
Investments, Loans and Leases
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Total investments |
$ |
2,000,400 |
|
|
$ |
2,090,765 |
|
|
$ |
1,833,733 |
|
|
$ |
1,921,568 |
|
|
$ |
1,981,852 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
||||||||||
Consumer credit products |
|
23,710 |
|
|
|
23,670 |
|
|
|
20,728 |
|
|
|
23,111 |
|
|
|
12,582 |
|
SBA/ |
|
43,861 |
|
|
|
7,740 |
|
|
|
15,454 |
|
|
|
33,083 |
|
|
|
57,208 |
|
Community bank |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,115 |
|
Total loans held for sale |
|
67,571 |
|
|
|
31,410 |
|
|
|
36,182 |
|
|
|
56,194 |
|
|
|
87,905 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
1,047,764 |
|
|
|
1,111,076 |
|
|
|
1,038,378 |
|
|
|
961,019 |
|
|
|
920,279 |
|
Asset based lending |
|
402,506 |
|
|
|
382,355 |
|
|
|
337,236 |
|
|
|
300,225 |
|
|
|
263,237 |
|
Factoring |
|
408,777 |
|
|
|
394,865 |
|
|
|
402,972 |
|
|
|
363,670 |
|
|
|
320,629 |
|
Lease financing |
|
218,789 |
|
|
|
235,397 |
|
|
|
245,315 |
|
|
|
266,050 |
|
|
|
282,940 |
|
Insurance premium finance |
|
481,219 |
|
|
|
403,681 |
|
|
|
385,473 |
|
|
|
428,867 |
|
|
|
417,652 |
|
SBA/ |
|
215,510 |
|
|
|
214,195 |
|
|
|
209,521 |
|
|
|
247,756 |
|
|
|
263,709 |
|
Other commercial finance |
|
173,338 |
|
|
|
173,260 |
|
|
|
178,853 |
|
|
|
157,908 |
|
|
|
118,081 |
|
Commercial finance |
|
2,947,903 |
|
|
|
2,914,829 |
|
|
|
2,797,748 |
|
|
|
2,725,495 |
|
|
|
2,586,527 |
|
Consumer credit products |
|
152,106 |
|
|
|
171,847 |
|
|
|
173,343 |
|
|
|
129,251 |
|
|
|
105,440 |
|
Other consumer finance |
|
107,135 |
|
|
|
111,922 |
|
|
|
144,412 |
|
|
|
123,606 |
|
|
|
122,316 |
|
Consumer finance |
|
259,241 |
|
|
|
283,769 |
|
|
|
317,755 |
|
|
|
252,857 |
|
|
|
227,756 |
|
Tax services |
|
41,627 |
|
|
|
85,999 |
|
|
|
100,272 |
|
|
|
10,405 |
|
|
|
41,268 |
|
Warehouse finance |
|
434,748 |
|
|
|
441,496 |
|
|
|
466,831 |
|
|
|
419,926 |
|
|
|
335,704 |
|
Community banking |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
199,132 |
|
|
|
303,984 |
|
Total loans and leases |
|
3,683,519 |
|
|
|
3,726,093 |
|
|
|
3,682,606 |
|
|
|
3,607,815 |
|
|
|
3,495,239 |
|
Net deferred loan origination costs |
|
5,047 |
|
|
|
4,097 |
|
|
|
1,655 |
|
|
|
1,748 |
|
|
|
1,431 |
|
Total gross loans and leases |
|
3,688,566 |
|
|
|
3,730,190 |
|
|
|
3,684,261 |
|
|
|
3,609,563 |
|
|
|
3,496,670 |
|
Allowance for credit losses |
|
(75,206 |
) |
|
|
(88,552 |
) |
|
|
(67,623 |
) |
|
|
(68,281 |
) |
|
|
(91,208 |
) |
Total loans and leases, net |
$ |
3,613,360 |
|
|
$ |
3,641,638 |
|
|
$ |
3,616,638 |
|
|
$ |
3,541,282 |
|
|
$ |
3,405,462 |
|
The Company's investment security balances at
Total gross loans and leases totaled
Commercial finance loans, which comprised
As of
When excluding PPP loans and the community bank portfolio, total loans and leases grew
Asset Quality
The Company’s allowance for credit losses ("ACL") totaled
The
The following table presents the Company's ACL as a percentage of its total loans and leases.
|
As of the Period Ended |
|||||||||
(Unaudited) |
2022 |
2022 |
2021 |
2021 |
2021 |
|||||
Commercial finance |
1.56 |
% |
1.66 |
% |
2.04 |
% |
1.77 |
% |
1.73 |
% |
Consumer finance |
2.44 |
% |
3.18 |
% |
2.70 |
% |
2.91 |
% |
3.80 |
% |
Tax services |
54.29 |
% |
35.76 |
% |
1.60 |
% |
0.02 |
% |
58.99 |
% |
Warehouse finance |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
Community banking |
— |
% |
— |
% |
— |
% |
6.16 |
% |
4.36 |
% |
Total loans and leases |
2.04 |
% |
2.38 |
% |
1.84 |
% |
1.89 |
% |
2.61 |
% |
Total loans and leases excluding tax services |
1.44 |
% |
1.59 |
% |
1.84 |
% |
1.90 |
% |
1.94 |
% |
The Company's ACL as a percentage of total loans and leases decreased to
Activity in the allowance for credit losses for the periods presented was as follows.
(Unaudited) |
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
(Dollars in thousands) |
2022 |
2022 |
2021 |
|
2022 |
2021 |
||||||||||
Beginning balance |
$ |
88,552 |
|
$ |
67,623 |
|
$ |
98,892 |
|
|
$ |
68,281 |
|
$ |
56,188 |
|
Adoption of CECL accounting standard |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
12,773 |
|
Provision (reversal of) - tax services loans |
|
(166 |
) |
|
28,972 |
|
|
4,685 |
|
|
|
28,093 |
|
|
32,819 |
|
Provision (reversal of) - all other loans and leases |
|
(982 |
) |
|
3,183 |
|
|
(36 |
) |
|
|
3,386 |
|
|
8,294 |
|
Charge-offs - tax services loans |
|
(7,998 |
) |
|
— |
|
|
(9,505 |
) |
|
|
(8,253 |
) |
|
(9,505 |
) |
Charge-offs - all other loans and leases |
|
(6,346 |
) |
|
(12,415 |
) |
|
(5,360 |
) |
|
|
(23,366 |
) |
|
(15,284 |
) |
Recoveries - tax services loans |
|
6 |
|
|
184 |
|
|
17 |
|
|
|
2,757 |
|
|
1,027 |
|
Recoveries - all other loans and leases |
|
2,140 |
|
|
1,005 |
|
|
2,515 |
|
|
|
4,308 |
|
|
4,896 |
|
Ending balance |
$ |
75,206 |
|
$ |
88,552 |
|
$ |
91,208 |
|
|
$ |
75,206 |
|
$ |
91,208 |
|
The Company recognized a reversal of provision for credit losses of
The Company's past due loans and leases were as follows for the periods presented.
As of |
Accruing and Nonaccruing Loans and Leases |
|
Nonperforming Loans and Leases |
|||||||||||||||||||||||
(Dollars in thousands) |
30-59 Days Past Due |
|
60-89 Days Past Due |
|
> 89 Days Past Due |
|
Total Past Due |
|
Current |
|
Total Loans and Leases Receivable |
|
> 89 Days Past Due and Accruing |
|
Nonaccrual Balance |
|
Total |
|||||||||
Loans held for sale |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
67,571 |
|
$ |
67,571 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
15,426 |
|
|
4,155 |
|
|
9,195 |
|
|
28,776 |
|
|
2,919,127 |
|
|
2,947,903 |
|
|
3,519 |
|
|
19,603 |
|
|
23,122 |
Consumer finance |
|
3,808 |
|
|
3,476 |
|
|
3,501 |
|
|
10,785 |
|
|
248,456 |
|
|
259,241 |
|
|
3,501 |
|
|
— |
|
|
3,501 |
Tax services |
|
— |
|
|
41,627 |
|
|
— |
|
|
41,627 |
|
|
— |
|
|
41,627 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
434,748 |
|
|
434,748 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
19,234 |
|
|
49,258 |
|
|
12,696 |
|
|
81,188 |
|
|
3,602,331 |
|
|
3,683,519 |
|
|
7,020 |
|
|
19,603 |
|
|
26,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
19,234 |
|
$ |
49,258 |
|
$ |
12,696 |
|
$ |
81,188 |
|
$ |
3,669,902 |
|
$ |
3,751,090 |
|
$ |
7,020 |
|
$ |
19,603 |
|
$ |
26,623 |
As of |
Accruing and Nonaccruing Loans and Leases |
|
Nonperforming Loans and Leases |
|||||||||||||||||||||||
(Dollars in thousands) |
30-59 Days Past Due |
|
60-89 Days Past Due |
|
> 89 Days Past Due |
|
Total Past Due |
|
Current |
|
Total Loans and Leases Receivable |
|
> 89 Days Past Due and Accruing |
|
Nonaccrual Balance |
|
Total |
|||||||||
Loans held for sale |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
31,410 |
|
$ |
31,410 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
24,631 |
|
|
2,574 |
|
|
11,994 |
|
|
39,199 |
|
|
2,875,630 |
|
|
2,914,829 |
|
|
5,701 |
|
|
25,327 |
|
|
31,028 |
Consumer finance |
|
5,829 |
|
|
5,475 |
|
|
4,814 |
|
|
16,118 |
|
|
267,651 |
|
|
283,769 |
|
|
4,814 |
|
|
— |
|
|
4,814 |
Tax services |
|
830 |
|
|
— |
|
|
— |
|
|
830 |
|
|
85,169 |
|
|
85,999 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
441,496 |
|
|
441,496 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
31,290 |
|
|
8,049 |
|
|
16,808 |
|
|
56,147 |
|
|
3,669,946 |
|
|
3,726,093 |
|
|
10,515 |
|
|
25,327 |
|
|
35,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
31,290 |
|
$ |
8,049 |
|
$ |
16,808 |
|
$ |
56,147 |
|
$ |
3,701,356 |
|
$ |
3,757,503 |
|
$ |
10,515 |
|
$ |
25,327 |
|
$ |
35,842 |
The Company's nonperforming assets at
The Company's nonperforming loans and leases at
The Company has various portfolios of consumer lending and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.
|
Asset Classification |
|||||||||||
(Dollars in thousands) |
Pass |
Watch |
Special Mention |
Substandard |
Doubtful |
Total |
||||||
As of |
|
|
|
|
|
|
||||||
Commercial finance |
$ |
2,182,712 |
$ |
462,392 |
$ |
125,249 |
$ |
172,696 |
$ |
4,854 |
$ |
2,947,903 |
Warehouse finance |
|
434,748 |
|
— |
|
— |
|
— |
|
— |
|
434,748 |
Total loans and leases |
$ |
2,617,460 |
$ |
462,392 |
$ |
125,249 |
$ |
172,696 |
$ |
4,854 |
$ |
3,382,651 |
|
Asset Classification |
|||||||||||
(Dollars in thousands) |
Pass |
Watch |
Special Mention |
Substandard |
Doubtful |
Total |
||||||
As of |
|
|||||||||||
Commercial finance |
$ |
2,171,206 |
$ |
430,240 |
$ |
141,497 |
$ |
167,882 |
$ |
4,004 |
$ |
2,914,829 |
Warehouse finance |
|
441,496 |
|
— |
|
— |
|
— |
|
— |
|
441,496 |
Total loans and leases |
$ |
2,612,702 |
$ |
430,240 |
$ |
141,497 |
$ |
167,882 |
$ |
4,004 |
$ |
3,356,325 |
Deposits, Borrowings and Other Liabilities
Total average deposits for the fiscal 2022 third quarter decreased by
The average balance of total deposits and interest-bearing liabilities was
Total end-of-period deposits decreased
As of
The Company and Pathward remained above the federal regulatory minimum capital requirements at
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
As of the Periods Indicated |
2022(1) |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|||||
Company |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage capital ratio |
8.23 |
% |
|
6.80 |
% |
|
7.39 |
% |
|
7.67 |
% |
|
6.85 |
% |
Common equity Tier 1 capital ratio |
11.87 |
% |
|
11.26 |
% |
|
10.88 |
% |
|
12.12 |
% |
|
12.76 |
% |
Tier 1 capital ratio |
12.19 |
% |
|
11.58 |
% |
|
11.20 |
% |
|
12.46 |
% |
|
13.11 |
% |
Total capital ratio |
13.44 |
% |
|
14.16 |
% |
|
13.80 |
% |
|
15.45 |
% |
|
16.18 |
% |
Pathward |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage ratio |
8.22 |
% |
|
7.79 |
% |
|
8.52 |
% |
|
8.69 |
% |
|
7.83 |
% |
Common equity Tier 1 capital ratio |
12.17 |
% |
|
13.26 |
% |
|
12.90 |
% |
|
14.11 |
% |
|
14.94 |
% |
Tier 1 capital ratio |
12.18 |
% |
|
13.26 |
% |
|
12.91 |
% |
|
14.13 |
% |
|
14.96 |
% |
Total capital ratio |
13.43 |
% |
|
14.52 |
% |
|
14.16 |
% |
|
15.38 |
% |
|
16.22 |
% |
(1) |
The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
|
Standardized Approach(1) |
|||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
$ |
724,774 |
|
|
$ |
763,406 |
|
|
$ |
826,157 |
|
$ |
871,884 |
|
$ |
876,633 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||
LESS: |
|
299,616 |
|
|
|
299,983 |
|
|
|
300,382 |
|
|
300,780 |
|
|
301,179 |
LESS: Certain other intangible assets |
|
27,809 |
|
|
|
30,007 |
|
|
|
32,294 |
|
|
33,572 |
|
|
35,100 |
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards |
|
11,978 |
|
|
|
13,404 |
|
|
|
19,855 |
|
|
22,801 |
|
|
17,753 |
LESS: Net unrealized gains (losses) on available for sale securities |
|
(131,352 |
) |
|
|
(69,838 |
) |
|
|
403 |
|
|
7,344 |
|
|
14,750 |
LESS: Noncontrolling interest |
|
665 |
|
|
|
322 |
|
|
|
642 |
|
|
1,155 |
|
|
1,490 |
ADD: Adoption of Accounting Standards Update 2016-13 |
|
10,011 |
|
|
|
13,387 |
|
|
|
6,527 |
|
|
8,202 |
|
|
10,439 |
Common Equity Tier 1(1) |
|
526,069 |
|
|
|
502,915 |
|
|
|
479,108 |
|
|
514,434 |
|
|
520,274 |
Long-term borrowings and other instruments qualifying as Tier 1 |
|
13,661 |
|
|
|
13,661 |
|
|
|
13,661 |
|
|
13,661 |
|
|
13,661 |
Tier 1 minority interest not included in common equity Tier 1 capital |
|
377 |
|
|
|
208 |
|
|
|
444 |
|
|
747 |
|
|
932 |
Total Tier 1 capital |
|
540,107 |
|
|
|
516,784 |
|
|
|
493,213 |
|
|
528,842 |
|
|
534,867 |
Allowance for credit losses |
|
55,506 |
|
|
|
56,051 |
|
|
|
55,125 |
|
|
53,159 |
|
|
51,317 |
Subordinated debentures (net of issuance costs) |
|
— |
|
|
|
59,256 |
|
|
|
59,220 |
|
|
73,980 |
|
|
73,936 |
Total capital |
$ |
595,613 |
|
|
$ |
632,091 |
|
|
$ |
607,558 |
|
$ |
655,981 |
|
$ |
660,119 |
(1) Capital ratios were determined using the Basel III capital rules that became effective on |
The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.
|
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
$ |
724,774 |
|
|
$ |
763,406 |
|
|
$ |
826,157 |
|
$ |
871,884 |
|
$ |
876,633 |
Less: |
|
309,505 |
|
|
|
309,505 |
|
|
|
309,505 |
|
|
309,505 |
|
|
309,505 |
Less: Intangible assets |
|
27,088 |
|
|
|
29,290 |
|
|
|
31,661 |
|
|
33,148 |
|
|
34,898 |
Tangible common equity |
|
388,181 |
|
|
|
424,611 |
|
|
|
484,991 |
|
|
529,231 |
|
|
532,230 |
Less: AOCI |
|
(131,407 |
) |
|
|
(69,374 |
) |
|
|
724 |
|
|
7,599 |
|
|
15,222 |
Tangible common equity excluding AOCI |
$ |
519,588 |
|
|
$ |
493,985 |
|
|
$ |
484,267 |
|
$ |
521,632 |
|
$ |
517,008 |
Conference Call
The Company will host a conference call and earnings webcast at
Forward-Looking Statements
The Company and Pathward may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results; the impact of measures expected to increase efficiencies or reduce expenses; the timing of and expenses related to our new brand rollout; customer retention; loan and other product demand; expectations concerning acquisitions and divestitures; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; technology; and the Company's employees. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, or other unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflict between
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended
Condensed Consolidated Statements of Financial Condition (Unaudited) (Dollars in Thousands, Except Share Data) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
157,260 |
|
|
$ |
237,680 |
|
|
$ |
1,230,100 |
|
|
$ |
314,019 |
|
|
$ |
720,243 |
|
Securities available for sale, at fair value |
|
1,956,523 |
|
|
|
2,043,478 |
|
|
|
1,782,739 |
|
|
|
1,864,899 |
|
|
|
1,917,605 |
|
Securities held to maturity, at amortized cost |
|
43,877 |
|
|
|
47,287 |
|
|
|
50,994 |
|
|
|
56,669 |
|
|
|
64,247 |
|
|
|
28,812 |
|
|
|
28,812 |
|
|
|
28,400 |
|
|
|
28,400 |
|
|
|
28,433 |
|
Loans held for sale |
|
67,571 |
|
|
|
31,410 |
|
|
|
36,182 |
|
|
|
56,194 |
|
|
|
87,905 |
|
Loans and leases |
|
3,688,566 |
|
|
|
3,730,190 |
|
|
|
3,684,261 |
|
|
|
3,609,563 |
|
|
|
3,496,670 |
|
Allowance for credit losses |
|
(75,206 |
) |
|
|
(88,552 |
) |
|
|
(67,623 |
) |
|
|
(68,281 |
) |
|
|
(91,208 |
) |
Accrued interest receivable |
|
16,818 |
|
|
|
19,115 |
|
|
|
17,240 |
|
|
|
16,254 |
|
|
|
16,230 |
|
Premises, furniture, and equipment, net |
|
42,076 |
|
|
|
43,167 |
|
|
|
44,130 |
|
|
|
44,888 |
|
|
|
44,107 |
|
Rental equipment, net |
|
222,023 |
|
|
|
213,033 |
|
|
|
234,693 |
|
|
|
213,116 |
|
|
|
211,368 |
|
Foreclosed real estate and repossessed assets, net |
|
13 |
|
|
|
112 |
|
|
|
298 |
|
|
|
2,077 |
|
|
|
1,204 |
|
|
|
336,593 |
|
|
|
338,795 |
|
|
|
341,166 |
|
|
|
342,653 |
|
|
|
344,403 |
|
Prepaid assets |
|
11,408 |
|
|
|
15,264 |
|
|
|
17,007 |
|
|
|
10,513 |
|
|
|
7,482 |
|
Other assets |
|
231,844 |
|
|
|
227,448 |
|
|
|
210,071 |
|
|
|
199,686 |
|
|
|
203,123 |
|
Total assets |
$ |
6,728,178 |
|
|
$ |
6,887,239 |
|
|
$ |
7,609,658 |
|
|
$ |
6,690,650 |
|
|
$ |
7,051,812 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
5,710,799 |
|
|
|
5,829,886 |
|
|
|
6,525,569 |
|
|
|
5,514,971 |
|
|
|
5,888,871 |
|
Long-term borrowings |
|
16,616 |
|
|
|
91,386 |
|
|
|
92,274 |
|
|
|
92,834 |
|
|
|
93,634 |
|
Accrued expenses and other liabilities |
|
275,989 |
|
|
|
202,561 |
|
|
|
165,658 |
|
|
|
210,961 |
|
|
|
192,674 |
|
Total liabilities |
|
6,003,404 |
|
|
|
6,123,833 |
|
|
|
6,783,501 |
|
|
|
5,818,766 |
|
|
|
6,175,179 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, |
|
294 |
|
|
|
294 |
|
|
|
301 |
|
|
|
317 |
|
|
|
319 |
|
Common stock, Nonvoting, |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
615,159 |
|
|
|
612,917 |
|
|
|
610,816 |
|
|
|
604,484 |
|
|
|
602,720 |
|
Retained earnings |
|
244,686 |
|
|
|
223,760 |
|
|
|
217,992 |
|
|
|
259,189 |
|
|
|
262,578 |
|
Accumulated other comprehensive income (loss) |
|
(131,407 |
) |
|
|
(69,374 |
) |
|
|
724 |
|
|
|
7,599 |
|
|
|
15,222 |
|
|
|
(4,623 |
) |
|
|
(4,513 |
) |
|
|
(4,318 |
) |
|
|
(860 |
) |
|
|
(5,696 |
) |
Total equity attributable to parent |
|
724,109 |
|
|
|
763,084 |
|
|
|
825,515 |
|
|
|
870,729 |
|
|
|
875,143 |
|
Noncontrolling interest |
|
665 |
|
|
|
322 |
|
|
|
642 |
|
|
|
1,155 |
|
|
|
1,490 |
|
Total stockholders’ equity |
|
724,774 |
|
|
|
763,406 |
|
|
|
826,157 |
|
|
|
871,884 |
|
|
|
876,633 |
|
Total liabilities and stockholders’ equity |
$ |
6,728,178 |
|
|
$ |
6,887,239 |
|
|
$ |
7,609,658 |
|
|
$ |
6,690,650 |
|
|
$ |
7,051,812 |
|
Condensed Consolidated Statements of Operations (Unaudited) (Dollars in Thousands, Except Share and Per Share Data) |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
||||||||
Loans and leases, including fees |
$ |
62,541 |
|
|
$ |
75,540 |
|
$ |
62,287 |
|
|
$ |
203,115 |
|
|
$ |
192,415 |
Mortgage-backed securities |
|
7,381 |
|
|
|
5,446 |
|
|
3,446 |
|
|
|
16,690 |
|
|
|
8,176 |
Other investments |
|
3,984 |
|
|
|
4,191 |
|
|
4,250 |
|
|
|
12,169 |
|
|
|
13,207 |
|
|
73,906 |
|
|
|
85,177 |
|
|
69,983 |
|
|
|
231,974 |
|
|
|
213,798 |
Interest expense: |
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
|
94 |
|
|
|
165 |
|
|
188 |
|
|
|
400 |
|
|
|
1,429 |
FHLB advances and other borrowings |
|
1,661 |
|
|
|
1,212 |
|
|
1,320 |
|
|
|
4,010 |
|
|
|
4,045 |
|
|
1,755 |
|
|
|
1,377 |
|
|
1,508 |
|
|
|
4,410 |
|
|
|
5,474 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
72,151 |
|
|
|
83,800 |
|
|
68,475 |
|
|
|
227,564 |
|
|
|
208,324 |
|
|
|
|
|
|
|
|
|
|
||||||||
Provision (reversal of) for credit losses |
|
(1,302 |
) |
|
|
32,302 |
|
|
4,612 |
|
|
|
31,186 |
|
|
|
40,991 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income after provision for credit losses |
|
73,453 |
|
|
|
51,498 |
|
|
63,863 |
|
|
|
196,378 |
|
|
|
167,333 |
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
||||||||
Refund transfer product fees |
|
10,289 |
|
|
|
27,805 |
|
|
12,073 |
|
|
|
38,674 |
|
|
|
35,400 |
Tax advance product fees |
|
(20 |
) |
|
|
39,299 |
|
|
891 |
|
|
|
40,513 |
|
|
|
47,413 |
Payments card and deposit fees |
|
24,673 |
|
|
|
26,270 |
|
|
29,203 |
|
|
|
76,075 |
|
|
|
81,641 |
Other bank and deposit fees |
|
262 |
|
|
|
250 |
|
|
338 |
|
|
|
750 |
|
|
|
709 |
Rental income |
|
12,082 |
|
|
|
11,375 |
|
|
9,976 |
|
|
|
34,534 |
|
|
|
29,707 |
Gain on sale of securities |
|
198 |
|
|
|
260 |
|
|
— |
|
|
|
595 |
|
|
|
6 |
Gain on sale of trademarks |
|
— |
|
|
|
— |
|
|
— |
|
|
|
50,000 |
|
|
|
— |
Gain (loss) on sale of other |
|
1,239 |
|
|
|
626 |
|
|
5,955 |
|
|
|
(1,601 |
) |
|
|
10,935 |
Other income |
|
5,271 |
|
|
|
3,881 |
|
|
4,017 |
|
|
|
10,811 |
|
|
|
15,550 |
Total noninterest income |
|
53,994 |
|
|
|
109,766 |
|
|
62,453 |
|
|
|
250,351 |
|
|
|
221,361 |
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
45,091 |
|
|
|
45,047 |
|
|
38,604 |
|
|
|
128,364 |
|
|
|
114,867 |
Refund transfer product expense |
|
2,457 |
|
|
|
6,260 |
|
|
2,435 |
|
|
|
8,855 |
|
|
|
8,642 |
Tax advance product expense |
|
(29 |
) |
|
|
2,002 |
|
|
(25 |
) |
|
|
2,156 |
|
|
|
2,534 |
Card processing |
|
8,438 |
|
|
|
7,457 |
|
|
6,809 |
|
|
|
23,067 |
|
|
|
20,138 |
Occupancy and equipment expense |
|
8,996 |
|
|
|
8,500 |
|
|
7,381 |
|
|
|
25,845 |
|
|
|
21,017 |
Operating lease equipment depreciation |
|
9,145 |
|
|
|
8,737 |
|
|
8,122 |
|
|
|
26,331 |
|
|
|
23,122 |
Legal and consulting |
|
11,724 |
|
|
|
9,347 |
|
|
5,680 |
|
|
|
27,279 |
|
|
|
16,972 |
Intangible amortization |
|
1,532 |
|
|
|
2,169 |
|
|
2,013 |
|
|
|
5,188 |
|
|
|
6,784 |
Impairment expense |
|
670 |
|
|
|
— |
|
|
505 |
|
|
|
670 |
|
|
|
2,217 |
Other expense |
|
8,626 |
|
|
|
13,641 |
|
|
9,999 |
|
|
|
34,491 |
|
|
|
33,775 |
Total noninterest expense |
|
96,650 |
|
|
|
103,160 |
|
|
81,523 |
|
|
|
282,246 |
|
|
|
250,068 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income tax expense |
|
30,797 |
|
|
|
58,104 |
|
|
44,793 |
|
|
|
164,483 |
|
|
|
138,626 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
6,958 |
|
|
|
8,002 |
|
|
4,934 |
|
|
|
29,236 |
|
|
|
9,600 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income before noncontrolling interest |
|
23,839 |
|
|
|
50,102 |
|
|
39,859 |
|
|
|
135,247 |
|
|
|
129,026 |
Net income attributable to noncontrolling interest |
|
1,448 |
|
|
|
851 |
|
|
1,158 |
|
|
|
2,281 |
|
|
|
3,221 |
Net income attributable to parent |
$ |
22,391 |
|
|
$ |
49,251 |
|
$ |
38,701 |
|
|
$ |
132,966 |
|
|
$ |
125,805 |
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Allocation of Earnings to participating securities(1) |
|
377 |
|
|
|
815 |
|
|
729 |
|
|
|
2,166 |
|
|
|
2,411 |
Net income attributable to common shareholders(1) |
|
22,014 |
|
|
|
48,436 |
|
|
37,972 |
|
|
|
130,800 |
|
|
|
123,394 |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.76 |
|
|
$ |
1.66 |
|
$ |
1.21 |
|
|
$ |
4.44 |
|
|
$ |
3.87 |
Diluted |
$ |
0.76 |
|
|
$ |
1.66 |
|
$ |
1.21 |
|
|
$ |
4.44 |
|
|
$ |
3.87 |
Shares used in computing earnings per common share: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
28,868,136 |
|
|
|
29,212,301 |
|
|
31,320,893 |
|
|
|
29,444,979 |
|
|
|
31,880,653 |
Diluted |
|
28,868,136 |
|
|
|
29,224,362 |
|
|
31,338,947 |
|
|
|
29,454,586 |
|
|
|
31,900,597 |
(1) Amounts presented are used in the two-class earnings per common share calculation. |
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended |
2022 |
|
2021 |
||||||||||||||
(Dollars in thousands) |
Average Outstanding Balance |
|
Interest Earned / Paid |
|
Yield / Rate(1) |
|
Average Outstanding Balance |
|
Interest Earned / Paid |
|
Yield / Rate(1) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and fed funds sold |
$ |
309,324 |
|
$ |
787 |
|
1.02 |
% |
|
$ |
1,867,988 |
|
$ |
528 |
|
0.11 |
% |
Mortgage-backed securities |
|
1,395,149 |
|
|
7,381 |
|
2.12 |
% |
|
|
882,042 |
|
|
3,446 |
|
1.57 |
% |
Tax exempt investment securities |
|
173,192 |
|
|
851 |
|
2.50 |
% |
|
|
263,401 |
|
|
884 |
|
1.70 |
% |
Asset-backed securities |
|
210,815 |
|
|
750 |
|
1.43 |
% |
|
|
438,163 |
|
|
1,651 |
|
1.51 |
% |
Other investment securities |
|
246,218 |
|
|
1,596 |
|
2.60 |
% |
|
|
246,493 |
|
|
1,187 |
|
1.93 |
% |
Total investments |
|
2,025,374 |
|
|
10,578 |
|
2.14 |
% |
|
|
1,830,099 |
|
|
7,168 |
|
1.62 |
% |
Commercial finance |
|
2,949,813 |
|
|
50,785 |
|
6.91 |
% |
|
|
2,616,942 |
|
|
48,641 |
|
7.46 |
% |
Consumer finance |
|
300,352 |
|
|
4,964 |
|
6.63 |
% |
|
|
241,813 |
|
|
3,916 |
|
6.50 |
% |
Tax services |
|
62,934 |
|
|
53 |
|
0.34 |
% |
|
|
91,804 |
|
|
604 |
|
2.64 |
% |
Warehouse finance |
|
434,532 |
|
|
6,739 |
|
6.22 |
% |
|
|
332,759 |
|
|
5,151 |
|
6.21 |
% |
Community banking |
|
— |
|
|
— |
|
— |
% |
|
|
335,415 |
|
|
3,975 |
|
4.75 |
% |
Total loans and leases |
|
3,747,631 |
|
|
62,541 |
|
6.69 |
% |
|
|
3,618,733 |
|
|
62,287 |
|
6.90 |
% |
Total interest-earning assets |
$ |
6,082,329 |
|
$ |
73,906 |
|
4.89 |
% |
|
$ |
7,316,820 |
|
$ |
69,983 |
|
3.85 |
% |
Noninterest-earning assets |
|
695,468 |
|
|
|
|
|
|
841,738 |
|
|
|
|
||||
Total assets |
$ |
6,777,797 |
|
|
|
|
|
$ |
8,158,558 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing checking(2) |
$ |
292 |
|
$ |
— |
|
0.33 |
% |
|
$ |
336,576 |
|
$ |
— |
|
— |
% |
Savings |
|
82,989 |
|
|
7 |
|
0.03 |
% |
|
|
107,803 |
|
|
5 |
|
0.02 |
% |
Money markets |
|
101,943 |
|
|
53 |
|
0.21 |
% |
|
|
58,517 |
|
|
66 |
|
0.45 |
% |
Time deposits |
|
8,709 |
|
|
9 |
|
0.40 |
% |
|
|
11,877 |
|
|
27 |
|
0.91 |
% |
Wholesale deposits |
|
8,554 |
|
|
25 |
|
1.19 |
% |
|
|
86,295 |
|
|
90 |
|
0.42 |
% |
Total interest-bearing deposits |
|
202,487 |
|
|
94 |
|
0.19 |
% |
|
|
601,068 |
|
|
188 |
|
0.13 |
% |
Overnight fed funds purchased |
|
19,353 |
|
|
72 |
|
1.50 |
% |
|
|
11 |
|
|
— |
|
0.25 |
% |
Subordinated debentures |
|
36,480 |
|
|
1,444 |
|
15.87 |
% |
|
|
73,907 |
|
|
1,148 |
|
6.23 |
% |
Other borrowings |
|
17,056 |
|
|
145 |
|
3.40 |
% |
|
|
20,657 |
|
|
172 |
|
3.35 |
% |
Total borrowings |
|
72,889 |
|
|
1,661 |
|
9.14 |
% |
|
|
94,575 |
|
|
1,320 |
|
5.60 |
% |
Total interest-bearing liabilities |
|
275,376 |
|
|
1,755 |
|
2.56 |
% |
|
|
695,643 |
|
|
1,508 |
|
0.87 |
% |
Noninterest-bearing deposits |
|
5,538,585 |
|
|
— |
|
— |
% |
|
|
6,380,371 |
|
|
— |
|
— |
% |
Total deposits and interest-bearing liabilities |
$ |
5,813,961 |
|
$ |
1,755 |
|
0.12 |
% |
|
$ |
7,076,014 |
|
$ |
1,508 |
|
0.09 |
% |
Other noninterest-bearing liabilities |
|
213,293 |
|
|
|
|
|
|
225,862 |
|
|
|
|
||||
Total liabilities |
|
6,027,254 |
|
|
|
|
|
|
7,301,876 |
|
|
|
|
||||
Shareholders' equity |
|
750,543 |
|
|
|
|
|
|
856,682 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
6,777,797 |
|
|
|
|
|
$ |
8,158,558 |
|
|
|
|
||||
Net interest income and net interest rate spread including noninterest-bearing deposits |
|
|
$ |
72,151 |
|
4.77 |
% |
|
|
|
$ |
68,475 |
|
3.76 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin |
|
|
|
|
4.76 |
% |
|
|
|
|
|
3.75 |
% |
||||
Tax-equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.02 |
% |
||||
Net interest margin, tax-equivalent(3) |
|
|
|
|
4.77 |
% |
|
|
|
|
|
3.77 |
% |
||||
(1) Tax rate used to arrive at the TEY for the three months ended
(2) At (3) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes. |
Selected Financial Information
As of and For the Three Months Ended |
|
|
|
|
|
|
|
|
|
||||||||||
Equity to total assets |
|
10.77 |
% |
|
|
11.08 |
% |
|
|
10.86 |
% |
|
|
13.03 |
% |
|
|
12.43 |
% |
Book value per common share outstanding |
$ |
24.69 |
|
|
$ |
26.00 |
|
|
$ |
27.46 |
|
|
$ |
27.53 |
|
|
$ |
27.46 |
|
Tangible book value per common share outstanding |
$ |
13.22 |
|
|
$ |
14.46 |
|
|
$ |
16.12 |
|
|
$ |
16.71 |
|
|
$ |
16.67 |
|
Tangible book value per common share outstanding excluding AOCI |
$ |
17.70 |
|
|
$ |
16.82 |
|
|
$ |
16.10 |
|
|
$ |
16.47 |
|
|
$ |
16.20 |
|
Common shares outstanding |
|
29,356,707 |
|
|
|
29,362,844 |
|
|
|
30,080,717 |
|
|
|
31,669,952 |
|
|
|
31,919,780 |
|
Nonperforming assets to total assets |
|
0.40 |
% |
|
|
0.56 |
% |
|
|
0.58 |
% |
|
|
0.92 |
% |
|
|
0.64 |
% |
Nonperforming loans and leases to total loans and leases |
|
0.71 |
% |
|
|
0.95 |
% |
|
|
1.16 |
% |
|
|
1.52 |
% |
|
|
1.17 |
% |
Net interest margin |
|
4.76 |
% |
|
|
4.80 |
% |
|
|
4.59 |
% |
|
|
4.35 |
% |
|
|
3.75 |
% |
Net interest margin, tax-equivalent |
|
4.77 |
% |
|
|
4.81 |
% |
|
|
4.61 |
% |
|
|
4.37 |
% |
|
|
3.77 |
% |
Return on average assets |
|
1.32 |
% |
|
|
2.49 |
% |
|
|
3.49 |
% |
|
|
0.88 |
% |
|
|
1.90 |
% |
Return on average equity |
|
11.93 |
% |
|
|
24.16 |
% |
|
|
29.69 |
% |
|
|
7.18 |
% |
|
|
18.07 |
% |
Full-time equivalent employees |
|
1,178 |
|
|
|
1,167 |
|
|
|
1,140 |
|
|
|
1,124 |
|
|
|
1,109 |
|
Non-GAAP Reconciliations
Adjusted Net Income and Adjusted Earnings Per Share |
At and For the Three Months Ended |
|
At and For the Nine Months Ended |
||||||||||||
Dollars in Thousands, Except Share and Per Share Data |
|
|
|
|
|
|
|||||||||
Net Income - GAAP |
$ |
22,391 |
|
$ |
49,251 |
|
$ |
38,701 |
|
|
$ |
132,966 |
$ |
125,805 |
|
Less: Gain on sale of trademarks |
|
— |
|
|
— |
|
|
— |
|
|
|
50,000 |
|
— |
|
Add: Rebranding expenses |
|
3,427 |
|
|
2,819 |
|
|
— |
|
|
|
6,249 |
|
— |
|
Add: Separation related expenses |
|
3,116 |
|
|
878 |
|
|
1,161 |
|
|
|
4,080 |
|
2,509 |
|
Add: Income tax effect resulting from gain on sale of trademarks and rebranding and separation expenses |
|
(1,677 |
) |
|
(930 |
) |
|
(290 |
) |
|
|
9,965 |
|
(627 |
) |
Adjusted net income |
$ |
27,257 |
|
$ |
52,018 |
|
$ |
39,572 |
|
|
$ |
103,260 |
$ |
127,687 |
|
Less: Adjusted allocation of earnings to participating securities |
|
458 |
|
|
861 |
|
|
746 |
|
|
|
1,682 |
|
2,447 |
|
Adjusted Net income attributable to common shareholders |
|
26,799 |
|
|
51,157 |
|
|
38,826 |
|
|
|
101,578 |
|
125,240 |
|
Weighted average diluted common shares outstanding |
|
28,868,136 |
|
|
29,224,362 |
|
|
31,338,947 |
|
|
|
29,454,586 |
|
31,900,597 |
|
Adjusted earnings per common share - diluted |
$ |
0.93 |
|
$ |
1.75 |
|
$ |
1.24 |
|
|
$ |
3.45 |
$ |
3.93 |
|
Adjusted Diluted Earnings Per Share Guidance |
Fiscal Year Ended |
||
(Earnings per share amounts) |
2022 |
|
2023 |
Diluted earnings per share - GAAP |
|
|
|
Less: Net nonrecurring items, net of tax(1) |
|
|
|
Diluted earnings per share - Adjusted |
|
|
|
(1) Includes gain on sale of trademarks, rebrand related expenses and separation related expenses. |
Efficiency Ratio |
For the Last Twelve Months Ended |
||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense: GAAP |
$ |
375,860 |
|
|
$ |
360,733 |
|
|
$ |
353,544 |
|
|
$ |
343,683 |
|
|
$ |
330,352 |
|
Net interest income |
|
298,231 |
|
|
|
294,555 |
|
|
|
284,605 |
|
|
|
278,991 |
|
|
|
272,837 |
|
Noninterest income |
|
299,893 |
|
|
|
308,352 |
|
|
|
312,039 |
|
|
|
270,903 |
|
|
|
262,111 |
|
Total revenue: GAAP |
$ |
598,124 |
|
|
$ |
602,907 |
|
|
$ |
596,644 |
|
|
$ |
549,894 |
|
|
$ |
534,948 |
|
Efficiency ratio |
|
62.84 |
% |
|
|
59.83 |
% |
|
|
59.26 |
% |
|
|
62.50 |
% |
|
|
61.75 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Efficiency Ratio |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense: GAAP |
$ |
375,860 |
|
|
$ |
360,733 |
|
|
$ |
353,544 |
|
|
$ |
343,683 |
|
|
$ |
330,352 |
|
Less: Rebranding expenses |
|
6,249 |
|
|
|
2,822 |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
Adjusted noninterest expense |
|
369,611 |
|
|
|
357,911 |
|
|
|
353,341 |
|
|
|
343,683 |
|
|
|
330,352 |
|
Net interest income |
|
298,231 |
|
|
|
294,555 |
|
|
|
284,605 |
|
|
|
278,991 |
|
|
|
272,837 |
|
Noninterest income |
|
299,893 |
|
|
|
308,352 |
|
|
|
312,039 |
|
|
|
270,903 |
|
|
|
262,111 |
|
Less: Gain on sale of trademarks |
|
50,000 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
Total adjusted revenue |
$ |
548,124 |
|
|
$ |
552,907 |
|
|
$ |
546,644 |
|
|
$ |
549,984 |
|
|
$ |
534,948 |
|
Adjusted efficiency ratio |
|
67.43 |
% |
|
|
64.73 |
% |
|
|
64.67 |
% |
|
|
62.50 |
% |
|
|
61.75 |
% |
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005860/en/
Investor Relations Contact
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jschempp@metabank.com
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Source:
FAQ
What were Pathward Financial's earnings for Q3 2022?
How did Pathward Financial's revenue change in Q3 2022?
What is the guidance for Pathward Financial's FY 2023 earnings?