CEO Brett Pharr said the agreement continues a long-standing partnership as the company maintains its existing strategy and expands programs across industries and products. He said no partner accounts for more than 5% of Pathward’s revenue.
Fourth-quarter momentum came from commercial finance and payments-related fees. CFO Gregory Sigrist said commercial finance generated nearly $6 million in additional net interest income, while card and deposit fee income rose by almost $8 million and helped drive double-digit percentage growth in noninterest income. Loans and leases grew 9% through September 30, and adjusted net interest margin improved to 5.
Credit remained the main concern in analyst questions. Management said the elevated losses were concentrated in previously identified credits and reported no evidence of broader problems spreading across the portfolio. Pathward continues to work through renewable-energy construction credits and expects credit conditions to normalize in 2027 as nonperforming loans are reduced.
Management also said it is investing in technology, risk controls and compliance to support banking-as-a-service and embedded-finance programs, while cautioning that new issuing programs typically take longer to scale. The 2027 outlook assumes no additional rate changes during the fiscal year.