PATHWARD FINANCIAL, INC. 10-Q

Item 1. Financial Statements. PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Financial Condition (Dollars in thousands, except per share data) December 31, 2025 September 30, 2025 ASSETS (Unaudited) (Audited) Cash and cash equivalents $ 331,217 $ 120,568 Securities available for sale, at fair value 1,310,047 1,327,843 Securities held to maturity, at amortized cost (fair value $ 25,089 and $ 25,653 , respectively) 28,662 29,308 Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 24,310 24,708 Loans held for sale 87,969 179,421 Loans and leases 4,982,855 4,664,908 Allowance for credit losses ( 58,840 ) ( 53,319 ) Accrued interest receivable 36,174 38,520 Premises, furniture, and equipment, net 42,370 40,632 Rental equipment, net 154,533 159,446 Goodwill and intangible assets 309,712 310,430 Other assets 311,196 329,879 Total assets $ 7,560,205 $ 7,172,344 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Deposits $ 6,350,394 $ 5,886,947 Short-term borrowings — 9,000 Long-term borrowings 33,482 33,456 Accrued expenses and other liabilities 322,617 385,487 Total liabilities 6,706,493 6,314,890 STOCKHOLDERS’ EQUITY Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2025 and September 30, 2025, respectively — — Common stock, $ 0.01 par value; 90,000,000 shares authorized, 22,220,603 and 22,842,785 shares issued, 22,169,535 and 22,772,570 shares outstanding at December 31, 2025 and September 30, 2025, respectively 222 228 Common stock, Nonvoting, $ 0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2025 and September 30, 2025, respectively — — Additional paid-in capital 651,199 648,330 Retained earnings 346,529 359,830 Accumulated other comprehensive loss ( 134,996 ) ( 145,461 ) Treasury stock, at cost, 51,068 and 70,215 common shares at December 31, 2025 and September 30, 2025, respectively ( 8,419 ) ( 4,882 ) Total equity attributable to parent 854,535 858,045 Noncontrolling interest ( 823 ) ( 591 ) Total stockholders’ equity 853,712 857,454 Total liabilities and stockholders’ equity $ 7,560,205 $ 7,172,344 See Notes to Condensed Consolidated Financial Statements. 2 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, (Dollars in thousands, except per share data) 2025 2024 Interest and dividend income: Loans and leases, including fees $ 107,775 $ 111,849 Mortgage-backed securities 7,812 8,986 Other investments 5,635 7,522 121,222 128,357 Interest expense: Deposits 206 775 FHLB advances and other borrowings 1,678 2,331 1,884 3,106 Net interest income 119,338 125,251 Provision for credit loss 3,230 18,661 Net interest income after provision for credit loss 116,108 106,590 Noninterest income: Refund transfer product fees 355 410 Refund advance and other tax fee income 131 459 Card and deposit fees 30,140 29,066 Rental income 11,620 13,708 (Loss) on sale of securities — ( 15,671 ) Gain on divestitures — 16,404 Secondary market revenue 4,157 4,378 Gain on sale of other 488 987 Other income 6,872 7,637 Total noninterest income 53,763 57,378 Noninterest expense: Compensation and benefits 51,864 49,292 Refund transfer product expense 73 108 Refund advance expense 72 34 Card processing 30,437 33,314 Building and software 12,580 9,706 Operating lease equipment depreciation 9,995 11,426 Legal and consulting 5,554 5,225 Intangible amortization 718 812 Other expense 15,920 17,880 Total noninterest expense 127,213 127,797 Income before income tax expense 42,658 36,171 Income tax expense 7,193 6,005 Net income before noncontrolling interest 35,465 30,166 Net income attributable to noncontrolling interest 299 199 Net income attributable to parent $ 35,166 $ 29,967 Earnings per common share: Basic $ 1.57 $ 1.23 Diluted $ 1.57 $ 1.23 See Notes to Condensed Consolidated Financial Statements. 3 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended December 31, (Dollars in thousands) 2025 2024 Net income before noncontrolling interest $ 35,465 $ 30,166 Other comprehensive income (loss): Change in net unrealized gain (loss) on debt securities 12,855 ( 62,340 ) Net loss realized on debt securities — 15,671 12,855 ( 46,669 ) Unrealized gain (loss) on currency translation 792 ( 2,017 ) Deferred income tax effect 3,182 ( 11,163 ) Total other comprehensive income (loss) 10,465 ( 37,523 ) Total comprehensive income (loss) 45,930 ( 7,357 ) Total comprehensive income attributable to noncontrolling interest 299 199 Comprehensive income (loss) attributable to parent $ 45,631 $ ( 7,556 ) See Notes to Condensed Consolidated Financial Statements. 4 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Three Months Ended (Dollars in thousands, except per share data) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Pathward Financial, Inc. Stockholders’ Equity Noncontrolling interest Total Stockholders’ Equity Balance, September 30, 2025 $ 228 $ 648,330 $ 359,830 $ ( 145,461 ) $ ( 4,882 ) $ 858,045 $ ( 591 ) $ 857,454 Cash dividends declared on common stock ($ 0.05 per share) — — ( 1,109 ) — — ( 1,109 ) — ( 1,109 ) Issuance of common stock due to restricted stock 1 — — — — 1 — 1 Repurchases of common stock ( 7 ) 7 ( 47,358 ) — ( 3,537 ) ( 50,895 ) — ( 50,895 ) Stock compensation — 2,862 — — — 2,862 — 2,862 Total other comprehensive income — — — 10,465 — 10,465 — 10,465 Net income — — 35,166 — — 35,166 299 35,465 Net distribution to noncontrolling interest — — — — — — ( 531 ) ( 531 ) Balance, December 31, 2025 $ 222 $ 651,199 $ 346,529 $ ( 134,996 ) $ ( 8,419 ) $ 854,535 $ ( 823 ) $ 853,712 Balance, September 30, 2024 $ 248 $ 638,803 $ 337,058 $ ( 153,394 ) $ ( 249 ) $ 822,466 $ ( 277 ) $ 822,189 Cash dividends declared on common stock ($ 0.05 per share) — — ( 1,202 ) — — ( 1,202 ) — ( 1,202 ) Repurchases of common stock ( 7 ) 7 ( 52,377 ) — ( 4,633 ) ( 57,010 ) — ( 57,010 ) Stock compensation — 1,612 — — — 1,612 — 1,612 Total other comprehensive loss — — — ( 37,523 ) — ( 37,523 ) — ( 37,523 ) Net income — — 29,967 — — 29,967 199 30,166 Net distribution to noncontrolling interest — — — — — — ( 678 ) ( 678 ) Balance, December 31, 2024 $ 241 $ 640,422 $ 313,446 $ ( 190,917 ) $ ( 4,882 ) $ 758,310 $ ( 756 ) $ 757,554 See Notes to Condensed Consolidated Financial Statements. 5 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended December 31, (Dollars in thousands) 2025 2024 Cash flows from operating activities: Net income before noncontrolling interest $ 35,465 $ 30,166 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 13,395 14,918 Provision for credit loss 3,230 18,661 Provision for deferred taxes 1,456 1,999 Originations of loans held for sale ( 1,038,931 ) ( 853,109 ) Proceeds from sales of loans held for sale 1,176,324 618,432 Net change in loans held for sale ( 3,050 ) 264,136 Net realized (gain) on loans held for sale ( 4,157 ) ( 4,378 ) Net realized loss (gain) on securities available for sale — 15,671 Net realized (gain) on divestitures — ( 16,404 ) Net realized (gain) on other ( 488 ) ( 987 ) Net change in accrued interest receivable 2,346 ( 3,894 ) Net change in other assets ( 17,278 ) ( 30,332 ) Net change in accrued expenses and other liabilities ( 62,870 ) ( 128,226 ) Stock compensation 2,862 1,612 Net cash provided by (used in) operating activities 108,304 ( 71,735 ) Cash flows from investing activities: Purchases of securities available for sale — ( 1,168 ) Proceeds from sales of securities available for sale — 160,135 Proceeds from maturities of and principal collected on securities available for sale 30,606 39,727 Proceeds from maturities of and principal collected on securities held to maturity 610 1,038 Purchases of Federal Reserve Bank and Federal Home Loan Bank stock ( 90,187 ) ( 90,725 ) Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 90,585 102,285 Purchases of loans and leases ( 32,923 ) ( 139,359 ) Net change in loans and leases ( 284,055 ) ( 330,646 ) Purchases of premises, furniture, and equipment ( 4,236 ) ( 2,087 ) Purchases of rental equipment ( 45,371 ) ( 52,790 ) Proceeds from sales of rental equipment 2,394 5,591 Net change in rental equipment 11 118 Proceeds from surrender of bank-owned life insurance 32,206 — Proceeds from divestitures, net of transaction costs — 600,232 Proceeds from sale of other assets — 408 Net cash provided by (used in) investing activities ( 300,360 ) 292,759 Cash flows from financing activities: Net change in deposits 463,447 655,942 Net change in short-term borrowings ( 9,000 ) ( 377,000 ) Dividends paid on common stock ( 1,109 ) ( 1,202 ) Issuance of common stock due to restricted stock 1 — Repurchases of common stock ( 50,895 ) ( 57,010 ) Investment by (distributions to) noncontrolling interest ( 531 ) ( 678 ) Net cash provided by financing activities 401,913 220,052 Effect of exchange rate changes on cash 792 ( 2,017 ) Net change in cash and cash equivalents 210,649 439,059 Cash and cash equivalents at beginning of fiscal year 120,568 158,337 Cash and cash equivalents at end of fiscal period $ 331,217 $ 597,396 6 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended December 31, (Dollars in thousands) 2025 2024 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 1,345 $ 2,906 Income taxes 927 1,407 Franchise and other taxes 75 76 Supplemental schedule of non-cash investing activities: Transfers Held for sale to loans and leases $ 88 $ 2,500 Loans and leases to held for sale 39,251 — Loans and leases to rental equipment 2,276 1,604 Rental equipment to loan and leases 40,570 36,263 See Notes to Condensed Consolidated Financial Statements. 7 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements NOTE 1. 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, 2025 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 25, 2025. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted. The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. 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, 2025 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2026. 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. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2025 remain substantially unchanged. The following ASU became effective for the Company on October 1, 2025. ASU 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures . This ASU requires enhanced income tax disclosures primarily related to the rate reconciliation and income taxes paid information to provide further transparency surrounding the Company’s income tax position. The amendments in this ASU will result in disclosure only impacts that the Company will first apply for its annual reporting period ending September 30, 2026. The Company is currently evaluating the impact of such amendments to the relevant annual disclosures. The following ASUs have been issued and are considered applicable to the Company, but have not yet been adopted. ASU 2024-03 , Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. This ASU requires public entities to provide enhanced disaggregation of certain expense categories presented in the income statement to improve transparency and consistency in financial reporting. The new guidance aims to provide investors with more detailed information regarding the nature of a company’s expenses. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2027, and interim periods within that fiscal year. The amendments are to be applied retrospectively to all prior periods presented. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. ASU 2025-05 , Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets . This ASU clarifies the measurement of expected credit losses for accounts receivable and contract assets arising from revenue transactions, aligning the application of Topic 326 with the revenue recognition guidance in Topic 606. The amendments are intended to reduce diversity in practice and improve the consistency of credit loss estimates across similar financial assets. The amendments will be effective for the Company beginning on October 1, 2026, and will apply to interim periods within the fiscal year ending September 30, 2027. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. 8 Table of Contents ASU 2025-06 , Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) . This ASU modernizes the accounting for internally used software by streamlining when costs may be capitalized and by enhancing disclosure and presentation requirements. The amendments will be effective for the Company beginning on October 1, 2028, and will apply to interim periods within the fiscal year ending September 30, 2029. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. ASU 2025-07 , Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) . This ASU refines the scope of derivative accounting and clarifies the treatment of certain share-based noncash consideration received from customers. The amendments are intended to enhance clarity and consistency in applying derivative and revenue recognition guidance. The amendments will be effective for the Company beginning on October 1, 2027 and will apply to interim periods within the fiscal year ending September 30, 2028. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. ASU 2025-08 , Financial Instruments—Credit Losses (Topic 326): Purchased Loans This ASU changes the accounting for certain acquired loans by requiring entities to apply a “gross-up” approach at acquisition for purchased seasoned loans, recognizing an allowance for expected credit losses as part of the acquisition accounting rather than through a post-acquisition provision. The amendments are to be applied prospectively to loans acquired on or after the initial application date. The ASU will be effective for the Company on October 1, 2027. Early adoption is permitted but not expected to be exercised by the Company at this time. ASU 2025-11 , Interim Reporting (Topic 270) Narrow-Scope Improvements. This ASU clarifies when Topic 270 applies and enhances usability by (among other changes) specifying the form/content of interim financial statements, providing a comprehensive list of required interim disclosures, and introducing a disclosure principle for material events since the last annual period—without intending to significantly expand or reduce interim disclosure requirements. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2029, and interim periods within that fiscal year. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. ASU 2025-12 , Codification Improvements. This ASU is part of the Financial Accounting Standards Board's standing "evergreen" project and makes a broad set of technical corrections, clarifications, and other minor improvements across many Topics to make the Codification easier to understand and apply. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2028, and interim periods within that fiscal year. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. 9 Table of Contents NOTE 3. SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available for sale ("AFS") and held to maturity ("HTM") are presented below. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Debt Securities AFS December 31, 2025 Corporate securities $ 25,000 $ — $ ( 2,500 ) $ 22,500 SBA securities 11,425 — ( 1,011 ) 10,414 Obligations of states and political subdivisions 162 — — 162 Non-bank qualified obligations of states and political subdivisions 207,489 22 ( 24,277 ) 183,234 Asset-backed securities 134,883 16 ( 1,774 ) 133,125 Mortgage-backed securities 1,108,518 141 ( 148,047 ) 960,612 Total debt securities AFS $ 1,487,477 $ 179 $ ( 177,609 ) $ 1,310,047 September 30, 2025 Corporate securities $ 25,000 $ — $ ( 3,750 ) $ 21,250 SBA securities 11,791 — ( 1,022 ) 10,769 Obligations of states and political subdivisions 162 — — 162 Non-bank qualified obligations of states and political subdivisions 213,072 25 ( 26,057 ) 187,040 Asset-backed securities 138,698 21 ( 2,347 ) 136,372 Mortgage-backed securities 1,129,406 57 ( 157,213 ) 972,250 Total debt securities AFS $ 1,518,129 $ 103 $ ( 190,389 ) $ 1,327,843 Debt Securities HTM December 31, 2025 Non-bank qualified obligations of states and political subdivisions $ 26,833 $ — $ ( 3,358 ) $ 23,475 Mortgage-backed securities 1,829 — ( 215 ) 1,614 Total debt securities HTM $ 28,662 $ — $ ( 3,573 ) $ 25,089 September 30, 2025 Non-bank qualified obligations of states and political subdivisions $ 27,373 $ — $ ( 3,430 ) $ 23,943 Mortgage-backed securities 1,935 — ( 225 ) 1,710 Total debt securities HTM $ 29,308 $ — $ ( 3,655 ) $ 25,653 10 Table of Contents Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows: LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL (Dollars in thousands) Fair Value Gross Unrealized (Losses) Fair Value Gross Unrealized (Losses) Fair Value Gross Unrealized (Losses) Debt Securities AFS December 31, 2025 Corporate securities $ — $ — $ 22,500 $ ( 2,500 ) $ 22,500 $ ( 2,500 ) SBA securities — — 10,414 ( 1,011 ) 10,414 ( 1,011 ) Non-bank qualified obligations of states and political subdivisions — — 181,292 ( 24,277 ) 181,292 ( 24,277 ) Asset-backed securities 63,421 ( 435 ) 64,866 ( 1,339 ) 128,287 ( 1,774 ) Mortgage-backed securities — — 948,180 ( 148,047 ) 948,180 ( 148,047 ) Total debt securities AFS $ 63,421 $ ( 435 ) $ 1,227,252 $ ( 177,174 ) $ 1,290,673 $ ( 177,609 ) September 30, 2025 Corporate securities $ — $ — $ 21,250 $ ( 3,750 ) $ 21,250 $ ( 3,750 ) SBA securities — — 10,769 ( 1,022 ) 10,769 ( 1,022 ) Non-bank qualified obligations of states and political subdivisions — — 185,089 ( 26,057 ) 185,089 ( 26,057 ) Asset-backed securities 64,995 ( 556 ) 66,263 ( 1,791 ) 131,258 ( 2,347 ) Mortgage-backed securities 1,102 ( 2 ) 965,549 ( 157,211 ) 966,651 ( 157,213 ) Total debt securities AFS $ 66,097 $ ( 558 ) $ 1,248,920 $ ( 189,831 ) $ 1,315,017 $ ( 190,389 ) Debt Securities HTM December 31, 2025 Non-bank qualified obligations of states and political subdivisions $ — $ — $ 23,475 $ ( 3,358 ) $ 23,475 $ ( 3,358 ) Mortgage-backed securities — — 1,614 ( 215 ) 1,614 ( 215 ) Total debt securities HTM $ — $ — $ 25,089 $ ( 3,573 ) $ 25,089 $ ( 3,573 ) September 30, 2025 Non-bank qualified obligations of states and political subdivisions $ — $ — $ 23,943 $ ( 3,430 ) $ 23,943 $ ( 3,430 ) Mortgage-backed securities — — 1,710 ( 225 ) 1,710 ( 225 ) Total debt securities HTM $ — $ — $ 25,653 $ ( 3,655 ) $ 25,653 $ ( 3,655 ) The decrease in the fair value of investment securities balances when comparing December 31, 2025 to September 30, 2025 was primarily driven by principal pay downs during the three months. At December 31, 2025, there were 144 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, 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. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. 11 Table of Contents (Dollars in thousands) December 31, 2025 September 30, 2025 Debt Securities AFS Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 755 $ 758 $ 755 $ 760 Due after one year through five years 1,327 1,346 1,332 1,352 Due after five years through ten years 27,488 24,994 27,688 23,947 Due after ten years 349,389 322,337 358,948 329,534 378,959 349,435 388,723 355,593 Mortgage-backed securities 1,108,518 960,612 1,129,406 972,250 Total debt securities AFS $ 1,487,477 $ 1,310,047 $ 1,518,129 $ 1,327,843 Debt Securities HTM Due after ten years $ 26,833 $ 23,475 $ 27,373 $ 23,943 26,833 23,475 27,373 23,943 Mortgage-backed securities 1,829 1,614 1,935 1,710 Total debt securities HTM $ 28,662 $ 25,089 $ 29,308 $ 25,653 Federal Reserve Bank ("FRB") Stock. The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. 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, 2025 and September 30, 2025. These equity securities are 'restricted' in that they can only be owned by member banks. Federal Home Loan Bank ("FHLB") Stock. The Company's borrowings from the FHLB are secured by specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities. The investments in the FHLB stock are required investments related to the Company's membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency. 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 $ 4.6 million and $ 5.0 million at December 31, 2025 and at September 30, 2025, 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. Therefore, FRB and FHLB stocks are less liquid than other marketable equity securities, and the cost approximates fair value. Equity Securities. The Company held $ 4.7 million and $ 3.8 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2025 and September 30, 2025, respectively. The Company recognized zero and $ 0.1 million in unrealized losses on marketable equity securities during the three months ended December 31, 2025 and 2024, respectively. No such securities were sold during the three months ended December 31, 2025. Non-marketable equity securities that are measured at fair value using net asset value ("NAV") as a practical expedient totaled $ 13.8 million and $ 13.2 million at December 31, 2025 and September 30, 2025, respectively. These securities are held within other assets on the Condensed Consolidated Statements of Financial Condition. The Company recognized zero and $ 0.3 million in unrealized gains during the three months ended December 31, 2025 and 2024, respectively. No such securities were sold during the three months ended December 31, 2025. 12 Table of Contents Non-marketable equity securities without readily determinable fair value totaled $ 12.6 million and $ 12.0 million at December 31, 2025 and September 30, 2025, respectively, reflecting the Company's ownership interests in other entities through 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. The Company recognized a $ 0.4 million gain on Visa shares which were carried at a cost basis of $0 during the three months ended December 31, 2024. 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 three months ended December 31, 2025. Equity Securities Impairment. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. 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, 2025 and 2024. NOTE 4. LOANS AND LEASES, NET Loans and leases consist of the following: (Dollars in thousands) December 31, 2025 September 30, 2025 Term lending $ 2,506,777 $ 2,302,540 Asset-based lending 629,317 593,265 Factoring 213,888 217,501 Lease financing 136,505 149,236 SBA/USDA 520,461 511,488 Other commercial finance 140,229 149,939 Commercial finance 4,147,177 3,923,969 Consumer finance 132,045 93,319 Tax services 62,049 2,532 Warehouse finance 641,669 645,186 Total loans and leases 4,982,940 4,665,006 Net deferred loan origination costs (fees) ( 85 ) ( 98 ) Total gross loans and leases 4,982,855 4,664,908 Allowance for credit losses ( 58,840 ) ( 53,319 ) Total loans and leases, net $ 4,924,015 $ 4,611,589 During the three months ended December 31, 2025 and 2024, the Company originated $ 1.04 billion and $ 853.1 million of commercial finance and consumer finance as held for sale, respectively. The Company sold held for sale loans resulting in proceeds of $ 1.18 billion and a $ 4.2 million gain on sale during the three months ended December 31, 2025. 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 . Gains and losses from the sale of loans and leases are included in secondary market revenue on the Condensed Consolidated Statements of Operations. 13 Table of Contents Loans purchased and sold by portfolio segment, including participation interests, were as follows: Three Months Ended December 31, (Dollars in thousands) 2025 2024 Loans Purchased Loans held for investment: Commercial finance $ — $ 19,540 Warehouse finance 32,923 119,819 Total purchases $ 32,923 $ 139,359 Loans Sold Loans held for sale: Commercial finance $ 58,563 $ 65,802 Consumer finance 1,117,761 552,630 Total sales $ 1,176,324 $ 618,432 Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following: (Dollars in thousands) December 31, 2025 September 30, 2025 Minimum lease payments receivable $ 142,428 $ 157,271 Unguaranteed residual assets 6,445 6,785 Unamortized initial direct costs 48 68 Unearned income ( 12,368 ) ( 14,820 ) Total net investment in direct financing and sales-type leases $ 136,553 $ 149,304 The components of total lease income were as follows: Three Months Ended December 31, (Dollars in thousands) 2025 2024 Interest income - loans and leases Interest income on net investments in direct financing and sales-type leases $ 1,948 $ 3,187 Leasing and equipment finance noninterest income Lease income from operating lease payments 11,284 13,448 Other (1) 1,583 1,307 Total leasing and equipment finance noninterest income 12,867 14,755 Total lease income $ 14,815 $ 17,942 (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. 14 Table of Contents Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at December 31, 2025 were as follows: (Dollars in thousands) 2026 $ 36,860 2027 61,414 2028 24,071 2029 12,891 2030 5,538 Thereafter 1,654 Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 142,428 Third-party residual value guarantees — Total carrying amount of minimum lease payments for direct financing and sales-type leases $ 142,428 The Company did not record any contingent rental income from direct financing and sales-type leases in the three months ended December 31, 2025. A number of factors that have affected the economic environment over the past few years have continued into 2025, including economic uncertainty, inflation, geopolitical conflict and tensions, and increased interest rates, with the Federal Reserve beginning to lower the target federal funds rate at the end of 2024. 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. 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. 15 Table of Contents Activity in the allowance for credit losses by portfolio segment was as follows: (Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Three Months Ended December 31, 2025 Allowance for credit losses: Term lending $ 28,345 $ ( 1,260 ) $ ( 1,081 ) $ 2,767 $ 28,771 Asset-based lending 7,650 2,038 — 6 9,694 Factoring 4,319 ( 537 ) — 2 3,784 Lease financing 1,040 ( 38 ) ( 22 ) 57 1,037 SBA/USDA 4,807 373 ( 476 ) 5 4,709 Other commercial finance 90 12 — — 102 Commercial finance 46,251 588 ( 1,579 ) 2,837 48,097 Consumer finance 6,422 4,122 ( 1,828 ) 324 9,040 Tax services — ( 1,398 ) — 2,459 1,061 Warehouse finance 646 ( 4 ) — — 642 Total loans and leases 53,319 3,308 ( 3,407 ) 5,620 58,840 Unfunded commitments (1) 924 ( 78 ) — — 846 Total $ 54,243 $ 3,230 $ ( 3,407 ) $ 5,620 $ 59,686 Three Months Ended December 31, 2024 Allowance for credit losses: Term lending $ 30,394 $ 7,289 $ ( 8,375 ) $ 617 $ 29,925 Asset-based lending 1,356 406 — — 1,762 Factoring 5,757 ( 170 ) ( 74 ) 252 5,765 Lease financing 1,189 ( 247 ) ( 63 ) 2 881 Insurance premium finance — 91 ( 93 ) 2 — SBA/USDA 3,273 831 ( 297 ) — 3,807 Other commercial finance 607 ( 186 ) — — 421 Commercial finance 42,576 8,014 ( 8,902 ) 873 42,561 Consumer finance 28,669 9,421 ( 8,085 ) 356 30,361 Tax services 2 1,301 ( 741 ) 228 790 Warehouse finance 518 107 — — 625 Total loans and leases 71,765 18,843 ( 17,728 ) 1,457 74,337 Unfunded commitments (1) 695 ( 182 ) — — 513 Total $ 72,460 $ 18,661 $ ( 17,728 ) $ 1,457 $ 74,850 (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) December 31, 2025 September 30, 2025 Term lending $ 38,713 $ 33,042 Asset-based lending 27,539 24,273 Factoring 658 — Lease financing 4,003 3,985 SBA/USDA 8,523 6,147 Commercial finance (1) 79,436 67,447 Total $ 79,436 $ 67,447 (1) For commercial finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets. 16 Table of Contents Management has identified certain structured finance credits for alternative energy projects in which a substantial cash collateral account has been established to mitigate credit risk. 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 $ 102.9 million and $ 107.7 million at December 31, 2025 and at September 30, 2025, 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 Office of the Comptroller of the Currency (the "OCC"), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows: Pass - A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating. Watch - A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention - A special mention asset is a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. The adverse classifications are as follows: Substandard - A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful - A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate. Loss - A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. Loans and leases, or portions thereof, are generally charged off when collection of principal becomes doubtful. Typically, this is associated with a delay or shortfall in payments of 120 days or more for consumer credit products and leases, and 90 days or more for commercial finance loans. Action is taken to charge off electronic return originator ("ERO") loans if such loans have not been collected by the end of June and refund advance loans if such loans have not been collected by the end of the calendar year. The Company individually evaluates loans and leases that do not share similar risk characteristics with other financial assets, which generally means loans and leases identified as modifications or loans and leases on nonaccrual status. The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the allowable Allowance for Credit Losses. The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. 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 $ 132.0 million and $ 62.0 million at December 31, 2025, respectively, and $ 93.3 million and $ 2.5 million at September 30, 2025 , respectively. 17 Table of Contents The amortized cost basis of loans and leases by asset classification and year of origination was as follows: Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total December 31, 2025 2026 2025 2024 2023 2022 Prior Term lending Pass $ 342,319 $ 879,125 $ 272,639 $ 257,255 $ 91,021 $ 85,413 $ — $ 1,927,772 Watch 1,939 107,434 122,665 18,390 10,997 70,898 — 332,323 Special mention — 3,837 8,666 34,954 1,566 14,993 — 64,016 Substandard — 29,102 31,402 37,697 10,273 67,536 — 176,010 Doubtful — 1,249 3,386 625 1,122 274 — 6,656 Total 344,258 1,020,747 438,758 348,921 114,979 239,114 — 2,506,777 Current period charge-offs — — 288 309 333 151 — 1,081 Asset-based lending Pass — — — — — — 294,153 294,153 Watch — — — — — — 271,721 271,721 Special mention — — — — — — 32,664 32,664 Substandard — — — — — — 27,860 27,860 Doubtful — — — — — — 2,919 2,919 Total — — — — — — 629,317 629,317 Current period charge-offs — — — — — — — — Factoring Pass — — — — — — 169,389 169,389 Watch — — — — — — 43,197 43,197 Substandard — — — — — — 1,302 1,302 Total — — — — — — 213,888 213,888 Current period charge-offs — — — — — — — — Lease financing Pass 16,080 14,142 30,547 32,626 1,744 2,920 — 98,059 Watch 29 3,783 15,118 618 — 36 — 19,584 Special mention — — 275 — 503 567 — 1,345 Substandard — 1,067 3,873 5,206 1,144 6,077 — 17,367 Doubtful — — — 150 — — — 150 Total 16,109 18,992 49,813 38,600 3,391 9,600 — 136,505 Current period charge-offs — — — — — 22 — 22 SBA/USDA Pass 51,619 65,447 61,610 71,987 105,511 69,953 — 426,127 Watch 250 3,729 7,217 117 10,251 3,629 — 25,193 Special mention — 106 80 — 936 3,603 — 4,725 Substandard 659 1,872 6,818 10,029 11,765 32,766 — 63,909 Doubtful — 283 — — 224 — — 507 Total 52,528 71,437 75,725 82,133 128,687 109,951 — 520,461 Current period charge-offs — — 121 355 — — — 476 Other commercial finance Pass 2,000 8,955 59,893 — — 68,944 — 139,792 Substandard — — — — — 437 — 437 Total 2,000 8,955 59,893 — — 69,381 — 140,229 Current period charge-offs — — — — — — — — Warehouse finance Pass — — — — — — 641,669 641,669 Total — — — — — — 641,669 641,669 Current period charge-offs — — — — — — — — Total loans and leases Pass 412,018 967,669 424,689 361,868 198,276 227,230 1,105,211 3,696,961 Watch 2,218 114,946 145,000 19,125 21,248 74,563 314,918 692,018 18 Table of Contents Special mention — 3,943 9,021 34,954 3,005 19,163 32,664 102,750 Substandard 659 32,041 42,093 52,932 23,182 106,816 29,162 286,885 Doubtful — 1,532 3,386 775 1,346 274 2,919 10,232 Total $ 414,895 $ 1,120,131 $ 624,189 $ 469,654 $ 247,057 $ 428,046 $ 1,484,874 $ 4,788,846 Current period charge-offs $ — $ — $ 409 $ 664 $ 333 $ 173 $ — $ 1,579 Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total September 30, 2025 2025 2024 2023 2022 2021 Prior Term lending Pass $ 935,599 $ 399,968 $ 298,678 $ 99,820 $ 43,216 $ 35,971 $ — $ 1,813,252 Watch 65,674 71,326 68,737 7,222 28,882 13,357 — 255,198 Special mention 56 68,989 3,762 826 11,078 65 — 84,776 Substandard 29,792 24,666 37,845 14,137 16,050 19,995 — 142,485 Doubtful — 564 774 3,854 1,615 22 — 6,829 Total 1,031,121 565,513 409,796 125,859 100,841 69,410 — 2,302,540 Current period charge-offs — 7,818 4,492 3,257 991 419 — 16,977 Asset-based lending Pass — — — — — — 301,128 301,128 Watch — — — — — — 233,541 233,541 Special mention — — — — — — 31,702 31,702 Substandard — — — — — — 24,730 24,730 Doubtful — — — — — — 2,164 2,164 Total — — — — — — 593,265 593,265 Current period charge-offs — — — — — — 5,611 5,611 Factoring Pass — — — — — — 179,352 179,352 Watch — — — — — — 36,218 36,218 Special mention — — — — — — 394 394 Substandard — — — — — — 1,537 1,537 Total — — — — — — 217,501 217,501 Current period charge-offs — — — — — — 1,479 1,479 Lease financing Pass 43,710 20,259 36,483 2,270 1,089 4,439 — 108,250 Watch 13,587 5,181 13 635 1,059 — — 20,475 Special mention — 941 223 — 181 44 — 1,389 Substandard 7,190 — 5,375 1,377 4,088 905 — 18,935 Doubtful — — 150 — 37 — — 187 Total 64,487 26,381 42,244 4,282 6,454 5,388 — 149,236 Current period charge-offs — — 320 — 1,005 101 — 1,426 Insurance premium finance Current period charge-offs — 62 31 — — — — 93 SBA/USDA Pass 79,928 61,063 93,459 136,075 19,674 30,962 — 421,161 Watch 2,651 5,117 136 12,477 691 3,598 — 24,670 Special mention 2,682 350 — — 326 1,038 — 4,396 Substandard 315 3,176 12,721 7,678 2,235 30,588 — 56,713 Doubtful 221 2,687 1,592 — — 48 — 4,548 Total 85,797 72,393 107,908 156,230 22,926 66,234 — 511,488 Current period charge-offs 74 882 537 90 55 1,011 — 2,649 Other commercial finance Pass 8,770 63,200 — 134 12,471 62,495 — 147,070 Watch — — 2,418 — — — — 2,418 Substandard — — 451 — — — — 451 19 Table of Contents Total 8,770 63,200 2,869 134 12,471 62,495 — 149,939 Current period charge-offs — — — — — — — — Warehouse finance Pass — — — — — — 645,186 645,186 Total — — — — — — 645,186 645,186 Current period charge-offs — — — — — — — — Total loans and leases Pass 1,068,007 544,490 428,620 238,299 76,450 133,867 1,125,666 3,615,399 Watch 81,912 81,624 71,304 20,334 30,632 16,955 269,759 572,520 Special mention 2,738 70,280 3,985 826 11,585 1,147 32,096 122,657 Substandard 37,297 27,842 56,392 23,192 22,373 51,488 26,267 244,851 Doubtful 221 3,251 2,516 3,854 1,652 70 2,164 13,728 Total $ 1,190,175 $ 727,487 $ 562,817 $ 286,505 $ 142,692 $ 203,527 $ 1,455,952 $ 4,569,155 Current period charge-offs $ 74 $ 8,762 $ 5,380 $ 3,347 $ 2,051 $ 1,531 $ 7,090 $ 28,235 Past due loans and leases were as follows: 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 December 31, 2025 Loans held for sale $ 148 $ 150 $ 235 $ 533 $ 87,436 $ 87,969 $ 235 $ — $ 235 Term lending 44,613 18,406 44,972 107,991 2,398,786 2,506,777 11,378 44,903 56,281 Asset-based lending — — 22,164 22,164 607,153 629,317 — 27,277 27,277 Factoring 1,258 — — 1,258 212,630 213,888 — 1,170 1,170 Lease financing 4,348 721 4,139 9,208 127,297 136,505 — 4,174 4,174 SBA/USDA 4,059 3,744 18,828 26,631 493,830 520,461 69 18,820 18,889 Other commercial finance — — — — 140,229 140,229 — 437 437 Commercial finance 54,278 22,871 90,103 167,252 3,979,925 4,147,177 11,447 96,781 108,228 Consumer finance 1,383 691 602 2,676 129,369 132,045 602 — 602 Tax services — — — — 62,049 62,049 — — — Warehouse finance — — — — 641,669 641,669 — — — Total loans and leases held for investment 55,661 23,562 90,705 169,928 4,813,012 4,982,940 12,049 96,781 108,830 Total loans and leases $ 55,809 $ 23,712 $ 90,940 $ 170,461 $ 4,900,448 $ 5,070,909 $ 12,284 $ 96,781 $ 109,065 September 30, 2025 Loans held for sale $ 2,319 $ 1,860 $ 1,521 $ 5,700 $ 173,721 $ 179,421 $ 1,521 $ — $ 1,521 Term lending 29,283 8,869 30,734 68,886 2,233,654 2,302,540 4,420 38,959 43,379 Asset-based lending — — — — 593,265 593,265 — 24,327 24,327 Factoring — — — — 217,501 217,501 — 1,291 1,291 Lease financing 2,222 316 5,291 7,829 141,407 149,236 1,067 4,268 5,335 SBA/USDA — 8,876 17,808 26,684 484,804 511,488 7,413 12,571 19,984 Other commercial finance — — — — 149,939 149,939 — — — Commercial finance 31,505 18,061 53,833 103,399 3,820,570 3,923,969 12,900 81,416 94,316 Consumer finance 909 778 826 2,513 90,806 93,319 826 — 826 Tax services — — 2,477 2,477 55 2,532 2,477 — 2,477 Warehouse finance — — — — 645,186 645,186 — — — Total loans and leases held for investment 32,414 18,839 57,136 108,389 4,556,617 4,665,006 16,203 81,416 97,619 Total loans and leases $ 34,733 $ 20,699 $ 58,657 $ 114,089 $ 4,730,338 $ 4,844,427 $ 17,724 $ 81,416 $ 99,140 20 Table of Contents Nonaccrual loans and leases by year of origination were as follows: Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total Nonaccrual with No ACL December 31, 2025 2026 2025 2024 2023 2022 Prior Term lending $ — $ — $ 6,248 $ 15,341 $ 10,610 $ 12,704 $ — $ 44,903 $ 18,567 Asset-based lending — — — — — — 27,277 27,277 2,441 Factoring — — — — — — 1,170 1,170 244 Lease financing — — — 150 — 4,024 — 4,174 4,003 SBA/USDA — 446 5,635 12,596 — 143 — 18,820 1,794 Other commercial finance — — — 437 — — — 437 — Commercial finance — 446 11,883 28,524 10,610 16,871 28,447 96,781 27,049 Total nonaccrual loans and leases $ — $ 446 $ 11,883 $ 28,524 $ 10,610 $ 16,871 $ 28,447 $ 96,781 $ 27,049 Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total Nonaccrual with No ACL September 30, 2025 2025 2024 2023 2022 2021 Prior Term lending $ — $ 1,383 $ 23,220 $ 3,469 $ 10,887 $ — $ — $ 38,959 $ 18,072 Asset-based lending — — — — — — 24,327 24,327 2,110 Factoring — — — — — — 1,291 1,291 — Lease financing — — 150 — 3,511 607 — 4,268 3,985 SBA/USDA 221 4,605 7,675 — 22 48 — 12,571 — Commercial finance 221 5,988 31,045 3,469 14,420 655 25,618 81,416 24,167 Total nonaccrual loans and leases $ 221 $ 5,988 $ 31,045 $ 3,469 $ 14,420 $ 655 $ 25,618 $ 81,416 $ 24,167 21 Table of Contents Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows: Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total December 31, 2025 2026 2025 2024 2023 2022 Prior Loans held for sale $ — $ 66 $ 41 $ 101 $ 27 $ — $ — $ 235 Term lending — 1,062 10,312 — — 4 — 11,378 SBA/USDA — 69 — — — — — 69 Commercial finance — 1,131 10,312 — — 4 — 11,447 Consumer finance — 211 199 150 27 15 — 602 Total loans and leases held for investment — 1,342 10,511 150 27 19 — 12,049 Total 90 days or more delinquent and accruing $ — $ 1,408 $ 10,552 $ 251 $ 54 $ 19 $ — $ 12,284 Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total September 30, 2025 2025 2024 2023 2022 2021 Prior Loans held for sale $ 521 $ 835 $ 150 $ 15 $ — $ — $ — $ 1,521 Term lending — 2,942 — — — 1,478 — 4,420 Lease financing 277 — — 789 1 — — 1,067 SBA/USDA 1,139 495 5,683 — — 96 — 7,413 Commercial finance 1,416 3,437 5,683 789 1 1,574 — 12,900 Consumer finance 241 348 180 44 13 — — 826 Tax services 2,477 — — — — — — 2,477 Total loans and leases held for investment 4,134 3,785 5,863 833 14 1,574 — 16,203 Total 90 days or more delinquent and accruing $ 4,655 $ 4,620 $ 6,013 $ 848 $ 14 $ 1,574 $ — $ 17,724 Certain loans and leases 90 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) consumer loans exempt under regulatory rules from being classified as nonaccrual until later delinquency, usually 120 days past due. The following table provides the average recorded investment in nonaccrual loans and leases: Three Months Ended December 31, (Dollars in thousands) 2025 2024 Term lending $ 43,545 $ 23,208 Asset-based lending 26,443 591 Factoring 1,241 265 Lease financing 4,205 1,565 SBA/USDA 15,367 1,900 Other commercial finance 437 — Commercial finance 91,238 27,529 Total loans and leases $ 91,238 $ 27,529 The recognized interest income on the Company's nonaccrual loans and leases for the three months ended December 31, 2025 and 2024 was not significant. Modifications made to borrowers experiencing financial difficulty during the three months ended December 31, 2025 were $ 2.6 million 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, 2024 were $ 3.3 million in the commercial finance loan portfolio. 22 Table of Contents During the three months ended December 31, 2025, the Company had $ 1.0 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, 2025, $ 1.0 million of modifications granted during the current three month period were in the 60-89 days past due category. 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 during the three months ended December 31, 2024 were in the 60-89 days past due category. NOTE 5. EARNINGS PER COMMON SHARE ("EPS") The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation under the two-class method. Basic EPS is computed using the two-class method by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated using the more dilutive of the two-class method or the treasury stock method. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect upon vesting of performance share units ("PSUs") and restricted stock grants, and after the allocation of earnings to the participating securities. Antidilutive securities are disregarded in earnings per share calculations. Diluted EPS shown below reflects the two-class method, as diluted EPS under the two-class method was more dilutive than under the treasury stock method. 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, (Dollars in thousands, except per share data) 2025 2024 Basic income per common share: Net income attributable to Pathward Financial, Inc. $ 35,166 $ 29,967 Dividends and undistributed earnings allocated to participating securities ( 49 ) ( 124 ) Basic net earnings available to common stockholders 35,117 29,843 Undistributed earnings allocated to nonvested restricted stockholders 48 119 Reallocation of undistributed earnings to nonvested restricted stockholders ( 48 ) ( 118 ) Diluted net earnings available to common stockholders $ 35,117 $ 29,844 Total weighted-average basic common shares outstanding 22,312,973 24,221,697 Effect of dilutive securities (1) PSUs 68,487 58,674 Total effect of dilutive securities 68,487 58,674 Total weighted-average diluted common shares outstanding 22,381,460 24,280,371 Net earnings per common share: Basic earnings per common share $ 1.57 $ 1.23 Diluted earnings per common share (2) $ 1.57 $ 1.23 (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, 2025 and 2024, respectively, were 31,682 and 100,406 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. 23 Table of Contents NOTE 6. RENTAL EQUIPMENT, NET Rental equipment consists of the following: (Dollars in thousands) December 31, 2025 September 30, 2025 Computers and IT networking equipment $ 9,495 $ 11,723 Motor vehicles and other 133,983 141,101 Other furniture and equipment 24,587 26,040 Solar panels and equipment 118,142 111,447 Total 286,207 290,311 Accumulated depreciation ( 132,261 ) ( 131,530 ) Unamortized initial direct costs 587 665 Net book value $ 154,533 $ 159,446 Future minimum lease payments expected to be received for operating leases at December 31, 2025 were as follows: (Dollars in thousands) Remaining in 2026 $ 24,645 2027 26,982 2028 18,622 2029 12,992 2030 3,677 Thereafter 2,808 Total $ 89,726 24 Table of Contents NOTE 7. GOODWILL AND INTANGIBLE ASSETS The Company held a total of $ 297.9 million of goodwill at December 31, 2025. The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018. There have been no changes to the carrying amount of goodwill during the three months ended December 31, 2025. The changes in the carrying amount of the Company’s intangible assets were as follows: (Dollars in thousands) Trademark (1) Customer Relationships (2) All Others (3) Total September 30, 2025 $ 5,346 $ 4,111 $ 3,045 $ 12,502 Amortization during the period ( 274 ) ( 312 ) ( 132 ) ( 718 ) December 31, 2025 $ 5,072 $ 3,799 $ 2,913 $ 11,784 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 8,702 ) ( 55,621 ) ( 4,666 ) ( 68,989 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) December 31, 2025 $ 5,072 $ 3,799 $ 2,913 $ 11,784 September 30, 2024 $ 6,422 $ 6,566 $ 3,601 $ 16,589 Amortization during the period ( 269 ) ( 411 ) ( 132 ) ( 812 ) Write-offs and disposals during the period — ( 631 ) — ( 631 ) December 31, 2024 $ 6,153 $ 5,524 $ 3,469 $ 15,146 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 7,621 ) ( 53,896 ) ( 4,110 ) ( 65,627 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) December 31, 2024 $ 6,153 $ 5,524 $ 3,469 $ 15,146 (1) Book amortization period of 5 - 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 10 - 30 years. Amortized using the accelerated method. (3) Book amortization period of 3 - 20 years. Amortized using the straight line method. 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 2026 and subsequent fiscal years at December 31, 2025 was as follows: (Dollars in thousands) Remaining in 2026 $ 2,386 2027 2,484 2028 2,195 2029 1,577 2030 1,473 Thereafter 1,669 Total anticipated intangible amortization $ 11,784 There were no impairments to intangible assets during the three months ended December 31, 2025 and 2024. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations. 25 Table of Contents NOTE 8. OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES Operating lease right-of-use ("ROU") assets, included in other assets , were $ 22.0 million and $ 22.7 million at December 31, 2025 and September 30, 2025, respectively. Operating lease liabilities, included in accrued expenses and other liabilities , were $ 23.2 million and $ 24.0 million at December 31, 2025 and September 30, 2025, respectively. The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the three months ended December 31, 2025. Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2025 were as follows: (Dollars in thousands) Remaining in 2026 $ 2,575 2027 3,356 2028 3,447 2029 3,486 2030 3,036 Thereafter 10,071 Total undiscounted future minimum lease payments 25,971 Discount ( 2,723 ) Total operating lease liabilities $ 23,248 The weighted-average discount rate and remaining lease term for operating leases were as follows: December 31, 2025 September 30, 2025 Weighted-average discount rate 2.64 % 2.65 % Weighted-average remaining lease term (years) 7.74 7.97 The components of total lease costs for operating leases were as follows: Three Months Ended December 31, (Dollars in thousands) 2025 2024 Lease expense $ 894 $ 919 Short-term and variable lease cost 29 21 Sublease income ( 412 ) ( 352 ) Total lease cost for operating leases $ 511 $ 588 NOTE 9. STOCKHOLDERS' EQUITY Repurchase of Common Stock. The Company's Board of Directors authorized a share repurchase program to repurchase up to 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028. During the three months ended December 31, 2025 and 2024, the Company repurchased 651,804 and 701,860 shares, respectively, as part of the share repurchase program. Under the repurchase program, 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 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, 2025, 4,286,012 shares of common stock remained available for repurchase. 26 Table of Contents For the three months ended December 31, 2025 and 2024, the Company also repurchased 51,068 and 66,446 shares, or $ 3.5 million and $ 4.6 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock. Retirement of Treasury Stock. The Company accounts for the retirement of repurchased shares, including treasury stock, using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. The Company retired 70,215 and zero shares of common stock held in treasury during the three months ended December 31, 2025 and 2024. NOTE 10. STOCK COMPENSATION The Pathward Financial, Inc. 2023 Omnibus Incentive Plan permits the granting of various types of awards including but not limited to nonvested (restricted) shares and PSUs to certain officers and directors of the Company. Awards may be granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. In addition, beginning in fiscal year 2025, awards were made to certain employees as time-vesting restricted stock units settleable in shares ("RSUs"). These shares and RSUs generally vest at various times ranging from immediately to three years based on circumstances at time of grant. The grant date fair value is determined based on the fair market value of the Company’s stock on the grant date, determined in accordance with applicable accounting standards. Director shares are issued to the Company’s directors, and these shares have historically vested from immediately to up to one year from the grant date. The Company also grants selected executives PSU awards. The vesting of these awards is contingent on meeting company-wide performance goals, including earnings per share and total shareholder return. The awards generally vest over a period of three years and have payout levels ranging from a threshold of 50 % to a maximum of 200 %. Upon vesting, each PSU earned is converted into one share of common stock. The fair value of the PSUs (other than PSUs subject to a market condition) is determined by the dividend-adjusted fair value on the grant date for those awards subject to a performance condition. For those PSUs subject to a market condition, a simulation valuation is performed. Finally, awards of shares or RSUs may be made at other times during the fiscal year for new hire, promotion, or retention awards. 27 Table of Contents The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, RSUs and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the three months ended December 31, 2025. Number of Shares Weighted Average Fair Value at Grant Restricted Stock Awards Nonvested shares outstanding, September 30, 2025 81,697 $ 47.77 Granted — — Vested ( 60,903 ) 46.48 Forfeited or expired — — Nonvested shares outstanding, December 31, 2025 20,794 $ 51.51 RSUs Nonvested shares outstanding, September 30, 2025 92,620 $ 79.19 Granted 119,228 68.88 Vested ( 27,903 ) 79.48 Forfeited or expired ( 2,420 ) 73.49 Nonvested shares outstanding, December 31, 2025 181,525 $ 72.45 PSUs PSUs outstanding, September 30, 2025 142,366 $ 52.59 Granted 49,816 65.74 Adjustment for performance achievement (1) 15,901 38.94 Vested ( 71,934 ) 38.94 Forfeited or expired — — PSUs outstanding, December 31, 2025 136,149 $ 63.02 (1) The final performance was assessed after September 30, 2025, resulted in an achievement greater than target, and an additional 15,901 shares were allocated to the participants in the plan. 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. The fair value of nonvested (restricted) shares and PSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends where applicable. The Company has elected to record forfeitures as they occur. The Company recognized total stock-based compensation expense of $ 2.9 million and $ 1.6 million for the three months ended December 31, 2025 and 2024, respectively. This expense is recorded primarily within compensation and benefits on the Condensed Consolidated Statements of Operations. As of December 31, 2025, stock-based compensation expense not yet recognized in income totaled $ 16.9 million, which is expected to be recognized over a weighted average remaining period of 1.97 years. 28 Table of Contents NOTE 11. INCOME TAXES The Company recorded an income tax expense of $ 7.2 million for the three months ended December 31, 2025, resulting in an effective tax rate of 16.9 %, compared to an income tax expense of $ 6.0 million, or an effective tax rate of 16.6 %, for the three months ended December 31, 2024. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the effect of investment tax credits during fiscal year 2026. The Company's effective tax rate in the future will depend in part on actual investment tax credits generated from qualified renewable energy property. The table below compares the income tax expense components for the periods presented. Three Months Ended December 31, (Dollars in thousands) 2025 2024 Provision at statutory rate $ 8,896 $ 7,554 Tax-exempt income ( 150 ) ( 168 ) State income taxes 1,535 1,177 Interim period effective rate adjustment 2,679 1,803 Tax credit investments, net - federal ( 5,180 ) ( 3,167 ) 162(m) disallowance 176 55 Other, net ( 763 ) ( 1,249 ) Income tax expense $ 7,193 $ 6,005 Effective tax rate 16.9 % 16.6 % NOTE 12. REVENUE FROM CONTRACTS WITH CUSTOMERS Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 13. Segment Reporting to the Condensed Consolidated Financial Statements. (Dollars in thousands) Consumer Commercial Corporate Services/Other Consolidated Company Three Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 Net interest income (expense) (1) $ 70,892 $ 81,063 $ 49,820 $ 43,293 $ ( 1,374 ) $ 895 $ 119,338 $ 125,251 Noninterest income: Refund transfer product fees 355 410 — — — — 355 410 Refund advance and other tax fee income (1) 131 459 — — — — 131 459 Card and deposit fees 29,949 28,828 184 232 7 6 30,140 29,066 Rental income (1) — — 11,381 13,508 239 200 11,620 13,708 (Loss) on sale of securities (1) — — — — — ( 15,671 ) — ( 15,671 ) Gain on divestitures (1) — — — — — 16,404 — 16,404 Secondary market revenue (1) — 40 4,157 4,338 — — 4,157 4,378 Gain on sale of other (1) — — 488 531 — 456 488 987 Other income (1) 1,626 3,864 4,399 2,630 847 1,143 6,872 7,637 Total noninterest income 32,061 33,601 20,609 21,239 1,093 2,538 53,763 57,378 Revenue $ 102,953 $ 114,664 $ 70,429 $ 64,532 $ ( 281 ) $ 3,433 $ 173,101 $ 182,629 (1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities. 29 Table of Contents Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period; 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, 2025. Refund Transfer Product Fees. Refund transfer fees are specific to the Partner Solutions business line and reflect product fees offered by the Company through third-party tax preparers and tax preparation software providers where the Company acts as the partnering financial institution. A refund transfer allows a taxpayer to pay tax preparation and filing fees directly from their federal or state government tax refund, with the remainder of the refund being disbursed in accordance with the terms and conditions of the taxpayer agreement, which may include satisfaction of other disbursement obligations before going directly to the taxpayer via check, direct deposit, or prepaid card. Refund transfer fees are recognized by the Company immediately after the taxpayer's refund has been disbursed in accordance with the contract and are based on standalone pricing included within the terms and conditions. Certain expenses to tax preparation software providers are netted with refund transfer fee income as the Company is considered the agent in these contractual relationships. All refund transfer fees are recorded within the Consumer reporting segment. Card and Deposit Fees. Card fees relate to the Partner Solutions business line and consist of income from prepaid cards and merchant services, including interchange fees from prepaid cards processed through card association networks, merchant services and other card related services. Interchange rates are generally set by card association networks based on transaction volume and other factors. Since interchange fees are generated by cardholder activity, the Company recognizes the income as transactions occur. Fee income for merchant services and other card related services reflect account management and transaction fees charged to merchants for processing card association network transactions. The associated income is recognized as transactions occur or as services are performed. For the Company's internally managed prepaid card programs, fees are based on standalone pricing within the terms and conditions of the cardholder agreement. The Company is considered the principal of these relationships resulting in all fee income being presented on a gross basis within the Condensed Consolidated Statement of Operations. For the Company's sponsorship prepaid card programs where a third-party is considered the Program Manager, the fees are based on standalone pricing within the terms and conditions of the Program Agreement. For these relationships, the Company is considered the agent and certain expenses with the Program Manager, networks and associations are netted with card fee revenue. All card fee income is included in the Consumer reporting segment. Deposit fees relate to the Partner Solutions and Commercial Finance business lines and consist of income from banking and deposit-related services, including account services, overdraft protection, and wire transfers. Fee income for account services is recognized over the course of the month as the performance obligation is satisfied. Fee income for overdraft protection and wire transfers is recognized at the point in time when such event occurs. For partner solutions, the fees for account services and overdraft protection are based on standalone pricing within the terms and conditions of the Program Agreement with the sponsorship partner. For these relationships, the Company is considered the agent and certain expenses with the partner are netted with deposit fee revenue. For Commercial Finance, fees for wire transfers are based on standalone pricing within the terms and conditions of the customer deposit agreement. Bank and deposit fees for the Partner Solutions and Commercial Finance business lines are included in the Consumer and Commercial reporting segments, respectively. Also included within Card and Deposit Fees for the Consumer reporting segment are monthly servicing fees the Company recognizes for custodial deposits. This fee income is for services the Bank performs to maintain records of cardholder funds placed at one or more third-party banks insured by the Federal Deposit Insurance Corporation ("FDIC"). The servicing fee is typically reflective of the effective federal funds rate ("EFFR"). 30 Table of Contents NOTE 13. SEGMENT REPORTING An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker ("CODM") to appropriately allocate entity resources and evaluate performance. The Company has identified the CODM to be the Chief Executive Officer of Pathward Financial, Inc. Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The Company evaluated the listed operating segments based on their business processes, consumers, and variety of economic characteristics. The Partner Solutions business line is reported in the Consumer segment. The Commercial Finance business line is reported in the Commercial segment. The Corporate Services/Other segment includes certain shared services as well as treasury related functions such as the investment portfolio, warehouse finance, wholesale deposits, and borrowings. The CODM reviews the performance and aggregates resources based on various factors but primarily through the evaluation of income (loss) before income tax expense. The significant expenses that have been deemed meaningful to the segments and regularly reported to the CODM are summarized below. These expenses are directly attributable to each of the three business segments. Shared services are an area of focus for the Company and as such, the table below includes the significant selling, general, and administrative ("SG&A") allocations of such shared services. 31 Table of Contents The following table presents segment data for the Company: (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Three Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 Interest and dividend income $ 72,504 $ 83,374 $ 83,835 $ 74,614 $ ( 35,117 ) $ ( 29,631 ) $ 121,222 $ 128,357 Interest expense 1,612 2,311 34,015 31,321 ( 33,743 ) ( 30,526 ) 1,884 3,106 Net interest income (expense) 70,892 81,063 49,820 43,293 ( 1,374 ) 895 119,338 125,251 Provision for (reversal of) credit loss 2,724 10,724 510 7,831 ( 4 ) 106 3,230 18,661 Net interest income (expense) after provision for (reversal of) credit loss 68,168 70,339 49,310 35,462 ( 1,370 ) 789 116,108 106,590 Noninterest income 32,061 33,601 20,609 21,239 1,093 2,538 53,763 57,378 Noninterest expense Compensation and benefits 7,944 7,757 11,590 13,341 32,330 28,194 51,864 49,292 Building and software 2,918 2,225 2,400 2,271 7,262 5,210 12,580 9,706 Operating lease equipment depreciation — — 9,995 11,426 — — 9,995 11,426 Rate related card expenses 23,800 25,624 — — — — 23,800 25,624 Other card expenses 6,626 7,682 — — 11 8 6,637 7,690 Tax product expenses 145 142 — — — — 145 142 Loan expenses 1,078 1,116 4,655 3,289 — — 5,733 4,405 Legal and consulting 578 581 912 967 4,064 3,677 5,554 5,225 SG & A intercompany allocations 18,853 16,857 8,054 8,058 ( 26,907 ) ( 24,915 ) — — Consumer lending program expenses 124 4,238 — — — — 124 4,238 Other expenses 4,363 4,015 1,458 1,470 4,960 4,564 10,781 10,049 Total noninterest expense 66,429 70,237 39,064 40,822 21,720 16,738 127,213 127,797 Income (loss) before income tax expense 33,800 33,703 30,855 15,879 ( 21,997 ) ( 13,411 ) 42,658 36,171 Total assets 476,771 509,774 4,577,774 4,086,116 2,505,660 3,007,535 7,560,205 7,603,425 Total goodwill 87,145 87,145 210,783 210,783 — — 297,928 297,928 Total deposits 6,115,003 6,305,236 2,532 1,439 232,859 212,278 6,350,394 6,518,953 Expenses included in the Other Expenses line represent insignificant expenses to the various operating segments such as marketing, data processing, meals and travel, communications, office supplies, seminars and training, dues and subscriptions, regulatory expense, bank service charges, fraud and program losses, charitable giving, and intangible amortization that are included in income (loss) before income tax expense. In addition, interest expense includes intercompany interest paid through allocations to appropriately fund each of the operating segments. Management uses funds transfer pricing methodology to allocate the inter-segment interest appropriately, and as such, has determined the allocation to properly represent the interest rate environment at the Company. NOTE 14. FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy is as follows: Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date. 32 Table of Contents Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market. Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Debt Securities AFS and HTM . Debt securities AFS are recorded at fair value on a recurring basis and debt securities HTM are carried at amortized cost. The fair value of debt securities AFS, categorized primarily as Level 2, is recorded using prices obtained from independent asset pricing services that are based on observable transactions, but not quoted markets. Management reviews the prices obtained from independent asset pricing services for unusual fluctuations and compares to current market trading activity. Equity Securities. Marketable equity securities and certain non-marketable equity securities are recorded at fair value on a recurring basis. The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). 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 December 31, 2025 and September 30, 2025, 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. 33 Table of Contents 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 December 31, 2025 Debt securities AFS Corporate securities $ 22,500 $ — $ 22,500 $ — SBA securities 10,414 — 10,414 — Obligations of states and political subdivisions 162 — 162 — Non-bank qualified obligations of states and political subdivisions 183,234 — 183,234 — Asset-backed securities 133,125 — 133,125 — Mortgage-backed securities 960,612 — 960,612 — Total debt securities AFS $ 1,310,047 $ — $ 1,310,047 $ — Common equities and mutual funds (1) $ 4,675 $ 4,675 $ — $ — Non-marketable equity securities (2) $ 13,782 $ — $ — $ — September 30, 2025 Debt securities AFS Corporate securities $ 21,250 $ — $ 21,250 $ — SBA securities 10,769 — 10,769 — Obligations of states and political subdivisions 162 — 162 — Non-bank qualified obligations of states and political subdivisions 187,040 — 187,040 — Asset-backed securities 136,372 — 136,372 — Mortgage-backed securities 972,250 — 972,250 — Total debt securities AFS $ 1,327,843 $ — $ 1,327,843 $ — Common equities and mutual funds (1) $ 3,787 $ 3,787 $ — $ — Non-marketable equity securities (2) $ 13,237 $ — $ — $ — (1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2025 and September 30, 2025. (2) Consists of certain non-marketable equity securities that are measured at fair value using NAV as a practical expedient and are excluded from the fair value hierarchy. Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is individually evaluated for risk of credit loss and repayment is expected to be solely provided by the values of the underlying collateral, the Company measures fair value on a nonrecurring basis. Fair value is determined by the fair value of the underlying collateral less estimated costs to sell. 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 29 %. 34 Table of Contents 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 December 31, 2025 Loans and leases, net individually evaluated for credit loss Commercial finance $ 38,202 $ — $ — $ 38,202 Total loans and leases, net individually evaluated for credit loss 38,202 — — 38,202 Total $ 38,202 $ — $ — $ 38,202 September 30, 2025 Loans and leases, net individually evaluated for credit loss Commercial finance $ 32,321 $ — $ — $ 32,321 Total loans and leases, net individually evaluated for credit loss 32,321 — — 32,321 Total $ 32,321 $ — $ — $ 32,321 Quantitative Information About Level 3 Fair Value Measurements (Dollars in thousands) Fair Value at December 31, 2025 Fair Value at September 30, 2025 Valuation Technique Unobservable Input Range of Inputs Loans and leases, net individually evaluated for credit loss $ 38,202 $ 32,321 Market approach Appraised values (1) 3 % - 29 % (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs and other inputs in a range of 3 % to 29 %. 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, 2025 and September 30, 2025 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. However, since there is no active market for certain financial instruments of the Company, the estimates of fair value are subjective in nature, involve uncertainties, and include matters of significant judgment. Changes in assumptions as well as tax considerations could significantly affect the estimated values. Accordingly, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis. 35 Table of Contents The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company: December 31, 2025 (Dollars in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 331,217 $ 331,217 $ 331,217 $ — $ — Debt securities available for sale 1,310,047 1,310,047 — 1,310,047 — Debt securities held to maturity 28,662 25,089 — 25,089 — Common equities and mutual funds (1) 4,675 4,675 4,675 — — Non-marketable equity securities (1)(2) 21,193 21,193 — 7,411 — Loans held for sale 87,969 87,969 — 87,969 — Loans and leases 4,982,940 4,924,188 — — 4,924,188 Federal Reserve Bank and Federal Home Loan Bank stocks 24,310 24,310 — 24,310 — Accrued interest receivable 36,174 36,174 36,174 — — Financial liabilities Deposits 6,350,394 6,350,383 6,347,754 2,629 — Overnight federal funds purchased — — — — — Other short- and long-term borrowings 33,482 33,870 — 33,870 — Accrued interest payable 727 727 727 — — (1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 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. September 30, 2025 (Dollars in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 120,568 $ 120,568 $ 120,568 $ — $ — Debt securities available for sale 1,327,843 1,327,843 — 1,327,843 — Debt securities held to maturity 29,308 25,653 — 25,653 — Common equities and mutual funds (1) 3,787 3,787 3,787 — — Non-marketable equity securities (1)(2) 19,937 19,937 — 6,699 — Loans held for sale 179,421 179,421 — 179,421 — Loans and leases 4,665,006 4,599,269 — — 4,599,269 Federal Reserve Bank and Federal Home Loan Bank stocks 24,708 24,708 — 24,708 — Accrued interest receivable 38,520 38,520 38,520 — — Financial liabilities Deposits 5,886,947 5,886,914 5,884,311 2,604 — Overnight federal funds purchased 9,000 9,000 9,000 — — Other short- and long-term borrowings 33,456 33,667 — 33,667 — Accrued interest payable 188 188 188 — — (1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 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. NOTE 15. SUBSEQUENT EVENTS Management has evaluated subsequent events that occurred after December 31, 2025. 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, 2025. 36 Table of Contents