Pathward
| Company type | Public |
|---|---|
| Industry | Banking and financial services |
| Predecessor | MetaBank |
| Founded | 1954 |
| Founder | Stanley H. Haahr |
| Headquarters | Sioux Falls , United States |
Area served | United States |
Key people | J. Tyler Haahr (Chairman), Brett Pharr (CEO), Anthony Sharett (President) |
| Products | Banking-as-a-service, commercial financing, tax-related services, prepaid cards, insurance premium financing, tax refund-transfer software |
| Parent | Meta Financial Group |
Pathward Financial, Inc. (previously known as MetaBank) is an American banking and financial services corporation. The company underwent a rebranding in 2022 following the sale of the "Meta" trademark by its parent organization, Meta Financial Group, to Meta Platforms.
The institution provides services in several core areas within banking and payments, including banking-as-a-service, commercial financing, and tax-related services.
Origins
The institution began as Storm Lake Savings and Loan Association in 1954, founded by Stanley H. Haahr, who remained on the Board until 1990 and held the position of chairman from 1981 to 1990. In 1970, the bank purchased the Bradford Hotel property located in Storm Lake and completed its headquarters there by 1972. By 1993, it had been renamed First Federal Savings Bank of the Midwest and operated as a subsidiary of First Midwest Financial, Inc. On September 20, 1993, First Midwest Financial launched an initial public offering of 1.9 million shares at $10 each, with its stock listed on the NASDAQ under the ticker “CASH.”
Acquisitions
In 1994, First Federal Savings Bank of the Midwest expanded by acquiring Brookings Federal Bank in South Dakota, which then functioned as one of its divisions. Two years later, in 1996, it purchased Iowa Savings Bank in Des Moines and incorporated it similarly.
Pathward broadened its commercial banking operations with the acquisition of Crestmark Bank in January 2018.
In March 2020, the company divested its community banking division to Central Bank based in Storm Lake, Iowa, allowing Pathward to concentrate more on specialized financial service sectors.
Growth and Development
First Federal established its initial presence in Sioux Falls via a temporary branch on September 6, 2000. The Meta Payment Systems (MPS) unit was created in Sioux Falls in 2004. By 2005, all First Federal bank branches were unified under the MetaBank brand, serving four main regions: Central Iowa; Northwest Iowa; Brookings; and Sioux Falls.
In 2009, MetaBank introduced a new suite of retail products. During this period, MPS emerged as a leading issuer of rebate and gift cards both nationally and internationally and became a prominent issuer of prepaid cards for Visa, MasterCard, and Discover.
Starting in 2014, MetaBank pursued growth through acquisitions beginning with AFS/IBEX Financial Services Inc., an insurance premium financing firm headquartered in Dallas, Texas. The following year saw the acquisition of Refund Advantage, a tax refund-transfer software provider based in Louisville, Kentucky.
In 2016, MetaBank announced two additional acquisitions: EPS Financial from Easton, Pennsylvania, specializing in tax-related financial transaction services; and Specialty Consumer Services (SCS), based in Hurst, Texas, which offers consumer tax advance solutions through underwriting and loan management platforms.
In January 2021, Pathward distributed debit cards valued up to $600 to millions across the United States as part of the second round of COVID-19 Economic Impact Payments authorized by the Consolidated Appropriations Act. For this program, MetaBank acted as a financial agent for the U.S. Treasury.
Unauthorized Practices and Penalties
Following an inquiry by the New York Attorney General, Pathward Bank consented to disburse approximately $700,000 in reimbursements and fines after being found to have improperly frozen customer accounts and redirected funds to debt collection agencies.
The bank collaborated fully with the investigation and initiated corrective measures in the previous year. A company representative remarked, “We are revising our protocols and are confident that such issues will not recur.” Pathward will reimburse around 88 impacted New York residents a total of $79,664 plus accrued interest and remit a $627,000 fine for engaging in “unlawful and misleading practices.”
Executive Management
James S. Haahr assumed the roles of President and CEO at Meta Financial Group, Inc. in 1993. He was succeeded by J. Tyler Haahr in 2005, who also took on the chairman position in 2011. Both leaders are descendants of the founder, Stanley Haahr.
Brad Hanson served as the head of Meta Payment Systems from its founding in 2004 and was appointed President of both Meta Financial Group and MetaBank in 2013. Upon his retirement in 2021, Brett Pharr was named CEO, with Anthony Sharett stepping into the role of President.
Glen Herrick joined MetaBank as Executive Vice President and Chief Financial Officer for both Meta Financial Group and MetaBank in 2013. He retired in 2023, with Greg Sigrist succeeding him.
Nadia Dombrowski became Executive Vice President and Chief Legal Officer at MetaBank in 2022, later taking on additional responsibilities as Chief Legal and Administrative Officer.
Charles Ingram joined the company in 2020 as Executive Vice President and Chief Information Officer; his title was updated in 2021 to Executive Vice President, Chief Technology and Product Officer.
Trademark Sale and Corporate Rebranding
In December 2021, Meta Financial Group divested its "Meta" trademark to Facebook’s parent firm (now Meta Platforms) for $60 million, agreeing to discontinue use of the trademark within one year. The company subsequently announced its rebranding as Pathward in March 2022.
Offices and Business Units
Pathward’s headquarters is located in Sioux Falls, South Dakota. Its Insurance Premium Finance division operates out of Dallas, Texas, with a secondary office situated in Newport Beach, California. Refund Advantage is based in Louisville, Kentucky, EPS Financial is located in Easton, Pennsylvania, while Specialty Consumer Services (SCS) maintains operations in Hurst, Texas.
The Insurance Premium Finance division provides short-term secured loans through independent insurance agencies to facilitate commercial property, casualty, and liability insurance acquisitions.
Refund Advantage develops tax refund-transfer software designed for Electronic Return Originators (EROs) and their clients.
EPS Financial offers a range of refund settlement solutions, prepaid payroll card products, and merchant services.
Specialty Consumer Services was a pioneer in offering no-fee consumer tax advance products utilizing proprietary underwriting methods and loan management technology.
Recognition and Distinctions
Pathward achieved Great Place to Work® certification for both 2023 and 2024. Forbes recognized Pathward among its 2024 rankings of America's Best Banks. Nacha honored Pathward as one of the Top 50 financial institutions for ACH payment processing, while Keefe, Bruyette & Woods included it on the KBW Bank Honor Roll.
In 2023, Pathward, N.A., was listed among Investor's Business Daily's 100 Best ESG Companies. Newsweek acknowledged Pathward as one of America’s Greatest Workplaces across categories including overall performance, women’s inclusion, diversity initiatives, and family-friendly policies.
Pathward was featured in Sandler O’Neill and Partners’ "Bank and Thrift Sm-All Stars – Class of 2012," highlighting leading small-cap banks. In 2013, MetaBank ranked fifth nationally among mid-size banks according to the American Banking Association Journal and appeared on American Banker magazine’s Top 25 community banks lists for both 2013 and 2014.
American Banker named Pathward a top-performing bank within the $1 billion to $10 billion asset category in 2015. That same year saw the AFS/IBEX division become the exclusive premium finance provider for the Independent Insurance Agents of Texas (IIAT). In 2016, Bank Director Magazine designated MetaBank as the fastest-growing bank among approximately 7,000 nationwide institutions; additionally, Pathward earned an investment grade rating from Kroll Bond Rating Agency. EPS was honored as Lehigh Valley Business’s "Business of the Year (25–100 employees)" in 2016.
Brad Hanson, cofounder of Meta Payment Systems and former Pathward President, received Paybefore’s Industry Achievement Award in 2009. In 2015, John Hagy—Pathward’s Senior Vice President and Chief Legal Officer—was recognized among Paybefore’s Top 10 Payments Lawyers.