Pathward Financial, Inc. (NASDAQ:CASH) Q3 2023 Earnings Conference Call July 26, 2023 5:00 PM ET

Company Participants

Darby Schoenfeld - Senior Vice President, Investor Relations

Brett Pharr - Chief Executive Officer

Glen Herrick - Executive Vice President and Chief Financial Officer

Conference Call Participants

Frank Schiraldi - Piper Sandler

Michael Perito - KBW

David Feaster - Raymond James

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Pathward Financial Third Quarter Fiscal Year 2023 Investor Conference Call. During the presentation, all participants will be in a listen-only mode. Following the prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference call is being recorded.

I would now like to turn the conference call over to Darby Schoenfeld, Senior Vice President, Head of Investor Relations. Please go ahead.

Darby Schoenfeld

Thank you, operator and welcome. With me today are Pathward Financial’s CEO, Brett Pharr and CFO, Glen Herrick who will discuss our operating and financial results for the third fiscal quarter of 2023, after which we will take your questions. Additional information, including the earnings release, the investor presentation that accompanies our prepared remarks and supplemental file may be found on our website at pathwardfinancial.com.

As a reminder, our comments may include forward-looking statements, including with respect to anticipated results for future periods. Those statements are subject to risks and uncertainties that could cause actual and anticipated results to differ. The company undertakes no obligation to update any forward-looking statement.

Please refer to the cautionary language in the earnings release, investor presentation, and the company's filings with the Securities and Exchange Commission, including our most recent filings for additional information covering factors that could cause actual and anticipated results to differ materially from the forward-looking statements.

Additionally, today, we will be discussing certain non-GAAP financial measures on this conference call. References to non-GAAP measures are only provided to assist you in understanding the company's results and performance trends. Reconciliations for such non-GAAP measures are included in the appendix of the investor presentation.

Now, let me turn the call over to Brett Pharr, our CEO.

Brett Pharr

Thanks, Darby, and thanks, everyone, for joining us. As we start today, not news to anyone, the banking industry as a whole has come through some turbulent times. Last quarter, we talked about how our business model differentiated us, especially in these times. This quarter, I really want to share how those differentials translate into our strengths. Just a few examples. The industry has suffered from unstable deposits. We have not. Compression on net interest margin from rising interest rates throughout the industry. But even counting the increase in card expenses, we have a growing net interest margin, not a lower one. There are general loan-related concerns, both demand and credit. But we have a collateral managed portfolio with diverse asset classes built for whatever may come. And importantly, we typically do not do CRE purpose lending.