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The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2025 included in Pathward Financial, Inc.’s ("Pathward Financial" or the “Company") Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on November 25, 2025. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and nine months ended June 30, 2026 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2026.

Certain prior fiscal year amounts have been reclassified to conform to the current year financial statement presentation. These reclassifications did not impact previously reported net income, comprehensive income or the statement of financial condition.

Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2025 remain substantially unchanged.

The following ASU became effective for the Company on October 1, 2025.

ASU 2023-09, Income Taxes (ASC 740): Improvements to Income Tax Disclosures. This ASU requires enhanced annual income tax disclosures primarily related to the rate reconciliation and income taxes paid information to provide further transparency surrounding the Company’s income tax position. The amendments in this ASU are limited to disclosure only. The Company intends to incorporate these updates to its income tax disclosures in its financial statements as of and for the fiscal year ended September 30, 2026.

The following ASUs have been issued and are considered applicable to the Company, but have not yet been adopted.

ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. This ASU requires public entities to provide enhanced disaggregation of certain expense categories presented in the income statement to improve transparency and consistency in financial reporting. The new guidance aims to provide investors with more detailed information regarding the nature of a company’s expenses. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2027, and interim periods within that fiscal year. The amendments are to be applied retrospectively to all prior periods presented. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

ASU 2025-05, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU clarifies the measurement of expected credit losses for accounts receivable and contract assets arising from revenue transactions, aligning the application of Topic 326 with the revenue recognition guidance in Topic 606. The amendments are intended to reduce diversity in practice and improve the consistency of credit loss estimates across similar financial assets. The amendments will be effective for the Company beginning on October 1, 2026, and will apply to interim periods within the fiscal year ending September 30, 2027. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

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ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This ASU modernizes the accounting for internally used software by streamlining when costs may be capitalized and by enhancing disclosure and presentation requirements. The amendments will be effective for the Company beginning on October 1, 2028, and will apply to interim periods within the fiscal year ending September 30, 2029. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). This ASU refines the scope of derivative accounting and clarifies the treatment of certain share-based noncash consideration received from customers. The amendments are intended to enhance clarity and consistency in applying derivative and revenue recognition guidance. The amendments will be effective for the Company beginning on October 1, 2027 and will apply to interim periods within the fiscal year ending September 30, 2028. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This ASU changes the accounting for certain acquired loans by requiring entities to apply a “gross-up” approach at acquisition for purchased seasoned loans, recognizing an allowance for expected credit losses as part of the acquisition accounting rather than through a post-acquisition provision. The amendments are to be applied prospectively to loans acquired on or after the initial application date. The ASU will be effective for the Company on October 1, 2027. Early adoption is permitted but not expected to be exercised by the Company at this time. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements. This ASU clarifies when Topic 270 applies and enhances usability by (among other changes) specifying the form/content of interim financial statements, providing a comprehensive list of required interim disclosures, and introducing a disclosure principle for material events since the last annual period—without intending to significantly expand or reduce interim disclosure requirements. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2029, and interim periods within that fiscal year. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

ASU 2025-12, Codification Improvements. This ASU is part of the Financial Accounting Standards Board's standing "evergreen" project and makes a broad set of technical corrections, clarifications, and other minor improvements across many Topics to make the Codification easier to understand and apply. The amendments will be effective for the Company beginning with the fiscal year ending September 30, 2028, and interim periods within that fiscal year. The Company is currently evaluating the impact of such amendments to the consolidated financial statements and related disclosures.

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The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available for sale ("AFS") and held to maturity ("HTM") are presented below.

(Dollars in thousands)			Amortized Cost			Gross Unrealized Gains			Gross Unrealized (Losses)			Fair Value
Debt Securities AFS
June 30, 2026
Corporate securities			$	25,000		$	—		$	(1,875)		$	23,125
SBA securities			11,081			—			(1,181)			9,900
Obligations of states and political subdivisions			123			1			—			124
Non-bank qualified obligations of states and political subdivisions			197,620			7			(25,841)			171,786
Asset-backed securities			109,525			14			(1,424)			108,115
Mortgage-backed securities			1,060,299			60			(153,793)			906,566
Total debt securities AFS			$	1,403,648		$	82		$	(184,114)		$	1,219,616
September 30, 2025
Corporate securities			$	25,000		$	—		$	(3,750)		$	21,250
SBA securities			11,791			—			(1,022)			10,769
Obligations of states and political subdivisions			162			—			—			162
Non-bank qualified obligations of states and political subdivisions			213,072			25			(26,057)			187,040
Asset-backed securities			138,698			21			(2,347)			136,372
Mortgage-backed securities			1,129,406			57			(157,213)			972,250
Total debt securities AFS			$	1,518,129		$	103		$	(190,389)		$	1,327,843
Debt Securities HTM
June 30, 2026
Non-bank qualified obligations of states and political subdivisions			$	25,564		$	—		$	(3,632)		$	21,932
Mortgage-backed securities			1,537			—			(196)			1,341
Total debt securities HTM			$	27,101		$	—		$	(3,828)		$	23,273
September 30, 2025
Non-bank qualified obligations of states and political subdivisions			$	27,373		$	—		$	(3,430)		$	23,943
Mortgage-backed securities			1,935			—			(225)			1,710
Total debt securities HTM			$	29,308		$	—		$	(3,655)		$	25,653

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Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:

			LESS THAN 12 MONTHS									OVER 12 MONTHS									TOTAL
(Dollars in thousands)			Fair Value			Gross Unrealized (Losses)						Fair Value			Gross Unrealized (Losses)						Fair Value			Gross Unrealized (Losses)
Debt Securities AFS
June 30, 2026
Corporate securities			$	—		$	—					$	23,125		$	(1,875)					$	23,125		$	(1,875)
SBA securities			—			—						9,900			(1,181)						9,900			(1,181)
Non-bank qualified obligations of states and political subdivisions			—			—						170,274			(25,841)						170,274			(25,841)
Asset-backed securities			42,420			(1,038)						61,336			(386)						103,756			(1,424)
Mortgage-backed securities			2,627			(6)						895,404			(153,787)						898,031			(153,793)
Total debt securities AFS			$	45,047		$	(1,044)					$	1,160,039		$	(183,070)					$	1,205,086		$	(184,114)
September 30, 2025
Corporate securities			$	—		$	—					$	21,250		$	(3,750)					$	21,250		$	(3,750)
SBA securities			—			—						10,769			(1,022)						10,769			(1,022)
Non-bank qualified obligations of states and political subdivisions			—			—						185,089			(26,057)						185,089			(26,057)
Asset-backed securities			64,995			(556)						66,263			(1,791)						131,258			(2,347)
Mortgage-backed securities			1,102			(2)						965,549			(157,211)						966,651			(157,213)
Total debt securities AFS			$	66,097		$	(558)					$	1,248,920		$	(189,831)					$	1,315,017		$	(190,389)
Debt Securities HTM
June 30, 2026
Non-bank qualified obligations of states and political subdivisions			$	—		$	—					$	21,932		$	(3,632)					$	21,932		$	(3,632)
Mortgage-backed securities			—			—						1,342			(196)						1,342			(196)
Total debt securities HTM			$	—		$	—					$	23,274		$	(3,828)					$	23,274		$	(3,828)
September 30, 2025
Non-bank qualified obligations of states and political subdivisions			$	—		$	—					$	23,943		$	(3,430)					$	23,943		$	(3,430)
Mortgage-backed securities			—			—						1,710			(225)						1,710			(225)
Total debt securities HTM			$	—		$	—					$	25,653		$	(3,655)					$	25,653		$	(3,655)

The decrease in the fair value of investment securities balances when comparing June 30, 2026 to September 30, 2025 was primarily driven by principal pay downs during the nine months. At June 30, 2026, there were 146 debt securities AFS in an unrealized loss position. Management assessed each investment security with unrealized losses for credit loss by evaluating qualitative factors, including materiality of loss position as a percentage of book value, credit ratings, outstanding principal and interest payments, and changes in the underlying implicit or explicit guarantee of the security, and determined all unrealized losses on these securities were due to adverse market conditions and/or change in interest rates versus credit loss. As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost. At June 30, 2026, there was no allowance for credit losses ("ACL") for debt securities AFS.

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The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities ("MBS") because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

(Dollars in thousands)			June 30, 2026									September 30, 2025
Debt Securities AFS			Amortized Cost			Fair Value						Amortized Cost			Fair Value
Due in one year or less			$	1,275		$	1,280					$	755		$	760
Due after one year through five years			353			356						1,332			1,352
Due after five years through ten years			27,173			25,303						27,688			23,947
Due after ten years			314,548			286,111						358,948			329,534
			343,349			313,050						388,723			355,593
Mortgage-backed securities			1,060,299			906,566						1,129,406			972,250
Total debt securities AFS			$	1,403,648		$	1,219,616					$	1,518,129		$	1,327,843
Debt Securities HTM
Due after ten years			$	25,564		$	21,932					$	27,373		$	23,943
			25,564			21,932						27,373			23,943
Mortgage-backed securities			1,537			1,341						1,935			1,710
Total debt securities HTM			$	27,101		$	23,273					$	29,308		$	25,653

Federal Reserve Bank ("FRB") Stock. The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank totaled $19.7 million at June 30, 2026 and September 30, 2025. These equity securities are 'restricted' in that they can only be owned by member banks and can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FRB stock is less liquid than other marketable equity securities, and the cost approximates fair value.

Federal Home Loan Bank ("FHLB") Stock. The Company's borrowings from the FHLB are secured by specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.

The investments in the FHLB stock are required investments related to the Company's membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency.

The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $11.2 million and $5.0 million at June 30, 2026 and at September 30, 2025, respectively.

These equity securities are ‘restricted’ in that they can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FHLB stock is less liquid than other marketable equity securities, and the cost approximates fair value.

Equity Securities. The Company held $4.8 million and $3.8 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2026 and September 30, 2025, respectively. The Company recognized zero and $0.1 million in unrealized losses on marketable equity securities during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026.

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Non-marketable equity securities that are measured at fair value using net asset value ("NAV") as a practical expedient totaled $13.5 million and $13.2 million at June 30, 2026 and September 30, 2025, respectively. These securities are held within other assets on the Condensed Consolidated Statements of Financial Condition. The Company recognized $1.7 million and $1.1 million in unrealized gains during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026.

Non-marketable equity securities without readily determinable fair value totaled $14.9 million and $12.0 million at June 30, 2026 and September 30, 2025, respectively, reflecting the Company's ownership interests in other entities through Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of the Bank that was formed in 2017 for the purpose of making minority equity investments and other corporate investments. The Company recognized a $0.4 million gain on Visa shares which were carried at a cost basis of $0 during the nine months ended June 30, 2025. This gain was recognized within the gain on sale of other on the Condensed Consolidated Statements of Operations. There were no additional such securities sold during the nine months ended June 30, 2026.

Equity Securities Impairment. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis. The Company recognized $0.2 million and no impairment for such investments for the nine months ended June 30, 2026 and 2025, respectively.

Loans and leases consist of the following:

(Dollars in thousands)			June 30, 2026						September 30, 2025
Term lending			$	2,666,977					$	2,302,540
Asset-based lending			697,687						593,265
Factoring			220,026						217,501
Lease financing			120,583						149,236
SBA/USDA			567,986						511,488
Other commercial finance			49,510						149,939
Commercial finance			4,322,769						3,923,969
Consumer finance			99,430						93,319
Tax services			34,770						2,532
Warehouse finance			647,611						645,186
Total loans and leases			5,104,580						4,665,006
Net deferred loan origination costs (fees)			3,261						(98)
Total gross loans and leases			5,107,841						4,664,908
Allowance for credit losses			(109,780)						(53,319)
Total loans and leases, net			$	4,998,061					$	4,611,589

During the nine months ended June 30, 2026 and 2025, the Company originated $2.75 billion and $1.93 billion of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $2.91 billion and a $21.7 million gain on sale during the nine months ended June 30, 2026. The Company sold held for sale loans resulting in proceeds of $2.16 billion and a $26.9 million gain on sale during the nine months ended June 30, 2025. Gains and losses from the sale of loans and leases are included in secondary market revenue on the Condensed Consolidated Statements of Operations.

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

			Three Months Ended June 30,												Nine Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Loans Purchased
Loans held for investment:
Commercial finance			$	—					$	1,271					$	—					$	20,811
Warehouse finance			66,380						25,873						119,647						172,984
Total purchases			$	66,380					$	27,144					$	119,647					$	193,795
Loans Sold
Loans held for sale:
Commercial finance			$	144,109					$	100,909					$	272,661					$	349,378
Consumer finance			808,442						505,779						2,639,931						1,811,016
Total sales			$	952,551					$	606,688					$	2,912,592					$	2,160,394

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

(Dollars in thousands)			June 30, 2026						September 30, 2025
Minimum lease payments receivable			$	125,185					$	157,271
Unguaranteed residual assets			6,313						6,785
Unamortized initial direct costs			40						68
Unearned income			(10,915)						(14,820)
Total net investment in direct financing and sales-type leases			$	120,623					$	149,304

The components of total lease income were as follows:

			Three Months Ended June 30,												Nine Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases			$	1,630					$	2,444					$	5,551					$	8,431
Leasing and equipment finance noninterest income
Lease income from operating lease payments			9,281						12,751						31,173						39,130
Other(1)			333						747						3,878						3,193
Total leasing and equipment finance noninterest income			9,614						13,498						35,051						42,323
Total lease income			$	11,244					$	15,942					$	40,602					$	50,754
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.

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Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at June 30, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026			$	12,834
2027			63,024
2028			25,806
2029			14,367
2030			6,483
Thereafter			2,671
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases			125,185
Third-party residual value guarantees			—
Total carrying amount of minimum lease payments for direct financing and sales-type leases			$	125,185

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 2026.

A number of factors that have affected the economic environment over the past few years have continued into 2026, including economic uncertainty, inflation, geopolitical conflict and tensions, and increased interest rates, with the Federal Reserve lowering the target federal funds rate at the end of 2024 and the end of 2025. Since early 2025, global markets and the U.S. economy have also experienced disruption and volatility resulting from tariffs and other policies of the U.S. administration, as well as geopolitical conflicts (including those in Iran and Ukraine). Management continues to evaluate the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses and the impact to our customers and businesses as a result of these factors impacting the economy and will refine its estimate as developments occur and more information becomes available.

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

(Dollars in thousands)			Beginning Balance			Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Three Months Ended June 30, 2026
Allowance for credit losses:
Term lending			$	33,744		$	13,486		$	(6,178)		$	419		$	41,471
Asset-based lending			11,969			7,445			(8,617)			19			10,816
Factoring			4,974			9,392			(1,490)			29			12,905
Lease financing			838			232			—			29			1,099
SBA/USDA			4,235			3,276			(124)			23			7,410
Other commercial finance			36			64			—			—			100
Commercial finance			55,796			33,895			(16,409)			519			73,801
Consumer finance			6,589			(373)			(1,303)			285			5,198
Tax services			35,289			(6,035)			(1,000)			1,879			30,133
Warehouse finance			605			43			—			—			648
Total loans and leases			98,279			27,530			(18,712)			2,683			109,780
Unfunded commitments(1)			1,186			779			—			—			1,965
Total			$	99,465		$	28,309		$	(18,712)		$	2,683		$	111,745
Three Months Ended June 30, 2025
Allowance for credit losses:
Term lending			$	26,219		$	3,514		$	(1,333)		$	976		$	29,376
Asset-based lending			2,030			5,844			(539)			—			7,335
Factoring			4,934			516			(464)			391			5,377
Lease financing			1,243			219			(344)			12			1,130
SBA/USDA			4,021			1,427			(421)			1			5,028
Other commercial finance			384			(195)			—			—			189
Commercial finance			38,831			11,325			(3,101)			1,380			48,435
Consumer finance			29,635			2,613			(6,381)			600			26,467
Tax services			33,781			(4,728)			(554)			1,930			30,429
Warehouse finance			643			21			—			—			664
Total loans and leases			102,890			9,231			(10,036)			3,910			105,995
Unfunded commitments(1)			851			47			—			—			898
Total			$	103,741		$	9,278		$	(10,036)		$	3,910		$	106,893
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

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(Dollars in thousands)			Beginning Balance			Provision (Reversal)			Charge-offs			Recoveries			Ending Balance
Nine Months Ended June 30, 2026
Allowance for credit losses:
Term lending			$	28,345		$	23,712		$	(14,439)		$	3,853		$	41,471
Asset-based lending			7,650			17,834			(14,702)			34			10,816
Factoring			4,319			9,928			(1,490)			148			12,905
Lease financing			1,040			4			(37)			92			1,099
SBA/USDA			4,807			5,144			(2,581)			40			7,410
Other commercial finance			90			10			—			—			100
Commercial finance			46,251			56,632			(33,249)			4,167			73,801
Consumer finance			6,422			2,437			(4,637)			976			5,198
Tax services			—			17,043			(1,000)			14,090			30,133
Warehouse finance			646			2			—			—			648
Total loans and leases			53,319			76,114			(38,886)			19,233			109,780
Unfunded commitments(1)			924			1,041			—			—			1,965
Total			$	54,243		$	77,155		$	(38,886)		$	19,233		$	111,745
Nine Months Ended June 30, 2025
Allowance for credit losses:
Term lending			$	30,394		$	12,187		$	(15,916)		$	2,711		$	29,376
Asset-based lending			1,356			6,690			(711)			—			7,335
Factoring			5,757			(421)			(634)			675			5,377
Lease financing			1,189			1,346			(1,426)			21			1,130
Insurance premium finance			—			91			(93)			2			—
SBA/USDA			3,273			3,033			(1,327)			49			5,028
Other commercial finance			607			(418)			—			—			189
Commercial finance			42,576			22,508			(20,107)			3,458			48,435
Consumer finance			28,669			17,597			(21,362)			1,563			26,467
Tax services			2			22,751			(1,295)			8,971			30,429
Warehouse finance			518			146			—			—			664
Total loans and leases			71,765			63,002			(42,764)			13,992			105,995
Unfunded commitments(1)			695			203			—			—			898
Total			$	72,460		$	63,205		$	(42,764)		$	13,992		$	106,893
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

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

(Dollars in thousands)			June 30, 2026						September 30, 2025
Term lending			$	70,295					$	33,042
Asset-based lending			24,169						24,273
Factoring			17,663						—
Lease financing			3,467						3,985
SBA/USDA			3,860						6,147
Other commercial finance			414						—
Commercial finance(1)			119,868						67,447
Total			$	119,868					$	67,447
(1) For commercial finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets.

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Management has identified certain structured finance credits for alternative energy projects in which a substantial cash collateral account has been established to mitigate credit risk. Due to the nature of the transactions and significant cash collateral positions, these credits are evaluated individually. The balance of these pass rated cash collateral loans totaled $92.4 million and $107.7 million at June 30, 2026 and at September 30, 2025, respectively.

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

Pass - A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.

 

Watch - A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets.

Special Mention - A special mention asset is a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.

 

The adverse classifications are as follows:

 

Substandard - A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful - A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate.

Loss - A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

Loans and leases, or portions thereof, are generally charged off when collection of principal becomes doubtful. Typically, this is associated with a delay or shortfall in payments of 120 days or more for consumer credit products and leases, and 90 days or more for commercial finance loans. Action is taken to charge off electronic return originator ("ERO") loans if such loans have not been collected by the end of June and refund advance loans if such loans have not been collected by the end of the calendar year. The Company individually evaluates loans and leases that do not share similar risk characteristics with other financial assets, which generally means loans and leases identified as modifications or loans and leases on nonaccrual status.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the allowable Allowance for Credit Losses.

The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in its evaluation of the appropriateness of the ACL on these portfolios, and as such, these loans are not included in the asset classification table below. The outstanding balances of consumer finance loans and tax services loans were $99.4 million and $34.8 million at June 30, 2026, respectively, and $93.3 million and $2.5 million at September 30, 2025, respectively.

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

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total
June 30, 2026			2026			2025			2024			2023			2022			Prior
Term lending
Pass			$	824,199		$	383,074		$	186,282		$	138,913		$	66,517		$	62,129		$	—		$	1,661,114
Watch			50,369			241,902			79,598			17,860			4,177			29,773			—			423,679
Special mention			—			89,136			155,932			48,696			792			7,037			—			301,593
Substandard			3,037			150,890			19,062			52,113			11,611			26,910			—			263,623
Doubtful			—			270			1,291			11,969			3,405			33			—			16,968
Total			877,605			865,272			442,165			269,551			86,502			125,882			—			2,666,977
Current period charge-offs			—			—			5,106			1,048			1,639			6,646			—			14,439
Asset-based lending
Pass			—			—			—			—			—			—			327,307			327,307
Watch			—			—			—			—			—			—			329,098			329,098
Special mention			—			—			—			—			—			—			14,801			14,801
Substandard			—			—			—			—			—			—			22,845			22,845
Doubtful			—			—			—			—			—			—			3,636			3,636
Total			—			—			—			—			—			—			697,687			697,687
Current period charge-offs			—			—			—			—			—			—			14,702			14,702
Factoring
Pass			—			—			—			—			—			—			159,440			159,440
Watch			—			—			—			—			—			—			33,997			33,997
Special mention			—			—			—			—			—			—			8,462			8,462
Substandard			—			—			—			—			—			—			18,127			18,127
Total			—			—			—			—			—			—			220,026			220,026
Current period charge-offs			—			—			—			—			—			—			1,490			1,490
Lease financing
Pass			16,676			34,673			13,898			27,993			1,156			2,021			—			96,417
Watch			1,769			3,559			3,749			230			—			72			—			9,379
Special mention			—			—			234			—			115			96			—			445
Substandard			—			3,145			—			4,799			670			5,689			—			14,303
Doubtful			39			—			—			—			—			—			—			39
Total			18,484			41,377			17,881			33,022			1,941			7,878			—			120,583
Current period charge-offs			—			—			—			15			—			22			—			37
SBA/USDA
Pass			112,711			82,731			29,128			70,406			108,798			34,369			—			438,143
Watch			1,878			5,362			31,673			—			19,274			3,552			—			61,739
Special mention			204			639			389			—			—			15,348			—			16,580
Substandard			355			5,525			5,043			11,658			5,054			23,319			—			50,954
Doubtful			—			310			164			—			—			96			—			570
Total			115,148			94,567			66,397			82,064			133,126			76,684			—			567,986
Current period charge-offs			—			224			792			1,565			—			—			—			2,581
Other commercial finance
Pass			1,900			7,760			—			—			—			39,441			—			49,101
Substandard			—			—			—			409			—			—			—			409
Total			1,900			7,760			—			409			—			39,441			—			49,510
Current period charge-offs			—			—			—			—			—			—			—			—
Warehouse finance
Pass			—			—			—			—			—			—			647,611			647,611
Total			—			—			—			—			—			—			647,611			647,611
Current period charge-offs			—			—			—			—			—			—			—			—
Total loans and leases
Pass			955,486			508,238			229,308			237,312			176,471			137,960			1,134,358			3,379,133

---

Watch			54,016			250,823			115,020			18,090			23,451			33,397			363,095			857,892
Special mention			204			89,775			156,555			48,696			907			22,481			23,263			341,881
Substandard			3,392			159,560			24,105			68,979			17,335			55,918			40,972			370,261
Doubtful			39			580			1,455			11,969			3,405			129			3,636			21,213
Total			$	1,013,137		$	1,008,976		$	526,443		$	385,046		$	221,569		$	249,885		$	1,565,324		$	4,970,380
Current period charge-offs			$	—		$	224		$	5,898		$	2,628		$	1,639		$	6,668		$	16,192		$	33,249

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total
September 30, 2025			2025			2024			2023			2022			2021			Prior
Term lending
Pass			$	935,599		$	399,968		$	298,678		$	99,820		$	43,216		$	35,971		$	—		$	1,813,252
Watch			65,674			71,326			68,737			7,222			28,882			13,357			—			255,198
Special mention			56			68,989			3,762			826			11,078			65			—			84,776
Substandard			29,792			24,666			37,845			14,137			16,050			19,995			—			142,485
Doubtful			—			564			774			3,854			1,615			22			—			6,829
Total			1,031,121			565,513			409,796			125,859			100,841			69,410			—			2,302,540
Current period charge-offs			—			7,818			4,492			3,257			991			419			—			16,977
Asset-based lending
Pass			—			—			—			—			—			—			301,128			301,128
Watch			—			—			—			—			—			—			233,541			233,541
Special mention			—			—			—			—			—			—			31,702			31,702
Substandard			—			—			—			—			—			—			24,730			24,730
Doubtful			—			—			—			—			—			—			2,164			2,164
Total			—			—			—			—			—			—			593,265			593,265
Current period charge-offs			—			—			—			—			—			—			5,611			5,611
Factoring
Pass			—			—			—			—			—			—			179,352			179,352
Watch			—			—			—			—			—			—			36,218			36,218
Special mention			—			—			—			—			—			—			394			394
Substandard			—			—			—			—			—			—			1,537			1,537
Total			—			—			—			—			—			—			217,501			217,501
Current period charge-offs			—			—			—			—			—			—			1,479			1,479
Lease financing
Pass			43,710			20,259			36,483			2,270			1,089			4,439			—			108,250
Watch			13,587			5,181			13			635			1,059			—			—			20,475
Special mention			—			941			223			—			181			44			—			1,389
Substandard			7,190			—			5,375			1,377			4,088			905			—			18,935
Doubtful			—			—			150			—			37			—			—			187
Total			64,487			26,381			42,244			4,282			6,454			5,388			—			149,236
Current period charge-offs			—			—			320			—			1,005			101			—			1,426
Insurance premium finance
Current period charge-offs			—			62			31			—			—			—			—			93
SBA/USDA
Pass			79,928			61,063			93,459			136,075			19,674			30,962			—			421,161
Watch			2,651			5,117			136			12,477			691			3,598			—			24,670
Special mention			2,682			350			—			—			326			1,038			—			4,396
Substandard			315			3,176			12,721			7,678			2,235			30,588			—			56,713
Doubtful			221			2,687			1,592			—			—			48			—			4,548
Total			85,797			72,393			107,908			156,230			22,926			66,234			—			511,488
Current period charge-offs			74			882			537			90			55			1,011			—			2,649
Other commercial finance
Pass			8,770			63,200			—			134			12,471			62,495			—			147,070
Watch			—			—			2,418			—			—			—			—			2,418

---

Substandard			—			—			451			—			—			—			—			451
Total			8,770			63,200			2,869			134			12,471			62,495			—			149,939
Current period charge-offs			—			—			—			—			—			—			—			—
Warehouse finance
Pass			—			—			—			—			—			—			645,186			645,186
Total			—			—			—			—			—			—			645,186			645,186
Current period charge-offs			—			—			—			—			—			—			—			—
Total loans and leases
Pass			1,068,007			544,490			428,620			238,299			76,450			133,867			1,125,666			3,615,399
Watch			81,912			81,624			71,304			20,334			30,632			16,955			269,759			572,520
Special mention			2,738			70,280			3,985			826			11,585			1,147			32,096			122,657
Substandard			37,297			27,842			56,392			23,192			22,373			51,488			26,267			244,851
Doubtful			221			3,251			2,516			3,854			1,652			70			2,164			13,728
Total			$	1,190,175		$	727,487		$	562,817		$	286,505		$	142,692		$	203,527		$	1,455,952		$	4,569,155
Current period charge-offs			$	74		$	8,762		$	5,380		$	3,347		$	2,051		$	1,531		$	7,090		$	28,235

Past due loans and leases were as follows:

			Accruing and Nonaccruing Loans and Leases																					Nonperforming Loans and Leases
(Dollars in thousands)			30-59 Days Past Due			60-89 Days Past Due			> 89 Days Past Due			Total Past Due			Current			Total Loans and Leases Receivable						> 89 Days Past Due and Accruing			Nonaccrual Balance			Total
June 30, 2026
Loans held for sale			$	—		$	12,420		$	—		$	12,420		$	84,868		$	97,288					$	—		$	—		$	—
Term lending			54,938			77,319			137,016			269,273			2,397,704			2,666,977						13,628			189,859			203,487
Asset-based lending			—			—			9,064			9,064			688,623			697,687						—			22,771			22,771
Factoring			—			—			—			—			220,026			220,026						—			18,186			18,186
Lease financing			876			2,187			3,517			6,580			114,003			120,583						—			3,945			3,945
SBA/USDA			917			7,740			22,115			30,772			537,214			567,986						2,083			20,195			22,278
Other commercial finance			—			—			—			—			49,510			49,510						—			409			409
Commercial finance			56,731			87,246			171,712			315,689			4,007,080			4,322,769						15,711			255,365			271,076
Consumer finance			1,425			448			3,998			5,871			93,559			99,430						3,998			—			3,998
Tax services			—			34,770			—			34,770			—			34,770						—			—			—
Warehouse finance			—			—			—			—			647,611			647,611						—			—			—
Total loans and leases held for investment			58,156			122,464			175,710			356,330			4,748,250			5,104,580						19,709			255,365			275,074
Total loans and leases			$	58,156		$	134,884		$	175,710		$	368,750		$	4,833,118		$	5,201,868					$	19,709		$	255,365		$	275,074
September 30, 2025
Loans held for sale			$	2,319		$	1,860		$	1,521		$	5,700		$	173,721		$	179,421					$	1,521		$	—		$	1,521
Term lending			29,283			8,869			30,734			68,886			2,233,654			2,302,540						4,420			38,959			43,379
Asset-based lending			—			—			—			—			593,265			593,265						—			24,327			24,327
Factoring			—			—			—			—			217,501			217,501						—			1,291			1,291
Lease financing			2,222			316			5,291			7,829			141,407			149,236						1,067			4,268			5,335
SBA/USDA			—			8,876			17,808			26,684			484,804			511,488						7,413			12,571			19,984
Other commercial finance			—			—			—			—			149,939			149,939						—			—			—
Commercial finance			31,505			18,061			53,833			103,399			3,820,570			3,923,969						12,900			81,416			94,316
Consumer finance			909			778			826			2,513			90,806			93,319						826			—			826
Tax services			—			—			2,477			2,477			55			2,532						2,477			—			2,477
Warehouse finance			—			—			—			—			645,186			645,186						—			—			—
Total loans and leases held for investment			32,414			18,839			57,136			108,389			4,556,617			4,665,006						16,203			81,416			97,619
Total loans and leases			$	34,733		$	20,699		$	58,657		$	114,089		$	4,730,338		$	4,844,427					$	17,724		$	81,416		$	99,140

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Nonaccrual loans and leases by year of origination were as follows:

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total			Nonaccrual with No ACL
June 30, 2026			2026			2025			2024			2023			2022			Prior
Term lending			$	—		$	119,502		$	2,217		$	51,824		$	1,380		$	14,936		$	—		$	189,859		$	17,490
Asset-based lending			—			—			—			—			—			—			22,771			22,771			11,895
Factoring			—			—			—			—			—			—			18,186			18,186			—
Lease financing			—			—			—			—			—			3,945			—			3,945			3,468
SBA/USDA			—			—			7,185			12,867			—			143			—			20,195			1,692
Other commercial finance			—			—			—			409			—			—			—			409			409
Commercial finance			—			119,502			9,402			65,100			1,380			19,024			40,957			255,365			34,954
Total nonaccrual loans and leases			$	—		$	119,502		$	9,402		$	65,100		$	1,380		$	19,024		$	40,957		$	255,365		$	34,954

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total			Nonaccrual with No ACL
September 30, 2025			2025			2024			2023			2022			2021			Prior
Term lending			$	—		$	1,383		$	23,220		$	3,469		$	10,887		$	—		$	—		$	38,959		$	18,072
Asset-based lending			—			—			—			—			—			—			24,327			24,327			2,110
Factoring			—			—			—			—			—			—			1,291			1,291			—
Lease financing			—			—			150			—			3,511			607			—			4,268			3,985
SBA/USDA			221			4,605			7,675			—			22			48			—			12,571			—
Commercial finance			221			5,988			31,045			3,469			14,420			655			25,618			81,416			24,167
Total nonaccrual loans and leases			$	221		$	5,988		$	31,045		$	3,469		$	14,420		$	655		$	25,618		$	81,416		$	24,167

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Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows:

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total
June 30, 2026			2026			2025			2024			2023			2022			Prior
Term lending			$	—		$	—		$	11,187		$	1,553		$	—		$	888		$	—		$	13,628
SBA/USDA			355			979			172			—			328			249			—			2,083
Commercial finance			355			979			11,359			1,553			328			1,137			—			15,711
Consumer finance			3,454			314			177			36			13			4			—			3,998
Total loans and leases held for investment			3,809			1,293			11,536			1,589			341			1,141			—			19,709
Total 90 days or more delinquent and accruing			$	3,809		$	1,293		$	11,536		$	1,589		$	341		$	1,141		$	—		$	19,709

			Amortized Cost Basis
(Dollars in thousands)			Term Loans and Leases by Origination Year																		Revolving Loans and Leases			Total
September 30, 2025			2025			2024			2023			2022			2021			Prior
Loans held for sale			$	521		$	835		$	150		$	15		$	—		$	—		$	—		$	1,521
Term lending			—			2,942			—			—			—			1,478			—			4,420
Lease financing			277			—			—			789			1			—			—			1,067
SBA/USDA			1,139			495			5,683			—			—			96			—			7,413
Commercial finance			1,416			3,437			5,683			789			1			1,574			—			12,900
Consumer finance			241			348			180			44			13			—			—			826
Tax services			2,477			—			—			—			—			—			—			2,477
Total loans and leases held for investment			4,134			3,785			5,863			833			14			1,574			—			16,203
Total 90 days or more delinquent and accruing			$	4,655		$	4,620		$	6,013		$	848		$	14		$	1,574		$	—		$	17,724

Certain loans and leases 90 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) consumer loans exempt under regulatory rules from being classified as nonaccrual until later delinquency, usually 120 days past due.

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

			Three Months Ended June 30,												Nine Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Term lending			$	92,218					$	30,308					$	60,055					$	27,012
Asset-based lending			20,332						6,996						22,779						2,970
Factoring			7,803						1,350						3,541						1,004
Lease financing			3,947						4,514						4,075						3,655
SBA/USDA			19,581						7,005						18,908						4,000
Other commercial finance			413						—						470						—
Commercial finance			144,294						50,173						109,828						38,641
Total loans and leases			$	144,294					$	50,173					$	109,828					$	38,641

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2026 and 2025 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and nine months ended June 30, 2026 were none and $3.0 million, respectively, in the commercial finance loan portfolio. The types of modifications granted were term extensions. Modifications made to borrowers experiencing financial difficulty during the three and nine months ended June 30, 2025 were none and $9.1 million, respectively, in the commercial finance loan portfolio.

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During the nine months ended June 30, 2026, the Company had $3.0 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of June 30, 2026, $0.5 million and $2.5 million of modifications granted during the current nine month period were in the 30-59 days past due category and the over 89 days past due category, respectively. During the nine months ended June 30, 2025, the Company had $7.2 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of June 30, 2025, no modifications granted during the nine months ended June 30, 2025 were in the 60-89 days past due category.

The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation under the two-class method. Basic EPS is computed using the two-class method by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated using the more dilutive of the two-class method or the treasury stock method. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect upon vesting of performance share units ("PSUs") and restricted stock grants, and after the allocation of earnings to the participating securities. Antidilutive securities are disregarded in earnings per share calculations. Diluted EPS shown below reflects the two-class method, as diluted EPS under the two-class method was more dilutive than under the treasury stock method.

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

			Three Months Ended June 30,												Nine Months Ended June 30,
(Dollars in thousands, except per share data)			2026						2025						2026						2025
Basic income per common share:
Net income attributable to Pathward Financial, Inc.			$	28,969					$	42,147					$	137,045					$	147,069
Dividends and undistributed earnings allocated to participating securities			(29)						(152)						(155)						(553)
Basic net earnings available to common stockholders			28,940						41,995						136,890						146,516
Undistributed earnings allocated to nonvested restricted stockholders			28						148						151						540
Reallocation of undistributed earnings to nonvested restricted stockholders			(27)						(147)						(150)						(537)
Diluted net earnings available to common stockholders			$	28,941					$	41,996					$	136,891					$	146,519
Total weighted-average basic common shares outstanding			21,065,733						23,006,454						21,665,670						23,629,565
Effect of dilutive securities(1)
PSUs			100,093						133,670						107,922						115,521
Total effect of dilutive securities			100,093						133,670						107,922						115,521
Total weighted-average diluted common shares outstanding			21,165,826						23,140,124						21,773,592						23,745,086
Net earnings per common share:
Basic earnings per common share			$	1.37					$	1.83					$	6.32					$	6.20
Diluted earnings per common share(2)			$	1.37					$	1.81					$	6.29					$	6.17

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

(2) Excluded from the computation of diluted earnings per share for the three months ended June 30, 2026 and 2025, respectively, were 20,794 and 83,151 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. Excluded from the computation of diluted earnings per share for the nine months ended June 30, 2026 and 2025, respectively, were 24,490 and 89,175 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.

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Rental equipment consists of the following:

(Dollars in thousands)			June 30, 2026						September 30, 2025
Computers and IT networking equipment			$	5,062					$	11,723
Motor vehicles and other			132,623						141,101
Other furniture and equipment			22,281						26,040
Solar panels and equipment			116,678						111,447
Total			276,644						290,311
Accumulated depreciation			(124,736)						(131,530)
Unamortized initial direct costs			543						665
Net book value			$	152,451					$	159,446

Future minimum lease payments expected to be received for operating leases at June 30, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026			$	8,554
2027			32,724
2028			20,934
2029			13,558
2030			3,992
Thereafter			2,820
Total			$	82,582

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The Company held a total of $297.9 million of goodwill at June 30, 2026. The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018. There have been no changes to the carrying amount of goodwill during the nine months ended June 30, 2026.

The changes in the carrying amount of the Company’s intangible assets were as follows:

(Dollars in thousands)			Trademark(1)			Customer Relationships(2)			All Others(3)			Total
September 30, 2025			$	5,346		$	4,111		$	3,045		$	12,502
Amortization during the period			(822)			(1,189)			(396)			(2,407)
June 30, 2026			$	4,524		$	2,922		$	2,649		$	10,095
Gross carrying amount			$	13,774		$	70,338		$	7,732		$	91,844
Accumulated amortization			(9,250)			(56,498)			(4,930)			(70,678)
Accumulated impairment			—			(10,918)			(153)			(11,071)
June 30, 2026			$	4,524		$	2,922		$	2,649		$	10,095
September 30, 2024			$	6,422		$	6,566		$	3,601		$	16,589
Amortization during the period			(806)			(1,462)			(425)			(2,693)
Write-offs and disposals during the period			—			(631)			—			(631)
June 30, 2025			$	5,616		$	4,473		$	3,176		$	13,265
Gross carrying amount			$	13,774		$	70,338		$	7,732		$	91,844
Accumulated amortization			(8,158)			(54,947)			(4,403)			(67,508)
Accumulated impairment			—			(10,918)			(153)			(11,071)
June 30, 2025			$	5,616		$	4,473		$	3,176		$	13,265

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.

(2) Book amortization period of 10-30 years. Amortized using the accelerated method.

(3) Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining three months of fiscal 2026 and subsequent fiscal years at June 30, 2026 was as follows:

(Dollars in thousands)
Remaining in 2026			$	696
2027			2,482
2028			2,193
2029			1,577
2030			1,478
Thereafter			1,669
Total anticipated intangible amortization			$	10,095

There were no impairments to intangible assets during the nine months ended June 30, 2026 and 2025. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations.

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Operating lease right-of-use ("ROU") assets, included in other assets, were $21.4 million and $22.7 million at June 30, 2026 and September 30, 2025, respectively. Operating lease liabilities, included in accrued expenses and other liabilities, were $22.7 million and $24.0 million at June 30, 2026 and September 30, 2025, respectively. The decreases in operating lease ROU assets and liabilities relate to normal amortization and lease payments made during the nine months ended June 30, 2026.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026			$	928
2027			3,682
2028			3,653
2029			3,633
2030			3,426
Thereafter			9,879
Total undiscounted future minimum lease payments			25,201
Discount			(2,461)
Total operating lease liabilities			$	22,740

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

			June 30, 2026						September 30, 2025
Weighted-average discount rate			2.33		%				2.65		%
Weighted-average remaining lease term (years)			7.17						7.97

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

			Three Months Ended June 30,												Nine Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Lease expense			$	905					$	987					$	2,707					$	2,904
Short-term and variable lease cost			29						18						86						62
Sublease income			(386)						(350)						(1,197)						(1,053)
Total lease cost for operating leases			$	548					$	655					$	1,596					$	1,913

Repurchase of Common Stock. The Company's Board of Directors authorized a share repurchase program to repurchase up to 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028. During the nine months ended June 30, 2026 and 2025, the Company repurchased 1,810,637 and 1,881,444 shares, respectively, as part of the share repurchase program.

Under the repurchase program, repurchased shares were retired and designated as authorized but unissued shares. The Company accounts for repurchased shares using the par value method under which the repurchase price is credited to paid-in capital up to the par value of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. As of June 30, 2026, 3,127,179 shares of common stock remained available for repurchase.

For the nine months ended June 30, 2026 and 2025, the Company also repurchased 51,068 and 66,446 shares, or $3.5 million and $4.6 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

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Retirement of Treasury Stock. The Company accounts for the retirement of repurchased shares, including treasury stock, using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. The Company retired 70,215 and zero shares of common stock held in treasury during the nine months ended June 30, 2026 and 2025, respectively.

The Pathward Financial, Inc. 2023 Omnibus Incentive Plan permits the granting of various types of awards including but not limited to nonvested (restricted) shares and PSUs to certain officers and directors of the Company. Awards may be granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. In addition, beginning in fiscal year 2025, awards were made to certain employees as time-vesting restricted stock units settleable in shares ("RSUs"). These shares and RSUs generally vest at various times ranging from immediately to three years based on circumstances at time of grant. The grant date fair value is determined based on the fair market value of the Company’s stock on the grant date, determined in accordance with applicable accounting standards. Director shares are issued to the Company’s directors, and these shares have historically vested from immediately to up to one year from the grant date.

The Company also grants selected executives PSU awards. The vesting of these awards is contingent on meeting company-wide performance goals, including earnings per share and total shareholder return. The awards generally vest over a period of three years and have payout levels ranging from a threshold of 50% to a maximum of 200%. Upon vesting, each PSU earned is converted into one share of common stock.

The fair value of the PSUs (other than PSUs subject to a market condition) is determined by the dividend-adjusted fair value on the grant date for those awards subject to a performance condition. For those PSUs subject to a market condition, a simulation valuation is performed.

Finally, awards of shares or RSUs may be made at other times during the fiscal year for new hire, promotion, or retention awards.

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The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, RSUs and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the nine months ended June 30, 2026.

			Number of Shares			Weighted Average Fair Value at Grant
Restricted Stock Awards
Nonvested shares outstanding, September 30, 2025			81,697			$	47.77
Granted			13,200			92.85
Vested			(74,103)			54.74
Forfeited or expired			—			—
Nonvested shares outstanding, June 30, 2026			20,794			$	51.51
RSUs
Nonvested shares outstanding, September 30, 2025			92,620			$	79.19
Granted			129,116			69.72
Vested			(27,903)			79.48
Forfeited or expired			(11,206)			73.42
Nonvested shares outstanding, June 30, 2026			182,627			$	72.81
PSUs
PSUs outstanding, September 30, 2025			142,366			$	52.59
Granted			49,816			65.74
Adjustment for performance achievement(1)			15,901			38.94
Vested			(71,934)			38.94
Forfeited or expired			—			—
PSUs outstanding, June 30, 2026			136,149			$	63.02

(1) The final performance was assessed after September 30, 2025, resulted in an achievement greater than target, and an additional 15,901 shares were allocated to the participants in the plan.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The fair value of nonvested (restricted) shares and PSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends where applicable. The Company has elected to record forfeitures as they occur.

The Company recognized total stock-based compensation expense of $9.3 million and $7.2 million for the nine months ended June 30, 2026 and 2025, respectively. This expense is recorded primarily within compensation and benefits on the Condensed Consolidated Statements of Operations.

As of June 30, 2026, stock-based compensation expense not yet recognized in income totaled $11.9 million, which is expected to be recognized over a weighted average remaining period of 1.64 years.

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The Company recorded an income tax expense of $24.4 million for the nine months ended June 30, 2026, resulting in an effective tax rate of 15.1%, compared to an income tax expense of $27.0 million, or an effective tax rate of 15.4%, for the nine months ended June 30, 2025. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the effect of investment tax credits during fiscal year 2026. The Company's effective tax rate in the future will depend in part on actual investment tax credits generated from qualified renewable energy property.

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

			Nine Months Ended June 30,
(Dollars in thousands)			2026						2025
Provision at statutory rate			$	33,909					$	36,547
Tax-exempt income			(442)						(480)
State income taxes			6,266						6,562
Interim period effective rate adjustment			(6,413)						(9,971)
Tax credit investments, net - federal			(8,586)						(3,913)
Research tax credit			(1,303)						(752)
162(m) disallowance			1,427						1,061
Other, net			(432)						(2,088)
Income tax expense			$	24,426					$	26,966
Effective tax rate			15.1		%				15.4		%

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Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 13. Segment Reporting to the Condensed Consolidated Financial Statements.

(Dollars in thousands)			Consumer									Commercial									Corporate Services/Other									Consolidated Company
Three Months Ended June 30,			2026			2025						2026			2025						2026			2025						2026			2025
Net interest income (expense)(1)			$	61,876		$	67,949					$	52,191		$	51,241					$	(1,154)		$	3,123					$	112,913		$	122,313
Noninterest income:
Refund transfer product fees			11,209			9,846						—			—						—			—						11,209			9,846
Refund advance and other tax fee income(1)			696			307						—			—						—			—						696			307
Card and deposit fees			34,371			37,171						192			165						7			6						34,570			37,342
Rental income(1)			—			—						9,363			12,681						244			232						9,607			12,913
Secondary market revenue(1)			1			41						13,968			7,103						—			—						13,969			7,144
Gain (loss) on sale of other(1)			—			—						(51)			330						—			64						(51)			394
Other income(1)			2,583			2,383						2,742			2,023						1,406			1,090						6,731			5,496
Total noninterest income			48,860			49,748						26,214			22,302						1,657			1,392						76,731			73,442
Revenue			$	110,736		$	117,697					$	78,405		$	73,543					$	503		$	4,515					$	189,644		$	195,755
Nine Months Ended June 30,
Net interest income(1)			$	198,951		$	224,644					$	147,386		$	136,521					$	11,038		$	22,677					$	357,375		$	383,842
Noninterest income:
Refund transfer product fees			46,353			42,919						—			—						—			—						46,353			42,919
Refund advance and other tax fee income(1)			58,341			49,416						—			—						—			—						58,341			49,416
Card and deposit fees			101,650			96,582						561			599						25			20						102,236			97,201
Rental income(1)			—			—						31,451			39,180						723			642						32,174			39,822
(Loss) on sale of securities(1)			—			—						—			—						—			(22,899)						—			(22,899)
Gain on divestitures(1)			—			—						—			—						—			15,044						—			15,044
Secondary market revenue(1)			1			56						21,699			13,515						—			13,329						21,700			26,900
Gain on sale of other(1)			—			—						1,320			1,487						—			520						1,320			2,007
Other income(1)			5,847			8,403						10,434			6,878						3,269			3,653						19,550			18,934
Total noninterest income			212,192			197,376						65,465			61,659						4,017			10,309						281,674			269,344
Revenue			$	411,143		$	422,020					$	212,851		$	198,180					$	15,055		$	32,986					$	639,049		$	653,186
(1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period; therefore, the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities for the nine months ended June 30, 2026.

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Refund Transfer Product Fees. Refund transfer fees are specific to the Partner Solutions business line and reflect product fees offered by the Company through third-party tax preparers and tax preparation software providers where the Company acts as the partnering financial institution. A refund transfer allows a taxpayer to pay tax preparation and filing fees directly from their federal or state government tax refund, with the remainder of the refund being disbursed in accordance with the terms and conditions of the taxpayer agreement, which may include satisfaction of other disbursement obligations before going directly to the taxpayer via check, direct deposit, or prepaid card. Refund transfer fees are recognized by the Company immediately after the taxpayer's refund has been disbursed in accordance with the contract and are based on standalone pricing included within the terms and conditions. Certain expenses to tax preparation software providers are netted with refund transfer fee income as the Company is considered the agent in these contractual relationships. All refund transfer fees are recorded within the Consumer reporting segment.

Card and Deposit Fees. Card fees relate to the Partner Solutions business line and consist of income from prepaid cards and merchant services, including interchange fees from prepaid cards processed through card association networks, merchant services and other card related services. Interchange rates are generally set by card association networks based on transaction volume and other factors. Since interchange fees are generated by cardholder activity, the Company recognizes the income as transactions occur. Fee income for merchant services and other card related services reflect account management and transaction fees charged to merchants for processing card association network transactions. The associated income is recognized as transactions occur or as services are performed. For the Company's internally managed prepaid card programs, fees are based on standalone pricing within the terms and conditions of the cardholder agreement. The Company is considered the principal of these relationships resulting in all fee income being presented on a gross basis within the Condensed Consolidated Statement of Operations. For the Company's sponsorship prepaid card programs where a third-party is considered the Program Manager, the fees are based on standalone pricing within the terms and conditions of the Program Agreement. For these relationships, the Company is considered the agent and certain expenses with the Program Manager, networks and associations are netted with card fee revenue. All card fee income is included in the Consumer reporting segment.

Deposit fees relate to the Partner Solutions and Commercial Finance business lines and consist of income from banking and deposit-related services, including account services, overdraft protection, and wire transfers. Fee income for account services is recognized over the course of the month as the performance obligation is satisfied. Fee income for overdraft protection and wire transfers is recognized at the point in time when such event occurs. For partner solutions, the fees for account services and overdraft protection are based on standalone pricing within the terms and conditions of the Program Agreement with the sponsorship partner. For these relationships, the Company is considered the agent and certain expenses with the partner are netted with deposit fee revenue. For Commercial Finance, fees for wire transfers are based on standalone pricing within the terms and conditions of the customer deposit agreement. Bank and deposit fees for the Partner Solutions and Commercial Finance business lines are included in the Consumer and Commercial reporting segments, respectively. Also included within Card and Deposit Fees for the Consumer reporting segment are monthly servicing fees the Company recognizes for custodial deposits. This fee income is for services the Bank performs to maintain records of cardholder funds placed at one or more third-party banks insured by the Federal Deposit Insurance Corporation ("FDIC"). The servicing fee is typically reflective of the effective federal funds rate ("EFFR").

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker ("CODM") to appropriately allocate entity resources and evaluate performance. The Company has identified the CODM to be the Chief Executive Officer of Pathward Financial, Inc.

Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The Company evaluated the listed operating segments based on their business processes, consumers, and variety of economic characteristics. The Partner Solutions business line is reported in the Consumer segment. The Commercial Finance business line is reported in the Commercial segment. The Corporate Services/Other segment includes certain shared services as well as treasury related functions such as the investment portfolio, warehouse finance, wholesale deposits, and borrowings.

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The CODM reviews the performance and aggregates resources based on various factors but primarily through the evaluation of income (loss) before income tax expense. The significant expenses that have been deemed meaningful to the segments and regularly reported to the CODM are summarized below. These expenses are directly attributable to each of the three business segments. Shared services are an area of focus for the Company and as such, the table below includes the significant selling, general, and administrative ("SG&A") allocations of such shared services.

The following table presents segment data for the Company:

(Dollars in thousands)			Consumer									Commercial									Corporate Services/Other									Total
Three Months Ended June 30,			2026			2025						2026			2025						2026			2025						2026			2025
Interest and dividend income			$	62,531		$	69,620					$	82,793		$	76,738					$	(31,291)		$	(22,766)					$	114,033		$	123,592
Interest expense			655			1,671						30,602			25,497						(30,137)			(25,889)						1,120			1,279
Net interest income (expense)			61,876			67,949						52,191			51,241						(1,154)			3,123						112,913			122,313
Provision for (reversal of) credit loss			(6,407)			(2,114)						34,673			11,371						43			21						28,309			9,278
Net interest income after provision for (reversal of) credit loss			68,283			70,063						17,518			39,870						(1,197)			3,102						84,604			113,035
Noninterest income			48,860			49,748						26,214			22,302						1,657			1,392						76,731			73,442
Noninterest expense
Compensation and benefits			7,075			7,183						10,192			11,090						35,094			30,286						52,361			48,559
Building and software			2,930			2,414						2,428			2,350						7,696			5,869						13,054			10,633
Operating lease equipment depreciation			—			—						7,545			11,569						—			—						7,545			11,569
Rate related card expenses			23,253			25,145						—			—						—			—						23,253			25,145
Other card expenses			7,440			11,042						—			—						(22)			10						7,418			11,052
Tax product expenses			2,848			2,744						—			—						—			—						2,848			2,744
Loan expenses			4			3						6,673			3,788						—			—						6,677			3,791
Legal and consulting			587			657						1,238			993						4,297			9,444						6,122			11,094
SG & A intercompany allocations			18,204			17,830						8,703			7,085						(26,907)			(24,915)						—			—
Consumer lending program expenses			105			4,998						—			—						—			—						105			4,998
Other expenses			3,602			2,776						1,207			2,447						4,929			4,514						9,738			9,737
Total noninterest expense			66,048			74,792						37,986			39,322						25,087			25,208						129,121			139,322
Income (loss) before income tax expense			51,095			45,019						5,746			22,850						(24,627)			(20,714)						32,214			47,155
Total assets			328,692			419,654						4,767,308			4,257,971						2,218,373			2,552,219						7,314,373			7,229,844
Total goodwill			87,145			87,145						210,783			210,783						—			—						297,928			297,928
Total deposits			5,720,403			5,823,684						177			87						229,729			181,475						5,950,309			6,005,246
Nine Months Ended June 30,
Interest and dividend income			$	212,144		$	240,319					$	248,091		$	224,407					$	(94,104)		$	(70,774)					$	366,131		$	393,952
Interest expense			13,193			15,675						100,705			87,886						(105,142)			(93,451)						8,756			10,110
Net interest income			198,951			224,644						147,386			136,521						11,038			22,677						357,375			383,842
Provision for credit loss			19,481			40,349						57,672			22,710						2			146						77,155			63,205
Net interest income after provision for credit loss			179,470			184,295						89,714			113,811						11,036			22,531						280,220			320,637
Noninterest income			212,192			197,376						65,465			61,659						4,017			10,309						281,674			269,344
Noninterest expense
Compensation and benefits			23,748			22,808						32,077			36,640						103,805			90,307						159,630			149,755
Building and software			8,804			7,038						7,171			6,974						21,860			16,634						37,835			30,646
Operating lease equipment depreciation			—			—						26,615			34,775						—			—						26,615			34,775
Rate related card expenses			72,472			79,149						—			—						—			—						72,472			79,149
Other card expenses			22,110			26,570						—			—						1			31						22,111			26,601
Tax product expenses			13,545			12,626						—			—						—			—						13,545			12,626
Loan expenses			1,085			1,127						17,535			10,568						—			—						18,620			11,695
Legal and consulting			1,695			1,789						2,906			2,954						12,406			17,454						17,007			22,197

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SG & A intercompany allocations			55,261			52,517						25,460			22,228						(80,721)			(74,745)						—			—
Consumer lending program expenses			381			14,893						—			—						—			—						381			14,893
Other expenses			12,507			11,290						4,037			6,692						15,030			14,977						31,574			32,959
Total noninterest expense			211,608			229,807						115,801			120,831						72,381			64,658						399,790			415,296
Income (loss) before income tax expense			180,054			151,864						39,378			54,639						(57,328)			(31,818)						162,104			174,685
Total assets			328,692			419,654						4,767,308			4,257,971						2,218,373			2,552,219						7,314,373			7,229,844
Total goodwill			87,145			87,145						210,783			210,783						—			—						297,928			297,928
Total deposits			5,720,403			5,823,684						177			87						229,729			181,475						5,950,309			6,005,246

Expenses included in the Other Expenses line represent expenses to the various operating segments such as marketing, data processing, meals and travel, communications, office supplies, seminars and training, dues and subscriptions, regulatory expense, bank service charges, fraud and program losses, charitable giving, and intangible amortization that are included in income (loss) before income tax expense.

In addition, interest expense includes intercompany interest paid through allocations to appropriately fund each of the operating segments. Management uses funds transfer pricing methodology to allocate the inter-segment interest appropriately, and as such, has determined the allocation to properly represent the interest rate environment at the Company.

ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

Debt Securities AFS and HTM. Debt securities AFS are recorded at fair value on a recurring basis and debt securities HTM are carried at amortized cost.

The fair value of debt securities AFS, categorized primarily as Level 2, is recorded using prices obtained from independent asset pricing services that are based on observable transactions, but not quoted markets. Management reviews the prices obtained from independent asset pricing services for unusual fluctuations and compares to current market trading activity.

Equity Securities. Marketable equity securities and certain non-marketable equity securities are recorded at fair value on a recurring basis. The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

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Derivatives. The Bank's use of derivatives is limited to the Consumer Lending Programs. Under these Programs, the Bank has an agreement with a third party to originate consumer loans that are included in the Bank's held for investment or held for sale portfolios. The third party provides a target return to the Company on the portfolio of loans retained by the Bank and all interest received from borrowers on such loans above the target return and after all charge-offs have been covered is paid to the third party as excess interest and servicing. The primary drivers of the derivative value include the Company's ability to settle the loans at par value and the third party partners' rights of first refusal to purchase loans that the Company intends to sell. The Company estimates the fair value of the derivative instrument using a market approach considering primarily the average interest rate on the underlying loans and the credit spread relative to the risk-free rate in order to validate that the value of the loans is in excess of par and thus the derivative could be settled by either party at no cost. The Company considers this derivative instrument to be within Level 3 of the fair value hierarchy, as it utilizes inputs from sales or securitization transactions involving similar loans. As of June 30, 2026 and September 30, 2025, the Company determined the derivatives had no fair value, respectively, thus eliminating the need for further disclosures regarding Level 3 inputs as outlined in ASC 820.

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

(Dollars in thousands)			Total			Level 1			Level 2			Level 3
June 30, 2026
Debt securities AFS
Corporate securities			$	23,125		$	—		$	23,125		$	—
SBA securities			9,900			—			9,900			—
Obligations of states and political subdivisions			124			—			124			—
Non-bank qualified obligations of states and political subdivisions			171,786			—			171,786			—
Asset-backed securities			108,115			—			108,115			—
Mortgage-backed securities			906,566			—			906,566			—
Total debt securities AFS			$	1,219,616		$	—		$	1,219,616		$	—
Common equities and mutual funds(1)			$	4,808		$	4,808		$	—		$	—
Non-marketable equity securities(2)			$	13,456		$	—		$	—		$	—
September 30, 2025
Debt securities AFS
Corporate securities			$	21,250		$	—		$	21,250		$	—
SBA securities			10,769			—			10,769			—
Obligations of states and political subdivisions			162			—			162			—
Non-bank qualified obligations of states and political subdivisions			187,040			—			187,040			—
Asset-backed securities			136,372			—			136,372			—
Mortgage-backed securities			972,250			—			972,250			—
Total debt securities AFS			$	1,327,843		$	—		$	1,327,843		$	—
Common equities and mutual funds(1)			$	3,787		$	3,787		$	—		$	—
Non-marketable equity securities(2)			$	13,237		$	—		$	—		$	—

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2026 and September 30, 2025.

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

Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is individually evaluated for risk of credit loss and repayment is expected to be solely provided by the values of the underlying collateral, the Company measures fair value on a nonrecurring basis. Fair value is determined by the fair value of the underlying collateral less estimated costs to sell. The fair value of the collateral is determined based on the internal estimates and/or assessment provided by third-party appraisers and the valuation relies on discount rates ranging from 3% to 51%.

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

(Dollars in thousands)			Total			Level 1			Level 2			Level 3
June 30, 2026
Loans and leases, net individually evaluated for credit loss
Commercial finance			$	49,087		$	—		$	—		$	49,087
Total loans and leases, net individually evaluated for credit loss			49,087			—			—			49,087
Total			$	49,087		$	—		$	—		$	49,087
September 30, 2025
Loans and leases, net individually evaluated for credit loss
Commercial finance			$	32,321		$	—		$	—		$	32,321
Total loans and leases, net individually evaluated for credit loss			32,321			—			—			32,321
Total			$	32,321		$	—		$	—		$	32,321

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in thousands)

Fair Value at June 30, 2026

Fair Value at September 30, 2025

Valuation Technique

Unobservable Input

Range of Inputs

Loans and leases, net individually evaluated for credit loss

$

49,087

$

32,321

Market approach

Appraised values(1)

3% - 51%

(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs and other inputs in a range of 3% to 51%.

Management discloses the estimated fair value of financial instruments, including assets and liabilities on and off the Condensed Consolidated Statements of Financial Condition, for which it is practicable to estimate fair value. These fair value estimates were made at June 30, 2026 and September 30, 2025 based on relevant market information and information about financial instruments. Fair value estimates are intended to represent the price at which an asset could be sold or a liability could be settled. However, since there is no active market for certain financial instruments of the Company, the estimates of fair value are subjective in nature, involve uncertainties, and include matters of significant judgment. Changes in assumptions as well as tax considerations could significantly affect the estimated values. Accordingly, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.

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

			June 30, 2026
(Dollars in thousands)			Carrying Amount			Estimated Fair Value			Level 1			Level 2			Level 3
Financial assets
Cash and cash equivalents			$	149,412		$	149,412		$	149,412		$	—		$	—
Debt securities available for sale			1,219,616			1,219,616			—			1,219,616			—
Debt securities held to maturity			27,101			23,273			—			23,273			—
Common equities and mutual funds(1)			4,808			4,808			4,808			—			—
Non-marketable equity securities(1)(2)			23,752			23,752			—			10,296			—
Loans held for sale			97,288			97,288			—			97,288			—
Loans and leases			5,104,580			5,023,814			—			—			5,023,814
Federal Reserve Bank and Federal Home Loan Bank stocks			30,915			30,915			—			30,915			—
Accrued interest receivable			36,966			36,966			36,966			—			—
Financial liabilities
Deposits			5,950,309			5,950,224			5,947,668			2,556			—
Overnight federal funds purchased			167,500			167,500			167,500			—			—
Other short- and long-term borrowings			33,533			34,023			—			34,023			—
Accrued interest payable			712			712			712			—			—

(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2026.

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

			September 30, 2025
(Dollars in thousands)			Carrying Amount			Estimated Fair Value			Level 1			Level 2			Level 3
Financial assets
Cash and cash equivalents			$	120,568		$	120,568		$	120,568		$	—		$	—
Debt securities available for sale			1,327,843			1,327,843			—			1,327,843			—
Debt securities held to maturity			29,308			25,653			—			25,653			—
Common equities and mutual funds(1)			3,787			3,787			3,787			—			—
Non-marketable equity securities(1)(2)			19,937			19,937			—			6,699			—
Loans held for sale			179,421			179,421			—			179,421			—
Loans and leases			4,665,006			4,599,269			—			—			4,599,269
Federal Reserve Bank and Federal Home Loan Bank stocks			24,708			24,708			—			24,708			—
Accrued interest receivable			38,520			38,520			38,520			—			—
Financial liabilities
Deposits			5,886,947			5,886,914			5,884,311			2,604			—
Overnight federal funds purchased			9,000			9,000			9,000			—			—
Other short- and long-term borrowings			33,456			33,667			—			33,667			—
Accrued interest payable			188			188			188			—			—

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

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

Management has evaluated subsequent events that occurred after June 30, 2026. During this period, up to the filing date of this Quarterly Report on Form 10-Q, management did not identify any material subsequent events that would require recognition or disclosure in our Condensed Consolidated Financial Statements as of or for the quarter ended June 30, 2026.

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