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Jun 30, 2023
Meta Q3 2023 Earnings Report
Pathward Financial, Inc. reported solid results driven by growth in net interest income and noninterest income.
Key Takeaways
Pathward Financial, Inc. reported a strong third quarter with net income of $45.1 million, or $1.68 per share, driven by growth in net interest income and noninterest income. The company's net interest margin increased to 6.18%. Based on this performance, Pathward is increasing its fiscal year 2023 GAAP earnings per diluted share guidance to $5.60 to $6.00 and introducing fiscal year 2024 GAAP earnings per diluted share guidance of $6.10 to $6.60.
Total revenue for the third quarter was $165.2 million, an increase of 31% compared to the same quarter in fiscal 2022.
Net interest margin increased 142 basis points to 6.18% for the third quarter.
Total gross loans and leases at June 30, 2023 increased to $4.07 billion, compared to June 30, 2022.
The Company is raising fiscal year 2023 GAAP earnings per diluted share guidance to a range of $5.60 to $6.00 and introducing fiscal year 2024 GAAP earnings per diluted share guidance of $6.10 to $6.60.
Meta
Meta
Forward Guidance
The Company is raising its fiscal year 2023 GAAP earnings per diluted share guidance and expects it to be in the range of $5.60 to $6.00. The Company expects its effective tax rate to range between 10% and 14% for fiscal year 2023. The Company is also introducing fiscal year 2024 GAAP earnings per diluted share guidance in the range of $6.10 to $6.60. As part of this guidance, the Company expects that its annual effective tax rate in fiscal year 2024 will range between 16% and 20%.
Positive Outlook
- Raising fiscal year 2023 GAAP earnings per diluted share guidance to $5.60 - $6.00.
- Expecting fiscal year 2023 adjusted earnings per share to be in the range of $5.45 to $5.85.
- Introducing fiscal year 2024 GAAP earnings per diluted share guidance in the range of $6.10 to $6.60.
- Expecting annual effective tax rate in fiscal year 2024 to range between 16% and 20%.
- Company and Bank remained above the federal regulatory minimum capital requirements at June 30, 2023.
Challenges Ahead
- Results may be materially affected by changes in economic conditions and customer demand.
- Results may be materially affected by changes in interest rates.
- Results may be materially affected by adverse developments in the financial services industry generally.
- Results may be materially affected by inflation.
- Results may be materially affected by competition.