Pathward Financial(US:CASH)2026-01-22 21:07Financial Performance - Net income for the first quarter of fiscal 2026 was $35.2 million, or $1.57 per share, compared to $30.0 million, or $1.23 per share, in the same quarter of fiscal 2025, representing a 17.3% increase in net income [1][2]. - Total revenue for the first quarter was $173.1 million, with net interest income at $119.3 million, a decrease of 5% compared to the same quarter in fiscal 2025 [4][6]. - Noninterest income decreased 6% to $53.8 million, primarily due to declines in rental income and other income, partially offset by an increase in card and deposit fee income [9]. - Net income attributable to common shareholders for the quarter was $35,117 thousand, down from $38,664 thousand in the previous quarter, reflecting a decrease of 4.0% [47]. - Earnings per common share (basic) for the quarter was $1.57, compared to $1.70 in the previous quarter, a decline of 7.6% [47]. Loan and Credit Quality - New loan originations increased from $1.38 billion to $1.89 billion, driven by growth in consumer and commercial finance [6]. - The allowance for credit losses totaled $58.8 million, an increase from $53.3 million at the end of September 2025, but a decrease from $74.3 million at the end of December 2024 [18]. - The provision for credit losses was $3.2 million for the quarter ended December 31, 2025, a decrease from $18.7 million for the same period in the prior fiscal year [24]. - Nonperforming loans and leases at December 31, 2025, were $109.1 million, representing 2.15% of total gross loans and leases, compared to 2.05% at September 30, 2025 [29]. - Nonperforming loans and leases to total loans and leases increased to 2.15%, up from 1.49% in the previous year, indicating a rise in asset quality concerns [52]. Assets and Liabilities - Total gross loans and leases reached $4.98 billion, up from $4.66 billion at September 30, 2025, and $4.56 billion at December 31, 2024, driven by increases in commercial finance and seasonal tax services [16][17]. - Total assets increased to $7,560,205 thousand as of December 31, 2025, up from $7,172,344 thousand in September 2025, representing a growth of 5.4% [44]. - Total liabilities increased to $6,706,493 thousand as of December 31, 2025, compared to $6,314,890 thousand in September 2025, an increase of 6.2% [44]. - Total stockholders' equity as of December 31, 2025, is $853,712,000, an increase from $757,554,000 as of December 31, 2024, representing a growth of approximately 12.7% year-over-year [36]. Capital Management - Regulatory capital ratios remained above federal minimum requirements, with the Tier 1 leverage capital ratio at 9.51% as of December 31, 2025 [35]. - Common Equity Tier 1 capital stands at $679,613,000 as of December 31, 2025, compared to $629,770,000 a year earlier, reflecting an increase of about 7.9% [36]. - Total Tier 1 capital is reported at $692,837,000 as of December 31, 2025, up from $642,969,000 as of December 31, 2024, indicating a growth of approximately 7.8% [36]. - Total capital is $772,345,000 as of December 31, 2025, compared to $727,592,000 as of December 31, 2024, marking an increase of approximately 6.1% [36]. Operational Insights - The Company repurchased 651,804 shares of common stock at an average price of $72.07, with 4,286,012 shares remaining available for repurchase [6]. - The Company managed $1.05 billion of customer deposits at other banks, with a sequential quarter increase of $835.5 million [32]. - The Company will host a conference call on January 22, 2026, at 4:00 p.m. Central Time to discuss earnings and provide updates [37]. - The Quarterly Investor Update slide presentation will be available on the Company's Investor Relations website, providing additional insights into financial performance [38]. - The company maintained a full-time equivalent employee count of 1,170, consistent with the previous quarter, indicating stable operational capacity [52]. Future Outlook - Pathward Financial, Inc. aims to enhance financial inclusion through its Partner Solutions and Commercial Finance business lines, focusing on increasing financial availability and choice [39]. - Forward-looking statements indicate expectations for fiscal 2026, including performance goals and strategic initiatives aimed at revenue growth and improved operational efficiency [42].