Pathward strengthens leadership with Anjana Berde appointment as EVP, reports strong first quarter earnings

Pathward Financial, Inc. (Nasdaq: CASH), a U.S.-based financial empowerment company focused on driving financial inclusion strategy, has announced the appointment of Anjana Berde as Executive Vice President and Chief People and Culture Officer. This executive leadership appointment comes at a pivotal time for the company, coinciding with the release of its robust fiscal first quarter 2025 earnings, showcasing strong revenue growth and strategic business developments.

Berde’s addition to the leadership team highlights Pathward’s commitment to enhancing its organisational culture while pursuing its core mission of expanding financial access. The company’s impressive financial performance reflects strategic decisions, including divestitures and portfolio optimisation, designed to bolster long-term growth.

Who is Anjana Berde, and what will her role mean for Pathward’s culture?

Anjana Berde brings over 30 years of human resources leadership across banking, technology, and non-profit sectors. In her new role at Pathward, she will report directly to Chief Executive Officer Brett Pharr, overseeing the People and Culture department. This includes driving strategies around recruitment, talent development, employee engagement, benefits, and data-driven HR analytics.

Berde’s appointment is more than just a routine leadership change. It reflects Pathward’s evolving focus on nurturing talent and fostering a culture aligned with its financial inclusion strategy. As the company grows, ensuring that its workforce remains engaged, diverse, and purpose-driven becomes crucial. Berde’s expertise in shaping people-centric cultures will be vital in meeting these goals.

Before joining Pathward, Berde served as Chief People Officer at Accion Opportunity Fund, a national non-profit lender supporting underserved small businesses. She also held key leadership roles at MUFG Union Bank, N.A., where she led enterprise-wide talent development strategies. Her early career includes HR roles at Digital Equipment Corporation and Intel Corporation, providing her with a broad industry perspective that will be invaluable at Pathward.

CEO Brett Pharr highlighted Berde’s significance to the company’s future, stating, “Anjana’s deep expertise in human resources aligns perfectly with our mission to power financial inclusion. She will be instrumental in evolving our organisational culture to meet future talent needs and support our strategic objectives.”

Berde holds a Bachelor of Business Administration from the University of Massachusetts at Amherst and contributes to non-profit organisations through board leadership, providing strategic guidance on people-related initiatives.

How did Pathward perform in the first quarter of fiscal 2025?

Pathward’s fiscal first quarter of 2025 showcased strong financial performance, reinforcing the company’s strategic direction. The company reported a net income of $31.4 million, or $1.29 per share, compared to $27.7 million, or $1.06 per share, in the same period last year. This growth reflects both operational efficiency and successful strategic initiatives.

Total revenue for the quarter reached $173.5 million, marking a 7% increase year-over-year. This growth was driven by an uptick in both net interest income and noninterest income. The company’s net interest margin (NIM) improved to 6.84% from 6.23% in the previous year, underscoring enhanced profitability through better asset management. When accounting for contractual, rate-related processing expenses, the NIM stood at 5.41%, up from 4.76% in the first quarter of fiscal 2024.

Pharr attributed the strong results to the company’s strategic focus, stating, “Fiscal 2025 has started well as we continue to execute against our growth strategy. The divestiture of our insurance premium finance business, combined with the reallocation of those funds into higher-yielding assets, has optimised our balance sheet and positioned us for sustained growth.”

What strategic moves contributed to Pathward’s growth?

A key factor in Pathward’s growth was the strategic sale of its insurance premium finance business, completed on October 31, 2024. This transaction generated $603.3 million, along with a $31.2 million premium, resulting in a $16.4 million pre-tax gain. However, this gain was largely offset by a $15.7 million pre-tax loss from the sale of $160.6 million in debt securities, a move designed to rebalance the company’s portfolio.

Despite the offsetting gains and losses, these strategic decisions reflect Pathward’s broader objective of enhancing its earning asset mix. The company’s gross loans and leases increased by 22% year-over-year, excluding the insurance premium finance loans, highlighting growth across core lending portfolios.

Noninterest income rose 9% to $57.4 million, driven by gains from loan sales, tax service product fees, and rental income. Meanwhile, noninterest expenses increased modestly by 4% to $123.6 million, primarily due to higher compensation, legal, and consulting costs—investments that align with the company’s growth trajectory and the onboarding of new leadership like Berde.

What does Pathward’s financial inclusion strategy mean for future growth?

Pathward’s financial inclusion strategy is at the heart of its operations, aiming to expand financial access and opportunities through its Partner Solutions and Commercial Finance business lines. The company’s focus on underserved communities aligns with broader industry trends where financial institutions are increasingly prioritising inclusive growth.

Berde’s executive leadership appointment supports this strategy by fostering a workplace culture that mirrors the company’s external mission. Her role will be critical in ensuring that Pathward’s internal talent strategies are aligned with its goal of driving financial empowerment nationwide.

Looking ahead, Pathward plans to continue optimising its balance sheet, expanding its lending portfolios, and leveraging its strong leadership team to deliver sustainable growth. The combination of strategic financial management and a people-focused leadership approach positions the company well for the future.