CASH

Over the past six months, Pathward Financial’s shares (currently trading at $83.24) have posted a disappointing 11.7% loss, well below the S&P 500’s 10.5% gain. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Following the drawdown, is this a buying opportunity for CASH? Find out in our full research report, it’s free. Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options. While banks generate revenue from multiple sources, investors view net interest income as a cornerstone — its predictable, recurring characteristics stand in sharp contrast to the volatility of one-time fees. Pathward Financial’s net interest income has grown at a 12.2% annualized rate over the last five years, a step above the broader banking industry and faster than its total revenue. Net interest margin (NIM) represents how much a bank earns in relation to its outstanding loans. It’s one of the most important metrics to track because it shows how a bank’s loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, we can see that Pathward Financial’s net interest margin averaged an elite 7.1%, indicating the company has a high-yielding loan book and a low cost of funds. In the banking industry, tangible book value per share (TBVPS) provides the clearest picture of shareholder value, as it focuses on concrete assets while excluding intangible items that may not hold value during challenging times. Pathward Financial’s TBVPS increased by 9.2% annually over the last five years, and growth has recently accelerated as TBVPS grew at an incredible 21.5% annual clip over the past two years (from $17.49 to $25.82 per share). These are just a few reasons why we think Pathward Financial is a great business. With the recent decline, the stock trades at 2× forward P/B (or $83.24 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Financial services company Pathward Financial (NASDAQ:CASH) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 3.1% year on year to $189.7 million. Its non-GAAP profit of $1.37 per share was 29.6% below analysts’ consensus estimates. Is now the time to buy CASH? Find out in our full research report (it’s free). Revenue: $189.7 million vs analyst estimates of $191.1 million (3.1% year-on-year decline, 0.7% miss) Adjusted EPS: $1.37 vs analyst expectations of $1.95 (29.6% miss) Market Capitalization: $1.81 billion Pathward Financial’s second quarter was marked by a negative market reaction, as the company’s results missed Wall Street expectations for both revenue and non-GAAP profit. Management attributed the underperformance primarily to heightened credit provisions, including specific reserves tied to two commercial loans—one related to a failed workout and another discovered to involve sophisticated fraud. CEO Brett Pharr acknowledged these credit events as “disappointing” but emphasized they were not indicative of broader portfolio weaknesses. Despite these setbacks, Pathward saw growth in commercial finance interest income and noninterest income, underpinned by disciplined expense management and a stable core business. Looking ahead, management’s guidance is shaped by expectations for continued expansion in commercial finance, a robust pipeline in partner solutions, and stable net interest margins, despite ongoing vigilance around credit quality. CFO Gregory Sigrist noted that future performance will depend on the pace at which new partners ramp up and the sustained growth of credit solutions. He added, “If volumes continue to trend higher, that can push us a little higher on the guide, but unforeseen credit issues would trend us to the bottom end.” Management remains focused on balancing growth with risk management, investing in technology and people to support scale and compliance. Management identified credit-related provisions and noninterest income growth as the main drivers of quarterly performance, while also highlighting progress in partner solutions and operational efficiency. Credit provisions weighed on results: The quarter’s underperformance was largely driven by increased credit reserves, including one commercial loan that shifted from a potential workout to liquidation, and another impacted by detected fraud. Management emphasized that these were isolated events, not reflective of broader portfolio risk. Commercial finance momentum: Despite credit setbacks, Pathward achieved growth in commercial finance interest income, supported by disciplined pricing and selective origination. Management prioritized targeting asset classes and partners where the company holds a competitive advantage, rather than pursuing volume for its own sake. Partner solutions pipeline expanding: The company reported a robust pipeline of opportunities in its partner solutions segment, signing a notable contract extension with early wage access provider Clair after quarter-end. Management views these multi-threaded fintech and payments partnerships as essential to diversifying revenue streams and supporting long-term growth. Tax product revenue recovery: After previous delays, secondary market sales and tax product revenues rebounded, with the tax team’s efforts generating nearly $2 million in year-over-year growth. This demonstrated the continued relevance of Pathward’s seasonal product offerings. Expense discipline maintained: Noninterest expenses improved due to lower card processing and consulting costs, while investments in technology and people continued in support of long-term scalability and compliance infrastructure. Pathward’s outlook focuses on managing credit risk while scaling commercial finance and partner solutions to drive growth and profitability. Credit normalization and risk monitoring: Management expects a reversion to more typical credit performance in upcoming quarters, with ongoing portfolio monitoring and updated reserves to address any emerging issues. CEO Brett Pharr stressed that, while credit events can occur, there are no signs of systemic problems in the loan book. Partner and product expansion: The ramp-up of new and existing partner relationships, especially in fintech and payments, is seen as a key lever for future revenue growth. Management highlighted the importance of executing on a strong pipeline and expanding into areas such as government-guaranteed lending and money movement solutions. Expense and margin management: The company will continue investing in technology and personnel for scalability, but plans to maintain noninterest expense growth in the mid to high single digits. Stable net interest margin is anticipated, with additional tailwinds from recycling low-yielding assets into higher-yielding loans. In the coming quarters, the StockStory team will watch for (1) signs of stabilization in credit quality and nonperforming loan levels, (2) execution on expanding partner solutions and onboarding new fintech and payments partners, and (3) sustained momentum in commercial finance production. Additionally, the ability to offset credit-related headwinds through expense management and diversification of revenue streams will be important markers of success. Pathward Financial currently trades at $86.22, down from $88.67 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). 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Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. A securities law firm has launched an investigation into Pathward Financial (NasdaqGS:CASH) for potential securities law violations. The review follows company disclosures of a surge in nonperforming loans, including exposure to renewable energy construction projects. Pathward Financial also reported a significant earnings miss and revised its earnings guidance downward. The investigation focuses on whether investors received accurate and complete information related to these developments. Pathward Financial, a banking and financial services company, now sits under legal scrutiny at the same time it is working through credit issues tied to renewable energy construction lending. For investors, this places renewed attention on how the company manages credit risk, underwrites specialized projects, and communicates problems when they emerge. The combination of nonperforming loans and an earnings shortfall makes the quality of disclosures a central concern. Ongoing legal inquiries do not automatically mean wrongdoing, but they often highlight areas investors may wish to monitor more closely, such as credit quality metrics and management commentary on risk controls. As events unfold, key questions will center on how Pathward Financial addresses the nonperforming loans, updates guidance, and responds to any findings from the investigation. Stay updated on the most important news stories for Pathward Financial by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Pathward Financial. Is Pathward Financial's balance sheet strong enough for future acquisitions? Dive into our detailed financial health analysis. ✅ Price vs Analyst Target: Pathward Financial trades at US$85.90, about 15% below the US$101.00 analyst price target. ✅ Simply Wall St Valuation: Shares are flagged as trading roughly 55.5% below an estimated fair value. ❌ Recent Momentum: The stock has fallen 1.4% over the past 30 days. There's only one way to know the right time to buy, sell or hold Pathward Financial. Head to Simply Wall St's company report for the latest analysis of Pathward Financial's Fair Value. 📊 The securities fraud investigation and surge in nonperforming loans put Pathward Financial's risk management and disclosure practices at the center of the investment case. 📊 Watch trends in bad loan ratios, allowance coverage, earnings guidance updates, and any commentary on renewable energy construction exposures. ⚠️ The highlighted high level of bad loans and relatively low allowance for bad loans may magnify the impact of any further credit deterioration or regulatory findings. For the full picture including more risks and rewards, check out the complete Pathward Financial analysis. Alternatively, you can check out the community page for Pathward Financial to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CASH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the quarterly provision increase to two specific commercial loans—one involving a sophisticated fraud and another shifting to liquidation—rather than a systemic portfolio issue. Non-performing loan growth was primarily driven by renewable energy construction projects tied to a single developer, which the company is working to bring to completion. The company is prioritizing 'multi-threaded' partner solutions, aiming to provide fintechs and brands with scalable technology and risk infrastructure to navigate evolving regulations. Strategic balance sheet optimization continues to favor assets with competitive advantages, maintaining pricing discipline over volume for volume's sake. The tax business achieved significant year-over-year growth of nearly $2 million, driven by successful onboarding of new tax offices and expanded product adoption. Management emphasized that despite credit events, the business model remains profitable with strong year-to-date return on average tangible equity of 34.29%. Initial fiscal year 2027 EPS guidance of $9.50 to $10.00 assumes a normalization of credit performance toward historical mean levels. The company expects to return 70% to 80% of net income to shareholders through repurchases, with flexibility to be opportunistic based on capital headroom. Secondary market revenue is projected to stabilize between $5 million and $7 million per quarter following a catch-up period in late fiscal 2026. Operating expense growth for fiscal 2027 is anticipated in the mid-to-high single digits, reflecting continued investment in people, process, and technology scalability. Management maintains a near-neutral interest rate sensitivity, expecting muted impacts on adjusted net interest margin from potential Fed rate changes. A specific reserve was established for a working capital loan involving sophisticated fraud within an otherwise viable operating company. The renewable energy NPLs are concentrated in solar projects where Pathward is stepping in to assist with the assembly phase to reach terminal value. The sale of the consumer finance portfolio in October continues to impact year-over-year net interest income comparisons due to accounting methodology changes. Management flagged that while the BaaS pipeline is full, they are being highly selective in partner onboarding to ensure long-term platform stability. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the liquidation of one legacy loan was necessary after failing to find additional participants to complete construction. The fraud-related reserve was applied quickly following an assessment of collateral value, which is typical for asset-based lending when such events occur. Brett Pharr reaffirmed commitment to the sector, citing the 'exploding' power needs of the U.S. as a fundamental driver for solar and battery storage viability. The company is constantly evaluating sub-asset classes within alternative energy to adjust exposure based on shifting administrative policies and tax credit timelines. The pipeline remains robust with a mix of immediate and long-term revenue opportunities extending into 2027 and 2028. Growth in the acquiring business has scaled faster than anticipated, contributing to the positive outlook despite broader market caution in sponsor banking. The decision to guide toward a 70% to 80% buyback ratio is a function of the long-term capital plan rather than a reaction to recent credit normalization. With a Tier 1 leverage ratio at or above 10%, the company believes it has sufficient headroom to remain opportunistic in the market.

This article first appeared on GuruFocus. Net Income: $29 million for the third quarter. Diluted Earnings Per Share (EPS): $1.37. Return on Average Assets: 2.37% year-to-date. Return on Average Tangible Equity: 34.29% year-to-date. Non-Interest Income Growth: Increased by 4% compared to the same period last year. Net Interest Margin: Declined to 6.59% in the quarter. Adjusted Net Interest Margin: Stable at 5.27%. Loan and Lease Growth: 8% increase as of June 30. Originations: $760 million during the quarter. Liquidity: $2.7 billion as of June 30. Share Repurchase: Approximately 304,000 shares repurchased at an average price of $92.18. Fiscal Year 2026 EPS Guidance: Updated to a range of $7.80 to $8.20. Fiscal Year 2027 EPS Guidance: Introduced a range of $9.50 to $10. Warning! GuruFocus has detected 2 Warning Sign with NVEC. Is CASH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pathward Financial Inc (NASDAQ:CASH) reported a net income of $29 million and diluted earnings per share of $1.37 for the third quarter of fiscal 2026. The company achieved growth in interest income from commercial finance loans and non-interest income, while managing expenses effectively. Year-to-date return metrics are strong, with a return on average assets of 2.37% and return on average tangible equity of 34.29%. Pathward Financial Inc (NASDAQ:CASH) continues to expand its product suite and capabilities, providing multi-threaded solutions for partners. The company received accolades, being named one of the best companies to work for by U.S. News & World Report and included in TIME's inaugural list of America's Best Companies 2026. There was an increase in provision during the quarter due to specific reserves on two loans and a CECL reserve build. The non-performing loan ratio increased, primarily related to renewable energy construction projects tied to a common developer. A working capital loan was identified as involving a sophisticated fraud, resulting in a specific reserve. Net interest margin declined to 6.59% in the quarter, although the adjusted net interest margin was stable at 5.27%. The company had to move certain loans to non-accrual status, impacting financial performance. Q: Can you discuss the changes over the last year that resulted in the reserve for the two commercial loans that drove the provision? A: Brett Pharr, CEO, explained that one loan was in the assembly phase with issues among participants. They initially believed they could find new buyers to complete the project, but it didn't materialize, leading to liquidation. The economic result of liquidating equipment differs from completing the project, prompting the reserve. Q: Is the fraud-related loan this quarter connected to the one mentioned last year? What's your confidence in recovering the potential loss? A: Brett Pharr clarified that the fraud this quarter is a new occurrence. In asset-based lending, frauds can happen quickly. They assess the collateral and apply appropriate reserves. This is not a long-standing issue but a recent development. Q: Regarding the renewable energy loans, are these issues related to changes by the administration, or are they idiosyncratic? A: Brett Pharr noted that the renewable energy sector, including solar, is growing, and projects are generally viable. The issues were more related to specific project dynamics rather than broader policy changes. Q: What are the main factors that could push results towards the top or bottom of the fiscal '27 guidance range? A: Gregory Sigrist, CFO, stated that faster ramp-up of new partners and continued success in Credit Solutions could push results higher. Unforeseen credit issues could trend results towards the lower end. Q: Has the evolution of AI influenced your decision to own the technology stack instead of using third parties? A: Brett Pharr mentioned that they already leaned towards building internally due to their robust engineering department. AI might accelerate this trend, as they evaluate the economics of building versus buying. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Pathward Financial, Inc.? Here are five stocks we like better. Pathward Financial posted Q3 fiscal 2026 net income of $29 million, or $1.37 per share, but results were weighed down by elevated credit costs tied to two specific loans and a CECL reserve build. Management said the issues appeared isolated and not indicative of a broader portfolio problem. Commercial Finance and partner-driven businesses continued to grow, with loans and leases up 8% and originations rising $760 million in the quarter. Non-interest income also increased 4%, supported by tax product revenue and ongoing expansion with partners. The company raised and extended guidance, now expecting fiscal 2026 diluted EPS of $7.80 to $8.20 and introducing fiscal 2027 EPS guidance of $9.50 to $10. Pathward also highlighted strong liquidity of $2.7 billion and ongoing share repurchases. Will Lightning Strike Twice for These 3 October 2020 Winners? Pathward Financial (NASDAQ:CASH) reported third-quarter fiscal 2026 net income of $29 million, or $1.37 per diluted share, as executives said growth in Commercial Finance interest income and non-interest income was offset by elevated credit costs tied to a small number of loans. CEO Brett Pharr said the quarter’s main outlier was credit, noting that Pathward recorded an increase in provision expense “largely driven by specific reserves on two loans and a CECL reserve build.” One of the loans had been discussed during last year’s June-quarter earnings call as moving to non-performing status with a potential workout path, while another was described as potentially associated with “a sophisticated fraud.” → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “While this is certainly a disappointing outcome, credit events can and do occur in the world of lending,” Pharr said. “At this time, we believe these events are not indicative of a broader systemic issue within the portfolio.” Pharr said Pathward’s non-performing loan ratio rose primarily because of renewable energy construction projects tied to a common developer. The company moved those loans to non-accrual status while it works with other parties to bring the projects to completion. Pharr said Pathward is not currently aware of other loans in its portfolio with a similar fact pattern. → 3 Photonics Companies Making Quantum Tech Possible During the question-and-answer portion of the call, Pharr said the non-performing renewable energy loans were associated with solar projects involving a single developer and multiple projects “in the process of assembly.” He said Pathward continues to participate in alternative energy lending, citing growing U.S. power demand, while evaluating sub-asset classes and adjusting its approach over time. CFO Greg Sigrist said the majority of the quarter’s Commercial Finance provision was attributable to the two specific reserves and adjustments to the CECL reserve. He said the Commercial Finance credit provision totaled roughly $34 million, with about $28 million to $30 million tied to the issues discussed on the call. Sigrist said that represented about $1 per share of impact. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Sigrist also said roughly $100 million in past-due loans had come current since quarter-end. He said the larger loans discussed over the past year now have specific reserves established “as appropriate” to reflect expected proceeds. Pathward said its results reflected growth in core Commercial Finance, non-interest income and disciplined expense management. Sigrist said the October sale of the consumer finance portfolio reduced net interest income as expected because it eliminated grossed-up accounting for that portfolio. Loans and leases at June 30 grew 8%, which Sigrist attributed to the company’s focus on “ensuring we have the right loans on the balance sheet.” Originations grew by $760 million in the quarter, primarily driven by growth in the Credit Solutions business from a new contract signed last year and expansion with current partners. Net interest margin declined to 6.59%, while adjusted net interest margin was stable at 5.27%. Sigrist said new Commercial Finance loan production in the quarter carried a yield of 8.99%, compared with a loan portfolio yield of 7.42%, which he said creates potential tailwinds. He also said about $150 million of principal is expected to come off the securities portfolio over the next 12 months and could be recycled into higher-yielding assets. Non-interest income increased 4% from the prior-year quarter. Sigrist highlighted the tax team’s performance, saying it generated nearly $2 million of year-over-year growth in total tax product revenue during the quarter as Pathward onboarded new tax offices and helped existing partners provide additional products. Non-interest expense improved in the quarter, which Sigrist attributed to lower card processing expense and lower legal and consulting expenses. Those reductions were partially offset by spending tied to the company’s strategy, including investments in people, culture and technology. Pharr said Pathward continues to focus on five strategic areas: maintaining an optimized balance sheet, using technology to support evolution and scalability, people and culture, risk and compliance infrastructure, and client experience. He noted that Pathward was named by U.S. News & World Report as one of the best companies to work for for 2026-2027 and was included on TIME’s inaugural list of America’s Best Companies 2026. On technology, Pharr said Pathward has been building technology, risk and compliance capabilities to support a scalable platform. In response to an analyst question about artificial intelligence, he said the company already had a “very robust engineering department” because certain capabilities needed to be built internally, adding that AI could accelerate the company’s inclination to build rather than buy. Pharr said Pathward continues to see a “full” pipeline in its banking-as-a-service and Partner Solutions businesses, with both new partner opportunities and expansion opportunities. He said the company is being selective in choosing partners and that some new arrangements may generate revenue quickly, while others may contribute more meaningfully in fiscal 2027 and 2028. After quarter-end, Pathward signed a contract extension with Clair, which Pharr described as an early wage access partner. Executives also pointed to opportunities in acquiring, money movement and government-guaranteed lending, including potential SBA-related opportunities. Asked whether credit issues had affected partner conversations, Pharr said there was no connection between the credit book and the company’s payment solutions partners. “Those conversations are going well,” he said. Pathward updated its fiscal 2026 diluted EPS guidance to a range of $7.80 to $8.20. The forecast assumes no additional rate changes during the year, an effective tax rate of 16% to 18% and expected share repurchases. The company also introduced fiscal 2027 diluted EPS guidance of $9.50 to $10. The assumptions include no rate changes during the year, an effective tax rate of 18% to 22%, secondary market revenue of $5 million to $7 million per quarter and expected share repurchases equal to about 70% to 80% of net income. Sigrist said factors that could push fiscal 2027 results toward the top of the range include faster ramping by new partners and continued strength in Credit Solutions volumes. He said unforeseen credit issues would be the main factor that could pressure results toward the lower end of the range. As of June 30, Pathward reported $2.7 billion in liquidity. During the quarter, the company repurchased about 304,000 shares at an average price of $92.18, leaving 3.1 million shares available under its current repurchase program. Pathward Financial (NASDAQ:CASH) is a U.S.-based financial services company that operates through its wholly owned subsidiary, Pathward Bank. The company provides a range of banking and payment solutions designed for consumers, small businesses, community banks and fintech partners. Core offerings include deposit accounts, consumer and commercial lending, debit and prepaid card programs, digital banking platforms and treasury management services. Through its banking charter, Pathward Financial delivers customizable payment solutions, including prepaid cards, payroll cards and benefit disbursement programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pathward Financial Q3 Earnings Call Highlights" was originally published by MarketBeat. 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Pathward Financial (CASH) came out with quarterly earnings of $1.37 per share, missing the Zacks Consensus Estimate of $1.95 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -29.74%. A quarter ago, it was expected that this holding company for Pathward, N.A. would post earnings of $3.35 per share when it actually produced earnings of $3.35, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Pathward, which belongs to the Zacks Banks - Northeast industry, posted revenues of $189.64 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $195.76 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Pathward shares have added about 24.8% since the beginning of the year versus the S&P 500's gain of 9.7%. While Pathward has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Pathward was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.89 on $185.15 million in revenues for the coming quarter and $8.73 on $824.66 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Camden National (CAC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This bank is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of +46.1%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. Camden National's revenues are expected to be $66.4 million, up 6.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pathward Financial, Inc. (CASH) : Free Stock Analysis Report Camden National Corporation (CAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SIOUX FALLS, S.D., July 22, 2026--(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 unaudited results for the 2026 fiscal third quarter. The Company reported net income of $29.0 million, or earnings per diluted share of $1.37 for the three months ended June 30, 2026, compared to net income of $42.1 million, or earnings per diluted share of $1.81 for the three months ended June 30, 2025. CEO Brett Pharr said, "We saw changes in our credit performance this quarter primarily as a result of a few larger loans, one of which we began discussing last year. While this is certainly a disappointing outcome, credit events can and do occur in the world of lending. It’s unfortunate that these events occurred within an otherwise solid performing quarter and year thus far. During the quarter, we delivered higher interest income from commercial finance loans, higher noninterest income, and disciplined expense management that prioritized the execution of our strategy with an emphasis on people, processes and technology. We remain focused on supporting our partners and advancing our long-term strategy of being the trusted platform that enables our partners to thrive." Company Highlights In April 2026, the Company released its 2025 Impact Report. The report highlights Pathward's deep partner expertise in enabling inclusive banking, payments, lending and tax solutions nationwide, while making progress on the Company's sustainability efforts. Financial Highlights for the 2026 Fiscal Third Quarter All highlights are compared to the same fiscal quarter in the prior year period. Interest income from commercial finance loans increased by $6.1 million. Total noninterest income increased 4%, or $3.3 million, as a result of strong secondary market revenue generation. Noninterest expense decreased 7% as a result of disciplined expense management while the Company continued to make strategic investments across people, processes, and technology in order to execute on its long-term strategy. New loan originations increased from $1.10 billion to $1.86 billion, primarily driven by an increase in consumer loan originations resulting from a new contract announced during fiscal 2025 and growth with current partners. The Company repurchased 303,632 shares of common stock at an average share price of $92.18. As of June 30, 2026, there were 3,127,179 shares available for repurchase under the current common stock share repurchase program. Tax Season All reported numbers are for the nine months ended June 30, 2026 and are compared to the same fiscal period in the prior year. The Company is very pleased with the performance in Tax Services during fiscal 2026, which was the result of significant work to grow this business, increase market share and evolve the underwriting model. Total tax services product revenue was $107.7 million, an increase of 13% compared to the prior year. This was driven by increases in refund advance and refund transfer product fees. Total tax services product fee income increased by $12.4 million and net interest income on tax services loans increased $0.2 million. Total tax services product expense increased $0.9 million. Provision for credit losses for the tax services portfolio decreased $5.7 million 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 29% to $77.1 million from $59.8 million. Net Interest Income Net interest income for the third quarter of fiscal 2026 was $112.9 million, a decrease of 8% compared to the same quarter in fiscal 2025. The decrease was primarily driven by an $11.6 million reduction in interest income on the consumer finance portfolio. 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 $6.1 million year-over-year as the Company continues to have strong originations. The Company’s average interest-earning assets for the third quarter of fiscal 2026 increased by $273.8 million to $6.88 billion compared to the same quarter in fiscal 2025 due to increases in the average outstanding balances in total loans and leases and cash and fed funds sold. The increase was partially offset by a decrease in the average outstanding balance of total investments. The third quarter average outstanding balance of loans and leases increased $406.2 million compared to the same quarter of the prior fiscal year due to an increase in the commercial finance portfolio, partially offset by decreases in the consumer finance portfolio and warehouse finance portfolio. Fiscal 2026 third quarter net interest margin ("NIM") decreased to 6.59% from 7.43% in the third 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 5.27% in the fiscal 2026 third quarter compared to 5.33% during the fiscal 2025 third 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 86 basis points to 6.66% compared to the prior year quarter. The yield on the loan and lease portfolio was 7.99% compared to 9.33% for the comparable period last year and the TEY on the securities portfolio was 3.00% compared to 3.10% 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 0.07% during the fiscal 2026 third quarter, as compared to 0.08% during the prior year quarter. The Company's overall cost of deposits was 0.01% in the fiscal third quarter of 2026, as compared to 0.02% 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 1.43% in the fiscal 2026 third quarter, a decrease from 1.61% 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 third quarter noninterest income increased 4% to $76.7 million, compared to $73.4 million for the same period of the prior year. The increase was driven by increases in secondary market revenue as the Company was able to catch up on sales as government agencies cleared earlier-year backlogs, higher refund transfer product fees, and other income. This was partially offset by decreases in rental income and card and deposit fees. Servicing fee income on custodial deposits totaled $7.5 million during the 2026 fiscal third quarter, as compared to $7.8 million for the fiscal quarter ended March 31, 2026, and $7.9 million for the same period of the prior year. Noninterest Expense Noninterest expense decreased 7% to $129.1 million in the third quarter of fiscal 2026, compared to $139.3 million for the same quarter last year. The decrease was primarily attributable to reductions in card processing expense and lower legal and consulting expense. These decreases were partially offset by increases in compensation and benefits and building and software expenses that directly correlate to the execution of the Company's long-term strategy, particularly investments in people, processes and technology. Card processing expense is primarily driven by rate-related agreements with Partner Solutions relationships and subject to 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 68% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2026 third quarter. For the fiscal quarter ended June 30, 2026, contractual, rate-related processing expense was $23.3 million, as compared to $25.4 million for the fiscal quarter ended March 31, 2026, and $25.1 million for the fiscal quarter ended June 30, 2025. Income Tax Expense The Company recorded an income tax expense of $3.1 million, representing an effective tax rate of 9.5% for the fiscal 2026 third quarter, compared to an income tax expense of $4.8 million, representing an effective tax rate of 10.2%, for the third quarter last fiscal year. The current quarter decrease in income tax expense compared to the prior year quarter was primarily driven by a decrease in income. The Company originated $5.3 million in renewable energy leases during the fiscal 2026 third quarter, resulting in $1.4 million in total net investment tax credits. During the third quarter of fiscal 2025, the Company originated $2.1 million in renewable energy leases resulting in $0.2 million in total net investment tax credits. For the nine months ended June 30, 2026, the Company originated $32.9 million in renewable energy leases, compared to $13.3 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. The Company's investment security balances at June 30, 2026 totaled $1.25 billion, as compared to $1.30 billion at March 31, 2026 and $1.40 billion at June 30, 2025. The year-over-year decrease was primarily related to normal paydown activity of investment security balances and the sale of investment securities available-for-sale during the fourth quarter of fiscal 2025. Total gross loans and leases totaled $5.11 billion at June 30, 2026, as compared to $4.87 billion at March 31, 2026 and $4.74 billion at June 30, 2025. The drivers for the sequential quarter increase were increases in the commercial finance, warehouse finance, and consumer finance portfolios, partially offset by the seasonal decrease in the tax services portfolio. The year-over-year increase was due to growth in the commercial finance portfolio, 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 and tax services portfolio. Commercial finance loans, which comprised 85% of the Company's loan and lease portfolio, totaled $4.32 billion at June 30, 2026, reflecting an increase of $210.2 million, or 5%, from March 31, 2026 and an increase of $504.8 million, or 13%, from June 30, 2025. The sequential quarter increase in the commercial finance portfolio was driven by a $165.1 million increase in term lending, a $37.5 million increase in asset-based lending, and a $31.3 million increase in SBA/USDA, partially offset by a $24.2 million decrease in other commercial finance and a $6.3 million decrease in lease financing. The year-over-year increase was primarily driven by an increase of $663.3 million in term lending and an increase of $86.8 million in asset-based lending, partially offset by a decrease of $106.9 million in SBA/USDA and a decrease of $103.8 million in other commercial finance. These changes are primarily the result of the Company's efforts to maintain an optimized balance sheet. Asset Quality The Company’s allowance for credit losses ("ACL") totaled $109.8 million at June 30, 2026, an increase compared to $98.3 million at March 31, 2026 and an increase compared to $106.0 million at June 30, 2025. The sequential increase in the ACL was primarily due to an increase of $18.0 million in the allowance related to the commercial finance portfolio, partially offset by a $5.2 million decrease in the allowance related to the seasonal tax portfolio, and a $1.4 million decrease in the allowance related to the consumer finance portfolio. The increase in the ACL in the commercial finance portfolio was primarily driven by specific reserves on two loans and an increase in the current expected credit loss ("CECL") reserve. The $3.8 million year-over-year increase in the ACL was primarily driven by a $25.4 million increase in the allowance related to the commercial finance portfolio, partially offset by a decrease in the allowance related to the consumer finance portfolio of $21.3 million. The following table presents the Company's ACL as a percentage of its total loans and leases. The Company's ACL as a percentage of total loans and leases increased to 2.15% at June 30, 2026 from 2.02% at March 31, 2026 and decreased from 2.23% at June 30, 2025. The sequential increase in the total loans and leases coverage ratio was primarily driven by 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. The Company recognized a provision for credit losses of $28.3 million for the quarter ended June 30, 2026, compared to $9.3 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 $22.6 million, partially offset by decreases in the consumer finance portfolio of $3.0 million and in the tax services portfolio of $1.3 million. The increase in the provision in the commercial finance portfolio was primarily driven by specific reserves on two loans and an increase in the CECL reserve. The Company recognized net charge-offs of $16.0 million for the quarter ended June 30, 2026, of which $15.9 million was attributable to the commercial finance portfolio. Net charge-offs were $6.1 million for the quarter ended June 30, 2025, comprised of $5.8 million within the consumer finance portfolio and $1.7 million within the commercial finance portfolio, while net recoveries of $1.4 million were recognized in the seasonal tax services portfolio. The Company's past due loans and leases were as follows for the periods presented. The Company's nonperforming assets at June 30, 2026 were $277.5 million, representing 3.79% of total assets, compared to $119.8 million, or 1.68% of total assets at March 31, 2026 and $74.7 million, or 1.03% of total assets at June 30, 2025. The increase in the nonperforming assets as a percentage of total assets at June 30, 2026, compared to March 31, 2026, was driven by an increase in nonperforming loans in the commercial finance and consumer finance portfolios. 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 June 30, 2026, were $275.1 million, representing 5.28% of total gross loans and leases, compared to $117.7 million, or 2.39% of total gross loans and leases at March 31, 2026 and $71.3 million, or 1.49% of total gross loans and leases at June 30, 2025. The primary reason for the increase in nonperforming commercial finance loans was related to certain renewable energy construction projects with a common developer. The Company continues to work with other parties in these projects to bring them to completion. Deposits, Borrowings and Other Liabilities The average balance of total deposits and interest-bearing liabilities was $6.25 billion for the quarter ended June 30, 2026, compared to $6.07 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2026 third quarter increased by $170.9 million to $6.17 billion compared to the same period in fiscal 2025. The increase in average deposits was primarily due to increases in noninterest-bearing deposits and money market deposits. Total end-of-period deposits decreased 1% to $5.95 billion at June 30, 2026, from $6.01 billion at June 30, 2025. The decrease in end-of-period deposits was primarily driven by a decrease in noninterest-bearing deposits of $65.4 million, partially offset by an increase in interest-bearing checking deposits of $18.8 million. As of June 30, 2026, the Company managed $575.0 million of customer deposits at other banks in its capacity as custodian, compared to $1.07 billion as of March 31, 2026 and $430.7 million as of June 30, 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 June 30, 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. 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. 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: 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, July 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 452951502. 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 and 2027 financial guidance; our fiscal 2026 goals and strategy; including our emphasis on people, processes and technology; 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; expectations with respect to credit performance, expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; 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, 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, 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, except as required by applicable law. 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. Non-GAAP Reconciliations View source version on businesswire.com: https://www.businesswire.com/news/home/20260722042543/en/ Contacts Investor Relations ContactDarby Schoenfeld, CPASVP, Chief of Staff & Investor [email protected] Media Relations [email protected]

Financial services company Pathward Financial (NASDAQ:CASH) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 3.1% year on year to $189.6 million. Its GAAP profit of $1.37 per share was 29.6% below analysts’ consensus estimates. Is now the time to buy Pathward Financial? Find out in our full research report. Net Interest Income: $112.9 million vs analyst estimates of $117.3 million (7.7% year-on-year decline, 3.7% miss) Net Interest Margin: 6.6% vs analyst estimates of 6.9% (35 basis point miss) Revenue: $189.6 million vs analyst estimates of $191.1 million (3.1% year-on-year decline, 0.8% miss) EPS (GAAP): $1.37 vs analyst expectations of $1.95 (29.6% miss) Tangible Book Value per Share: $25.83 vs analyst estimates of $26.19 (16.8% year-on-year growth, 1.4% miss) Market Capitalization: $1.87 billion Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options. From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Pathward Financial grew its revenue at a mediocre 9.2% compounded annual growth rate. This wasn’t a great result compared to the rest of the banking sector, but there are still things to like about Pathward Financial. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Pathward Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 2.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Pathward Financial missed Wall Street’s estimates and reported a rather uninspiring 3.1% year-on-year revenue decline, generating $189.6 million of revenue. Net interest income made up 59.5% of the company’s total revenue during the last five years, meaning Pathward Financial’s growth drivers strike a balance between lending and non-lending activities. Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time. This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules. Pathward Financial’s TBVPS grew at an exceptional 9.2% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 21.5% annually over the last two years from $17.49 to $25.83 per share. Over the next 12 months, Consensus estimates call for Pathward Financial’s TBVPS to grow by 19.9% to $30.97, top-notch growth rate. We struggled to find many positives in these results. Its net interest income missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 12.6% to $77.45 immediately after reporting. The latest quarter from Pathward Financial’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.