Pathward Financial(US:CASH)2025-07-28 20:10Financial Performance - Pathward Financial reported net income of $42.1 million, or $1.81 per share, for Q3 2025, a decrease from $44.9 million, or $1.78 per share, in Q3 2024[1][2]. - Total revenue for Q3 2025 was $195.8 million, an increase of $7.1 million, or 4%, compared to Q3 2024, driven by an increase in noninterest income[3]. - Noninterest income rose 11% to $73.4 million in Q3 2025, compared to $65.9 million in the same period last year, driven by secondary market revenue and tax services product fee income[10]. - Net interest income for the three months ended June 30, 2025, was $122,313,000, a decrease of 10.2% from $136,278,000 in the previous quarter[42]. - Net income attributable to common shareholders for the three months ended June 30, 2025, was $41,977,000, compared to $74,650,000 in the previous quarter, representing a decline of 43.7%[42]. - Basic earnings per share for the three months ended June 30, 2025, was $1.82, down from $3.16 in the previous quarter, a decrease of 42.5%[42]. Revenue and Expenses - Noninterest expense increased 11% to $139.3 million in Q3 2025, up from $125.5 million in Q3 2024, primarily due to higher legal and consulting expenses[12]. - Total noninterest expense for the three months ended June 30, 2025, was $139,322,000, a decrease from $148,177,000 in the previous quarter, reflecting a reduction of 5.8%[42]. - Total noninterest income for the three months ended June 30, 2025, was $73,442,000, down from $138,524,000 in the previous quarter, reflecting a decrease of 47%[42]. Loans and Assets - Total gross loans and leases increased by $127.7 million to $4.74 billion compared to June 30, 2024, and increased by $278.5 million from March 31, 2025[3][17]. - Loans and leases increased to $4,743,324,000 from $4,464,870,000, reflecting a growth of about 6.2% quarter-over-quarter[39]. - Commercial finance loans totaled $3.82 billion at June 30, 2025, reflecting an increase of $293.3 million, or 8%, from March 31, 2025[18]. - Total assets amounted to $7,229,617,000, an increase from $6,994,578,000 as of March 31, 2025, representing a growth of approximately 3.4%[39]. Credit Quality - The allowance for credit losses (ACL) was $106.0 million at June 30, 2025, an increase from $102.9 million at March 31, 2025, but a decrease from $106.8 million at June 30, 2024[19]. - Nonperforming assets increased to $74.7 million, or 1.03% of total assets, at June 30, 2025, compared to $41.6 million, or 0.60% of total assets, at March 31, 2025[26]. - Nonperforming loans and leases were $71.3 million, representing 1.49% of total gross loans and leases at June 30, 2025, compared to $39.8 million, or 0.88%, at March 31, 2025[27]. - 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 same period in the prior fiscal year[23]. Deposits and Liabilities - Total end-of-period deposits decreased 7% to $6.01 billion at June 30, 2025, compared to $6.43 billion at June 30, 2024[29]. - The average balance of total deposits and interest-bearing liabilities was $6.07 billion for the three-month period ended June 30, 2025, down from $6.35 billion for the same period in the prior fiscal year[28]. - Total liabilities rose to $6,411,756,000 from $6,180,800,000, indicating an increase of approximately 3.7%[39]. - Deposits increased to $6,005,246,000 from $5,819,209,000, showing a growth of about 3.2%[39]. Capital and Regulatory Standing - The company maintained its classification as well-capitalized and in good standing with regulatory agencies as of June 30, 2025[31]. - The total stockholders' equity was reported at $817,861,000, a slight increase from $813,778,000[39]. Future Outlook - The company plans to host a conference call on July 28, 2025, to discuss earnings and future outlook[32]. - Forward-looking statements indicate expectations for future operating results and strategic initiatives, subject to various risks and uncertainties[36]. Employee and Operational Metrics - Full-time equivalent employees increased to 1,178 from 1,155 in the previous quarter, and from 1,170 a year ago[47].