Pathward Financial(US:CASH)2024-07-25 01:32Financial Performance - Net income attributable to Pathward Financial was $418 million in Q3 2024, a decrease of 7% compared to Q3 2023[110] - Earnings per diluted share were $166, a decrease of 1% compared to Q3 2023[111] - Net interest margin was 656% compared to 618% in the prior year period[85] - Adjusted NIM, including contractual, rate-related processing expenses, was 492% compared to 488% in the prior year period[85] Loan Portfolio - Total loans and leases increased 13% from Q3 2023 to $46126 million[114] - Commercial Finance balances grew by $419 million, or 12%, from the third quarter of the prior year[154] - As of June 30, 2024, $22 billion, or 48% of loans and leases contained floating or variable interest rates[183] Asset Quality - The ACL as a % of total loans and leases was 173% for 3Q24, a 28 bps decrease from the prior year[34] - Annualized adjusted net charge-offs were 049% of average loans over the last 12 months[34] - Nonperforming loans and leases were 096% as of June 30, 2023[113] Capital and Liquidity - Total liquidity was $2474 million, including $299 million in cash and cash equivalents, $38 million in unpledged investment securities, $980 million in FHLB borrowing capacity, $229 million in funds available through the Fed Discount Window, $575 million in unsecured funding providers, and $353 million in deposit balances held at other banks[37] - The company executed $150 million of share repurchases in 3Q24[139] Tax Season Update - Refund Advance originations totaled $156 billion in the 2024 tax season through June 30, 2024, compared to $146 billion in the 2023 tax season, a 7% increase[160] - Total tax product revenue increased 3% through the nine months ended June 30, 2024, compared to the same period of the prior year[129] - The approximate loss rate for the refund advance product was 149% for the nine months ended June 30, 2024, compared to 227% for the same period in the prior year, a decrease of 34%[160]