Pathward

Overview

What stands out about Pathward?

Its largest one-quarter change in total assets since Q1 2016 was +50.1% between Q1 2020 and Q2 2020, a quarter with no merger or acquisition in the FDIC history. Against its six size peers, its noncurrent loans to total loans stands out most: 5.28% at Q2 2026, above the peer median of 0.68%. By efficiency ratio it moved from 159th to 293rd among 500 banks between Q1 2026 and Q2 2026 (1 = lowest). Its noncurrent loans to total loans of 5.28% at Q2 2026 is among the highest 5% of the 500 banks reporting it, a loan-quality outlier (rank 497 of 500, 1 = lowest).

How large is Pathward?

At Q2 2026 the bank held $7.3 bn of assets. Deposits were $6.0 bn and net loans and leases $5.1 bn, a loan-to-deposit ratio of 85.59%. Securities of $1.3 bn made up 17.1% of assets.

Total assets rose 138.1% between Q1 2016 and Q2 2026, from $3.1 bn.

How much of its funding is uninsured?

An estimated 12.74% of domestic deposits were above the FDIC insurance limit at Q2 2026, +1.51 pp from the previous quarter and +1.12 pp from a year earlier. That share ranks 459th among 500 banks reporting this metric (1 = highest).

Key facts, Q2 2026

US rank: rank among the banks in our coverage reporting each metric, 1 = highest unless marked 1 = lowest.

The common equity tier 1 (CET1) ratio was 12.05% at Q2 2026, -1.37 pp from a year earlier. Since Q1 2016 it has ranged from 11.49% (Q4 2023) to 21.95% (Q3 2016). At Q2 2026 the tier 1 leverage ratio was 9.91% and the total risk-based capital ratio 13.31%. The median CET1 ratio of the size peers listed below was 13.39% at Q2 2026.

Held-to-maturity securities had an unrealized loss of $3.8 mn at Q2 2026, measured as fair value minus amortized cost, equal to 0.4% of bank equity capital. The loss narrowed by $675,000 from a year earlier. The largest unrealized loss on these securities was $11.2 mn at Q3 2018. Available-for-sale securities showed an unrealized loss of $184.0 mn at Q2 2026; the loss narrowed by $26.9 mn from a year earlier.

Return on equity was 23.28% for the year to Q2 2026, annualized, with a return on assets of 2.81% and a net interest margin of 7.41%. The margin was -0.79 pp from a year earlier. The efficiency ratio, noninterest expense as a share of revenue as the FDIC defines it, was 57.97%. Net income for the year to Q2 2026 was $103.1 mn, down 13.8% on the same period a year earlier. The median return on equity of its size peers was 11.12% for the same period.

Noncurrent loans, those 90 days or more past due or no longer accruing interest, were 5.28% of total loans at Q2 2026. Net charge-offs for the year to date were 0.86% of average loans, annualized.

1. 1 August 2018. Absorbed Crestmark Bank (FDIC certificate 34353).

Large one-quarter moves

• Total assets changed by +27.1% in the quarter to 2016-09-30, with no FDIC structure event in that quarter.
• Total assets changed by +30.2% in the quarter to 2017-09-30, with no FDIC structure event in that quarter.
• Total assets changed by +40.1% in the quarter to 2018-09-30: Merger -Without Assistance; Participated in Absorbtion/Consolidation/Merger: acquired from Crestmark Bank.
• Total assets changed by +50.1% in the quarter to 2020-06-30, with no FDIC structure event in that quarter.
• Total assets changed by -30.6% in the quarter to 2020-09-30, with no FDIC structure event in that quarter.
• Total assets changed by +34.7% in the quarter to 2021-03-31, with no FDIC structure event in that quarter.
• Total assets changed by -28.0% in the quarter to 2021-06-30, with no FDIC structure event in that quarter.

Source: FDIC BankFind API, institution history. Moves of more than 25% in one quarter are checked against that history in our review.