What changed in this filing

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Item 1. Financial Statements

2025-09-10 compared with 2025-02-06 · 295 added, 158 removed, 982 unchanged (32% of the section changed)

3 unchanged sentences

Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data) December 31, 2024 September 30, 2024

(Dollars in thousands, except per share data) March 31, 2025 September 30, 2024

ASSETS (Unaudited) (Audited)

20 unchanged sentences

STOCKHOLDERS’ EQUITY

Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2024 and September 30, 2024, respectively

Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at March 31, 2025 and September 30, 2024, respectively

Common stock, $ 0.01 par value;

90,000,000 shares authorized, 24,189,631 and 24,851,122 shares issued, 24,119,416 and 24,847,353 shares outstanding at December 31, 2024 and September 30, 2024, respectively

90,000,000 shares authorized, 23,629,154 and 24,851,122 shares issued, 23,558,939 and 24,847,353 shares outstanding at March 31, 2025 and September 30, 2024, respectively

Common stock, Nonvoting, $ 0.01 par value;

3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2024 and September 30, 2024, respectively

3,000,000 shares authorized, no shares issued, none outstanding at March 31, 2025 and September 30, 2024, respectively

Additional paid-in capital 643,888 638,803

1 unchanged sentence

Accumulated other comprehensive loss ( 166,311 ) ( 153,394 )

Treasury stock, at cost, 70,215 and 3,769 common shares at December 31, 2024 and September 30, 2024, respectively

Treasury stock, at cost, 70,215 and 3,769 common shares at March 31, 2025 and September 30, 2024, respectively

( 4,882 ) ( 249 )

7 unchanged sentences

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands, except per share data) 2025 2024 2025 2024

(As Restated) (As Restated)

Interest and dividend income:

6 unchanged sentences

FHLB advances and other borrowings 1,639 1,775 3,971 4,111

5,725 8,460 8,832 14,322

Net interest income 136,279 128,634 261,528 247,561

3 unchanged sentences

Refund transfer product fees 32,663 28,942 33,073 29,364

Refund advance fee income 459 111

Refund advance and other tax fee income 48,585 43,200 49,110 43,311

Card and deposit fees 30,793 35,344 59,859 66,094

1 unchanged sentence

(Loss) on sale of securities ( 7,228 ) — ( 22,899 ) —

Gain on divestitures 16,404 —

Gain (loss) on sale of loans and leases 4,378 ( 31 )

Gain (loss) on divestitures ( 1,360 ) — 15,044 —

Secondary market revenue 15,378 1,401 19,755 1,370

Gain on sale of other 627 294 1,614 3,165

10 unchanged sentences

Intangible amortization 1,082 1,240 1,894 2,224

Impairment expense 1,514 2,013 1,514 2,013

Other expense 19,733 13,183 37,612 27,655

11 unchanged sentences

AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Three Months Ended December 31,

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands) 2025 2024 2025 2024

(As Restated) (As Restated)

Net income before noncontrolling interest $ 75,194 $ 70,167 $ 105,359 $ 105,323

1 unchanged sentence

Change in net unrealized gain (loss) on debt securities 25,517 ( 23,414 ) ( 36,823 ) 65,121

Net loss realized on investment securities 15,671 —

Net loss realized on debt securities 7,228 — 22,899 —

32,745 ( 23,414 ) ( 13,924 ) 65,121

2 unchanged sentences

Total other comprehensive income (loss) 24,606 ( 18,137 ) ( 12,917 ) 48,873

Total comprehensive income (loss) ( 5,897 ) 94,924

Total comprehensive income 99,800 52,030 92,442 154,196

Total comprehensive income attributable to noncontrolling interest 237 249 436 506

Comprehensive income (loss) attributable to parent $ ( 6,096 ) $ 94,667

Comprehensive income attributable to parent $ 99,563 $ 51,781 $ 92,006 $ 153,690

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

Three Months Ended

(Dollars in thousands, except per share data) Common

8 unchanged sentences

Stockholders’

Three Months Ended December 31, 2024

Balance, September 30, 2024

Balance, December 31, 2024 (As Restated) $ 241 $ 640,422 $ 313,446 $ ( 190,917 ) $ ( 4,882 ) $ 758,310 $ ( 756 ) $ 757,554

Cash dividends declared on common stock ($ 0.05 per share)

— — ( 1,190 ) — — ( 1,190 ) — ( 1,190 )

Repurchases of common stock ( 6 ) 6 ( 45,438 ) — — ( 45,438 ) — ( 45,438 )

Stock compensation — 3,460 — — — 3,460 — 3,460

Total other comprehensive income — — — 24,606 — 24,606 — 24,606

Net income — — 74,957 — — 74,957 237 75,194

Net distribution to noncontrolling interest — — — — — — ( 139 ) ( 139 )

Balance, March 31, 2025

$ 235 $ 643,888 $ 341,775 $ ( 166,311 ) $ ( 4,882 ) $ 814,705 $ ( 658 ) $ 814,047

Balance, December 31, 2023 (As Restated) $ 260 $ 629,737 $ 268,427 $ ( 188,433 ) $ ( 5,235 ) $ 704,756 $ ( 510 ) $ 704,246

Cash dividends declared on common stock ($ 0.05 per share)

— — ( 1,267 ) — — ( 1,267 ) — ( 1,267 )

Issuance of common stock due to restricted stock 2 — — — — 2 — 2

Repurchases of common stock ( 8 ) 8 ( 39,500 ) — ( 946 ) ( 40,446 ) — ( 40,446 )

1 unchanged sentence

Total other comprehensive loss — — — ( 18,137 ) — ( 18,137 ) — ( 18,137 )

Net income (Restated) — — 69,918 — — 69,918 249 70,167

Net distribution to noncontrolling interest — — — — — — ( 159 ) ( 159 )

Balance, March 31, 2024 (As Restated)

$ 254 $ 634,415 $ 297,578 $ ( 206,570 ) $ ( 6,181 ) $ 719,496 $ ( 420 ) $ 719,076

Six Months Ended

(Dollars in thousands, except per share data) Common

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Treasury

Stock Total Pathward Financial, Inc.

Stockholders’

Equity Noncontrolling interest Total

Stockholders’

Balance, September 30, 2024 (As Restated)

$ 248 $ 638,803 $ 337,058 $ ( 153,394 ) $ ( 249 ) $ 822,466 $ ( 277 ) $ 822,189

Cash dividends declared on common stock ($ 0.10 per share)

— — ( 2,392 ) — — ( 2,392 ) — ( 2,392 )

Repurchases of common stock ( 13 ) 13 ( 97,814 ) — ( 4,633 ) ( 102,447 ) — ( 102,447 )

Stock compensation — 5,072 — — — 5,072 — 5,072

Total other comprehensive loss — — — ( 12,917 ) — ( 12,917 ) — ( 12,917 )

Net income — — 104,923 — — 104,923 436 105,359

Net distribution to noncontrolling interest — — — — — — ( 817 ) ( 817 )

Balance, December 31, 2024

Balance, March 31, 2025

$ 235 $ 643,888 $ 341,775 $ ( 166,311 ) $ ( 4,882 ) $ 814,705 $ ( 658 ) $ 814,047

Three Months Ended December 31, 2023

Balance, September 30, 2023

Balance, September 30, 2023 (As Restated)

$ 262 $ 628,500 $ 246,377 $ ( 255,443 ) $ ( 344 ) $ 619,352 $ ( 1,005 ) $ 618,347

6 unchanged sentences

Joint venture membership interest divestiture — — ( 523 ) — — ( 523 ) — ( 523 )

Net income — — 27,657 — — 27,657 257 27,914

Net income (Restated) — — 104,817 — — 104,817 506 105,323

Net distribution to noncontrolling interest — — — — — — 79 79

Balance, December 31, 2023

Balance, March 31, 2024 (As Restated)

$ 254 $ 634,415 $ 297,578 $ ( 206,570 ) $ ( 6,181 ) $ 719,496 $ ( 420 ) $ 719,076

3 unchanged sentences

Condensed Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended December 31,

Six Months Ended March 31,

(Dollars in thousands) 2025 2024

Cash flows from operating activities:

(As Restated)

Net income before noncontrolling interest $ 105,359 $ 105,323

6 unchanged sentences

Net change in loans held for sale 266,707 17,924

Net realized loss (gain) on securities available for sale 22,899 —

Net realized (gain) loss on loans held for sale ( 19,755 ) ( 1,370 )

Net realized loss on securities available for sale 15,671 —

Net realized (gain) on divestitures ( 16,404 ) —

Net realized (gain) loss on divestitures ( 15,044 ) —

Net realized (gain) on other ( 1,614 ) ( 3,165 )

Impairment on rental equipment 1,514 2,013

Net change in accrued interest receivable ( 5,696 ) ( 7,012 )

2 unchanged sentences

Stock compensation 5,072 5,904

Net cash provided by (used in) operating activities ( 76,615 ) 22,444

Net cash provided by operating activities 116,593 232,510

Cash flows from investing activities:

13 unchanged sentences

Proceeds from sale of other assets 407 4,091

Proceeds from loans held for sale previously classified as portfolio loans 146,158 —

Net cash provided by (used in) investing activities 507,816 1,995

7 unchanged sentences

Investment by (distributions to) noncontrolling interest ( 817 ) 79

Net cash provided by financing activities 220,052 316,611

Net cash provided by (used in) financing activities ( 526,458 ) ( 262,236 )

Effect of exchange rate changes on cash ( 2,039 ) 39

2 unchanged sentences

Cash and cash equivalents at end of fiscal period $ 254,249 $ 347,888

Three Months Ended December 31,

Six Months Ended March 31,

(Dollars in thousands) 2025 2024

Supplemental disclosure of cash flow information:

Supplemental disclosure of cash flow information (As Restated)

Cash paid during the period for:

4 unchanged sentences

Held for sale to loans and leases $ 22,686 $ —

Loans and leases to held for sale 130,011 —

Loans and leases to rental equipment 2,588 2,538

3 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

PATHWARD FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

BASIS OF PRESENTATION

The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2024 included in Pathward Financial, Inc.’s ("Pathward Financial" or the “Company") Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 26, 2024.

1 thereto, filed with the Securities and Exchange Commission ("SEC") on August 29, 2025 (the "Form 10-K/A").

Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

2 unchanged sentences

Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented.

The results of the three months ended December 31, 2024 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2025.

The results of the three and six months ended March 31, 2025 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2025.

Certain prior fiscal year amounts have been reclassified to conform to the current year financial statement presentation.

These reclassifications did not impact previously reported net income, comprehensive income or the statement of financial condition.

Additionally, the Company began using "Secondary Market Revenue" on the Condensed Consolidated Statement of Operations for the interim period ending March 31, 2025 versus the previous caption of "Gain (Loss) on Sale of Loans and Leases".

This line item exclusively comprises gains or losses realized from the sale of loans and leases, including any adjustments to record loans held for sale at the lower of amortized cost basis or fair value in accordance with ASC 860-20-50-5.

There were no reclassifications of fiscal year amounts or prior period amounts as a result of this change in financial statement caption description.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

17 unchanged sentences

The amendments in this ASU will be effective for the Company beginning October 1, 2027.

This ASU impacts disclosure only, and therefore will not impact our consolidated financial statements.

This ASU impacts disclosure only, and therefore will not impact our

consolidated financial statements.

The Company is currently evaluating the impact of this ASU on required annual and interim disclosures.

2 unchanged sentences

The Company has summarized the results of the transaction as follows:

(Dollars in thousands)

(Dollars in thousands) December 31, 2024 Settlement

Adjustments March 31, 2025

Assets Purchased and Liabilities Assumed

9 unchanged sentences

Consideration due 9,703 ( 9,703 ) —

Total purchase price 612,993

Purchase price 612,993 ( 1,480 ) 611,513

Premium on transaction 31,200 — 31,200

3 unchanged sentences

Building lease derecognition 471 — 471

Deferred loan origination cost derecognition — ( 1,360 ) ( 1,360 )

Transaction costs ( 3,059 ) — ( 3,059 )

1 unchanged sentence

Gain on divestitures $ 16,404 $ ( 1,360 ) $ 15,044

The sale resulted in a gain of $ 16.4 million before tax that was recognized within noninterest income on the Company's Condensed Consolidated Statements of Operations.

After final settlement adjustments, the sale resulted in an overall gain of $ 15.0 million before tax that was recognized within noninterest income on the Company's Condensed Consolidated Statements of Operations.

The settlement adjustments during the three months ended March 31, 2025 resulted in a $ 1.4 million decrease of the previously recognized gain as of December 31, 2024 as a result of certain deferred loan origination costs that were excluded from the final settlement.

Goodwill and Intangible Assets and Note 9.

3 unchanged sentences

Debt Securities AFS

At December 31, 2024

March 31, 2025

Corporate securities $ 25,000 $ — $ ( 3,875 ) $ 21,125

5 unchanged sentences

Total debt securities AFS $ 1,628,521 $ 397 $ ( 217,398 ) $ 1,411,520

At September 30, 2024

September 30, 2024

Corporate securities $ 25,000 $ — $ ( 5,250 ) $ 19,750

6 unchanged sentences

Debt Securities HTM

At December 31, 2024

March 31, 2025

Non-bank qualified obligations of states and political subdivisions $ 29,350 $ — $ ( 4,613 ) $ 24,737

1 unchanged sentence

Total debt securities HTM $ 31,335 $ — $ ( 4,843 ) $ 26,492

At September 30, 2024

September 30, 2024

Non-bank qualified obligations of states and political subdivisions $ 31,060 $ — $ ( 2,668 ) $ 28,392

8 unchanged sentences

Debt Securities AFS

At December 31, 2024

March 31, 2025

Corporate securities $ — $ — $ 21,125 $ ( 3,875 ) $ 21,125 $ ( 3,875 )

4 unchanged sentences

Total debt securities AFS $ 50,629 $ ( 436 ) $ 1,300,620 $ ( 216,962 ) $ 1,351,249 $ ( 217,398 )

At September 30, 2024

September 30, 2024

Corporate securities $ — $ — $ 19,750 $ ( 5,250 ) $ 19,750 $ ( 5,250 )

6 unchanged sentences

Debt Securities HTM

At December 31, 2024

March 31, 2025

Non-bank qualified obligations of states and political subdivisions $ — $ — $ 24,737 $ ( 4,613 ) $ 24,737 $ ( 4,613 )

1 unchanged sentence

Total debt securities HTM $ — $ — $ 26,492 $ ( 4,843 ) $ 26,492 $ ( 4,843 )

At September 30, 2024

September 30, 2024

Non-bank qualified obligations of states and political subdivisions $ — $ — $ 28,392 $ ( 2,668 ) $ 28,392 $ ( 2,668 )

1 unchanged sentence

Total debt securities HTM $ — $ — $ 30,236 $ ( 2,856 ) $ 30,236 $ ( 2,856 )

The decrease in the fair value of investment securities balances when comparing December 31, 2024 to September 30, 2024 was primarily driven by the sale of $ 160.1 million debt securities AFS and principal pay downs during the three months.

The sale of debt securities AFS in the current period stemmed from the close of the commercial insurance premium finance business sale and associated gain that was recognized.

Individual securities were identified for sale upon close of the transaction.

At December 31, 2024, there were 163 debt securities AFS in an unrealized loss position.

The decrease in the fair value of investment securities balances when comparing March 31, 2025 to September 30, 2024 was primarily driven by the sale of $ 217.9 million debt securities AFS and principal pay downs during the six months.

The sale of debt securities AFS in the first quarter of fiscal 2025 stemmed from the decision to offset the gain on the sale of the commercial insurance premium finance business.

The sale of debt securities AFS in the second quarter of fiscal 2025 stemmed from the decision to offset the gain on the sale of the transportation portfolio within working capital.

Individual securities were identified for sale upon close of the transactions in order to reposition the debt securities AFS portfolio.

At March 31, 2025, there were 152 debt securities AFS in an unrealized loss position.

Management assessed each investment security with unrealized losses for credit loss by evaluating qualitative factors, including materiality of loss position as a percentage of book value, credit ratings, outstanding principal and interest payments, and changes in the underlying implicit or explicit guarantee of the security, and determined all unrealized losses on these securities were due to adverse market conditions and/or change in interest rates versus credit loss.

As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost.

At December 31, 2024, there was no allowance for credit losses ("ACL") for debt securities AFS.

At March 31, 2025, there was no allowance for credit losses ("ACL") for debt securities AFS.

The amortized cost and fair value of debt securities by contractual maturity are shown below.

4 unchanged sentences

However, certain prepayment penalties may apply.

(Dollars in thousands) At December 31, 2024 At September 30, 2024

(Dollars in thousands) March 31, 2025 September 30, 2024

Debt Securities AFS Amortized Cost Fair

15 unchanged sentences

One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System.

FRB of Minneapolis stock held by the Bank totaled $ 19.7 million at December 31, 2024 and September 30, 2024.

FRB of Minneapolis stock held by the Bank totaled $ 19.7 million at March 31, 2025 and September 30, 2024.

These equity securities are 'restricted' in that they can only be owned by member banks.

5 unchanged sentences

The FHLB stock is carried at cost since it is generally redeemable at par value.

The carrying value of the stock held at the FHLB was $ 4.8 million and $ 16.3 million at December 31, 2024 and at September 30, 2024, respectively.

The carrying value of the stock held at the FHLB was $ 4.6 million and $ 16.3 million at March 31, 2025 and at September 30, 2024, respectively.

These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par.

1 unchanged sentence

Equity Securities.

The Company held $ 3.6 million and $ 3.3 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2024 and September 30, 2024, respectively.

The Company recognized $ 0.1 million unrealized losses and $ 0.1 million unrealized gains on marketable equity securities during the three months ended December 31, 2024 and 2023, respectively.

No such securities were sold during the three months ended December 31, 2024.

Non-marketable equity securities with a readily determinable fair value totaled $ 11.9 million and $ 11.8 million at December 31, 2024 and September 30, 2024, respectively.

The Company held $ 3.6 million and $ 3.3 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2025 and September 30, 2024, respectively.

The Company recognized $ 0.1 million unrealized losses and no unrealized gains on marketable equity securities during the six months ended March 31, 2025 and 2024, respectively.

No such securities were sold during the six months ended March 31, 2025.

Non-marketable equity securities with a readily determinable fair value totaled $ 12.8 million and $ 11.8 million at March 31, 2025 and September 30, 2024, respectively.

These securities are held within other assets on the Condensed Consolidated Statements of Financial Condition.

The Company recognized $ 0.3 million in unrealized gains during the three months ended December 31, 2024 and 2023.

No such securities were sold during the three months ended December 31, 2024.

Non-marketable equity securities without readily determinable fair value totaled $ 14.1 million and $ 13.6 million at December 31, 2024 and September 30, 2024, respectively, reflecting Company ownership interests in other entities through its Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of the Bank that was formed in 2017 for the purpose of making minority equity investments and other corporate investments.

During the quarter ended December 31, 2024, the Company recognized a $ 0.4 million gain on Visa shares, which is included in gain on sale of other on the Condensed Consolidated Statements of Operations, carried at a cost basis of $0.

There was no additional such security sold during the three months ended December 31, 2024.

The Company recognized $ 0.8 million and $ 0.4 million in unrealized gains during the six months ended March 31, 2025 and 2024, respectively.

No such securities were sold during the six months ended March 31, 2025.

Non-marketable equity securities without readily determinable fair value totaled $ 14.7 million and $ 13.6 million at March 31, 2025 and September 30, 2024, respectively, reflecting Company ownership interests in other entities through its Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of the Bank that was formed in 2017 for the purpose of making minority equity investments and other corporate investments.

During the six months ended March 31, 2025, the Company recognized a $ 0.4 million gain on Visa shares which were carried at a cost basis of $0.

This gain was recognized within the gain on sale of other on the Condensed Consolidated Statements of Operations.

There were no additional such securities sold during the six months ended March 31, 2025.

Equity Securities Impairment.

1 unchanged sentence

All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis.

The Company recognized no impairment for such investments for the three months ended December 31, 2024 and 2023.

The Company recognized no impairment for such investments for the six months ended March 31, 2025 and 2024.

LOANS AND LEASES, NET

Loans and leases consist of the following:

(Dollars in thousands) December 31, 2024 September 30, 2024

(Dollars in thousands) March 31, 2025 September 30, 2024

Term lending $ 1,766,432 $ 1,554,641

13 unchanged sentences

Total loans and leases, net $ 4,361,980 $ 4,003,430

During the three months ended December 31, 2024 and 2023, the Company originated $ 853.1 million and $ 631.9 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $ 618.4 million and a $ 4.4 million gain on sale during the three months ended December 31, 2024.

The Company sold held for sale loans resulting in proceeds of $ 626.3 million and a nominal gain on sale during the three months ended December 31, 2023.

During the six months ended March 31, 2025 and 2024, the Company originated $ 1.38 billion and $ 933.8 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $ 1.15 billion and a $ 19.8 million gain on sale during the six months ended March 31, 2025.

The Company sold held for sale loans resulting in proceeds of $ 969.0 million and a $ 1.4 million gain on sale during the six months ended March 31, 2024.

Gains and losses from the sale of loans and leases are included in secondary market revenue on the Condensed Consolidated Statements of Operations.

Divestitures to the Condensed Consolidated Financial Statements for further information on the sale of the Company's commercial insurance premium finance business.

Loans purchased and sold by portfolio segment, including participation interests, were as follows:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands) 2025 2024 2025 2024

10 unchanged sentences

The net investment in direct financing and sales-type leases was comprised of the following:

(Dollars in thousands) December 31, 2024 September 30, 2024

(Dollars in thousands) March 31, 2025 September 30, 2024

Minimum lease payments receivable $ 145,382 $ 162,757

4 unchanged sentences

The components of total lease income were as follows:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands) 2025 2024 2025 2024

3 unchanged sentences

Lease income from operating lease payments 12,930 13,605 26,379 26,860

1,139 869 2,446 1,593

Total leasing and equipment finance noninterest income 14,069 14,474 28,825 28,453

1 unchanged sentence

(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at December 31, 2024 were as follows:

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at March 31, 2025 were as follows:

(Dollars in thousands)

3 unchanged sentences

Third-party residual value guarantees —

Total carrying amount of direct financing and sales-type leases $ 147,969

The Company did not record any contingent rental income from direct financing and sales-type leases in the three months ended December 31, 2024.

A number of factors that affected the economic environment in 2023 continued throughout 2024 including geopolitical conflict, supply chain disruptions, inflation, and increased interest rates, with the Federal Reserve beginning to lower the target federal funds rate at the end of 2024.

The 2023 bank failures that were brought on by, among other things, rising interest rates, deposit outflows and liquidity crises also continued to impact the banking industry.

Total carrying amount of minimum lease payments for direct financing and sales-type leases $ 145,382

The Company did not record any contingent rental income from direct financing and sales-type leases in the six months ended March 31, 2025.

A number of factors that began to affect the economic environment in 2023 have continued into 2025, including economic uncertainty, inflation, increased interest rates, with the Federal Reserve beginning to lower the target federal funds rate at the end of 2024, and geopolitical conflict.

Since early 2025, global markets and the U.S.

economy have also experienced disruption and volatility resulting from tariffs and other policies of the U.S.

administration, which may continue during the remainder of 2025.

Management continues to evaluate the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses and the impact to our customers and businesses as a result of these factors impacting the economy and will refine its estimate as developments occur and more information becomes available.

Activity in the allowance for credit losses by portfolio segment was as follows:

Three Months Ended December 31, 2024

(Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance

Three Months Ended March 31, 2025

Allowance for credit losses:

3 unchanged sentences

Lease financing 881 1,374 ( 1,019 ) 7 1,243

SBA/USDA 3,807 775 ( 609 ) 48 4,021

Other commercial finance 421 ( 37 ) — — 384

Commercial finance 42,561 3,169 ( 8,104 ) 1,205 38,831

Consumer finance 30,361 5,563 ( 6,897 ) 608 29,635

Tax services 790 26,178 — 6,813 33,781

Warehouse finance 625 18 — — 643

Total loans and leases 74,337 34,928 ( 15,001 ) 8,626 102,890

Unfunded commitments (1)

513 338 — — 851

Total $ 74,850 $ 35,266 $ ( 15,001 ) $ 8,626 $ 103,741

(As Restated)

Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance

Three Months Ended March 31, 2024

Allowance for credit losses:

Term lending $ 27,013 $ 6,303 $ ( 5,176 ) $ 487 $ 28,627

Asset-based lending 1,370 ( 254 ) — 99 1,215

Factoring 7,433 ( 623 ) ( 12 ) 16 6,814

Lease financing 4,008 ( 2,547 ) 28 62 1,551

Insurance premium finance 2,123 ( 532 ) ( 295 ) 113 1,409

10 unchanged sentences

(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

Three Months Ended December 31, 2023

(Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance

Six Months Ended March 31, 2025

Allowance for credit losses:

14 unchanged sentences

Total $ 72,460 $ 53,927 $ ( 32,728 ) $ 10,082 $ 103,741

(As Restated)

Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance

Six Months Ended March 31, 2024

Allowance for credit losses:

Term lending $ 25,686 $ 12,125 $ ( 10,297 ) $ 1,113 $ 28,627

Asset-based lending 2,738 ( 1,764 ) — 241 1,215

Factoring 6,566 128 ( 35 ) 155 6,814

Lease financing 3,302 ( 1,781 ) ( 125 ) 155 1,551

Insurance premium finance 2,637 ( 771 ) ( 660 ) 203 1,409

SBA/USDA 2,962 ( 20 ) — — 2,942

Other commercial finance 3,089 ( 1,369 ) — — 1,720

Commercial finance 46,980 6,548 ( 11,117 ) 1,867 44,278

Consumer finance 49,496 3,888 ( 18,924 ) 621 35,081

Tax services 2 26,577 ( 1,145 ) 6,094 31,528

Warehouse finance 377 18 — — 395

Total loans and leases 96,855 37,031 ( 31,186 ) 8,582 111,282

Unfunded commitments (1)

272 471 — — 743

Total $ 97,127 $ 37,502 $ ( 31,186 ) $ 8,582 $ 112,025

(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

Information on loans and leases that are deemed to be collateral dependent and are evaluated individually for the ACL was as follows:

(Dollars in thousands) At December 31, 2024 At September 30, 2024

(Dollars in thousands) March 31, 2025 September 30, 2024

Term lending $ 15,510 $ 15,491

Asset-based lending 783 —

Factoring 1,126 —

Lease financing 4,137 5,300

6 unchanged sentences

Due to the nature of the transactions and significant cash collateral positions, these credits are evaluated individually.

The balance of these pass rated cash collateral loans totaled $ 116.4 million and $ 105.1 million at December 31, 2024 and at September 30, 2024, respectively.

The balance of these pass rated cash collateral loans totaled $ 117.5 million and $ 105.1 million at March 31, 2025 and at September 30, 2024, respectively.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the OCC, to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows:

22 unchanged sentences

Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in its evaluation of the appropriateness of the ACL on these portfolios, and as such, these loans are not included in the asset classification table below.

The outstanding balances of consumer finance loans and tax services loans were $ 280.0 million and $ 45.1 million at December 31, 2024, respectively, and $ 248.8 million and $ 8.8 million at September 30, 2024, respectively.

The outstanding balances of consumer finance loans and tax services loans were $ 246.2 million and $ 56.0 million at March 31, 2025, respectively, and $ 248.8 million and $ 8.8 million at September 30, 2024, respectively.

The amortized cost basis of loans and leases by asset classification and year of origination was as follows:

1 unchanged sentence

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total

At December 31, 2024 2025 2024 2023 2022 2021 Prior

March 31, 2025 2025 2024 2023 2022 2021 Prior

Pass $ 367,175 $ 492,482 $ 320,262 $ 117,245 $ 63,969 $ 47,725 $ — $ 1,408,858

10 unchanged sentences

Substandard — — — — — — 13,777 13,777

Doubtful — — — — — — 72 72

Total — — — — — — 542,483 542,483

44 unchanged sentences

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total

At September 30, 2024 2024 2023 2022 2021 2020 Prior

September 30, 2024 2024 2023 2022 2021 2020 Prior

Pass $ 548,597 $ 398,832 $ 117,180 $ 77,585 $ 42,950 $ 24,166 $ — $ 1,209,310

55 unchanged sentences

Past due loans and leases were as follows:

At December 31, 2024

Accruing and Nonaccruing Loans and Leases Nonperforming Loans and Leases

(Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total

March 31, 2025

Loans held for sale $ — $ — $ — $ — $ 45,767 $ 45,767 $ — $ — $ —

11 unchanged sentences

Total loans and leases $ 46,119 $ 17,702 $ 20,671 $ 84,492 $ 4,431,329 $ 4,515,821 $ 3,757 $ 36,049 $ 39,806

At September 30, 2024

Accruing and Nonaccruing Loans and Leases Nonperforming Loans and Leases

(Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total

September 30, 2024

Loans held for sale $ 2,266 $ 1,361 $ 1,050 $ 4,677 $ 687,011 $ 691,688 $ 1,050 $ — $ 1,050

14 unchanged sentences

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total Nonaccrual with No ACL

At December 31, 2024 2025 2024 2023 2022 2021 Prior

March 31, 2025 2025 2024 2023 2022 2021 Prior

Term lending $ — $ 1,027 $ 3,058 $ 4,559 $ 11,552 $ 2,884 $ — $ 23,080 $ 8,109

7 unchanged sentences

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total Nonaccrual with No ACL

At September 30, 2024 2024 2023 2022 2021 2020 Prior

September 30, 2024 2024 2023 2022 2021 2020 Prior

Term lending $ 9,281 $ 3,433 $ 5,369 $ 1,386 $ 625 $ 3,368 $ — $ 23,462 $ 2,579

7 unchanged sentences

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total

At December 31, 2024 2025 2024 2023 2022 2021 Prior

March 31, 2025 2025 2024 2023 2022 2021 Prior

Term lending $ — $ — $ — $ — $ — $ 7 $ — $ 7

Lease financing — 55 1 — 1 2 — 59

SBA/USDA — — 1,352 — — — — 1,352

5 unchanged sentences

(Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total

At September 30, 2024 2024 2023 2022 2021 2020 Prior

September 30, 2024 2024 2023 2022 2021 2020 Prior

Loans held for sale $ 1,031 $ 19 $ — $ — $ — $ — $ — $ 1,050

9 unchanged sentences

The following table provides the average recorded investment in nonaccrual loans and leases:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands) 2025 2024 2025 2024

6 unchanged sentences

Total loans and leases $ 37,432 $ 28,794 $ 32,475 $ 30,107

The recognized interest income on the Company's nonaccrual loans and leases for the three months ended December 31, 2024 and 2023 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three months ended December 31, 2024 were $ 3.3 million in the commercial finance loan portfolio.

The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2025 and 2024 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2025 were $ 5.9 million and $ 9.1 million, respectively, in the commercial finance loan portfolio.

The types of modifications granted were term extensions.

Modifications made to borrowers experiencing financial difficulty during the three months ended December 31, 2023 were insignificant.

During the three months ended December 31, 2024, the Company had $ 1.4 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default.

As of December 31, 2024, no modifications granted were in the 60-89 days past due category.

During the three months ended December 31, 2023, there were no modifications granted in the previous 12 months in which there was a payment default.

Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2024 were $ 1.6 million in the commercial finance loan portfolio.

During the six months ended March 31, 2025, the Company had $ 6.1 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default.

As of March 31, 2025, no modifications granted during the current six month period were in the 60-89 days past due category.

During the six months ended March 31, 2024, the Company had no modifications granted in the previous 12 months in which there was a payment default.

EARNINGS PER COMMON SHARE ("EPS")

7 unchanged sentences

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands, except per share data) 2025 2024 2025 2024

(As Restated) (As Restated)

Basic income per common share:

16 unchanged sentences

(1) Represents the effect of the assumed vesting of PSUs and restricted stock, as applicable, utilizing the treasury stock method.

(2) Excluded from the computation of diluted earnings per share for the three months ended December 31, 2024 and 2023, respectively, were 100,406 and 207,074 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.

(2) Excluded from the computation of diluted earnings per share for the three months ended March 31, 2025 and 2024, respectively, were 83,665 and 204,877 weighted average share of nonvested restricted stock because their inclusion would be anti-dilutive.

Excluded from the computation of diluted earnings per share for the six months ended March 31, 2025 and 2024, respectively, were 92,172 and 206,060 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.

RENTAL EQUIPMENT, NET

Rental equipment consists of the following:

(Dollars in thousands) December 31, 2024 September 30, 2024

(Dollars in thousands) March 31, 2025 September 30, 2024

Computers and IT networking equipment $ 12,254 $ 21,308

6 unchanged sentences

Net book value $ 202,194 $ 205,339

Future minimum lease payments expected to be received for operating leases at December 31, 2024 were as follows:

Future minimum lease payments expected to be received for operating leases at March 31, 2025 were as follows:

(Dollars in thousands)

3 unchanged sentences

GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $ 297.9 million of goodwill at December 31, 2024.

The Company held a total of $ 297.9 million of goodwill at March 31, 2025.

The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018.

During the three months ended December 31, 2024, the Company closed on the sale of the commercial insurance premium finance business and derecognized the goodwill associated with that reporting unit.

During the six months ended March 31, 2025, the Company closed on the sale of the commercial insurance premium finance business and derecognized the goodwill associated with that reporting unit.

The goodwill was included in the carrying amount of the disposed business.

2 unchanged sentences

(Dollars in thousands) Consumer Commercial Corporate Services/Other Total

At September 30, 2024 $ 87,145 $ 222,360 $ — $ 309,505

September 30, 2024 $ 87,145 $ 222,360 $ — $ 309,505

Divestiture — ( 11,577 ) — ( 11,577 )

At December 31, 2024 $ 87,145 $ 210,783 $ — $ 297,928

At September 30, 2023 $ 87,145 $ 222,360 $ — $ 309,505

At December 31, 2023 $ 87,145 $ 222,360 $ — $ 309,505

The changes in the carrying amount of the Company’s intangible assets during the three months ended December 31, 2024 include certain intangibles disposed of as part of the commercial insurance premium finance business sale.

March 31, 2025 $ 87,145 $ 210,783 $ — $ 297,928

September 30, 2023 $ 87,145 $ 222,360 $ — $ 309,505

March 31, 2024 $ 87,145 $ 222,360 $ — $ 309,505

The changes in the carrying amount of the Company’s intangible assets during the six months ended March 31, 2025 include certain intangibles disposed of as part of the commercial insurance premium finance business sale.

The relevant intangibles were included in the carrying amount of the disposed business.

3 unchanged sentences

All Others (3)

At September 30, 2024 $ 6,422 $ — $ 6,566 $ 3,601 $ 16,589

September 30, 2024 $ 6,422 $ — $ 6,566 $ 3,601 $ 16,589

Amortization during the period ( 538 ) — ( 1,064 ) ( 292 ) ( 1,894 )

Write-offs and disposals during the period — — ( 631 ) — ( 631 )

At December 31, 2024 $ 6,153 $ — $ 5,524 $ 3,469 $ 15,146

March 31, 2025 $ 5,884 $ — $ 4,871 $ 3,309 $ 14,064

Gross carrying amount $ 13,774 $ 301 $ 70,338 $ 7,732 $ 92,145

1 unchanged sentence

Accumulated impairment — — ( 10,918 ) ( 153 ) ( 11,071 )

At December 31, 2024 $ 6,153 $ — $ 5,524 $ 3,469 $ 15,146

At September 30, 2023 $ 7,477 $ — $ 9,110 $ 4,133 $ 20,720

March 31, 2025 $ 5,884 $ — $ 4,871 $ 3,309 $ 14,064

September 30, 2023 $ 7,477 $ — $ 9,110 $ 4,133 $ 20,720

Amortization during the period ( 527 ) — ( 1,431 ) ( 266 ) ( 2,224 )

At December 31, 2023 $ 7,213 $ — $ 8,523 $ 4,000 $ 19,736

March 31, 2024 $ 6,950 $ — $ 7,679 $ 3,867 $ 18,496

Gross carrying amount $ 13,774 $ 301 $ 77,578 $ 7,798 $ 99,451

1 unchanged sentence

Accumulated impairment — — ( 10,918 ) ( 219 ) ( 11,137 )

At December 31, 2023 $ 7,213 $ — $ 8,523 $ 4,000 $ 19,736

March 31, 2024 $ 6,950 $ — $ 7,679 $ 3,867 $ 18,496

(1) Book amortization period of 5 - 15 years.

5 unchanged sentences

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets.

Estimated amortization expense of intangible assets in the remaining nine months of fiscal 2025 and subsequent fiscal years at December 31, 2024 was as follows:

Estimated amortization expense of intangible assets in the remaining six months of fiscal 2025 and subsequent fiscal years at March 31, 2025 was as follows:

(Dollars in thousands)

2 unchanged sentences

Total anticipated intangible amortization $ 14,064

There were no impairments to intangible assets during the three months ended December 31, 2024 and 2023.

There were no impairments to intangible assets during the six months ended March 31, 2025 and 2024.

Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations.

OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES

Operating lease right-of-use ("ROU") assets, included in other assets , were $ 22.6 million and $ 24.4 million at December 31, 2024 and September 30, 2024, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities , were $ 23.8 million and $ 26.0 million at December 31, 2024 and September 30, 2024, respectively.

The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the three months ended December 31, 2024, but also include adjustments for lease assignments that occurred as a result of the commercial insurance premium finance business sale during the quarter.

Operating lease right-of-use ("ROU") assets, included in other assets , were $ 24.1 million and $ 24.4 million at March 31, 2025 and September 30, 2024, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities , were $ 25.2 million and $ 26.0 million at March 31, 2025 and September 30, 2024, respectively.

The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the six months ended March 31, 2025, but also include adjustments for lease assignments that occurred as a result of the commercial insurance premium finance business sale during the first quarter.

Two office locations, Newport Beach, California and Addison, Texas, were included in the sale of the commercial insurance premium finance business and the relevant lease ROU assets and liabilities are no longer reflected in the Company's Condensed Consolidated Financial Statements after the transaction closed.

1 unchanged sentence

Divestitures to the Condensed Consolidated Financial Statements for further information.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2024 were as follows:

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at March 31, 2025 were as follows:

(Dollars in thousands)

5 unchanged sentences

The weighted-average discount rate and remaining lease term for operating leases were as follows:

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

Weighted-average discount rate 2.67 % 2.45 %

1 unchanged sentence

The components of total lease costs for operating leases were as follows:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

(Dollars in thousands) 2025 2024 2025 2024

8 unchanged sentences

On August 25, 2023, the Company's Board of Directors announced a share repurchase program to repurchase up to an additional 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028.

During the three months ended December 31, 2024 and 2023, the Company repurchased 701,860 and 232,588 shares, respectively, as part of the share repurchase programs.

During the six months ended March 31, 2025 and 2024, the Company repurchased 1,277,664 and 996,773 shares, respectively, as part of the share repurchase programs.

Under the repurchase programs, repurchased shares were retired and designated as authorized but unissued shares.

The Company accounts for repurchased shares using the par value method under which the repurchase price is credited to paid-in capital up to the amount of the original proceeds of those shares.

The Company accounts for repurchased shares using the par value method under which the repurchase price is credited to paid-in capital up to the par value of those shares.

When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings.

As of December 31, 2024, 6,298,140 shares of common stock remained available for repurchase.

For the three months ended December 31, 2024 and 2023, the Company also repurchased 66,446 and 103,641 shares, or $ 4.6 million and $ 4.9 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

As of March 31, 2025, 5,722,336 shares of common stock remained available for repurchase.

For the six months ended March 31, 2025 and 2024, the Company also repurchased 66,446 and 122,452 shares, or $ 4.6 million and $ 5.8 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

Retirement of Treasury Stock.

1 unchanged sentence

When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings.

The Company retired no shares of common stock held in treasury during the three months ended December 31, 2024 and 2023.

The Company retired no shares of common stock held in treasury during the six months ended March 31, 2025 and 2024.

STOCK COMPENSATION

16 unchanged sentences

These stock awards vest in equal installments over eight years .

The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the three months ended December 31, 2024.

Number of Shares Weighted Average Fair Value at Grant

1 unchanged sentence

Nonvested shares outstanding, September 30, 2024 248,670 $ 41.19

Granted 15,600 77.42

Vested ( 179,669 ) 41.24

Forfeited or expired ( 1,055 ) 50.15

Nonvested shares outstanding, December 31, 2024 83,819 $ 47.75

Nonvested shares outstanding, March 31, 2025 83,546 $ 47.75

Restricted Stock Units

2 unchanged sentences

Forfeited or expired ( 572 ) 79.63

Nonvested shares outstanding, December 31, 2024 84,038 $ 79.66

Nonvested shares outstanding, March 31, 2025 85,628 $ 79.51

Number of Units Weighted Average Fair Value at Grant

3 unchanged sentences

Forfeited or expired — —

PSUs outstanding, December 31, 2024 141,294 $ 52.42

PSUs outstanding, March 31, 2025 142,366 $ 52.59

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant.

1 unchanged sentence

The Company has elected to record forfeitures as they occur.

As of December 31, 2024, stock-based compensation expense not yet recognized in income totaled $ 13.7 million, which is expected to be recognized over a weighted average remaining period of 1.95 years.

The Company recorded an income tax expense of $ 6.3 million for the three months ended December 31, 2024, resulting in an effective tax rate of 16.60 %, compared to an income tax expense of $ 5.7 million, or an effective tax rate of 17.00 %, for the three months ended December 31, 2023.

As of March 31, 2025, stock-based compensation expense not yet recognized in income totaled $ 11.7 million, which is expected to be recognized over a weighted average remaining period of 1.78 years.

The Company recorded an income tax expense of $ 22.2 million for the six months ended March 31, 2025, resulting in an effective tax rate of 17.38 %, compared to an income tax expense of $ 24.6 million, or an effective tax rate of 18.95 %, for the six months ended March 31, 2024.

The Company’s effective tax rate was lower than the U.S.

2 unchanged sentences

The table below compares the income tax expense components for the periods presented.

Three Months Ended December 31,

(Dollars in thousands) 2024 2023

Six Months Ended March 31,

(Dollars in thousands) (As Restated)

Provision at statutory rate $ 26,690 $ 27,183

13 unchanged sentences

(Dollars in thousands) Consumer Commercial Corporate Services/Other Consolidated Company

Three Months Ended December 31, 2024 2023 2024 2023 2024 2023 2024 2023

(As Restated) (As Restated) (As Restated) (As Restated)

Three Months Ended March 31, 2025 2024 2025 2024 2025 2024 2025 2024

Net interest income (1)

2 unchanged sentences

Refund transfer product fees 32,663 28,942 — — — — 32,663 28,942

Refund advance fee income (1)

Refund advance and other tax fee income (1)

48,585 43,200 — — — — 48,585 43,200

4 unchanged sentences

— — — — ( 7,228 ) — ( 7,228 ) —

(Loss) on divestitures (1)

— — — — ( 1,360 ) — ( 1,360 ) —

Secondary market revenue (1)

( 25 ) 16 2,074 1,385 13,329 — 15,378 1,401

Gain on sale of other (1)

— — 627 222 — 72 627 294

Other income (1)

2,221 2,432 2,225 2,307 1,420 1,305 5,866 6,044

Total noninterest income 114,027 109,687 18,118 17,749 6,379 1,509 138,524 128,945

Revenue $ 189,660 $ 176,967 $ 60,105 $ 62,242 $ 25,038 $ 18,370 $ 274,803 $ 257,579

Six Months Ended March 31,

Net interest income (1)

$ 156,694 $ 136,202 $ 85,280 $ 89,699 $ 19,554 $ 21,660 $ 261,528 $ 247,561

Noninterest income:

Refund transfer product fees 33,073 29,364 — — — — 33,073 29,364

Refund advance and other tax fee income (1)

49,110 43,311 — — — — 49,110 43,311

Card and deposit fees 59,411 65,604 434 477 14 13 59,859 66,094

Rental income (1)

— — 26,498 26,829 410 350 26,908 27,179

(Loss) on sale of securities (1)

— — — — ( 22,899 ) — ( 22,899 ) —

Gain on divestitures (1)

— — — — 15,044 — 15,044 —

Gain (loss) on sale of loans and leases (1)

Secondary market revenue (1)

15 ( 15 ) 6,412 1,385 13,328 — 19,755 1,370

13 unchanged sentences

therefore, the Company measures progress in completing these services based upon the passage of time.

Revenue from contracts with customers did not generate significant contract assets and liabilities for the three months ended December 31, 2024.

Revenue from contracts with customers did not generate significant contract assets and liabilities for the six months ended March 31, 2025.

Refund Transfer Product Fees.

35 unchanged sentences

(Dollars in thousands) Consumer Commercial Corporate Services/Other Total

Three Months Ended December 31, 2024 2023 2024 2023 2024 2023 2024 2023

(As Restated) (As Restated) (As Restated) (As Restated)

Three Months Ended March 31, 2025 2024 2025 2024 2025 2024 2025 2024

Net interest income $ 75,633 $ 67,280 $ 41,987 $ 44,493 $ 18,659 $ 16,861 $ 136,279 $ 128,634

Provision for (reversal of) credit loss 4,095 3,454 7,831 6,463 106 ( 27 ) 12,032 9,890

Provision for credit loss 31,739 29,144 3,508 555 19 45 35,266 29,744

Noninterest income 114,027 109,687 18,118 17,749 6,379 1,509 138,524 128,945

4 unchanged sentences

Total deposits 5,633,529 6,063,339 140 7,143 185,540 297,862 5,819,209 6,368,344

Six Months Ended March 31,

Net interest income $ 156,694 $ 136,202 $ 85,280 $ 89,699 $ 19,554 $ 21,660 $ 261,528 $ 247,561

Provision for credit loss 42,463 30,466 11,339 7,018 125 18 53,927 37,502

Noninterest income 147,629 142,474 39,357 33,748 8,916 5,484 195,902 181,706

Noninterest expense 120,327 111,579 66,366 72,986 89,280 77,254 275,973 261,819

Income (loss) before income tax expense 141,533 136,631 46,932 43,443 ( 60,935 ) ( 50,128 ) 127,530 129,946

Total assets 431,962 463,212 3,975,353 4,127,524 2,587,471 2,826,073 6,994,786 7,416,809

Total goodwill 87,145 87,145 210,783 222,360 — — 297,928 309,505

Total deposits 5,633,529 6,063,339 140 7,143 185,540 297,862 5,819,209 6,368,344

FAIR VALUES OF FINANCIAL INSTRUMENTS

13 unchanged sentences

The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

The following tables summarize the fair values of debt securities AFS and equity securities as they are measured at fair value on a recurring basis.

At December 31, 2024

Derivatives .

The Bank's use of derivatives is limited to the Consumer Lending Programs.

Under these Programs, the Bank has an agreement with a third party to originate consumer loans that are included in the Bank's held for investment or held for sale portfolios.

The third party provides a target return to the Company on the portfolio of loans retained by the Bank and all interest received from borrowers on such loans above the target return and after all charge-offs have been covered is paid to the third party as excess interest and servicing.

The primary drivers of the derivative value include the Company's ability to settle the loans at par value and the third party partners' rights of first refusal to purchase loans that the Company intends to sell.

The Company estimates the fair value of the derivative instrument using a market approach considering primarily the average interest rate on the underlying loans and the credit spread relative to the risk-free rate in order to validate that the value of the loans is in excess of par and thus the derivative could be settled by either party at no cost.

The Company considers this derivative instrument to be within Level 3 of the fair value hierarchy, as it utilizes inputs from sales or securitization transactions involving similar loans.

As of March 31, 2025 and September 30, 2024, the Company determined the derivatives had no fair value, respectively, thus eliminating the need for further disclosures regarding Level 3 inputs as outlined in ASC 820.

The following table summarizes the fair values of debt securities AFS and equity securities as they are measured at fair value on a recurring basis.

(Dollars in thousands) Total Level 1 Level 2 Level 3

March 31, 2025

Debt securities AFS

10 unchanged sentences

$ 12,829 $ — $ — $ —

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2024.

(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

At September 30, 2024

(Dollars in thousands) Total Level 1 Level 2 Level 3

September 30, 2024

Debt securities AFS

10 unchanged sentences

$ 11,828 $ — $ — $ —

(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2024.

(2) Consists of certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2025 and September 30, 2024.

Loans and Leases.

3 unchanged sentences

The fair value of the collateral is determined based on the internal estimates and/or assessment provided by third-party appraisers and the valuation relies on discount rates ranging from 3 % to 28 %.

The following tables summarize the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a nonrecurring basis:

At December 31, 2024

The following table summarizes the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a nonrecurring basis:

(Dollars in thousands) Total Level 1 Level 2 Level 3

March 31, 2025

Loans and leases, net individually evaluated for credit loss

2 unchanged sentences

Total $ 8,900 $ — $ — $ 8,900

At September 30, 2024

(Dollars in thousands) Total Level 1 Level 2 Level 3

September 30, 2024

Loans and leases, net individually evaluated for credit loss

4 unchanged sentences

(Dollars in thousands) Fair Value at

December 31, 2024

March 31, 2025

Fair Value at

5 unchanged sentences

Management discloses the estimated fair value of financial instruments, including assets and liabilities on and off the Condensed Consolidated Statements of Financial Condition, for which it is practicable to estimate fair value.

These fair value estimates were made at December 31, 2024 and September 30, 2024 based on relevant market information and information about financial instruments.

These fair value estimates were made at March 31, 2025 and September 30, 2024 based on relevant market information and information about financial instruments.

Fair value estimates are intended to represent the price at which an asset could be sold or a liability could be settled.

3 unchanged sentences

The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company:

At December 31, 2024

March 31, 2025

(Dollars in thousands) Carrying

17 unchanged sentences

Accrued interest payable 183 183 183 — —

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2024.

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2025.

(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

At September 30, 2024

September 30, 2024

(Dollars in thousands) Carrying

21 unchanged sentences

SUBSEQUENT EVENTS

Management has evaluated subsequent events that occurred after December 31, 2024.

During this period, up to the filing date of this Quarterly Report on Form 10-Q, management did not identify any material subsequent events that would require recognition or disclosure in our Condensed Consolidated Financial Statements as of or for the quarter ended December 31, 2024.

Management has evaluated subsequent events that occurred after March 31, 2025.

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated its unaudited historical condensed consolidated financial statements as of March 31, 2024 and for the three and six months ended March 31, 2024 to correct for identified errors in its accounting for allowance for credit losses, interest income, provision for credit losses, and noninterest expense.

In addition, the Company has corrected other unrelated immaterial errors which were previously not recorded or not recorded in the appropriate period.

Prior period financial information restated for the three and six months ended March 31, 2024, was restated in the Form 10-K/A for the fiscal year ended September 30, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements