Pathward Financial, Inc. Announces Results for 2024 Fiscal Fourth Quarter and Fiscal Year 2024
Pathward Financial (Nasdaq: CASH) reported Q4 2024 net income of $33.6 million ($1.35 per share), compared to $35.9 million ($1.36 per share) in Q4 2023. For fiscal year 2024, net income reached $168.4 million ($6.62 per share), up from $163.6 million ($5.99 per share) in FY2023. Total revenue for Q4 increased 4% to $167.9 million, driven by higher net interest income. The company's net interest margin expanded to 6.66% from 6.19% year-over-year. Total gross loans and leases decreased to $4.08 billion at September 30, 2024, primarily due to the sale of its commercial insurance premium finance business, which is expected to close by October 31, 2024.
Pathward Financial (Nasdaq: CASH) ha riportato un utile netto per il quarto trimestre 2024 di 33,6 milioni di dollari (1,35 dollari per azione), rispetto ai 35,9 milioni di dollari (1,36 dollari per azione) nel quarto trimestre 2023. Per l'anno fiscale 2024, l'utile netto ha raggiunto 168,4 milioni di dollari (6,62 dollari per azione), in aumento rispetto ai 163,6 milioni di dollari (5,99 dollari per azione) dell'anno fiscale 2023. Il fatturato totale per il quarto trimestre è aumentato del 4% a 167,9 milioni di dollari, sostenuto da un maggiore reddito netto da interessi. Il margine netto d'interesse dell'azienda è aumentato al 6,66% rispetto al 6,19% dell'anno precedente. Il totale dei prestiti e dei leasing lordi è diminuito a 4,08 miliardi di dollari al 30 settembre 2024, principalmente a causa della vendita della sua attività di finanziamento dei premi assicurativi commerciali, che dovrebbe concludersi entro il 31 ottobre 2024.
Pathward Financial (Nasdaq: CASH) reportó un ingreso neto de $33.6 millones ($1.35 por acción) en el cuarto trimestre de 2024, en comparación con $35.9 millones ($1.36 por acción) en el cuarto trimestre de 2023. Para el año fiscal 2024, el ingreso neto alcanzó $168.4 millones ($6.62 por acción), un aumento respecto a los $163.6 millones ($5.99 por acción) en el año fiscal 2023. Los ingresos totales del cuarto trimestre aumentaron un 4% a $167.9 millones, impulsados por un mayor ingreso neto por intereses. El margen neto de intereses de la compañía se expandió al 6.66% desde el 6.19% en comparación con el año anterior. El total de préstamos y arrendamientos brutos disminuyó a $4.08 mil millones al 30 de septiembre de 2024, principalmente debido a la venta de su negocio de financiamiento de primas de seguros comerciales, que se espera que se cierre antes del 31 de octubre de 2024.
Pathward Financial (Nasdaq: CASH)는 2024년 4분기 순이익이 3천 3백 6십만 달러(주당 1.35달러)를 기록했으며, 이는 2023년 4분기 3천 5백 9십만 달러(주당 1.36달러)와 비교됩니다. 2024 회계연도 동안 순이익은 1억 6천 8백 4십만 달러(주당 6.62달러)에 도달하였으며, 이는 2023 회계연도 1억 6천 3백 6십만 달러(주당 5.99달러)에서 증가한 수치입니다. 4분기 총 수익은 1억 6천 7백 9십만 달러로 4% 증가했으며, 이는 증가한 순이자 수익에 힘입은 결과입니다. 회사의 순이자 마진은 전년 대비 6.66%에서 6.19%로 확장되었습니다. 2024년 9월 30일 기준 총 대출 및 리스는 40억 8천만 달러로 감소했으며, 이는 상업 보험 프리미엄 금융 사업의 매각에 따른 결과로, 이번 거래는 2024년 10월 31일 완료될 것으로 예상됩니다.
Pathward Financial (Nasdaq: CASH) a annoncé un revenu net pour le quatrième trimestre 2024 de 33,6 millions de dollars (1,35 dollar par action), contre 35,9 millions de dollars (1,36 dollar par action) au quatrième trimestre 2023. Pour l'exercice fiscal 2024, le revenu net a atteint 168,4 millions de dollars (6,62 dollars par action), en hausse par rapport à 163,6 millions de dollars (5,99 dollars par action) pour l'exercice 2023. Le chiffre d'affaires total pour le quatrième trimestre a augmenté de 4 % pour atteindre 167,9 millions de dollars, soutenu par une augmentation du revenu net d'intérêts. La marge nette d'intérêts de l'entreprise est passée de 6,19 % à 6,66 % d'une année sur l'autre. Le total des prêts et des baux bruts a diminué à 4,08 milliards de dollars au 30 septembre 2024, principalement en raison de la vente de son activité de financement des primes d'assurance commerciales, dont la clôture est prévue d'ici le 31 octobre 2024.
Pathward Financial (Nasdaq: CASH) meldete für das 4. Quartal 2024 einen Nettogewinn von 33,6 Millionen Dollar (1,35 Dollar pro Aktie), verglichen mit 35,9 Millionen Dollar (1,36 Dollar pro Aktie) im 4. Quartal 2023. Für das Geschäftsjahr 2024 erreichte der Nettogewinn 168,4 Millionen Dollar (6,62 Dollar pro Aktie), ein Anstieg von 163,6 Millionen Dollar (5,99 Dollar pro Aktie) im Geschäftsjahr 2023. Der Gesamterlös für das 4. Quartal stieg um 4% auf 167,9 Millionen Dollar, unterstützt durch höhere Nettozinserträge. Die Nettomarge der Gesellschaft expandierte von 6,19% im Vorjahr auf 6,66%. Die gesamten Bruttokredite und -leasingverträge verringerten sich zum 30. September 2024 auf 4,08 Milliarden Dollar, hauptsächlich aufgrund des Verkaufs ihres Geschäftsbereichs zur Finanzierung von kommerziellen Versicherungsprämien, dessen Abschluss bis zum 31. Oktober 2024 erwartet wird.
- Net income increased to $168.4M in FY2024 from $163.6M in FY2023
- EPS grew 11% YoY to $6.62, exceeding guidance
- Q4 revenue increased 4% YoY to $167.9M
- Net interest margin expanded to 6.66% from 6.19% YoY
- Q4 net income decreased to $33.6M from $35.9M YoY
- Return on average assets declined to 2.20% from 2.33% YoY
- Total gross loans and leases decreased by $290.9M YoY
- Noninterest income decreased 7% in Q4 2024
Insights
Pathward Financial delivered mixed Q4 results with
Key positives include:
- Net interest margin expanded 47bps to
6.66% - Core loan growth of
14% YoY (excluding insurance premium finance) - Full-year EPS growth of
11%
Notable concerns include:
- ROA declined to
2.20% from2.33% - Noninterest income fell
7% YoY - Higher expenses with noninterest expense up
10%
Asset quality metrics show mixed signals. The ACL ratio decreased to
Net charge-offs totaled
The Company reported net income of
CEO Brett Pharr said, “2024 was a great year for Pathward. We recertified as a Great Place to Work, remained committed to our remote first approach, announced new partnerships and extended others, celebrated employees who won multiple awards, and, most recently, announced that our newly rebranded Partner Solutions team won Finovate’s Best Banking as a Service provider. These successes translated to solid financial results as well. We reported earnings per diluted share of
Company Highlights and Business Developments
- On August 28, 2024, Pathward announced the sale of its commercial insurance premium finance business. The Company expects this transaction will close by October 31, 2024.
- On September 25, 2024, Pathward, N.A., (“Bank” or “Pathward”), a subsidiary of Pathward Financial, celebrated its 20th year serving the payments industry with the announcement it renamed its "Banking as a Service" business line to "Partner Solutions."
- On September 30, 2024, Pathward Financial and Pathward announced the Bank’s Partner Solutions line of business won the 2024 Finovate Award for Best Banking as a Service Provider. According to Finovate, its awards recognize the companies driving fintech innovation forward and the individuals bringing new ideas to life.
Financial Highlights for the 2024 Fiscal Fourth Quarter
-
Total revenue for the fourth quarter was
$167.9 million $6.9 million 4% , compared to the same quarter in fiscal 2023, driven by an increase in net interest income, partially offset by a reduction in noninterest income.
-
Net interest margin ("NIM") increased 47 basis points to
6.66% for the fourth quarter from6.19% during the same period last year, primarily driven by increased yields on earning assets and an improved earning asset mix from the continued optimization of the portfolio. When including contractual, rate-related processing expense, which includes the expenses associated with custodial deposits, NIM would have been5.15% in the fiscal 2024 fourth quarter compared to4.87% during the fiscal 2023 fourth quarter. Servicing fee income on off-balance sheet custodial deposits is not included in this calculation. See non-GAAP reconciliation table below.
-
Total gross loans and leases at September 30, 2024 decreased
$290.9 million $4.08 billion $537.4 million $800.1 million $617.1 million $509.2 million 14% , when compared to September 30, 2023 and increased$79.7 million 2% , compared to June 30, 2024.
-
During the 2024 fiscal fourth quarter, the Company repurchased 236,308 shares of common stock at an average share price of
$63.44
Net Interest Income
Net interest income for the fourth quarter of fiscal 2024 was
The Company’s average interest-earning assets for the fourth quarter of fiscal 2024 increased by
Fiscal 2024 fourth quarter NIM increased to
The Company's cost of funds for all deposits and borrowings averaged
Noninterest Income
Fiscal 2024 fourth quarter noninterest income decreased
The period-over-period decrease in card and deposit fee income was primarily related to lower servicing fee income due to a reduction in custodial deposits. Servicing fee income totaled
Noninterest Expense
Noninterest expense increased
The card processing expense increase was due to rate-related agreements with Partner Solutions relationships. The amount of expense paid under those agreements is based on an agreed upon rate index that varies depending on the deposit levels, floor rates, market conditions, and other performance conditions. Generally, this rate index is based on a percentage of the Effective Federal Funds Rate ("EFFR") and reprices immediately upon a change in the EFFR. Approximately
Income Tax Expense
The Company recorded an income tax expense of
The Company originated
Investments, Loans and Leases
(Dollars in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
||||||||||
Total investments |
$ |
1,774,313 |
|
|
$ |
1,759,486 |
|
|
$ |
1,814,140 |
|
|
$ |
1,886,021 |
|
|
$ |
1,840,819 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
4,567 |
|
|
|
— |
|
|
|
1,977 |
|
|
|
2,500 |
|
|
|
— |
|
Lease financing |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
778 |
|
|
|
— |
|
Insurance premium finance |
|
594,359 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SBA/USDA |
|
65,734 |
|
|
|
7,030 |
|
|
|
7,372 |
|
|
|
— |
|
|
|
— |
|
Consumer finance |
|
24,210 |
|
|
|
22,350 |
|
|
|
16,597 |
|
|
|
66,240 |
|
|
|
77,779 |
|
Total loans held for sale |
|
688,870 |
|
|
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
|
|
77,779 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
1,554,641 |
|
|
|
1,533,722 |
|
|
|
1,489,054 |
|
|
|
1,452,274 |
|
|
|
1,308,133 |
|
Asset-based lending |
|
471,897 |
|
|
|
473,289 |
|
|
|
429,556 |
|
|
|
379,681 |
|
|
|
382,371 |
|
Factoring |
|
362,295 |
|
|
|
350,740 |
|
|
|
336,442 |
|
|
|
335,953 |
|
|
|
358,344 |
|
Lease financing |
|
152,174 |
|
|
|
155,044 |
|
|
|
168,616 |
|
|
|
188,889 |
|
|
|
183,392 |
|
Insurance premium finance |
|
— |
|
|
|
617,054 |
|
|
|
522,904 |
|
|
|
671,035 |
|
|
|
800,077 |
|
SBA/USDA |
|
568,628 |
|
|
|
563,689 |
|
|
|
560,433 |
|
|
|
546,048 |
|
|
|
524,750 |
|
Other commercial finance |
|
185,964 |
|
|
|
166,653 |
|
|
|
149,056 |
|
|
|
160,628 |
|
|
|
166,091 |
|
Commercial finance |
|
3,295,599 |
|
|
|
3,860,191 |
|
|
|
3,656,061 |
|
|
|
3,734,508 |
|
|
|
3,723,158 |
|
Consumer finance |
|
248,800 |
|
|
|
253,358 |
|
|
|
267,031 |
|
|
|
301,510 |
|
|
|
254,416 |
|
Tax services |
|
8,825 |
|
|
|
43,184 |
|
|
|
84,502 |
|
|
|
33,435 |
|
|
|
5,192 |
|
Warehouse finance |
|
517,847 |
|
|
|
449,962 |
|
|
|
394,814 |
|
|
|
349,911 |
|
|
|
376,915 |
|
Total loans and leases |
|
4,071,071 |
|
|
|
4,606,695 |
|
|
|
4,402,408 |
|
|
|
4,419,364 |
|
|
|
4,359,681 |
|
Net deferred loan origination costs |
|
4,124 |
|
|
|
5,857 |
|
|
|
6,977 |
|
|
|
6,917 |
|
|
|
6,435 |
|
Total gross loans and leases |
|
4,075,195 |
|
|
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
|
|
4,366,116 |
|
Allowance for credit losses |
|
(45,336 |
) |
|
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
|
|
(49,705 |
) |
Total loans and leases, net |
$ |
4,029,859 |
|
|
$ |
4,532,716 |
|
|
$ |
4,328,608 |
|
|
$ |
4,372,496 |
|
|
$ |
4,316,411 |
|
The Company's investment security balances at September 30, 2024 totaled
Total gross loans and leases totaled
Commercial finance loans, which comprised
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) |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
|||||
Commercial finance |
1.29 |
% |
1.17 |
% |
1.21 |
% |
1.30 |
% |
1.26 |
% |
Consumer finance |
0.90 |
% |
2.23 |
% |
1.71 |
% |
1.45 |
% |
0.92 |
% |
Tax services |
0.03 |
% |
66.35 |
% |
37.31 |
% |
1.52 |
% |
0.04 |
% |
Warehouse finance |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
Total loans and leases |
1.11 |
% |
1.73 |
% |
1.83 |
% |
1.22 |
% |
1.14 |
% |
Total loans and leases excluding tax services |
1.12 |
% |
1.12 |
% |
1.14 |
% |
1.21 |
% |
1.14 |
% |
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 |
|
Fiscal Year Ended |
|||||||||||||
(Dollars in thousands) |
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|
September 30, 2024 |
September 30, 2023 |
||||||||||
Beginning balance |
$ |
79,836 |
|
$ |
80,777 |
|
$ |
81,916 |
|
|
$ |
49,705 |
|
$ |
45,947 |
|
Provision (reversal of) - tax services loans |
|
(297 |
) |
|
(3,285 |
) |
|
2,945 |
|
|
|
22,995 |
|
|
35,775 |
|
Provision (reversal of) - all other loans and leases |
|
1,423 |
|
|
8,926 |
|
|
6,124 |
|
|
|
19,243 |
|
|
21,673 |
|
Charge-offs - tax services loans |
|
(28,815 |
) |
|
(820 |
) |
|
(36,606 |
) |
|
|
(30,780 |
) |
|
(38,741 |
) |
Charge-offs - all other loans and leases |
|
(7,912 |
) |
|
(7,772 |
) |
|
(6,227 |
) |
|
|
(26,902 |
) |
|
(21,158 |
) |
Recoveries - tax services loans |
|
461 |
|
|
1,230 |
|
|
531 |
|
|
|
7,785 |
|
|
2,963 |
|
Recoveries - all other loans and leases |
|
640 |
|
|
780 |
|
|
1,022 |
|
|
|
3,290 |
|
|
3,246 |
|
Ending balance |
$ |
45,336 |
|
$ |
79,836 |
|
$ |
49,705 |
|
|
$ |
45,336 |
|
$ |
49,705 |
|
The Company recognized a provision for credit losses of
The Company's past due loans and leases were as follows for the periods presented.
As of September 30, 2024 |
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 |
$ |
2,266 |
|
$ |
1,361 |
|
$ |
1,050 |
|
$ |
4,677 |
|
$ |
684,193 |
|
$ |
688,870 |
|
$ |
1,050 |
|
$ |
— |
|
$ |
1,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
23,381 |
|
|
7,671 |
|
|
19,975 |
|
|
51,027 |
|
|
3,244,572 |
|
|
3,295,599 |
|
|
2,314 |
|
|
26,412 |
|
|
28,726 |
Consumer finance |
|
3,962 |
|
|
3,186 |
|
|
3,053 |
|
|
10,201 |
|
|
238,599 |
|
|
248,800 |
|
|
3,053 |
|
|
— |
|
|
3,053 |
Tax services |
|
— |
|
|
— |
|
|
8,733 |
|
|
8,733 |
|
|
92 |
|
|
8,825 |
|
|
8,733 |
|
|
— |
|
|
8,733 |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
517,847 |
|
|
517,847 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
27,343 |
|
|
10,857 |
|
|
31,761 |
|
|
69,961 |
|
|
4,001,110 |
|
|
4,071,071 |
|
|
14,100 |
|
|
26,412 |
|
|
40,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
29,609 |
|
$ |
12,218 |
|
$ |
32,811 |
|
$ |
74,638 |
|
$ |
4,685,303 |
|
$ |
4,759,941 |
|
$ |
15,150 |
|
$ |
26,412 |
|
$ |
41,562 |
As of June 30, 2024 |
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 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
29,380 |
|
$ |
29,380 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
28,224 |
|
|
7,348 |
|
|
17,071 |
|
|
52,643 |
|
|
3,807,548 |
|
|
3,860,191 |
|
|
8,427 |
|
|
27,613 |
|
|
36,040 |
Consumer finance |
|
4,496 |
|
|
3,534 |
|
|
8,588 |
|
|
16,618 |
|
|
236,740 |
|
|
253,358 |
|
|
8,588 |
|
|
— |
|
|
8,588 |
Tax services |
|
— |
|
|
43,184 |
|
|
— |
|
|
43,184 |
|
|
— |
|
|
43,184 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
449,962 |
|
|
449,962 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
32,720 |
|
|
54,066 |
|
|
25,659 |
|
|
112,445 |
|
|
4,494,250 |
|
|
4,606,695 |
|
|
17,015 |
|
|
27,613 |
|
|
44,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
32,720 |
|
$ |
54,066 |
|
$ |
25,659 |
|
$ |
112,445 |
|
$ |
4,523,629 |
|
$ |
4,636,074 |
|
$ |
17,015 |
|
$ |
27,613 |
|
$ |
44,628 |
The Company's nonperforming assets at September 30, 2024 were
The decrease in the nonperforming assets as a percentage of total assets at September 30, 2024 compared to June 30, 2024, was primarily driven by a decrease in nonperforming loans in the commercial finance and consumer finance portfolios, partially offset by an increase in nonperforming loans in the tax services portfolio due to seasonal activity. When comparing the current period to the same period of the prior year, the decrease in nonperforming assets was primarily due to decreases in nonperforming loans in the commercial finance portfolio, partially offset by increases in the seasonal tax services portfolio and consumer finance portfolio.
The Company's nonperforming loans and leases at September 30, 2024, were
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 September 30, 2024 |
|
|
|
|
|
|
||||||
Commercial finance |
$ |
2,524,429 |
$ |
486,670 |
$ |
93,257 |
$ |
180,942 |
$ |
10,301 |
$ |
3,295,599 |
Warehouse finance |
|
517,847 |
|
— |
|
— |
|
— |
|
— |
|
517,847 |
Total loans and leases |
$ |
3,042,276 |
$ |
486,670 |
$ |
93,257 |
$ |
180,942 |
$ |
10,301 |
$ |
3,813,446 |
|
Asset Classification |
|||||||||||
(Dollars in thousands) |
Pass |
Watch |
Special Mention |
Substandard |
Doubtful |
Total |
||||||
As of June 30, 2024 |
|
|||||||||||
Commercial finance |
$ |
3,058,737 |
$ |
537,278 |
$ |
63,523 |
$ |
192,473 |
$ |
8,180 |
$ |
3,860,191 |
Warehouse finance |
|
449,962 |
|
— |
|
— |
|
— |
|
— |
|
449,962 |
Total loans and leases |
$ |
3,508,699 |
$ |
537,278 |
$ |
63,523 |
$ |
192,473 |
$ |
8,180 |
$ |
4,310,153 |
Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was
Total end-of-period deposits decreased
As of September 30, 2024, the Company had
As of September 30, 2024, the Company managed
Regulatory Capital
The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at September 30, 2024, and continued to be classified as well-capitalized, and in good standing with the regulatory agencies. Regulatory capital ratios of the Company and the Bank are stated in the table below. Regulatory capital is not affected by the unrealized loss on accumulated other comprehensive income (“AOCI”). The securities portfolio is primarily comprised of amortizing securities that should provide consistent cash flow.
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 |
September 30,
|
|
June 30, 2024 |
|
March 31,
|
|
December 31,
|
|
September 30,
|
|||||
Company |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage capital ratio |
9.26 |
% |
|
9.13 |
% |
|
7.75 |
% |
|
7.96 |
% |
|
8.11 |
% |
Common equity Tier 1 capital ratio |
12.60 |
% |
|
12.44 |
% |
|
12.30 |
% |
|
11.43 |
% |
|
11.25 |
% |
Tier 1 capital ratio |
12.86 |
% |
|
12.70 |
% |
|
12.56 |
% |
|
11.69 |
% |
|
11.50 |
% |
Total capital ratio |
14.08 |
% |
|
14.33 |
% |
|
14.21 |
% |
|
13.12 |
% |
|
12.84 |
% |
Bank |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage ratio |
9.44 |
% |
|
9.36 |
% |
|
7.92 |
% |
|
8.15 |
% |
|
8.32 |
% |
Common equity Tier 1 capital ratio |
13.12 |
% |
|
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
|
11.81 |
% |
Tier 1 capital ratio |
13.12 |
% |
|
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
|
11.81 |
% |
Total capital ratio |
13.97 |
% |
|
14.27 |
% |
|
14.09 |
% |
|
13.01 |
% |
|
12.76 |
% |
(1) |
September 30, 2024 percentages are preliminary pending completion and filing of the Company's regulatory reports. Regulatory capital ratios for periods presented reflect the Company's election of the five-year CECL transition for regulatory capital purposes. |
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) |
||||||||||||||||||
As of the Periods Indicated
(Dollars in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Total stockholders' equity |
$ |
839,605 |
|
|
$ |
765,248 |
|
|
$ |
739,462 |
|
|
$ |
729,282 |
|
|
$ |
650,625 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
LESS: Goodwill, net of associated deferred tax liabilities |
|
296,105 |
|
|
|
296,496 |
|
|
|
296,889 |
|
|
|
297,283 |
|
|
|
297,679 |
|
LESS: Certain other intangible assets |
|
18,018 |
|
|
|
18,315 |
|
|
|
19,146 |
|
|
|
20,093 |
|
|
|
21,228 |
|
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards |
|
13,253 |
|
|
|
11,880 |
|
|
|
15,862 |
|
|
|
20,253 |
|
|
|
19,679 |
|
LESS: Net unrealized (losses) on available for sale securities |
|
(152,328 |
) |
|
|
(206,584 |
) |
|
|
(205,460 |
) |
|
|
(187,901 |
) |
|
|
(254,294 |
) |
LESS: Noncontrolling interest |
|
(277 |
) |
|
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
|
|
(1,005 |
) |
ADD: Adoption of Accounting Standards Update 2016-13 |
|
1,345 |
|
|
|
1,345 |
|
|
|
1,345 |
|
|
|
1,345 |
|
|
|
2,017 |
|
Common Equity Tier 1(1) |
|
666,179 |
|
|
|
646,992 |
|
|
|
614,790 |
|
|
|
581,409 |
|
|
|
569,355 |
|
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 |
|
(150 |
) |
|
|
(374 |
) |
|
|
(311 |
) |
|
|
(410 |
) |
|
|
(826 |
) |
Total Tier 1 capital |
|
679,690 |
|
|
|
660,279 |
|
|
|
628,140 |
|
|
|
594,660 |
|
|
|
582,190 |
|
Allowance for credit losses |
|
44,687 |
|
|
|
65,182 |
|
|
|
62,715 |
|
|
|
53,037 |
|
|
|
47,960 |
|
Subordinated debentures, net of issuance costs |
|
19,693 |
|
|
|
19,668 |
|
|
|
19,642 |
|
|
|
19,617 |
|
|
|
19,591 |
|
Total capital |
$ |
774,070 |
|
|
$ |
745,129 |
|
|
$ |
710,497 |
|
|
$ |
667,314 |
|
|
$ |
649,741 |
|
(1) |
Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes were fully phased in through the end of calendar year 2021. |
Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, October 23, 2024. The live webcast of the call can be accessed from Pathward’s Investor Relations website at www.pathwardfinancial.com. Telephone participants may access the conference call by dialing 1-833-470-1428 approximately 10 minutes prior to start time and reference access code 291724.
The Quarterly Investor Update slide presentation prepared for use in connection with the Company's conference call and earnings webcast is available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at www.pathwardfinancial.com. A webcast replay will also be archived at www.pathwardfinancial.com for one year.
Upcoming Investor Events
-
Piper Sandler East Coast Financial Services Conference, Nov. 14, 2024 |
Naples, FL
About Pathward Financial, Inc.
Pathward Financial, Inc. (Nasdaq: CASH) is a
Forward-Looking Statements
The Company and the Bank 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 Securities and Exchange Commission ("SEC"), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
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,” "target," 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 including our earnings per diluted share guidance, annual effective tax rate and related performance expectations; progress on key strategic initiatives; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; expected nonperforming loan resolutions and net charge off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology. 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 unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in
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 September 30, 2023, and in other filings made with the SEC. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason.
Condensed Consolidated Statements of Financial Condition (Unaudited) |
|||||||||||||||||||
(Dollars in Thousands, Except Share Data) |
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
158,337 |
|
|
$ |
298,926 |
|
|
$ |
347,888 |
|
|
$ |
671,630 |
|
|
$ |
375,580 |
|
Securities available for sale, at fair value |
|
1,741,221 |
|
|
|
1,725,460 |
|
|
|
1,779,458 |
|
|
|
1,850,581 |
|
|
|
1,804,228 |
|
Securities held to maturity, at amortized cost |
|
33,092 |
|
|
|
34,026 |
|
|
|
34,682 |
|
|
|
35,440 |
|
|
|
36,591 |
|
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost |
|
36,014 |
|
|
|
24,449 |
|
|
|
25,844 |
|
|
|
23,694 |
|
|
|
28,210 |
|
Loans held for sale |
|
688,870 |
|
|
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
|
|
77,779 |
|
Loans and leases |
|
4,075,195 |
|
|
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
|
|
4,366,116 |
|
Allowance for credit losses |
|
(45,336 |
) |
|
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
|
|
(49,705 |
) |
Accrued interest receivable |
|
31,385 |
|
|
|
31,755 |
|
|
|
30,294 |
|
|
|
27,080 |
|
|
|
23,282 |
|
Premises, furniture, and equipment, net |
|
39,055 |
|
|
|
36,953 |
|
|
|
37,266 |
|
|
|
38,270 |
|
|
|
39,160 |
|
Rental equipment, net |
|
205,339 |
|
|
|
209,544 |
|
|
|
215,885 |
|
|
|
228,916 |
|
|
|
211,750 |
|
Goodwill and intangible assets |
|
326,094 |
|
|
|
327,018 |
|
|
|
328,001 |
|
|
|
329,241 |
|
|
|
330,225 |
|
Other assets |
|
260,070 |
|
|
|
280,053 |
|
|
|
283,245 |
|
|
|
280,571 |
|
|
|
292,327 |
|
Total assets |
$ |
7,549,336 |
|
|
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
|
$ |
7,535,543 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
5,875,085 |
|
|
|
6,431,516 |
|
|
|
6,368,344 |
|
|
|
6,936,055 |
|
|
|
6,589,182 |
|
Short-term borrowings |
|
377,000 |
|
|
|
— |
|
|
|
31,000 |
|
|
|
— |
|
|
|
13,000 |
|
Long-term borrowings |
|
33,354 |
|
|
|
33,329 |
|
|
|
33,373 |
|
|
|
33,614 |
|
|
|
33,873 |
|
Accrued expenses and other liabilities |
|
424,292 |
|
|
|
300,187 |
|
|
|
264,938 |
|
|
|
228,486 |
|
|
|
248,863 |
|
Total liabilities |
|
6,709,731 |
|
|
|
6,765,032 |
|
|
|
6,697,655 |
|
|
|
7,198,155 |
|
|
|
6,884,918 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, |
|
248 |
|
|
|
251 |
|
|
|
254 |
|
|
|
260 |
|
|
|
262 |
|
Common stock, Nonvoting, |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
638,803 |
|
|
|
636,284 |
|
|
|
634,415 |
|
|
|
629,737 |
|
|
|
628,500 |
|
Retained earnings |
|
354,474 |
|
|
|
343,392 |
|
|
|
317,964 |
|
|
|
293,463 |
|
|
|
278,655 |
|
Accumulated other comprehensive loss |
|
(153,394 |
) |
|
|
(207,992 |
) |
|
|
(206,570 |
) |
|
|
(188,433 |
) |
|
|
(255,443 |
) |
Treasury stock, at cost |
|
(249 |
) |
|
|
(6,181 |
) |
|
|
(6,181 |
) |
|
|
(5,235 |
) |
|
|
(344 |
) |
Total equity attributable to parent |
|
839,882 |
|
|
|
765,754 |
|
|
|
739,882 |
|
|
|
729,792 |
|
|
|
651,630 |
|
Noncontrolling interest |
|
(277 |
) |
|
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
|
|
(1,005 |
) |
Total stockholders’ equity |
|
839,605 |
|
|
|
765,248 |
|
|
|
739,462 |
|
|
|
729,282 |
|
|
|
650,625 |
|
Total liabilities and stockholders’ equity |
$ |
7,549,336 |
|
|
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
|
$ |
7,535,543 |
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
(Dollars in Thousands, Except Share and Per Share Data) |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|||||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|||||||
Loans and leases, including fees |
$ |
102,292 |
|
$ |
95,871 |
|
|
$ |
90,085 |
|
|
$ |
395,876 |
|
$ |
323,602 |
Mortgage-backed securities |
|
9,607 |
|
|
9,748 |
|
|
|
10,225 |
|
|
|
39,402 |
|
|
41,197 |
Other investments |
|
7,851 |
|
|
8,323 |
|
|
|
9,332 |
|
|
|
41,073 |
|
|
33,936 |
|
|
119,750 |
|
|
113,942 |
|
|
|
109,642 |
|
|
|
476,351 |
|
|
398,735 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
1,119 |
|
|
1,689 |
|
|
|
1,954 |
|
|
|
13,019 |
|
|
4,356 |
FHLB advances and other borrowings |
|
2,709 |
|
|
1,394 |
|
|
|
2,754 |
|
|
|
8,214 |
|
|
6,518 |
|
|
3,828 |
|
|
3,083 |
|
|
|
4,708 |
|
|
|
21,233 |
|
|
10,874 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
115,922 |
|
|
110,859 |
|
|
|
104,934 |
|
|
|
455,118 |
|
|
387,861 |
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit loss |
|
838 |
|
|
5,881 |
|
|
|
9,042 |
|
|
|
42,661 |
|
|
57,354 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income after provision for credit loss |
|
115,084 |
|
|
104,978 |
|
|
|
95,892 |
|
|
|
412,457 |
|
|
330,507 |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|||||||
Refund transfer product fees |
|
1,703 |
|
|
9,111 |
|
|
|
308 |
|
|
|
40,178 |
|
|
39,452 |
Refund advance fee income |
|
229 |
|
|
(67 |
) |
|
|
(252 |
) |
|
|
43,473 |
|
|
37,433 |
Card and deposit fees |
|
26,441 |
|
|
33,408 |
|
|
|
31,233 |
|
|
|
125,943 |
|
|
150,746 |
Rental income |
|
13,199 |
|
|
13,779 |
|
|
|
14,562 |
|
|
|
54,157 |
|
|
54,190 |
Gain on sale of trademarks |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
10,000 |
Gain on sale of other |
|
3,459 |
|
|
4,675 |
|
|
|
2,006 |
|
|
|
12,669 |
|
|
2,663 |
Other income |
|
6,979 |
|
|
4,965 |
|
|
|
8,194 |
|
|
|
23,167 |
|
|
22,115 |
Total noninterest income |
|
52,010 |
|
|
65,871 |
|
|
|
56,051 |
|
|
|
299,587 |
|
|
316,599 |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Compensation and benefits |
|
52,298 |
|
|
48,449 |
|
|
|
46,352 |
|
|
|
201,472 |
|
|
184,318 |
Refund transfer product expense |
|
168 |
|
|
2,136 |
|
|
|
28 |
|
|
|
9,862 |
|
|
9,723 |
Refund advance expense |
|
20 |
|
|
47 |
|
|
|
(6 |
) |
|
|
1,943 |
|
|
1,863 |
Card processing |
|
33,877 |
|
|
34,314 |
|
|
|
29,549 |
|
|
|
137,938 |
|
|
105,498 |
Occupancy and equipment expense |
|
9,376 |
|
|
9,070 |
|
|
|
9,274 |
|
|
|
36,587 |
|
|
34,691 |
Operating lease equipment depreciation |
|
10,445 |
|
|
10,465 |
|
|
|
10,846 |
|
|
|
41,757 |
|
|
45,710 |
Legal and consulting |
|
8,414 |
|
|
5,410 |
|
|
|
7,633 |
|
|
|
24,857 |
|
|
27,102 |
Intangible amortization |
|
924 |
|
|
983 |
|
|
|
1,110 |
|
|
|
4,131 |
|
|
4,971 |
Impairment expense |
|
— |
|
|
999 |
|
|
|
— |
|
|
|
3,012 |
|
|
3,273 |
Other expense |
|
14,348 |
|
|
11,806 |
|
|
|
13,416 |
|
|
|
51,694 |
|
|
47,826 |
Total noninterest expense |
|
129,870 |
|
|
123,679 |
|
|
|
118,202 |
|
|
|
513,253 |
|
|
464,975 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income before income tax expense |
|
37,224 |
|
|
47,170 |
|
|
|
33,741 |
|
|
|
198,791 |
|
|
182,131 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income tax expense (benefit) |
|
3,052 |
|
|
5,123 |
|
|
|
(2,672 |
) |
|
|
29,141 |
|
|
16,324 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net income before noncontrolling interest |
|
34,172 |
|
|
42,047 |
|
|
|
36,413 |
|
|
|
169,650 |
|
|
165,807 |
Net income attributable to noncontrolling interest |
|
575 |
|
|
212 |
|
|
|
507 |
|
|
|
1,293 |
|
|
2,192 |
Net income attributable to parent |
$ |
33,597 |
|
$ |
41,835 |
|
|
$ |
35,906 |
|
|
$ |
168,357 |
|
$ |
163,615 |
|
|
|
|
|
|
|
|
|
|
|||||||
Less: Allocation of Earnings to participating securities(1) |
|
348 |
|
|
432 |
|
|
|
531 |
|
|
|
1,540 |
|
|
2,445 |
Net income attributable to common shareholders(1) |
|
33,249 |
|
|
41,403 |
|
|
|
35,375 |
|
|
|
166,817 |
|
|
161,162 |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.35 |
|
$ |
1.66 |
|
|
$ |
1.37 |
|
|
$ |
6.63 |
|
$ |
6.01 |
Diluted |
$ |
1.35 |
|
$ |
1.66 |
|
|
$ |
1.36 |
|
|
$ |
6.62 |
|
$ |
5.99 |
Shares used in computing earnings per common share: |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
24,676,329 |
|
|
24,946,085 |
|
|
|
25,883,807 |
|
|
|
25,169,937 |
|
|
26,833,079 |
Diluted |
|
24,715,021 |
|
|
24,979,818 |
|
|
|
25,991,449 |
|
|
|
25,201,750 |
|
|
26,925,606 |
(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 September 30, |
2024 |
|
2023 |
|||||||||||||||
(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 |
$ |
214,921 |
|
$ |
1,868 |
|
3.46 |
% |
|
$ |
230,032 |
|
$ |
2,425 |
|
|
4.18 |
% |
Mortgage-backed securities |
|
1,412,359 |
|
|
9,607 |
|
2.71 |
% |
|
|
1,514,318 |
|
|
10,225 |
|
|
2.68 |
% |
Tax exempt investment securities |
|
124,944 |
|
|
858 |
|
3.46 |
% |
|
|
141,328 |
|
|
964 |
|
|
3.43 |
% |
Asset-backed securities |
|
200,382 |
|
|
2,967 |
|
5.89 |
% |
|
|
260,460 |
|
|
3,656 |
|
|
5.57 |
% |
Other investment securities |
|
278,197 |
|
|
2,158 |
|
3.09 |
% |
|
|
289,980 |
|
|
2,287 |
|
|
3.13 |
% |
Total investments |
|
2,015,882 |
|
|
15,590 |
|
3.12 |
% |
|
|
2,206,086 |
|
|
17,132 |
|
|
3.13 |
% |
Commercial finance |
|
3,909,498 |
|
|
83,453 |
|
8.49 |
% |
|
|
3,543,353 |
|
|
74,157 |
|
|
8.30 |
% |
Consumer finance |
|
274,675 |
|
|
6,413 |
|
9.29 |
% |
|
|
312,292 |
|
|
7,125 |
|
|
9.05 |
% |
Tax services |
|
39,437 |
|
|
136 |
|
1.38 |
% |
|
|
44,192 |
|
|
(147 |
) |
|
(1.32 |
)% |
Warehouse finance |
|
470,902 |
|
|
12,290 |
|
10.38 |
% |
|
|
388,230 |
|
|
8,950 |
|
|
9.15 |
% |
Total loans and leases |
|
4,694,512 |
|
|
102,292 |
|
8.67 |
% |
|
|
4,288,067 |
|
|
90,085 |
|
|
8.33 |
% |
Total interest-earning assets |
$ |
6,925,315 |
|
$ |
119,750 |
|
6.89 |
% |
|
$ |
6,724,185 |
|
$ |
109,642 |
|
|
6.48 |
% |
Noninterest-earning assets |
|
573,503 |
|
|
|
|
|
|
566,890 |
|
|
|
|
|||||
Total assets |
$ |
7,498,818 |
|
|
|
|
|
$ |
7,291,075 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing checking |
$ |
650 |
|
$ |
— |
|
0.19 |
% |
|
$ |
364 |
|
$ |
— |
|
|
0.33 |
% |
Savings |
|
47,193 |
|
|
3 |
|
0.03 |
% |
|
|
58,907 |
|
|
6 |
|
|
0.04 |
% |
Money markets |
|
174,465 |
|
|
561 |
|
1.28 |
% |
|
|
156,671 |
|
|
237 |
|
|
0.60 |
% |
Time deposits |
|
4,205 |
|
|
3 |
|
0.25 |
% |
|
|
5,589 |
|
|
3 |
|
|
0.19 |
% |
Wholesale deposits |
|
41,299 |
|
|
552 |
|
5.32 |
% |
|
|
128,155 |
|
|
1,708 |
|
|
5.29 |
% |
Total interest-bearing deposits (a) |
|
267,812 |
|
|
1,119 |
|
1.66 |
% |
|
|
349,686 |
|
|
1,954 |
|
|
2.22 |
% |
Overnight fed funds purchased |
|
147,425 |
|
|
2,044 |
|
5.52 |
% |
|
|
148,837 |
|
|
2,077 |
|
|
5.54 |
% |
Subordinated debentures |
|
19,676 |
|
|
355 |
|
7.17 |
% |
|
|
19,574 |
|
|
357 |
|
|
7.23 |
% |
Other borrowings |
|
13,661 |
|
|
310 |
|
9.02 |
% |
|
|
14,484 |
|
|
320 |
|
|
8.76 |
% |
Total borrowings |
|
180,762 |
|
|
2,709 |
|
5.96 |
% |
|
|
182,895 |
|
|
2,754 |
|
|
5.97 |
% |
Total interest-bearing liabilities |
|
448,574 |
|
|
3,828 |
|
3.39 |
% |
|
|
532,581 |
|
|
4,708 |
|
|
3.51 |
% |
Noninterest-bearing deposits (b) |
|
5,931,459 |
|
|
— |
|
— |
% |
|
|
5,855,248 |
|
|
— |
|
|
— |
% |
Total deposits and interest-bearing liabilities |
$ |
6,380,033 |
|
$ |
3,828 |
|
0.24 |
% |
|
$ |
6,387,829 |
|
$ |
4,708 |
|
|
0.29 |
% |
Other noninterest-bearing liabilities |
|
318,818 |
|
|
|
|
|
|
223,242 |
|
|
|
|
|||||
Total liabilities |
|
6,698,851 |
|
|
|
|
|
|
6,611,071 |
|
|
|
|
|||||
Shareholders' equity |
|
799,967 |
|
|
|
|
|
|
680,004 |
|
|
|
|
|||||
Total liabilities and shareholders' equity |
$ |
7,498,818 |
|
|
|
|
|
$ |
7,291,075 |
|
|
|
|
|||||
Net interest income and net interest rate spread including noninterest-bearing deposits |
|
|
$ |
115,922 |
|
6.65 |
% |
|
|
|
$ |
104,934 |
|
|
6.19 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin |
|
|
|
|
6.66 |
% |
|
|
|
|
|
6.19 |
% |
|||||
Tax-equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.02 |
% |
|||||
Net interest margin, tax-equivalent(2) |
|
|
|
|
6.67 |
% |
|
|
|
|
|
6.21 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total cost of deposits (a+b) |
|
6,199,271 |
|
|
1,119 |
|
0.07 |
% |
|
|
6,204,934 |
|
|
1,954 |
|
|
0.12 |
% |
(1) Tax rate used to arrive at the TEY for the three months ended September 30, 2024 and 2023 was (2) 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 |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
Equity to total assets |
|
11.12 |
% |
|
|
10.16 |
% |
|
|
9.94 |
% |
|
|
9.20 |
% |
|
|
8.63 |
% |
Book value per common share outstanding |
$ |
33.79 |
|
|
$ |
30.51 |
|
|
$ |
29.14 |
|
|
$ |
28.06 |
|
|
$ |
24.85 |
|
Tangible book value per common share outstanding |
$ |
20.67 |
|
|
$ |
17.47 |
|
|
$ |
16.21 |
|
|
$ |
15.39 |
|
|
$ |
12.24 |
|
Common shares outstanding |
|
24,847,353 |
|
|
|
25,085,230 |
|
|
|
25,377,986 |
|
|
|
25,988,230 |
|
|
|
26,183,583 |
|
Nonperforming assets to total assets |
|
0.57 |
% |
|
|
0.61 |
% |
|
|
0.50 |
% |
|
|
0.53 |
% |
|
|
0.77 |
% |
Nonperforming loans and leases to total loans and leases |
|
0.87 |
% |
|
|
0.96 |
% |
|
|
0.78 |
% |
|
|
0.88 |
% |
|
|
1.26 |
% |
Net interest margin |
|
6.66 |
% |
|
|
6.56 |
% |
|
|
6.23 |
% |
|
|
6.23 |
% |
|
|
6.19 |
% |
Net interest margin, tax-equivalent |
|
6.67 |
% |
|
|
6.57 |
% |
|
|
6.24 |
% |
|
|
6.24 |
% |
|
|
6.21 |
% |
Return on average assets |
|
1.79 |
% |
|
|
2.28 |
% |
|
|
3.17 |
% |
|
|
1.46 |
% |
|
|
1.97 |
% |
Return on average equity |
|
16.80 |
% |
|
|
22.62 |
% |
|
|
35.72 |
% |
|
|
16.87 |
% |
|
|
21.12 |
% |
Return on average tangible equity |
|
28.40 |
% |
|
|
40.59 |
% |
|
|
64.92 |
% |
|
|
33.95 |
% |
|
|
41.15 |
% |
Full-time equivalent employees |
|
1,241 |
|
|
|
1,232 |
|
|
|
1,204 |
|
|
|
1,218 |
|
|
|
1,193 |
|
Non-GAAP Reconciliations |
|||||||||
Net Interest Margin and Cost of Deposits |
At and For the Three Months Ended |
||||||||
(Dollars in thousands) |
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
||||||
Average interest earning assets |
$ |
6,925,315 |
|
$ |
6,801,888 |
|
$ |
6,724,185 |
|
Net interest income |
$ |
115,922 |
|
$ |
110,859 |
|
$ |
104,934 |
|
Net interest margin |
|
6.66 |
% |
|
6.56 |
% |
|
6.19 |
% |
Quarterly average total deposits |
$ |
6,199,271 |
|
$ |
6,260,990 |
|
$ |
6,204,934 |
|
Deposit interest expense |
$ |
1,119 |
|
$ |
1,689 |
|
$ |
1,954 |
|
Cost of deposits |
|
0.07 |
% |
|
0.11 |
% |
|
0.12 |
% |
|
|
|
|
||||||
Adjusted Net Interest Margin and Adjusted Cost of Deposits |
|
|
|
||||||
Average interest earning assets |
$ |
6,925,315 |
|
$ |
6,801,888 |
|
$ |
6,724,185 |
|
Net interest income |
|
115,922 |
|
|
110,859 |
|
|
104,934 |
|
Less: Contractual, rate-related processing expense |
|
26,274 |
|
|
27,595 |
|
|
22,473 |
|
Adjusted net interest income |
$ |
89,648 |
|
$ |
83,264 |
|
$ |
82,461 |
|
Adjusted net interest margin |
|
5.15 |
% |
|
4.92 |
% |
|
4.87 |
% |
Average total deposits |
$ |
6,199,271 |
|
$ |
6,260,990 |
|
$ |
6,204,934 |
|
Deposit interest expense |
|
1,119 |
|
|
1,689 |
|
|
1,954 |
|
Add: Contractual, rate-related processing expense |
|
26,274 |
|
|
27,595 |
|
|
22,473 |
|
Adjusted deposit expense |
$ |
27,393 |
|
$ |
29,284 |
|
$ |
24,427 |
|
Adjusted cost of deposits |
|
1.76 |
% |
|
1.88 |
% |
|
1.56 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023397948/en/
Investor Relations Contact
Darby Schoenfeld, CPA
SVP, Chief of Staff & Investor Relations
877-497-7497
investorrelations@pathward.com
Media Relations Contact
mediarelations@pathward.com
Source: Pathward Financial, Inc.
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