Columbia Banking System (NasdaqGS:COLB) Q3 2025 Earnings Call October 30, 2025 05:00 PM ET Speaker4Hello, and welcome to Columbia Banking System's Third Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press Star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question ...

Pathward Financial (NasdaqGS:CASH) Q4 2025 Earnings Call October 21, 2025 05:00 PM ET Company ParticipantsBrett Pharr - CEOTim Switzer - VP of Equity ResearchJoe Yanchunis - Senior Equity Research AssociateDarby Schoenfeld - SVP and Chief of Staff of Investor RelationsGreg Sigrist - CFOOperatorLadies and gentlemen, thank you for standing by and welcome to Pathward Financial’s fourth quarter and fiscal year 2025 investor conference call. During the presentation, all participants will be in a listen-only mode ...

Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $7.87 for the year, representing a year-over-year growth of 9% [6] - Net income for the year was $185.9 million, driven primarily by a 10% increase in non-interest income compared to last year [6] - The full-year net interest margin expanded to 7.34%, while the adjusted net interest margin was 5.92% [6] - Return on average assets for the year was 2.46%, and return on average tangible equity was 38.75% [6][23] Business Line Data and Key Metrics Changes - In the consumer segment, the company announced three new agreements, including partnerships with Trustly and Stripe, enhancing their service offerings [7] - In credit solutions, the company partnered with Upstart to offer personal loans, aligning with their financial inclusion goals [8] - The commercial finance segment saw total loans and leases grow by 14%, with significant improvements in origination dollars per FTE and a decrease in days to fund [9] Market Data and Key Metrics Changes - Deposits held on the company's balance sheet totaled $5.9 billion, a modest increase of $12 million year-over-year [19] - Loans and leases at September 30 were $4.7 billion, up from $4.1 billion last year, with growth primarily from commercial finance verticals [20] - Non-performing loans increased in the quarter, but the company believes they are well collateralized and manageable [21] Company Strategy and Development Direction - The company is focused on maintaining an optimized balance sheet and investing in technology to facilitate growth and scalability [10][11] - The 2026 strategy emphasizes the importance of people and culture, with a commitment to remote working and talent development [12] - The company aims to mature its risk and compliance framework to support partner success and enhance client experience [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2025 for future growth, despite challenges in the operating environment [5] - The company reiterated its fiscal year 2026 guidance for earnings per diluted share of $8.25 to $8.75, assuming no rate cuts and an effective tax rate of 18% to 22% [24] - Management highlighted the potential positive impact of tax code changes on the tax preparation market [9] Other Important Information - The company repurchased approximately 181,000 shares at an average price of $82.95 during the quarter, bringing full-year repurchases to almost 2.1 million shares [23] - The sale of the majority of the held-for-investment consumer portfolio is expected to put downward pressure on pre-tax income and net interest margin in 2026 [24] Q&A Session Summary Question: Details on the Upstart program and financial statement impact - The Upstart program is similar to other marketplace lending products, with credit indemnifications in place [27][28] Question: Duration of loans on the balance sheet - Loans are typically held for 30 days or less before being moved off the balance sheet [29] Question: Demand for early wage access loans and impact of government shutdown - Current demand is not significantly impacted by the government shutdown, but the partnership with Intuit is expected to drive volume [34] Question: Growth expectations in the tax business due to tax law changes - The company expects solid growth in the tax business, but not huge expectations due to a strong prior year [35][36] Question: Non-performing loans and portfolio concentration - Non-performing loans are managed effectively, and the company expects resolution of major NPLs in the coming quarters [39][41] Question: Share repurchase pace in 2026 - The buyback ratio is expected to return to historic norms, targeting an 80% to 90% payout ratio [42]

Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $7.87 for the fiscal year, representing a year-over-year growth of 9% [8] - Net income for the year was $185.9 million, driven primarily by a 10% increase in non-interest income compared to the previous year [8] - The net interest margin for the quarter was 7.46%, while the adjusted net interest margin was 6.04% [23] - Return on average assets for the year was 2.46%, and return on average tangible equity was 38.75% [8][29] Business Line Data and Key Metrics Changes - In the Consumer segment, the company announced three new agreements, including partnerships with Trustly and Stripe, which are expected to enhance their product offerings [9][11] - The Commercial segment saw total loans and leases grow by 14%, with significant growth in structured finance and asset-based lending [13][26] - The company shifted more than half of its held-for-investment consumer portfolio to held-for-sale, generating a $14.3 million release of credit provision [23] Market Data and Key Metrics Changes - Deposits held on the balance sheet totaled $5.9 billion, a modest increase of $12 million year-over-year [25] - Loans and leases at September 30 were $4.7 billion, compared to $4.1 billion last year, with growth primarily from commercial finance verticals [26] - Non-performing loans increased in the quarter, primarily driven by one working capital loan, but the company believes they are well collateralized [27][29] Company Strategy and Development Direction - The company is focused on maintaining an optimized balance sheet and investing in technology to facilitate evolution and scalability [15][16] - The 2026 strategy includes enhancing the client experience and continuing to build strategic partnerships to drive financial inclusion [14][20] - The company aims to sustain its momentum in talent acquisition and culture, having received recognition as one of the best companies to work for [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2025 for future growth, maintaining guidance for 2026 earnings per diluted share of $8.25 to $8.75 [21][30] - The company anticipates a solid tax year due to recent tax law changes, although growth expectations are moderate following a strong previous year [50][52] - Management noted that the increase in non-performing loans does not correlate with the annual net charge-off rate, emphasizing their collateral management approach [29][56] Other Important Information - The company repurchased approximately 181,000 shares at an average price of $82.95 during the quarter, with full-year repurchases totaling almost 2.1 million shares [30] - The liquidity position remains strong with $2.3 billion available, higher than the previous year [30] Q&A Session Summary Question: Details on the Upstart program and its financial impact - The Upstart program is similar to other marketplace lending products, with credit indemnifications in place and a balance sheet management approach [35][36] Question: Demand for early wage access loans and impact of government shutdown - Management indicated that the government shutdown's impact on demand is not significant, but the partnership with Intuit is expected to bring substantial volume [48][49] Question: Growth expectations in the tax business due to tax law changes - Management expects a solid tax year but does not have huge growth expectations due to a strong previous year, with historic growth rates in mid-single digits [50][52] Question: Insights on non-performing loans and their management - Management clarified that non-performing loans do not correlate with past due loans and emphasized their ability to manage and resolve these loans effectively [53][56] Question: Future pace of share repurchases - The company plans to return to historic norms for share repurchases, targeting an 80% to 90% payout ratio [59]