CASH · Pathward Financial, Inc. Q3 FY2026 earnings call record财报电话会记录

“Starting with revenue, the sale of the consumer finance portfolio back in October impacted net interest income as expected, given the elimination of the grossed-up accounting for that portfolio.”

“After a delay in secondary market revenues over the last few quarters, we are pleased to say that those sale volumes are catching up from earlier in the year.”

“While net interest margin declined to 6.59% in the quarter, the adjusted net interest margin was stable at 5.27%.”

“As of June 30th, our liquidity was $2.7 billion, and during the quarter, we were able to repurchase approximately 304,000 shares at an average price of $92.18.”

“We are updating our fiscal 2026 guidance to an EPS range of $7.80-$8.20, which includes the following assumptions: No additional rank changes during the year, an effective tax rate of 16%-18%, and expected share repurchases.”

“We are also introducing a fiscal year 2027 guidance range of $9.50-$10, which includes the following assumptions: No rate changes during the year, an effective tax rate of 18%-22%, expected secondary market revenues between $5 million-$7 million per quarter, and expected share repurchases of around 70%-80% of net income.”

“We've also obviously had some good success with Credit Solutions, the volumes there.”

“If those volumes continue to trend higher, as we hope they do, but hope's not a strategy, I think that can push us a little higher on the guide as well, which is helpful.”

“All right, within this outlook, what drove the decision to lower your buyback ratio to that 70%-80% of net income?”

“Of that's probably elevated by $28 million-$30 million related to the things we've talked about here, and that's about $1 per share.”

“Again, I think that goes back to the success we've had with the acquiring volumes increasing some of the other things too.”

“We've consciously, over the last three years, slowed down the buybacks to put away additional capital and in the process pushed our Tier 1 leverage ratio upwards of 10% or above.”