Core Viewpoint - Pathward Financial (CASH) has shown moderate performance over the past year, with a stock price increase of approximately 7% [1] Group 1: Stock Performance - The stock recently reached a 52-week high, driven by positive investor sentiment following an encouraging earnings release [1]

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Credicorp (BAP) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Credicorp is a member of the Finance sector. This group includes 858 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank gauges the strength of our 16 individual se ...

Shares of Pathward Financial (CASH) have been strong performers lately, with the stock up 16.7% over the past month. The stock hit a new 52-week high of $86.92 in the previous session. Pathward has gained 20.7% since the start of the year compared to the 17.1% move for the Zacks Finance sector and the 11% return for the Zacks Banks - Northeast industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in ...

On deposits, Pharr said Pathward’s issuing partnerships generally provide “stable deposits,” and he emphasized the company’s role in enabling financial inclusion for underserved or unbanked consumers and businesses. On lending, he said Pathward specializes in serving businesses that may not be able to borrow from traditional banks and, in some cases, originates commercial finance loans through partners.Pharr said the company’s value proposition is anchored in four pillars: seasoned leadership in payments an ...

Pathward Financial (CASH) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.77%. A quarter ago, it was expected that this holding company for Pathward, N.A. would post earnings of $1.39 per share when it actually produced earnings of $1.69, delivering a surprise of +21.58%.Over the ...

Financial Data and Key Metrics Changes - The company reported net income of $35.2 million and earnings per diluted share of $1.57, representing increases of 17% and 28% respectively compared to the previous year [16] - Return on average assets was 1.87% and return on average tangible equity was 26.7%, compared to 1.61% and 25.5% respectively during the same quarter last year [16] - Deposits totaled $6.4 billion, a decrease of $170 million year-over-year, primarily due to an increase in custodial deposits [16][17] - Average deposits during the quarter were approximately $90 million higher than the previous year [17] Business Line Data and Key Metrics Changes - Net interest income from commercial finance increased by $9.2 million due to higher balances and slightly higher yields [14] - Non-interest income showed solid results, particularly in core card and deposit fees, with growth attributed to new partners [15] - The company originated $1.9 billion in loans during the quarter, with $678 million in commercial finance and $1.2 billion in consumer finance [17] Market Data and Key Metrics Changes - The company experienced favorable deposit balances at multiple partners due to a strong holiday season and continued partner growth [17] - The government shutdown impacted secondary market revenues, but this is expected to normalize in subsequent quarters [15][46] Company Strategy and Development Direction - The company aims to optimize its balance sheet by rotating from securities to loans, increasing net interest income without growing overall asset size [9] - The focus is on generating fee income from balance sheet velocity and originating loans while maintaining a steady balance sheet [10] - The company is committed to enhancing the client experience through an evolved operating model that supports partner growth and scalability [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth from new partnerships and the upcoming tax season, which is expected to drive more consumers into tax preparation offices [11][45] - The company is optimistic about the impact of new partner announcements and the normalization of pricing in the industry [41][42] - Management highlighted the importance of monitoring the performance of new partners and the potential for increased revenue from tax-related financial products [43][45] Other Important Information - The company repurchased approximately 652,000 shares at an average price of $72.07, leaving 4.3 million shares available for repurchase [21] - The fiscal year 2026 guidance for EPS has been raised to a range of $8.55-9.05, assuming no additional rate cuts and an effective tax rate of 18-22% [21] Q&A Session Summary Question: What is the trajectory of the adjusted NIM for Q2? - Management indicated that the adjusted NIM for Q2 is expected to be around 5.31%, with potential for it to be flat to up depending on the macroeconomic environment [25][26] Question: Can you quantify the recovery recorded within the net charge-offs? - Management did not provide specific figures but mentioned that the details would be available in the earnings release [27] Question: How does the company view the threat of FinTechs obtaining their own bank charters? - Management believes that while some FinTechs may pursue bank charters, the complexity and scale required to operate effectively will limit their competitive pressure [29][30] Question: What is the current partner pipeline and expectations for future announcements? - Management reported a full partner pipeline and expressed optimism about future announcements, indicating that the number of partnerships is increasing [42] Question: What factors will influence the updated guidance for the fiscal year? - The timing of new partner contributions and the success of the tax season are key factors that will influence the guidance range [43][45]

Financial Data and Key Metrics Changes - The company reported net income of $35.2 million, an increase of 17% year-over-year, and earnings per diluted share of $1.57, up 28% compared to the previous year [16] - Return on average assets was 1.87%, compared to 1.61% in the same quarter last year, while return on average tangible equity was 26.7%, up from 25.5% [16] - Deposits totaled $6.4 billion, a decrease of $170 million year-over-year, primarily due to an increase in custodial deposits [16][17] Business Line Data and Key Metrics Changes - Net interest income from commercial finance increased by $9.2 million due to higher balances and slightly higher yields [14] - Non-interest income showed solid results, particularly in core card and deposit fees, with growth attributed to new partners [15] - Loans and leases increased to $5 billion, driven by a $531 million increase in commercial finance loans, partially offset by a $148 million decrease in consumer finance loans [17] Market Data and Key Metrics Changes - Average deposits during the quarter were approximately $90 million higher than the previous year, with favorable deposit balances due to a strong holiday season [17] - The company originated $1.9 billion in loans during the quarter, with $678 million in commercial finance and $1.2 billion in consumer finance [17] Company Strategy and Development Direction - The company aims to optimize its balance sheet by rotating from securities to loans, increasing net interest income without growing overall asset size [9] - The focus is on generating fee income from balance sheet velocity and originating loans while maintaining a steady balance sheet [10] - The company is committed to enhancing the client experience through an evolved operating model that supports partner growth and scalability [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth from new partnerships and the upcoming tax season, which is expected to drive more consumers into tax preparation offices [11][21] - The company anticipates that the changes in tax code for 2025 will positively impact consumer engagement [11] - Management remains optimistic about the pipeline of new partners and the normalization of pricing in the industry [44] Other Important Information - The company repurchased approximately 652,000 shares at an average price of $72.07, leaving 4.3 million shares available for repurchase [21] - The fiscal year 2026 guidance for earnings per share has been raised to a range of $8.55-$9.05, based on several assumptions including no additional rate cuts [21] Q&A Session Summary Question: What is the trajectory for adjusted NIM in Q2? - Management indicated that the adjusted NIM has shown an upward trajectory, with a starting point of 5.49% for Q2, assuming no rate cuts [25][26] Question: Can you quantify the recovery recorded within net charge-offs? - Management did not provide specific figures but mentioned that the details would be available in the earnings release [27] Question: How does the company view the threat of FinTechs obtaining their own bank charters? - Management believes that while there may be some competition, the scale and complexity of operations will limit the impact of new charters on their business [30][31] Question: What is the current partner pipeline and expectations for new announcements? - Management reported a full pipeline and expressed optimism about future partner announcements, indicating that the number of opportunities is increasing [44] Question: What factors will influence the updated guidance? - The timing of new partner contributions and the success of the tax season are key factors that could affect the guidance range [49][50]

Financial Data and Key Metrics Changes - The company reported net income of $35.2 million and earnings per diluted share of $1.57, representing increases of 17% and 28% respectively compared to the previous year [15] - Return on average assets was 1.87% and return on average tangible equity was 26.7%, up from 1.61% and 25.5% respectively in the same quarter last year [15] - Deposits totaled $6.4 billion, a decrease of $170 million year-over-year, primarily due to an increase in custodial deposits [15][16] - Average deposits during the quarter were approximately $90 million higher than the previous year [16] Business Line Data and Key Metrics Changes - Net interest income from commercial finance increased by $9.2 million due to higher balances and slightly higher yields [12][13] - Non-interest income showed solid results, particularly in core card and deposit fees, with growth attributed to new partners [14] - Loans and leases increased to $5 billion, driven by a $531 million increase in commercial finance loans, partially offset by a $148 million decrease in consumer finance loans [16] Market Data and Key Metrics Changes - The company experienced favorable deposit balances at multiple partners due to a strong holiday season and continued partner growth [16] - The government shutdown impacted secondary market revenues, but this is expected to recover in subsequent quarters [14][39] Company Strategy and Development Direction - The company aims to optimize its balance sheet by rotating from securities to loans, increasing net interest income without growing overall asset size [9] - Pathward is focused on financial inclusion, providing solutions for underserved and unbanked individuals and businesses [7] - The company is enhancing its operating model to better align with partners and support their growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth from new partnerships and the upcoming tax season, anticipating benefits from changes in tax code [10][11] - The company is optimistic about the impact of new partner announcements and the normalization of pricing in the industry [36][37] - Management highlighted the importance of monitoring new partners and the potential for increased loan originations throughout the year [44] Other Important Information - The company repurchased approximately 652,000 shares at an average price of $72.07, with 4.3 million shares still available for repurchase [19] - The fiscal year 2026 guidance for EPS has been increased to a range of $8.55-$9.05 [19] Q&A Session Summary Question: What is the adjusted NIM trajectory for Q2? - Management indicated that the adjusted NIM for Q2 is expected to be around 5.31%, with potential for it to be flat to up depending on the macroeconomic environment [21][22] Question: Can you quantify the recovery recorded within net charge-offs? - Management stated that specific quantification of the recovery is not available, but aggregate numbers can be found in the earnings release [23] Question: How does the emergence of FinTechs obtaining bank charters impact the company? - Management believes that while there may be some competition, the scale and complexity of operations required to match Pathward's offerings will take time for new entrants [25][26] Question: What is the embedded growth from new partners? - Management expects mid to high single-digit contributions from new partners once programs are launched and live [32][33] Question: What factors will influence the updated guidance? - The timing of new partner contributions and the success of the tax season are key factors that could push results toward the higher end of the guidance [38][40]

THE PATHWARD STORY UPDATED JANUARY 22, 2026 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 FORWARD LOOKING STATEMENTS This investor update contains "forward-looking statements" which are made in good faith by Pathward Financial, Inc. (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," ...

Financial Performance - Net income for the first quarter of fiscal 2026 was $35.2 million, or $1.57 per share, compared to $30.0 million, or $1.23 per share, in the same quarter of fiscal 2025, representing a 17.3% increase in net income [1][2]. - Total revenue for the first quarter was $173.1 million, with net interest income at $119.3 million, a decrease of 5% compared to the same quarter in fiscal 2025 [4][6]. - Noninterest income decreased 6% to $53.8 million, primarily due to declines in rental income and other income, partially offset by an increase in card and deposit fee income [9]. - Net income attributable to common shareholders for the quarter was $35,117 thousand, down from $38,664 thousand in the previous quarter, reflecting a decrease of 4.0% [47]. - Earnings per common share (basic) for the quarter was $1.57, compared to $1.70 in the previous quarter, a decline of 7.6% [47]. Loan and Credit Quality - New loan originations increased from $1.38 billion to $1.89 billion, driven by growth in consumer and commercial finance [6]. - The allowance for credit losses totaled $58.8 million, an increase from $53.3 million at the end of September 2025, but a decrease from $74.3 million at the end of December 2024 [18]. - The provision for credit losses was $3.2 million for the quarter ended December 31, 2025, a decrease from $18.7 million for the same period in the prior fiscal year [24]. - Nonperforming loans and leases at December 31, 2025, were $109.1 million, representing 2.15% of total gross loans and leases, compared to 2.05% at September 30, 2025 [29]. - Nonperforming loans and leases to total loans and leases increased to 2.15%, up from 1.49% in the previous year, indicating a rise in asset quality concerns [52]. Assets and Liabilities - Total gross loans and leases reached $4.98 billion, up from $4.66 billion at September 30, 2025, and $4.56 billion at December 31, 2024, driven by increases in commercial finance and seasonal tax services [16][17]. - Total assets increased to $7,560,205 thousand as of December 31, 2025, up from $7,172,344 thousand in September 2025, representing a growth of 5.4% [44]. - Total liabilities increased to $6,706,493 thousand as of December 31, 2025, compared to $6,314,890 thousand in September 2025, an increase of 6.2% [44]. - Total stockholders' equity as of December 31, 2025, is $853,712,000, an increase from $757,554,000 as of December 31, 2024, representing a growth of approximately 12.7% year-over-year [36]. Capital Management - Regulatory capital ratios remained above federal minimum requirements, with the Tier 1 leverage capital ratio at 9.51% as of December 31, 2025 [35]. - Common Equity Tier 1 capital stands at $679,613,000 as of December 31, 2025, compared to $629,770,000 a year earlier, reflecting an increase of about 7.9% [36]. - Total Tier 1 capital is reported at $692,837,000 as of December 31, 2025, up from $642,969,000 as of December 31, 2024, indicating a growth of approximately 7.8% [36]. - Total capital is $772,345,000 as of December 31, 2025, compared to $727,592,000 as of December 31, 2024, marking an increase of approximately 6.1% [36]. Operational Insights - The Company repurchased 651,804 shares of common stock at an average price of $72.07, with 4,286,012 shares remaining available for repurchase [6]. - The Company managed $1.05 billion of customer deposits at other banks, with a sequential quarter increase of $835.5 million [32]. - The Company will host a conference call on January 22, 2026, at 4:00 p.m. Central Time to discuss earnings and provide updates [37]. - The Quarterly Investor Update slide presentation will be available on the Company's Investor Relations website, providing additional insights into financial performance [38]. - The company maintained a full-time equivalent employee count of 1,170, consistent with the previous quarter, indicating stable operational capacity [52]. Future Outlook - Pathward Financial, Inc. aims to enhance financial inclusion through its Partner Solutions and Commercial Finance business lines, focusing on increasing financial availability and choice [39]. - Forward-looking statements indicate expectations for fiscal 2026, including performance goals and strategic initiatives aimed at revenue growth and improved operational efficiency [42].