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) June 30, 2026 September 30, 2025 ASSETS (Unaudited) (Audited) Cash and cash equivalents $ 149,412 $ 120,568 Securities available for sale, at fair value 1,219,616 1,327,843 Securities held to maturity, at amortized cost (fair value $ 23,273 and $ 25,653 , respectively) 27,101 29,308 Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 30,915 24,708 Loans held for sale 97,288 179,421 Loans and leases 5,107,841 4,664,908 Allowance for credit losses ( 109,780 ) ( 53,319 ) Accrued interest receivable 36,966 38,520 Premises, furniture, and equipment, net 43,313 40,632 Rental equipment, net 152,451 159,446 Goodwill and intangible assets 308,023 310,430 Other assets 251,227 329,879 Total assets $ 7,314,373 $ 7,172,344 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Deposits $ 5,950,309 $ 5,886,947 Short-term borrowings 167,500 9,000 Long-term borrowings 33,533 33,456 Accrued expenses and other liabilities 311,885 385,487 Total liabilities 6,463,227 6,314,890 STOCKHOLDERS’ EQUITY Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at June 30, 2026 and September 30, 2025, respectively — — Common stock, $ 0.01 par value; 90,000,000 shares authorized, 21,074,970 and 22,842,785 shares issued, 21,023,902 and 22,772,570 shares outstanding at June 30, 2026 and September 30, 2025, respectively 210 228 Common stock, Nonvoting, $ 0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at June 30, 2026 and September 30, 2025, respectively — — Additional paid-in capital 657,682 648,330 Retained earnings 339,252 359,830 Accumulated other comprehensive loss ( 142,706 ) ( 145,461 ) Treasury stock, at cost, 51,068 and 70,215 common shares at June 30, 2026 and September 30, 2025, respectively ( 3,537 ) ( 4,882 ) Total equity attributable to parent 850,901 858,045 Noncontrolling interest 245 ( 591 ) Total stockholders’ equity 851,146 857,454 Total liabilities and stockholders’ equity $ 7,314,373 $ 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 June 30, Nine Months Ended June 30, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Interest and dividend income: Loans and leases, including fees $ 101,289 $ 108,766 $ 323,893 $ 340,370 Mortgage-backed securities 7,396 8,337 22,798 25,903 Other investments 5,348 6,489 19,440 27,679 114,033 123,592 366,131 393,952 Interest expense: Deposits 140 287 4,620 5,147 FHLB advances and other borrowings 980 992 4,136 4,963 1,120 1,279 8,756 10,110 Net interest income 112,913 122,313 357,375 383,842 Provision for credit loss 28,309 9,278 77,155 63,205 Net interest income after provision for credit loss 84,604 113,035 280,220 320,637 Noninterest income: Refund transfer product fees 11,209 9,846 46,353 42,919 Refund advance and other tax fee income 696 307 58,341 49,416 Card and deposit fees 34,570 37,342 102,236 97,201 Rental income 9,607 12,913 32,174 39,822 (Loss) on sale of securities — — — ( 22,899 ) Gain on divestitures — — — 15,044 Secondary market revenue 13,969 7,144 21,700 26,900 Gain (loss) on sale of other ( 51 ) 394 1,320 2,007 Other income 6,731 5,496 19,550 18,934 Total noninterest income 76,731 73,442 281,674 269,344 Noninterest expense: Compensation and benefits 52,361 48,559 159,630 149,755 Refund transfer product expense 2,758 2,818 11,958 11,401 Refund advance expense 90 ( 74 ) 1,587 1,225 Card processing 30,671 36,197 94,583 105,750 Building and software 13,054 10,633 37,835 30,646 Operating lease equipment depreciation 7,545 11,569 26,615 34,775 Legal and consulting 6,122 11,094 17,007 22,197 Intangible amortization 718 798 2,407 2,693 Impairment expense 177 1,077 177 2,590 Other expense 15,625 16,651 47,991 54,264 Total noninterest expense 129,121 139,322 399,790 415,296 Income before income tax expense 32,214 47,155 162,104 174,685 Income tax expense 3,062 4,795 24,426 26,966 Net income before noncontrolling interest 29,152 42,360 137,678 147,719 Net income attributable to noncontrolling interest 183 213 633 650 Net income attributable to parent $ 28,969 $ 42,147 $ 137,045 $ 147,069 Earnings per common share: Basic $ 1.37 $ 1.83 $ 6.32 $ 6.20 Diluted $ 1.37 $ 1.81 $ 6.29 $ 6.17 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 June 30, Nine Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Net income before noncontrolling interest $ 29,152 $ 42,360 $ 137,678 $ 147,719 Other comprehensive income (loss): Change in net unrealized gain (loss) on debt securities ( 29 ) 6,028 6,254 ( 30,795 ) Net loss realized on debt securities — — — 22,899 ( 29 ) 6,028 6,254 ( 7,896 ) Unrealized gain (loss) on currency translation ( 1,672 ) 2,069 ( 2,025 ) 30 Deferred income tax effect ( 81 ) 1,495 1,474 ( 1,551 ) Total other comprehensive income (loss) ( 1,620 ) 6,602 2,755 ( 6,315 ) Total comprehensive income 27,532 48,962 140,433 141,404 Total comprehensive income attributable to noncontrolling interest 183 213 633 650 Comprehensive income attributable to parent $ 27,349 $ 48,749 $ 139,800 $ 140,754 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, March 31, 2026 $ 213 $ 655,128 $ 340,744 $ ( 141,086 ) $ ( 3,537 ) $ 851,462 $ ( 785 ) $ 850,677 Cash dividends declared on common stock ($ 0.05 per share) — — ( 1,059 ) — — ( 1,059 ) — ( 1,059 ) Repurchases of common stock ( 3 ) 3 ( 28,279 ) — — ( 28,279 ) — ( 28,279 ) Stock compensation — 2,551 — — — 2,551 — 2,551 Total other comprehensive loss — — — ( 1,620 ) — ( 1,620 ) — ( 1,620 ) Joint venture membership interest divestiture — — ( 1,123 ) — — ( 1,123 ) — ( 1,123 ) Net income — — 28,969 — — 28,969 183 29,152 Net investment by noncontrolling interest — — — — — — 847 847 Balance, June 30, 2026 $ 210 $ 657,682 $ 339,252 $ ( 142,706 ) $ ( 3,537 ) $ 850,901 $ 245 $ 851,146 Balance, March 31, 2025 $ 235 $ 643,888 $ 341,775 $ ( 166,311 ) $ ( 4,882 ) $ 814,705 $ ( 658 ) $ 814,047 Cash dividends declared on common stock ($ 0.05 per share) — — ( 1,151 ) — — ( 1,151 ) — ( 1,151 ) Repurchases of common stock ( 5 ) 5 ( 45,450 ) — — ( 45,450 ) — ( 45,450 ) Stock compensation — 2,151 — — — 2,151 — 2,151 Total other comprehensive income (loss) — — — 6,602 — 6,602 — 6,602 Net income — — 42,147 — — 42,147 213 42,360 Net distribution to noncontrolling interest — — — — — — ( 411 ) ( 411 ) Balance, June 30, 2025 $ 230 $ 646,044 $ 337,321 $ ( 159,709 ) $ ( 4,882 ) $ 819,004 $ ( 856 ) $ 818,148 Nine 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 ($ 0.15 per share) — — ( 3,261 ) — — ( 3,261 ) — ( 3,261 ) Issuance of common stock due to restricted stock 1 — — — — 1 — 1 Repurchases of common stock ( 19 ) 19 ( 148,357 ) — ( 3,537 ) ( 151,894 ) — ( 151,894 ) Retirement of treasury stock — — ( 4,882 ) — 4,882 — — — Stock compensation — 9,333 — — — 9,333 — 9,333 Total other comprehensive income — — — 2,755 — 2,755 — 2,755 Joint venture membership interest divestiture — — ( 1,123 ) ( 1,123 ) ( 1,123 ) Net income — — 137,045 — — 137,045 633 137,678 Net investment by noncontrolling interest — — — — — — 203 203 Balance, June 30, 2026 $ 210 $ 657,682 $ 339,252 $ ( 142,706 ) $ ( 3,537 ) $ 850,901 $ 245 $ 851,146 Balance, September 30, 2024 $ 248 $ 638,803 $ 337,058 $ ( 153,394 ) $ ( 249 ) $ 822,466 $ ( 277 ) $ 822,189 Cash dividends declared on common stock ($ 0.15 per share) — — ( 3,542 ) — — ( 3,542 ) — ( 3,542 ) Repurchases of common stock ( 18 ) 18 ( 143,264 ) — ( 4,633 ) ( 147,897 ) — ( 147,897 ) Stock compensation — 7,223 — — — 7,223 — 7,223 Total other comprehensive loss — — — ( 6,315 ) — ( 6,315 ) — ( 6,315 ) Net income — — 147,069 — — 147,069 650 147,719 Net distribution to noncontrolling interest — — — — — — ( 1,229 ) ( 1,229 ) Balance, June 30, 2025 $ 230 $ 646,044 $ 337,321 $ ( 159,709 ) $ ( 4,882 ) $ 819,004 $ ( 856 ) $ 818,148 See Notes to Condensed Consolidated Financial Statements. 5 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended June 30, (Dollars in thousands) 2026 2025 Cash flows from operating activities: Net income before noncontrolling interest $ 137,678 $ 147,719 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 36,910 45,423 Provision for credit loss 77,155 63,205 Provision for deferred taxes 5,145 16,256 Originations of loans held for sale ( 2,748,526 ) ( 1,925,438 ) Proceeds from sales of loans held for sale 2,912,592 2,014,236 Net change in loans held for sale 27,691 ( 1,791 ) Net realized (gain) on loans held for sale ( 21,700 ) ( 26,900 ) Net realized loss on securities available for sale — 22,899 Net realized (gain) on divestitures — ( 15,044 ) Net realized (gain) on other ( 1,320 ) ( 2,007 ) Impairment on rental equipment — 2,590 Net change in accrued interest receivable 1,554 ( 8,611 ) Net change in other assets 29,373 ( 29,182 ) Net change in accrued expenses and other liabilities ( 72,682 ) ( 163,623 ) Stock compensation 9,333 7,223 Net cash provided by operating activities 393,203 146,955 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 114,236 127,261 Proceeds from maturities of and principal collected on securities held to maturity 2,092 2,676 Purchases of Federal Reserve Bank and Federal Home Loan Bank stock ( 199,920 ) ( 210,159 ) Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 193,712 216,722 Purchases of loans and leases ( 119,647 ) ( 193,795 ) Net change in loans and leases ( 349,686 ) ( 587,597 ) Purchases of premises, furniture, and equipment ( 9,921 ) ( 8,339 ) Purchases of rental equipment ( 115,140 ) ( 113,018 ) Proceeds from sales of rental equipment 9,750 20,692 Net change in rental equipment 229 389 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 — 408 Proceeds from loans held for sale previously classified as portfolio loans — 146,158 Net cash provided by (used in) investing activities ( 429,245 ) 225,456 Cash flows from financing activities: Net change in deposits 63,362 142,234 Net change in short-term borrowings 158,500 ( 262,001 ) Dividends paid on common stock ( 3,261 ) ( 3,542 ) Issuance of common stock due to restricted stock 1 — Repurchases of common stock ( 151,894 ) ( 147,897 ) Investment by (distributions to) noncontrolling interest 203 ( 1,229 ) Net cash provided by (used in) financing activities 66,911 ( 272,435 ) Effect of exchange rate changes on cash ( 2,025 ) 30 Net change in cash and cash equivalents 28,844 100,006 Cash and cash equivalents at beginning of fiscal year 120,568 158,337 Cash and cash equivalents at end of fiscal period $ 149,412 $ 258,343 6 Table of Contents PATHWARD FINANCIAL, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended June 30, (Dollars in thousands) 2026 2025 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 8,232 $ 9,939 Income taxes 22,471 14,345 Franchise and other taxes 754 580 Supplemental schedule of non-cash investing activities: Transfers Held for sale to loans and leases $ 88 $ 27,155 Loans and leases to held for sale 88,223 130,011 Loans and leases to rental equipment 3,959 3,683 Rental equipment to loan and leases 90,607 83,309 Recognition of operating lease ROU assets, net of measurements 920 — Joint venture membership interest divestiture 1,123 — 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 nine months ended June 30, 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 June 30, 2026 Corporate securities $ 25,000 $ — $ ( 1,875 ) $ 23,125 SBA securities 11,081 — ( 1,181 ) 9,900 Obligations of states and political subdivisions 123 1 — 124 Non-bank qualified obligations of states and political subdivisions 197,620 7 ( 25,841 ) 171,786 Asset-backed securities 109,525 14 ( 1,424 ) 108,115 Mortgage-backed securities 1,060,299 60 ( 153,793 ) 906,566 Total debt securities AFS $ 1,403,648 $ 82 $ ( 184,114 ) $ 1,219,616 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 June 30, 2026 Non-bank qualified obligations of states and political subdivisions $ 25,564 $ — $ ( 3,632 ) $ 21,932 Mortgage-backed securities 1,537 — ( 196 ) 1,341 Total debt securities HTM $ 27,101 $ — $ ( 3,828 ) $ 23,273 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 June 30, 2026 Corporate securities $ — $ — $ 23,125 $ ( 1,875 ) $ 23,125 $ ( 1,875 ) SBA securities — — 9,900 ( 1,181 ) 9,900 ( 1,181 ) Non-bank qualified obligations of states and political subdivisions — — 170,274 ( 25,841 ) 170,274 ( 25,841 ) Asset-backed securities 42,420 ( 1,038 ) 61,336 ( 386 ) 103,756 ( 1,424 ) Mortgage-backed securities 2,627 ( 6 ) 895,404 ( 153,787 ) 898,031 ( 153,793 ) Total debt securities AFS $ 45,047 $ ( 1,044 ) $ 1,160,039 $ ( 183,070 ) $ 1,205,086 $ ( 184,114 ) 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 June 30, 2026 Non-bank qualified obligations of states and political subdivisions $ — $ — $ 21,932 $ ( 3,632 ) $ 21,932 $ ( 3,632 ) Mortgage-backed securities — — 1,342 ( 196 ) 1,342 ( 196 ) Total debt securities HTM $ — $ — $ 23,274 $ ( 3,828 ) $ 23,274 $ ( 3,828 ) 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 June 30, 2026 to September 30, 2025 was primarily driven by principal pay downs during the nine months. At June 30, 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 June 30, 2026, there was no allowance for credit losses ("ACL") for debt securities AFS. 11 Table of Contents 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 mortgage-backed securities ("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. (Dollars in thousands) June 30, 2026 September 30, 2025 Debt Securities AFS Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 1,275 $ 1,280 $ 755 $ 760 Due after one year through five years 353 356 1,332 1,352 Due after five years through ten years 27,173 25,303 27,688 23,947 Due after ten years 314,548 286,111 358,948 329,534 343,349 313,050 388,723 355,593 Mortgage-backed securities 1,060,299 906,566 1,129,406 972,250 Total debt securities AFS $ 1,403,648 $ 1,219,616 $ 1,518,129 $ 1,327,843 Debt Securities HTM Due after ten years $ 25,564 $ 21,932 $ 27,373 $ 23,943 25,564 21,932 27,373 23,943 Mortgage-backed securities 1,537 1,341 1,935 1,710 Total debt securities HTM $ 27,101 $ 23,273 $ 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 June 30, 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 $ 11.2 million and $ 5.0 million at June 30, 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 $ 4.8 million and $ 3.8 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2026 and September 30, 2025, respectively. The Company recognized zero and $ 0.1 million in unrealized losses on marketable equity securities during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026. 12 Table of Contents Non-marketable equity securities that are measured at fair value using net asset value ("NAV") as a practical expedient totaled $ 13.5 million and $ 13.2 million at June 30, 2026 and September 30, 2025, respectively. These securities are held within other assets on the Condensed Consolidated Statements of Financial Condition. The Company recognized $ 1.7 million and $ 1.1 million in unrealized gains during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026. Non-marketable equity securities without readily determinable fair value totaled $ 14.9 million and $ 12.0 million at June 30, 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 nine months ended June 30, 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 nine months ended June 30, 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 $ 0.2 million and no impairment for such investments for the nine months ended June 30, 2026 and 2025, respectively. NOTE 4. LOANS AND LEASES, NET Loans and leases consist of the following: (Dollars in thousands) June 30, 2026 September 30, 2025 Term lending $ 2,666,977 $ 2,302,540 Asset-based lending 697,687 593,265 Factoring 220,026 217,501 Lease financing 120,583 149,236 SBA/USDA 567,986 511,488 Other commercial finance 49,510 149,939 Commercial finance 4,322,769 3,923,969 Consumer finance 99,430 93,319 Tax services 34,770 2,532 Warehouse finance 647,611 645,186 Total loans and leases 5,104,580 4,665,006 Net deferred loan origination costs (fees) 3,261 ( 98 ) Total gross loans and leases 5,107,841 4,664,908 Allowance for credit losses ( 109,780 ) ( 53,319 ) Total loans and leases, net $ 4,998,061 $ 4,611,589 During the nine months ended June 30, 2026 and 2025, the Company originated $ 2.75 billion and $ 1.93 billion of commercial finance and consumer finance as held for sale, respectively. The Company sold held for sale loans resulting in proceeds of $ 2.91 billion and a $ 21.7 million gain on sale during the nine months ended June 30, 2026. The Company sold held for sale loans resulting in proceeds of $ 2.16 billion and a $ 26.9 million gain on sale during the nine months ended June 30, 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 June 30, Nine Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Loans Purchased Loans held for investment: Commercial finance $ — $ 1,271 $ — $ 20,811 Warehouse finance 66,380 25,873 119,647 172,984 Total purchases $ 66,380 $ 27,144 $ 119,647 $ 193,795 Loans Sold Loans held for sale: Commercial finance $ 144,109 $ 100,909 $ 272,661 $ 349,378 Consumer finance 808,442 505,779 2,639,931 1,811,016 Total sales $ 952,551 $ 606,688 $ 2,912,592 $ 2,160,394 Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following: (Dollars in thousands) June 30, 2026 September 30, 2025 Minimum lease payments receivable $ 125,185 $ 157,271 Unguaranteed residual assets 6,313 6,785 Unamortized initial direct costs 40 68 Unearned income ( 10,915 ) ( 14,820 ) Total net investment in direct financing and sales-type leases $ 120,623 $ 149,304 The components of total lease income were as follows: Three Months Ended June 30, Nine Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Interest income - loans and leases Interest income on net investments in direct financing and sales-type leases $ 1,630 $ 2,444 $ 5,551 $ 8,431 Leasing and equipment finance noninterest income Lease income from operating lease payments 9,281 12,751 31,173 39,130 Other (1) 333 747 3,878 3,193 Total leasing and equipment finance noninterest income 9,614 13,498 35,051 42,323 Total lease income $ 11,244 $ 15,942 $ 40,602 $ 50,754 (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 June 30, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 12,834 2027 63,024 2028 25,806 2029 14,367 2030 6,483 Thereafter 2,671 Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 125,185 Third-party residual value guarantees — Total carrying amount of minimum lease payments for direct financing and sales-type leases $ 125,185 The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 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 lowering the target federal funds rate at the end of 2024 and the end of 2025. 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 June 30, 2026 Allowance for credit losses: Term lending $ 33,744 $ 13,486 $ ( 6,178 ) $ 419 $ 41,471 Asset-based lending 11,969 7,445 ( 8,617 ) 19 10,816 Factoring 4,974 9,392 ( 1,490 ) 29 12,905 Lease financing 838 232 — 29 1,099 SBA/USDA 4,235 3,276 ( 124 ) 23 7,410 Other commercial finance 36 64 — — 100 Commercial finance 55,796 33,895 ( 16,409 ) 519 73,801 Consumer finance 6,589 ( 373 ) ( 1,303 ) 285 5,198 Tax services 35,289 ( 6,035 ) ( 1,000 ) 1,879 30,133 Warehouse finance 605 43 — — 648 Total loans and leases 98,279 27,530 ( 18,712 ) 2,683 109,780 Unfunded commitments (1) 1,186 779 — — 1,965 Total $ 99,465 $ 28,309 $ ( 18,712 ) $ 2,683 $ 111,745 Three Months Ended June 30, 2025 Allowance for credit losses: Term lending $ 26,219 $ 3,514 $ ( 1,333 ) $ 976 $ 29,376 Asset-based lending 2,030 5,844 ( 539 ) — 7,335 Factoring 4,934 516 ( 464 ) 391 5,377 Lease financing 1,243 219 ( 344 ) 12 1,130 SBA/USDA 4,021 1,427 ( 421 ) 1 5,028 Other commercial finance 384 ( 195 ) — — 189 Commercial finance 38,831 11,325 ( 3,101 ) 1,380 48,435 Consumer finance 29,635 2,613 ( 6,381 ) 600 26,467 Tax services 33,781 ( 4,728 ) ( 554 ) 1,930 30,429 Warehouse finance 643 21 — — 664 Total loans and leases 102,890 9,231 ( 10,036 ) 3,910 105,995 Unfunded commitments (1) 851 47 — — 898 Total $ 103,741 $ 9,278 $ ( 10,036 ) $ 3,910 $ 106,893 (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 Nine Months Ended June 30, 2026 Allowance for credit losses: Term lending $ 28,345 $ 23,712 $ ( 14,439 ) $ 3,853 $ 41,471 Asset-based lending 7,650 17,834 ( 14,702 ) 34 10,816 Factoring 4,319 9,928 ( 1,490 ) 148 12,905 Lease financing 1,040 4 ( 37 ) 92 1,099 SBA/USDA 4,807 5,144 ( 2,581 ) 40 7,410 Other commercial finance 90 10 — — 100 Commercial finance 46,251 56,632 ( 33,249 ) 4,167 73,801 Consumer finance 6,422 2,437 ( 4,637 ) 976 5,198 Tax services — 17,043 ( 1,000 ) 14,090 30,133 Warehouse finance 646 2 — — 648 Total loans and leases 53,319 76,114 ( 38,886 ) 19,233 109,780 Unfunded commitments (1) 924 1,041 — — 1,965 Total $ 54,243 $ 77,155 $ ( 38,886 ) $ 19,233 $ 111,745 Nine Months Ended June 30, 2025 Allowance for credit losses: Term lending $ 30,394 $ 12,187 $ ( 15,916 ) $ 2,711 $ 29,376 Asset-based lending 1,356 6,690 ( 711 ) — 7,335 Factoring 5,757 ( 421 ) ( 634 ) 675 5,377 Lease financing 1,189 1,346 ( 1,426 ) 21 1,130 Insurance premium finance — 91 ( 93 ) 2 — SBA/USDA 3,273 3,033 ( 1,327 ) 49 5,028 Other commercial finance 607 ( 418 ) — — 189 Commercial finance 42,576 22,508 ( 20,107 ) 3,458 48,435 Consumer finance 28,669 17,597 ( 21,362 ) 1,563 26,467 Tax services 2 22,751 ( 1,295 ) 8,971 30,429 Warehouse finance 518 146 — — 664 Total loans and leases 71,765 63,002 ( 42,764 ) 13,992 105,995 Unfunded commitments (1) 695 203 — — 898 Total $ 72,460 $ 63,205 $ ( 42,764 ) $ 13,992 $ 106,893 (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) June 30, 2026 September 30, 2025 Term lending $ 70,295 $ 33,042 Asset-based lending 24,169 24,273 Factoring 17,663 — Lease financing 3,467 3,985 SBA/USDA 3,860 6,147 Other commercial finance 414 — Commercial finance (1) 119,868 67,447 Total $ 119,868 $ 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 $ 92.4 million and $ 107.7 million at June 30, 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 $ 99.4 million and $ 34.8 million at June 30, 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 June 30, 2026 2026 2025 2024 2023 2022 Prior Term lending Pass $ 824,199 $ 383,074 $ 186,282 $ 138,913 $ 66,517 $ 62,129 $ — $ 1,661,114 Watch 50,369 241,902 79,598 17,860 4,177 29,773 — 423,679 Special mention — 89,136 155,932 48,696 792 7,037 — 301,593 Substandard 3,037 150,890 19,062 52,113 11,611 26,910 — 263,623 Doubtful — 270 1,291 11,969 3,405 33 — 16,968 Total 877,605 865,272 442,165 269,551 86,502 125,882 — 2,666,977 Current period charge-offs — — 5,106 1,048 1,639 6,646 — 14,439 Asset-based lending Pass — — — — — — 327,307 327,307 Watch — — — — — — 329,098 329,098 Special mention — — — — — — 14,801 14,801 Substandard — — — — — — 22,845 22,845 Doubtful — — — — — — 3,636 3,636 Total — — — — — — 697,687 697,687 Current period charge-offs — — — — — — 14,702 14,702 Factoring Pass — — — — — — 159,440 159,440 Watch — — — — — — 33,997 33,997 Special mention — — — — — — 8,462 8,462 Substandard — — — — — — 18,127 18,127 Total — — — — — — 220,026 220,026 Current period charge-offs — — — — — — 1,490 1,490 Lease financing Pass 16,676 34,673 13,898 27,993 1,156 2,021 — 96,417 Watch 1,769 3,559 3,749 230 — 72 — 9,379 Special mention — — 234 — 115 96 — 445 Substandard — 3,145 — 4,799 670 5,689 — 14,303 Doubtful 39 — — — — — — 39 Total 18,484 41,377 17,881 33,022 1,941 7,878 — 120,583 Current period charge-offs — — — 15 — 22 — 37 SBA/USDA Pass 112,711 82,731 29,128 70,406 108,798 34,369 — 438,143 Watch 1,878 5,362 31,673 — 19,274 3,552 — 61,739 Special mention 204 639 389 — — 15,348 — 16,580 Substandard 355 5,525 5,043 11,658 5,054 23,319 — 50,954 Doubtful — 310 164 — — 96 — 570 Total 115,148 94,567 66,397 82,064 133,126 76,684 — 567,986 Current period charge-offs — 224 792 1,565 — — — 2,581 Other commercial finance Pass 1,900 7,760 — — — 39,441 — 49,101 Substandard — — — 409 — — — 409 Total 1,900 7,760 — 409 — 39,441 — 49,510 Current period charge-offs — — — — — — — — Warehouse finance Pass — — — — — — 647,611 647,611 Total — — — — — — 647,611 647,611 Current period charge-offs — — — — — — — — Total loans and leases Pass 955,486 508,238 229,308 237,312 176,471 137,960 1,134,358 3,379,133 19 Table of Contents Watch 54,016 250,823 115,020 18,090 23,451 33,397 363,095 857,892 Special mention 204 89,775 156,555 48,696 907 22,481 23,263 341,881 Substandard 3,392 159,560 24,105 68,979 17,335 55,918 40,972 370,261 Doubtful 39 580 1,455 11,969 3,405 129 3,636 21,213 Total $ 1,013,137 $ 1,008,976 $ 526,443 $ 385,046 $ 221,569 $ 249,885 $ 1,565,324 $ 4,970,380 Current period charge-offs $ — $ 224 $ 5,898 $ 2,628 $ 1,639 $ 6,668 $ 16,192 $ 33,249 Amortized Cost Basis (Dollars in thousands) Term Loans and Leases by Origination Year Revolving Loans and Leases Total September 30, 2025 2025 2024 2023 2022 2021 Prior Term lending Pass $ 935,599 $ 399,968 $ 298,678 $ 99,820 $ 43,216 $ 35,971 $ — $ 1,813,252 Watch 65,674 71,326 68,737 7,222 28,882 13,357 — 255,198 Special mention 56 68,989 3,762 826 11,078 65 — 84,776 Substandard 29,792 24,666 37,845 14,137 16,050 19,995 — 142,485 Doubtful — 564 774 3,854 1,615 22 — 6,829 Total 1,031,121 565,513 409,796 125,859 100,841 69,410 — 2,302,540 Current period charge-offs — 7,818 4,492 3,257 991 419 — 16,977 Asset-based lending Pass — — — — — — 301,128 301,128 Watch — — — — — — 233,541 233,541 Special mention — — — — — — 31,702 31,702 Substandard — — — — — — 24,730 24,730 Doubtful — — — — — — 2,164 2,164 Total — — — — — — 593,265 593,265 Current period charge-offs — — — — — — 5,611 5,611 Factoring Pass — — — — — — 179,352 179,352 Watch — — — — — — 36,218 36,218 Special mention — — — — — — 394 394 Substandard — — — — — — 1,537 1,537 Total — — — — — — 217,501 217,501 Current period charge-offs — — — — — — 1,479 1,479 Lease financing Pass 43,710 20,259 36,483 2,270 1,089 4,439 — 108,250 Watch 13,587 5,181 13 635 1,059 — — 20,475 Special mention — 941 223 — 181 44 — 1,389 Substandard 7,190 — 5,375 1,377 4,088 905 — 18,935 Doubtful — — 150 — 37 — — 187 Total 64,487 26,381 42,244 4,282 6,454 5,388 — 149,236 Current period charge-offs — — 320 — 1,005 101 — 1,426 Insurance premium finance Current period charge-offs — 62 31 — — — — 93 SBA/USDA Pass 79,928 61,063 93,459 136,075 19,674 30,962 — 421,161 Watch 2,651 5,117 136 12,477 691 3,598 — 24,670 Special mention 2,682 350 — — 326 1,038 — 4,396 Substandard 315 3,176 12,721 7,678 2,235 30,588 — 56,713 Doubtful 221 2,687 1,592 — — 48 — 4,548 Total 85,797 72,393 107,908 156,230 22,926 66,234 — 511,488 Current period charge-offs 74 882 537 90 55 1,011 — 2,649 Other commercial finance Pass 8,770 63,200 — 134 12,471 62,495 — 147,070 Watch — — 2,418 — — — — 2,418 20 Table of Contents 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 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 June 30, 2026 Loans held for sale $ — $ 12,420 $ — $ 12,420 $ 84,868 $ 97,288 $ — $ — $ — Term lending 54,938 77,319 137,016 269,273 2,397,704 2,666,977 13,628 189,859 203,487 Asset-based lending — — 9,064 9,064 688,623 697,687 — 22,771 22,771 Factoring — — — — 220,026 220,026 — 18,186 18,186 Lease financing 876 2,187 3,517 6,580 114,003 120,583 — 3,945 3,945 SBA/USDA 917 7,740 22,115 30,772 537,214 567,986 2,083 20,195 22,278 Other commercial finance — — — — 49,510 49,510 — 409 409 Commercial finance 56,731 87,246 171,712 315,689 4,007,080 4,322,769 15,711 255,365 271,076 Consumer finance 1,425 448 3,998 5,871 93,559 99,430 3,998 — 3,998 Tax services — 34,770 — 34,770 — 34,770 — — — Warehouse finance — — — — 647,611 647,611 — — — Total loans and leases held for investment 58,156 122,464 175,710 356,330 4,748,250 5,104,580 19,709 255,365 275,074 Total loans and leases $ 58,156 $ 134,884 $ 175,710 $ 368,750 $ 4,833,118 $ 5,201,868 $ 19,709 $ 255,365 $ 275,074 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 21 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 June 30, 2026 2026 2025 2024 2023 2022 Prior Term lending $ — $ 119,502 $ 2,217 $ 51,824 $ 1,380 $ 14,936 $ — $ 189,859 $ 17,490 Asset-based lending — — — — — — 22,771 22,771 11,895 Factoring — — — — — — 18,186 18,186 — Lease financing — — — — — 3,945 — 3,945 3,468 SBA/USDA — — 7,185 12,867 — 143 — 20,195 1,692 Other commercial finance — — — 409 — — — 409 409 Commercial finance — 119,502 9,402 65,100 1,380 19,024 40,957 255,365 34,954 Total nonaccrual loans and leases $ — $ 119,502 $ 9,402 $ 65,100 $ 1,380 $ 19,024 $ 40,957 $ 255,365 $ 34,954 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 22 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 June 30, 2026 2026 2025 2024 2023 2022 Prior Term lending $ — $ — $ 11,187 $ 1,553 $ — $ 888 $ — $ 13,628 SBA/USDA 355 979 172 — 328 249 — 2,083 Commercial finance 355 979 11,359 1,553 328 1,137 — 15,711 Consumer finance 3,454 314 177 36 13 4 — 3,998 Total loans and leases held for investment 3,809 1,293 11,536 1,589 341 1,141 — 19,709 Total 90 days or more delinquent and accruing $ 3,809 $ 1,293 $ 11,536 $ 1,589 $ 341 $ 1,141 $ — $ 19,709 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 June 30, Nine Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Term lending $ 92,218 $ 30,308 $ 60,055 $ 27,012 Asset-based lending 20,332 6,996 22,779 2,970 Factoring 7,803 1,350 3,541 1,004 Lease financing 3,947 4,514 4,075 3,655 SBA/USDA 19,581 7,005 18,908 4,000 Other commercial finance 413 — 470 — Commercial finance 144,294 50,173 109,828 38,641 Total loans and leases $ 144,294 $ 50,173 $ 109,828 $ 38,641 The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2026 and 2025 was not significant. Modifications made to borrowers experiencing financial difficulty during the three and nine months ended June 30, 2026 were none 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 nine months ended June 30, 2025 were none and $ 9.1 million, respectively, in the commercial finance loan portfolio. 23 Table of Contents During the nine months ended June 30, 2026, the Company had $ 3.0 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of June 30, 2026, $ 0.5 million and $ 2.5 million of modifications granted during the current nine month period were in the 30-59 days past due category and the over 89 days past due category, respectively. During the nine months ended June 30, 2025, the Company had $ 7.2 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of June 30, 2025, no modifications granted during the nine months ended June 30, 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 June 30, Nine Months Ended June 30, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Basic income per common share: Net income attributable to Pathward Financial, Inc. $ 28,969 $ 42,147 $ 137,045 $ 147,069 Dividends and undistributed earnings allocated to participating securities ( 29 ) ( 152 ) ( 155 ) ( 553 ) Basic net earnings available to common stockholders 28,940 41,995 136,890 146,516 Undistributed earnings allocated to nonvested restricted stockholders 28 148 151 540 Reallocation of undistributed earnings to nonvested restricted stockholders ( 27 ) ( 147 ) ( 150 ) ( 537 ) Diluted net earnings available to common stockholders $ 28,941 $ 41,996 $ 136,891 $ 146,519 Total weighted-average basic common shares outstanding 21,065,733 23,006,454 21,665,670 23,629,565 Effect of dilutive securities (1) PSUs 100,093 133,670 107,922 115,521 Total effect of dilutive securities 100,093 133,670 107,922 115,521 Total weighted-average diluted common shares outstanding 21,165,826 23,140,124 21,773,592 23,745,086 Net earnings per common share: Basic earnings per common share $ 1.37 $ 1.83 $ 6.32 $ 6.20 Diluted earnings per common share (2) $ 1.37 $ 1.81 $ 6.29 $ 6.17 (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 June 30, 2026 and 2025, respectively, were 20,794 and 83,151 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 nine months ended June 30, 2026 and 2025, respectively, were 24,490 and 89,175 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. 24 Table of Contents NOTE 6. RENTAL EQUIPMENT, NET Rental equipment consists of the following: (Dollars in thousands) June 30, 2026 September 30, 2025 Computers and IT networking equipment $ 5,062 $ 11,723 Motor vehicles and other 132,623 141,101 Other furniture and equipment 22,281 26,040 Solar panels and equipment 116,678 111,447 Total 276,644 290,311 Accumulated depreciation ( 124,736 ) ( 131,530 ) Unamortized initial direct costs 543 665 Net book value $ 152,451 $ 159,446 Future minimum lease payments expected to be received for operating leases at June 30, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 8,554 2027 32,724 2028 20,934 2029 13,558 2030 3,992 Thereafter 2,820 Total $ 82,582 25 Table of Contents NOTE 7. GOODWILL AND INTANGIBLE ASSETS The Company held a total of $ 297.9 million of goodwill at June 30, 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 nine months ended June 30, 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 ( 822 ) ( 1,189 ) ( 396 ) ( 2,407 ) June 30, 2026 $ 4,524 $ 2,922 $ 2,649 $ 10,095 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 9,250 ) ( 56,498 ) ( 4,930 ) ( 70,678 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) June 30, 2026 $ 4,524 $ 2,922 $ 2,649 $ 10,095 September 30, 2024 $ 6,422 $ 6,566 $ 3,601 $ 16,589 Amortization during the period ( 806 ) ( 1,462 ) ( 425 ) ( 2,693 ) Write-offs and disposals during the period — ( 631 ) — ( 631 ) June 30, 2025 $ 5,616 $ 4,473 $ 3,176 $ 13,265 Gross carrying amount $ 13,774 $ 70,338 $ 7,732 $ 91,844 Accumulated amortization ( 8,158 ) ( 54,947 ) ( 4,403 ) ( 67,508 ) Accumulated impairment — ( 10,918 ) ( 153 ) ( 11,071 ) June 30, 2025 $ 5,616 $ 4,473 $ 3,176 $ 13,265 (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 three months of fiscal 2026 and subsequent fiscal years at June 30, 2026 was as follows: (Dollars in thousands) Remaining in 2026 $ 696 2027 2,482 2028 2,193 2029 1,577 2030 1,478 Thereafter 1,669 Total anticipated intangible amortization $ 10,095 There were no impairments to intangible assets during the nine months ended June 30, 2026 and 2025. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations. 26 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 $ 21.4 million and $ 22.7 million at June 30, 2026 and September 30, 2025, respectively. Operating lease liabilities, included in accrued expenses and other liabilities , were $ 22.7 million and $ 24.0 million at June 30, 2026 and September 30, 2025, respectively. The decreases in operating lease ROU assets and liabilities relate to normal amortization and lease payments made during the nine months ended June 30, 2026. Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2026 were as follows: (Dollars in thousands) Remaining in 2026 $ 928 2027 3,682 2028 3,653 2029 3,633 2030 3,426 Thereafter 9,879 Total undiscounted future minimum lease payments 25,201 Discount ( 2,461 ) Total operating lease liabilities $ 22,740 The weighted-average discount rate and remaining lease term for operating leases were as follows: June 30, 2026 September 30, 2025 Weighted-average discount rate 2.33 % 2.65 % Weighted-average remaining lease term (years) 7.17 7.97 The components of total lease costs for operating leases were as follows: Three Months Ended June 30, Nine Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Lease expense $ 905 $ 987 $ 2,707 $ 2,904 Short-term and variable lease cost 29 18 86 62 Sublease income ( 386 ) ( 350 ) ( 1,197 ) ( 1,053 ) Total lease cost for operating leases $ 548 $ 655 $ 1,596 $ 1,913 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 nine months ended June 30, 2026 and 2025, the Company repurchased 1,810,637 and 1,881,444 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 June 30, 2026, 3,127,179 shares of common stock remained available for repurchase. For the nine months ended June 30, 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. 27 Table of Contents 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 nine months ended June 30, 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. 28 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 nine months ended June 30, 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, June 30, 2026 20,794 $ 51.51 RSUs Nonvested shares outstanding, September 30, 2025 92,620 $ 79.19 Granted 129,116 69.72 Vested ( 27,903 ) 79.48 Forfeited or expired ( 11,206 ) 73.42 Nonvested shares outstanding, June 30, 2026 182,627 $ 72.81 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, June 30, 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 $ 9.3 million and $ 7.2 million for the nine months ended June 30, 2026 and 2025, respectively. This expense is recorded primarily within compensation and benefits on the Condensed Consolidated Statements of Operations. As of June 30, 2026, stock-based compensation expense not yet recognized in income totaled $ 11.9 million, which is expected to be recognized over a weighted average remaining period of 1.64 years. 29 Table of Contents NOTE 11. INCOME TAXES The Company recorded an income tax expense of $ 24.4 million for the nine months ended June 30, 2026, resulting in an effective tax rate of 15.1 %, compared to an income tax expense of $ 27.0 million, or an effective tax rate of 15.4 %, for the nine months ended June 30, 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. Nine Months Ended June 30, (Dollars in thousands) 2026 2025 Provision at statutory rate $ 33,909 $ 36,547 Tax-exempt income ( 442 ) ( 480 ) State income taxes 6,266 6,562 Interim period effective rate adjustment ( 6,413 ) ( 9,971 ) Tax credit investments, net - federal ( 8,586 ) ( 3,913 ) Research tax credit ( 1,303 ) ( 752 ) 162(m) disallowance 1,427 1,061 Other, net ( 432 ) ( 2,088 ) Income tax expense $ 24,426 $ 26,966 Effective tax rate 15.1 % 15.4 % 30 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 June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Net interest income (expense) (1) $ 61,876 $ 67,949 $ 52,191 $ 51,241 $ ( 1,154 ) $ 3,123 $ 112,913 $ 122,313 Noninterest income: Refund transfer product fees 11,209 9,846 — — — — 11,209 9,846 Refund advance and other tax fee income (1) 696 307 — — — — 696 307 Card and deposit fees 34,371 37,171 192 165 7 6 34,570 37,342 Rental income (1) — — 9,363 12,681 244 232 9,607 12,913 Secondary market revenue (1) 1 41 13,968 7,103 — — 13,969 7,144 Gain (loss) on sale of other (1) — — ( 51 ) 330 — 64 ( 51 ) 394 Other income (1) 2,583 2,383 2,742 2,023 1,406 1,090 6,731 5,496 Total noninterest income 48,860 49,748 26,214 22,302 1,657 1,392 76,731 73,442 Revenue $ 110,736 $ 117,697 $ 78,405 $ 73,543 $ 503 $ 4,515 $ 189,644 $ 195,755 Nine Months Ended June 30, Net interest income (1) $ 198,951 $ 224,644 $ 147,386 $ 136,521 $ 11,038 $ 22,677 $ 357,375 $ 383,842 Noninterest income: Refund transfer product fees 46,353 42,919 — — — — 46,353 42,919 Refund advance and other tax fee income (1) 58,341 49,416 — — — — 58,341 49,416 Card and deposit fees 101,650 96,582 561 599 25 20 102,236 97,201 Rental income (1) — — 31,451 39,180 723 642 32,174 39,822 (Loss) on sale of securities (1) — — — — — ( 22,899 ) — ( 22,899 ) Gain on divestitures (1) — — — — — 15,044 — 15,044 Secondary market revenue (1) 1 56 21,699 13,515 — 13,329 21,700 26,900 Gain on sale of other (1) — — 1,320 1,487 — 520 1,320 2,007 Other income (1) 5,847 8,403 10,434 6,878 3,269 3,653 19,550 18,934 Total noninterest income 212,192 197,376 65,465 61,659 4,017 10,309 281,674 269,344 Revenue $ 411,143 $ 422,020 $ 212,851 $ 198,180 $ 15,055 $ 32,986 $ 639,049 $ 653,186 (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 nine months ended June 30, 2026. 31 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. 32 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 June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Interest and dividend income $ 62,531 $ 69,620 $ 82,793 $ 76,738 $ ( 31,291 ) $ ( 22,766 ) $ 114,033 $ 123,592 Interest expense 655 1,671 30,602 25,497 ( 30,137 ) ( 25,889 ) 1,120 1,279 Net interest income (expense) 61,876 67,949 52,191 51,241 ( 1,154 ) 3,123 112,913 122,313 Provision for (reversal of) credit loss ( 6,407 ) ( 2,114 ) 34,673 11,371 43 21 28,309 9,278 Net interest income after provision for (reversal of) credit loss 68,283 70,063 17,518 39,870 ( 1,197 ) 3,102 84,604 113,035 Noninterest income 48,860 49,748 26,214 22,302 1,657 1,392 76,731 73,442 Noninterest expense Compensation and benefits 7,075 7,183 10,192 11,090 35,094 30,286 52,361 48,559 Building and software 2,930 2,414 2,428 2,350 7,696 5,869 13,054 10,633 Operating lease equipment depreciation — — 7,545 11,569 — — 7,545 11,569 Rate related card expenses 23,253 25,145 — — — — 23,253 25,145 Other card expenses 7,440 11,042 — — ( 22 ) 10 7,418 11,052 Tax product expenses 2,848 2,744 — — — — 2,848 2,744 Loan expenses 4 3 6,673 3,788 — — 6,677 3,791 Legal and consulting 587 657 1,238 993 4,297 9,444 6,122 11,094 SG & A intercompany allocations 18,204 17,830 8,703 7,085 ( 26,907 ) ( 24,915 ) — — Consumer lending program expenses 105 4,998 — — — — 105 4,998 Other expenses 3,602 2,776 1,207 2,447 4,929 4,514 9,738 9,737 Total noninterest expense 66,048 74,792 37,986 39,322 25,087 25,208 129,121 139,322 Income (loss) before income tax expense 51,095 45,019 5,746 22,850 ( 24,627 ) ( 20,714 ) 32,214 47,155 Total assets 328,692 419,654 4,767,308 4,257,971 2,218,373 2,552,219 7,314,373 7,229,844 Total goodwill 87,145 87,145 210,783 210,783 — — 297,928 297,928 Total deposits 5,720,403 5,823,684 177 87 229,729 181,475 5,950,309 6,005,246 Nine Months Ended June 30, Interest and dividend income $ 212,144 $ 240,319 $ 248,091 $ 224,407 $ ( 94,104 ) $ ( 70,774 ) $ 366,131 $ 393,952 Interest expense 13,193 15,675 100,705 87,886 ( 105,142 ) ( 93,451 ) 8,756 10,110 Net interest income 198,951 224,644 147,386 136,521 11,038 22,677 357,375 383,842 Provision for credit loss 19,481 40,349 57,672 22,710 2 146 77,155 63,205 Net interest income after provision for credit loss 179,470 184,295 89,714 113,811 11,036 22,531 280,220 320,637 Noninterest income 212,192 197,376 65,465 61,659 4,017 10,309 281,674 269,344 Noninterest expense Compensation and benefits 23,748 22,808 32,077 36,640 103,805 90,307 159,630 149,755 Building and software 8,804 7,038 7,171 6,974 21,860 16,634 37,835 30,646 Operating lease equipment depreciation — — 26,615 34,775 — — 26,615 34,775 Rate related card expenses 72,472 79,149 — — — — 72,472 79,149 Other card expenses 22,110 26,570 — — 1 31 22,111 26,601 Tax product expenses 13,545 12,626 — — — — 13,545 12,626 Loan expenses 1,085 1,127 17,535 10,568 — — 18,620 11,695 Legal and consulting 1,695 1,789 2,906 2,954 12,406 17,454 17,007 22,197 33 Table of Contents SG & A intercompany allocations 55,261 52,517 25,460 22,228 ( 80,721 ) ( 74,745 ) — — Consumer lending program expenses 381 14,893 — — — — 381 14,893 Other expenses 12,507 11,290 4,037 6,692 15,030 14,977 31,574 32,959 Total noninterest expense 211,608 229,807 115,801 120,831 72,381 64,658 399,790 415,296 Income (loss) before income tax expense 180,054 151,864 39,378 54,639 ( 57,328 ) ( 31,818 ) 162,104 174,685 Total assets 328,692 419,654 4,767,308 4,257,971 2,218,373 2,552,219 7,314,373 7,229,844 Total goodwill 87,145 87,145 210,783 210,783 — — 297,928 297,928 Total deposits 5,720,403 5,823,684 177 87 229,729 181,475 5,950,309 6,005,246 Expenses included in the Other Expenses line represent 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). 34 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 June 30, 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 June 30, 2026 Debt securities AFS Corporate securities $ 23,125 $ — $ 23,125 $ — SBA securities 9,900 — 9,900 — Obligations of states and political subdivisions 124 — 124 — Non-bank qualified obligations of states and political subdivisions 171,786 — 171,786 — Asset-backed securities 108,115 — 108,115 — Mortgage-backed securities 906,566 — 906,566 — Total debt securities AFS $ 1,219,616 $ — $ 1,219,616 $ — Common equities and mutual funds (1) $ 4,808 $ 4,808 $ — $ — Non-marketable equity securities (2) $ 13,456 $ — $ — $ — 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 June 30, 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 51 %. 35 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 June 30, 2026 Loans and leases, net individually evaluated for credit loss Commercial finance $ 49,087 $ — $ — $ 49,087 Total loans and leases, net individually evaluated for credit loss 49,087 — — 49,087 Total $ 49,087 $ — $ — $ 49,087 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 June 30, 2026 Fair Value at September 30, 2025 Valuation Technique Unobservable Input Range of Inputs Loans and leases, net individually evaluated for credit loss $ 49,087 $ 32,321 Market approach Appraised values (1) 3 % - 51 % (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 51 %. 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 June 30, 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. 36 Table of Contents The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company: June 30, 2026 (Dollars in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 149,412 $ 149,412 $ 149,412 $ — $ — Debt securities available for sale 1,219,616 1,219,616 — 1,219,616 — Debt securities held to maturity 27,101 23,273 — 23,273 — Common equities and mutual funds (1) 4,808 4,808 4,808 — — Non-marketable equity securities (1)(2) 23,752 23,752 — 10,296 — Loans held for sale 97,288 97,288 — 97,288 — Loans and leases 5,104,580 5,023,814 — — 5,023,814 Federal Reserve Bank and Federal Home Loan Bank stocks 30,915 30,915 — 30,915 — Accrued interest receivable 36,966 36,966 36,966 — — Financial liabilities Deposits 5,950,309 5,950,224 5,947,668 2,556 — Overnight federal funds purchased 167,500 167,500 167,500 — — Other short- and long-term borrowings 33,533 34,023 — 34,023 — Accrued interest payable 712 712 712 — — (1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 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 June 30, 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 June 30, 2026. 37 Table of Contents