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) March 31, 2026 September 30, 2025 ASSETS (Unaudited) (Audited) Cash and cash equivalents $ 157,602 $ 120,568 Securities available for sale, at fair value 1,271,353 1,327,843 Securities held to maturity, at amortized cost (fair value $ 23,961 and $ 25,653 , respectively) 28,068 29,308 Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 25,480 24,708 Loans held for sale 53,072 179,421 Loans and leases 4,867,165 4,664,908 Allowance for credit losses ( 98,279 ) ( 53,319 ) Accrued interest receivable 36,127 38,520 Premises, furniture, and equipment, net 42,254 40,632 Rental equipment, net 146,190 159,446 Goodwill and intangible assets 308,741 310,430 Other assets 274,626 329,879 Total assets $ 7,112,399 $ 7,172,344 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Deposits $ 5,851,696 $ 5,886,947 Short-term borrowings 26,000 9,000 Long-term borrowings 33,508 33,456 Accrued expenses and other liabilities 350,518 385,487 Total liabilities 6,261,722 6,314,890 STOCKHOLDERS’ EQUITY Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at March 31, 2026 and September 30, 2025, respectively — — Common stock, $ 0.01 par value; 90,000,000 shares authorized, 21,378,602 and 22,842,785 shares issued, 21,327,534 and 22,772,570 shares outstanding at March 31, 2026 and September 30, 2025, respectively 213 228 Common stock, Nonvoting, $ 0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at March 31, 2026 and September 30, 2025, respectively — — Additional paid-in capital 655,128 648,330 Retained earnings 340,744 359,830 Accumulated other comprehensive loss ( 141,086 ) ( 145,461 ) Treasury stock, at cost, 51,068 and 70,215 common shares at March 31, 2026 and September 30, 2025, respectively ( 3,537 ) ( 4,882 ) Total equity attributable to parent 851,462 858,045 Noncontrolling interest ( 785 ) ( 591 ) Total stockholders’ equity 850,677 857,454 Total liabilities and stockholders’ equity $ 7,112,399 $ 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 March 31, Six Months Ended March 31, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Interest and dividend income: Loans and leases, including fees $ 114,829 $ 119,755 $ 222,604 $ 231,604 Mortgage-backed securities 7,590 8,580 15,402 17,566 Other investments 8,457 13,669 14,092 21,190 130,876 142,004 252,098 270,360 Interest expense: Deposits 4,274 4,086 4,480 4,861 FHLB advances and other borrowings 1,478 1,639 3,156 3,971 5,752 5,725 7,636 8,832 Net interest income 125,124 136,279 244,462 261,528 Provision for credit loss 45,616 35,266 48,846 53,927 Net interest income after provision for credit loss 79,508 101,013 195,616 207,601 Noninterest income: Refund transfer product fees 34,789 32,663 35,144 33,073 Refund advance and other tax fee income 57,514 48,585 57,645 49,110 Card and deposit fees 37,526 30,793 67,666 59,859 Rental income 10,947 13,200 22,567 26,908 (Loss) on sale of securities — ( 7,228 ) — ( 22,899 ) Gain (loss) on divestitures — ( 1,360 ) — 15,044 Secondary market revenue 3,574 15,378 7,731 19,755 Gain on sale of other 883 627 1,371 1,614 Other income 5,947 5,866 12,819 13,438 Total noninterest income 151,180 138,524 204,943 195,902 Noninterest expense: Compensation and benefits 55,405 51,905 107,269 101,197 Refund transfer product expense 9,127 8,475 9,200 8,583 Refund advance expense 1,425 1,265 1,497 1,299 Card processing 33,475 36,239 63,912 69,552 Building and software 12,201 10,306 24,781 20,013 Operating lease equipment depreciation 9,075 11,779 19,070 23,206 Legal and consulting 5,331 5,879 10,885 11,103 Intangible amortization 971 1,082 1,689 1,894 Impairment expense — 1,514 — 1,514 Other expense 16,446 19,733 32,366 37,612 Total noninterest expense 143,456 148,177 270,669 275,973 Income before income tax expense 87,232 91,360 129,890 127,530 Income tax expense 14,171 16,166 21,364 22,171 Net income before noncontrolling interest 73,061 75,194 108,526 105,359 Net income attributable to noncontrolling interest 151 237 450 436 Net income attributable to parent $ 72,910 $ 74,957 $ 108,076 $ 104,923 Earnings per common share: Basic $ 3.37 $ 3.16 $ 4.91 $ 4.37 Diluted $ 3.35 $ 3.14 $ 4.89 $ 4.35 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 March 31, Six Months Ended March 31, (Dollars in thousands) 2026 2025 2026 2025 Net income before noncontrolling interest $ 73,061 $ 75,194 $ 108,526 $ 105,359 Other comprehensive income (loss): Change in net unrealized gain (loss) on debt securities ( 6,572 ) 25,517 6,283 ( 36,823 ) Net loss realized on debt securities — 7,228 — 22,899 ( 6,572 ) 32,745 6,283 ( 13,924 ) Unrealized (loss) on currency translation ( 1,145 ) ( 22 ) ( 353 ) ( 2,039 ) Deferred income tax effect ( 1,627 ) 8,117 1,555 ( 3,046 ) Total other comprehensive income (loss) ( 6,090 ) 24,606 4,375 ( 12,917 ) Total comprehensive income 66,971 99,800 112,901 92,442 Total comprehensive income attributable to noncontrolling interest 151 237 450 436 Comprehensive income attributable to parent $ 66,820 $ 99,563 $ 112,451 $ 92,006 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, December 31, 2025 $ 222 $ 651,199 $ 346,529 $ ( 134,996 ) $ ( 8,419 ) $ 854,535 $ ( 823 ) $ 853,712 Cash dividends declared on common stock ($ 0.05 per share) — — ( 1,093 ) — — ( 1,093 ) — ( 1,093 ) Repurchases of common stock ( 9 ) 9 ( 72,720 ) — — ( 72,720 ) — ( 72,720 ) Retirement of treasury stock — — ( 4,882 ) — 4,882 — — — Stock compensation — 3,920 — — — 3,920 — 3,920 Total other comprehensive loss — — — ( 6,090 ) — ( 6,090 ) — ( 6,090 ) Net income — — 72,910 — — 72,910 151 73,061 Net distribution to noncontrolling interest — — — — — — ( 113 ) ( 113 ) Balance, March 31, 2026 $ 213 $ 655,128 $ 340,744 $ ( 141,086 ) $ ( 3,537 ) $ 851,462 $ ( 785 ) $ 850,677 Balance, December 31, 2024 $ 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 Six 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 ($ 0.10 per share) — — ( 2,202 ) — — ( 2,202 ) — ( 2,202 ) Issuance of common stock due to restricted stock 1 — — — — 1 — 1 Repurchases of common stock ( 16 ) 16 ( 120,078 ) — ( 3,537 ) ( 123,615 ) — ( 123,615 ) Retirement of treasury stock — — ( 4,882 ) — 4,882 — — — Stock compensation — 6,782 — — — 6,782 — 6,782 Total other comprehensive income — — — 4,375 — 4,375 — 4,375 Net income — — 108,076 — — 108,076 450 108,526 Net distribution to noncontrolling interest — — — — — — ( 644 ) ( 644 ) Balance, March 31, 2026 $ 213 $ 655,128 $ 340,744 $ ( 141,086 ) $ ( 3,537 ) $ 851,462 $ ( 785 ) $ 850,677 Balance, September 30, 2024 $ 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, March 31, 2025 $ 235 $ 643,888 $ 341,775 $ ( 166,311 ) $ ( 4,882 ) $ 814,705 $ ( 658 ) $ 814,047 See Notes to Condensed Consolidated Financial Statements. 5 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended March 31, (Dollars in thousands) 2026 2025 Cash flows from operating activities: Net income before noncontrolling interest $ 108,526 $ 105,359 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 26,108 30,330 Provision for credit loss 48,846 53,927 Provision for deferred taxes 4,311 11,919 Originations of loans held for sale ( 1,796,444 ) ( 1,377,073 ) Proceeds from sales of loans held for sale 1,960,041 1,146,702 Net change in loans held for sale 18,573 266,707 Net realized (gain) on loans held for sale ( 7,731 ) ( 19,755 ) Net realized loss on securities available for sale — 22,899 Net realized (gain) on divestitures — ( 15,044 ) Net realized (gain) on other ( 1,371 ) ( 1,614 ) Impairment on rental equipment — 1,514 Net change in accrued interest receivable 2,393 ( 5,696 ) Net change in other assets 6,187 ( 15,137 ) Net change in accrued expenses and other liabilities ( 34,969 ) ( 93,517 ) Stock compensation 6,782 5,072 Net cash provided by operating activities 341,252 116,593 Cash flows from investing activities: Purchases of securities available for sale — ( 2,280 ) Proceeds from sales of securities available for sale — 217,883 Proceeds from maturities of and principal collected on securities available for sale 62,617 77,087 Proceeds from maturities of and principal collected on securities held to maturity 1,171 1,668 Purchases of Federal Reserve Bank and Federal Home Loan Bank stock ( 135,367 ) ( 138,834 ) Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 134,595 150,572 Purchases of loans and leases ( 53,267 ) ( 166,651 ) Net change in loans and leases ( 127,613 ) ( 302,546 ) Purchases of premises, furniture, and equipment ( 6,542 ) ( 5,668 ) Purchases of rental equipment ( 86,416 ) ( 87,111 ) Proceeds from sales of rental equipment 6,443 8,308 Net change in rental equipment 175 368 Proceeds from surrender of bank-owned life insurance 45,050 — Proceeds from divestitures, net of transaction costs — 608,455 Proceeds from sale of other assets — 407 Proceeds from loans held for sale previously classified as portfolio loans — 146,158 Net cash provided by (used in) investing activities ( 159,154 ) 507,816 Cash flows from financing activities: Net change in deposits ( 35,251 ) ( 43,802 ) Net change in short-term borrowings 17,000 ( 377,000 ) Dividends paid on common stock ( 2,202 ) ( 2,392 ) Issuance of common stock due to restricted stock 1 — Repurchases of common stock ( 123,615 ) ( 102,447 ) Investment by (distributions to) noncontrolling interest ( 644 ) ( 817 ) Net cash (used in) financing activities ( 144,711 ) ( 526,458 ) Effect of exchange rate changes on cash ( 353 ) ( 2,039 ) Net change in cash and cash equivalents 37,034 95,912 Cash and cash equivalents at beginning of fiscal year 120,568 158,337 Cash and cash equivalents at end of fiscal period $ 157,602 $ 254,249 6 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended March 31, (Dollars in thousands) 2026 2025 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 7,638 $ 9,220 Income taxes 15,047 9,730 Franchise and other taxes 532 401 Supplemental schedule of non-cash investing activities: Transfers Held for sale to loans and leases $ 88 $ 22,686 Loans and leases to held for sale 47,860 130,011 Loans and leases to rental equipment 3,707 2,588 Rental equipment to loan and leases 78,908 60,398 Retirement of treasury stock 4,882 — 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 and six months ended March 31, 2026 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 annual 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 are limited to disclosure only. The Company intends to incorporate these updates to its income tax disclosures in its financial statements as of and for the fiscal year ended September 30, 2026. 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. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures. 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 March 31, 2026 Corporate securities $ 25,000 $ — $ ( 3,500 ) $ 21,500 SBA securities 11,425 — ( 1,092 ) 10,333 Obligations of states and political subdivisions 162 3 — 165 Non-bank qualified obligations of states and political subdivisions 202,501 14 ( 26,718 ) 175,797 Asset-backed securities 129,875 10 ( 1,886 ) 127,999 Mortgage-backed securities 1,086,392 82 ( 150,915 ) 935,559 Total debt securities AFS $ 1,455,355 $ 109 $ ( 184,111 ) $ 1,271,353 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 March 31, 2026 Non-bank qualified obligations of states and political subdivisions $ 26,264 $ — $ ( 3,906 ) $ 22,358 Mortgage-backed securities 1,804 — ( 201 ) 1,603 Total debt securities HTM $ 28,068 $ — $ ( 4,107 ) $ 23,961 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 March 31, 2026 Corporate securities $ — $ — $ 21,500 $ ( 3,500 ) $ 21,500 $ ( 3,500 ) SBA securities — — 10,332 ( 1,092 ) 10,332 ( 1,092 ) Non-bank qualified obligations of states and political subdivisions — — 174,258 ( 26,718 ) 174,258 ( 26,718 ) Asset-backed securities 60,121 ( 1,234 ) 63,297 ( 652 ) 123,418 ( 1,886 ) Mortgage-backed securities 1,501 — 923,813 ( 150,915 ) 925,314 ( 150,915 ) Total debt securities AFS $ 61,622 $ ( 1,234 ) $ 1,193,200 $ ( 182,877 ) $ 1,254,822 $ ( 184,111 ) 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 March 31, 2026 Non-bank qualified obligations of states and political subdivisions $ — $ — $ 22,358 $ ( 3,906 ) $ 22,358 $ ( 3,906 ) Mortgage-backed securities — — 1,603 ( 201 ) 1,603 ( 201 ) Total debt securities HTM $ — $ — $ 23,961 $ ( 4,107 ) $ 23,961 $ ( 4,107 ) 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 March 31, 2026 to September 30, 2025 was primarily driven by principal pay downs during the six months. At March 31, 2026, there were 146 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 March 31, 2026, 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) March 31, 2026 September 30, 2025 Debt Securities AFS Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 1,295 $ 1,305 $ 755 $ 760 Due after one year through five years 392 399 1,332 1,352 Due after five years through ten years 27,332 23,834 27,688 23,947 Due after ten years 339,944 310,256 358,948 329,534 368,963 335,794 388,723 355,593 Mortgage-backed securities 1,086,392 935,559 1,129,406 972,250 Total debt securities AFS $ 1,455,355 $ 1,271,353 $ 1,518,129 $ 1,327,843 Debt Securities HTM Due after ten years $ 26,264 $ 22,358 $ 27,373 $ 23,943 26,264 22,358 27,373 23,943 Mortgage-backed securities 1,804 1,603 1,935 1,710 Total debt securities HTM $ 28,068 $ 23,961 $ 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 March 31, 2026 and September 30, 2025. These equity securities are 'restricted' in that they can only be owned by member banks and can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FRB stock is less liquid than other marketable equity securities, and the cost approximates fair value. 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 $ 5.8 million and $ 5.0 million at March 31, 2026 and at September 30, 2025, respectively. These equity securities are ‘restricted’ in that they can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FHLB stock is less liquid than other marketable equity securities, and the cost approximates fair value. Equity Securities. The Company held $ 4.6 million and $ 3.8 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2026 and September 30, 2025, respectively. The Company recognized zero and $ 0.1 million in unrealized losses on marketable equity securities during the six months ended March 31, 2026 and 2025, respectively. No such securities were sold during the six months ended March 31, 2026. Non-marketable equity securities that are measured at fair value using net asset value ("NAV") as a practical expedient totaled $ 13.6 million and $ 13.2 million at March 31, 2026 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 $ 0.8 million in unrealized gains during the six months ended March 31, 2026 and 2025, respectively. No such securities were sold during the six months ended March 31, 2026. 12 Table of Contents Non-marketable equity securities without readily determinable fair value totaled $ 12.6 million and $ 12.0 million at March 31, 2026 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 six months ended March 31, 2025. 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, 2026. 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 six months ended March 31, 2026 and 2025. NOTE 4. LOANS AND LEASES, NET Loans and leases consist of the following: (Dollars in thousands) March 31, 2026 September 30, 2025 Term lending $ 2,501,855 $ 2,302,540 Asset-based lending 660,220 593,265 Factoring 213,269 217,501 Lease financing 126,902 149,236 SBA/USDA 536,637 511,488 Other commercial finance 73,694 149,939 Commercial finance 4,112,577 3,923,969 Consumer finance 90,912 93,319 Tax services 60,191 2,532 Warehouse finance 604,642 645,186 Total loans and leases 4,868,322 4,665,006 Net deferred loan origination costs (fees) ( 1,157 ) ( 98 ) Total gross loans and leases 4,867,165 4,664,908 Allowance for credit losses ( 98,279 ) ( 53,319 ) Total loans and leases, net $ 4,768,886 $ 4,611,589 During the six months ended March 31, 2026 and 2025, the Company originated $ 1.80 billion and $ 1.38 billion of commercial finance and consumer finance as held for sale, respectively. The Company sold held for sale loans resulting in proceeds of $ 1.96 billion and a $ 7.7 million gain on sale during the six months ended March 31, 2026. 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 . 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 March 31, Six Months Ended March 31, (Dollars in thousands) 2026 2025 2026 2025 Loans Purchased Loans held for investment: Commercial finance $ — $ — $ — $ 19,540 Warehouse finance 20,344 27,292 53,267 147,111 Total purchases $ 20,344 $ 27,292 $ 53,267 $ 166,651 Loans Sold Loans held for sale: Commercial finance $ 69,989 $ 182,667 $ 128,552 $ 248,469 Consumer finance 713,728 491,761 1,831,489 1,044,391 Total sales $ 783,717 $ 674,428 $ 1,960,041 $ 1,292,860 Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following: (Dollars in thousands) March 31, 2026 September 30, 2025 Minimum lease payments receivable $ 131,981 $ 157,271 Unguaranteed residual assets 6,391 6,785 Unamortized initial direct costs 44 68 Unearned income ( 11,470 ) ( 14,820 ) Total net investment in direct financing and sales-type leases $ 126,946 $ 149,304 The components of total lease income were as follows: Three Months Ended March 31, Six Months Ended March 31, (Dollars in thousands) 2026 2025 2026 2025 Interest income - loans and leases Interest income on net investments in direct financing and sales-type leases $ 1,973 $ 2,800 $ 3,921 $ 5,987 Leasing and equipment finance noninterest income Lease income from operating lease payments 10,608 12,930 21,892 26,379 Other (1) 1,962 1,139 3,545 2,446 Total leasing and equipment finance noninterest income 12,570 14,069 25,437 28,825 Total lease income $ 14,543 $ 16,869 $ 29,358 $ 34,812 (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 March 31, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 24,553 2027 61,933 2028 24,672 2029 13,245 2030 5,752 Thereafter 1,826 Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 131,981 Third-party residual value guarantees — Total carrying amount of minimum lease payments for direct financing and sales-type leases $ 131,981 The Company did not record any contingent rental income from direct financing and sales-type leases in the six months ended March 31, 2026. A number of factors that have affected the economic environment over the past few years have continued into 2026, 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, as well as geopolitical conflicts (including those in Iran and Ukraine). 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 March 31, 2026 Allowance for credit losses: Term lending $ 28,771 $ 11,486 $ ( 7,180 ) $ 667 $ 33,744 Asset-based lending 9,694 8,351 ( 6,085 ) 9 11,969 Factoring 3,784 1,073 — 117 4,974 Lease financing 1,037 ( 190 ) ( 15 ) 6 838 SBA/USDA 4,709 1,495 ( 1,981 ) 12 4,235 Other commercial finance 102 ( 66 ) — — 36 Commercial finance 48,097 22,149 ( 15,261 ) 811 55,796 Consumer finance 9,040 ( 1,312 ) ( 1,506 ) 367 6,589 Tax services 1,061 24,476 — 9,752 35,289 Warehouse finance 642 ( 37 ) — — 605 Total loans and leases 58,840 45,276 ( 16,767 ) 10,930 98,279 Unfunded commitments (1) 846 340 — — 1,186 Total $ 59,686 $ 45,616 $ ( 16,767 ) $ 10,930 $ 99,465 Three Months Ended March 31, 2025 Allowance for credit losses: Term lending $ 29,925 $ 1,384 $ ( 6,208 ) $ 1,118 $ 26,219 Asset-based lending 1,762 440 ( 172 ) — 2,030 Factoring 5,765 ( 767 ) ( 96 ) 32 4,934 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 (1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition. 16 Table of Contents (Dollars in thousands) Beginning Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Six Months Ended March 31, 2026 Allowance for credit losses: Term lending $ 28,345 $ 10,226 $ ( 8,261 ) $ 3,434 $ 33,744 Asset-based lending 7,650 10,389 ( 6,085 ) 15 11,969 Factoring 4,319 536 — 119 4,974 Lease financing 1,040 ( 228 ) ( 37 ) 63 838 SBA/USDA 4,807 1,868 ( 2,457 ) 17 4,235 Other commercial finance 90 ( 54 ) — — 36 Commercial finance 46,251 22,737 ( 16,840 ) 3,648 55,796 Consumer finance 6,422 2,810 ( 3,334 ) 691 6,589 Tax services — 23,078 — 12,211 35,289 Warehouse finance 646 ( 41 ) — — 605 Total loans and leases 53,319 48,584 ( 20,174 ) 16,550 98,279 Unfunded commitments (1) 924 262 — — 1,186 Total $ 54,243 $ 48,846 $ ( 20,174 ) $ 16,550 $ 99,465 Six Months Ended March 31, 2025 Allowance for credit losses: Term lending $ 30,394 $ 8,673 $ ( 14,583 ) $ 1,735 $ 26,219 Asset-based lending 1,356 846 ( 172 ) — 2,030 Factoring 5,757 ( 937 ) ( 170 ) 284 4,934 Lease financing 1,189 1,127 ( 1,082 ) 9 1,243 Insurance premium finance — 91 ( 93 ) 2 — SBA/USDA 3,273 1,606 ( 906 ) 48 4,021 Other commercial finance 607 ( 223 ) — — 384 Commercial finance 42,576 11,183 ( 17,006 ) 2,078 38,831 Consumer finance 28,669 14,984 ( 14,981 ) 963 29,635 Tax services 2 27,479 ( 741 ) 7,041 33,781 Warehouse finance 518 125 — — 643 Total loans and leases 71,765 53,771 ( 32,728 ) 10,082 102,890 Unfunded commitments (1) 695 156 — — 851 Total $ 72,460 $ 53,927 $ ( 32,728 ) $ 10,082 $ 103,741 (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) March 31, 2026 September 30, 2025 Term lending $ 45,471 $ 33,042 Asset-based lending 21,973 24,273 Factoring 1,984 — Lease financing 3,962 3,985 SBA/USDA 666 6,147 Commercial finance (1) 74,056 67,447 Total $ 74,056 $ 67,447 (1) For commercial finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets. 17 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 $ 98.0 million and $ 107.7 million at March 31, 2026 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 $ 90.9 million and $ 60.2 million at March 31, 2026, respectively, and $ 93.3 million and $ 2.5 million at September 30, 2025 , respectively. 18 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 March 31, 2026 2026 2025 2024 2023 2022 Prior Term lending Pass $ 516,856 $ 637,643 $ 217,616 $ 228,868 $ 81,938 $ 76,235 $ — $ 1,759,156 Watch 43,756 166,651 207,328 65,311 2,758 28,361 — 514,165 Special mention — 51,299 11,783 801 1,096 4,755 — 69,734 Substandard 2,100 21,135 26,530 62,344 11,996 26,233 — 150,338 Doubtful — — 362 818 2,962 4,320 — 8,462 Total 562,712 876,728 463,619 358,142 100,750 139,904 — 2,501,855 Current period charge-offs — — 2,375 988 1,240 3,658 — 8,261 Asset-based lending Pass — — — — — — 299,174 299,174 Watch — — — — — — 304,962 304,962 Special mention — — — — — — 31,163 31,163 Substandard — — — — — — 17,135 17,135 Doubtful — — — — — — 7,786 7,786 Total — — — — — — 660,220 660,220 Current period charge-offs — — — — — — 6,085 6,085 Factoring Pass — — — — — — 166,314 166,314 Watch — — — — — — 42,399 42,399 Special mention — — — — — — 1,772 1,772 Substandard — — — — — — 1,427 1,427 Doubtful — — — — — — 1,357 1,357 Total — — — — — — 213,269 213,269 Current period charge-offs — — — — — — — — Lease financing Pass 14,553 38,223 15,200 30,390 1,475 2,296 — 102,137 Watch 456 3,980 4,474 389 — 27 — 9,326 Special mention — — 254 — 302 299 — 855 Substandard — 2,712 — 5,036 908 5,883 — 14,539 Doubtful 45 — — — — — — 45 Total 15,054 44,915 19,928 35,815 2,685 8,505 — 126,902 Current period charge-offs — — — 15 — 22 — 37 SBA/USDA Pass 70,432 88,391 29,474 71,200 109,248 49,065 — 417,810 Watch 333 2,697 31,879 — 13,384 3,102 — 51,395 Special mention 355 952 1,785 — — 299 — 3,391 Substandard — 3,459 3,822 11,278 11,137 33,711 — 63,407 Doubtful — — 538 — — 96 — 634 Total 71,120 95,499 67,498 82,478 133,769 86,273 — 536,637 Current period charge-offs — 224 668 1,565 — — — 2,457 Other commercial finance Pass 1,950 7,760 9,491 — — 54,070 — 73,271 Substandard — — — 423 — — — 423 Total 1,950 7,760 9,491 423 — 54,070 — 73,694 Current period charge-offs — — — — — — — — Warehouse finance Pass — — — — — — 604,642 604,642 Total — — — — — — 604,642 604,642 Current period charge-offs — — — — — — — — Total loans and leases 19 Table of Contents Pass 603,791 772,017 271,781 330,458 192,661 181,666 1,070,130 3,422,504 Watch 44,545 173,328 243,681 65,700 16,142 31,490 347,361 922,247 Special mention 355 52,251 13,822 801 1,398 5,353 32,935 106,915 Substandard 2,100 27,306 30,352 79,081 24,041 65,827 18,562 247,269 Doubtful 45 — 900 818 2,962 4,416 9,143 18,284 Total $ 650,836 $ 1,024,902 $ 560,536 $ 476,858 $ 237,204 $ 288,752 $ 1,478,131 $ 4,717,219 Current period charge-offs $ — $ 224 $ 3,043 $ 2,568 $ 1,240 $ 3,680 $ 6,085 $ 16,840 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 20 Table of Contents Watch — — 2,418 — — — — 2,418 Substandard — — 451 — — — — 451 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 21 Table of Contents 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 March 31, 2026 Loans held for sale $ — $ — $ — $ — $ 53,072 $ 53,072 $ — $ — $ — Term lending 86,289 3,131 52,847 142,267 2,359,588 2,501,855 25,790 43,619 69,409 Asset-based lending — 2,401 16,079 18,480 641,740 660,220 — 21,333 21,333 Factoring — — — — 213,269 213,269 — 2,783 2,783 Lease financing 3,244 — 3,942 7,186 119,716 126,902 — 4,021 4,021 SBA/USDA 1,604 4,306 15,923 21,833 514,804 536,637 60 19,267 19,327 Other commercial finance — — — — 73,694 73,694 — 423 423 Commercial finance 91,137 9,838 88,791 189,766 3,922,811 4,112,577 25,850 91,446 117,296 Consumer finance 985 492 417 1,894 89,018 90,912 417 — 417 Tax services 1,454 — — 1,454 58,737 60,191 — — — Warehouse finance — — — — 604,642 604,642 — — — Total loans and leases held for investment 93,576 10,330 89,208 193,114 4,675,208 4,868,322 26,267 91,446 117,713 Total loans and leases $ 93,576 $ 10,330 $ 89,208 $ 193,114 $ 4,728,280 $ 4,921,394 $ 26,267 $ 91,446 $ 117,713 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 22 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 March 31, 2026 2026 2025 2024 2023 2022 Prior Term lending $ — $ 719 $ 3,965 $ 26,582 $ 1,815 $ 10,538 $ — $ 43,619 $ 26,313 Asset-based lending — — — — — — 21,333 21,333 3,281 Factoring — — — — — — 2,783 2,783 438 Lease financing — — — 50 — 3,971 — 4,021 3,962 SBA/USDA — 1,720 4,193 13,307 — 47 — 19,267 — Other commercial finance — — — 423 — — — 423 — Commercial finance — 2,439 8,158 40,362 1,815 14,556 24,116 91,446 33,994 Total nonaccrual loans and leases $ — $ 2,439 $ 8,158 $ 40,362 $ 1,815 $ 14,556 $ 24,116 $ 91,446 $ 33,994 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 23 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 March 31, 2026 2026 2025 2024 2023 2022 Prior Loans held for sale $ — $ — $ — $ — $ — $ — $ — $ — Term lending — — — 24,896 6 888 — 25,790 SBA/USDA — — 60 — — — — 60 Commercial finance — — 60 24,896 6 888 — 25,850 Consumer finance 5 161 163 80 8 — — 417 Total loans and leases held for investment 5 161 223 24,976 14 888 — 26,267 Total 90 days or more delinquent and accruing $ 5 $ 161 $ 223 $ 24,976 $ 14 $ 888 $ — $ 26,267 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 March 31, Six Months Ended March 31, (Dollars in thousands) 2026 2025 2026 2025 Term lending $ 44,403 $ 27,521 $ 43,974 $ 25,365 Asset-based lending 21,561 530 24,002 555 Factoring 1,578 1,398 1,410 831 Lease financing 4,074 4,887 4,140 3,226 SBA/USDA 21,777 3,096 18,572 2,498 Other commercial finance 538 — 512 — Commercial finance 93,931 37,432 92,610 32,475 Total loans and leases $ 93,931 $ 37,432 $ 92,610 $ 32,475 The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2026 and 2025 was not significant. Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2026 were $ 0.5 million and $ 3.0 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 and six months ended March 31, 2025 were $ 5.9 million and $ 9.1 million, respectively, in the commercial finance loan portfolio. 24 Table of Contents During the six months ended March 31, 2026, the Company had $ 2.1 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, 2026, $ 2.1 million of modifications granted during the current six month period were in the 30-59 days past due category. 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 six months ended March 31, 2025 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 March 31, Six Months Ended March 31, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Basic income per common share: Net income attributable to Pathward Financial, Inc. $ 72,910 $ 74,957 $ 108,076 $ 104,923 Dividends and undistributed earnings allocated to participating securities ( 70 ) ( 264 ) ( 130 ) ( 402 ) Basic net earnings available to common stockholders 72,840 74,693 107,946 104,521 Undistributed earnings allocated to nonvested restricted stockholders 69 260 127 393 Reallocation of undistributed earnings to nonvested restricted stockholders ( 69 ) ( 259 ) ( 126 ) ( 392 ) Diluted net earnings available to common stockholders $ 72,840 $ 74,694 $ 107,947 $ 104,522 Total weighted-average basic common shares outstanding 21,612,033 23,657,145 21,965,316 23,941,980 Effect of dilutive securities (1) PSUs 108,189 118,878 100,030 97,040 Total effect of dilutive securities 108,189 118,878 100,030 97,040 Total weighted-average diluted common shares outstanding 21,720,222 23,776,023 22,065,346 24,039,020 Net earnings per common share: Basic earnings per common share $ 3.37 $ 3.16 $ 4.91 $ 4.37 Diluted earnings per common share (2) $ 3.35 $ 3.14 $ 4.89 $ 4.35 (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 March 31, 2026 and 2025, respectively, were 20,794 and 83,665 weighted average shares 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, 2026 and 2025, respectively, were 26,327 and 92,172 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. 25 Table of Contents NOTE 6. RENTAL EQUIPMENT, NET Rental equipment consists of the following: (Dollars in thousands) March 31, 2026 September 30, 2025 Computers and IT networking equipment $ 7,727 $ 11,723 Motor vehicles and other 127,702 141,101 Other furniture and equipment 22,559 26,040 Solar panels and equipment 116,708 111,447 Total 274,696 290,311 Accumulated depreciation ( 129,025 ) ( 131,530 ) Unamortized initial direct costs 519 665 Net book value $ 146,190 $ 159,446 Future minimum lease payments expected to be received for operating leases at March 31, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 16,660 2027 27,490 2028 19,133 2029 13,502 2030 3,955 Thereafter 2,820 Total $ 83,560 26 Table of Contents NOTE 7. GOODWILL AND INTANGIBLE ASSETS The Company held a total of $ 297.9 million of goodwill at March 31, 2026. 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 six months ended March 31, 2026. 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 ( 548 ) ( 877 ) ( 264 ) ( 1,689 ) March 31, 2026 $ 4,798 $ 3,234 $ 2,781 $ 10,813 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 8,976 ) ( 56,186 ) ( 4,798 ) ( 69,960 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) March 31, 2026 $ 4,798 $ 3,234 $ 2,781 $ 10,813 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 ) March 31, 2025 $ 5,884 $ 4,871 $ 3,309 $ 14,064 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 7,890 ) ( 54,549 ) ( 4,270 ) ( 66,709 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) March 31, 2025 $ 5,884 $ 4,871 $ 3,309 $ 14,064 (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 six months of fiscal 2026 and subsequent fiscal years at March 31, 2026 was as follows: (Dollars in thousands) Remaining in 2026 $ 1,414 2027 2,482 2028 2,193 2029 1,577 2030 1,478 Thereafter 1,669 Total anticipated intangible amortization $ 10,813 There were no impairments to intangible assets during the six months ended March 31, 2026 and 2025. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations. 27 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 $ 21.9 million and $ 22.7 million at March 31, 2026 and September 30, 2025, respectively. Operating lease liabilities, included in accrued expenses and other liabilities , were $ 23.2 million and $ 24.0 million at March 31, 2026 and September 30, 2025, respectively. The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the six months ended March 31, 2026. Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at March 31, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 1,799 2027 3,497 2028 3,591 2029 3,633 2030 3,426 Thereafter 9,879 Total undiscounted future minimum lease payments 25,825 Discount ( 2,631 ) Total operating lease liabilities $ 23,194 The weighted-average discount rate and remaining lease term for operating leases were as follows: March 31, 2026 September 30, 2025 Weighted-average discount rate 2.67 % 2.65 % Weighted-average remaining lease term (years) 7.44 7.97 The components of total lease costs for operating leases were as follows: Three Months Ended March 31, Six Months Ended March 31, (Dollars in thousands) 2026 2025 2026 2025 Lease expense $ 908 $ 998 $ 1,802 $ 1,917 Short-term and variable lease cost 28 23 57 44 Sublease income ( 399 ) ( 351 ) ( 811 ) ( 703 ) Total lease cost for operating leases $ 537 $ 670 $ 1,048 $ 1,258 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 six months ended March 31, 2026 and 2025, the Company repurchased 1,507,005 and 1,277,664 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 March 31, 2026, 3,430,811 shares of common stock remained available for repurchase. 28 Table of Contents For the six months ended March 31, 2026 and 2025, 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 six months ended March 31, 2026 and 2025, respectively. 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. 29 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 six months ended March 31, 2026. Number of Shares Weighted Average Fair Value at Grant Restricted Stock Awards Nonvested shares outstanding, September 30, 2025 81,697 $ 47.77 Granted 13,200 92.85 Vested ( 74,103 ) 54.74 Forfeited or expired — — Nonvested shares outstanding, March 31, 2026 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 ( 4,903 ) 72.79 Nonvested shares outstanding, March 31, 2026 179,042 $ 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, March 31, 2026 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 $ 6.8 million and $ 5.1 million for the six months ended March 31, 2026 and 2025, respectively. This expense is recorded primarily within compensation and benefits on the Condensed Consolidated Statements of Operations. As of March 31, 2026, stock-based compensation expense not yet recognized in income totaled $ 14.2 million, which is expected to be recognized over a weighted average remaining period of 1.79 years. 30 Table of Contents NOTE 11. INCOME TAXES The Company recorded an income tax expense of $ 21.4 million for the six months ended March 31, 2026, resulting in an effective tax rate of 16.5 %, compared to an income tax expense of $ 22.2 million, or an effective tax rate of 17.4 %, for the six months ended March 31, 2025. 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. Six Months Ended March 31, (Dollars in thousands) 2026 2025 Provision at statutory rate $ 27,182 $ 26,690 Tax-exempt income ( 291 ) ( 319 ) State income taxes 4,921 4,773 Interim period effective rate adjustment ( 1,991 ) ( 4,375 ) Tax credit investments, net - federal ( 7,161 ) ( 3,694 ) Research tax credit ( 1,303 ) — 162(m) disallowance 865 605 Other, net ( 858 ) ( 1,509 ) Income tax expense $ 21,364 $ 22,171 Effective tax rate 16.5 % 17.4 % 31 Table of Contents 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 March 31, 2026 2025 2026 2025 2026 2025 2026 2025 Net interest income (1) $ 66,183 $ 75,633 $ 45,375 $ 41,987 $ 13,566 $ 18,659 $ 125,124 $ 136,279 Noninterest income: Refund transfer product fees 34,789 32,663 — — — — 34,789 32,663 Refund advance and other tax fee income (1) 57,514 48,585 — — — — 57,514 48,585 Card and deposit fees 37,330 30,583 185 202 11 8 37,526 30,793 Rental income (1) — — 10,707 12,990 240 210 10,947 13,200 (Loss) on sale of securities (1) — — — — — ( 7,228 ) — ( 7,228 ) (Loss) on divestitures (1) — — — — — ( 1,360 ) — ( 1,360 ) Secondary market revenue (1) — ( 25 ) 3,574 2,074 — 13,329 3,574 15,378 Gain on sale of other (1) — — 883 627 — — 883 627 Other income (1) 1,638 2,221 3,293 2,225 1,016 1,420 5,947 5,866 Total noninterest income 131,271 114,027 18,642 18,118 1,267 6,379 151,180 138,524 Revenue $ 197,454 $ 189,660 $ 64,017 $ 60,105 $ 14,833 $ 25,038 $ 276,304 $ 274,803 Six Months Ended March 31, Net interest income (expense) (1) $ 137,075 $ 156,694 $ 95,195 $ 85,280 $ 12,192 $ 19,554 $ 244,462 $ 261,528 Noninterest income: Refund transfer product fees 35,144 33,073 — — — — 35,144 33,073 Refund advance and other tax fee income (1) 57,645 49,110 — — — — 57,645 49,110 Card and deposit fees 67,279 59,411 369 434 18 14 67,666 59,859 Rental income (1) — — 22,088 26,498 479 410 22,567 26,908 (Loss) on sale of securities (1) — — — — — ( 22,899 ) — ( 22,899 ) Gain on divestitures (1) — — — — — 15,044 — 15,044 Secondary market revenue (1) — 15 7,731 6,412 — 13,328 7,731 19,755 Gain on sale of other (1) — — 1,371 1,158 — 456 1,371 1,614 Other income (1) 3,264 6,020 7,692 4,855 1,863 2,563 12,819 13,438 Total noninterest income 163,332 147,629 39,251 39,357 2,360 8,916 204,943 195,902 Revenue $ 300,407 $ 304,323 $ 134,446 $ 124,637 $ 14,552 $ 28,470 $ 449,405 $ 457,430 (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. 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 six months ended March 31, 2026. 32 Table of Contents 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"). 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. 33 Table of Contents 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. The following table presents segment data for the Company: (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Three Months Ended March 31, 2026 2025 2026 2025 2026 2025 2026 2025 Interest and dividend income $ 77,109 $ 87,326 $ 81,463 $ 73,055 $ ( 27,696 ) $ ( 18,377 ) $ 130,876 $ 142,004 Interest expense 10,926 11,693 36,088 31,068 ( 41,262 ) ( 37,036 ) 5,752 5,725 Net interest income 66,183 75,633 45,375 41,987 13,566 18,659 125,124 136,279 Provision for (reversal of) credit loss 23,164 31,739 22,489 3,508 ( 37 ) 19 45,616 35,266 Net interest income after provision for (reversal of) credit loss 43,019 43,894 22,886 38,479 13,603 18,640 79,508 101,013 Noninterest income 131,271 114,027 18,642 18,118 1,267 6,379 151,180 138,524 Noninterest expense Compensation and benefits 8,729 7,868 10,295 12,209 36,381 31,828 55,405 51,905 Building and software 2,956 2,399 2,343 2,353 6,902 5,554 12,201 10,306 Operating lease equipment depreciation — — 9,075 11,779 — — 9,075 11,779 Rate related card expenses 25,419 28,380 — — — — 25,419 28,380 Other card expenses 8,044 7,846 — — 12 13 8,056 7,859 Tax product expenses 10,551 9,740 — — — — 10,551 9,740 Loan expenses 3 8 6,207 3,491 — — 6,210 3,499 Legal and consulting 530 551 756 994 4,045 4,334 5,331 5,879 SG & A intercompany allocations 18,204 17,830 8,703 7,085 ( 26,907 ) ( 24,915 ) — — Consumer lending program expenses 153 5,657 — — — — 153 5,657 Other expenses 4,542 4,499 1,372 2,777 5,141 5,897 11,055 13,173 Total noninterest expense 79,131 84,778 38,751 40,688 25,574 22,711 143,456 148,177 Income (loss) before income tax expense 95,159 73,143 2,777 15,909 ( 10,704 ) 2,308 87,232 91,360 Total assets 355,864 431,962 4,511,809 3,975,353 2,244,726 2,587,471 7,112,399 6,994,786 Total goodwill 87,145 87,145 210,783 210,783 — — 297,928 297,928 Total deposits 5,588,918 5,633,529 174 140 262,604 185,540 5,851,696 5,819,209 Six Months Ended March 31, Interest and dividend income $ 149,613 $ 170,699 $ 165,298 $ 147,669 $ ( 62,813 ) $ ( 48,008 ) $ 252,098 $ 270,360 Interest expense 12,538 14,005 70,103 62,389 ( 75,005 ) ( 67,562 ) 7,636 8,832 Net interest income 137,075 156,694 95,195 85,280 12,192 19,554 244,462 261,528 Provision for (reversal of) credit loss 25,888 42,463 22,999 11,339 ( 41 ) 125 48,846 53,927 Net interest income after provision for (reversal of) credit loss 111,187 114,231 72,196 73,941 12,233 19,429 195,616 207,601 Noninterest income 163,332 147,629 39,251 39,357 2,360 8,916 204,943 195,902 Noninterest expense Compensation and benefits 16,673 15,625 21,885 25,550 68,711 60,022 107,269 101,197 Building and software 5,874 4,624 4,743 4,624 14,164 10,765 24,781 20,013 Operating lease equipment depreciation — — 19,070 23,206 — — 19,070 23,206 Rate related card expenses 49,219 54,004 — — — — 49,219 54,004 Other card expenses 14,670 15,528 — — 23 20 14,693 15,548 Tax product expenses 10,697 9,882 — — — — 10,697 9,882 Loan expenses 1,081 1,124 10,862 6,780 — — 11,943 7,904 Legal and consulting 1,108 1,132 1,668 1,961 8,109 8,010 10,885 11,103 34 Table of Contents SG & A intercompany allocations 37,057 34,687 16,757 15,143 ( 53,814 ) ( 49,830 ) — — Consumer lending program expenses 276 9,895 — — — — 276 9,895 Other expenses 8,905 8,514 2,830 4,245 10,101 10,462 21,836 23,221 Total noninterest expense 145,560 155,015 77,815 81,509 47,294 39,449 270,669 275,973 Income (loss) before income tax expense 128,959 106,845 33,632 31,789 ( 32,701 ) ( 11,104 ) 129,890 127,530 Total assets 355,864 431,962 4,511,809 3,975,353 2,244,726 2,587,471 7,112,399 6,994,786 Total goodwill 87,145 87,145 210,783 210,783 — — 297,928 297,928 Total deposits 5,588,918 5,633,529 174 140 262,604 185,540 5,851,696 5,819,209 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. 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). 35 Table of Contents 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, 2026 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. 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, 2026 Debt securities AFS Corporate securities $ 21,500 $ — $ 21,500 $ — SBA securities 10,333 — 10,333 — Obligations of states and political subdivisions 165 — 165 — Non-bank qualified obligations of states and political subdivisions 175,797 — 175,797 — Asset-backed securities 127,999 — 127,999 — Mortgage-backed securities 935,559 — 935,559 — Total debt securities AFS $ 1,271,353 $ — $ 1,271,353 $ — Common equities and mutual funds (1) $ 4,615 $ 4,615 $ — $ — Non-marketable equity securities (2) $ 13,640 $ — $ — $ — 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 March 31, 2026 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 42 %. 36 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 March 31, 2026 Loans and leases, net individually evaluated for credit loss Commercial finance $ 29,635 $ — $ — $ 29,635 Total loans and leases, net individually evaluated for credit loss 29,635 — — 29,635 Total $ 29,635 $ — $ — $ 29,635 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 March 31, 2026 Fair Value at September 30, 2025 Valuation Technique Unobservable Input Range of Inputs Loans and leases, net individually evaluated for credit loss $ 29,635 $ 32,321 Market approach Appraised values (1) 3 % - 42 % (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 42 %. 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 March 31, 2026 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. 37 Table of Contents The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company: March 31, 2026 (Dollars in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 157,602 $ 157,602 $ 157,602 $ — $ — Debt securities available for sale 1,271,353 1,271,353 — 1,271,353 — Debt securities held to maturity 28,068 23,961 — 23,961 — Common equities and mutual funds (1) 4,615 4,615 4,615 — — Non-marketable equity securities (1)(2) 21,051 21,051 — 7,411 — Loans held for sale 53,072 53,072 — 53,072 — Loans and leases 4,868,322 4,822,116 — — 4,822,116 Federal Reserve Bank and Federal Home Loan Bank stocks 25,480 25,480 — 25,480 — Accrued interest receivable 36,127 36,127 36,127 — — Financial liabilities Deposits 5,851,696 5,851,618 5,849,056 2,562 — Overnight federal funds purchased 26,000 26,000 26,000 — — Other short- and long-term borrowings 33,508 34,023 — 34,023 — Accrued interest payable 186 186 186 — — (1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2026. (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 March 31, 2026. 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 March 31, 2026. 38 Table of Contents