Pathward, BankUnited shares fall as Fed rate-cut outlook shifts to 2026

Shares of Pathward Financial (CASH) and BankUnited (BKU) fell in afternoon trading May 14, 2026, after major Wall Street banks pushed back expectations for Federal Reserve rate cuts to December 2026, citing stronger jobs and inflation data. The revised outlook lifted Treasury yields and reduced expectations for a near-term lending demand boost. Bank of America analysts said the risk of another Fed rate increase may be underpriced, reinforcing concerns that higher rates could persist longer than investors expected. Pathward recently reported fiscal first-quarter 2026 revenue of $276.3 million, above estimates but down 1.3% from a year earlier. Net interest income fell 3.8% to $125.1 million, missing expectations, while tangible book value per share of $25.41 also came in below forecasts. The stock was up 16.5% year to date at $83.76, but remained 16.2% below its 52-week high of $99.93.