Pathward Financial Inc. (CASH) reports earnings

The report was filed on February 6, 2025

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Pathward Financial Inc. (CASH-2.53%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing reports total revenue of $173.5 million for the first quarter, an increase of 7% compared to the same quarter in fiscal 2024. This increase was driven by higher net interest income and noninterest income.

Net interest margin increased to 6.84% from 6.23% in the previous year, primarily due to increased yields and balances in the loan and lease portfolio.

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Total gross loans and leases at December 31, 2024, were $4.56 billion, reflecting an increase of $136.4 million compared to December 31, 2023, and an increase of $487.5 million compared to September 30, 2024.

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During the first quarter of fiscal 2025, Pathward Financial repurchased 701,860 shares of common stock at an average price of $74.05. As of December 31, 2024, 6,298,140 shares were available for repurchase under the current program.

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Pathward Financial completed the sale of its commercial insurance premium finance business on October 31, 2024, for $603.3 million plus a $31.2 million premium, resulting in a $16.4 million pre-tax gain.

The company recorded a provision for credit losses of $12.0 million for the quarter, compared to $9.9 million in the prior year. Net charge-offs were $8.6 million, up from $5.5 million in the previous year.

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Noninterest income increased to $57.4 million, up from $52.8 million in the previous year. This increase was driven by gains on loan and lease sales, other income, and rental income.

Noninterest expense increased to $123.6 million from $119.3 million, primarily due to higher compensation and benefits, operating lease depreciation, and other expenses.

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Pathward Financial's total assets were $7.62 billion as of December 31, 2024, up from $7.55 billion at September 30, 2024. The increase was primarily due to growth in loans and leases, cash and cash equivalents, and other assets.

The company maintained its well-capitalized status, with a Tier 1 leverage capital ratio of 9.15% and a total capital ratio of 14.11% as of December 31, 2024.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Pathward Financial Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.