Q4 2024 Pathward Financial Inc Earnings Call Transcript
Key Points
- Pathward Financial Inc (CASH) reported earnings per diluted share of $6.62 for the fiscal year, exceeding the high end of their guidance range and representing an 11% year-over-year growth.
- Net interest income increased by 17% compared to the previous year, contributing to strong financial performance.
- The company achieved a return on average assets of 2.2% and a return on average tangible equity of 41.7%, indicating robust performance metrics.
- Pathward Financial Inc (CASH) has made significant progress in the SBA market, moving up to the 39th largest SBA 7(a) program lender in the country.
- The company extended its contract with H&R Block to June 2027 and launched new partnerships, demonstrating strong partner relationships and growth potential.
- Non-interest income declined compared to the prior year quarter, primarily due to a decrease in card and deposit fee income.
- Total loans and leases decreased by approximately $500 million compared to the end of the last quarter, partly due to the sale of the insurance premium finance business.
- The company experienced an increase in non-interest expenses, driven by higher compensation and benefits and rate-related card processing expenses.
- Provision for credit losses was approximately $800,000, a decrease from the previous year, but still a notable expense.
- The guidance for fiscal 2025 does not include the impact of the sale of the commercial insurance premium finance business, indicating potential uncertainty in future financial projections.
Ladies and gentlemen, thank you for standing by and welcome to Pathward Financial's fourth-quarter and fiscal year 2024 investor conference call. (Operator Instructions)
As a reminder, this conference call is being recorded.
I would now like to turn the conference call over to Darby Schoenfeld, Senior Vice President, Chief of Staff and Investor Relations. Please go ahead, Darby.
Thank you operator and welcome with me today are Password Financial, CEO Brett par and CFO Greg Sigri who will discuss our operating and financial results for the fourth quarter and full fiscal year of 2024. After which we will take your questions. Additional information including the earnings release, the investor presentation that accompanies our prepared remarks and supplemental slides may be found on our website at password financial dotcom.
As a reminder, our promise may include forward-looking statements including with respect to anticipated results
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