Latest news with #BrettPharr
Yahoo
9 hours ago
- Business
- Yahoo
Pathward Financial (NASDAQ:CASH) Beats Expectations in Strong Q2
Financial services company Pathward Financial (NASDAQ:CASH) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 10.7% year on year to $195.8 million. Its GAAP profit of $1.81 per share was 8.4% above analysts' consensus estimates. Is now the time to buy Pathward Financial? Find out in our full research report. Pathward Financial (CASH) Q2 CY2025 Highlights: Net Interest Income: $122.3 million vs analyst estimates of $112.9 million (10.3% year-on-year growth, 8.4% beat) Net Interest Margin: 7.4% vs analyst estimates of 6.6% (86 basis point year-on-year increase, 83.5 bps beat) Revenue: $195.8 million vs analyst estimates of $185 million (10.7% year-on-year growth, 5.8% beat) EPS (GAAP): $1.81 vs analyst estimates of $1.67 (8.4% beat) Market Capitalization: $1.89 billion CEO Brett Pharr said, 'We are encouraged by the results achieved in the third quarter, as they represent another quarter where we have successfully executed on our strategy and generated shareholder value. We have made progress on many fronts, and I am incredibly proud of what our team has been able to accomplish over the past nine months. Being the trusted platform that enables our partners to thrive remains our main focus, and we are working to deliver solutions for our clients." Company Overview Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options. Sales Growth From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Luckily, Pathward Financial's revenue grew at an impressive 10.8% compounded annual growth rate over the last five years. Its growth surpassed the average bank company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Pathward Financial's annualized revenue growth of 9.8% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Pathward Financial reported year-on-year revenue growth of 10.7%, and its $195.8 million of revenue exceeded Wall Street's estimates by 5.8%. Net interest income made up 57.9% of the company's total revenue during the last five years, meaning Pathward Financial's growth drivers strike a balance between lending and non-lending activities. Our experience and research show the market cares primarily about a bank's net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Tangible Book Value Per Share (TBVPS) The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential. When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. Pathward Financial's TBVPS grew at an incredible 10.1% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 29.9% annually over the last two years from $13.08 to $22.07 per share. Over the next 12 months, Consensus estimates call for Pathward Financial's TBVPS to grow by 27.9% to $28.23, elite growth rate. Key Takeaways from Pathward Financial's Q2 Results We were impressed by how significantly Pathward Financial blew past analysts' net interest income expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. On the other hand, its tangible book value per share missed. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 1.9% to $81.87 immediately following the results. Pathward Financial had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Connectez-vous pour accéder à votre portefeuille
Business Wire
11 hours ago
- Business
- Business Wire
Pathward Financial, Inc. Announces Preliminary Results for 2025 Fiscal Third Quarter
SIOUX FALLS, S.D.--(BUSINESS WIRE)--Pathward Financial, Inc. ('Pathward Financial' or the 'Company') (Nasdaq: CASH) reported net income of $42.1 million, or $1.81 per share, for the three months ended June 30, 2025, compared to net income of $44.9 million, or $1.78 per share, for the three months ended June 30, 2024. CEO Brett Pharr said, 'We are encouraged by the results achieved in the third quarter, as they represent another quarter where we have successfully executed on our strategy and generated shareholder value. We have made progress on many fronts, and I am incredibly proud of what our team has been able to accomplish over the past nine months. Being the trusted platform that enables our partners to thrive remains our main focus, and we are working to deliver solutions for our clients." As previously disclosed, the Company plans to amend its Annual Report on Form 10-K for the year ended September 30, 2024 to restate certain financial statements included therein and its Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 to reflect restatement adjustments, after which the Company expects to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. The restatements are due to errors related to the Company's gross vs. net basis presentation and derivative accounting, and financial reporting, of certain third-party lending and servicing relationships within the Credit Solutions business, within held-for-investment loan balances. While the Company works diligently to complete the restatement process, the Company is providing the preliminary results for the 2025 fiscal third quarter contained in this release. These results, for all periods presented, reflect the updated gross basis accounting methodology for the affected third-party lending and servicing arrangements. The Company's actual results may differ materially from these preliminary financial results. Financial Highlights for the 2025 Fiscal Third Quarter Total revenue for the third quarter was $195.8 million, an increase of $7.1 million, or 4%, compared to the same quarter in fiscal 2024, driven by an increase in noninterest income. Net interest margin ("NIM") increased 17 basis points to 7.43% for the third quarter from 7.26% during the same period last year, primarily driven by 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 been 5.98% in the fiscal 2025 third quarter compared to 5.76% during the fiscal 2024 third quarter. See non-GAAP reconciliation table below. Total gross loans and leases at June 30, 2025 increased $127.7 million to $4.74 billion compared to June 30, 2024 and increased $278.5 million when compared to March 31, 2025. When excluding the insurance premium finance loans, which were sold during the first quarter of fiscal 2025, of $620.1 million at June 30, 2024, total gross loans and leases at June 30, 2025 increased $747.8 million, or 19%, when compared to June 30, 2024. During the 2025 fiscal third quarter, the Company repurchased 603,780 shares of common stock at an average share price of $74.49. As of June 30, 2025, there were 5,118,556 shares available for repurchase under the current common stock share repurchase program. Tax Season For the nine months ended June 30, 2025, total tax services product revenue was $95.2 million, an increase of 16% compared to the same period of the prior year. The increase in revenue was driven by increases in tax product fee income, refund advance fee income, and tax services net interest income. Provision for credit losses for the tax services portfolio decreased $0.5 million for the nine months ended June 30, 2025 when compared to the same period of the prior year, due to improvements in data analytics, underwriting and monitoring. Total tax services product income, net of losses and direct product expenses, increased 27% to $59.8 million from $47.1 million, when comparing the first nine months of fiscal 2025 to the same period of the prior fiscal year. Net Interest Income Net interest income for the third quarter of fiscal 2025 was $122.3 million, as compared to $122.8 million for the same quarter in fiscal 2024. The Company's average interest-earning assets for the third quarter of fiscal 2025 decreased by $199.6 million to $6.60 billion compared to the same quarter in fiscal 2024, due to decreases in average outstanding balances in total investment securities balances, partially offset by increases in total loan and lease balances and interest earning cash balances. The third quarter average outstanding balance of loans and leases increased $169.6 million compared to the same quarter of the prior fiscal year, due to an increase in the warehouse finance portfolio, partially offset by decreases in the commercial finance, consumer finance, and tax services portfolios. The decrease in the average outstanding balance of commercial finance loans and leases was primarily driven by the sale of the insurance premium finance loans during the first quarter of fiscal year 2025. Fiscal 2025 third quarter NIM increased to 7.43% from 7.26% in the third fiscal quarter of 2024. When including contractual, rate-related processing expenses associated with deposits on the Company's balance sheet, NIM would have been 5.98% in the third quarter compared to 5.76% during the fiscal 2024 third quarter. See non-GAAP reconciliation table below. The overall reported tax-equivalent yield ('TEY') on average interest-earning assets increased 7 basis points to 7.52% compared to the prior year quarter, driven by an improved earning asset mix. The yield on the loan and lease portfolio was 9.33% compared to 9.62% for the comparable period last year and the TEY on the securities portfolio was 3.10% compared to 3.16% over that same period. The Company's cost of funds for all deposits and borrowings averaged 0.08% during the fiscal 2025 third quarter, as compared to 0.20% during the prior year quarter. The Company's overall cost of deposits was 0.02% in the fiscal third quarter of 2025, as compared to 0.11% during the prior year quarter. When including contractual, rate-related processing expenses associated with deposits on the Company's balance sheet, the Company's overall cost of deposits was 1.61% in the fiscal 2025 third quarter, as compared to 1.74% during the prior year quarter. See non-GAAP reconciliation table below. Noninterest Income Fiscal 2025 third quarter noninterest income increased 11% to $73.4 million, compared to $65.9 million for the same period of the prior year. The increase in noninterest income when comparing the current period to the same period of the prior year was primarily driven by secondary market revenue, card and deposit fees, and total tax services product fee income, partially offset by reductions in gain on sale of other and rental income. Included in card and deposit fees is servicing fee income on custodial deposits, which totaled $7.9 million during the 2025 fiscal third quarter, compared to $8.6 million for the same period of the prior year. For the fiscal quarter ended March 31, 2025, servicing fee income on custodial deposits totaled $6.5 million. The period-over-period decrease in servicing fee income on deposit balances held at partner banks was primarily due to a reduction in rates following reductions in the Effective Federal Funds Rate ("EFFR"). The sequential quarter increase in servicing fee income was due to an increase in custodial deposits. Noninterest Expense Noninterest expense increased 11% to $139.3 million for the fiscal 2025 third quarter, from $125.5 million for the same quarter last year. The increase was primarily attributable to increases in legal and consulting expense, other expense, card processing expense, occupancy and equipment expense, and operating lease equipment depreciation expense. Card processing expense is primarily driven by 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 62% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2025 third quarter. For the fiscal quarter ended June 30, 2025, contractual, rate-related processing expenses were $25.1 million, as compared to $28.4 million for the fiscal quarter ended March 31, 2025, and $27.6 million for the fiscal quarter ended June 30, 2024. Income Tax Expense The Company recorded an income tax expense of $4.8 million, representing an effective tax rate of 10.2%, for the fiscal 2025 third quarter, compared to an income tax expense of $6.1 million, representing an effective tax rate of 11.9%, for the third quarter last fiscal year. The current quarter decrease in income tax expense compared to the prior year quarter was primarily due to a decrease in income. The Company originated $2.1 million in renewable energy leases during the fiscal 2025 third quarter, resulting in $0.2 million in total net investment tax credits. During the third quarter of fiscal 2024, the Company originated $4.3 million in renewable energy leases resulting in $1.2 million in total net investment tax credits. For the nine months ended June 30, 2025, the Company originated $13.3 million in renewable energy leases, compared to $42.1 million for the comparable prior year period. Investment tax credits related to renewable energy leases are recognized ratably based on income throughout each fiscal year. The Company's investment security balances at June 30, 2025 totaled $1.40 billion, as compared to $1.44 billion at March 31, 2025 and $1.76 billion at June 30, 2024. The year-over-year decrease was primarily related to the sale of investment securities available for sale during both the first and second quarters of fiscal 2025. Total gross loans and leases totaled $4.74 billion at June 30, 2025, as compared to $4.46 billion at March 31, 2025 and $4.62 billion at June 30, 2024. The drivers for the sequential increase were increases in the commercial finance and warehouse finance portfolios, partially offset by decreases in the consumer finance and the seasonal tax services portfolios. The year-over-year increase was due to an increase in the warehouse finance portfolio, partially offset by decreases in the commercial finance, consumer finance, and seasonal tax services portfolios. When excluding the insurance premium finance loans, which were sold during the first quarter of fiscal 2025, of $620.1 million at June 30, 2024, total gross loans and leases at June 30, 2025 increased $747.8 million, or 19%, when compared to June 30, 2024. Commercial finance loans, which comprised 80% of the Company's loan and lease portfolio, totaled $3.82 billion at June 30, 2025, reflecting an increase of $293.3 million, or 8%, from March 31, 2025 and a decrease of $45.2 million, or 1%, from June 30, 2024. The sequential increase was primarily driven by increases of $237.3 million in term lending loans and $68.3 million in asset-based lending, partially offset by a decrease of $26.8 million in SBA/USDA. The year-over-year decrease was primarily related to the sale of insurance premium finance loans during the first quarter of fiscal 2025 and a decrease of $109.7 million in factoring loans, partially offset by increases of $470.0 million in term lending, $137.6 million in asset-based lending, and $111.2 million in SBA/USDA. When excluding the insurance premium finance loans of $620.1 million at June 30, 2024, commercial finance loans at June 30, 2025 increased by $574.9 million when compared to June 30, 2024. Asset Quality The Company's allowance for credit losses ("ACL") totaled $106.0 million at June 30, 2025, an increase compared to $102.9 million at March 31, 2025 and a decrease compared to $106.8 million at June 30, 2024. The increase in the ACL at June 30, 2025, when compared to March 31, 2025, was primarily due to a $9.6 million increase in the allowance related to the commercial finance portfolio, partially offset by a $3.1 million decrease in the allowance related to the consumer finance portfolio and a $3.3 million decrease in the allowance related to the seasonal tax services portfolio. The $0.8 million year-over-year decrease in the ACL was primarily driven by a $6.1 million decrease in the allowance related to the consumer finance portfolio, partially offset by a $3.3 million increase in the commercial finance portfolio and a $1.8 million increase in the allowance related to the seasonal tax services portfolio. The following table presents the Company's ACL as a percentage of its total loans and leases. The Company's ACL as a percentage of total loans and leases decreased to 2.23% at June 30, 2025 from 2.30% at March 31, 2025 and decreased from 2.32% at June 30, 2024. Activity in the allowance for credit losses for the periods presented was as follows. (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Beginning balance $ 102,890 $ 74,338 $ 111,282 $ 71,764 $ 96,856 Provision (reversal of) - tax services loans (4,728 ) 26,178 (3,285 ) 22,751 23,292 Provision (reversal of) - all other loans and leases 13,959 8,750 14,971 40,252 25,425 Charge-offs - tax services loans (554 ) — (820 ) (1,295 ) (1,965 ) Charge-offs - all other loans and leases (9,481 ) (15,001 ) (17,744 ) (41,469 ) (47,786 ) Recoveries - tax services loans 1,930 6,813 1,230 8,971 7,324 Recoveries - all other loans and leases 1,979 1,812 1,130 5,021 3,618 Ending balance $ 105,995 $ 102,890 $ 106,764 $ 105,995 $ 106,764 Expand The Company recognized a provision for credit losses of $9.3 million for the quarter ended June 30, 2025, compared to $11.9 million for the comparable period in the prior fiscal year. The period-over-period decrease in provision for credit losses was primarily due to a $4.5 million decrease in provision for credit losses in the consumer finance portfolio and a $1.4 million decrease in the provision for credit losses in the seasonal tax services portfolio, partially offset by an increase in provision for credit losses in the commercial finance portfolio of $3.6 million. The Company recognized net charge-offs of $6.1 million for the quarter ended June 30, 2025, compared to net charge-offs of $16.2 million for the quarter ended June 30, 2024. Net charge-offs attributable to the consumer finance and commercial finance portfolios for the quarter ended June 30, 2025 were $5.8 million and $1.7 million, respectively, while net recoveries of $1.4 million were recognized in the seasonal tax services portfolio. Net charge-offs attributable to the consumer finance and commercial finance portfolios for the same quarter of the prior year were $9.7 million and $6.9 million, respectively, while net recoveries of $0.4 million were recognized in the seasonal tax services portfolio. The Company's past due loans and leases were as follows for the periods presented. As of March 31, 2025 (Unaudited) 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 $ — $ — $ — $ — $ 45,767 $ 45,767 $ — $ — $ — Commercial finance 41,161 14,933 18,273 74,367 3,450,388 3,524,755 1,359 36,049 37,408 Consumer finance 3,922 2,769 2,398 9,089 237,113 246,202 2,398 — 2,398 Tax services 1,036 — — 1,036 54,937 55,973 — — — Warehouse finance — — — — 643,124 643,124 — — — Total loans and leases held for investment 46,119 17,702 20,671 84,492 4,385,562 4,470,054 3,757 36,049 39,806 Expand The Company's nonperforming assets at June 30, 2025 were $74.7 million, representing 1.03% of total assets, compared to $41.6 million, or 0.60% of total assets at March 31, 2025 and $46.3 million, or 0.62% of total assets at June 30, 2024. The increase in the nonperforming assets as a percentage of total assets at June 30, 2025 compared to March 31, 2025, was driven by an increase in nonperforming loans in the commercial and consumer finance portfolios. When comparing the current period to the same period of the prior year, the increase was driven by an increase in nonperforming loans in the commercial finance portfolio, partially offset by a decrease in nonperforming loans in the consumer finance and seasonal tax services portfolio. The Company's nonperforming loans and leases at June 30, 2025, were $71.3 million, representing 1.49% of total gross loans and leases, compared to $39.8 million, or 0.88% of total gross loans and leases at March 31, 2025 and $44.6 million, or 0.96% of total gross loans and leases at June 30, 2024. Deposits, Borrowings and Other Liabilities The average balance of total deposits and interest-bearing liabilities was $6.07 billion for the three-month period ended June 30, 2025, compared to $6.35 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2025 third quarter decreased by $258.4 million to $6.00 billion compared to the same period in fiscal 2024. The decrease in average deposits was primarily due to decreases in noninterest bearing and wholesale deposits. Total end-of-period deposits decreased 7% to $6.01 billion at June 30, 2025, compared to $6.43 billion at June 30, 2024. The decrease in end-of-period deposits was primarily driven by decreases in noninterest-bearing deposits of $386.9 million, and wholesale deposits of $42.3 million, partially offset by an increase in interest bearing checking deposits of $8.6 million. As of June 30, 2025, the Company managed $430.7 million of customer deposits at other banks in its capacity as custodian. These deposits provide the Company with the ability to earn servicing fee income, typically reflective of the EFFR. The sequential quarter decrease in these customer deposits held at other banks reflects normal seasonal patterns during the third quarter of the fiscal year. Regulatory Capital The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at June 30, 2025, and continued to be classified as well-capitalized, and in good standing with its regulatory agencies. 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 Monday, July 28, 2025. The live webcast of the call can be accessed from Pathward's Investor Relations website at Telephone participants may access the conference call by dialing 1-833-470-1428 approximately 10 minutes prior to start time and reference access code 348908. 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 A webcast replay will also be archived at for one year. About Pathward Financial, Inc. Pathward Financial, Inc. (Nasdaq: CASH) is a U.S.-based financial holding company driven by its purpose to power financial inclusion for all. Through our subsidiary, Pathward®, N.A., we strive to increase financial availability, choice, and opportunity across our Partner Solutions and Commercial Finance business lines. These strategic business lines provide support to individuals and businesses. Learn more at 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 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; future effective tax rate; 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; technology; the Company's planned restatement of its consolidated financial statements; and the anticipated effects of related changes in the Company's accounting. 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 Ukraine and the Middle East, weather-related disasters, or public health events, such as pandemics, and any governmental or societal responses thereto; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the federal funds rate and changes in international trade policies, tariffs, and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the Bank's ability to maintain its Durbin Amendment exemption; the risks of dealing with or utilizing third parties, including, in connection with the Company's prepaid card and tax refund advance businesses, the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of the Bank's strategic partners' refund advance products; our relationship with and any actions which may be initiated by our regulators, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company's business, as well as expenses related thereto; continued maintenance by the Bank of its status as a well-capitalized institution; changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; and the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase. 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. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. 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 the Company's 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 Operations (Unaudited) Nine Months Ended (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Interest and dividend income: Loans and leases, including fees $ 108,766 $ 119,755 $ 107,762 $ 341,603 $ 324,699 Mortgage-backed securities 8,337 8,580 9,748 25,903 29,795 Other investments 6,488 13,669 8,323 27,679 33,222 123,591 142,004 125,833 395,185 387,716 Interest expense: Deposits 286 4,086 1,689 5,147 11,900 FHLB advances and other borrowings 992 1,640 1,394 4,963 5,505 1,278 5,726 3,083 10,110 17,405 Net interest income 122,313 136,278 122,750 385,075 370,311 Net interest income after provision for credit loss 113,035 101,012 110,824 321,870 320,883 Noninterest income: Refund transfer product fees 9,846 32,663 9,111 42,919 38,475 Refund advance and other tax fee income 307 48,585 (67 ) 49,416 43,244 Card and deposit fees 37,342 30,793 33,408 97,201 99,502 Rental income 12,913 13,200 13,779 39,821 40,958 (Loss) on sale of securities — (7,228 ) — (22,899 ) — Gain (loss) on divestitures — (1,360 ) — 15,044 — Secondary market revenue 7,144 15,378 1,721 26,900 3,091 Gain on sale of other 394 627 2,954 2,008 6,119 Other income 5,496 5,866 4,968 18,934 16,191 Total noninterest income 73,442 138,524 65,874 269,344 247,580 Noninterest expense: Compensation and benefits 48,558 51,905 48,449 149,755 149,174 Refund transfer product expense 2,818 8,475 2,136 11,401 9,694 Refund advance expense (74 ) 1,265 47 1,225 1,923 Card processing 36,198 36,238 34,314 105,750 104,061 Occupancy and equipment expense 10,633 10,307 9,070 30,646 27,211 Operating lease equipment depreciation 11,569 11,780 10,465 34,775 31,312 Legal and consulting 11,094 5,878 5,410 22,197 16,443 Intangible amortization 799 1,082 983 2,693 3,207 Impairment expense 1,076 1,514 999 2,590 3,012 Other expense 16,651 19,733 13,641 54,263 41,295 Total noninterest expense 139,322 148,177 125,514 415,295 387,332 Income before income tax expense 47,155 91,359 51,184 175,919 181,131 Net income before noncontrolling interest 42,342 75,150 45,081 148,666 150,405 Net income attributable to noncontrolling interest 214 237 212 650 718 Net income attributable to parent $ 42,128 $ 74,913 $ 44,869 $ 148,016 $ 149,687 Less: Allocation of Earnings to participating securities (1) 151 263 463 554 1,310 Net income attributable to common shareholders (1) 41,977 74,650 44,406 147,462 148,377 Earnings per common share: Basic $ 1.82 $ 3.16 $ 1.78 $ 6.24 $ 5.86 Diluted $ 1.81 $ 3.14 $ 1.78 $ 6.21 $ 5.85 Shares used in computing earnings per common share: Basic 23,006,454 23,657,145 24,946,085 23,629,565 25,335,621 Diluted 23,140,124 23,776,023 24,979,818 23,745,086 25,364,642 (1) Amounts presented are used in the two-class earnings per common share calculation. Expand Average Balances, Interest Rates and Yields (Unaudited) 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 June 30, 2025 2024 (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 $ 281,545 $ 2,325 3.31 % $ 224,987 $ 2,053 3.67 % Mortgage-backed securities 1,198,015 8,337 2.79 % 1,438,683 9,748 2.73 % Tax-exempt investment securities 113,886 782 3.49 % 128,117 911 3.62 % Asset-backed securities 152,635 1,968 5.17 % 220,461 3,148 5.74 % Other investment securities 179,942 1,413 3.15 % 282,966 2,211 3.14 % Total investments 1,644,478 12,500 3.10 % 2,070,227 16,018 3.16 % Commercial finance 3,717,018 76,736 8.28 % 3,756,152 78,353 8.39 % Consumer finance 268,132 16,791 25.12 % 286,476 18,756 26.33 % Tax services 43,035 48 0.45 % 56,836 55 0.39 % Warehouse finance 648,059 15,191 9.40 % 407,210 10,598 10.47 % Total loans and leases 4,676,244 108,766 9.33 % 4,506,674 107,762 9.62 % Total interest-earning assets $ 6,602,267 $ 123,591 7.52 % $ 6,801,888 $ 125,833 7.45 % Interest-bearing liabilities: Interest-bearing checking $ 1,196 $ — 0.06 % $ 684 $ — 0.14 % Savings 53,450 4 0.03 % 56,565 3 0.02 % Money markets 171,503 263 0.62 % 178,255 584 1.32 % Time deposits 2,855 7 1.03 % 4,265 3 0.32 % Wholesale deposits 1,035 12 4.56 % 74,167 1,099 5.96 % Total interest-bearing deposits (a) 230,039 286 0.50 % 313,936 1,689 2.16 % Overnight fed funds purchased 31,365 360 4.61 % 52,374 730 5.61 % Subordinated debentures 19,753 355 7.21 % 19,651 355 7.26 % Other borrowings 13,661 277 8.13 % 13,705 309 9.07 % Total borrowings 64,779 992 6.14 % 85,730 1,394 6.54 % Total interest-bearing liabilities 294,818 1,278 1.74 % 399,666 3,083 3.10 % Noninterest-bearing deposits (b) 5,772,507 — — % 5,947,054 — — % Total deposits and interest-bearing liabilities $ 6,067,326 $ 1,278 0.08 % $ 6,346,720 $ 3,083 0.20 % Net interest income and net interest rate spread including noninterest-bearing deposits $ 122,313 7.44 % $ 122,750 7.26 % Net interest margin 7.43 % 7.26 % Tax-equivalent effect 0.02 % 0.01 % Net interest margin, tax-equivalent (2) 7.45 % 7.27 % Total cost of deposits (a+b) 6,002,546 286 0.02 % 6,260,990 1,689 0.11 % (1) Tax rate used to arrive at the TEY for the three months ended June 30, 2025 and 2024 was 21%. (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. Expand Selected Financial Information (Unaudited) As of and For the Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Equity to total assets 11.31 % 11.63 % 9.96 % 10.92 % 9.95 % Book value per common share outstanding $ 35.63 $ 34.54 $ 31.40 $ 33.09 $ 29.81 Tangible book value per common share outstanding $ 22.07 $ 21.30 $ 18.42 $ 19.97 $ 16.78 Common shares outstanding 22,953,608 23,558,939 24,119,416 24,847,353 25,085,230 Nonperforming assets to total assets 1.03 % 0.60 % 0.49 % 0.57 % 0.62 % Nonperforming loans and leases to total loans and leases 1.49 % 0.88 % 0.76 % 0.87 % 0.96 % Net interest margin 7.43 % 7.12 % 7.45 % 7.33 % 7.26 % Net interest margin, tax-equivalent 7.45 % 7.13 % 7.46 % 7.34 % 7.27 % Full-time equivalent employees 1,178 1,155 1,170 1,241 1,232 Expand Non-GAAP Reconciliations (Unaudited) Net Interest Margin and Cost of Deposits At and For the Three Months Ended (Dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Average interest earning assets $ 6,602,267 $ 7,761,138 $ 6,801,888 Net interest income $ 122,313 $ 136,278 $ 122,750 Net interest margin 7.43 % 7.12 % 7.26 % Quarterly average total deposits $ 6,002,546 $ 7,181,308 $ 6,260,990 Deposit interest expense $ 286 $ 4,086 $ 1,689 Cost of deposits 0.02 % 0.23 % 0.11 % Adjusted Net Interest Margin with contractual, rate-related card expenses associated with deposits on the Company's balance sheet Average interest earning assets $ 6,602,267 $ 7,761,138 $ 6,801,888 Net interest income 122,313 136,278 122,750 Less: Contractual, rate-related processing expense 23,831 26,852 25,320 Adjusted net interest income $ 98,482 $ 109,426 $ 97,430 Adjusted net interest margin 5.98 % 5.72 % 5.76 % Average total deposits $ 6,002,546 $ 7,181,308 $ 6,260,990 Deposit interest expense 286 4,086 1,689 Add: Contractual, rate-related processing expense 23,831 26,852 25,320 Adjusted deposit expense $ 24,117 $ 30,938 $ 27,009 Adjusted cost of deposits 1.61 % 1.75 % 1.74 % Expand
Yahoo
07-05-2025
- Business
- Yahoo
Pathward CEO Brett Pharr Honored as Silver Stevie® Award Winner in 2025 American Business Awards®
Pathward CEO Brett Pharr has been named the winner of a Silver Stevie® Award for Maverick of the Year in the Business Services Industries category in the 23rd Annual American Business Awards®. Pharr named Maverick of the Year for Business Services Industries. FRANKLIN, Tenn., May 07, 2025--(BUSINESS WIRE)--Pathward®, N.A., a national bank focused on financial access, today announced that Chief Executive Officer Brett Pharr has been named the winner of a Silver Stevie® Award for Maverick of the Year in the Business Services Industries category in the 23rd Annual American Business Awards®. The Maverick of the Year award recognizes an executive or manager who has affected the most positive change on his or her company and/or industry since the beginning of 2023. The American Business Awards received more than 3,600 nominations this year for consideration in a wide range of categories, according to the Stevie Awards Inc. Since becoming CEO in 2021, Pharr has led Pathward through a number of milestones, including its rebrand to Pathward. Leveraging nearly 40 years of risk management experience, Pharr has helped Pathward deliver solutions that increase financial availability, choice and opportunity for individuals and businesses, while adapting to a rapidly changing regulatory environment. Pharr's leadership has been crucial to a few specific initiatives, including inking partnerships aligned with Pathward's mission, a new product launch and business unit rebrand in our Partner Solutions business line, fostering a collaborative hybrid remote work environment with high employee satisfaction, and affirming Pathward's commitment to excellence in sustainability. "I'm honored to be recognized with a Silver Stevie from the American Business Awards and for the opportunity to lead Pathward through its evolution as a next-generation bank focused on delivering ways for everyone to access the financial services network," said Pharr. "It's the work our employees do day in and day out that is making a difference." View Pharr's award and other Management Award winners on "Organizations across the United States continue to demonstrate resilience and innovation," said Stevie Awards president Maggie Miller. "The 2025 Stevie winners have helped drive that success through their innovation, persistence, and hard work. We congratulate all of the winners in the 2025 ABAs and look forward to celebrating their achievements during our June 10 gala event in New York." Details about The American Business Awards and the list of 2025 Stevie winners are available at About Pathward® Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide support to individuals and businesses. Learn more at
Business Wire
07-05-2025
- Business
- Business Wire
Pathward CEO Brett Pharr Honored as Silver Stevie® Award Winner in 2025 American Business Awards®
FRANKLIN, Tenn.--(BUSINESS WIRE)-- Pathward ®, N.A., a national bank focused on financial access, today announced that Chief Executive Officer Brett Pharr has been named the winner of a Silver Stevie® Award for Maverick of the Year in the Business Services Industries category in the 23 rd Annual American Business Awards®. The Maverick of the Year award recognizes an executive or manager who has affected the most positive change on his or her company and/or industry since the beginning of 2023. The American Business Awards received more than 3,600 nominations this year for consideration in a wide range of categories, according to the Stevie Awards Inc. Since becoming CEO in 2021, Pharr has led Pathward through a number of milestones, including its rebrand to Pathward. Leveraging nearly 40 years of risk management experience, Pharr has helped Pathward deliver solutions that increase financial availability, choice and opportunity for individuals and businesses, while adapting to a rapidly changing regulatory environment. Pharr's leadership has been crucial to a few specific initiatives, including inking partnerships aligned with Pathward's mission, a new product launch and business unit rebrand in our Partner Solutions business line, fostering a collaborative hybrid remote work environment with high employee satisfaction, and affirming Pathward's commitment to excellence in sustainability. 'I'm honored to be recognized with a Silver Stevie from the American Business Awards and for the opportunity to lead Pathward through its evolution as a next-generation bank focused on delivering ways for everyone to access the financial services network,' said Pharr. 'It's the work our employees do day in and day out that is making a difference.' View Pharr's award and other Management Award winners on 'Organizations across the United States continue to demonstrate resilience and innovation,' said Stevie Awards president Maggie Miller. 'The 2025 Stevie winners have helped drive that success through their innovation, persistence, and hard work. We congratulate all of the winners in the 2025 ABAs and look forward to celebrating their achievements during our June 10 gala event in New York.' Details about The American Business Awards and the list of 2025 Stevie winners are available at About Pathward ® Pathward ®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide support to individuals and businesses. Learn more at About the Stevie Awards Stevie Awards are conferred in nine programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, the Middle East & North Africa Stevie Awards, The American Business Awards®, The International Business Awards®, the Stevie Awards for Women in Business, the Stevie Awards for Great Employers, the Stevie Awards for Sales & Customer Service, and the Stevie Awards for Technology Excellence. Stevie Awards competitions receive more than 12,000 entries each year from organizations in more than 70 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at
