Pathward Financial, Inc 8-K, filed Oct 21, 2026
Pathward Financial, Inc. (CASH)
8-K
2026-10-21
For: 2026-10-21
View Original
Added on
October 22, 2026
About this 8-K
Pathward Financial, Inc filed this 8-K on October 21, 2026.
Pathward Financial, Inc. reported fourth-quarter net income of $38.6 million and diluted EPS of $1.85 for the three months ended September 30, 2026; fiscal 2026 net income was $175.7 million, while nonperforming loans and leases rose to $289.3 million, or 5.61% of gross loans and leases. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (877 ) 497-7497
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 21, 2026, Pathward Financial, Inc. (the "Company") issued a press release announcing its results of operations and financial condition as of and for the three months and fiscal year ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated into this Item 2.02 by reference.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference in any filing under the Exchange Act or under the Securities Act of 1933, as amended (the "Securities Act"), except to the extent specifically provided in any such filing.
Item 7.01 Regulation FD Disclosure.
Information is being furnished herein in Exhibit 99.2 with respect to the Quarterly Investor Update slide presentation prepared for and in connection with the Company's conference call and earnings webcast for the fourth quarter and fiscal year 2026. The Quarterly Investor Update slide presentation is dated October 21, 2026 and the Company does not undertake to update the materials after that date, except to the extent required by applicable law. This presentation is also available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at https://pathwardfinancial.com. The website address included herein is an inactive textual reference only. The information contained on such website is not incorporated into this Current Report on Form 8-K.
The information in this Item 7.01, including Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference in any filing under the Exchange Act or under the Securities Act, except to the extent specifically provided in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description of Exhibit | |||||||
Press Release of Pathward Financial, Inc., dated October 21, 2026 | ||||||||
Quarterly Investor Update slide presentation for the Fourth Quarter and Fiscal Year 2026, dated October 21, 2026. | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PATHWARD FINANCIAL, INC. | ||||||||
Date: October 21, 2026 | By: | /s/ Gregory A. Sigrist | ||||||
| Gregory A. Sigrist | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
PATHWARD FINANCIAL, INC. ANNOUNCES RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2026
Sioux Falls, S.D., October 21, 2026 - Pathward Financial, Inc. (“Pathward Financial,” "Pathward," or the “Company” (Nasdaq: CASH), a U.S.-based financial holding company driven by its purpose to power financial inclusion for all, today reported its unaudited results for the fourth quarter and the fiscal year ended September 30, 2026. The Company reported net income of $38.6 million, or earnings per diluted share of $1.85, for the three months ended September 30, 2026, compared to net income of $38.8 million, or earnings per diluted share of $1.69, for the three months ended September 30, 2025.
For fiscal year 2026 ("fiscal 2026"), the Company reported net income of $175.7 million, or earnings per diluted share of $8.14, compared to net income of $185.9 million, or earnings per diluted share of $7.87, for fiscal year 2025 ("fiscal 2025"). The Company also recognized return on average assets and return on average tangible equity of 2.30% and 32.89%, respectively, compared to 2.46% and 38.75%, respectively, for the prior-year period.
Chief Executive Officer Brett Pharr said, "Fiscal 2026 was another important year of execution for Pathward. We successfully advanced the strategic priorities we set out to accomplish last year, and this was no small feat. We had some major wins across each area, and are very proud of the results the team delivered. While we continue to track and manage some of the credit items we mentioned last quarter, all other areas of the business yielded positive results. We extended contracts with partners, grew noninterest income, and grew net interest income in commercial finance."
Financial Highlights for the Fourth Quarter of Fiscal 2026
All highlights are compared to the same fiscal quarter in the prior-year period.
•Interest income from commercial finance loans increased by $5.6 million, driven by strong originations within structured finance.
•Total noninterest income increased 12%, or $6.8 million, primarily due to a strong increase in card and deposit fee income.
•Noninterest expense decreased 10% as a result of disciplined expense management while the Company continued to make strategic investments across people, processes, and technology in order to execute on its long-term strategy.
•New loan originations nearly doubled from $1.3 billion to $2.2 billion, primarily driven by increased credit sponsorship loan originations resulting from a new contract announced during fiscal 2025, as well as growth with current partners.
•The Company repurchased 281,562 shares of common stock at an average share price of $88.75. As of September 30, 2026, there were 2,845,617 shares available for repurchase under the current common stock share repurchase program.
1
Net Interest Income
Net interest income for the fourth quarter of fiscal 2026 was $117.6 million, a decrease of 8% compared to the fourth quarter of fiscal 2025. The decrease was attributable to an $11.1 million reduction in interest income from the credit sponsorship portfolio and a $3.3 million reduction in interest income from the warehouse finance portfolio. Interest income on the credit sponsorship portfolio was impacted by the sale of a portfolio in October 2025 that was previously accounted for using a gross accounting methodology, and therefore, recorded at higher yields with offsetting entries not included in net interest income. These decreases were partially offset by a $5.6 million increase in interest income from commercial finance loans and leases, driven by strong originations within structured finance.
The Company’s average interest-earning assets for the fourth quarter of fiscal 2026 increased by $69.9 million to $6.87 billion compared to the same quarter in fiscal 2025 due to increases in the average outstanding balances in total loans and leases and cash and fed funds sold. The increase was partially offset by a decrease in the average outstanding balance of total investments. The fourth quarter average outstanding balance of loans and leases increased $196.8 million compared to the same quarter of the prior fiscal year due to an increase in the commercial finance portfolio, partially offset by decreases in the credit sponsorship and warehouse finance portfolios.
Fiscal 2026 fourth quarter net interest margin ("NIM") decreased to 6.79% from 7.46% in the fourth quarter of fiscal 2025 primarily due to the aforementioned sale of the credit sponsorship portfolio in October 2025. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excluding the gross interest income on credit sponsorship loans, adjusted NIM was 5.51% in the fiscal 2026 fourth quarter compared to 5.43% during the fiscal 2025 fourth quarter. See non-GAAP reconciliation table at the end of the press release. The overall reported tax-equivalent yield (“TEY”) on average interest-earning assets decreased 69 basis points to 6.87% compared to the prior-year quarter. The yield on the loan and lease portfolio was 8.23% compared to 9.25% for the comparable period last year and the TEY on the securities portfolio was 2.98% compared to 3.06% over that same period. The decreases in the TEY on average interest-earning assets and the yield on the loan and lease portfolio were also primarily driven by the aforementioned sale of the credit sponsorship portfolio.
The Company's cost of funds for all deposits and borrowings averaged 0.08% during the fiscal 2026 fourth quarter, as compared to 0.09% during the prior-year quarter. The Company's cost of deposits was 0.01% in the fourth quarter of fiscal 2026, as compared to 0.02% during the prior-year quarter. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet, the Company's adjusted cost of deposits was 1.40% in the fiscal 2026 fourth quarter, a decrease from 1.58% during the prior-year quarter primarily reflecting a lower rate environment. See non-GAAP reconciliation table at the end of the press release.
Noninterest Income
Fiscal 2026 fourth quarter noninterest income increased 12% to $65.6 million, compared to $58.8 million for the same period of the prior year. The increase was driven by increases in card and deposit fees and secondary market revenue, partially offset by decreases in rental income and gain on sale of other. Card and deposit fees excluding servicing fee income on custodial deposits increased $6.4 million, as contracts signed last year are generating growth.
Servicing fee income on custodial deposits totaled $6.1 million during the 2026 fiscal fourth quarter, as compared to $7.5 million for the fiscal quarter ended June 30, 2026 and $2.6 million for the same period of the prior year.
2
Noninterest Expense
Noninterest expense decreased 10% to $129.7 million in the fourth quarter of fiscal 2026, compared to $144.8 million for the same quarter last year. The decrease was attributable to lower legal and consulting expense, partially offset by an increase in building and software expense. The Company continues to make targeted investments in our people, processes and technology.
Card processing expense is primarily driven by rate-related agreements with Payments Sponsorship relationships and subject to deposit levels, floor rates, market conditions, and other performance conditions. Generally, this rate index is based on a percentage of the effective federal funds rate ("EFFR") and reprices immediately upon a change in the EFFR. Approximately 67% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2026 fourth quarter. For the fiscal quarter ended September 30, 2026, contractual, rate-related processing expense was $23.0 million, as compared to $23.3 million for the fiscal quarter ended June 30, 2026, and $24.9 million for the fiscal quarter ended September 30, 2025.
Income Tax Expense
The Company recorded an income tax expense of $4.4 million, representing an effective tax rate of 10.1% for the fiscal 2026 fourth quarter, compared to an income tax expense of $9.3 million, representing an effective tax rate of 19.2%, for the fourth quarter last fiscal year. The decrease in income tax expense compared to the prior-year quarter was primarily driven by lower pre-tax income and the impact of a life insurance surrender recognized in the prior-year quarter.
The Company originated $45.3 million in renewable energy leases during the fiscal 2026 fourth quarter, resulting in $13.4 million in total net investment tax credits. During the fourth quarter of fiscal 2025, the Company originated $82.1 million in renewable energy leases resulting in $15.8 million in total net investment tax credits. For fiscal 2026, the Company originated $78.2 million in renewable energy leases, compared to $95.5 million for the comparable prior-year period.
3
Investments, Loans and Leases
| (Dollars in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Total investments | $ | 1,190,318 | $ | 1,246,718 | $ | 1,299,421 | $ | 1,338,709 | $ | 1,357,151 | |||||||||||||||||||
| Loans held for sale | |||||||||||||||||||||||||||||
| Term lending | 8,019 | 3,438 | — | 5,000 | — | ||||||||||||||||||||||||
| Lease financing | 478 | 511 | 566 | 619 | 690 | ||||||||||||||||||||||||
| SBA/USDA | 18,534 | 59,342 | 20,811 | 31,338 | 15,654 | ||||||||||||||||||||||||
| Credit sponsorship | 47,056 | 33,997 | 31,695 | 51,012 | 163,077 | ||||||||||||||||||||||||
| Total loans held for sale | 74,087 | 97,288 | 53,072 | 87,969 | 179,421 | ||||||||||||||||||||||||
| Term lending | 2,791,146 | 2,666,977 | 2,501,855 | 2,506,777 | 2,302,540 | ||||||||||||||||||||||||
| Asset-based lending | 697,151 | 697,687 | 660,220 | 629,317 | 593,265 | ||||||||||||||||||||||||
| Factoring | 213,889 | 220,026 | 213,269 | 213,888 | 217,501 | ||||||||||||||||||||||||
| Lease financing | 130,643 | 120,583 | 126,902 | 136,505 | 149,236 | ||||||||||||||||||||||||
| SBA/USDA | 561,557 | 567,986 | 536,637 | 520,461 | 511,488 | ||||||||||||||||||||||||
| Other commercial finance | 46,569 | 49,510 | 73,694 | 140,229 | 149,939 | ||||||||||||||||||||||||
| Commercial finance | 4,440,955 | 4,322,769 | 4,112,577 | 4,147,177 | 3,923,969 | ||||||||||||||||||||||||
| Credit sponsorship | 108,409 | 99,430 | 90,912 | 132,045 | 93,319 | ||||||||||||||||||||||||
| Tax services | 1,898 | 34,770 | 60,191 | 62,049 | 2,532 | ||||||||||||||||||||||||
| Warehouse finance | 527,008 | 647,611 | 604,642 | 641,669 | 645,186 | ||||||||||||||||||||||||
| Total loans and leases | 5,078,270 | 5,104,580 | 4,868,322 | 4,982,940 | 4,665,006 | ||||||||||||||||||||||||
| Net deferred loan origination costs (fees) | 6,345 | 3,261 | (1,157) | (85) | (98) | ||||||||||||||||||||||||
| Total gross loans and leases | 5,084,615 | 5,107,841 | 4,867,165 | 4,982,855 | 4,664,908 | ||||||||||||||||||||||||
| Allowance for credit losses | (67,321) | (109,780) | (98,279) | (58,840) | (53,319) | ||||||||||||||||||||||||
| Total loans and leases, net | $ | 5,017,295 | $ | 4,998,061 | $ | 4,768,886 | $ | 4,924,015 | $ | 4,611,589 | |||||||||||||||||||
The Company's investment security balances at September 30, 2026 totaled $1.19 billion, compared to $1.25 billion at June 30, 2026 and $1.36 billion at September 30, 2025. The year-over-year decrease was primarily related to normal paydown activity.
Total gross loans and leases totaled $5.08 billion at September 30, 2026, as compared to $5.11 billion at June 30, 2026 and $4.66 billion at September 30, 2025. The drivers for the sequential quarter decrease were declines in the warehouse finance portfolio and the seasonal decrease in the tax services portfolio, partially offset by growth in the commercial finance and credit sponsorship portfolios. The year-over-year increase was primarily attributable to growth in the commercial finance portfolio, partially offset by a decrease in the warehouse finance portfolio.
Commercial finance loans, which comprised 87% of the Company's loan and lease portfolio, totaled $4.44 billion at September 30, 2026, reflecting an increase of $118.2 million, or 3%, from June 30, 2026 and an increase of $517.0 million, or 13%, from September 30, 2025. The sequential quarter increase in the commercial finance portfolio was driven by a $124.2 million increase in term lending and a $10.1 million increase in lease financing. The year-over-year increase was driven by an increase of $488.6 million in term lending, an increase of $103.9 million in asset-based lending, and an increase of $50.1 million in SBA/USDA, partially offset by declines of $103.4 million in other commercial finance loans and $18.6 million in lease financing. These changes are primarily the result of the Company's efforts to maintain an optimized balance sheet.
4
Asset Quality
The Company’s allowance for credit losses ("ACL") totaled $67.3 million at September 30, 2026, a decrease compared to $109.8 million at June 30, 2026 and an increase compared to $53.3 million at September 30, 2025. The sequential decrease in the ACL was due to decreases of $30.1 million, $9.0 million, and $3.2 million in the allowance related to the seasonal tax services, commercial finance, and credit sponsorship portfolios, respectively. The sequential decrease in the commercial finance portfolio was primarily driven by a reduction in specific reserves.
The $14.0 million year-over-year increase in the ACL was primarily driven by an $18.5 million increase in the allowance related to the commercial finance portfolio, partially offset by a decrease in the allowance related to the credit sponsorship portfolio of $4.4 million.
The following table presents the Company's ACL as a percentage of its total loans and leases.
| As of the Period Ended | |||||||||||||||||
| (Unaudited) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||
| Commercial finance | 1.46 | % | 1.71 | % | 1.36 | % | 1.16 | % | 1.18 | % | |||||||
| Credit sponsorship | 1.86 | % | 5.23 | % | 7.25 | % | 6.85 | % | 6.88 | % | |||||||
| Tax services | 0.28 | % | 86.66 | % | 58.63 | % | 1.71 | % | — | % | |||||||
| Warehouse finance | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | |||||||
| Total loans and leases | 1.33 | % | 2.15 | % | 2.02 | % | 1.18 | % | 1.14 | % | |||||||
| Total loans and leases excluding tax services | 1.33 | % | 1.57 | % | 1.31 | % | 1.17 | % | 1.14 | % | |||||||
The Company's ACL as a percentage of total loans and leases decreased to 1.33% at September 30, 2026 from 2.15% at June 30, 2026 and increased from 1.14% at September 30, 2025. The sequential decrease in the total loans and leases coverage ratio was primarily driven by a decrease in the ACL related to the commercial finance and seasonal tax services portfolios. The year-over-year increase in the total loans and leases coverage ratio was primarily driven by an increase in the ACL related to the commercial finance portfolio.
Activity in the ACL for the periods presented was as follows.
| (Unaudited) | Three Months Ended | Year Ended | |||||||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||
| Beginning balance | $ | 109,780 | $ | 98,279 | $ | 105,995 | $ | 53,319 | $ | 71,765 | |||||||||||||||||||
| (Reversal of) provision - tax services loans | (2,539) | (6,035) | (660) | 14,504 | 22,091 | ||||||||||||||||||||||||
| Provision (reversal of) - all other loans and leases | 12,105 | 33,565 | (5,797) | 71,176 | 34,454 | ||||||||||||||||||||||||
| Charge-offs - tax services loans | (28,586) | (1,000) | (30,426) | (29,586) | (31,721) | ||||||||||||||||||||||||
| Charge-offs - all other loans and leases | (25,402) | (17,712) | (17,704) | (63,288) | (59,173) | ||||||||||||||||||||||||
| Recoveries - tax services loans | 997 | 1,879 | 657 | 15,087 | 9,628 | ||||||||||||||||||||||||
| Recoveries - all other loans and leases | 966 | 804 | 1,254 | 6,109 | 6,275 | ||||||||||||||||||||||||
| Ending balance | $ | 67,321 | $ | 109,780 | $ | 53,319 | $ | 67,321 | $ | 53,319 | |||||||||||||||||||
The Company recognized a provision for credit losses of $10.3 million for the quarter ended September 30, 2026, compared to a reversal of provision of $6.4 million for the comparable period in the prior fiscal year. The year-over-year increase was primarily due to increases in the credit sponsorship portfolio of $12.0 million and commercial finance portfolio of $6.7 million, partially offset by decreases in the tax services portfolio of $1.9 million. The increase in provision expense within the credit sponsorship portfolio was due to a provision release recognized during the prior-year quarter.
5
The Company recognized net charge-offs of $52.0 million for the quarter ended September 30, 2026, consisting of $27.6 million in the seasonal tax services portfolio, $20.3 million in the commercial finance portfolio, and $4.1 million in the credit sponsorship portfolio. Net charge-offs were $46.2 million for the quarter ended September 30, 2025, comprised of $29.7 million, $8.9 million, and $7.5 million within the seasonal tax services, credit sponsorship, and commercial finance portfolios, respectively.
The Company's past due loans and leases were as follows for the periods presented.
| As of September 30, 2026 | 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 | ||||||||||||||||||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | 74,087 | $ | 74,087 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
| Commercial finance | 15,810 | 49,220 | 120,078 | 185,108 | 4,255,847 | 4,440,955 | 32,765 | 254,607 | 287,372 | ||||||||||||||||||||||||||||||||||||||||||||
| Credit sponsorship | 1,281 | 314 | 337 | 1,932 | 106,477 | 108,409 | 337 | — | 337 | ||||||||||||||||||||||||||||||||||||||||||||
| Tax services | — | — | 1,598 | 1,598 | 300 | 1,898 | 1,598 | — | 1,598 | ||||||||||||||||||||||||||||||||||||||||||||
| Warehouse finance | — | — | — | — | 527,008 | 527,008 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases held for investment | 17,091 | 49,534 | 122,013 | 188,638 | 4,889,632 | 5,078,270 | 34,700 | 254,607 | 289,307 | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 17,091 | $ | 49,534 | $ | 122,013 | $ | 188,638 | $ | 4,963,719 | $ | 5,152,357 | $ | 34,700 | $ | 254,607 | $ | 289,307 | |||||||||||||||||||||||||||||||||||
| As of June 30, 2026 | 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 | ||||||||||||||||||||||||||||||||||||||||||||
| Loans held for sale | $ | — | $ | 12,420 | $ | — | $ | 12,420 | $ | 84,868 | $ | 97,288 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
| Commercial finance | 56,731 | 87,246 | 171,712 | 315,689 | 4,007,080 | 4,322,769 | 15,711 | 255,365 | 271,076 | ||||||||||||||||||||||||||||||||||||||||||||
| Credit sponsorship | 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 | |||||||||||||||||||||||||||||||||||
The Company's nonperforming assets at September 30, 2026 were $290.4 million, representing 4.00% of total assets, compared to $277.5 million, or 3.79% of total assets, at June 30, 2026 and $101.7 million, or 1.42% of total assets, at September 30, 2025.
The increase in the nonperforming assets as a percentage of total assets at September 30, 2026, compared to June 30, 2026, was primarily driven by an increase in commercial finance loans more than 89 days past due and accruing. Compared with the same period of the prior year, the increase was driven by higher nonperforming loans in the commercial finance portfolio, partially offset by lower nonperforming loans in the seasonal tax services portfolio.
6
The Company's nonperforming loans and leases at September 30, 2026 were $289.3 million, representing 5.61% of total gross loans and leases, compared to $275.1 million, or 5.28% of total gross loans and leases, at June 30, 2026 and $99.1 million, or 2.05% of total gross loans and leases, at September 30, 2025. The primary reason for the increase in nonperforming commercial finance loans, as compared to September 30, 2025, was related to certain renewable energy construction projects with a common developer. The Company continues to work with other parties in these projects to bring them to completion.
Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was $6.22 billion for the quarter ended September 30, 2026, compared to $6.27 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2026 fourth quarter decreased by $42.8 million to $6.14 billion compared to the same period in fiscal 2025. The decrease in average deposits was primarily due to decreases in noninterest-bearing deposits and money market deposits.
Total end-of-period deposits decreased 3% to $5.69 billion at September 30, 2026, from $5.89 billion at September 30, 2025. The decrease in end-of-period deposits was primarily driven by a decreases in noninterest-bearing deposits of $151.6 million and $55.7 million in money market deposits, partially offset by an increase in interest-bearing checking deposits of $15.1 million.
As of September 30, 2026, the Company managed $630.0 million of customer deposits at other banks in its capacity as custodian, compared to $575.0 million as of June 30, 2026 and $210.5 million as of September 30, 2025. These deposits provide the Company with the ability to earn servicing fee income, typically reflective of the EFFR.
Regulatory Capital
The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at September 30, 2026, and continued to be classified as well-capitalized, and in good standing with the regulatory agencies. Regulatory capital ratios of the Company and the Bank are stated in the table below. Regulatory capital is not affected by the unrealized loss on accumulated other comprehensive income (“AOCI”). The securities portfolio is primarily comprised of amortizing securities that should provide consistent cash flow.
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
| As of the Periods Indicated | September 30, 2026(1) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Company | |||||||||||||||||||||||||||||
| Tier 1 leverage capital ratio | 9.85 | % | 9.66 | % | 8.62 | % | 9.51 | % | 9.79 | % | |||||||||||||||||||
| Common equity Tier 1 capital ratio | 11.83 | % | 11.51 | % | 12.65 | % | 12.02 | % | 12.70 | % | |||||||||||||||||||
| Tier 1 capital ratio | 12.07 | % | 11.74 | % | 12.89 | % | 12.26 | % | 12.95 | % | |||||||||||||||||||
| Total capital ratio | 13.59 | % | 13.33 | % | 14.52 | % | 13.67 | % | 14.27 | % | |||||||||||||||||||
| Bank | |||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.09 | % | 9.91 | % | 8.85 | % | 9.84 | % | 10.00 | % | |||||||||||||||||||
| Common equity Tier 1 capital ratio | 12.37 | % | 12.05 | % | 13.24 | % | 12.67 | % | 13.23 | % | |||||||||||||||||||
| Tier 1 capital ratio | 12.37 | % | 12.05 | % | 13.24 | % | 12.67 | % | 13.23 | % | |||||||||||||||||||
| Total capital ratio | 13.56 | % | 13.31 | % | 14.49 | % | 13.73 | % | 14.19 | % | |||||||||||||||||||
(1) September 30, 2026 capital ratios are preliminary pending completion and filing of the Company's and Bank's regulatory reports. The ratios presented above have been calculated under the generally applicable risk-based capital framework.
7
The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
Standardized Approach(1) | |||||||||||||||||||||||||||||
As of the Periods Indicated (Dollars in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Total stockholders' equity | $ | 820,355 | $ | 851,146 | $ | 850,677 | $ | 853,712 | $ | 857,454 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| LESS: Goodwill, net of associated deferred tax liabilities | 283,760 | 284,105 | 284,471 | 284,815 | 285,158 | ||||||||||||||||||||||||
| LESS: Certain other intangible assets | 19,339 | 18,699 | 17,306 | 17,746 | 18,077 | ||||||||||||||||||||||||
| LESS: Net deferred tax assets from operating loss and tax credit carry-forwards | 3,136 | 785 | 1,207 | 5,877 | 5,733 | ||||||||||||||||||||||||
| LESS: Net unrealized (losses) on available for sale securities | (183,151) | (138,411) | (138,462) | (133,516) | (143,190) | ||||||||||||||||||||||||
| LESS: Noncontrolling interest | 194 | 245 | (785) | (823) | (591) | ||||||||||||||||||||||||
| ADD: Adoption of Accounting Standards Update 2016-13 | — | — | — | — | 1,788 | ||||||||||||||||||||||||
Common Equity Tier 1(1) | 697,077 | 685,723 | 686,940 | 679,613 | 694,055 | ||||||||||||||||||||||||
| Long-term borrowings and other instruments qualifying as Tier 1 | 13,661 | 13,661 | 13,661 | 13,661 | 13,661 | ||||||||||||||||||||||||
| Tier 1 minority interest not included in common equity Tier 1 capital | 76 | 115 | (382) | (437) | (307) | ||||||||||||||||||||||||
| Total Tier 1 capital | 710,814 | 699,499 | 700,219 | 692,837 | 707,409 | ||||||||||||||||||||||||
| Allowance for credit losses | 70,022 | 74,916 | 68,278 | 59,687 | 52,455 | ||||||||||||||||||||||||
| Subordinated debentures, net of issuance costs | 19,898 | 19,872 | 19,846 | 19,821 | 19,796 | ||||||||||||||||||||||||
| Total capital | $ | 800,734 | $ | 794,287 | $ | 788,343 | $ | 772,345 | $ | 779,660 | |||||||||||||||||||
(1) Capital amounts and ratios are calculated in accordance with Basel III capital rules as implemented by U.S. banking regulators and reflect fully phased-in regulatory requirements applicable to the Company as of the reporting date.
8
Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, October 21, 2026. The live webcast of the call can be accessed from Pathward’s Investor Relations website at www.pathwardfinancial.com. Telephone participants may access the conference call by dialing 1-833-461-5787 approximately 10 minutes prior to start time and reference meeting ID 841767855.
The quarterly investor presentation prepared for use in connection with the Company's conference call and earnings webcast is available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at www.pathwardfinancial.com. A webcast replay will also be archived at www.pathwardfinancial.com for one year.
About Pathward Financial, Inc.
Pathward Financial, Inc. (Nasdaq: CASH) is a U.S.-based financial holding company driven by its purpose to power financial inclusion. Through our subsidiary, Pathward®, N.A., we strive to increase financial availability, choice, and opportunity through payments sponsorship and lending. These capabilities provide support to individuals and businesses. Learn more at www.pathwardfinancial.com.
Non-GAAP Financial Measures
This press release includes certain adjusted non-GAAP financial measures, which are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and exclude the impact of certain items. Management uses these non-GAAP financial measures to evaluate the Company’s performance and manage its operations and believes such measures to be helpful in understanding the Company's results of operations or financial position. These non-GAAP financial measures are intended to complement, and are not considered as alternatives to or substitutes for, the most directly comparable GAAP financial measures, as reconciled in the below tables. Additionally, such non-GAAP financial measures may not be comparable to or calculated in the same manner as similarly titled measures used by other companies.
Investor Relations contact
Darby Schoenfeld, CPA
SVP, Chief of Staff & Investor Relations
877-497-7497
investorrelations@pathward.com
Media Relations contact
mediarelations@pathward.com
9
Forward-Looking Statements
The Company and the Bank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and Exchange Commission ("SEC"), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” "target," or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results, including our performance expectations and fiscal 2027 financial guidance; our fiscal 2027 goals and strategy; including our emphasis on people, processes and technology; progress on key strategic initiatives; future performance and business prospects, including our Payments Sponsorship pipeline; our value proposition, including opportunities for revenue growth; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; impacts of our evolved operating model; expectations with respect to credit performance, expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology, including impacts of technology investments. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the Fed Funds rate and changes in international trade policies, tariffs, and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the Bank's ability to maintain its Durbin Amendment exemption; the risks of dealing with or utilizing third parties, including, in connection with the Company’s prepaid card and tax refund advance businesses; the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of the Bank's strategic partners’ refund advance products; our relationship with, and any actions, which may be initiated by our regulators, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by the Bank of its status as a well-capitalized institution; changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase; and the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts, government shutdowns, weather-related disasters, or public health events, such as pandemics, and any governmental or societal responses thereto.
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2025, and in the Company's other filings made with the SEC. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason, except as required by applicable law.
10
Condensed Consolidated Statements of Financial Condition (Unaudited)
| (Dollars in Thousands, Except Share Data) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 162,398 | $ | 149,412 | $ | 157,602 | $ | 331,217 | $ | 120,568 | |||||||||||||||||||
| Securities available for sale, at fair value | 1,163,947 | 1,219,616 | 1,271,353 | 1,310,047 | 1,327,843 | ||||||||||||||||||||||||
| Securities held to maturity, at amortized cost | 26,371 | 27,101 | 28,068 | 28,662 | 29,308 | ||||||||||||||||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 39,250 | 30,915 | 25,480 | 24,310 | 24,708 | ||||||||||||||||||||||||
| Loans held for sale | 74,087 | 97,288 | 53,072 | 87,969 | 179,421 | ||||||||||||||||||||||||
| Loans and leases | 5,084,615 | 5,107,841 | 4,867,165 | 4,982,855 | 4,664,908 | ||||||||||||||||||||||||
| Allowance for credit losses | (67,321) | (109,780) | (98,279) | (58,840) | (53,319) | ||||||||||||||||||||||||
| Accrued interest receivable | 35,828 | 36,966 | 36,127 | 36,174 | 38,520 | ||||||||||||||||||||||||
| Premises, furniture, and equipment, net | 43,748 | 43,313 | 42,254 | 42,370 | 40,632 | ||||||||||||||||||||||||
| Rental equipment, net | 116,661 | 152,451 | 146,190 | 154,533 | 159,446 | ||||||||||||||||||||||||
| Goodwill and intangible assets | 307,328 | 308,023 | 308,741 | 309,712 | 310,430 | ||||||||||||||||||||||||
| Other assets | 266,765 | 251,227 | 274,626 | 311,196 | 329,879 | ||||||||||||||||||||||||
| Total assets | $ | 7,253,677 | $ | 7,314,373 | $ | 7,112,399 | $ | 7,560,205 | $ | 7,172,344 | |||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | 5,691,644 | 5,950,309 | 5,851,696 | 6,350,394 | 5,886,947 | ||||||||||||||||||||||||
| Short-term borrowings | 334,500 | 167,500 | 26,000 | — | 9,000 | ||||||||||||||||||||||||
| Long-term borrowings | 33,559 | 33,533 | 33,508 | 33,482 | 33,456 | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 373,619 | 311,885 | 350,518 | 322,617 | 385,487 | ||||||||||||||||||||||||
| Total liabilities | 6,433,322 | 6,463,227 | 6,261,722 | 6,706,493 | 6,314,890 | ||||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
| Common stock, $.01 par value | 207 | 210 | 213 | 222 | 228 | ||||||||||||||||||||||||
| Common stock, nonvoting, $.01 par value | — | — | — | — | — | ||||||||||||||||||||||||
| Additional paid-in capital | 659,640 | 657,682 | 655,128 | 651,199 | 648,330 | ||||||||||||||||||||||||
| Retained earnings | 348,047 | 339,252 | 340,744 | 346,529 | 359,830 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | (187,733) | (142,706) | (141,086) | (134,996) | (145,461) | ||||||||||||||||||||||||
| Treasury stock, at cost | — | (3,537) | (3,537) | (8,419) | (4,882) | ||||||||||||||||||||||||
| Total equity attributable to parent | 820,161 | 850,901 | 851,462 | 854,535 | 858,045 | ||||||||||||||||||||||||
| Noncontrolling interest | 194 | 245 | (785) | (823) | (591) | ||||||||||||||||||||||||
| Total stockholders’ equity | 820,355 | 851,146 | 850,677 | 853,712 | 857,454 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 7,253,677 | $ | 7,314,373 | $ | 7,112,399 | $ | 7,560,205 | $ | 7,172,344 | |||||||||||||||||||
11
Condensed Consolidated Statements of Operations (Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||
| Interest and dividend income: | |||||||||||||||||||||||||||||
| Loans and leases, including fees | $ | 106,773 | $ | 101,289 | $ | 115,446 | $ | 430,666 | $ | 455,816 | |||||||||||||||||||
| Mortgage-backed securities | 7,263 | 7,396 | 8,149 | 30,061 | 34,052 | ||||||||||||||||||||||||
| Other investments | 4,763 | 5,348 | 5,845 | 24,203 | 33,524 | ||||||||||||||||||||||||
| 118,799 | 114,033 | 129,440 | 484,930 | 523,392 | |||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||
| Deposits | 124 | 140 | 283 | 4,744 | 5,430 | ||||||||||||||||||||||||
| FHLB advances and other borrowings | 1,116 | 980 | 1,205 | 5,252 | 6,168 | ||||||||||||||||||||||||
| 1,240 | 1,120 | 1,488 | 9,996 | 11,598 | |||||||||||||||||||||||||
| Net interest income | 117,559 | 112,913 | 127,952 | 474,934 | 511,794 | ||||||||||||||||||||||||
| Provision for credit loss | 10,302 | 28,309 | (6,431) | 87,457 | 56,774 | ||||||||||||||||||||||||
| Net interest income after provision for credit loss | 107,257 | 84,604 | 134,383 | 387,477 | 455,020 | ||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Refund transfer product fees | 949 | 11,209 | 1,061 | 47,302 | 43,980 | ||||||||||||||||||||||||
| Refund advance and other tax fee income | (212) | 696 | (711) | 58,129 | 48,705 | ||||||||||||||||||||||||
| Card and deposit fees | 35,832 | 34,570 | 27,770 | 138,068 | 124,971 | ||||||||||||||||||||||||
| Rental income | 8,497 | 9,607 | 11,864 | 40,671 | 51,686 | ||||||||||||||||||||||||
| (Loss) on sale of securities | — | — | (2,185) | — | (25,084) | ||||||||||||||||||||||||
| Gain on divestitures | — | — | — | — | 15,044 | ||||||||||||||||||||||||
| Secondary market revenue | 11,340 | 13,969 | 10,122 | 33,040 | 37,022 | ||||||||||||||||||||||||
| Gain (loss) on sale of other | 1,301 | (51) | 3,144 | 2,621 | 5,151 | ||||||||||||||||||||||||
| Other income | 7,849 | 6,731 | 7,691 | 27,399 | 26,625 | ||||||||||||||||||||||||
| Total noninterest income | 65,556 | 76,731 | 58,756 | 347,230 | 328,100 | ||||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Compensation and benefits | 51,793 | 52,361 | 50,740 | 211,423 | 200,495 | ||||||||||||||||||||||||
| Refund transfer product expense | (141) | 2,758 | 133 | 11,817 | 11,534 | ||||||||||||||||||||||||
| Refund advance expense | 10 | 90 | 16 | 1,597 | 1,241 | ||||||||||||||||||||||||
| Card processing | 30,172 | 30,671 | 32,693 | 124,755 | 138,443 | ||||||||||||||||||||||||
| Building and software | 14,551 | 13,054 | 11,448 | 52,386 | 42,094 | ||||||||||||||||||||||||
| Operating lease equipment depreciation | 6,984 | 7,545 | 10,861 | 33,599 | 45,636 | ||||||||||||||||||||||||
| Legal and consulting | 7,489 | 6,122 | 14,272 | 24,496 | 36,469 | ||||||||||||||||||||||||
| Intangible amortization | 695 | 718 | 763 | 3,102 | 3,456 | ||||||||||||||||||||||||
| Impairment expense | 749 | 177 | 3,325 | 926 | 5,915 | ||||||||||||||||||||||||
| Other expense | 17,384 | 15,625 | 20,520 | 65,375 | 74,784 | ||||||||||||||||||||||||
| Total noninterest expense | 129,686 | 129,121 | 144,771 | 529,476 | 560,067 | ||||||||||||||||||||||||
| Income before income tax expense | 43,127 | 32,214 | 48,368 | 205,231 | 223,053 | ||||||||||||||||||||||||
| Income tax expense | 4,372 | 3,062 | 9,300 | 28,798 | 36,266 | ||||||||||||||||||||||||
| Net income before noncontrolling interest | 38,755 | 29,152 | 39,068 | 176,433 | 186,787 | ||||||||||||||||||||||||
| Net income attributable to noncontrolling interest | 128 | 183 | 265 | 761 | 915 | ||||||||||||||||||||||||
| Net income attributable to parent | $ | 38,627 | $ | 28,969 | $ | 38,803 | $ | 175,672 | $ | 185,872 | |||||||||||||||||||
Less: Allocation of Earnings to participating securities(1) | 38 | 28 | 139 | 192 | 688 | ||||||||||||||||||||||||
Net income attributable to common shareholders(1) | 38,589 | 28,941 | 38,664 | 175,480 | 185,184 | ||||||||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||||||
| Basic | $ | 1.86 | $ | 1.37 | $ | 1.70 | $ | 8.18 | $ | 7.91 | |||||||||||||||||||
| Diluted | $ | 1.85 | $ | 1.37 | $ | 1.69 | $ | 8.14 | $ | 7.87 | |||||||||||||||||||
| Shares used in computing earnings per common share: | |||||||||||||||||||||||||||||
| Basic | 20,775,162 | 21,065,733 | 22,708,085 | 21,441,203 | 23,397,489 | ||||||||||||||||||||||||
| Diluted | 20,853,388 | 21,165,826 | 22,841,774 | 21,550,594 | 23,522,629 | ||||||||||||||||||||||||
(1) Amounts presented are used in the two-class earnings per common share calculation.
12
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.
| Three Months Ended September 30, | 2026 | 2025 | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned / Paid | Yield / Rate(1) | Average Outstanding Balance | Interest Earned / Paid | Yield / Rate(1) | |||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Cash and fed funds sold | $ | 302,519 | $ | 1,540 | 2.02 | % | $ | 253,387 | $ | 1,887 | 2.95 | % | |||||||||||||||||||||||
| Mortgage-backed securities | 1,049,469 | 7,263 | 2.75 | % | 1,170,189 | 8,149 | 2.76 | % | |||||||||||||||||||||||||||
| Tax-exempt investment securities | 99,856 | 691 | 3.47 | % | 110,456 | 756 | 3.44 | % | |||||||||||||||||||||||||||
| Asset-backed securities | 106,471 | 1,213 | 4.52 | % | 140,398 | 1,825 | 5.16 | % | |||||||||||||||||||||||||||
| Other investment securities | 165,729 | 1,319 | 3.16 | % | 176,532 | 1,377 | 3.10 | % | |||||||||||||||||||||||||||
| Total investments | 1,421,525 | 10,486 | 2.98 | % | 1,597,575 | 12,107 | 3.06 | % | |||||||||||||||||||||||||||
| Commercial finance | 4,409,447 | 88,587 | 7.97 | % | 3,993,526 | 82,939 | 8.24 | % | |||||||||||||||||||||||||||
| Credit sponsorship | 134,551 | 5,604 | 16.52 | % | 252,368 | 16,709 | 26.27 | % | |||||||||||||||||||||||||||
| Tax services | 31,817 | 19 | 0.23 | % | 34,740 | (84) | (0.96) | % | |||||||||||||||||||||||||||
| Warehouse finance | 573,393 | 12,563 | 8.69 | % | 671,802 | 15,882 | 9.38 | % | |||||||||||||||||||||||||||
| Total loans and leases | 5,149,208 | 106,773 | 8.23 | % | 4,952,436 | 115,446 | 9.25 | % | |||||||||||||||||||||||||||
| Total interest-earning assets | $ | 6,873,252 | $ | 118,799 | 6.87 | % | $ | 6,803,398 | $ | 129,440 | 7.56 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 502,469 | 570,878 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 7,375,721 | $ | 7,374,276 | |||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 1,072 | $ | — | 0.05 | % | $ | 950 | $ | — | 0.09 | % | |||||||||||||||||||||||
| Savings | 44,198 | 3 | 0.03 | % | 45,947 | 7 | 0.06 | % | |||||||||||||||||||||||||||
| Money markets | 160,692 | 105 | 0.26 | % | 177,225 | 258 | 0.58 | % | |||||||||||||||||||||||||||
| Time deposits | 1,974 | 6 | 1.14 | % | 2,636 | 5 | 0.75 | % | |||||||||||||||||||||||||||
| Wholesale deposits | 1,066 | 10 | 3.76 | % | 1,041 | 12 | 4.62 | % | |||||||||||||||||||||||||||
| Total interest-bearing deposits (a) | 209,002 | 124 | 0.23 | % | 227,799 | 283 | 0.49 | % | |||||||||||||||||||||||||||
| Overnight fed funds purchased | 48,511 | 496 | 4.06 | % | 48,391 | 571 | 4.69 | % | |||||||||||||||||||||||||||
| Subordinated debentures | 19,881 | 357 | 7.12 | % | 19,779 | 357 | 7.16 | % | |||||||||||||||||||||||||||
| Other borrowings | 13,661 | 263 | 7.64 | % | 13,661 | 277 | 8.03 | % | |||||||||||||||||||||||||||
| Total borrowings | 82,053 | 1,116 | 5.40 | % | 81,831 | 1,205 | 5.84 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 291,055 | 1,240 | 1.69 | % | 309,630 | 1,488 | 1.91 | % | |||||||||||||||||||||||||||
| Noninterest-bearing deposits (b) | 5,933,671 | — | — | % | 5,957,697 | — | — | % | |||||||||||||||||||||||||||
| Total deposits and interest-bearing liabilities | $ | 6,224,726 | $ | 1,240 | 0.08 | % | $ | 6,267,327 | $ | 1,488 | 0.09 | % | |||||||||||||||||||||||
| Other noninterest-bearing liabilities | 309,658 | 293,745 | |||||||||||||||||||||||||||||||||
| Total liabilities | 6,534,384 | 6,561,071 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 841,337 | 813,204 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,375,721 | $ | 7,374,276 | |||||||||||||||||||||||||||||||
| Net interest income and net interest rate spread including noninterest-bearing deposits | $ | 117,559 | 6.79 | % | $ | 127,952 | 7.47 | % | |||||||||||||||||||||||||||
| Net interest margin | 6.79 | % | 7.46 | % | |||||||||||||||||||||||||||||||
| Tax-equivalent effect | 0.01 | % | 0.01 | % | |||||||||||||||||||||||||||||||
Net interest margin, tax-equivalent(2) | 6.80 | % | 7.47 | % | |||||||||||||||||||||||||||||||
| Total cost of deposits (a+b) | 6,142,673 | 124 | 0.01 | % | 6,185,496 | 283 | 0.02 | % | |||||||||||||||||||||||||||
(1) Tax rate used to arrive at the TEY for the three months ended September 30, 2026 and 2025 was 21%.
(2) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.
13
Selected Financial Information
| As of and For the Three Months Ended | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Equity to total assets | 11.31 | % | 11.64 | % | 11.96 | % | 11.29 | % | 11.96 | % | |||||||||||||||||||
| Book value per common share outstanding | $ | 39.54 | $ | 40.48 | $ | 39.89 | $ | 38.51 | $ | 37.65 | |||||||||||||||||||
| Tangible book value per common share outstanding | $ | 24.73 | $ | 25.83 | $ | 25.41 | $ | 24.54 | $ | 24.02 | |||||||||||||||||||
| Common shares outstanding | 20,745,540 | 21,023,902 | 21,327,534 | 22,169,535 | 22,772,570 | ||||||||||||||||||||||||
| Nonperforming assets to total assets | 4.00 | % | 3.79 | % | 1.68 | % | 1.47 | % | 1.42 | % | |||||||||||||||||||
| Nonperforming loans and leases to total loans and leases | 5.61 | % | 5.28 | % | 2.39 | % | 2.15 | % | 2.05 | % | |||||||||||||||||||
| Net interest margin | 6.79 | % | 6.59 | % | 6.63 | % | 6.95 | % | 7.46 | % | |||||||||||||||||||
Adjusted net interest margin(1) | 5.51 | % | 5.27 | % | 5.32 | % | 5.56 | % | 5.43 | % | |||||||||||||||||||
| Cost of deposits | 0.01 | % | 0.01 | % | 0.25 | % | 0.01 | % | 0.02 | % | |||||||||||||||||||
Adjusted cost of deposits (2) | 1.40 | % | 1.43 | % | 1.63 | % | 1.49 | % | 1.58 | % | |||||||||||||||||||
| Return on average assets | 2.08 | % | 1.57 | % | 3.56 | % | 1.87 | % | 2.09 | % | |||||||||||||||||||
| Return on average equity | 18.21 | % | 13.73 | % | 34.67 | % | 16.76 | % | 18.93 | % | |||||||||||||||||||
| Return on average tangible equity | 28.72 | % | 21.61 | % | 54.41 | % | 26.72 | % | 30.65 | % | |||||||||||||||||||
| Full-time equivalent employees | 1,224 | 1,196 | 1,181 | 1,170 | 1,179 | ||||||||||||||||||||||||
Non-GAAP Reconciliations
| Net Interest Margin and Cost of Deposits | At and For the Three Months Ended | ||||||||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2026 | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||||
| Average interest earning assets | $ | 6,873,252 | $ | 6,876,094 | $ | 7,653,765 | $ | 6,812,693 | $ | 6,803,398 | |||||||||||||||||||
| Net interest income | $ | 117,559 | $ | 112,913 | $ | 125,124 | $ | 119,338 | $ | 127,952 | |||||||||||||||||||
| Net interest margin | 6.79 | % | 6.59 | % | 6.63 | % | 6.95 | % | 7.46 | % | |||||||||||||||||||
Average total deposits | $ | 6,142,673 | $ | 6,173,468 | $ | 7,021,044 | $ | 6,173,866 | $ | 6,185,496 | |||||||||||||||||||
| Deposit interest expense | $ | 124 | $ | 140 | $ | 4,274 | $ | 206 | $ | 283 | |||||||||||||||||||
| Cost of deposits | 0.01 | % | 0.01 | % | 0.25 | % | 0.01 | % | 0.02 | % | |||||||||||||||||||
Adjusted Net Interest Margin(1) and Adjusted Cost of Deposits(2) | |||||||||||||||||||||||||||||
| Average interest earning assets | $ | 6,873,252 | $ | 6,876,094 | $ | 7,653,765 | $ | 6,812,693 | $ | 6,803,398 | |||||||||||||||||||
| Net interest income | 117,559 | 112,913 | 125,124 | 119,338 | 127,952 | ||||||||||||||||||||||||
Less: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet | 21,625 | 21,897 | 23,971 | 23,013 | 24,346 | ||||||||||||||||||||||||
| Less: Gross interest income on credit sponsorship loans | 509 | 718 | 814 | 905 | 10,456 | ||||||||||||||||||||||||
| Adjusted net interest income | $ | 95,425 | $ | 90,298 | $ | 100,339 | $ | 95,420 | $ | 93,150 | |||||||||||||||||||
Adjusted net interest margin(1) | 5.51 | % | 5.27% | 5.32% | 5.56% | 5.43 | % | ||||||||||||||||||||||
| Average total deposits | $ | 6,142,673 | $ | 6,173,468 | $ | 7,021,044 | $ | 6,173,866 | $ | 6,185,496 | |||||||||||||||||||
| Deposit interest expense | 124 | 140 | 4,274 | 206 | 283 | ||||||||||||||||||||||||
Add: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet | 21,625 | 21,897 | 23,971 | 23,013 | 24,346 | ||||||||||||||||||||||||
| Adjusted deposit expense | $ | 21,749 | $ | 22,037 | $ | 28,245 | $ | 23,219 | $ | 24,629 | |||||||||||||||||||
Adjusted cost of deposits(2) | 1.40 | % | 1.43 | % | 1.63 | % | 1.49 | % | 1.58 | % | |||||||||||||||||||
(1) Adjusted net interest margin includes contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excludes the gross interest income on credit sponsorship loans.
(2) Adjusted cost of deposits includes contractual, rate-related card processing expense associated with deposits on the Company’s balance sheet.
14
1Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation THE PATHWARD STORY UPDATED OCTOBER 21, 2026
2Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation This investor update contains “forward-looking statements” which are made in good faith by Pathward Financial, Inc. (“Pathward” or the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” “target,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results, including our performance expectations and fiscal 2027 financial guidance; our fiscal 2027 goals and strategy; progress on key strategic initiatives; future performance and business prospects; our value proposition, including opportunities for revenue growth; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; impacts of our evolved operating model; expectations with respect to credit performance; expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology, including impacts of technology investments. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the Fed Funds rate, and changes in international trade policies, tariffs and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy, and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the ability of the Company’s subsidiary Pathward®, N.A. to maintain its Durbin Amendment exemption; the risks of dealing with or utilizing third parties, including, in connection with the Company’s prepaid card and tax refund advance businesses; the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of the Company’s strategic partners’ refund advance products; our relationship with and any actions which may be initiated by our regulators, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by Pathward of its status as a well-capitalized institution, changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase; the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts, government shutdowns, weather-related disasters, or public health events, such as pandemics and any governmental or societal responses thereto; and the other factors described under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company's fiscal year ended September 30, 2025 (“FY2025”) and in other filings made by the Company with the Securities and Exchange Commission (“SEC”). The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in or referred to in this section. The forward-looking statements included herein speak only as of the date of this investor update. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances or future events or for any other reason, except as required by applicable law. This presentation includes certain adjusted non-GAAP financial measures, which are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and exclude the impact of certain items. Management uses these non-GAAP financial measures to evaluate the Company’s performance and manage its operations and believes such measures to be helpful in understanding the Company's results of operations or financial position. These non-GAAP financial measures are intended to complement, and are not considered as alternatives to or substitutes for, the most directly comparable GAAP financial measures, as reconciled in the below tables. Additionally, such non-GAAP financial measures may not be comparable to or calculated in the same manner as similarly titled measures used by other companies. FORWARD LOOKING STATEMENTS
3Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Since our founding, we have worked to advance financial inclusion. We seek out diverse partners, including fintechs, affinity groups, government agencies, and other banks and work with them to identify markets where people and businesses are underserved. Our national bank charter, coordination with regulators, and focus on risk and compliance allow us to guide our partners and deliver financial products, services and funding to the people and businesses who need them the most. We are powering financial inclusion. AT PATHWARD®, LEADING THE WAY TO FINANCIAL ACCESS IS THE HEART OF OUR BUSINESS.
4Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation BUILDING A DIVERSIFIED COMPANY DEDICATED TO FINANCIAL EMPOWERMENT FOR INDIVIDUALS AND BUSINESSES 1993 Listed on Nasdaq: CASH 2015 / 2016 Entered Tax Services business by acquiring Refund Advantage, SCS, and EPS Financial 2020 Completed sale of Retail Bank division to focus on national banking operations and payments Developed a governance structure that aligns with key sustainability efforts Converted to National Bank Charter 2004 Created Prepaid Card Sponsorship business - now Payments Sponsorship 2014 Acquired AFS/IBEX, an insurance premium finance company 2018 Acquired Crestmark Bancorp, a commercial lending company Deposits from Payments Sponsorship business grew dramatically, funding substantial investments in securities, treasuries, and the bond portfolio. 1954 Founded as a savings and loan bank 2021 Sold Meta trademarks and began rebranding initiative 2022 Completed rebranding as Pathward Financial 2024 Completed sale of Insurance Premium Finance business line to focus on higher return on asset verticals Note: Timeline and years presented are on a calendar year basis.
5Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Issuing Fee income and stable deposits Acquiring Fee income Financial Institution Solutions Fee income Warehouse Finance Interest income Tax Solutions Fee income and interest income Working Capital Interest income Equipment Finance Fee income and interest income Structured Finance Fee income and interest income Credit Sponsorship Fee income and interest income PAYMENTS SPONSORSHIP LENDING RESILIENT BUSINESS MODEL WITH DIVERSIFIED REVENUE Digital Payments Fee income
6Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Issuing Acquiring Digital Payments Financial Institution Solutions Tax Solutions A leading debit and prepaid card issuer sponsoring partner programs Partner with a network of tax preparers offering a variety of products Partner with financial institutions to offer additional financial services Enable partners to move money quickly, efficiently and at a large scale across multiple payment rails Accepting and processing merchant payments with our partners PAYMENTS SPONSORSHIP COLLABORATES WITH PARTNERS TO INNOVATE
7Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation PATHWARD LENDS ACROSS VARIOUS SOLUTIONS Ready cash for liquidity needs to new or growing companies in cyclical or seasonal industries Provide access to equipment financing, through loans and leases, without sacrificing cash flows Assist small to large businesses and rural borrowers with alternative energy financing, conventional loans, as well as SBA and USDA lending to fund growth, expansion and refinancing Working Capital Equipment Finance Structured Finance Senior asset-backed warehouse credit lines to provide capital to small businesses and consumers Warehouse Finance Enable partners’ lending solutions to serve diverse credit needs Credit Sponsorship
8Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Record of strong earnings growth and profitability above banking industry averages Excess capital generating business enables ongoing return of value to stockholders 2 3 41 5 Experienced leader in fast- growing payments sector, with diversified portfolio of high-quality financial partners Resilient commercial finance loan portfolio produces attractive returns throughout economic cycles Consultative risk and compliance capabilities with advantageous national bank charter INVESTMENT HIGHLIGHTS
9Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Earnings Per Common Share Return on Average Assets Total Revenue2 ($ in millions) 1FY22 reflects GAAP and non-GAAP adjusted earnings. FY23-FY26 display GAAP earnings as the net adjustments for the periods are insignificant. See appendix for non-GAAP reconciliations. 2FY22 and FY23 includes $50.0 million and $10.0 million gain on sale of trademarks, respectively. 3Peer data includes commercial insured banks with assets between $3-10 billion. Return on average assets information gathered from the Federal Financial Institutions Examination Council database. 1 2 3 4 5 $797 $840 $822 2022 2023 2024 2025 2026 $618 $728 Gain on sale of trademarks 2.05% 2.40% 2.46% 2.30% 1.81% 2022 2023 2024 2025 2026 2.13% ROAA inclusive of one-time items Peer average3 44.58% 47.89% 38.75% 32.89% 29.73% 2022 2023 2024 2025 2026 35.01% EPS inclusive of one-time items Return on Average Tangible Equity RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 $5.24 $7.20 $7.87 $8.14 2022 2023 2024 2025 2026 $5.09 CAGR +12% ROATE inclusive of one-time items
10Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 2 3 4 5 $44.8M TOTAL DIVIDENDS PAID 2Q19 to 4Q26 $948.8M TOTAL SHARE REPURCHASES 2Q19 to 4Q26 $993.6M TOTAL CAPITAL RETURNED 2Q19 to 4Q26 TRACK RECORD OF STRONG EARNINGS GROWTH AND RIGHT-SIZED BALANCE SHEET ENABLES ONGOING RETURN OF CAPITAL
11Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 2 3 4 5 Fed / Settlement ATM Sponsorship Processor AcquiringProcessor Issuing FinTech / Program Manager Partners Financial Institution Clients Debit/Credit Networks End User Card Holder / Consumer End User Merchants Issuing/Acquiring/ Originating Bank Regulatory/Compliance Oversight OCC Primary Regulator PATHWARD SERVES AS A HUB OF THE PAYMENTS ECOSYSTEM
12Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Fiscal Year End Commercial Finance Loan Balances ($ in millions) 2026 1.17% 2006 1.72% 2007 1.10% 2008 1.17% 2009 1.61% 2010 0.68% 2011 0.04% 2012 0.69% 2013 0.67% 2014 0.36% 2015 -0.01% 2016 0.33% 2017 0.67% 2018 0.78% 2019 0.50% 2020 0.67% 2021 0.56% 2022 0.66% 2023 0.49% 2024 0.52% Fiscal Year Net Charge Off % 1 2 3 4 5 Pathward Acquires Crestmark Insurance premium finance portfolio moved to held for sale during 4QFY24 2025 0.64% COMMERCIAL FINANCE PORTFOLIO CONTINUES TO GROW WITH A FOCUS ON RISK ADJUSTED RETURNS $113 $92 $140 $158 $207 $324 $368 $414 $474 $591 $665 $858 $1,510 $1,916 $2,308 $2,725 $3,025 $3,727 $3,296 $3,924 $4,441 Crestmark results are reflected for the years 2006 through 2017.
13Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 2 3 4 5 RISK AND COMPLIANCE CAPABILITIES Enterprise Risk Management Pathward’s Enterprise Risk Management (ERM) program applies corporate governance to risk-taking activities. The ERM program sets strategy across the enterprise and works closely with the lines of business to ensure that risks are appropriately identified and managed. Business Continuity Management Business Continuity Management (BCM) sets standards and testing to ensure our Company remains resilient in case of disaster. Pathward’s standards comply with Federal Financial Institutions Examination Council (FFIEC) and Office of the Comptroller of the Currency (OCC) guidance. Third-Party Risk Management Just as Pathward’s ERM program oversees our own actions, our Third-Party Risk Management program ensures that our third-party relationships are controlled and mitigated. Our policy and strategy encourage us to protect the Company from risk, monitor third-party activities, and report risk events. Bank Secrecy Act / Anti-Money Laundering To protect our customers, partners and the Company from the risks of fraud, money laundering, terrorist financing and other illicit activity, Pathward’s compliance programs are designed to support our compliance with all federal programs and sanctions.
14Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation QUARTERLY INVESTOR UPDATE FOURTH QUARTER AND F ISCAL YEAR 2026
15Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation FIVE YEARS OF PURPOSE-DRIVEN PROGRESS A milestone made possible by the dedication of our employees and a strategy anchored in our purpose. Navigated COVID-19 Helped lead the Company through unprecedented times while continuing to deliver the same level of service to partners and customers. Rebranded as Pathward Unified the Company under a single brand and a clear purpose: financial inclusion. Reshaped the balance sheet Strategically repositioned the balance sheet and evolved the business model. Strengthened the platform Became a trusted platform that enables our partners to thrive by investing in people, processes, and technology.
16Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation TRUSTED PLATFORM THAT ENABLES OUR PARTNERS TO THRIVE Maintain an optimized balance sheet Technology to facilitate evolution and scalability People and culture are important assets Mature risk and compliance framework Client experience
17Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ($ IN MILLIONS) SOLID PERFORMANCE IN CORE BUSINESSES, DELIVERING HIGHER COMMERCIAL FINANCE INTEREST INCOME AND NONINTEREST INCOME… 1. Reflects Q4 FY 2025 interest income of the loans included in the credit sponsorship portfolio sale in October 2025. Net Interest Income Noninterest Income $0.8 $5.7 4Q2025 -$11.9 Sale of Credit Sponsorship Loans1 -$1.6 Investment Portfolio Credit Sponsorship -$3.6 Other Commercial Finance $0.3 Interest Expense 4Q2026 $128.0 $117.6 $1.2 $0.5 $0.4 $4.6 $3.5 4Q2025 Secondary Market Revenue Other Income Tax Products -$3.4 Rental Income Core Card and Deposit Fees Servicing Fees on Custodial Deposits 4Q2026 $58.8 $65.6
18Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $38.8 $38.6 Q4 2025 Q4 2026 0% Net Income Attributable to Parent $1.69 $1.85 Q4 2025 Q4 2026 +9% Earnings per Diluted Share $144.8 $129.7 Q4 2025 Q4 2026 -10% Noninterest Expense ($ IN MILLIONS, EXCEPT PER SHARE DATA) …COMBINED WITH DISCIPLINED EXPENSE MANAGEMENT
19Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ($ IN MILLIONS, EXCEPT PER SHARE DATA) FULL YEAR RESULTS FOR FISCAL 2026 $511.8 $474.9 FY 2025 FY 2026 -7% Net Interest Income $560.1 $529.5 FY 2025 FY 2026 -5% Noninterest Expense $328.1 $347.2 FY 2025 FY 2026 +6% Noninterest Income $185.9 $175.7 FY 2025 FY 2026 -5% Net Income Attributable to Parent $7.87 $8.14 FY 2025 FY 2026 +3% Earnings per Diluted Share
20Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $5,886.9 $5,691.6 Q4 FY 2025 Q4 FY 2026 -3% DEPOSITS 1 Period ending ($ in millions) 1. Does not include custodial deposits. • Average Q4 FY 2026 custodial deposits held in custody at program banks of $646 million compared to $237 million during the prior-year period. • $630 million of custodial deposits as of September 30, 2026 compared to $210 million as of September 30, 2025. • Deposits modestly decreased at September 30, 2026 when compared to the prior-year period. DEPOSIT BASE SUPPORTS ASSET GROWTH
21Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $4,664.9 $5,084.6 Q4 FY 2025 Q4 FY 2026 9% TOTAL LOANS AND LEASES Period ending ($ in millions) Q4 FY2025 Q1 FY2026 Q2 FY2026 Q3 FY2026 Q4 FY2026 $1,282.9 $1,891.0 $1,311.2 $1,863.6 $2,210.6 TOTAL LOANS AND LEASES ORIGINATIONS1 Period ending ($ in millions) Equipment Finance Working Capital Structured Finance Credit Sponsorship 1. Total loan originations excludes certain portfolios such as warehouse finance, tax services, joint ventures, and other commercial finance loans. Includes new loan originations only. Does not include draws, loan and lease renewals, or purchases. TOTAL LOANS AND LEASES INCREASED FROM Q4 2025 • Period ending balance increase of 9% was driven by the commercial finance portfolio. • $2.2 billion in loans and leases originations1 during the quarter compared to $1.3 billion in the prior year quarter.
22Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $1,053 $750 $630 $382 $162 $105 1. These custodial deposits can be brought back on balance sheet, as needed, as they are immediately callable. ($ in millions) 281,562 2,092,199 Q4 FY 2026 FY 2026 Share RepurchasesLiquidity Sources $3,082 Custodial Deposits1 Cash and Cash Equivalents Unpledged Investment Securities FHLB Borrowing Capacity Fed Discount Window Funds Unsecured Funding and Other Wholesale Funding Options STRONG BALANCE SHEET ALLOWS FOR RETURN OF CAPITAL TO SHAREHOLDERS
23Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1. Information on this slide is presented as of October 21, 2026, reflects the Company’s updated financial outlook, certain of the Company’s financial targets, and key assumptions, and will not be updated or affirmed unless and until the Company publicly announces such an update or affirmation. The guidance for fiscal 2027, the Company’s financial targets and key economic assumptions contain forward-looking statements and actual results or conditions may differ materially. See the information set forth below the heading "Forward Looking Statements" on slide 2 of this presentation. FISCAL YEAR 2027 GUIDANCE1 $9.50 - $10.00 EPS Assumes no additional rate changes during the year Effective tax rate of 18% to 22% Secondary market revenues of $5 - $7 million per quarter Includes expected share repurchases
24Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Q&A
25Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Refund Transfer Product Fees 14%Refund Advance and Other Tax Product Fees 17% Card and Deposit Fees 40% Rental Income 12% Secondary Market Revenue 10% Other Income 7% FULL YEAR 2026 NONINTEREST INCOME BREAKDOWN . Noninterest income 42% Net interest income 58% FULL YEAR 2026 REVENUE BREAKDOWN • Noninterest income represents 42% of year-to- date total revenue. • Majority of noninterest income fees are generated by the Company’s Payments Sponsorship capabilities. • The majority of Company’s tax season revenue is recorded as noninterest income during the second quarter of each fiscal year. • Pathward’s large fee income base provides stability through interest rate and credit cycles, while propelling continued revenue growth. DIVERSIFIED NONINTEREST INCOME STREAMS
26Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation COST OF DEPOSITS 1.40% 0.23% 3.67% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 Adjusted Cost of Deposits1 Cost of Interest Bearing Deposits Quarterly Average Effective Fed Funds Rate 1. Adjusted Cost of Deposits represents cost of total deposits with the additional incorporation of the Company’s noninterest variable card processing expenses impacted by interest rates associated with deposits on the Company’s balance sheet. See appendix reconciliation of non-GAAP financial measures. • During Q4 FY2026, approximately 67% of the deposit balances were subject to variable card processing expenses, derived from contractual agreements with certain Payments Sponsorship relationships tied to a rate index, typically the Effective Fed Funds Rate. • These costs reprice immediately upon a change in the applicable rate index, leading to an instant cost change as compared to the earning-asset yields that will generally experience a lag in repricing. • As of September 30, 2026, Pathward also managed $630 million in custodial deposits and earned $6.1 million of recordkeeping servicing fee income during fiscal fourth quarter. That income is also typically reflective of the Effective Fed Funds Rate. COST OF DEPOSITS
27Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation . 72% 4% 24% Fixed Rate > 1 Year TOTAL LOAN AND LEASE PORTFOLIO PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable NET INTEREST MARGIN AND LOAN YIELDS 6.73% 6.72% 6.77% 7.26% 7.32% 7.38% 7.12% 7.43% 7.46% 6.95% 6.63% 6.59% 6.79% 4.94% 4.72% 4.73% 5.08% 5.23% 5.25% 5.09% 5.33% 5.43% 5.56% 5.32% 5.27% 5.51% 9.18% 9.10% 9.27% 9.61% 9.64% 9.55% 9.54% 9.33% 9.25% 8.56% 8.43% 7.99% 8.23% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 NIM Adjusted NIM Loan Yields2 1. Fixed rate loans and leases are shown for contractual periods; 2. Includes contractual, rate-related processing expense associated with deposits on the Company’s balance sheet and excludes the gross interest income on credit sponsorship loans. See appendix for reconciliation to most directly comparable GAAP measure. • As of September 30, 2026, $3.5 billion, or 72% of loans and leases, contained floating or variable interest rates. Of these, $2.5 billion are tied to Fed Funds or Prime, with the remaining tied to either SOFR or the CMT. • Remain focused on prudent growth in the commercial finance loan portfolio. • 4Q FY 2026 NIM decreased while adjusted NIM2 increased compared to the prior-year period. • $1.2 billion securities portfolio provides cash flow for future commercial finance loan growth. LOAN PORTFOLIO INTEREST RATE SENSITIVITY
28Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 7.66% Q4 FY 2026 Quarterly Yield1 11% Of Loan Portfolio Lending Solution Balance Sheet Category 4Q25 3Q26 4Q26 Equipment Finance (large ticket) Lease financing $107.6 $87.3 $103.7 Term lending 522.3 446.7 437.6 Equipment Finance (small ticket) Lease financing 0.2 0.1 0.1 Term lending 60.3 29.8 22.6 TOTAL $690.4 $563.9 $564.0 1. Interest income does not include any potential gain(loss) on sale of equipment that was previously on a lease. ($ in millions) • Loan and lease financing to provide access to needed equipment • Focus on equipment critical to business operations • Borrowers are mostly investment grade companies • Primarily fixed rate loans and leases • Flexibility to sell direct originations to secondary market EQUIPMENT FINANCE LENDING
29Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 10.45% Q4 FY 2026 Quarterly Yield 18% Of Loan Portfolio Lending Solution Balance Sheet Category 4Q25 3Q26 4Q26 Working Capital Asset-based lending $593.3 $697.7 $697.2 Factoring 217.5 220.0 213.9 TOTAL $810.8 $917.7 $911.1 ($ in millions) • Provides working capital for companies to meet short-term operational requirements • Primarily variable rate loans with majority of floors at or above 6% • Bank has dominion of funds on all borrowers • Heavily collateral-managed • Historically excels during economic downturns WORKING CAPITAL LENDING
30Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 7.30% Q4 FY 2026 Quarterly Yield1 57% Of Loan Portfolio Lending Solution Balance Sheet Category 4Q25 3Q26 4Q26 Guaranteed portion of US govt SBA/USDA loans SBA/USDA $242.2 $186.9 $193.7 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 269.3 381.0 367.9 Renewable energy debt financing2 (term lending only) Term lending 1,391.0 1,847.1 2,025.4 Other Term lending 328.9 343.3 305.6 TOTAL $2,231.4 $2,758.3 $2,892.6 1. Interest income does not include any gain(loss) on sale of loans; 2. Total renewable energy debt financing outstanding was $2.25 billion as of 4Q26. The majority of these balances are in the term lending and SBA/USDA balance sheet categories. ($ in millions) • Funding small to large businesses, including rural borrowers • SBA, USDA, and conventional loans with fixed or variable interest rates • Debt refinance, leveraged acquisitions, and alternative energy project finance • SBA and USDA guarantees can be sold on the secondary market STRUCTURED FINANCE LENDING
31Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 8.69% Q4 FY 2026 Quarterly Yield 10% Of Loan Portfolio Lending Solution Balance Sheet Category 4Q25 3Q26 4Q26 Warehouse Warehouse finance $645.2 $647.6 $527.0 TOTAL $645.2 $647.3 $527.0 ($ in millions) • Structured revolving asset-backed warehouse credit facilities used to finance specialty finance company originations • Pathward as first-out participant sits in a risk reduced position benefiting from subordinate tranches below it • Each credit facility is primarily secured by consumer and small business receivables (i.e.: installment loans, title loans, debt settlement fees, revenue- based financing and lease to own receivables) • Structured waterfalls provide protection for Pathward in adverse trigger scenarios WAREHOUSE FINANCE LENDING WATERFALL All Loan/Collateral Cash Flows Admin Fees (0-5%) First-Out Tranche (Pathward Position) $50M (50%) Junior Tranche $40M (40%) Equity Tranche $10M (10%) $100M Facility EXAMPLE
32Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 16.52% Q4 FY 2026 Quarterly Yield 2% Of Loan Portfolio Lending Solution Balance Sheet Category 4Q25 3Q26 4Q26 Credit Sponsorship Credit Sponsorship $93.3 $99.4 $108.4 TOTAL $93.3 $99.4 $108.4 ($ in millions) • Consumer credit programs with marketplace lenders offer Pathward a risk-adjusted return • Protected by certain layers of credit support and balance sheet flexibility • Programs are offered to strategic partners as part of multi-threaded sponsorship opportunities • Agreements typically provide for “excess spread” build-up and protection through a priority of payment within a waterfall CREDIT SPONSORSHIP LENDING WATERFALL Credit Sponsorship Payments - Principal, Interest, Fees Collection Account Principal Repayment to Pathward Principal Losses to Pathward Servicing Remaining excess spread to Pathward-owned escrow reserve Reserve release to partner is conditional (subordinate) based on product performance Pathward’s agreed upon interest return
33Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1. Distribution by NAICS codes; excludes tax services, credit sponsorship and certain joint ventures; calculated based on aggregate principal amount of commercial finance loans and leases; includes operating lease rental equipment of $117M. $1,397 $782 $721 $706 $335 $261 $237 $136 $119 $85 Utilities Construction Manufacturing Finance and Insurance Wholesale Trade Mining, Quarrying, and Oil and Gas Extraction Transportation and Warehousing Other Administrative, Support, Waste Management, and Remediation Services Real Estate and Rental and Leasing ($ in millions) TOP 10 LOAN AND LEASE CONCENTRATIONS BY INDUSTRY1
34Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ASSET/LIABILITY GAP ANALYSIS 1 Fixed rate securities, loans and leases are shown for contractual periods. 2%56% 4% 38% Fixed Rate > 1 Year EARNING ASSET PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) • Note: Parallel Shock is a statutorily required calculation of the impact of an immediate change in interest rates, assuming other variables remain unchanged. Ramp reflects additional modeling of more gradual increases in interest rates. The Alternative scenarios mirror the Parallel Shock and Ramp with the additional incorporation of the Company’s card fee income and card processing expenses impacted by interest rates. • Data presented on this page is reflective of the Company’s balance sheet mix at a point in time and calculated for regulatory purposes. Future rate changes would impact a multitude of variables beyond the Company’s control, and as a result, the data presented is not intended to be used for forward-looking modeling purposes. • Interest rate risk modeling shows asset sensitive balance sheet; net interest income graph shows impact of an instantaneous, parallel rate shock and alternative views of a gradual parallel ramp and a parallel rate shock. • Management employs rigorous modeling techniques under a variety of yield curve shapes, twists and ramps. -15% 0% 15% -200 -100 +100 +200 Parallel Shock Alternative Parallel Shock Alternative Ramp 12-MONTH INTEREST RATE SENSITIVITY FROM BASE NET INTEREST INCOME -2,000 0 2,000 4,000 6,000 Month 1-12 Month 13-36 Month 37-60 Month 61-180 V ol um e ($ M ) Period Variance Total Assets Total Liabilities INTEREST RATE RISK MANAGEMENT (as of September 30, 2026)
35Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation KEY CREDIT METRICS • Annualized adjusted net charge-offs1: – 1.89% of average loans in 4Q26 – 1.14% of average loans over last 12 months • Allowance for credit loss (“ACL”) of $67.3 million as of September 30, 2026. 1. See appendix for non-GAAP reconciliations. Tax services NCOs and related seasonal average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the tax services business line. Net charge-offs presented above includes the gross accounting treatment over certain credit sponsorship programs, under which credit sponsorship charge-offs are protected by layers of credit support in the waterfall structure. The benefit of the credit enhancements related to these charge-offs are received and recorded separately in other noninterest expense. $99.1 $109.1 $117.7 $275.1 $289.3 2.05% 2.15% 2.39% 5.28% 5.61% 4Q25 1Q26 2Q26 3Q26 4Q26 NPLs NPLs / Total Loans NONPERFORMING LOANS (“NPLS”) ($ in millions) ASSET QUALITY $16.5 $0.2 $15.6 $16.9 $24.4 1.33% 0.02% 1.29% 1.35% 1.89% 1.13% 0.79% 0.82% 0.99% 1.14% 4Q25 1Q26 2Q26 3Q26 4Q26 Adj. NCOs Adj. NCOs / Adj. Average Loans Adj. NCOs / Adj. Average Loans - LTM ADJUSTED NET CHARGE-OFFS (“NCOS”)1 ($ in millions, excludes tax services NCOs and related seasonal average loans) $46.2 $(2.2) $5.8 $16.0 $52.0 3.70% -0.18% 0.43% 1.26% 4.01% 1.55% 1.15% 1.11% 1.28% 1.38% 4Q25 1Q26 2Q26 3Q26 4Q26 NET CHARGE-OFFS (“NCOS”)1 ($ in millions) NCOs NCOs / Average Loans NCOs / Average Loans - LTM (as of September 30, 2026)
36Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation At September 30, 2026¹ Pathward Financial, Inc. Pathward, N.A. Tier 1 Leverage 9.85% 10.09% Common Equity Tier 1 11.83% 12.37% Tier 1 Capital 12.07% 12.37% Total Capital 13.59% 13.56% Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $162 Unpledged Investment Securities $105 FHLB Borrowing Capacity $382 Funds Available through Fed Discount Window $1,053 Unsecured Funding Providers $750 Custodial Deposit Balances Held at Other Banks $630 Total Liquidity $3,082 9.79% 9.51% 8.62% 9.66% 9.85%10.00% 9.84% 8.85% 9.91% 10.09% 4Q25 1Q26 2Q26 3Q26 4Q26 TIER 1 LEVERAGE RATIO 14.27% 13.67% 14.52% 13.33% 13.59%14.19% 13.73% 14.49% 13.31% 13.56% 4Q25 1Q26 2Q26 3Q26 4Q26 TOTAL CAPITAL RATIO Pathward Financial, Inc. Pathward, N.A. Minimum Requirement to be Well-Capitalized under Prompt Corrective Action Provisions 1. Regulatory capital reflects the Company's election of the five-year CECL transition for regulatory capital purposes. Capital ratios are preliminary pending completion and filing of the Company's and Bank's regulatory reports. CAPITAL AND SOURCES OF LIQUIDITY (as of September 30, 2026)
37Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation APPENDIX
38Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation NON-GAAP RECONCILIATION For the quarter ended ($ in thousands) Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 Sep 30, 2026 Net charge-offs (recoveries) 46,219 (2,213) 5,837 16,029 52,025 Less: Tax services net charge-offs (recoveries) 29,769 (2,459) (9,752) (879) 27,588 Adjusted net charge-offs 16,450 246 15,589 16,908 24,437 Quarterly average loans and leases 4,952,436 4,998,057 5,526,297 5,082,469 5,149,208 Less: Quarterly average tax services loans 34,740 45,053 620,285 41,206 31,817 Adjusted quarterly average loans and leases 4,917,696 4,953,004 4,906,012 5,041,263 5,117,392 Annualized NCOs/average loans and leases 3.70% (0.18%) 0.43% 1.26% 4.01% Adjusted annualized NCOs/adjusted average loans and leases1 1.33% 0.02% 1.29% 1.35% 1.89% Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the last twelve months ended ($ in thousands) Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 Sep 30, 2026 Net charge-offs 74,991 56,507 55,969 65,872 71,678 Less: Tax services net charge-offs (recoveries) 22,093 19,121 16,182 16,679 14,498 Adjusted net charge-offs 52,898 37,386 39,787 49,193 57,180 Average loans and leases 4,840,354 4,928,773 5,038,259 5,139,815 5,189,008 Less: Average tax services loans 167,947 170,014 185,778 185,321 184,590 Adjusted average loans and leases 4,672,407 4,758,759 4,852,481 4,954,494 5,004,418 NCOs/average loans and leases 1.55% 1.15% 1.11% 1.28% 1.38% Adjusted NCOs/adjusted average loans and leases1 1.13% 0.79% 0.82% 0.99% 1.14% 1. Tax services NCOs and average loans are excluded to adjust for cyclicity of activity related to the overall economics of the Company’s tax services business line.
39Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation For the quarter ended For the year ended ($ in thousands) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Sep-25 Sep-26 Average interest earning assets 6,727,076 7,035,624 7,638,907 6,804,507 6,928,365 6,736,877 7,761,138 6,602,267 6,803,398 6,812,693 7,653,765 6,876,094 6,873,252 6,972,641 7,051,152 Net interest income 114,158 118,927 128,634 122,750 127,514 125,251 136,279 122,313 127,952 119,338 125,124 112,913 117,559 511,794 474,934 Less: Contractual, rate-related processing expense associated with deposits on the Company’s balance sheet 21,929 25,891 28,024 25,320 24,631 24,241 26,852 23,831 24,346 23,013 23,971 21,897 21,625 99,270 90,506 Less: Gross interest income on credit sponsorship loans 8,396 9,566 10,753 11,457 11,823 11,936 11,937 10,717 10,456 905 814 718 509 45,046 2,946 Adjusted net interest income 83,833 83,470 89,857 85,973 91,060 89,074 97,490 87,765 93,150 95,420 100,339 90,298 95,425 367,478 381,482 Adjusted net interest margin 4.94% 4.72% 4.73% 5.08% 5.23% 5.25% 5.09% 5.33% 5.43% 5.56% 5.32% 5.27% 5.51% 5.27% 5.41% Average total deposits 6,204,934 6,558,189 7,168,673 6,260,990 6,199,271 6,081,236 7,181,308 6,002,547 6,185,496 6,173,866 7,021,044 6,173,468 6,142,673 6,359,147 6,374,798 Deposit interest expense 1,954 3,526 6,685 1,689 1,119 775 4,086 287 283 206 4,274 140 124 5,430 4,744 Add: Contractual, rate-related processing expense associated with deposits on the Company’s balance sheet 21,929 25,891 28,024 25,320 24,631 24,241 26,852 23,831 24,346 23,013 23,971 21,897 21,625 99,270 90,506 Adjusted deposit expense 23,883 29,417 34,709 27,009 25,750 25,016 30,938 24,118 24,629 23,219 28,245 22,037 21,749 104,700 95,250 Adjusted cost of deposits2 1.53% 1.78% 1.95% 1.74% 1.65% 1.63% 1.75% 1.61% 1.58% 1.49% 1.63% 1.43% 1.40% 1.65% 1.49% 1 Adjusted net interest margin includes contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excludes the gross interest income on credit sponsorship loans. 2. Adjusted cost of deposits includes contractual, rate-related card processing expense associated with deposits on the Company’s balance sheet. For the quarter ended For the year ended ($ in thousands) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Sep-25 Sep-26 Average interest earning assets 6,727,076 7,035,624 7,638,907 6,804,507 6,928,365 6,736,877 7,761,138 6,602,267 6,803,398 6,812,693 7,653,765 6,876,094 6,873,252 6,972,641 7,051,152 Net interest income 114,158 118,927 128,634 122,750 127,514 125,251 136,279 122,313 127,952 119,338 125,124 112,913 117,559 511,794 474,934 Net interest margin 6.73% 6.72% 6.77% 7.26% 7.32% 7.38% 7.12% 7.43% 7.46% 6.95% 6.63% 6.59% 6.79% 7.34% 6.74% Average total deposits 6,204,934 6,558,189 7,168,673 6,260,990 6,199,271 6,081,236 7,181,308 6,002,547 6,185,496 6,173,866 7,021,044 6,173,468 6,142,673 6,359,147 6,374,798 Deposit interest expense 1,954 3,526 6,685 1,689 1,119 775 4,086 287 283 206 4,274 140 124 5,430 4,744 Cost of deposits 0.12% 0.21% 0.38% 0.11% 0.07% 0.05% 0.23% 0.02% 0.02% 0.01% 0.25% 0.01% 0.01% 0.09% 0.07% Net Interest Margin and Cost of Deposits Adjusted Net Interest Margin1 and Adjusted Cost of Deposits NON-GAAP RECONCILIATION
40Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation NON-GAAP RECONCILIATION For the last twelve months ended ($ in thousands) Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 Sep 30, 2026 Noninterest expense – GAAP 560,067 559,483 554,762 544,561 529,476 Net interest income 511,794 505,882 494,727 485,327 474,934 Noninterest income 328,100 324,485 337,141 340,430 347,230 Total revenue -- GAAP 839,894 830,367 831,868 825,757 822,164 Efficiency ratio, LTM 66.68% 67.38% 66.69% 65.95% 64.40% Efficiency Ratio Adjusted Efficiency Ratio For the last twelve months ended ($ in thousands) Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Jun 30, 2026 Sep 30, 2026 Noninterest expense – GAAP 560,067 559,483 554,762 544,561 529,476 Less: Contractual. rate-related card processing expense 104,081 102,258 99,297 97,405 95,433 Less: Gross accounting expense on credit sponsorship loans 20,034 15,919 10,416 5,521 253 Adjusted noninterest expense 435,952 441,306 445,049 441,635 433,790 Net interest income 511,794 505,882 494,727 485,327 474,934 Less: Contractual, rate-related card processing expense 104,081 102,258 99,297 97,405 95,433 Less: Gross interest income on credit sponsorship loans 45,045 34,014 22,891 12,893 2,946 Adjusted net interest income 362,668 369,610 372,539 375,029 376,555 Noninterest income 328,100 324,485 337,141 340,430 347,230 Adjusted total revenue 690,768 694,095 709,680 715,459 723,785 Adjusted efficiency ratio, LTM 63.11% 63.58% 62.71% 61.73% 59.93%
41Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation NON-GAAP RECONCILIATION 1. Amounts presented are used in the two-class earnings per common share calculation. Adjusted Net Income and Adjusted Earnings Per Share For the year ended ($ in thousands, except share and per share data) 2022 Net income – GAAP a 151,134 Less: Gain on sale of trademarks 50,000 Add: Rebranding expenses 13,148 Add: Separation related expenses 5,109 Add: Income tax effect 8,936 Adjusted net income b 128,327 Less: Allocation of earnings to participating securities1 2,105 Adjusted net income attributable to common shareholders 126,222 Adjusted earnings per common share, diluted $4.32 Average diluted shares 29,232,247 Adjusted Return on Average Assets and Adjusted Return on Average Tangible Equity Average assets c 7,094,028 Return on average assets (a / c) 2.13% Adjusted return on average assets (b / c) 1.81% Average equity d 770,856 Less: Average goodwill and intangible assets 339,179 Average tangible equity e 431,677 Return on average tangible equity (a / e) 35.01% Adjusted return on average tangible equity (b / e) 29.73%
42Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Industry Terms Types of Payment Cards Banking-as-a-Service (BaaS): Providing financial services and solutions to third parties to offer through their distribution channels. Debit Card: A type of payment card typically tied to funds held in a deposit account. Credit Card: A type of payment card typically attached to a line of credit that a user can make purchases against. Prepaid Card: A type of payment card that holds a finite amount of funds and is not directly tied to a bank account or line of credit. Virtual Card: A digital counterpart to a payment card, generated with a unique card number to settle a particular transaction by an authorized user. These are often used for one-time, business-to-business payments. Payment Players Acquiring Bank: An acquiring bank provides merchant accounts that allow a business to accept card payments and works in conjunction with the acquirer processor. In some cases, the acquiring bank and acquirer processor are a single entity. Acquiring Processors: Acquiring processors connect directly with merchants, the network and the acquiring bank, or via a payment gateway, to facilitate payment acceptance at the merchant. They provide the technical capabilities to create the system of record to communicate with authorization and settlement entities. In some cases, the acquiring bank and acquirer processor are a single entity. Issuing Bank: The issuing bank enters a relationship with the cardholder, program manager, and enables cards on a given network. The issuing bank fills three primary roles in payment processing: it is a “network sponsor,” which means it can issue cards on a given payments network; it is a holder of funds (for example, for gift cards, deposit accounts and other non-credit cards); and it is a “settlement point,” managing a consumer’s account and paying out to the merchant’s account after a purchase. Issuing Processor: Connects directly with the networks and issuing bank to provide the system of record, authorize transactions and communicate with settlement entities. Fintech: Fintech refers to the integration of technology into offerings by financial services companies in order to improve use and delivery to consumers. Merchant: A merchant simply refers to any business that accepts card-based payments either via a physical swipe (at the point-of-sale) or virtually online. Program Manager: Businesses that manage various elements of a card program on behalf of the issuing bank. The program manager is responsible for defining the program, operating the program, and managing its profitability. The program manager typically is responsible for establishing relationships with processors, banks, payment networks, and distributors and for establishing account(s) at banks. DEFINITIONS Commercial Lending Terms Asset-Based Lending: Asset-based lending (ABL) refers to business loans that are secured based on assets as collateral, generally accounts receivable, inventory, equipment or other balance sheet assets. Accounts Receivable: Accounts receivable (A/R) financing refers to financing based on the value of a company’s accounts receivable (their invoices for goods or services) to another company. It is a subset of asset-based lending and is also known as factoring. Equipment Financing: Equipment financing refers to a loan used to purchase business equipment. The financing is provided through leases such as $1 Buyout, Fair Market Value (FMV), or through term loans. Leases may appear in Loans & Leases or Rental Equipment. Factoring: Factoring refers to financing based on the purchase of a company’s accounts receivables, their invoices for goods or services. It is a subset of asset-based lending and is also known as accounts receivable financing. Government Guaranteed Lending: A government guaranteed loan is a loan guaranteed by a government agency and financed through a lending financial entity. Government guaranteed loans include SBA loans and USDA loans. SBA Loan: An SBA loan refers to financing that is guaranteed by the Small Business Administration (SBA) and provided by a lending financial institution. SBA loans, such as an SBA 7(a) loan, may be easier for a small business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity. Term Loan: A term loan is a loan for a specific amount that has a specified interest rate and regular payment schedule to be repaid over a set period of time. USDA Loan: A USDA loan refers to financing guaranteed by the U.S. Department of Agriculture (USDA) as part of the Rural Development program and provided by a lending financial institution. USDA business loans, such as the USDA Business & Industry (B & I) loan, may be easier for a business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity.