Pathward Financial, Inc. Announces Results for 2024 Fiscal Third Quarter
CEO
Company Highlights
-
On
April 30, 2024 ,Pathward Financial was recognized amongKeefe, Bruyette & Woods, Inc. (also known as "KBW") honor roll list of the top banks producing "industry-leading and consistent earnings growth for investors." - During the quarter, Pathward announced the expansion and transformation of its Solutions for Financial Institutions, which previously only provided prepaid cards to banks and credit unions. With this expansion, Pathward can now also provide Commercial Finance Solutions to their business clients that do not qualify for traditional financing or when a product isn’t offered. Pathward also provides Financial Institutions the ability to offer merchant services to business clients.
Financial Highlights for the 2024 Fiscal Third Quarter
-
Total revenue for the third quarter was
$176.7 million , an increase of$11.5 million , or 7%, compared to the same quarter in fiscal 2023, driven by an increase in net interest income, partially offset by a reduction in noninterest income. - Net interest margin ("NIM") increased 38 basis points to 6.56% for the third quarter from 6.18% during the same period last year, primarily driven by increased yields on earning assets and an improved earning asset mix from the continued optimization of the portfolio. When including contractual, rate-related processing expense, NIM would have been 4.92% in the fiscal 2024 third quarter compared to 4.88% during the fiscal 2023 third quarter. Servicing fee income on off-balance sheet custodial deposits is not included in this calculation. See non-GAAP reconciliation table below.
-
Total gross loans and leases at
June 30, 2024 increased$539.7 million to$4.61 billion compared toJune 30, 2023 and increased$203.2 million when compared toMarch 31, 2024 . The increase compared to the prior year quarter was due to growth across the commercial finance, consumer finance, and warehouse finance loan portfolios, partially offset by a slight reduction in the seasonal tax services portfolio. The primary driver for the sequential increase was growth in the commercial and warehouse finance loan portfolios, partially offset by a reduction in the consumer finance and seasonal tax services loan portfolios. -
During the 2024 fiscal third quarter, the Company repurchased 286,920 shares of common stock at an average share price of
$52.24 . As ofJune 30, 2024 , there were 7,382,743 shares available for repurchase under the current common stock share repurchase programs.
Tax Season
For the nine months ended
Total tax services product income, net of losses and direct product expenses, increased 33% to
Net Interest Income
Net interest income for the third quarter of fiscal 2024 was
The Company’s average interest-earning assets for the third quarter of fiscal 2024 increased by
Fiscal 2024 third quarter NIM increased to 6.56% from 6.18% in the third fiscal quarter of last year. When including contractual, rate-related processing expense, NIM would have been 4.92% in the fiscal 2024 third quarter compared to 4.88% during the fiscal 2023 third quarter. See non-GAAP reconciliation table below. The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased 44 basis points to 6.75% compared to the prior year quarter, driven by an improved earning asset mix. The yield on the loan and lease portfolio was 8.56% compared to 8.31% for the comparable period last year and the TEY on the securities portfolio was 3.16% compared to 2.96% over that same period.
The Company's cost of funds for all deposits and borrowings averaged 0.20% during the fiscal 2024 third quarter, as compared to 0.13% during the prior year quarter. The Company's overall cost of deposits was 0.11% in the fiscal third quarter of 2024, as compared to 0.01% during the prior year quarter. When including contractual, rate-related processing expense, the Company's overall cost of deposits was 1.88% in the fiscal 2024 third quarter, as compared to 1.41% during the prior year quarter. See non-GAAP reconciliation table below.
Noninterest Income
Fiscal 2024 third quarter noninterest income decreased 3% to
The period-over-period decrease in card and deposit fee income was primarily related to lower servicing fee income due to a reduction in custodial deposits. Servicing fee totaled
Noninterest Expense
Noninterest expense increased 8% to
The card processing expense increase was due to rate-related agreements with BaaS partners. The amount of expense paid under those agreements is based on an agreed upon rate index that varies depending on the deposit levels, floor rates, market conditions, and other performance conditions. Generally, this rate index is based on a percentage of the Effective Federal Funds Rate ("EFFR") and reprices immediately upon a change in the EFFR. Approximately 57% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2024 third quarter. For the fiscal quarter ended
Income Tax Expense
The Company recorded income tax expense of
The Company originated
Investments, Loans and Leases |
|||||||||||||||||||
(Dollars in thousands) |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
Total investments |
$ |
1,759,486 |
|
|
$ |
1,814,140 |
|
|
$ |
1,886,021 |
|
|
$ |
1,840,819 |
|
|
$ |
1,951,996 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
— |
|
|
|
1,977 |
|
|
|
2,500 |
|
|
|
— |
|
|
|
3,000 |
|
Lease financing |
|
— |
|
|
|
— |
|
|
|
778 |
|
|
|
— |
|
|
|
— |
|
SBA/ |
|
7,030 |
|
|
|
7,372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer finance |
|
22,350 |
|
|
|
16,597 |
|
|
|
66,240 |
|
|
|
77,779 |
|
|
|
84,351 |
|
Total loans held for sale |
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
|
|
77,779 |
|
|
|
87,351 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Term lending |
|
1,533,722 |
|
|
|
1,489,054 |
|
|
|
1,452,274 |
|
|
|
1,308,133 |
|
|
|
1,253,841 |
|
Asset-based lending |
|
473,289 |
|
|
|
429,556 |
|
|
|
379,681 |
|
|
|
382,371 |
|
|
|
373,160 |
|
Factoring |
|
350,740 |
|
|
|
336,442 |
|
|
|
335,953 |
|
|
|
358,344 |
|
|
|
351,133 |
|
Lease financing |
|
155,044 |
|
|
|
168,616 |
|
|
|
188,889 |
|
|
|
183,392 |
|
|
|
201,996 |
|
Insurance premium finance |
|
617,054 |
|
|
|
522,904 |
|
|
|
671,035 |
|
|
|
800,077 |
|
|
|
666,265 |
|
SBA/ |
|
563,689 |
|
|
|
560,433 |
|
|
|
546,048 |
|
|
|
524,750 |
|
|
|
422,389 |
|
Other commercial finance |
|
166,653 |
|
|
|
149,056 |
|
|
|
160,628 |
|
|
|
166,091 |
|
|
|
171,954 |
|
Commercial finance |
|
3,860,191 |
|
|
|
3,656,061 |
|
|
|
3,734,508 |
|
|
|
3,723,158 |
|
|
|
3,440,738 |
|
Consumer finance |
|
253,358 |
|
|
|
267,031 |
|
|
|
301,510 |
|
|
|
254,416 |
|
|
|
200,121 |
|
Tax services |
|
43,184 |
|
|
|
84,502 |
|
|
|
33,435 |
|
|
|
5,192 |
|
|
|
47,194 |
|
Warehouse finance |
|
449,962 |
|
|
|
394,814 |
|
|
|
349,911 |
|
|
|
376,915 |
|
|
|
380,458 |
|
Total loans and leases |
|
4,606,695 |
|
|
|
4,402,408 |
|
|
|
4,419,364 |
|
|
|
4,359,681 |
|
|
|
4,068,511 |
|
Net deferred loan origination costs |
|
5,857 |
|
|
|
6,977 |
|
|
|
6,917 |
|
|
|
6,435 |
|
|
|
4,388 |
|
Total gross loans and leases |
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
|
|
4,366,116 |
|
|
|
4,072,899 |
|
Allowance for credit losses |
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
|
|
(49,705 |
) |
|
|
(81,916 |
) |
Total loans and leases, net |
$ |
4,532,716 |
|
|
$ |
4,328,608 |
|
|
$ |
4,372,496 |
|
|
$ |
4,316,411 |
|
|
$ |
3,990,983 |
|
The Company's investment security balances at
Total gross loans and leases totaled
Commercial finance loans, which comprised 84% of the Company's loan and lease portfolio, totaled
Asset Quality
The Company’s allowance for credit losses ("ACL") totaled
The
The following table presents the Company's ACL as a percentage of its total loans and leases.
|
As of the Period Ended |
|||||||||||||
(Unaudited) |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|||||
Commercial finance |
1.17 |
% |
1.21 |
% |
1.30 |
% |
1.26 |
% |
1.35 |
% |
||||
Consumer finance |
2.23 |
% |
1.71 |
% |
1.45 |
% |
0.92 |
% |
0.92 |
% |
||||
Tax services |
66.35 |
% |
37.31 |
% |
1.52 |
% |
0.04 |
% |
70.20 |
% |
||||
Warehouse finance |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
0.10 |
% |
||||
Total loans and leases |
1.73 |
% |
1.83 |
% |
1.22 |
% |
1.14 |
% |
2.01 |
% |
||||
Total loans and leases excluding tax services |
1.12 |
% |
1.14 |
% |
1.21 |
% |
1.14 |
% |
1.21 |
% |
||||
The Company's ACL as a percentage of total loans and leases decreased to 1.73% at
Activity in the allowance for credit losses for the periods presented was as follows.
(Unaudited) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(Dollars in thousands) |
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
Beginning balance |
$ |
80,777 |
|
$ |
53,785 |
|
$ |
84,304 |
|
|
$ |
49,705 |
|
$ |
45,947 |
|
|||
Provision (reversal of) - tax services loans |
|
(3,285 |
) |
|
25,221 |
|
|
(229 |
) |
|
|
23,292 |
|
|
32,830 |
|
|||
Provision (reversal of) - all other loans and leases |
|
8,926 |
|
|
684 |
|
|
2,059 |
|
|
|
17,820 |
|
|
15,549 |
|
|||
Charge-offs - tax services loans |
|
(820 |
) |
|
— |
|
|
(404 |
) |
|
|
(1,965 |
) |
|
(2,135 |
) |
|||
Charge-offs - all other loans and leases |
|
(7,772 |
) |
|
(5,492 |
) |
|
(5,597 |
) |
|
|
(18,990 |
) |
|
(14,931 |
) |
|||
Recoveries - tax services loans |
|
1,230 |
|
|
5,800 |
|
|
671 |
|
|
|
7,324 |
|
|
2,432 |
|
|||
Recoveries - all other loans and leases |
|
780 |
|
|
779 |
|
|
1,112 |
|
|
|
2,650 |
|
|
2,224 |
|
|||
Ending balance |
$ |
79,836 |
|
$ |
80,777 |
|
$ |
81,916 |
|
|
$ |
79,836 |
|
$ |
81,916 |
|
|||
The Company recognized a provision for credit losses of
The Company's past due loans and leases were as follows for the periods presented.
As of |
Accruing and Nonaccruing Loans and Leases |
|
Nonperforming Loans and Leases |
|||||||||||||||||||||||
(Dollars in thousands) |
30-59 Days Past Due |
|
60-89 Days Past Due |
|
> 89 Days Past Due |
|
Total Past Due |
|
Current |
|
Total Loans and Leases Receivable |
|
> 89 Days Past Due and Accruing |
|
Nonaccrual Balance |
|
Total |
|||||||||
Loans held for sale |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
29,380 |
|
$ |
29,380 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
28,224 |
|
|
7,348 |
|
|
17,071 |
|
|
52,643 |
|
|
3,807,548 |
|
|
3,860,191 |
|
|
8,427 |
|
|
27,613 |
|
|
36,040 |
Consumer finance |
|
4,496 |
|
|
3,534 |
|
|
8,588 |
|
|
16,618 |
|
|
236,740 |
|
|
253,358 |
|
|
8,588 |
|
|
— |
|
|
8,588 |
Tax services |
|
— |
|
|
43,184 |
|
|
— |
|
|
43,184 |
|
|
— |
|
|
43,184 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
449,962 |
|
|
449,962 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
32,720 |
|
|
54,066 |
|
|
25,659 |
|
|
112,445 |
|
|
4,494,250 |
|
|
4,606,695 |
|
|
17,015 |
|
|
27,613 |
|
|
44,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
32,720 |
|
$ |
54,066 |
|
$ |
25,659 |
|
$ |
112,445 |
|
$ |
4,523,629 |
|
$ |
4,636,074 |
|
$ |
17,015 |
|
$ |
27,613 |
|
$ |
44,628 |
As of |
Accruing and Nonaccruing Loans and Leases |
|
Nonperforming Loans and Leases |
|||||||||||||||||||||||
(Dollars in thousands) |
30-59 Days Past Due |
|
60-89 Days Past Due |
|
> 89 Days Past Due |
|
Total Past Due |
|
Current |
|
Total Loans and Leases Receivable |
|
> 89 Days Past Due and Accruing |
|
Nonaccrual Balance |
|
Total |
|||||||||
Loans held for sale |
$ |
323 |
|
$ |
546 |
|
$ |
843 |
|
$ |
1,712 |
|
$ |
24,234 |
|
$ |
25,946 |
|
$ |
843 |
|
$ |
— |
|
$ |
843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial finance |
|
36,482 |
|
|
23,986 |
|
|
15,596 |
|
|
76,064 |
|
|
3,579,997 |
|
|
3,656,061 |
|
|
2,679 |
|
|
27,781 |
|
|
30,460 |
Consumer finance |
|
4,293 |
|
|
3,001 |
|
|
3,093 |
|
|
10,387 |
|
|
256,644 |
|
|
267,031 |
|
|
3,093 |
|
|
— |
|
|
3,093 |
Tax services |
|
1,123 |
|
|
— |
|
|
— |
|
|
1,123 |
|
|
83,379 |
|
|
84,502 |
|
|
— |
|
|
— |
|
|
— |
Warehouse finance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
394,814 |
|
|
394,814 |
|
|
— |
|
|
— |
|
|
— |
Total loans and leases held for investment |
|
41,898 |
|
|
26,987 |
|
|
18,689 |
|
|
87,574 |
|
|
4,314,834 |
|
|
4,402,408 |
|
|
5,772 |
|
|
27,781 |
|
|
33,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total loans and leases |
$ |
42,221 |
|
$ |
27,533 |
|
$ |
19,532 |
|
$ |
89,286 |
|
$ |
4,339,068 |
|
$ |
4,428,354 |
|
$ |
6,615 |
|
$ |
27,781 |
|
$ |
34,396 |
The Company's nonperforming assets at
The increase in the nonperforming assets as a percentage of total assets at
The Company's nonperforming loans and leases at
The Company has various portfolios of consumer lending and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.
|
Asset Classification |
||||||||||||||||
(Dollars in thousands) |
Pass |
|
Watch |
|
Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
||||||
As of |
|
|
|
|
|
|
|||||||||||
Commercial finance |
$ |
3,058,737 |
$ |
537,278 |
$ |
63,523 |
$ |
192,473 |
$ |
8,180 |
$ |
3,860,191 |
|||||
Warehouse finance |
|
449,962 |
|
— |
|
— |
|
— |
|
— |
|
449,962 |
|||||
Total loans and leases |
$ |
3,508,699 |
$ |
537,278 |
$ |
63,523 |
$ |
192,473 |
$ |
8,180 |
$ |
4,310,153 |
|
Asset Classification |
||||||||||||||||
(Dollars in thousands) |
Pass |
|
Watch |
|
Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
||||||
As of |
|
||||||||||||||||
Commercial finance |
$ |
2,893,892 |
$ |
447,110 |
$ |
87,657 |
$ |
218,108 |
$ |
9,294 |
$ |
3,656,061 |
|||||
Warehouse finance |
|
394,814 |
|
— |
|
— |
|
— |
|
— |
|
394,814 |
|||||
Total loans and leases |
$ |
3,288,706 |
$ |
447,110 |
$ |
87,657 |
$ |
218,108 |
$ |
9,294 |
$ |
4,050,875 |
|||||
Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was
Total end-of-period deposits increased 2% to
As of
As of
The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
As of the Periods Indicated |
2024(1) |
|
2024 |
|
2 023 |
|
2 023 |
|
2 023 |
|||||
Company |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage capital ratio |
9.13 |
% |
|
7.75 |
% |
|
7.96 |
% |
|
8.11 |
% |
|
8.40 |
% |
Common equity Tier 1 capital ratio |
12.44 |
% |
|
12.30 |
% |
|
11.43 |
% |
|
11.25 |
% |
|
11.52 |
% |
Tier 1 capital ratio |
12.70 |
% |
|
12.56 |
% |
|
11.69 |
% |
|
11.50 |
% |
|
11.79 |
% |
Total capital ratio |
14.33 |
% |
|
14.21 |
% |
|
13.12 |
% |
|
12.84 |
% |
|
13.45 |
% |
Bank |
|
|
|
|
|
|
|
|
|
|||||
Tier 1 leverage ratio |
9.36 |
% |
|
7.92 |
% |
|
8.15 |
% |
|
8.32 |
% |
|
8.67 |
% |
Common equity Tier 1 capital ratio |
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
|
11.81 |
% |
|
12.17 |
% |
Tier 1 capital ratio |
13.02 |
% |
|
12.83 |
% |
|
11.97 |
% |
|
11.81 |
% |
|
12.17 |
% |
Total capital ratio |
14.27 |
% |
|
14.09 |
% |
|
13.01 |
% |
|
12.76 |
% |
|
13.42 |
% |
(1) |
|
The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
|
Standardized Approach(1) |
||||||||||||||||||
As of the Periods Indicated
(Dollars in thousands) |
2 024 |
|
2 024 |
|
2 023 |
|
2 023 |
|
2 023 |
||||||||||
Total stockholders' equity |
$ |
765,248 |
|
|
$ |
739,462 |
|
|
$ |
729,282 |
|
|
$ |
650,625 |
|
|
$ |
677,721 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
LESS: |
|
296,496 |
|
|
|
296,889 |
|
|
|
297,283 |
|
|
|
297,679 |
|
|
|
298,092 |
|
LESS: Certain other intangible assets |
|
18,315 |
|
|
|
19,146 |
|
|
|
20,093 |
|
|
|
21,228 |
|
|
|
22,372 |
|
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards |
|
11,880 |
|
|
|
15,862 |
|
|
|
20,253 |
|
|
|
19,679 |
|
|
|
12,157 |
|
LESS: Net unrealized (losses) on available for sale securities |
|
(206,584 |
) |
|
|
(205,460 |
) |
|
|
(187,901 |
) |
|
|
(254,294 |
) |
|
|
(207,358 |
) |
LESS: Noncontrolling interest |
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
|
|
(1,005 |
) |
|
|
(631 |
) |
ADD: Adoption of Accounting Standards Update 2016-13 |
|
1,345 |
|
|
|
1,345 |
|
|
|
1,345 |
|
|
|
2,017 |
|
|
|
2,017 |
|
Common Equity Tier 1(1) |
|
646,992 |
|
|
|
614,790 |
|
|
|
581,409 |
|
|
|
569,355 |
|
|
|
555,106 |
|
Long-term borrowings and other instruments qualifying as Tier 1 |
|
13,661 |
|
|
|
13,661 |
|
|
|
13,661 |
|
|
|
13,661 |
|
|
|
13,661 |
|
Tier 1 minority interest not included in common equity Tier 1 capital |
|
(374 |
) |
|
|
(311 |
) |
|
|
(410 |
) |
|
|
(826 |
) |
|
|
(454 |
) |
Total Tier 1 capital |
|
660,279 |
|
|
|
628,140 |
|
|
|
594,660 |
|
|
|
582,190 |
|
|
|
568,313 |
|
Allowance for credit losses |
|
65,182 |
|
|
|
62,715 |
|
|
|
53,037 |
|
|
|
47,960 |
|
|
|
60,489 |
|
Subordinated debentures, net of issuance costs |
|
19,668 |
|
|
|
19,642 |
|
|
|
19,617 |
|
|
|
19,591 |
|
|
|
19,566 |
|
Total capital |
$ |
745,129 |
|
|
$ |
710,497 |
|
|
$ |
667,314 |
|
|
$ |
649,741 |
|
|
$ |
648,368 |
|
(1) |
Capital ratios were determined using the Basel III capital rules that became effective on |
Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at
The Quarterly Investor Update slide presentation prepared for use in connection with the Company's conference call and earnings webcast is available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at www.pathwardfinancial.com. A webcast replay will also be archived at www.pathwardfinancial.com for one year.
Upcoming Investor Events
-
Raymond James U.S. Bank and Banking on Tech Conference,Sept. 5, 2024 |Chicago, IL
About
Forward-Looking Statements
The Company and the Bank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” "target," or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results including our earnings per diluted share guidance, annual effective tax rate and related performance expectations; progress on key strategic initiatives; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; expected nonperforming loan resolutions and net charge off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended
Condensed Consolidated Statements of Financial Condition (Unaudited) |
|||||||||||||||||||
(Dollars in Thousands, Except Share Data) |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
298,926 |
|
|
$ |
347,888 |
|
|
$ |
671,630 |
|
|
$ |
375,580 |
|
|
$ |
515,271 |
|
Securities available for sale, at fair value |
|
1,725,460 |
|
|
|
1,779,458 |
|
|
|
1,850,581 |
|
|
|
1,804,228 |
|
|
|
1,914,271 |
|
Securities held to maturity, at amortized cost |
|
34,026 |
|
|
|
34,682 |
|
|
|
35,440 |
|
|
|
36,591 |
|
|
|
37,725 |
|
|
|
24,449 |
|
|
|
25,844 |
|
|
|
23,694 |
|
|
|
28,210 |
|
|
|
30,890 |
|
Loans held for sale |
|
29,380 |
|
|
|
25,946 |
|
|
|
69,518 |
|
|
|
77,779 |
|
|
|
87,351 |
|
Loans and leases |
|
4,612,552 |
|
|
|
4,409,385 |
|
|
|
4,426,281 |
|
|
|
4,366,116 |
|
|
|
4,072,899 |
|
Allowance for credit losses |
|
(79,836 |
) |
|
|
(80,777 |
) |
|
|
(53,785 |
) |
|
|
(49,705 |
) |
|
|
(81,916 |
) |
Accrued interest receivable |
|
31,755 |
|
|
|
30,294 |
|
|
|
27,080 |
|
|
|
23,282 |
|
|
|
22,332 |
|
Premises, furniture, and equipment, net |
|
36,953 |
|
|
|
37,266 |
|
|
|
38,270 |
|
|
|
39,160 |
|
|
|
38,601 |
|
Rental equipment, net |
|
209,544 |
|
|
|
215,885 |
|
|
|
228,916 |
|
|
|
211,750 |
|
|
|
224,212 |
|
|
|
327,018 |
|
|
|
328,001 |
|
|
|
329,241 |
|
|
|
330,225 |
|
|
|
331,335 |
|
Other assets |
|
280,053 |
|
|
|
283,245 |
|
|
|
280,571 |
|
|
|
292,327 |
|
|
|
265,654 |
|
Total assets |
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
|
$ |
7,535,543 |
|
|
$ |
7,458,625 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
6,431,516 |
|
|
|
6,368,344 |
|
|
|
6,936,055 |
|
|
|
6,589,182 |
|
|
|
6,306,976 |
|
Short-term borrowings |
|
— |
|
|
|
31,000 |
|
|
|
— |
|
|
|
13,000 |
|
|
|
230,000 |
|
Long-term borrowings |
|
33,329 |
|
|
|
33,373 |
|
|
|
33,614 |
|
|
|
33,873 |
|
|
|
34,178 |
|
Accrued expenses and other liabilities |
|
300,187 |
|
|
|
264,938 |
|
|
|
228,486 |
|
|
|
248,863 |
|
|
|
209,750 |
|
Total liabilities |
|
6,765,032 |
|
|
|
6,697,655 |
|
|
|
7,198,155 |
|
|
|
6,884,918 |
|
|
|
6,780,904 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock, |
|
251 |
|
|
|
254 |
|
|
|
260 |
|
|
|
262 |
|
|
|
266 |
|
Common stock, Nonvoting, |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
636,284 |
|
|
|
634,415 |
|
|
|
629,737 |
|
|
|
628,500 |
|
|
|
625,825 |
|
Retained earnings |
|
343,392 |
|
|
|
317,964 |
|
|
|
293,463 |
|
|
|
278,655 |
|
|
|
267,100 |
|
Accumulated other comprehensive loss |
|
(207,992 |
) |
|
|
(206,570 |
) |
|
|
(188,433 |
) |
|
|
(255,443 |
) |
|
|
(207,896 |
) |
|
|
(6,181 |
) |
|
|
(6,181 |
) |
|
|
(5,235 |
) |
|
|
(344 |
) |
|
|
(6,943 |
) |
Total equity attributable to parent |
|
765,754 |
|
|
|
739,882 |
|
|
|
729,792 |
|
|
|
651,630 |
|
|
|
678,352 |
|
Noncontrolling interest |
|
(506 |
) |
|
|
(420 |
) |
|
|
(510 |
) |
|
|
(1,005 |
) |
|
|
(631 |
) |
Total stockholders’ equity |
|
765,248 |
|
|
|
739,462 |
|
|
|
729,282 |
|
|
|
650,625 |
|
|
|
677,721 |
|
Total liabilities and stockholders’ equity |
$ |
7,530,280 |
|
|
$ |
7,437,117 |
|
|
$ |
7,927,437 |
|
|
$ |
7,535,543 |
|
|
$ |
7,458,625 |
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
(Dollars in Thousands, Except Share and Per Share Data) |
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|||||||
Loans and leases, including fees |
$ |
95,871 |
|
|
$ |
102,750 |
|
$ |
81,242 |
|
|
$ |
293,584 |
|
$ |
233,517 |
Mortgage-backed securities |
|
9,748 |
|
|
|
9,998 |
|
|
10,234 |
|
|
|
29,795 |
|
|
30,972 |
Other investments |
|
8,323 |
|
|
|
14,013 |
|
|
7,870 |
|
|
|
33,222 |
|
|
24,604 |
|
|
113,942 |
|
|
|
126,761 |
|
|
99,346 |
|
|
|
356,601 |
|
|
289,093 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
1,689 |
|
|
|
6,685 |
|
|
164 |
|
|
|
11,900 |
|
|
2,402 |
FHLB advances and other borrowings |
|
1,394 |
|
|
|
1,775 |
|
|
1,717 |
|
|
|
5,505 |
|
|
3,764 |
|
|
3,083 |
|
|
|
8,460 |
|
|
1,881 |
|
|
|
17,405 |
|
|
6,166 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
110,859 |
|
|
|
118,301 |
|
|
97,465 |
|
|
|
339,196 |
|
|
282,927 |
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit loss |
|
5,881 |
|
|
|
26,052 |
|
|
1,773 |
|
|
|
41,823 |
|
|
48,312 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income after provision for credit loss |
|
104,978 |
|
|
|
92,249 |
|
|
95,692 |
|
|
|
297,373 |
|
|
234,615 |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|||||||
Refund transfer product fees |
|
9,111 |
|
|
|
28,942 |
|
|
8,262 |
|
|
|
38,475 |
|
|
39,144 |
Refund advance fee income |
|
(67 |
) |
|
|
43,200 |
|
|
(927 |
) |
|
|
43,244 |
|
|
37,685 |
Card and deposit fees |
|
33,408 |
|
|
|
35,344 |
|
|
39,708 |
|
|
|
99,502 |
|
|
119,513 |
Rental income |
|
13,779 |
|
|
|
13,720 |
|
|
13,980 |
|
|
|
40,958 |
|
|
39,628 |
Gain on sale of trademarks |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
10,000 |
Gain on sale of other |
|
4,675 |
|
|
|
1,695 |
|
|
821 |
|
|
|
9,210 |
|
|
657 |
Other income |
|
4,965 |
|
|
|
6,044 |
|
|
5,889 |
|
|
|
16,188 |
|
|
13,921 |
Total noninterest income |
|
65,871 |
|
|
|
128,945 |
|
|
67,733 |
|
|
|
247,577 |
|
|
260,548 |
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|||||||
Compensation and benefits |
|
48,449 |
|
|
|
54,073 |
|
|
47,402 |
|
|
|
149,174 |
|
|
137,966 |
Refund transfer product expense |
|
2,136 |
|
|
|
7,366 |
|
|
1,727 |
|
|
|
9,694 |
|
|
9,695 |
Refund advance expense |
|
47 |
|
|
|
1,846 |
|
|
239 |
|
|
|
1,923 |
|
|
1,869 |
Card processing |
|
34,314 |
|
|
|
35,163 |
|
|
26,342 |
|
|
|
104,061 |
|
|
75,949 |
Occupancy and equipment expense |
|
9,070 |
|
|
|
9,293 |
|
|
8,595 |
|
|
|
27,211 |
|
|
25,417 |
Operating lease equipment depreciation |
|
10,465 |
|
|
|
10,424 |
|
|
10,517 |
|
|
|
31,312 |
|
|
34,864 |
Legal and consulting |
|
5,410 |
|
|
|
6,141 |
|
|
5,089 |
|
|
|
16,443 |
|
|
19,469 |
Intangible amortization |
|
983 |
|
|
|
1,240 |
|
|
1,168 |
|
|
|
3,207 |
|
|
3,861 |
Impairment expense |
|
999 |
|
|
|
2,013 |
|
|
2,749 |
|
|
|
3,012 |
|
|
3,273 |
Other expense |
|
11,806 |
|
|
|
12,872 |
|
|
10,750 |
|
|
|
37,347 |
|
|
34,410 |
Total noninterest expense |
|
123,679 |
|
|
|
140,431 |
|
|
114,578 |
|
|
|
383,384 |
|
|
346,773 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income before income tax expense |
|
47,170 |
|
|
|
80,763 |
|
|
48,847 |
|
|
|
161,566 |
|
|
148,390 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income tax expense |
|
5,123 |
|
|
|
15,246 |
|
|
3,243 |
|
|
|
26,088 |
|
|
18,996 |
|
|
|
|
|
|
|
|
|
|
|||||||
Net income before noncontrolling interest |
|
42,047 |
|
|
|
65,517 |
|
|
45,604 |
|
|
|
135,478 |
|
|
129,394 |
Net income attributable to noncontrolling interest |
|
212 |
|
|
|
249 |
|
|
508 |
|
|
|
718 |
|
|
1,685 |
Net income attributable to parent |
$ |
41,835 |
|
|
$ |
65,268 |
|
$ |
45,096 |
|
|
$ |
134,760 |
|
$ |
127,709 |
|
|
|
|
|
|
|
|
|
|
|||||||
Less: Allocation of Earnings to participating securities(1) |
|
432 |
|
|
|
524 |
|
|
690 |
|
|
|
1,180 |
|
|
1,920 |
Net income attributable to common shareholders(1) |
|
41,403 |
|
|
|
64,744 |
|
|
44,406 |
|
|
|
133,580 |
|
|
125,789 |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.66 |
|
|
$ |
2.56 |
|
$ |
1.69 |
|
|
$ |
5.27 |
|
$ |
4.63 |
Diluted |
$ |
1.66 |
|
|
$ |
2.56 |
|
$ |
1.68 |
|
|
$ |
5.27 |
|
$ |
4.62 |
Shares used in computing earnings per common share: |
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
24,946,085 |
|
|
|
25,281,743 |
|
|
26,346,693 |
|
|
|
25,335,621 |
|
|
27,152,773 |
Diluted |
|
24,979,818 |
|
|
|
25,311,144 |
|
|
26,447,032 |
|
|
|
25,364,642 |
|
|
27,238,801 |
(1) |
Amounts presented are used in the two-class earnings per common share calculation. |
Average Balances, Interest Rates and Yields |
|||||||||||||||||
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield. |
|||||||||||||||||
Three Months Ended |
2024 |
|
2023 |
||||||||||||||
(Dollars in thousands) |
Average Outstanding Balance |
|
Interest Earned / Paid |
|
Yield / Rate(1) |
|
Average Outstanding Balance |
|
Interest Earned / Paid |
|
Yield / Rate(1) |
||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and fed funds sold |
$ |
224,987 |
|
$ |
2,053 |
|
3.67 |
% |
|
$ |
248,865 |
|
$ |
2,441 |
|
3.93 |
% |
Mortgage-backed securities |
|
1,438,683 |
|
|
9,748 |
|
2.73 |
% |
|
|
1,533,122 |
|
|
10,234 |
|
2.68 |
% |
Tax exempt investment securities |
|
128,117 |
|
|
911 |
|
3.62 |
% |
|
|
145,474 |
|
|
989 |
|
3.45 |
% |
Asset-backed securities |
|
220,461 |
|
|
3,148 |
|
5.74 |
% |
|
|
188,039 |
|
|
2,120 |
|
4.52 |
% |
Other investment securities |
|
282,966 |
|
|
2,211 |
|
3.14 |
% |
|
|
292,025 |
|
|
2,320 |
|
3.19 |
% |
Total investments |
|
2,070,227 |
|
|
16,018 |
|
3.16 |
% |
|
|
2,158,660 |
|
|
15,663 |
|
2.96 |
% |
Commercial finance |
|
3,756,152 |
|
|
78,353 |
|
8.39 |
% |
|
|
3,268,780 |
|
|
68,174 |
|
8.37 |
% |
Consumer finance |
|
286,476 |
|
|
6,865 |
|
9.64 |
% |
|
|
225,470 |
|
|
4,665 |
|
8.30 |
% |
Tax services |
|
56,836 |
|
|
55 |
|
0.39 |
% |
|
|
52,477 |
|
|
25 |
|
0.19 |
% |
Warehouse finance |
|
407,210 |
|
|
10,598 |
|
10.47 |
% |
|
|
372,498 |
|
|
8,378 |
|
9.02 |
% |
Total loans and leases |
|
4,506,674 |
|
|
95,871 |
|
8.56 |
% |
|
|
3,919,225 |
|
|
81,242 |
|
8.31 |
% |
Total interest-earning assets |
$ |
6,801,888 |
|
$ |
113,942 |
|
6.75 |
% |
|
$ |
6,326,750 |
|
$ |
99,346 |
|
6.31 |
% |
Noninterest-earning assets |
|
537,525 |
|
|
|
|
|
|
574,840 |
|
|
|
|
||||
Total assets |
$ |
7,339,413 |
|
|
|
|
|
$ |
6,901,590 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing checking |
$ |
684 |
|
$ |
— |
|
0.14 |
% |
|
$ |
339 |
|
$ |
— |
|
0.22 |
% |
Savings |
|
56,565 |
|
|
3 |
|
0.02 |
% |
|
|
69,310 |
|
|
7 |
|
0.04 |
% |
Money markets |
|
178,255 |
|
|
584 |
|
1.32 |
% |
|
|
126,994 |
|
|
76 |
|
0.24 |
% |
Time deposits |
|
4,265 |
|
|
3 |
|
0.32 |
% |
|
|
6,224 |
|
|
3 |
|
0.19 |
% |
Wholesale deposits |
|
74,167 |
|
|
1,099 |
|
5.96 |
% |
|
|
5,794 |
|
|
78 |
|
5.38 |
% |
Total interest-bearing deposits (a) |
|
313,936 |
|
|
1,689 |
|
2.16 |
% |
|
|
208,661 |
|
|
164 |
|
0.32 |
% |
Overnight fed funds purchased |
|
52,374 |
|
|
730 |
|
5.61 |
% |
|
|
78,320 |
|
|
1,057 |
|
5.42 |
% |
Subordinated debentures |
|
19,651 |
|
|
355 |
|
7.26 |
% |
|
|
19,549 |
|
|
355 |
|
7.28 |
% |
Other borrowings |
|
13,705 |
|
|
309 |
|
9.07 |
% |
|
|
14,850 |
|
|
305 |
|
8.24 |
% |
Total borrowings |
|
85,730 |
|
|
1,394 |
|
6.54 |
% |
|
|
112,719 |
|
|
1,717 |
|
6.11 |
% |
Total interest-bearing liabilities |
|
399,666 |
|
|
3,083 |
|
3.10 |
% |
|
|
321,380 |
|
|
1,881 |
|
2.35 |
% |
Noninterest-bearing deposits (b) |
|
5,947,054 |
|
|
— |
|
— |
% |
|
|
5,686,581 |
|
|
— |
|
— |
% |
Total deposits and interest-bearing liabilities |
$ |
6,346,720 |
|
$ |
3,083 |
|
0.20 |
% |
|
$ |
6,007,961 |
|
$ |
1,881 |
|
0.13 |
% |
Other noninterest-bearing liabilities |
|
252,763 |
|
|
|
|
|
|
206,708 |
|
|
|
|
||||
Total liabilities |
|
6,599,483 |
|
|
|
|
|
|
6,214,669 |
|
|
|
|
||||
Shareholders' equity |
|
739,930 |
|
|
|
|
|
|
686,921 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
7,339,413 |
|
|
|
|
|
$ |
6,901,590 |
|
|
|
|
||||
Net interest income and net interest rate spread including noninterest-bearing deposits |
|
|
$ |
110,859 |
|
6.56 |
% |
|
|
|
$ |
97,465 |
|
6.19 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin |
|
|
|
|
6.56 |
% |
|
|
|
|
|
6.18 |
% |
||||
Tax-equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.02 |
% |
||||
Net interest margin, tax-equivalent(2) |
|
|
|
|
6.57 |
% |
|
|
|
|
|
6.20 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total cost of deposits (a+b) |
|
6,260,990 |
|
|
1,689 |
|
0.11 |
% |
|
|
5,895,242 |
|
|
164 |
|
0.01 |
% |
(1) |
Tax rate used to arrive at the TEY for the three months ended |
(2) |
Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes. |
Selected Financial Information |
|||||||||||||||||||
As of and For the Three Months Ended |
2 024 |
|
2 024 |
|
2 023 |
|
2 023 |
|
2 023 |
||||||||||
Equity to total assets |
|
10.16 |
% |
|
|
9.94 |
% |
|
|
9.20 |
% |
|
|
8.63 |
% |
|
|
9.09 |
% |
Book value per common share outstanding |
$ |
30.51 |
|
|
$ |
29.14 |
|
|
$ |
28.06 |
|
|
$ |
24.85 |
|
|
$ |
25.54 |
|
Tangible book value per common share outstanding |
$ |
17.47 |
|
|
$ |
16.21 |
|
|
$ |
15.39 |
|
|
$ |
12.24 |
|
|
$ |
13.05 |
|
Common shares outstanding |
|
25,085,230 |
|
|
|
25,377,986 |
|
|
|
25,988,230 |
|
|
|
26,183,583 |
|
|
|
26,539,272 |
|
Nonperforming assets to total assets |
|
0.61 |
% |
|
|
0.50 |
% |
|
|
0.53 |
% |
|
|
0.77 |
% |
|
|
0.55 |
% |
Nonperforming loans and leases to total loans and leases |
|
0.96 |
% |
|
|
0.78 |
% |
|
|
0.88 |
% |
|
|
1.26 |
% |
|
|
0.93 |
% |
Net interest margin |
|
6.56 |
% |
|
|
6.23 |
% |
|
|
6.23 |
% |
|
|
6.19 |
% |
|
|
6.18 |
% |
Net interest margin, tax-equivalent |
|
6.57 |
% |
|
|
6.24 |
% |
|
|
6.24 |
% |
|
|
6.21 |
% |
|
|
6.20 |
% |
Return on average assets |
|
2.28 |
% |
|
|
3.17 |
% |
|
|
1.46 |
% |
|
|
1.97 |
% |
|
|
2.61 |
% |
Return on average equity |
|
22.62 |
% |
|
|
35.72 |
% |
|
|
16.87 |
% |
|
|
21.12 |
% |
|
|
26.26 |
% |
Full-time equivalent employees |
|
1,232 |
|
|
|
1,204 |
|
|
|
1,218 |
|
|
|
1,193 |
|
|
|
1,186 |
|
Net Interest Margin and Cost of Deposits |
At and For the Three Months Ended |
||||||||||
(Dollars in thousands) |
2024 |
|
2024 |
|
2023 |
||||||
Average interest earning assets |
$ |
6,801,888 |
|
$ |
7,635,842 |
|
$ |
6,326,750 |
|
||
Net interest income |
$ |
110,859 |
|
$ |
118,301 |
|
$ |
97,465 |
|
||
Net interest margin |
|
6.56 |
% |
|
6.23 |
% |
|
6.18 |
% |
||
Quarterly average total deposits |
$ |
6,260,990 |
|
$ |
7,168,673 |
|
$ |
5,895,242 |
|
||
Deposit interest expense |
$ |
1,689 |
|
$ |
6,685 |
|
$ |
164 |
|
||
Cost of deposits |
|
0.11 |
% |
|
0.38 |
% |
|
0.01 |
% |
||
|
|
|
|
||||||||
Adjusted Net Interest Margin and Adjusted Cost of Deposits |
|
|
|
||||||||
Average interest earning assets |
$ |
6,801,888 |
|
$ |
7,635,842 |
|
$ |
6,326,750 |
|
||
Net interest income |
|
110,859 |
|
|
118,301 |
|
|
97,465 |
|
||
Less: Contractual, rate-related processing expense |
|
27,595 |
|
|
30,094 |
|
|
20,528 |
|
||
Adjusted net interest income |
$ |
83,264 |
|
$ |
88,207 |
|
$ |
76,937 |
|
||
Adjusted net interest margin |
|
4.92 |
% |
|
4.65 |
% |
|
4.88 |
% |
||
Average total deposits |
$ |
6,260,990 |
|
$ |
7,168,673 |
|
$ |
5,895,242 |
|
||
Deposit interest expense |
|
1,689 |
|
|
6,685 |
|
|
164 |
|
||
Add: Contractual, rate-related processing expense |
|
27,595 |
|
|
30,094 |
|
|
20,528 |
|
||
Adjusted deposit expense |
$ |
29,284 |
|
$ |
36,779 |
|
$ |
20,692 |
|
||
Adjusted cost of deposits |
|
1.88 |
% |
|
2.06 |
% |
|
1.41 |
% |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724373717/en/
Investor Relations
SVP, Chief of Staff & Investor Relations
877-497-7497
investorrelations@pathward.com
Media Relations
mediarelations@pathward.com
Source: