Business
Pathward Financial, Inc.™ Announces Results for 2022 Fiscal Third Quarter
- Fiscal 2022 Third Quarter Net Income of $22.4 million, or $0.76 Per Diluted Share - - Reinstates Guidance, With Fiscal 2023 GAAP EPS Range of $5.25 to
About this update from Pathward Financial, Inc.
[{"type":"text","content":"\n- Fiscal 2022 Third Quarter Net Income of $22.4 million, or $0.76 Per Diluted Share -\n\n- Reinstates Guidance, With Fiscal 2023 GAAP EPS Range of $5.25 to $5.75 -\n\n SIOUX FALLS, S.D.--(BUSINESS WIRE)--\nPathward Financial, Inc.TM, (“Pathward Financial” or the “Company”) (Nasdaq: CASH), formally known as Meta Financial Group, Inc., reported net income of $22.4 million, or $0.76 per share, for the three months ended June 30, 2022, compared to net income of $38.7 million, or $1.21 per share, for the three months ended June 30, 2021. During the quarter the Company recognized $3.4 million of pre-tax expenses related to rebranding efforts and $3.1 million of pre-tax separation related expenses. Excluding the impact of the rebranding and separation expenses, net of tax, the Company's adjusted net income for the quarter totaled $27.3 million, or $0.93 per share. See non-GAAP reconciliation table below.\n\nCEO Brett Pharr said, “We continue to benefit from low-cost deposits provided from our banking-as-a-service business to fund our various asset class opportunities in Commercial Finance. This model will generate higher returns once the market lending rates begin to reflect the higher rate environment. Our third-quarter results were impacted by a slowdown in the renewable energy tax credit lending market and one-time expenses related to rebranding and efficiency initiatives. While certain revenues were down due to the prior-year benefiting from stimulus-related card fee income and the delayed start of last year’s tax season, we are pleased with the continued growth of our Commercial Finance portfolio and its credit quality”\n\n“As we potentially enter a recessionary period, we believe Pathward Financial is positioned to perform well, as we would benefit from higher yields on our new business and existing variable loan portfolios while typically experiencing growth in our working capital lines,” Pharr added.\n\nBusiness Development Highlights for the 2022 Fiscal Third Quarter\n\n\nOn July 13, 2022, the Company announced it changed its name to Pathward Financial, Inc.™, and its bank subsidiary, MetaBank®, N.A., changed its name to Pathward™, N.A. (\"Pathward\" or the \"Bank\"). Certain changes were made immediately, with a full transition to Pathward expected by the end of this calendar year, including the launch of a new brand identi...