Pathward Financial Inc (CASH) Reports Q4 and Fiscal Year 2023 Earnings
Pathward Financial Inc (NASDAQ:CASH) reported a net income of $35.9 million for Q4 2023, up from $23.4 million in Q4 2022.
The company's net income for the fiscal year 2023 was $163.6 million, a slight increase from $156.4 million in 2022.
Pathward Financial Inc (NASDAQ:CASH) announced a new share repurchase program to repurchase up to 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028.
The company is raising its fiscal year 2024 GAAP earnings per diluted share guidance to a range of $6.20 to $6.70.
Pathward Financial Inc (NASDAQ:CASH) released its earnings report for the fourth quarter and fiscal year 2023 on October 25, 2023. The company reported a net income of $35.9 million, or $1.36 per share, for the fourth quarter, compared to a net income of $23.4 million, or $0.81 per share, for the same period in 2022. For the fiscal year 2023, the company reported a net income of $163.6 million, or $5.99 per share, compared to a net income of $156.4 million, or $5.26 per share, for the fiscal year 2022.
Company Performance and Financial Highlights
Pathward Financial Inc (NASDAQ:CASH) reported total revenue for the fourth quarter of $161.0 million, an increase of $37.8 million, or 31%, compared to the same quarter in fiscal 2022. This increase was driven by an increase in both net interest income and noninterest income. The company's net interest margin (NIM) increased 98 basis points to 6.19% for the fourth quarter from 5.21% during the same period of last year.
CEO Brett Pharr commented on the company's performance, stating,
During fiscal year 2023, we focused on operations across the enterprise, growing the commercial finance loan book, and working with new and existing partners to expand their product offerings. As a result, we increased net income by 5%, earnings per diluted share by 14% and expanded our return on average assets to over 2.3%. I am very pleased by everything we accomplished and look forward to furthering our progress on our three strategic initiatives this year. We are raising our guidance to a range of $6.20 - $6.70 to reflect our updated view on fiscal year 2024."
Financial Tables and Analysis
The company's total gross loans and leases at the end of September 2023 increased $829.8 million to $4.37 billion compared to September 2022. The increase was primarily due to growth in the commercial and consumer finance portfolios. The company's allowance for credit losses (ACL) totaled $49.7 million at the end of September 2023, a decrease compared to $81.9 million at the end of June 2023 and an increase compared to $45.9 million at the end of September 2022.
The company's nonperforming assets at the end of September 2023 were $58.0 million, representing 0.77% of total assets, compared to $40.8 million, or 0.55% of total assets at the end of June 2023 and $30.9 million, or 0.46% of total assets at the end of September 2022.
Pathward Financial Inc (NASDAQ:CASH) is raising its fiscal year 2024 GAAP earnings per diluted share guidance to a range of $6.20 to $6.70. The company expects that its annual effective tax rate in fiscal year 2024 will range between 16% and 20%.
Other Pertinent Details
On October 5, 2023, the company announced that Greg Sigrist has been appointed Executive Vice President (EVP), Chief Financial Officer (CFO) - Designee, beginning November 1, 2023. On August 25, 2023, the company announced a new share repurchase program to repurchase up to 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028.
Explore the complete 8-K earnings release (here) from Pathward Financial Inc for further details.
This article first appeared on GuruFocus.
