Pathward Financial Delivers Solid Fiscal 2024 Results, Celebrates Milestones

Pathward Financial, Inc. (Nasdaq: CASH), a leading U.S. financial services provider, has reported its financial results for the fiscal year ended September 30, 2024, showcasing a year of strong performance, strategic initiatives, and industry recognition.

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Robust Financial Performance

Pathward Financial reported net income of $168.4 million, or $6.62 per share, for the fiscal year ended September 30, 2024, representing an 11% year-over-year growth in earnings per diluted share. The company's return on average assets stood at 2.20%, reflecting its ability to generate consistent and profitable returns.The fourth quarter of fiscal 2024 saw the company's total revenue increase by 4% to $167.9 million, driven by a rise in net interest income. Pathward's net interest margin expanded by 47 basis points to 6.66%, driven by increased yields on earning assets and an improved earning asset mix.

Operational Highlights and Strategic Initiatives

Pathward Financial's CEO, Brett Pharr, highlighted the company's achievements in 2024, including being recertified as a Great Place to Work, maintaining its remote-first approach, announcing new partnerships, and celebrating employee awards. The company's newly rebranded Partner Solutions team was recognized as the Best Banking as a Service provider by Finovate.During the fiscal year, Pathward announced the sale of its commercial insurance premium finance business, which is expected to close by October 31, 2024. The company also celebrated the 20th anniversary of its subsidiary, Pathward, N.A., serving the payments industry, and renamed its "Banking as a Service" business line to "Partner Solutions."

Regulatory Capital and Asset Quality

Pathward Financial and its subsidiary, Pathward, N.A., remained well-capitalized and in good standing with regulatory agencies, with capital ratios exceeding federal regulatory minimums. The company's nonperforming assets to total assets ratio decreased to 0.57% at the end of the fiscal year, down from 0.77% a year earlier.The company's allowance for credit losses decreased to $45.3 million at the end of the fiscal year, reflecting improved credit quality across its loan and lease portfolios. Pathward's net charge-offs for the fiscal year were $57.6 million, a decrease from the prior year's $59.9 million.

Shareholder Returns and Capital Management

During the fiscal 2024 fourth quarter, Pathward Financial repurchased 236,308 shares of common stock at an average price of $63.44 per share. As of September 30, 2024, the company had 7,000,000 shares available for repurchase under its current common stock share repurchase program.The company's book value per common share outstanding increased to $33.79 at the end of the fiscal year, up from $24.85 a year earlier. Tangible book value per common share outstanding also grew to $20.67, reflecting the company's focus on creating long-term shareholder value.