Net Interest Margin: 7.43% for the quarter, up from 7.26% last year.

Adjusted Net Interest Margin: 5.98%, compared to 5.76% in the prior year.

Non-Interest Income Growth: Increased by 11% from the prior year.

Secondary Market Revenue Target: $5 million to $7 million per quarter.

Custodial Deposits: $431 million as of June 30, up from $353 million a year ago.

Yield on New Commercial Finance Loans: 9.55% during the quarter.

Allowance for Credit Loss: 160 basis points, with an annualized net charge-off rate of 52 basis points.

Liquidity: Almost $2.7 billion available.

Share Repurchases: Approximately 604,000 shares repurchased at an average price of $74.49 during the quarter.

Preliminary EPS Range for Fiscal 2025: $7.50 to $7.80.

Preliminary EPS Range for Fiscal 2026: $8.25 to $8.75.

Release Date: July 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Pathward Financial Inc (NASDAQ:CASH) successfully redeployed nearly a billion dollars in capital from loan and security sales in a shorter timeframe than expected.

The company reported strong originations within commercial finance at solid yields, demonstrating effective balance sheet optimization.

Pathward Financial Inc (NASDAQ:CASH) has seen triple-digit revenue growth in its acquiring product year-to-date, highlighting successful investment in technology.

The company was named one of the best companies to work for by US News and World Report for 2025 to 2026, reflecting a strong corporate culture.

Pathward Financial Inc (NASDAQ:CASH) has a robust partner pipeline, contracting 11 new opportunities to expand products with existing or new partners this year.

Negative Points

The company is undergoing a restatement process, which has been a distraction for management and is taking longer than expected to complete.

Expenses were elevated in the quarter due to continued investments in technology and compliance, impacting overall profitability.

There was a slight degradation in credit quality, with an increase in non-performing loans driven by three specific loans.

The accounting change is expected to have a negative impact on net income for fiscal years 2022 and 2023.

Legal and consulting fees are expected to remain elevated in the fourth quarter, potentially affecting future financial performance.

Q & A Highlights

Q: Can you discuss the impact of the accounting change and when we can expect the new filings? A: Gregory Sigrist, CFO, explained that the accounting methodology has been largely addressed, but the process of working through 13 quarters and redrafting documents is ongoing. They are in the middle to later stages of completion. Preliminary numbers have been released, and the IR deck includes eight quarters of new balance sheet and income statement data.