Business Wire·Jul 22, 2026, 4:05 PM ET

Pathward Financial, Inc. Announces Results for 2026 Fiscal Third Quarter

CASH

Pathward Financial reported net income of $29.0 million ($1.37 per diluted share) for the three months ended June 30, 2026, compared to $42.1 million ($1.81 per diluted share) in the prior year period.
Net interest income decreased 8% to $112.9 million, primarily driven by an $11.6 million reduction in consumer finance portfolio yields following a portfolio sale in October 2025.
Interest income from commercial finance loans increased by $6.1 million year-over-year, while noninterest income rose 4% to $76.7 million due to strong secondary market revenue & higher refund transfer fees.
Noninterest expense decreased 7% to $129.1 million, driven by lower card processing & legal costs, partially offset by increased investments in people, processes, & technology.
New loan originations increased to $1.86 billion from $1.10 billion, primarily fueled by growth in consumer loan originations & new contracts.
The company repurchased 303,632 shares at an average price of $92.18, leaving 3,127,179 shares available under its current repurchase program.
Tax services product revenue grew 13% to $107.7 million, with total tax services product income net of losses increasing 29% to $77.1 million.
Total gross loans & leases reached $5.11 billion, with commercial finance loans comprising 85% of the portfolio & growing 13% year-over-year.
The allowance for credit losses increased to $109.8 million, resulting in a provision of $28.3 million driven by specific reserves on two commercial finance loans & higher CECL reserves.
Nonperforming loans & leases rose to $275.1 million (5.28% of total loans), primarily due to issues with renewable energy construction projects within the commercial finance portfolio.
Regulatory capital ratios remained well above minimum requirements, with a Common Equity Tier 1 ratio of 11.51% & a Total Capital ratio of 13.33% as of June 30, 2026.
Total deposits ended the quarter at $5.95 billion, a 1% decrease from the prior year, driven by a drop in noninterest-bearing deposits.
The company announced a conference call for July 22, 2026, at 4:00 p.m. Central Time to discuss these results.