Business
Pathward Financial, Inc. Announces Results for 2023 Fiscal First Quarter
- Net Income of $27.8 million, or $0.98 Per Diluted Share - - Raises Fiscal 2023 GAAP EPS Guidance Range to $5.55-$5.95 - SIOUX FALLS, S.D.--(BUSINESS
About this update from Pathward Financial, Inc.
[{"type":"text","content":"\n- Net Income of $27.8 million, or $0.98 Per Diluted Share -\n\n- Raises Fiscal 2023 GAAP EPS Guidance Range to $5.55-$5.95 -\n\n SIOUX FALLS, S.D.--(BUSINESS WIRE)--\nPathward Financial, Inc.™ (“Pathward Financial” or the “Company”) (Nasdaq: CASH) reported net income of $27.8 million, or $0.98 per share, for the three months ended December 31, 2022, compared to net income of $61.3 million, or $2.00 per share, for the three months ended December 31, 2021.\n\nDuring the quarter, when adjusting for the gain on sale of names and trademarks, expenses related to rebranding efforts and separation expense, the Company recognized adjusted net income of $23.2 million, or $0.81 per share. For the same period of the prior year, the Company recognized adjusted net income of $24.0 million, or $0.78 per share when excluding the impact of the gain on sale of trademarks and rebranding and separation expenses. See non-GAAP reconciliation table below.\n\nCEO Brett Pharr said, “Pathward Financial performed well during the first fiscal quarter of 2023. Commercial Finance loans grew 7 percent compared to the prior year period, and credit quality across the portfolio remains strong. As we head into a potential recessionary environment, we are confident in our active collateral management and the quality of our loan portfolio. At the same time, our broad range of partners enables us to excel in the Banking as a Service industry, even during economic downtimes. Primarily as a result of the rising interest rate environment, we are pleased to raise our fiscal year 2023 GAAP EPS range, and our unique business model positions us well for the remainder of the year.”\n\nBusiness Highlights\n\n\nDuring the first quarter of fiscal year 2023, the Company recognized the remaining $10.0 million as part of the agreement with Beige Key, LLC to cease all use of the Meta name and trademarks. The $10.0 million was recognized as noninterest income as a gain on sale of names and trademarks. As part of the corporate rebrand, the Company recognized $3.7 million of pre-tax expenses related to rebranding efforts during the first quarter of fiscal 2023. Since the first quarter of fiscal year 2022 through the first quarter of fiscal year 2023, the Company has recognized $16.9 million in expenses related to rebranding efforts. The Company does not anticipate any further mater...