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SIOUX FALLS, S.D. - On Tuesday, Pathward Financial, Inc. (NASDAQ: CASH (TSX:CASH)) reported fiscal first quarter earnings that topped analyst expectations, driven by strong loan growth and higher net interest income.
The financial services company posted net income of $31.4 million, or $1.29 per share, for the quarter ended December 31, 2024. That compares to net income of $27.7 million, or $1.06 per share, in the same quarter last year. Analysts were expecting earnings of $1.24 per share.
Revenue rose 7% YoY to $173.5 million, exceeding the consensus estimate of $171.35 million. The increase was attributed to growth in both net interest income and noninterest income.
Net interest income increased 6% YoY to $116.1 million, driven by higher yields and balances in the loan and lease portfolio. Total (EPA:TTEF) gross loans and leases grew 22% YoY to $4.56 billion when excluding the sale of the insurance premium finance business.
"Fiscal 2025 started out well as we made good progress against the strategy we laid out last year," said CEO Brett Pharr. He noted the company completed the sale of its insurance premium finance business and extended two contracts with large partners.
Pathward's net interest margin expanded to 6.84% from 6.23% a year ago, reflecting an improved earning asset mix. The company maintained a strong capital position, with a common equity tier 1 ratio of 12.53%.
Looking ahead, Pathward said it started the tax season with 12% more enrolled tax offices compared to last year, positioning it for growth in that segment.
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