Pathward Financial, Inc. Announces Results for 2025 Fiscal First Quarter
Pathward Financial (CASH) reported Q1 FY2025 net income of $31.4 million ($1.29 per share), up from $27.7 million ($1.06 per share) in Q1 FY2024. Total revenue increased 7% to $173.5 million.
Key developments include the sale of their insurance premium finance business for $603.3 million plus a $31.2 million premium, resulting in a $16.4 million pre-tax gain. This gain was largely offset by a $15.7 million loss from selling $160.6 million in debt securities.
Net interest margin increased to 6.84% from 6.23% year-over-year. Total gross loans and leases reached $4.56 billion, up $136.4 million from December 2023. The Company repurchased 701,860 shares at an average price of $74.05 during Q1 FY2025.
Pathward Financial (CASH) ha riportato un reddito netto nel primo trimestre dell'anno fiscale 2025 di 31,4 milioni di dollari (1,29 dollari per azione), in crescita rispetto ai 27,7 milioni di dollari (1,06 dollari per azione) del primo trimestre dell'anno fiscale 2024. Il fatturato totale è aumentato del 7% raggiungendo 173,5 milioni di dollari.
Sviluppi chiave includono la vendita della loro attività di finanziamento premi assicurativi per 603,3 milioni di dollari più un premio di 31,2 milioni di dollari, risultando in un guadagno ante imposte di 16,4 milioni di dollari. Questo guadagno è stato in gran parte compensato da una perdita di 15,7 milioni di dollari derivante dalla vendita di titoli di debito per 160,6 milioni di dollari.
Il margine di interesse netto è aumentato al 6,84% rispetto al 6,23% dell'anno precedente. I prestiti e i lease lordi totali hanno raggiunto 4,56 miliardi di dollari, in aumento di 136,4 milioni di dollari rispetto a dicembre 2023. La società ha riacquistato 701.860 azioni a un prezzo medio di 74,05 dollari durante il primo trimestre dell'anno fiscale 2025.
Pathward Financial (CASH) reportó un ingreso neto de 31,4 millones de dólares (1,29 dólares por acción) en el primer trimestre del año fiscal 2025, un incremento respecto a los 27,7 millones de dólares (1,06 dólares por acción) en el primer trimestre del año fiscal 2024. Los ingresos totales aumentaron un 7% alcanzando los 173,5 millones de dólares.
Los desarrollos clave incluyen la venta de su negocio de financiamiento de primas de seguro por 603,3 millones de dólares más un premio de 31,2 millones de dólares, lo que resultó en una ganancia antes de impuestos de 16,4 millones de dólares. Esta ganancia fue en gran parte compensada por una pérdida de 15,7 millones de dólares de la venta de valores de deuda por 160,6 millones de dólares.
El margen de interés neto aumentó al 6,84% desde el 6,23% del año anterior. Los préstamos y arrendamientos brutos totales alcanzaron los 4,56 mil millones de dólares, un aumento de 136,4 millones de dólares desde diciembre de 2023. La empresa recompró 701,860 acciones a un precio promedio de 74,05 dólares durante el primer trimestre del año fiscal 2025.
Pathward Financial (CASH)는 2025 회계연도 1분기에 3,140만 달러(주당 1.29 달러)의 순이익을 보고했으며, 이는 2024 회계연도 1분기의 2,770만 달러(주당 1.06 달러)에서 증가한 것입니다. 총 수익은 7% 증가하여 1억 7,350만 달러에 도달했습니다.
주요 개발 사항으로는 보험 프리미엄 금융 사업을 6억 3,330만 달러에 판매하고 3,120만 달러의 프리미엄을 더하여 세전 이익 1,640만 달러를 기록했습니다. 이익의 대부분은 1억 6,060만 달러의 부채 증권 판매에서 발생한 1,570만 달러의 손실로 상쇄되었습니다.
순이자 마진은 전년 대비 6.84%에서 6.23%로 증가했습니다. 총 대출 및 임대는 45억 6,000만 달러에 도달했으며, 이는 2023년 12월 대비 1억 3,640만 달러 증가한 수치입니다. 회사는 2025 회계연도 1분기 동안 평균 74.05 달러에 701,860주의 자사주 매입을 실시했습니다.
Pathward Financial (CASH) a rapporté un revenu net de 31,4 millions de dollars (1,29 dollar par action) pour le premier trimestre de l'exercice 2025, en hausse par rapport aux 27,7 millions de dollars (1,06 dollar par action) du premier trimestre de l'exercice 2024. Le chiffre d'affaires total a augmenté de 7 % pour atteindre 173,5 millions de dollars.
Les développements clés comprennent la vente de leur activité de financement de primes d'assurance pour 603,3 millions de dollars, plus un bonus de 31,2 millions de dollars, ce qui a entraîné un gain avant impôt de 16,4 millions de dollars. Ce gain a été largement compensé par une perte de 15,7 millions de dollars provenant de la vente de valeurs mobilières d'une valeur de 160,6 millions de dollars.
La marge d'intérêt nette a augmenté à 6,84 % contre 6,23 % l'année précédente. Le montant total des prêts et baux a atteint 4,56 milliards de dollars, soit une augmentation de 136,4 millions de dollars par rapport à décembre 2023. L'entreprise a racheté 701 860 actions à un prix moyen de 74,05 dollars au cours du premier trimestre de l'exercice 2025.
Pathward Financial (CASH) meldete für das erste Quartal des Geschäftsjahres 2025 einen Nettogewinn von 31,4 Millionen USD (1,29 USD pro Aktie), ein Anstieg von 27,7 Millionen USD (1,06 USD pro Aktie) im ersten Quartal des Geschäftsjahres 2024. Der Gesamtumsatz stieg um 7% auf 173,5 Millionen USD.
Zu den wichtigsten Entwicklungen gehört der Verkauf ihres Geschäfts für Versicherungspremiumfinanzierung für 603,3 Millionen USD zuzüglich eines Bonus von 31,2 Millionen USD, was zu einem steuerlichen Gewinn von 16,4 Millionen USD führte. Dieser Gewinn wurde größtenteils durch einen Verlust von 15,7 Millionen USD aus dem Verkauf von 160,6 Millionen USD an Schuldverschreibungen ausgeglichen.
Die Nettozinsspanne stieg im Jahresvergleich von 6,23% auf 6,84%. Die gesamten Bruttokredite und -leasing erreichten 4,56 Milliarden USD, ein Anstieg von 136,4 Millionen USD seit Dezember 2023. Das Unternehmen kaufte im ersten Quartal des Geschäftsjahres 2025 701.860 Aktien zu einem durchschnittlichen Preis von 74,05 USD zurück.
- Net income increased 13.4% YoY to $31.4 million
- Revenue grew 7% YoY to $173.5 million
- Net interest margin improved 61 basis points to 6.84%
- Completed sale of insurance premium finance business for $634.5 million total
- Total gross loans and leases increased by $807.4 million (22%) YoY excluding insurance premium finance loans
- Recorded $15.7 million pre-tax loss on sale of debt securities
- Average interest-earning assets decreased by $296.0 million YoY
- Total deposits decreased 6% YoY to $6.52 billion
Insights
The Q1 FY2025 results reveal Pathward Financial's successful execution of its strategic transformation. The standout transaction was the $634.5M sale of its insurance premium finance business, yielding a $16.4M pre-tax gain. This strategic divestiture, coupled with a calculated $160.6M securities sale, demonstrates sophisticated balance sheet optimization.
Core performance metrics show robust momentum:
- Net interest margin expanded 61 basis points to 6.84%, driven by improved asset mix and higher-yielding loans
- Total loans grew 22% YoY (excluding divested insurance premium finance)
- Revenue increased 7% to $173.5M
Asset quality remains solid with nonperforming assets at just 0.49% of total assets, improving from 0.57% last quarter. The allowance for credit losses coverage ratio of 1.07% appears adequate given the portfolio mix.
A potential concern is the 6% YoY decline in deposits to $6.52B, primarily in noninterest-bearing and wholesale segments. However, the company's strong liquidity position and optimized earning asset mix help mitigate this challenge.
CEO Brett Pharr said, “Fiscal 2025 started out well as we made good progress against the strategy we laid out last year. During the quarter we completed the sale of our insurance premium finance business along with the subsequent sale of debt securities. This move was another large step toward optimizing our balance sheet by giving us the opportunity to put those funds into higher yielding assets or those with optionality. We also extended two contracts with large, existing partners in Partner Solutions and started tax season with
Company Highlights and Business Developments
-
On October 31, 2024, Pathward N.A. (the "Bank") completed the sale of substantially all of the assets and liabilities related to the Bank's commercial insurance premium finance business. The purchase price was
$603.3 million $31.2 million $16.4 million -
On November 30, 2024, the Bank sold
$160.6 million $15.7 million
Financial Highlights for the 2025 Fiscal First Quarter
-
Total revenue for the first quarter was
$173.5 million $10.7 million 7% , compared to the same quarter in fiscal 2024, driven by an increase in both net interest income and noninterest income. -
Net interest margin ("NIM") increased 61 basis points to
6.84% for the first quarter from6.23% during the same period last year, primarily driven by increased yields and balances in the loan and lease portfolio and an improved earning asset mix from the continued balance sheet optimization. When including contractual, rate-related processing expenses associated with deposits on the Company's balance sheet, NIM would have been5.41% in the fiscal 2025 first quarter compared to4.76% during the fiscal 2024 first quarter. See non-GAAP reconciliation table below. -
Total gross loans and leases at December 31, 2024 increased
$136.4 million $4.56 billion $487.5 million $671.0 million $807.4 million 22% , when compared to December 31, 2023. -
During the 2025 fiscal first quarter, the Company repurchased 701,860 shares of common stock at an average share price of
$74.05
Net Interest Income
Net interest income for the first quarter of fiscal 2025 was
The Company’s average interest-earning assets for the first quarter of fiscal 2025 decreased by
Fiscal 2025 first quarter NIM increased to
The Company's cost of funds for all deposits and borrowings averaged
Noninterest Income
Fiscal 2025 first quarter noninterest income increased
The period-over-period decrease in card and deposit fee income was primarily related to lower servicing fee income due to a reduction in rates following reductions in the Effective Federal Funds Rate ("EFFR"). Servicing fee income on custodial deposits totaled
Noninterest Expense
Noninterest expense increased
The card processing expense decrease 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 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) |
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
||||||||||
Total investments |
$ |
1,512,091 |
|
|
$ |
1,774,313 |
|
|
$ |
1,759,486 |
|
|
$ |
1,814,140 |
|
|
$ |
1,886,021 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
7,860 |
|
|
|
4,567 |
|
|
|
— |
|
|
|
1,977 |
|
|
|
2,500 |
|
Lease financing |
|
424 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
778 |
|
Insurance premium finance |
|
— |
|
|
|
594,359 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SBA/USDA |
|
21,786 |
|
|
|
65,734 |
|
|
|
7,030 |
|
|
|
7,372 |
|
|
|
— |
|
Consumer finance |
|
42,578 |
|
|
|
24,210 |
|
|
|
22,350 |
|
|
|
16,597 |
|
|
|
66,240 |
|
Total loans held for sale |
|
72,648 |
|
|
|
688,870 |
|
|
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
1,735,539 |
|
|
|
1,554,641 |
|
|
|
1,533,722 |
|
|
|
1,489,054 |
|
|
|
1,452,274 |
|
Asset-based lending |
|
608,261 |
|
|
|
471,897 |
|
|
|
473,289 |
|
|
|
429,556 |
|
|
|
379,681 |
|
Factoring |
|
364,477 |
|
|
|
362,295 |
|
|
|
350,740 |
|
|
|
336,442 |
|
|
|
335,953 |
|
Lease financing |
|
138,305 |
|
|
|
152,174 |
|
|
|
155,044 |
|
|
|
168,616 |
|
|
|
188,889 |
|
Insurance premium finance |
|
— |
|
|
|
— |
|
|
|
617,054 |
|
|
|
522,904 |
|
|
|
671,035 |
|
SBA/USDA |
|
595,965 |
|
|
|
568,628 |
|
|
|
563,689 |
|
|
|
560,433 |
|
|
|
546,048 |
|
Other commercial finance |
|
174,097 |
|
|
|
185,964 |
|
|
|
166,653 |
|
|
|
149,056 |
|
|
|
160,628 |
|
Commercial finance |
|
3,616,644 |
|
|
|
3,295,599 |
|
|
|
3,860,191 |
|
|
|
3,656,061 |
|
|
|
3,734,508 |
|
Consumer finance |
|
280,001 |
|
|
|
248,800 |
|
|
|
253,358 |
|
|
|
267,031 |
|
|
|
301,510 |
|
Tax services |
|
45,051 |
|
|
|
8,825 |
|
|
|
43,184 |
|
|
|
84,502 |
|
|
|
33,435 |
|
Warehouse finance |
|
624,251 |
|
|
|
517,847 |
|
|
|
449,962 |
|
|
|
394,814 |
|
|
|
349,911 |
|
Total loans and leases |
|
4,565,947 |
|
|
|
4,071,071 |
|
|
|
4,606,695 |
|
|
|
4,402,408 |
|
|
|
4,419,364 |
|
Net deferred loan origination costs (fees) |
|
(3,266 |
) |
|
|
4,124 |
|
|
|
5,857 |
|
|
|
6,977 |
|
|
|
6,917 |
|
Total gross loans and leases |
|
4,562,681 |
|
|
|
4,075,195 |
|
|
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
Allowance for credit losses |
|
(48,977 |
) |
|
|
(45,336 |
) |
|
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
Total loans and leases, net |
$ |
4,513,704 |
|
|
$ |
4,029,859 |
|
|
$ |
4,532,716 |
|
|
$ |
4,328,608 |
|
|
$ |
4,372,496 |
|
The Company's investment security balances at December 31, 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) |
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
|||||
Commercial finance |
1.18 |
% |
1.29 |
% |
1.17 |
% |
1.21 |
% |
1.30 |
% |
Consumer finance |
1.79 |
% |
0.90 |
% |
2.23 |
% |
1.71 |
% |
1.45 |
% |
Tax services |
1.75 |
% |
0.02 |
% |
66.35 |
% |
37.31 |
% |
1.52 |
% |
Warehouse finance |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
Total loans and leases |
1.07 |
% |
1.11 |
% |
1.73 |
% |
1.83 |
% |
1.22 |
% |
Total loans and leases excluding tax services |
1.07 |
% |
1.12 |
% |
1.12 |
% |
1.14 |
% |
1.21 |
% |
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 |
||||||||
(Dollars in thousands) |
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||
Beginning balance |
$ |
45,336 |
|
$ |
79,836 |
|
$ |
49,705 |
|
Provision (reversal of) - tax services loans |
|
1,301 |
|
|
(297 |
) |
|
1,356 |
|
Provision (reversal of) - all other loans and leases |
|
10,913 |
|
|
1,423 |
|
|
8,210 |
|
Charge-offs - tax services loans |
|
(741 |
) |
|
(28,815 |
) |
|
(1,145 |
) |
Charge-offs - all other loans and leases |
|
(8,935 |
) |
|
(7,912 |
) |
|
(5,725 |
) |
Recoveries - tax services loans |
|
228 |
|
|
461 |
|
|
294 |
|
Recoveries - all other loans and leases |
|
875 |
|
|
640 |
|
|
1,090 |
|
Ending balance |
$ |
48,977 |
|
$ |
45,336 |
|
$ |
53,785 |
|
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 December 31, 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 |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
72,648 |
|
$ |
72,648 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
25,080 |
|
|
8,966 |
|
|
23,545 |
|
|
57,591 |
|
|
3,559,053 |
|
|
3,616,644 |
|
|
5,555 |
|
|
27,231 |
|
|
32,786 |
Consumer finance |
|
4,502 |
|
|
2,936 |
|
|
2,423 |
|
|
9,861 |
|
|
270,140 |
|
|
280,001 |
|
|
2,423 |
|
|
— |
|
|
2,423 |
Tax services |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
45,051 |
|
|
45,051 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
624,251 |
|
|
624,251 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
29,582 |
|
|
11,902 |
|
|
25,968 |
|
|
67,452 |
|
|
4,498,495 |
|
|
4,565,947 |
|
|
7,978 |
|
|
27,231 |
|
|
35,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
29,582 |
|
$ |
11,902 |
|
$ |
25,968 |
|
$ |
67,452 |
|
$ |
4,571,143 |
|
$ |
4,638,595 |
|
$ |
7,978 |
|
$ |
27,231 |
|
$ |
35,209 |
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 |
The Company's nonperforming assets at December 31, 2024 were
The decrease in the nonperforming assets as a percentage of total assets at December 31, 2024 compared to September 30, 2024, was primarily driven by a decrease in nonperforming loans in the seasonal tax services and consumer finance portfolios, partially offset by an increase in nonperforming loans in the commercial finance portfolio. 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 and consumer finance portfolios.
The Company's nonperforming loans and leases at December 31, 2024, were
Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was
Total end-of-period deposits decreased
As of December 31, 2024, the Company had
As of December 31, 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 December 31, 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 |
December 31, 2024(1) |
|
September 30, 2024 |
|
June 30,
|
|
March 31,
|
|
December 31,
|
|||||
Company |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage capital ratio |
9.15 |
% |
|
9.26 |
% |
|
9.13 |
% |
|
7.75 |
% |
|
7.96 |
% |
Common equity Tier 1 capital ratio |
12.53 |
% |
|
12.61 |
% |
|
12.44 |
% |
|
12.30 |
% |
|
11.43 |
% |
Tier 1 capital ratio |
12.79 |
% |
|
12.86 |
% |
|
12.70 |
% |
|
12.56 |
% |
|
11.69 |
% |
Total capital ratio |
14.11 |
% |
|
14.08 |
% |
|
14.33 |
% |
|
14.21 |
% |
|
13.12 |
% |
Bank |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage ratio |
9.42 |
% |
|
9.44 |
% |
|
9.36 |
% |
|
7.92 |
% |
|
8.15 |
% |
Common equity Tier 1 capital ratio |
13.16 |
% |
|
13.12 |
% |
|
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
Tier 1 capital ratio |
13.16 |
% |
|
13.12 |
% |
|
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
Total capital ratio |
14.10 |
% |
|
13.97 |
% |
|
14.27 |
% |
|
14.09 |
% |
|
13.01 |
% |
(1) |
December 31, 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) |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Total stockholders' equity |
$ |
776,430 |
|
|
$ |
839,605 |
|
|
$ |
765,248 |
|
|
$ |
739,462 |
|
|
$ |
729,282 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
LESS: Goodwill, net of associated deferred tax liabilities |
|
286,171 |
|
|
|
296,105 |
|
|
|
296,496 |
|
|
|
296,889 |
|
|
|
297,283 |
|
LESS: Certain other intangible assets |
|
16,951 |
|
|
|
18,018 |
|
|
|
18,315 |
|
|
|
19,146 |
|
|
|
20,093 |
|
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards |
|
12,298 |
|
|
|
13,253 |
|
|
|
11,880 |
|
|
|
15,862 |
|
|
|
20,253 |
|
LESS: Net unrealized (losses) on available for sale securities |
|
(187,834 |
) |
|
|
(152,328 |
) |
|
|
(206,584 |
) |
|
|
(205,460 |
) |
|
|
(187,901 |
) |
LESS: Noncontrolling interest |
|
(756 |
) |
|
|
(277 |
) |
|
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
ADD: Adoption of Accounting Standards Update 2016-13 |
|
672 |
|
|
|
1,345 |
|
|
|
1,345 |
|
|
|
1,345 |
|
|
|
1,345 |
|
Common Equity Tier 1(1) |
|
650,272 |
|
|
|
666,179 |
|
|
|
646,992 |
|
|
|
614,790 |
|
|
|
581,409 |
|
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 |
|
(462 |
) |
|
|
(150 |
) |
|
|
(374 |
) |
|
|
(311 |
) |
|
|
(410 |
) |
Total Tier 1 capital |
|
663,471 |
|
|
|
679,690 |
|
|
|
660,279 |
|
|
|
628,140 |
|
|
|
594,660 |
|
Allowance for credit losses |
|
48,818 |
|
|
|
44,687 |
|
|
|
65,182 |
|
|
|
62,715 |
|
|
|
53,037 |
|
Subordinated debentures, net of issuance costs |
|
19,719 |
|
|
|
19,693 |
|
|
|
19,668 |
|
|
|
19,642 |
|
|
|
19,617 |
|
Total capital |
$ |
732,008 |
|
|
$ |
744,070 |
|
|
$ |
745,129 |
|
|
$ |
710,497 |
|
|
$ |
667,314 |
|
(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 Tuesday, January 21, 2025. 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 228214.
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.
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; 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, 2024, 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) |
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
597,396 |
|
|
$ |
158,337 |
|
|
$ |
298,926 |
|
|
$ |
347,888 |
|
|
$ |
671,630 |
|
Securities available for sale, at fair value |
|
1,480,090 |
|
|
|
1,741,221 |
|
|
|
1,725,460 |
|
|
|
1,779,458 |
|
|
|
1,850,581 |
|
Securities held to maturity, at amortized cost |
|
32,001 |
|
|
|
33,092 |
|
|
|
34,026 |
|
|
|
34,682 |
|
|
|
35,440 |
|
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost |
|
24,454 |
|
|
|
36,014 |
|
|
|
24,449 |
|
|
|
25,844 |
|
|
|
23,694 |
|
Loans held for sale |
|
72,648 |
|
|
|
688,870 |
|
|
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
Loans and leases |
|
4,562,681 |
|
|
|
4,075,195 |
|
|
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
Allowance for credit losses |
|
(48,977 |
) |
|
|
(45,336 |
) |
|
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
Accrued interest receivable |
|
35,279 |
|
|
|
31,385 |
|
|
|
31,755 |
|
|
|
30,294 |
|
|
|
27,080 |
|
Premises, furniture, and equipment, net |
|
38,263 |
|
|
|
39,055 |
|
|
|
36,953 |
|
|
|
37,266 |
|
|
|
38,270 |
|
Rental equipment, net |
|
206,754 |
|
|
|
205,339 |
|
|
|
209,544 |
|
|
|
215,885 |
|
|
|
228,916 |
|
Goodwill and intangible assets |
|
313,074 |
|
|
|
326,094 |
|
|
|
327,018 |
|
|
|
328,001 |
|
|
|
329,241 |
|
Other assets |
|
308,679 |
|
|
|
260,070 |
|
|
|
280,053 |
|
|
|
283,245 |
|
|
|
280,571 |
|
Total assets |
$ |
7,622,342 |
|
|
$ |
7,549,336 |
|
|
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
6,518,953 |
|
|
|
5,875,085 |
|
|
|
6,431,516 |
|
|
|
6,368,344 |
|
|
|
6,936,055 |
|
Short-term borrowings |
|
— |
|
|
|
377,000 |
|
|
|
— |
|
|
|
31,000 |
|
|
|
— |
|
Long-term borrowings |
|
33,380 |
|
|
|
33,354 |
|
|
|
33,329 |
|
|
|
33,373 |
|
|
|
33,614 |
|
Accrued expenses and other liabilities |
|
293,579 |
|
|
|
424,292 |
|
|
|
300,187 |
|
|
|
264,938 |
|
|
|
228,486 |
|
Total liabilities |
|
6,845,912 |
|
|
|
6,709,731 |
|
|
|
6,765,032 |
|
|
|
6,697,655 |
|
|
|
7,198,155 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, |
|
241 |
|
|
|
248 |
|
|
|
251 |
|
|
|
254 |
|
|
|
260 |
|
Common stock, Nonvoting, |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
640,422 |
|
|
|
638,803 |
|
|
|
636,284 |
|
|
|
634,415 |
|
|
|
629,737 |
|
Retained earnings |
|
332,322 |
|
|
|
354,474 |
|
|
|
343,392 |
|
|
|
317,964 |
|
|
|
293,463 |
|
Accumulated other comprehensive loss |
|
(190,917 |
) |
|
|
(153,394 |
) |
|
|
(207,992 |
) |
|
|
(206,570 |
) |
|
|
(188,433 |
) |
Treasury stock, at cost |
|
(4,882 |
) |
|
|
(249 |
) |
|
|
(6,181 |
) |
|
|
(6,181 |
) |
|
|
(5,235 |
) |
Total equity attributable to parent |
|
777,186 |
|
|
|
839,882 |
|
|
|
765,754 |
|
|
|
739,882 |
|
|
|
729,792 |
|
Noncontrolling interest |
|
(756 |
) |
|
|
(277 |
) |
|
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
Total stockholders’ equity |
|
776,430 |
|
|
|
839,605 |
|
|
|
765,248 |
|
|
|
739,462 |
|
|
|
729,282 |
|
Total liabilities and stockholders’ equity |
$ |
7,622,342 |
|
|
$ |
7,549,336 |
|
|
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||
|
Three Months Ended |
|||||||||
(Dollars in Thousands, Except Share and Per Share Data) |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|||||
Interest and dividend income: |
|
|
|
|
|
|||||
Loans and leases, including fees |
$ |
102,731 |
|
|
$ |
102,292 |
|
$ |
94,963 |
|
Mortgage-backed securities |
|
8,986 |
|
|
|
9,607 |
|
|
10,049 |
|
Other investments |
|
7,522 |
|
|
|
7,851 |
|
|
10,886 |
|
|
|
119,239 |
|
|
|
119,750 |
|
|
115,898 |
|
Interest expense: |
|
|
|
|
|
|||||
Deposits |
|
775 |
|
|
|
1,119 |
|
|
3,526 |
|
FHLB advances and other borrowings |
|
2,331 |
|
|
|
2,709 |
|
|
2,336 |
|
|
|
3,106 |
|
|
|
3,828 |
|
|
5,862 |
|
|
|
|
|
|
|
|||||
Net interest income |
|
116,133 |
|
|
|
115,922 |
|
|
110,036 |
|
|
|
|
|
|
|
|||||
Provision for credit loss |
|
12,032 |
|
|
|
838 |
|
|
9,890 |
|
|
|
|
|
|
|
|||||
Net interest income after provision for credit loss |
|
104,101 |
|
|
|
115,084 |
|
|
100,146 |
|
|
|
|
|
|
|
|||||
Noninterest income: |
|
|
|
|
|
|||||
Refund transfer product fees |
|
410 |
|
|
|
1,703 |
|
|
422 |
|
Refund advance fee income |
|
459 |
|
|
|
229 |
|
|
111 |
|
Card and deposit fees |
|
29,066 |
|
|
|
26,441 |
|
|
30,750 |
|
Rental income |
|
13,708 |
|
|
|
13,199 |
|
|
13,459 |
|
(Loss) on sale of securities |
|
(15,671 |
) |
|
|
— |
|
|
— |
|
Gain on divestitures |
|
16,404 |
|
|
|
— |
|
|
— |
|
Gain (loss) on sale of loans and leases |
|
4,378 |
|
|
|
2,829 |
|
|
(31 |
) |
Gain on sale of other |
|
987 |
|
|
|
630 |
|
|
2,871 |
|
Other income |
|
7,637 |
|
|
|
6,979 |
|
|
5,179 |
|
Total noninterest income |
|
57,378 |
|
|
|
52,010 |
|
|
52,761 |
|
|
|
|
|
|
|
|||||
Noninterest expense: |
|
|
|
|
|
|||||
Compensation and benefits |
|
49,292 |
|
|
|
52,298 |
|
|
46,652 |
|
Refund transfer product expense |
|
108 |
|
|
|
168 |
|
|
192 |
|
Refund advance expense |
|
34 |
|
|
|
20 |
|
|
30 |
|
Card processing |
|
33,314 |
|
|
|
33,877 |
|
|
34,584 |
|
Occupancy and equipment expense |
|
9,706 |
|
|
|
9,376 |
|
|
8,848 |
|
Operating lease equipment depreciation |
|
11,426 |
|
|
|
10,445 |
|
|
10,423 |
|
Legal and consulting |
|
5,225 |
|
|
|
8,414 |
|
|
4,892 |
|
Intangible amortization |
|
812 |
|
|
|
924 |
|
|
984 |
|
Other expense |
|
13,642 |
|
|
|
14,348 |
|
|
12,669 |
|
Total noninterest expense |
|
123,559 |
|
|
|
129,870 |
|
|
119,274 |
|
|
|
|
|
|
|
|||||
Income before income tax expense |
|
37,920 |
|
|
|
37,224 |
|
|
33,633 |
|
|
|
|
|
|
|
|||||
Income tax expense (benefit) |
|
6,294 |
|
|
|
3,052 |
|
|
5,719 |
|
|
|
|
|
|
|
|||||
Net income before noncontrolling interest |
|
31,626 |
|
|
|
34,172 |
|
|
27,914 |
|
Net income attributable to noncontrolling interest |
|
199 |
|
|
|
575 |
|
|
257 |
|
Net income attributable to parent |
$ |
31,427 |
|
|
$ |
33,597 |
|
$ |
27,657 |
|
|
|
|
|
|
|
|||||
Less: Allocation of Earnings to participating securities(1) |
|
130 |
|
|
|
348 |
|
|
220 |
|
Net income attributable to common shareholders(1) |
|
31,297 |
|
|
|
33,249 |
|
|
27,437 |
|
Earnings per common share: |
|
|
|
|
|
|||||
Basic |
$ |
1.29 |
|
|
$ |
1.35 |
|
$ |
1.06 |
|
Diluted |
$ |
1.29 |
|
|
$ |
1.35 |
|
$ |
1.06 |
|
Shares used in computing earnings per common share: |
|
|
|
|
|
|||||
Basic |
|
24,221,697 |
|
|
|
24,676,329 |
|
|
25,776,845 |
|
Diluted |
|
24,280,371 |
|
|
|
24,715,021 |
|
|
25,801,538 |
|
(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 December 31, |
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 |
$ |
239,614 |
|
$ |
2,258 |
|
3.74 |
% |
|
$ |
337,975 |
|
$ |
4,103 |
|
|
4.83 |
% |
Mortgage-backed securities |
|
1,309,926 |
|
|
8,986 |
|
2.72 |
% |
|
|
1,486,854 |
|
|
10,049 |
|
|
2.69 |
% |
Tax-exempt investment securities |
|
120,707 |
|
|
845 |
|
3.52 |
% |
|
|
136,470 |
|
|
930 |
|
|
3.43 |
% |
Asset-backed securities |
|
188,163 |
|
|
2,604 |
|
5.49 |
% |
|
|
250,172 |
|
|
3,565 |
|
|
5.67 |
% |
Other investment securities |
|
234,087 |
|
|
1,815 |
|
3.07 |
% |
|
|
284,625 |
|
|
2,288 |
|
|
3.20 |
% |
Total investments |
|
1,852,883 |
|
|
14,250 |
|
3.10 |
% |
|
|
2,158,121 |
|
|
16,832 |
|
|
3.15 |
% |
Commercial finance |
|
3,686,450 |
|
|
77,430 |
|
8.33 |
% |
|
|
3,762,910 |
|
|
75,345 |
|
|
7.97 |
% |
Consumer finance |
|
316,402 |
|
|
10,405 |
|
13.05 |
% |
|
|
362,935 |
|
|
10,585 |
|
|
11.60 |
% |
Tax services |
|
36,785 |
|
|
132 |
|
1.43 |
% |
|
|
28,050 |
|
|
(11 |
) |
|
(0.16 |
)% |
Warehouse finance |
|
603,824 |
|
|
14,764 |
|
9.70 |
% |
|
|
381,931 |
|
|
9,044 |
|
|
9.42 |
% |
Total loans and leases |
|
4,643,461 |
|
|
102,731 |
|
8.78 |
% |
|
|
4,535,826 |
|
|
94,963 |
|
|
8.33 |
% |
Total interest-earning assets |
$ |
6,735,958 |
|
$ |
119,239 |
|
7.04 |
% |
|
$ |
7,031,922 |
|
$ |
115,898 |
|
|
6.57 |
% |
Noninterest-earning assets |
|
649,450 |
|
|
|
|
|
|
543,418 |
|
|
|
|
|||||
Total assets |
$ |
7,385,408 |
|
|
|
|
|
$ |
7,575,340 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing checking |
$ |
685 |
|
$ |
— |
|
0.21 |
% |
|
$ |
426 |
|
$ |
— |
|
|
0.34 |
% |
Savings |
|
45,469 |
|
|
3 |
|
0.03 |
% |
|
|
54,783 |
|
|
6 |
|
|
0.04 |
% |
Money markets |
|
180,104 |
|
|
385 |
|
0.85 |
% |
|
|
183,255 |
|
|
576 |
|
|
1.25 |
% |
Time deposits |
|
4,208 |
|
|
3 |
|
0.25 |
% |
|
|
5,517 |
|
|
4 |
|
|
0.25 |
% |
Wholesale deposits |
|
26,892 |
|
|
384 |
|
5.67 |
% |
|
|
211,281 |
|
|
2,940 |
|
|
5.54 |
% |
Total interest-bearing deposits (a) |
|
257,358 |
|
|
775 |
|
1.19 |
% |
|
|
455,262 |
|
|
3,526 |
|
|
3.08 |
% |
Overnight fed funds purchased |
|
131,337 |
|
|
1,670 |
|
5.05 |
% |
|
|
117,153 |
|
|
1,656 |
|
|
5.62 |
% |
Subordinated debentures |
|
19,702 |
|
|
355 |
|
7.14 |
% |
|
|
19,600 |
|
|
357 |
|
|
7.24 |
% |
Other borrowings |
|
13,661 |
|
|
306 |
|
8.89 |
% |
|
|
14,178 |
|
|
323 |
|
|
9.07 |
% |
Total borrowings |
|
164,700 |
|
|
2,331 |
|
5.62 |
% |
|
|
150,931 |
|
|
2,336 |
|
|
6.16 |
% |
Total interest-bearing liabilities |
|
422,058 |
|
|
3,106 |
|
2.92 |
% |
|
|
606,193 |
|
|
5,862 |
|
|
3.85 |
% |
Noninterest-bearing deposits (b) |
|
5,823,877 |
|
|
— |
|
— |
% |
|
|
6,102,928 |
|
|
— |
|
|
— |
% |
Total deposits and interest-bearing liabilities |
$ |
6,245,935 |
|
$ |
3,106 |
|
0.20 |
% |
|
$ |
6,709,121 |
|
$ |
5,862 |
|
|
0.35 |
% |
Other noninterest-bearing liabilities |
|
335,743 |
|
|
|
|
|
|
210,468 |
|
|
|
|
|||||
Total liabilities |
|
6,581,678 |
|
|
|
|
|
|
6,919,589 |
|
|
|
|
|||||
Shareholders' equity |
|
803,730 |
|
|
|
|
|
|
655,751 |
|
|
|
|
|||||
Total liabilities and shareholders' equity |
$ |
7,385,408 |
|
|
|
|
|
$ |
7,575,340 |
|
|
|
|
|||||
Net interest income and net interest rate spread including noninterest-bearing deposits |
|
|
$ |
116,133 |
|
6.84 |
% |
|
|
|
$ |
110,036 |
|
|
6.22 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin |
|
|
|
|
6.84 |
% |
|
|
|
|
|
6.23 |
% |
|||||
Tax-equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.01 |
% |
|||||
Net interest margin, tax-equivalent(2) |
|
|
|
|
6.85 |
% |
|
|
|
|
|
6.24 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total cost of deposits (a+b) |
|
6,081,235 |
|
|
775 |
|
0.05 |
% |
|
|
6,558,190 |
|
|
3,526 |
|
|
0.21 |
% |
(1) |
Tax rate used to arrive at the TEY for the three months ended December 31, 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 |
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
Equity to total assets |
|
10.19 |
% |
|
|
11.12 |
% |
|
|
10.16 |
% |
|
|
9.94 |
% |
|
|
9.20 |
% |
Book value per common share outstanding |
$ |
32.19 |
|
|
$ |
33.79 |
|
|
$ |
30.51 |
|
|
$ |
29.14 |
|
|
$ |
28.06 |
|
Tangible book value per common share outstanding |
$ |
19.21 |
|
|
$ |
20.67 |
|
|
$ |
17.47 |
|
|
$ |
16.21 |
|
|
$ |
15.39 |
|
Common shares outstanding |
|
24,119,416 |
|
|
|
24,847,353 |
|
|
|
25,085,230 |
|
|
|
25,377,986 |
|
|
|
25,988,230 |
|
Nonperforming assets to total assets |
|
0.49 |
% |
|
|
0.57 |
% |
|
|
0.61 |
% |
|
|
0.50 |
% |
|
|
0.53 |
% |
Nonperforming loans and leases to total loans and leases |
|
0.76 |
% |
|
|
0.87 |
% |
|
|
0.96 |
% |
|
|
0.78 |
% |
|
|
0.88 |
% |
Net interest margin |
|
6.84 |
% |
|
|
6.66 |
% |
|
|
6.56 |
% |
|
|
6.23 |
% |
|
|
6.23 |
% |
Net interest margin, tax-equivalent |
|
6.85 |
% |
|
|
6.67 |
% |
|
|
6.57 |
% |
|
|
6.24 |
% |
|
|
6.24 |
% |
Return on average assets |
|
1.69 |
% |
|
|
1.79 |
% |
|
|
2.28 |
% |
|
|
3.17 |
% |
|
|
1.46 |
% |
Return on average equity |
|
15.51 |
% |
|
|
16.80 |
% |
|
|
22.62 |
% |
|
|
35.72 |
% |
|
|
16.87 |
% |
Return on average tangible equity |
|
25.65 |
% |
|
|
28.40 |
% |
|
|
40.59 |
% |
|
|
64.92 |
% |
|
|
33.95 |
% |
Full-time equivalent employees |
|
1,170 |
|
|
|
1,241 |
|
|
|
1,232 |
|
|
|
1,204 |
|
|
|
1,218 |
|
Non-GAAP Reconciliations |
|||||||||
Net Interest Margin and Cost of Deposits |
At and For the Three Months Ended |
||||||||
(Dollars in thousands) |
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||
Average interest earning assets |
$ |
6,735,958 |
|
$ |
6,925,315 |
|
$ |
7,031,922 |
|
Net interest income |
$ |
116,133 |
|
$ |
115,922 |
|
$ |
110,036 |
|
Net interest margin |
|
6.84 |
% |
|
6.66 |
% |
|
6.23 |
% |
Quarterly average total deposits |
$ |
6,081,235 |
|
$ |
6,199,271 |
|
$ |
6,558,190 |
|
Deposit interest expense |
$ |
775 |
|
$ |
1,119 |
|
$ |
3,526 |
|
Cost of deposits |
|
0.05 |
% |
|
0.07 |
% |
|
0.21 |
% |
|
|
|
|
||||||
Adjusted Net Interest Margin with contractual, rate-related card expenses associated with deposits on the Company's balance sheet |
|
|
|
||||||
Average interest earning assets |
$ |
6,735,958 |
|
$ |
6,925,315 |
|
$ |
7,031,922 |
|
Net interest income |
|
116,133 |
|
|
115,922 |
|
|
110,036 |
|
Less: Contractual, rate-related processing expense |
|
24,241 |
|
|
24,631 |
|
|
25,891 |
|
Adjusted net interest income |
$ |
91,892 |
|
$ |
91,291 |
|
$ |
84,145 |
|
Adjusted net interest margin |
|
5.41 |
% |
|
5.24 |
% |
|
4.76 |
% |
Average total deposits |
$ |
6,081,235 |
|
$ |
6,199,271 |
|
$ |
6,558,190 |
|
Deposit interest expense |
|
775 |
|
|
1,119 |
|
|
3,526 |
|
Add: Contractual, rate-related processing expense |
|
24,241 |
|
|
24,631 |
|
|
25,891 |
|
Adjusted deposit expense |
$ |
25,016 |
|
$ |
25,750 |
|
$ |
29,417 |
|
Adjusted cost of deposits |
|
1.63 |
% |
|
1.65 |
% |
|
1.78 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121901856/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.
FAQ
What was Pathward Financial's (CASH) earnings per share in Q1 2025?
How much did Pathward Financial (CASH) sell its insurance premium finance business for?
What was Pathward Financial's (CASH) net interest margin in Q1 2025?
How many shares did Pathward Financial (CASH) repurchase in Q1 2025?
