Pathward Financial Inc (CASH)

Belfry and Clair Partner to Launch On-Demand Pay, Giving Security Officers Instant1 Access to Earned WagesMay 18, 2026 8:30 AM
PR Newswire (US) New financial wellness benefit, powered by Clair, helps security companies attract and retain talent in one of the industry's toughest hiring climatesNEW YORK, May 18, 2026 /PRNewswire/ -- Belfry, the operating platform built for security guard services companies, today announced the launch of On-Demand Pay, an earned wage access (EWA) benefit that allows security officers to access a portion of their earned wages before payday. The service is powered by Clair, a leading financial technology company, with all advances originated by Clair's banking partner, Pathward®, N.A. The private security industry employs more than one million officers across the United States, the majority of whom are hourly workers operating in a financially demanding environment. When unexpected expenses arise, many officers face immediate concerns due to a lack of funds.For an industry already challenged by high turnover and chronic understaffing, financial stress can make it even harder to retain and support a stable workforce. We understand these realities, and we're proud to provide solutions that help security companies support their officers' financial wellness and stability."Security companies today are competing for the same officers as every other hourly employer, and wages alone aren't enough. On-Demand Pay gives our customers a meaningful benefit that puts money in officers' hands when they need it. Our hope is that this allows Belfry customers to become more competitive in hiring while supporting the financial wellness of their workforce." — Jordan Wallach, Co-Founder & CEO of BelfryOn-Demand Pay is now included at no additional cost to employers as part of every Belfry subscription. Security operators do not need to take any action to make the benefit available to their employees. The feature is embedded directly in the Belfry app, requiring zero changes to payroll processes or administrative workflows. Employers are never responsible for funding advances or collecting repayments.About Belfry
Belfry is the all-in-one operating platform purpose-built for security guard services companies. From scheduling and dispatch to billing, compliance, and workforce management, Belfry helps security operators run leaner, grow faster, and better serve their clients. Belfry is trusted by security companies across the United States.About Clair
Clair is a mission-driven fintech company offering embedded earned wage access products to break the traditional two week pay cycle by giving people access to their money as soon as they've earned it, at no cost to employers. Supported by its partnership with national bank Pathward, N.A., Clair is available at over 148,000 work locations across 29 different industries, improving financial health and increasing employee retention. Clair is based in New York and has raised $93.7 million in equity funding from investors including Thrive Capital, Upfront Ventures, Kairos HQ, and Founder Collective. For more information, visit getclair.com.About Pathward®
Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is focused on financial access and strives to increase financial availability, choice and opportunity across our Partner Solutions and Commercial Finance business lines. The strategic business lines provide support to individuals and businesses. Learn more at Pathward.com.All Advances are originated by Pathward®, N.A. All Advances are subject to eligibility criteria and application review. Terms and conditions apply.1Instant Transfers typically occur in seconds but may take up to 30 minutes. A $4.99 instant transfer fee applies and is deducted from the Advance at disbursement. View original content to download multimedia:https://www.prnewswire.com/news-releases/belfry-and-clair-partner-to-launch-on-demand-pay-giving-security-officers-instant1-access-to-earned-wages-302772927.htmlSOURCE Belfry Original: Belfry and Clair Partner to Launch On-Demand Pay, Giving Security Officers Instant1 Access to Earned Wages

Pathward’s Matt Dekutoski Among ABF Journal’s 2026 IconsMay 18, 2026 8:07 AM
Business Wire Managing Director of Business Development recognized for decades of leadership and strategic impact. Pathward®, N.A. (“Pathward”), a national bank focused on financial access, today announced that Matt Dekutoski, Managing Director of Business Development at Pathward, has been honored as an Icon by ABF Journal, in its 2026 Leaders and Legends issue. The award recognizes individuals with enduring influence who are shaping the future of the specialty finance industry through decades of leadership, innovation and commitment to excellence. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260518869051/en/Matt Dekutoski, Managing Director of Business Development at Pathward, has been honored as an Icon by ABF Journal in its 2026 Leaders and Legends issue. “For nearly two decades at Pathward, Matt has tirelessly worked to build a strong network of financial professionals that look to him as a trusted commercial finance resource,” said Christopher Soupal, Pathward’s Chief Growth Officer. “Matt has a rare ability to anticipate opportunities and risks early and has repeatedly demonstrated exceptional skill in navigating complexity, solving challenges and executing strategies that improve customer outcomes and drive enterprise performance. We’re incredibly proud of Matt and are pleased to see his achievements recognized nationally by the ABF Journal.” Since joining Pathward in 2007, Dekutoski has earned a reputation as a trusted expert in specialty finance. He is known for prioritizing collaboration and transparent communication, ensuring colleagues and customers alike are equipped to navigate complex financial landscapes. His disciplined approach and leadership style has earned the trust and respect of customers, senior leaders and peers across the industry. "I am honored and humbled to be recognized as a 2026 Icon by ABF Journal," said Dekutoski. "Throughout my career, I have focused on deepening my expertise in lending and banking, supporting the many professionals who I work closely with in the industry and my team, by delivering tailored solutions to our borrowers. I am proud to work alongside my talented colleagues in the industry and at Pathward." Outside of his role at Pathward, Dekutoski has dedicated his time to industry associations, such as the Turnaround Management Association (“TMA”) serving as board member to the Detroit Chapter, as well as the Midwest TMA MidAmerica Regional Conference and TMA Great Lakes Conference steering committees. He is also a long-standing member of the Association for Corporate Growth and Secured Finance Network. He previously served as board member on both the Michigan Scholastic Boys Lacrosse Association and Michigan Officials Lacrosse Association, serving both as a former high school boys lacrosse coach and NCAA men’s lacrosse official for over two decades. Read Dekutoski’s profile published in the May 2026 issue of ABF Journal at ABFJournal.com. About Pathward® Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is focused on financial access and strives to increase financial availability, choice and opportunity across our Partner Solutions and Commercial Finance business lines. The strategic business lines provide support to individuals and businesses. Learn more at Pathward.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260518869051/en/ Media contact:
Courtney Heidelberg
605.291.7044
mediarelations@pathward.com Original: Pathward’s Matt Dekutoski Among ABF Journal’s 2026 Icons

KBW Names Pathward Financial to its 2026 Bank Honor RollMay 13, 2026 8:07 AM
Business Wire Pathward is one of only 17 banks to make the elite list. Financial services specialists, Keefe, Bruyette & Woods, Inc. (“KBW”), announced its 2026 Bank Honor Roll Award winners, and Pathward Financial, Inc. (“Pathward Financial” or “the Company”) (Nasdaq: CASH), the financial holding company for Pathward®, N.A. (“Pathward”), is among the 17 U.S. banking institutions named to KBW’s list. Only 6% of eligible banks make the coveted list published annually. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260513702569/en/KBW recognized Pathward Financial, Inc. on its 2026 Bank Honor Roll. In its April 28 news release, KBW congratulated Pathward Financial as one of 10 returning members to this year’s Honor Roll. Banks must have more than $500 million in total assets to be eligible for the list and meet one or both of the following criteria: Consistent earnings growth over each of the past 10 years; and/or Top 5% earnings per share compound annual growth rate over the past 10 years KBW noted in its news release that Pathward Financial distinguished itself as one of only two companies to satisfy both criteria. KBW’s announcement came on the heels of Pathward Financial’s Fiscal Year 2026 Second Quarter earnings announcement, where the Company reported return on average assets of 2.75% and return on average tangible equity of 40.69% for the six months ended March 31, 2026. Solid results were achieved across all of the core businesses. “We are honored to be recognized on KBW’s prestigious Bank Honor Roll for the third year in a row,” said Executive Vice President and Chief Financial Officer at Pathward and Pathward Financial Greg Sigrist. "We had remarkable performance in fiscal year 2025, and we’ve continued to build upon that solid foundation through the first half of fiscal year 2026 while executing on our long-term strategy of being the trusted platform that enables our partners to thrive.” Read KBW’s news release on GlobeNewswire.com. About Pathward Financial, Inc. Pathward Financial, Inc. (Nasdaq: CASH) is a U.S.-based financial holding company driven by its purpose to power financial inclusion. Through our subsidiary, Pathward®, N.A., we strive to increase financial availability, choice and opportunity across our Partner Solutions and Commercial Finance business lines. These strategic business lines provide support to individuals and businesses. Learn more at PathwardFinancial.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260513702569/en/ Media Contact:
Courtney Heidelberg
605-291-7044
mediarelations@pathward.com Investor Relations Contact
Darby Schoenfeld, CPA
SVP, Chief of Staff & Investor Relations
877-497-7497
investorrelations@pathward.com Original: KBW Names Pathward Financial to its 2026 Bank Honor Roll

Pathward Financial, Inc. Announces Results for 2026 Fiscal Second QuarterApril 22, 2026 4:05 PM
Business Wire
Pathward Financial, Inc. (“Pathward Financial” or the “Company”) (Nasdaq: CASH), a U.S.-based financial holding company driven by its purpose to power financial inclusion for all, today reported its results for the 2026 fiscal second quarter. The Company reported net income of $72.9 million, or $3.35 per share, for the three months ended March 31, 2026, compared to net income of $75.0 million, or $3.14 per share, for the three months ended March 31, 2025.


CEO Brett Pharr said, "At the midpoint of our fiscal year, we continue to make good progress on our goals and execute on our long-term strategy — being the trusted platform that enables our partners to thrive. Our tax season is going very well with tax-related products leading the way in revenue growth for the quarter. Additionally, new and existing partnerships announced last year are developing nicely and the Partner Solutions pipeline remains robust. Net interest income from our commercial finance loans also increased significantly as well. All in all, our core businesses remain healthy and we are pleased with the results achieved in the quarter."


Company Highlights



The Company's subsidiary Pathward®, N.A. announced it became Certified™ by Great Place To Work® for the fourth year in a row. This year, 88% of employees surveyed said Pathward is a Great Place To Work® – 31 points higher than the typical U.S. company. Great Place to Work® describes itself as the global authority on workplace culture, employee experience, and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation.



Financial Highlights for the 2026 Fiscal Second Quarter


All highlights are compared to the same fiscal quarter in the prior year period.



Total revenue was $276.3 million, which was driven by a 9% increase in noninterest income. This was primarily driven by growth in card and deposit fees of 22%, refund advance and other tax fee income of 18%, and refund transfer product fees of 7%. Noninterest income represented 55% of total revenue.



New loan originations, excluding tax services, increased from $902 million to $1.31 billion, primarily driven by the new contract announced during fiscal 2025 within consumer finance.



Annualized return on average assets was 3.56% and return on average tangible equity was 54.41%.



The Company repurchased 855,201 shares of common stock at an average share price of $84.15. As of March 31, 2026, there were 3,430,811 shares available for repurchase under the current common stock share repurchase program.



Tax Season


All reported numbers are for the six months ended March 31, 2026 and are compared to the same fiscal period in the prior year.


Total tax services product revenue was $95.7 million, an increase of 13% compared to the prior year. This was driven by an increase in the number of refund advances, as well as higher origination volumes and an increase in refund transfers. Total tax services product fee income increased by $10.6 million and net interest income on tax services loans increased $0.2 million. Total tax services product expense increased $0.8 million when compared to the prior year.


Provision for credit losses for the tax services portfolio decreased $4.4 million when compared to the prior year as a result of the continued work on enhancing underwriting models and data analytics capabilities.


Total tax services product income, net of losses and direct product expenses, increased 30% to $62.0 million from $47.6 million. This increase is the result of significant work to grow this business, increase market share and evolve the underwriting model.


For the 2026 tax season through March 31, 2026, the Company originated $1.87 billion in refund advance loans compared to $1.66 billion during the 2025 tax season.


Net Interest Income


Net interest income for the second quarter of fiscal 2026 was $125.1 million, a decrease of 8% compared to the same quarter in fiscal 2025, which was primarily driven by decreases in interest income of $12.8 million on the consumer finance portfolio and $4.2 million of cash and fed funds sold. Interest income on the consumer finance portfolio was impacted by the sale of a portfolio in October 2025 that was previously accounted for using a gross accounting methodology, and therefore, recorded at higher yields with offsetting entries not included in net interest income. Partially offsetting that decrease, interest income from commercial finance loans and leases increased $8.4 million over that same period.


The Company’s average interest-earning assets for the second quarter of fiscal 2026 decreased by $107.4 million to $7.65 billion compared to the same quarter in fiscal 2025 due to decreases in the average outstanding balances in cash and fed funds sold and total investments securities. The decrease was partially offset by an increase in the average outstanding balance of total loans and leases. These results are expected as the Company continues to shift the balance sheet toward higher returning assets. The second quarter average outstanding balance of loans and leases increased $437.9 million compared to the same quarter of the prior fiscal year due to increases in the commercial finance and tax services portfolios, partially offset by decreases in the consumer finance and warehouse finance portfolios.


Fiscal 2026 second quarter net interest margin ("NIM") decreased to 6.63% from 7.12% in the second fiscal quarter of 2025 primarily due to the aforementioned sale of the consumer finance portfolio in October 2025. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excluding the gross interest income on consumer finance loans, NIM would have been 5.32% in the fiscal 2026 second quarter compared to 5.09% during the fiscal 2025 second quarter. See non-GAAP reconciliation table at the end of the press release. The overall reported tax-equivalent yield (“TEY”) on average interest-earning assets decreased 48 basis point to 6.95% compared to the prior year quarter. The yield on the loan and lease portfolio was 8.43% compared to 9.54% for the comparable period last year and the TEY on the securities portfolio was 3.06% compared to 3.11% over that same period. The decreases in the TEY on average interest-earning assets and the yield on the loan and lease portfolio were also primarily driven by the aforementioned sale of the consumer finance portfolio.


The Company's cost of funds for all deposits and borrowings averaged 0.33% during the fiscal 2026 second quarter, as compared to 0.32% during the prior year quarter. The Company's overall cost of deposits was 0.25% in the fiscal second quarter of 2026, as compared to 0.23% during the prior year quarter. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet, the Company's overall cost of deposits was 1.63% in the fiscal 2026 second quarter, a decrease from 1.75% during the prior year quarter primarily reflecting a lower rate environment. See non-GAAP reconciliation table at the end of the press release.


Noninterest Income


Fiscal 2026 second quarter noninterest income increased 9% to $151.2 million, compared to $138.5 million for the same period of the prior year. The increase was driven by increases in refund advance and other tax fee income, card and deposit fees, and refund transfer product fees, partially offset by decreases in secondary market revenue and rental income. Secondary market revenue in the prior year period was elevated by the gain from a portfolio sale within working capital. That gain was partially offset by a loss on sale of securities and a loss on divestiture that were also recognized in the prior year period.


Servicing fee income on custodial deposits totaled $7.8 million during the 2026 fiscal second quarter, as compared to $3.4 million for the fiscal quarter ended December 31, 2025, and $6.5 million for the same period of the prior year. The sequential and year-over-year increases in servicing fee income on custodial deposit balances held at partner banks was due to higher quarterly average deposits balances held at partner banks.


Noninterest Expense


Noninterest expense decreased 3% to $143.5 million in the second quarter of fiscal 2026, compared to $148.2 million for the same quarter last year. The decrease was primarily attributable to reductions in card processing and other expense, partially offset by increases in compensation and benefits and building and software expense. We believe that the Company continues to manage expenses well while simultaneously investing in people, processes and systems to execute on its long-term strategy.


Card processing expense is primarily driven by rate-related agreements with Partner Solutions relationships. The amount of expense paid under those agreements is based on an agreed upon rate index that varies depending on the deposit levels, floor rates, market conditions, and other performance conditions. Generally, this rate index is based on a percentage of the effective federal funds rate ("EFFR") and reprices immediately upon a change in the EFFR. Approximately 66% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2026 second quarter. For the fiscal quarter ended March 31, 2026, contractual, rate-related processing expense was $25.4 million, as compared to $23.8 million for the fiscal quarter ended December 31, 2025, and $28.4 million for the fiscal quarter ended March 31, 2025.


Income Tax Expense


The Company recorded an income tax expense of $14.2 million, representing an effective tax rate of 16.2% for the fiscal 2026 second quarter, compared to an income tax expense of $16.2 million, representing an effective tax rate of 17.7%, for the second quarter last fiscal year. The current quarter decrease in income tax expense compared to the prior year quarter was primarily driven by research tax credits.


The Company originated $8.0 million in renewable energy leases during the fiscal 2026 second quarter, resulting in $2.0 million in total net investment tax credits. During the second quarter of fiscal 2025, the Company originated $1.9 million in renewable energy leases resulting in $0.5 million in total net investment tax credits. For the six months ended March 31, 2026, the Company originated $27.7 million in renewable energy leases, compared to $11.2 million for the comparable prior year period. Investment tax credits related to renewable energy leases are recognized ratably based on income throughout each fiscal year.




Investments, Loans and Leases








(Dollars in thousands)






March 31, 2026






 






December 31, 2025






 






September 30, 2025






 






June 30, 2025






 






March 31, 2025








Total investments






$






1,299,421






 






 






$






1,338,709






 






 






$






1,357,151






 






 






$






1,397,613






 






 






$






1,442,855






 








 






 






 






 






 






 






 






 






 






 








Loans held for sale






 






 






 






 






 






 






 






 






 








Term lending






 






—






 






 






 






5,000






 






 






 






—






 






 






 






5,736






 






 






 






—






 








Lease financing






 






566






 






 






 






619






 






 






 






690






 






 






 






93






 






 






 






—






 








SBA/USDA






 






20,811






 






 






 






31,338






 






 






 






15,654






 






 






 






9,564






 






 






 






15,188






 








Consumer finance






 






31,695






 






 






 






51,012






 






 






 






163,077






 






 






 






34,374






 






 






 






30,579






 








Total loans held for sale






 






53,072






 






 






 






87,969






 






 






 






179,421






 






 






 






49,767






 






 






 






45,767






 








 






 






 






 






 






 






 






 






 






 








Term lending






 






2,501,855






 






 






 






2,506,777






 






 






 






2,302,540






 






 






 






2,003,699






 






 






 






1,766,432






 








Asset-based lending






 






660,220






 






 






 






629,317






 






 






 






593,265






 






 






 






610,852






 






 






 






542,483






 








Factoring






 






213,269






 






 






 






213,888






 






 






 






217,501






 






 






 






241,024






 






 






 






224,520






 








Lease financing






 






126,902






 






 






 






136,505






 






 






 






149,236






 






 






 






134,214






 






 






 






134,856






 








SBA/USDA






 






536,637






 






 






 






520,461






 






 






 






511,488






 






 






 






674,902






 






 






 






701,736






 








Other commercial finance






 






73,694






 






 






 






140,229






 






 






 






149,939






 






 






 






153,321






 






 






 






154,728






 








Commercial finance






 






4,112,577






 






 






 






4,147,177






 






 






 






3,923,969






 






 






 






3,818,012






 






 






 






3,524,755






 








Consumer finance






 






90,912






 






 






 






132,045






 






 






 






93,319






 






 






 






226,380






 






 






 






246,202






 








Tax services






 






60,191






 






 






 






62,049






 






 






 






2,532






 






 






 






37,419






 






 






 






55,973






 








Warehouse finance






 






604,642






 






 






 






641,669






 






 






 






645,186






 






 






 






664,110






 






 






 






643,124






 








Total loans and leases






 






4,868,322






 






 






 






4,982,940






 






 






 






4,665,006






 






 






 






4,745,921






 






 






 






4,470,054






 








Net deferred loan origination costs (fees)






 






(1,157






)






 






 






(85






)






 






 






(98






)






 






 






(2,597






)






 






 






(5,184






)








Total gross loans and leases






 






4,867,165






 






 






 






4,982,855






 






 






 






4,664,908






 






 






 






4,743,324






 






 






 






4,464,870






 








Allowance for credit losses






 






(98,279






)






 






 






(58,840






)






 






 






(53,319






)






 






 






(105,995






)






 






 






(102,890






)








Total loans and leases, net






$






4,768,886






 






 






$






4,924,015






 






 






$






4,611,589






 






 






$






4,637,329






 






 






$






4,361,980






 







The Company's investment security balances at March 31, 2026 totaled $1.30 billion, as compared to $1.34 billion at December 31, 2025 and $1.44 billion at March 31, 2025. The year-over-year decrease was primarily related to normal paydown activity of investment security balances and the sale of investment securities AFS during the fourth quarter of fiscal 2025.


Total gross loans and leases totaled $4.87 billion at March 31, 2026, as compared to $4.98 billion at December 31, 2025 and $4.46 billion at March 31, 2025. The drivers for the sequential quarter decrease were decreases in the consumer finance, warehouse finance, and the commercial finance portfolios. The year-over-year increase was due to growth in the commercial finance and seasonal tax services portfolios, partially offset by a decrease in the consumer finance portfolio due to the aforementioned loan sale within that portfolio in October 2025, as well as a decrease in the warehouse finance portfolio.


Commercial finance loans, which comprised 84% of the Company's loan and lease portfolio, totaled $4.11 billion at March 31, 2026, reflecting a decrease of $34.6 million, or 1%, from December 31, 2025 and an increase of $587.8 million, or 17%, from March 31, 2025. The sequential quarter decrease in the commercial finance portfolio was primarily driven by a decrease of $66.5 million in other commercial finance, partially offset by a $30.9 million increase in asset-based lending. The year-over-year increase was primarily driven by an increase of $735.4 million in term lending and an increase of $117.7 million in asset-based lending, partially offset by a decrease of $165.1 million in SBA/USDA and a decrease of $81.0 million in other commercial finance. These changes are primarily the result of the Company's efforts to optimize the balance sheet.


Asset Quality


The Company’s allowance for credit losses ("ACL") totaled $98.3 million at March 31, 2026, an increase compared to $58.8 million at December 31, 2025 and a decrease compared to $102.9 million at March 31, 2025. The sequential increase in the ACL was primarily due to an increase of $34.2 million in the allowance related to the seasonal tax services portfolio and an increase of $7.7 million in the allowance related to the commercial finance portfolio, partially offset by a $2.5 million decrease in the allowance related to the consumer finance portfolio.


The $4.6 million year-over-year decrease in the ACL was primarily driven by a decrease in the allowance related to the consumer finance portfolio of $23.1 million, partially offset by a $17.0 million increase in the allowance related to the commercial finance portfolio and a $1.5 million increase in the allowance related to the seasonal tax services portfolio.


The following table presents the Company's ACL as a percentage of its total loans and leases.




 






As of the Period Ended








(Unaudited)






March 31, 2026






December 31, 2025






September 30, 2025






June 30, 2025






March 31, 2025








Commercial finance






1.36






%






1.16






%






1.18






%






1.27






%






1.10






%








Consumer finance






7.25






%






6.85






%






6.88






%






11.69






%






12.04






%








Tax services






58.63






%






1.71






%






—






%






81.32






%






60.35






%








Warehouse finance






0.10






%






0.10






%






0.10






%






0.10






%






0.10






%








Total loans and leases






2.02






%






1.18






%






1.14






%






2.23






%






2.30






%








Total loans and leases excluding tax services






1.31






%






1.17






%






1.14






%






1.60






%






1.57






%







The Company's ACL as a percentage of total loans and leases increased to 2.02% at March 31, 2026 from 1.18% at December 31, 2025 and decreased from 2.30% at March 31, 2025. The sequential increase in the total loans and leases coverage ratio was primarily driven by the seasonality in the tax services portfolio, along with an increase in the ACL related to the commercial finance portfolio. The year-over-year decrease in the total loans and leases coverage ratio was primarily driven by the decrease in the ACL related to the decrease in the consumer finance portfolio due to the aforementioned sale of the consumer finance portfolio in October 2025. The year-over-year decrease in the total loans and leases coverage ratio was partially offset by an increase in the ACL related to the commercial finance portfolio.


Activity in the ACL for the periods presented was as follows.




(Unaudited)






Three Months Ended






 






Six Months Ended








(Dollars in thousands)






March 31, 2026






 






December 31, 2025






 






March 31, 2025






 






March 31, 2026






 






March 31, 2025








Beginning balance






$






58,840






 






 






$






53,319






 






 






$






74,337






 






 






$






53,319






 






 






$






71,765






 








Provision (reversal of) - tax services loans






 






24,476






 






 






 






(1,398






)






 






 






26,178






 






 






 






23,078






 






 






 






27,479






 








Provision (reversal of) - all other loans and leases






 






20,800






 






 






 






4,706






 






 






 






8,750






 






 






 






25,506






 






 






 






26,292






 








Charge-offs - tax services loans






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(741






)








Charge-offs - all other loans and leases






 






(16,767






)






 






 






(3,407






)






 






 






(15,001






)






 






 






(20,174






)






 






 






(31,987






)








Recoveries - tax services loans






 






9,752






 






 






 






2,459






 






 






 






6,813






 






 






 






12,211






 






 






 






7,041






 








Recoveries - all other loans and leases






 






1,178






 






 






 






3,161






 






 






 






1,813






 






 






 






4,339






 






 






 






3,041






 








Ending balance






$






98,279






 






 






$






58,840






 






 






$






102,890






 






 






$






98,279






 






 






$






102,890






 







The Company recognized a provision for credit losses of $45.6 million for the quarter ended March 31, 2026, compared to $35.3 million for the comparable period in the prior fiscal year. The year-over-year increase was primarily due to increases in the commercial finance portfolio of $19.0 million, partially offset by decreases in the consumer finance portfolio of $6.9 million and the tax services portfolio of $1.7 million. The Company recognized net charge-offs of $5.8 million for the quarter ended March 31, 2026, compared to net charge-offs of $6.4 million for the quarter ended March 31, 2025. Net charge-offs attributable to the commercial finance portfolio and consumer finance portfolio were $14.5 million and $1.1 million, respectively, while net recoveries of $9.7 million were recognized in the seasonal tax services portfolio. Net charge-offs attributable to the commercial finance portfolio and consumer finance portfolio for the same quarter of the prior year were $6.9 million and $6.3 million, respectively, while net recoveries of $6.8 million were recognized in the tax services portfolio.


The Company's past due loans and leases were as follows for the periods presented.




As of March 31, 2026






Accruing and Nonaccruing Loans and Leases






 






Nonperforming Loans and Leases








(Dollars in thousands)






30-59 Days Past Due






 






60-89 Days Past Due






 






> 89 Days Past Due






 






Total Past Due






 






Current






 






Total Loans and Leases Receivable






 






> 89 Days Past Due and Accruing






 






Nonaccrual Balance






 






Total








Loans held for sale






$






—






 






$






—






 






$






—






 






$






—






 






$






53,072






 






$






53,072






 






$






—






 






$






—






 






$






—








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Commercial finance






 






91,137






 






 






9,838






 






 






88,791






 






 






189,766






 






 






3,922,811






 






 






4,112,577






 






 






25,850






 






 






91,446






 






 






117,296








Consumer finance






 






985






 






 






492






 






 






417






 






 






1,894






 






 






89,018






 






 






90,912






 






 






417






 






 






—






 






 






417








Tax services






 






1,454






 






 






—






 






 






—






 






 






1,454






 






 






58,737






 






 






60,191






 






 






—






 






 






—






 






 






—








Warehouse finance






 






—






 






 






—






 






 






—






 






 






—






 






 






604,642






 






 






604,642






 






 






—






 






 






—






 






 






—








Total loans and leases held for investment






 






93,576






 






 






10,330






 






 






89,208






 






 






193,114






 






 






4,675,208






 






 






4,868,322






 






 






26,267






 






 






91,446






 






 






117,713








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Total loans and leases






$






93,576






 






$






10,330






 






$






89,208






 






$






193,114






 






$






4,728,280






 






$






4,921,394






 






$






26,267






 






$






91,446






 






$






117,713









As of December 31, 2025






Accruing and Nonaccruing Loans and Leases






 






Nonperforming Loans and Leases








(Dollars in thousands)






30-59 Days Past Due






 






60-89 Days Past Due






 






> 89 Days Past Due






 






Total Past Due






 






Current






 






Total Loans and Leases Receivable






 






> 89 Days Past Due and Accruing






 






Nonaccrual Balance






 






Total








Loans held for sale






$






148






 






$






150






 






$






235






 






$






533






 






$






87,436






 






$






87,969






 






$






235






 






$






—






 






$






235








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Commercial finance






 






54,278






 






 






22,871






 






 






90,103






 






 






167,252






 






 






3,979,925






 






 






4,147,177






 






 






11,447






 






 






96,781






 






 






108,228








Consumer finance






 






1,383






 






 






691






 






 






602






 






 






2,676






 






 






129,369






 






 






132,045






 






 






602






 






 






—






 






 






602








Tax services






 






—






 






 






—






 






 






—






 






 






—






 






 






62,049






 






 






62,049






 






 






—






 






 






—






 






 






—








Warehouse finance






 






—






 






 






—






 






 






—






 






 






—






 






 






641,669






 






 






641,669






 






 






—






 






 






—






 






 






—








Total loans and leases held for investment






 






55,661






 






 






23,562






 






 






90,705






 






 






169,928






 






 






4,813,012






 






 






4,982,940






 






 






12,049






 






 






96,781






 






 






108,830








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Total loans and leases






$






55,809






 






$






23,712






 






$






90,940






 






$






170,461






 






$






4,900,448






 






$






5,070,909






 






$






12,284






 






$






96,781






 






$






109,065







The Company's nonperforming assets at March 31, 2026 were $119.8 million, representing 1.68% of total assets, compared to $111.5 million, or 1.47% of total assets at December 31, 2025 and $41.6 million, or 0.59% of total assets at March 31, 2025.


The increase in the nonperforming assets as a percentage of total assets at March 31, 2026, compared to December 31, 2025, was driven by an increase in nonperforming loans in the commercial finance portfolio. When comparing the current period to the same period of the prior year, the increase was driven by an increase in nonperforming loans in the commercial finance portfolio, partially offset by a decrease in nonperforming loans in the consumer finance portfolio.


The Company's nonperforming loans and leases at March 31, 2026, were $117.7 million, representing 2.39% of total gross loans and leases, compared to $109.1 million, or 2.15% of total gross loans and leases at December 31, 2025 and $39.8 million, or 0.88% of total gross loans and leases at March 31, 2025.


Deposits, Borrowings and Other Liabilities


The average balance of total deposits and interest-bearing liabilities was $7.14 billion for the quarter ended March 31, 2026, compared to $7.30 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2026 second quarter decreased by $160.3 million to $7.02 billion compared to the same period in fiscal 2025. The decrease in average deposits was primarily due to a decrease in noninterest-bearing deposits, partially offset by an increase in wholesale deposits and money market deposits.


Total end-of-period deposits increased 1% to $5.85 billion at March 31, 2026, from $5.82 billion at March 31, 2025. The increase in end-of-period deposits was primarily driven by an increase in money market deposits of $33.0 million and interest bearing checking of $32.9 million, partially offset by a decrease in noninterest-bearing deposits of $24.3 million.


As of March 31, 2026, the Company managed $1.07 billion of customer deposits at other banks in its capacity as custodian, compared to $1.05 billion as of December 31, 2025 and $1.12 billion as of March 31, 2025. These deposits provide the Company with the ability to earn servicing fee income, typically reflective of the EFFR.


Regulatory Capital


The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at March 31, 2026, and continued to be classified as well-capitalized, and in good standing with the regulatory agencies. Regulatory capital ratios of the Company and the Bank are stated in the table below. The decrease in Tier 1 leverage capital ratio for the period as compared to the sequential quarter is the result of higher quarterly average assets related to the Company's seasonal tax business. The Bank's Tier 1 leverage capital ratio using end-of-period assets of 10.35% better reflects the expected capital position of the Company post-tax season. See non-GAAP reconciliation table below. Regulatory capital is not affected by the unrealized loss on accumulated other comprehensive income (“AOCI”). The securities portfolio is primarily comprised of amortizing securities that should provide consistent cash flow.


The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.




As of the Periods Indicated






March 31, 2026(1)






 






December 31, 2025






 






September 30,

2025






 






June 30,

2025






 






March 31,

2025








Company






 






 






 






 






 






 






 






 






 








Tier 1 leverage capital ratio






8.62






%






 






9.51






%






 






9.79






%






 






9.78






%






 






8.31






%








Common equity Tier 1 capital ratio






12.65






%






 






12.02






%






 






12.70






%






 






12.87






%






 






13.64






%








Tier 1 capital ratio






12.89






%






 






12.26






%






 






12.95






%






 






13.12






%






 






13.91






%








Total capital ratio






14.52






%






 






13.67






%






 






14.27






%






 






14.76






%






 






15.57






%








Bank






 






 






 






 






 






 






 






 






 








Tier 1 leverage ratio






8.85






%






 






9.84






%






 






10.00






%






 






10.00






%






 






8.51






%








Common equity Tier 1 capital ratio






13.24






%






 






12.67






%






 






13.23






%






 






13.43






%






 






14.25






%








Tier 1 capital ratio






13.24






%






 






12.67






%






 






13.23






%






 






13.43






%






 






14.25






%








Total capital ratio






14.49






%






 






13.73






%






 






14.19






%






 






14.68






%






 






15.51






%









(1) March 31, 2026 percentages are preliminary pending completion and filing of the Company's regulatory reports. Regulatory capital ratios for periods presented reflect the Company's election of the five-year CECL transition for regulatory capital purposes.







The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:




 






Standardized Approach(1)








As of the Periods Indicated




 




(Dollars in thousands)






March 31,

2026






 






December 31,

2025






 






September 30,

2025






 






June 30,

2025






 






March 31,

2025








Total stockholders' equity






$






850,677






 






 






$






853,712






 






 






$






857,454






 






 






$






818,146






 






 






$






814,046






 








Adjustments:






 






 






 






 






 






 






 






 






 








LESS: Goodwill, net of associated deferred tax liabilities






 






284,471






 






 






 






284,815






 






 






 






285,158






 






 






 






285,482






 






 






 






285,865






 








LESS: Certain other intangible assets






 






17,306






 






 






 






17,746






 






 






 






18,077






 






 






 






17,091






 






 






 






16,363






 








LESS: Net deferred tax assets from operating loss and tax credit carry-forwards






 






1,207






 






 






 






5,877






 






 






 






5,733






 






 






 






2,669






 






 






 






5,788






 








LESS: Net unrealized (losses) on available for sale securities






 






(138,462






)






 






 






(133,516






)






 






 






(143,190






)






 






 






(158,673






)






 






 






(163,206






)








LESS: Noncontrolling interest






 






(785






)






 






 






(823






)






 






 






(591






)






 






 






(856






)






 






 






(658






)








ADD: Adoption of Accounting Standards Update 2016-13






 






—






 






 






 






—






 






 






 






1,788






 






 






 






1,788






 






 






 






1,788






 








Common Equity Tier 1(1)






 






686,940






 






 






 






679,613






 






 






 






694,055






 






 






 






674,221






 






 






 






671,682






 








Long-term borrowings and other instruments qualifying as Tier 1






 






13,661






 






 






 






13,661






 






 






 






13,661






 






 






 






13,661






 






 






 






13,661






 








Tier 1 minority interest not included in common equity Tier 1 capital






 






(382






)






 






 






(437






)






 






 






(307






)






 






 






(513






)






 






 






(381






)








Total Tier 1 capital






 






700,219






 






 






 






692,837






 






 






 






707,409






 






 






 






687,369






 






 






 






684,962






 








Allowance for credit losses






 






68,278






 






 






 






59,687






 






 






 






52,455






 






 






 






65,960






 






 






 






62,042






 








Subordinated debentures, net of issuance costs






 






19,846






 






 






 






19,821






 






 






 






19,796






 






 






 






19,770






 






 






 






19,744






 








Total capital






$






788,343






 






 






$






772,345






 






 






$






779,660






 






 






$






773,099






 






 






$






766,748






 









(1) Capital amounts and ratios are calculated in accordance with Basel III capital rules as implemented by U.S. banking regulators and reflect fully phased-in regulatory requirements applicable to the Company as of the reporting date.







Conference Call


The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, April 22, 2026. The live webcast of the call can be accessed from Pathward’s Investor Relations website at www.pathwardfinancial.com. Telephone participants may access the conference call by dialing 1-833-461-5787 approximately 10 minutes prior to start time and reference meeting ID 222526753.


The quarterly investor presentation prepared for use in connection with the Company's conference call and earnings webcast is available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at www.pathwardfinancial.com. A webcast replay will also be archived at www.pathwardfinancial.com for one year.


About Pathward Financial, Inc.


Pathward Financial, Inc. (Nasdaq: CASH) is a U.S.-based financial holding company driven by its purpose to power financial inclusion for all. Through our subsidiary, Pathward®, N.A., we strive to increase financial availability, choice, and opportunity across our Partner Solutions and Commercial Finance business lines. These strategic business lines provide support to individuals and businesses. Learn more at www.pathwardfinancial.com.


Forward-Looking Statements


The Company and the Bank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and Exchange Commission ("SEC"), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.


You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” "target," or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results, including our performance expectations and fiscal 2026 financial guidance; our fiscal 2026 goals and strategy; progress on key strategic initiatives; future performance and business prospects, including our Partner Solutions pipeline; our value proposition, including opportunities for revenue growth; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; impacts of our evolved operating model; expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology, including impacts of technology investments. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the Fed Funds rate and changes in international trade policies, tariffs, and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the Bank's ability to maintain its Durbin Amendment exemption; the risks of dealing with or utilizing third parties, including, in connection with the Company’s prepaid card and tax refund advance businesses; the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of the Bank's strategic partners’ refund advance products; our relationship with, and any actions, which may be initiated by our regulators, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by the Bank of its status as a well-capitalized institution; changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase; and the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in Ukraine and the Middle East, government shutdowns, weather-related disasters, or public health events, such as pandemics, and any governmental or societal responses thereto.


The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K, as amended, for the Company’s fiscal year ended September 30, 2025, and in the Company's other filings made with the SEC. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason.




Condensed Consolidated Statements of Financial Condition (Unaudited)
















 



(Dollars in Thousands, Except Share Data)






March 31, 2026






 






December 31, 2025






 






September 30, 2025






 






June 30, 2025






 






March 31, 2025








ASSETS






 






 






 






 






 






 






 






 






 








Cash and cash equivalents






$






157,602






 






 






$






331,217






 






 






$






120,568






 






 






$






258,343






 






 






$






254,249






 








Securities available for sale, at fair value






 






1,271,353






 






 






 






1,310,047






 






 






 






1,327,843






 






 






 






1,367,340






 






 






 






1,411,520






 








Securities held to maturity, at amortized cost






 






28,068






 






 






 






28,662






 






 






 






29,308






 






 






 






30,273






 






 






 






31,335






 








Federal Reserve Bank and Federal Home Loan Bank Stock, at cost






 






25,480






 






 






 






24,310






 






 






 






24,708






 






 






 






29,451






 






 






 






24,276






 








Loans held for sale






 






53,072






 






 






 






87,969






 






 






 






179,421






 






 






 






49,767






 






 






 






45,767






 








Loans and leases






 






4,867,165






 






 






 






4,982,855






 






 






 






4,664,908






 






 






 






4,743,324






 






 






 






4,464,870






 








Allowance for credit losses






 






(98,279






)






 






 






(58,840






)






 






 






(53,319






)






 






 






(105,995






)






 






 






(102,890






)








Accrued interest receivable






 






36,127






 






 






 






36,174






 






 






 






38,520






 






 






 






39,996






 






 






 






37,081






 








Premises, furniture, and equipment, net






 






42,254






 






 






 






42,370






 






 






 






40,632






 






 






 






39,799






 






 






 






39,542






 








Rental equipment, net






 






146,190






 






 






 






154,533






 






 






 






159,446






 






 






 






181,370






 






 






 






202,194






 








Goodwill and intangible assets






 






308,741






 






 






 






309,712






 






 






 






310,430






 






 






 






311,193






 






 






 






311,992






 








Other assets






 






274,626






 






 






 






311,196






 






 






 






329,879






 






 






 






284,983






 






 






 






274,850






 








Total assets






$






7,112,399






 






 






$






7,560,205






 






 






$






7,172,344






 






 






$






7,229,844






 






 






$






6,994,786






 








 






 






 






 






 






 






 






 






 






 








LIABILITIES AND STOCKHOLDERS’ EQUITY






 






 






 






 






 






 






 






 






 








 






 






 






 






 






 






 






 






 






 








LIABILITIES






 






 






 






 






 






 






 






 






 








Deposits






 






5,851,696






 






 






 






6,350,394






 






 






 






5,886,947






 






 






 






6,005,246






 






 






 






5,819,209






 








Short-term borrowings






 






26,000






 






 






 






—






 






 






 






9,000






 






 






 






115,000






 






 






 






—






 








Long-term borrowings






 






33,508






 






 






 






33,482






 






 






 






33,456






 






 






 






33,431






 






 






 






33,405






 








Accrued expenses and other liabilities






 






350,518






 






 






 






322,617






 






 






 






385,487






 






 






 






258,019






 






 






 






328,125






 








Total liabilities






 






6,261,722






 






 






 






6,706,493






 






 






 






6,314,890






 






 






 






6,411,696






 






 






 






6,180,739






 








 






 






 






 






 






 






 






 






 






 








STOCKHOLDERS’ EQUITY






 






 






 






 






 






 






 






 






 








Preferred stock






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Common stock, $.01 par value






 






213






 






 






 






222






 






 






 






228






 






 






 






230






 






 






 






235






 








Common stock, Nonvoting, $.01 par value






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






—






 








Additional paid-in capital






 






655,128






 






 






 






651,199






 






 






 






648,330






 






 






 






646,044






 






 






 






643,888






 








Retained earnings






 






340,744






 






 






 






346,529






 






 






 






359,830






 






 






 






337,321






 






 






 






341,775






 








Accumulated other comprehensive loss






 






(141,086






)






 






 






(134,996






)






 






 






(145,461






)






 






 






(159,709






)






 






 






(166,311






)








Treasury stock, at cost






 






(3,537






)






 






 






(8,419






)






 






 






(4,882






)






 






 






(4,882






)






 






 






(4,882






)








Total equity attributable to parent






 






851,462






 






 






 






854,535






 






 






 






858,045






 






 






 






819,004






 






 






 






814,705






 








Noncontrolling interest






 






(785






)






 






 






(823






)






 






 






(591






)






 






 






(856






)






 






 






(658






)








Total stockholders’ equity






 






850,677






 






 






 






853,712






 






 






 






857,454






 






 






 






818,148






 






 






 






814,047






 








Total liabilities and stockholders’ equity






$






7,112,399






 






 






$






7,560,205






 






 






$






7,172,344






 






 






$






7,229,844






 






 






$






6,994,786






 









Condensed Consolidated Statements of Operations (Unaudited)










 



 






Three Months Ended






 






Six Months Ended








(Dollars in thousands, except per share data)






March 31, 2026






 






December 31, 2025






 






March 31, 2025






 






March 31, 2026






 






March 31, 2025








Interest and dividend income:






 






 






 






 






 






 






 






 






 








Loans and leases, including fees






$






114,829






 






$






107,775






 






$






119,755






 






 






$






222,604






 






$






231,604






 








Mortgage-backed securities






 






7,590






 






 






7,812






 






 






8,580






 






 






 






15,402






 






 






17,566






 








Other investments






 






8,457






 






 






5,635






 






 






13,669






 






 






 






14,092






 






 






21,190






 








 






 






130,876






 






 






121,222






 






 






142,004






 






 






 






252,098






 






 






270,360






 








Interest expense:






 






 






 






 






 






 






 






 






 








Deposits






 






4,274






 






 






206






 






 






4,086






 






 






 






4,480






 






 






4,861






 








FHLB advances and other borrowings






 






1,478






 






 






1,678






 






 






1,639






 






 






 






3,156






 






 






3,971






 








 






 






5,752






 






 






1,884






 






 






5,725






 






 






 






7,636






 






 






8,832






 








 






 






 






 






 






 






 






 






 






 








Net interest income






 






125,124






 






 






119,338






 






 






136,279






 






 






 






244,462






 






 






261,528






 








 






 






 






 






 






 






 






 






 






 








Provision for credit loss






 






45,616






 






 






3,230






 






 






35,266






 






 






 






48,846






 






 






53,927






 








 






 






 






 






 






 






 






 






 






 








Net interest income after provision for credit loss






 






79,508






 






 






116,108






 






 






101,013






 






 






 






195,616






 






 






207,601






 








 






 






 






 






 






 






 






 






 






 








Noninterest income:






 






 






 






 






 






 






 






 






 








Refund transfer product fees






 






34,789






 






 






355






 






 






32,663






 






 






 






35,144






 






 






33,073






 








Refund advance and other tax fee income






 






57,514






 






 






131






 






 






48,585






 






 






 






57,645






 






 






49,110






 








Card and deposit fees






 






37,526






 






 






30,140






 






 






30,793






 






 






 






67,666






 






 






59,859






 








Rental income






 






10,947






 






 






11,620






 






 






13,200






 






 






 






22,567






 






 






26,908






 








(Loss) on sale of securities






 






—






 






 






—






 






 






(7,228






)






 






 






—






 






 






(22,899






)








Gain (loss) on divestitures






 






—






 






 






—






 






 






(1,360






)






 






 






—






 






 






15,044






 








Secondary market revenue






 






3,574






 






 






4,157






 






 






15,378






 






 






 






7,731






 






 






19,755






 








Gain on sale of other






 






883






 






 






488






 






 






627






 






 






 






1,371






 






 






1,614






 








Other income






 






5,947






 






 






6,872






 






 






5,866






 






 






 






12,819






 






 






13,438






 








Total noninterest income






 






151,180






 






 






53,763






 






 






138,524






 






 






 






204,943






 






 






195,902






 








 






 






 






 






 






 






 






 






 






 








Noninterest expense:






 






 






 






 






 






 






 






 






 








Compensation and benefits






 






55,405






 






 






51,864






 






 






51,905






 






 






 






107,269






 






 






101,197






 








Refund transfer product expense






 






9,127






 






 






73






 






 






8,475






 






 






 






9,200






 






 






8,583






 








Refund advance expense






 






1,425






 






 






72






 






 






1,265






 






 






 






1,497






 






 






1,299






 








Card processing






 






33,475






 






 






30,437






 






 






36,239






 






 






 






63,912






 






 






69,552






 








Building and software






 






12,201






 






 






12,580






 






 






10,306






 






 






 






24,781






 






 






20,013






 








Operating lease equipment depreciation






 






9,075






 






 






9,995






 






 






11,779






 






 






 






19,070






 






 






23,206






 








Legal and consulting






 






5,331






 






 






5,554






 






 






5,879






 






 






 






10,885






 






 






11,103






 








Intangible amortization






 






971






 






 






718






 






 






1,082






 






 






 






1,689






 






 






1,894






 








Impairment expense






 






—






 






 






—






 






 






1,514






 






 






 






—






 






 






1,514






 








Other expense






 






16,446






 






 






15,920






 






 






19,733






 






 






 






32,366






 






 






37,612






 








Total noninterest expense






 






143,456






 






 






127,213






 






 






148,177






 






 






 






270,669






 






 






275,973






 








 






 






 






 






 






 






 






 






 






 








Income before income tax expense






 






87,232






 






 






42,658






 






 






91,360






 






 






 






129,890






 






 






127,530






 








 






 






 






 






 






 






 






 






 






 








Income tax expense






 






14,171






 






 






7,193






 






 






16,166






 






 






 






21,364






 






 






22,171






 








 






 






 






 






 






 






 






 






 






 








Net income before noncontrolling interest






 






73,061






 






 






35,465






 






 






75,194






 






 






 






108,526






 






 






105,359






 








Net income attributable to noncontrolling interest






 






151






 






 






299






 






 






237






 






 






 






450






 






 






436






 








Net income attributable to parent






$






72,910






 






$






35,166






 






$






74,957






 






 






$






108,076






 






$






104,923






 








 






 






 






 






 






 






 






 






 






 








Less: Allocation of Earnings to participating securities(1)






 






70






 






 






49






 






 






263






 






 






 






128






 






 






402






 








Net income attributable to common shareholders(1)






 






72,840






 






 






35,117






 






 






74,694






 






 






 






107,948






 






 






104,521






 








Earnings per common share:






 






 






 






 






 






 






 






 






 








Basic






$






3.37






 






$






1.57






 






$






3.16






 






 






$






4.91






 






$






4.37






 








Diluted






$






3.35






 






$






1.57






 






$






3.14






 






 






$






4.89






 






$






4.35






 








Shares used in computing earnings per common share:






 






 






 






 






 






 






 






 






 








Basic






 






21,612,033






 






 






22,312,973






 






 






23,657,145






 






 






 






21,965,316






 






 






23,941,980






 








Diluted






 






21,720,222






 






 






22,381,460






 






 






23,776,023






 






 






 






22,065,346






 






 






24,039,020






 









(1) Amounts presented are used in the two-class earnings per common share calculation.







Average Balances, Interest Rates and Yields


The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.




Three Months Ended March 31,






 






2026






 






 






 






2025






 








(Dollars in thousands)






Average




Outstanding




Balance






 






Interest




Earned /




Paid






 






Yield /




Rate(1)






 






Average




Outstanding




Balance






 






Interest




Earned /




Paid






 






Yield /




Rate(1)








Interest-earning assets:






 






 






 






 






 






 






 






 






 






 






 








Cash and fed funds sold






$






620,549






 






$






4,886






 






3.19






%






 






$






926,841






 






$






9,088






 






3.98






%








Mortgage-backed securities






 






1,100,278






 






 






7,590






 






2.80






%






 






 






1,240,243






 






 






8,580






 






2.81






%








Tax-exempt investment securities






 






104,537






 






 






747






 






3.67






%






 






 






116,976






 






 






797






 






3.50






%








Asset-backed securities






 






132,041






 






 






1,500






 






4.61






%






 






 






180,750






 






 






2,228






 






5.00






%








Other investment securities






 






170,063






 






 






1,324






 






3.16






%






 






 






207,973






 






 






1,556






 






3.03






%








Total investments






 






1,506,919






 






 






11,161






 






3.06






%






 






 






1,745,942






 






 






13,161






 






3.11






%








Commercial finance






 






4,128,461






 






 






81,463






 






8.00






%






 






 






3,597,280






 






 






73,053






 






8.24






%








Consumer finance






 






146,499






 






 






7,187






 






19.90






%






 






 






295,099






 






 






19,976






 






27.45






%








Tax services






 






620,285






 






 






12,695






 






8.30






%






 






 






557,229






 






 






11,913






 






8.67






%








Warehouse finance






 






631,052






 






 






13,484






 






8.67






%






 






 






638,747






 






 






14,813






 






9.41






%








Total loans and leases






 






5,526,297






 






 






114,829






 






8.43






%






 






 






5,088,355






 






 






119,755






 






9.54






%








Total interest-earning assets






$






7,653,765






 






$






130,876






 






6.95






%






 






$






7,761,138






 






$






142,004






 






7.43






%








Noninterest-earning assets






 






648,512






 






 






 






 






 






 






611,851






 






 






 






 








Total assets






$






8,302,277






 






 






 






 






 






$






8,372,989






 






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 








Interest-bearing liabilities:






 






 






 






 






 






 






 






 






 






 






 








Interest-bearing checking






$






3,537






 






$






—






 






0.01






%






 






$






2,462






 






$






—






 






0.04






%








Savings






 






50,501






 






 






4






 






0.03






%






 






 






53,120






 






 






3






 






0.02






%








Money markets






 






209,841






 






 






138






 






0.27






%






 






 






179,591






 






 






270






 






0.61






%








Time deposits






 






2,640






 






 






6






 






0.91






%






 






 






4,213






 






 






3






 






0.25






%








Wholesale deposits






 






431,278






 






 






4,126






 






3.88






%






 






 






349,706






 






 






3,810






 






4.42






%








Total interest-bearing deposits (a)






 






697,797






 






 






4,274






 






2.48






%






 






 






589,092






 






 






4,086






 






2.81






%








Overnight fed funds purchased






 






87,836






 






 






862






 






3.98






%






 






 






88,522






 






 






1,003






 






4.60






%








Subordinated debentures






 






19,830






 






 






357






 






7.30






%






 






 






19,728






 






 






355






 






7.29






%








Other borrowings






 






13,661






 






 






259






 






7.68






%






 






 






13,661






 






 






281






 






8.34






%








Total borrowings






 






121,327






 






 






1,478






 






4.94






%






 






 






121,911






 






 






1,639






 






5.45






%








Total interest-bearing liabilities






 






819,124






 






 






5,752






 






2.85






%






 






 






711,003






 






 






5,725






 






3.27






%








Noninterest-bearing deposits (b)






 






6,323,247






 






 






—






 






—






%






 






 






6,592,216






 






 






—






 






—






%








Total deposits and interest-bearing liabilities






$






7,142,371






 






$






5,752






 






0.33






%






 






$






7,303,219






 






$






5,725






 






0.32






%








Other noninterest-bearing liabilities






 






307,071






 






 






 






 






 






 






294,080






 






 






 






 








Total liabilities






 






7,449,442






 






 






 






 






 






 






7,597,299






 






 






 






 








Shareholders' equity






 






852,835






 






 






 






 






 






 






775,690






 






 






 






 








Total liabilities and shareholders' equity






$






8,302,277






 






 






 






 






 






$






8,372,989






 






 






 






 








Net interest income and net interest rate spread including noninterest-bearing deposits






 






 






$






125,124






 






6.62






%






 






 






 






$






136,279






 






7.11






%








 






 






 






 






 






 






 






 






 






 






 






 








Net interest margin






 






 






 






 






6.63






%






 






 






 






 






 






7.12






%








Tax-equivalent effect






 






 






 






 






0.01






%






 






 






 






 






 






0.01






%








Net interest margin, tax-equivalent(2)






 






 






 






 






6.64






%






 






 






 






 






 






7.13






%








 






 






 






 






 






 






 






 






 






 






 






 








Total cost of deposits (a+b)






 






7,021,044






 






 






4,274






 






0.25






%






 






 






7,181,308






 






 






4,086






 






0.23






%









(1) Tax rate used to arrive at the TEY for the three months ended March 31, 2026 and 2025 was 21%.








(2) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.







Selected Financial Information




As of and For the Three Months Ended






March 31,

2026






 






December 31,

2025






 






September 30,

2025






 






June 30,

2025






 






March 31,

2025








Equity to total assets






 






11.96






%






 






 






11.29






%






 






 






11.96






%






 






 






11.32






%






 






 






11.64






%








Book value per common share outstanding






$






39.89






 






 






$






38.51






 






 






$






37.65






 






 






$






35.64






 






 






$






34.55






 








Tangible book value per common share outstanding






$






25.41






 






 






$






24.54






 






 






$






24.02






 






 






$






22.09






 






 






$






21.31






 








Common shares outstanding






 






21,327,534






 






 






 






22,169,535






 






 






 






22,772,570






 






 






 






22,953,608






 






 






 






23,558,939






 








Nonperforming assets to total assets






 






1.68






%






 






 






1.47






%






 






 






1.42






%






 






 






1.03






%






 






 






0.59






%








Nonperforming loans and leases to total loans and leases






 






2.39






%






 






 






2.15






%






 






 






2.05






%






 






 






1.49






%






 






 






0.88






%








Net interest margin






 






6.63






%






 






 






6.95






%






 






 






7.46






%






 






 






7.43






%






 






 






7.12






%








Net interest margin, tax-equivalent






 






6.64






%






 






 






6.96






%






 






 






7.47






%






 






 






7.44






%






 






 






7.13






%








Return on average assets






 






3.56






%






 






 






1.87






%






 






 






2.09






%






 






 






2.36






%






 






 






3.63






%








Return on average equity






 






34.67






%






 






 






16.76






%






 






 






18.93






%






 






 






21.19






%






 






 






39.19






%








Return on average tangible equity






 






54.41






%






 






 






26.72






%






 






 






30.65






%






 






 






34.77






%






 






 






65.66






%








Full-time equivalent employees






 






1,181






 






 






 






1,170






 






 






 






1,179






 






 






 






1,178






 






 






 






1,155






 







 




Non-GAAP Reconciliations








 



Net Interest Margin and Cost of Deposits






At and For the Three Months Ended








(Dollars in thousands)






March 31, 2026






 






December 31, 2025






 






March 31, 2025








Average interest earning assets






$






7,653,765






 






 






$






6,812,693






 






 






$






7,761,138






 








Net interest income






$






125,124






 






 






$






119,338






 






 






$






136,279






 








Net interest margin






 






6.63






%






 






 






6.95






%






 






 






7.12






%








Average total deposits






$






7,021,044






 






 






$






6,173,866






 






 






$






7,181,308






 








Deposit interest expense






$






4,274






 






 






$






206






 






 






$






4,086






 








Cost of deposits






 






0.25






%






 






 






0.01






%






 






 






0.23






%








 






 






 






 






 






 








Adjusted Net Interest Margin(1)






 






 






 






 






 








Average interest earning assets






$






7,653,765






 






 






$






6,812,693






 






 






$






7,761,138






 








Net interest income






 






125,124






 






 






 






119,338






 






 






 






136,279






 








Less: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet






 






23,971






 






 






 






23,013






 






 






 






26,852






 








Less: Gross interest income on consumer finance loans






 






814






 






 






 






905






 






 






 






11,937






 








Adjusted net interest income






$






100,339






 






 






$






95,420






 






 






$






97,490






 








Adjusted net interest margin






 






5.32






%






 






 






5.56






%






 






 






5.09






%








Average total deposits






$






7,021,044






 






 






$






6,173,866






 






 






$






7,181,308






 








Deposit interest expense






 






4,274






 






 






 






206






 






 






 






4,086






 








Add: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet






 






23,971






 






 






 






23,013






 






 






 






26,852






 








Adjusted deposit expense






$






28,245






 






 






$






23,219






 






 






$






30,938






 








Adjusted cost of deposits(2)






 






1.63






%






 






 






1.49






%






 






 






1.75






%









1) Adjusted net interest margin includes contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excludes the gross interest income on consumer finance loans.








2) Adjusted cost of deposits includes contractual, rate-related card processing expense associated with deposits on the Company’s balance sheet









 






 








Pathward, N.A. Period-end Tier 1 Leverage






 








(Dollars in thousands)






March 31, 2026








Total stockholders' equity






$






882,773






 








Adjustments:






 








Less: Goodwill, net of associated deferred tax liabilities






 






284,471






 








Less: Certain other intangible assets






 






17,306






 








Less: Net deferred tax assets from operating loss and tax credit carry-forwards






 






1,207






 








Less: Net unrealized gains (losses) on available for sale securities






 






(138,462






)








Less: Noncontrolling interest






 






(785






)








Common Equity Tier 1






 






719,036






 








Tier 1 minority interest not included in common equity Tier 1 capital






 






—






 








Total Tier 1 capital






$






719,036






 








 






 








Total Assets (Quarter Average)






$






8,304,851






 








Add: Available for sale securities amortized cost






 






165,767






 








Add: Deferred tax






 






(41,027






)








Less: Deductions from CET1






 






302,983






 








Adjusted total assets






$






8,126,608






 








Pathward, N.A. Regulatory Tier 1 Leverage






 






8.85






%








 






 








Total Assets (Period End)






$






7,113,101






 








Add: Available for sale securities amortized cost






 






184,002






 








Add: Deferred tax






 






(45,541






)








Less: Deductions from CET1






 






302,983






 








Adjusted total assets






$






6,948,579






 








Pathward, N.A. Period-end Tier 1 Leverage






 






10.35






%







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422113396/en/
Investor Relations Contact

Darby Schoenfeld,

CPA SVP, Chief of Staff & Investor Relations

877-497-7497

investorrelations@pathward.com


Media Relations Contact

mediarelations@pathward.com


Original: Pathward Financial, Inc. Announces Results for 2026 Fiscal Second Quarter