cash-20240424

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2024

PATHWARD FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


Delaware	0-22140	42-1406262
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

5501 South Broadband Lane, Sioux Falls, South Dakota 57108

(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
Common Stock, $.01 par value	CASH	The NASDAQ Stock Market LLC

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 April 24, 2024, the Registrant issued a press release announcing its results of operations and financial condition as of and for the three and six months ended March 31, 2024. 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 use in connection with the Company's conference call and earnings webcast for the second quarter of fiscal 2024. The Quarterly Investor Update slide presentation is dated April 24, 2024 and the Company does not undertake to update the materials after that date. 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 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.


Exhibit Number						Description of Exhibit
99.1						Press Release of Pathward Financial, Inc., dated April 24, 2024 regarding the results of operations and financial condition.
99.2						Quarterly Investor Update slide presentation for the Second Quarter of Fiscal Year 2024, dated April 24, 2024, prepared for use with the Press Release.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

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: April 24, 2024	By:	/s/ Gregory A. Sigrist
		Gregory A. Sigrist
		Executive Vice President and Chief Financial Officer

PATHWARD FINANCIAL, INC. ANNOUNCES RESULTS FOR 2024 FISCAL SECOND QUARTER

Sioux Falls, S.D., April 24, 2024 - Pathward Financial, Inc. (“Pathward Financial” or the “Company”) (Nasdaq: CASH) reported net income of $65.3 million, or $2.56 per share, for the three months ended March 31, 2024, compared to net income of $54.8 million, or $1.99 per share, for the three months ended March 31, 2023. For the fiscal quarter ended March 31, 2023, the Company recognized adjusted net income of $60.3 million, or $2.18 per share, when adjusting for the adverse financial impacts related to legacy mobile solar transactions and a venture capital investment impairment expense. See non-GAAP reconciliation table below.

CEO Brett Pharr said, “We continue to produce strong results by focusing on risk adjusted returns, enhancing our Banking as a Service offerings, and spending the off-season in tax services improving our data analytics, underwriting and monitoring processes. We delivered significant growth in net income and earnings per share through solid performance across the enterprise. The Pathward team continues to perform by maintaining our culture, focusing on risk and compliance, working closely with our partners, and embodying our purpose of financial inclusion. I am excited to be a part of this company and for what we can create in the future.”

• On February 27, 2024, the Board of Directors (the "Board") of Pathward Financial appointed Neeraj Mehta as a member of the Board.

•On April 3, 2024, Pathward®, N.A. announced it became Certified™ by Great Place to Work® for the second year in a row. Great Place to Work describes itself as the global authority on workplace culture, employee experience, and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation.

Financial Highlights for the 2024 Fiscal Second Quarter

•Total revenue for the second quarter was $247.2 million, an increase of $18.8 million, or 8%, compared to the same quarter in fiscal 2023, driven by an increase in both net interest income and noninterest income.

•Net interest margin ("NIM") increased 11 basis points to 6.23% for the second quarter from 6.12% during the same period last year, primarily driven by increased yields on earning assets and an improved earning asset mix from the continued optimization of the portfolio. When including contractual, rate-related processing expense, NIM would have been 4.65% in the fiscal 2024 second quarter compared to 4.89% during the fiscal 2023 second quarter due to increases in rate-related card processing expenses from a higher rate environment. Servicing fee income on off-balance sheet deposits is not included in this calculation. See non-GAAP reconciliation table below.

•Total gross loans and leases at March 31, 2024 increased $683.8 million to $4.41 billion compared to March 31, 2023 and decreased $16.9 million when compared to December 31, 2023. The increase compared to the prior year quarter was due to growth across all loan portfolios. The primary driver for the sequential decrease was a reduction in the commercial and consumer finance loan portfolios, partially offset by growth in the warehouse finance and seasonal tax services loan portfolios.

•During the 2024 fiscal second quarter, the Company repurchased 764,185 shares of common stock at an average share price of $51.20. An additional 100,990 shares of common stock were repurchased at an average price of $49.47 in April 2024 through April 15, 2024. As of April 15, 2024, there were 7,568,673 shares available for repurchase under the current common stock share repurchase programs.

•The Company is narrowing its fiscal year 2024 GAAP earnings per diluted share guidance to a range of $6.30 to $6.60. See Outlook section below.

For the six months ended March 31, 2024, total tax services product revenue was $72.9 million, an increase of 1% compared to the same period of the prior year. Total tax services product fee income increased marginally compared to the prior year, while total tax services product expense and net interest income on tax services loans decreased.

Provision for credit losses for tax services portfolio decreased $6.5 million for the six months ended March 31, 2024 when compared to the same period of the prior year, due to improvements in data analytics, underwriting and monitoring.

Total tax services product income, net of losses and direct product expenses, increased 24% to $36.9 million from $29.7 million, when comparing the first six months of fiscal 2024 to the same period of the prior fiscal year.

For the 2024 tax season through March 31, 2024, Pathward originated $1.56 billion in refund advance loans compared to $1.46 billion during the 2023 tax season.

Net interest income for the second quarter of fiscal 2024 was $118.3 million, an increase of 17% from the same quarter in fiscal 2023. The increase was mainly attributable to increased yields, higher average interest-earning asset balances and an improved earning asset mix.

The Company’s average interest-earning assets for the second quarter of fiscal 2024 increased by $917.9 million to $7.64 billion compared to the same quarter in fiscal 2023, primarily due to growth in loans and leases and an increase in cash balances, partially offset by a decrease in total investment security balances. The second quarter average outstanding balance of loans and leases increased $889.1 million compared to the same quarter of the prior fiscal year, primarily due to an increase across all loan portfolios.

Fiscal 2024 second quarter NIM increased to 6.23% from 6.12% in the second fiscal quarter of last year. When including contractual, rate-related processing expense, NIM would have been 4.65% in the fiscal 2024 second quarter compared to 4.89% during the fiscal 2023 second quarter. See non-GAAP reconciliation table below. The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased 35 basis points to 6.69% compared to the prior year quarter, driven by an improved earning asset mix. The yield on the loan and lease portfolio was 8.43% compared to 8.47% for the comparable period last year and the TEY on the securities portfolio was 3.20% compared to 2.89% over that same period.

The Company's cost of funds for all deposits and borrowings averaged 0.47% during the fiscal 2024 second quarter, as compared to 0.21% during the prior year quarter. The Company's overall cost of deposits was 0.38% in the fiscal second quarter of 2024, as compared to 0.13% during the prior year quarter. When including contractual, rate-related processing expense, the Company's overall cost of deposits was 2.06% in the fiscal 2024 second quarter, as compared to 1.43% during the prior year quarter. See non-GAAP reconciliation table below.

Fiscal 2024 second quarter noninterest income increased 2% to $128.9 million, compared to $127.0 million for the same period of the prior year. The increase was primarily driven by an increase in refund advance fee income. The period-over-period increase was partially offset by a decrease in card and deposits fees.

The period-over-period decrease in card and deposit fee income was primarily related to servicing fee income on off-balance sheet deposits, which totaled $10.4 million during the 2024 fiscal second quarter, compared to $18.2 million for the same period of the prior year. The decrease in servicing fee income when compared to the prior year period was due to a reduction in off-balance sheet deposits. For the fiscal quarter ended December 31, 2023, servicing fee income on off-balance sheet deposits totaled $5.1 million.

Noninterest expense increased 10% to $140.4 million for the fiscal 2024 second quarter, from $127.1 million for the same quarter last year. The increase was primarily attributable to increases in card processing expense, compensation and benefits expense, impairment expense, legal and consulting expense, and occupancy and equipment expense. The period-over-period increase was partially offset by decreases in operating lease equipment depreciation, other expense, refund transfer product expense, and intangible amortization expense.

The card processing expense increase was due to rate-related agreements with BaaS partners. The amount of expense paid under those agreements is based on an agreed upon rate index that varies depending on the 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 56% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2024 second quarter. For the fiscal quarter ended March 31, 2024, contractual, rate-related processing expenses were $30.1 million, as compared to $26.8 million for the fiscal quarter ended December 31, 2023, and $20.4 million for the fiscal quarter ended March 31, 2023.

The Company recorded income tax expense of $15.2 million, representing an effective tax rate of 18.9%, for the fiscal 2024 second quarter, compared to $9.2 million, representing an effective tax rate of 14.2%, for the second quarter last fiscal year. The current quarter increase in income tax expense compared to the prior year quarter was primarily due to increased earnings and also a decrease in investment tax credits recognized ratably when compared to the prior year quarter.

The Company originated $25.9 million in renewable energy leases during the fiscal 2024 second quarter, resulting in $7.0 million in total net investment tax credits. During the second quarter of fiscal 2023, the Company originated $18.1 million in renewable energy leases resulting in $4.9 million in total net investment tax credits. For the six months ended March 31, 2024, the Company originated $38.1 million in renewable energy leases, compared to $29.5 million for the comparable prior year period. Investment tax credits related to renewable energy leases are recognized ratably based on income throughout each fiscal year.

The following forward-looking statements reflect the Company’s expectations as of the date of this release and are subject to substantial uncertainty. The Company's results may be materially affected by many factors, such as changes in economic conditions and customer demand, changes in interest rates, adverse developments in the financial services industry generally, inflation, competition, and other factors detailed below under “Forward-looking Statements.”

The Company is narrowing its fiscal year 2024 GAAP earnings per diluted share guidance to a range of $6.30 to $6.60. As part of this guidance, the Company is reiterating its expectation that the annual effective tax rate in fiscal year 2024 will be in a range between 16% and 20%.

Investments, Loans and Leases


(Dollars in thousands)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Total investments	$	1,814,140	$	1,886,021	$	1,840,819	$	1,951,996	$	1,864,276

Loans held for sale
Term lending	1,977		2,500		—		3,000		—
Lease financing	—		778		—		—		—
SBA/USDA	7,372		—		—		—		—
Consumer finance	16,597		66,240		77,779		84,351		24,780
Total loans held for sale	25,946		69,518		77,779		87,351		24,780

Term lending	1,489,054		1,452,274		1,308,133		1,253,841		1,235,453
Asset-based lending	429,556		379,681		382,371		373,160		377,965
Factoring	336,442		335,953		358,344		351,133		338,884
Lease financing	168,616		188,889		183,392		201,996		170,645
Insurance premium finance	522,904		671,035		800,077		666,265		437,700
SBA/USDA	560,433		546,048		524,750		422,389		405,612
Other commercial finance	149,056		160,628		166,091		171,954		166,402
Commercial finance	3,656,061		3,734,508		3,723,158		3,440,738		3,132,661


Consumer finance	267,031		301,510		254,416		200,121		148,648


Tax services	84,502		33,435		5,192		47,194		61,553
Warehouse finance	394,814		349,911		376,915		380,458		377,036
Total loans and leases	4,402,408		4,419,364		4,359,681		4,068,511		3,719,898
Net deferred loan origination costs	6,977		6,917		6,435		4,388		5,718
Total gross loans and leases	4,409,385		4,426,281		4,366,116		4,072,899		3,725,616
Allowance for credit losses	(80,777)		(53,785)		(49,705)		(81,916)		(84,304)
Total loans and leases, net	$	4,328,608	$	4,372,496	$	4,316,411	$	3,990,983	$	3,641,312

The Company's investment security balances at March 31, 2024 totaled $1.81 billion, as compared to $1.89 billion at December 31, 2023 and $1.86 billion at March 31, 2023.

Total gross loans and leases totaled $4.41 billion at March 31, 2024, as compared to $4.43 billion at December 31, 2023 and $3.73 billion at March 31, 2023. The primary driver for the sequential decrease was a decrease in commercial finance loans and consumer finance loans. This was partially offset by an increase in warehouse finance loans and seasonal tax service loans. The year-over-year increase was due to growth across all loan portfolios.

Commercial finance loans, which comprised 83% of the Company's loan and lease portfolio, totaled $3.66 billion at March 31, 2024, reflecting a decrease of $78.4 million from December 31, 2023 and an increase of $523.4 million, or 17%, from March 31, 2023. The sequential decrease in commercial finance loans was primarily driven by a $148.1 million decrease in the insurance premium finance portfolio, a $20.3 million decrease in the lease financing portfolio, and a $11.6 million decrease in the other commercial finance portfolio, partially offset by increases in the asset-based lending, term lending, SBA/USDA, and factoring loan portfolios. The increase in commercial finance loans when comparing the current period to the same period of the prior year was primarily driven by increases in the term lending, SBA/USDA, insurance premium finance, and asset-based lending portfolios, partially offset by reductions in the factoring, lease financing, and other commercial finance portfolios.

The Company’s allowance for credit losses ("ACL") totaled $80.8 million at March 31, 2024, an increase compared to $53.8 million at December 31, 2023 and a decrease compared to $84.3 million at March 31, 2023. The increase in the ACL at March 31, 2024, when compared to December 31, 2023, was primarily due to a $31.0 million increase in the allowance related to the seasonal tax services portfolio, partially offset by a $4.3 million decrease in the allowance related to the commercial finance portfolio.

The $3.5 million year-over-year decrease in the ACL was primarily driven by a $3.6 million decrease in the allowance related to the commercial finance portfolio and a $1.5 million decrease in the allowance related to the seasonal tax services portfolio, partially offset by a $1.6 million increase in the allowance related to the consumer finance portfolio.

The following table presents the Company's ACL as a percentage of its total loans and leases.


	As of the Period Ended
(Unaudited)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Commercial finance	1.21	%	1.30	%	1.26	%	1.35	%	1.53	%
Consumer finance	1.71	%	1.45	%	0.92	%	0.92	%	1.99	%
Tax services	37.31	%	1.52	%	0.04	%	70.20	%	53.77	%
Warehouse finance	0.10	%	0.10	%	0.10	%	0.10	%	0.10	%
Total loans and leases	1.83	%	1.22	%	1.14	%	2.01	%	2.27	%
Total loans and leases excluding tax services	1.14	%	1.21	%	1.14	%	1.21	%	1.40	%

The Company's ACL as a percentage of total loans and leases increased to 1.83% at March 31, 2024 from 1.22% at December 31, 2023. The increase in the total loans and leases coverage ratio was primarily driven by seasonality in both the tax services portfolio and consumer finance portfolio.

Activity in the allowance for credit losses for the periods presented was as follows.


(Unaudited)	Three Months Ended						Six Months Ended
(Dollars in thousands)	March 31, 2024		December 31, 2023		March 31, 2023		March 31, 2024		March 31, 2023
Beginning balance	$	53,785	$	49,705	$	52,592	$	49,705	$	45,947
Provision (reversal of) - tax services loans	25,221		1,356		31,422		26,577		33,059
Provision (reversal of) - all other loans and leases	684		8,210		5,264		8,894		13,490
Charge-offs - tax services loans	—		(1,145)		—		(1,145)		(1,731)
Charge-offs - all other loans and leases	(5,492)		(5,725)		(6,625)		(11,218)		(9,334)
Recoveries - tax services loans	5,800		294		1,063		6,094		1,761
Recoveries - all other loans and leases	779		1,090		588		1,870		1,112
Ending balance	$	80,777	$	53,785	$	84,304	$	80,777	$	84,304

The Company recognized a provision for credit losses of $26.1 million for the quarter ended March 31, 2024, compared to $36.8 million for the comparable period in the prior fiscal year. The period-over-period decrease in provision for credit losses was due to improvements in the Company's data analytics, underwriting and monitoring in the Independent Tax space along with a decrease in provision for credit losses in the commercial finance portfolio primarily due to a mix shift in the loan portfolio and a benign credit environment. The Company recognized net recoveries of $1.1 million for the quarter ended March 31, 2024, compared to net charge-offs of $5.0 million for the quarter ended March 31, 2023. Net charge-offs attributable to the commercial finance portfolio for the current quarter were $4.7 million, while recoveries of $5.8 million were recognized in the tax services portfolio. Net charge-offs attributable to the commercial finance and consumer finance portfolios for the same quarter of the prior year were $5.9 million and $0.2 million, respectively, while a recovery of $1.1 million was recognized in the tax services portfolio.

The Company's past due loans and leases were as follows for the periods presented.


As of March 31, 2024	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	$	323	$	546	$	843	$	1,712	$	24,234	$	25,946	$	843	$	—	$	843








Commercial finance	36,482		23,986		15,596		76,064		3,579,997		3,656,061		2,679		27,781		30,460


Consumer finance	4,293		3,001		3,093		10,387		256,644		267,031		3,093		—		3,093
Tax services	1,123		—		—		1,123		83,379		84,502		—		—		—
Warehouse finance	—		—		—		—		394,814		394,814		—		—		—
Total loans and leases held for investment	41,898		26,987		18,689		87,574		4,314,834		4,402,408		5,772		27,781		33,553

Total loans and leases	$	42,221	$	27,533	$	19,532	$	89,286	$	4,339,068	$	4,428,354	$	6,615	$	27,781	$	34,396


As of December 31, 2023	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	$	1,173	$	786	$	661	$	2,620	$	66,898	$	69,518	$	661	$	—	$	661








Commercial finance	33,406		8,341		20,739		62,486		3,672,022		3,734,508		7,862		28,099		35,961


Consumer finance	4,258		3,345		2,859		10,462		291,048		301,510		2,859		—		2,859
Tax services	—		—		—		—		33,435		33,435		—		—		—
Warehouse finance	—		—		—		—		349,911		349,911		—		—		—
Total loans and leases held for investment	37,664		11,686		23,598		72,948		4,346,416		4,419,364		10,721		28,099		38,820

Total loans and leases	$	38,837	$	12,472	$	24,259	$	75,568	$	4,413,314	$	4,488,882	$	11,382	$	28,099	$	39,481

The Company's nonperforming assets at March 31, 2024 were $37.2 million, representing 0.50% of total assets, compared to $42.4 million, or 0.53% of total assets at December 31, 2023 and $30.1 million, or 0.44% of total assets at March 31, 2023.

The decrease in the nonperforming assets as a percentage of total assets at March 31, 2024 compared to December 31, 2023, was primarily driven by a decrease in nonperforming loans in the commercial finance portfolio, partially offset by an increase in nonperforming loans in the consumer finance portfolio. When comparing the current period to the same period of the prior year, the increase in nonperforming assets was primarily due to an increase in nonperforming loans in the commercial finance portfolio.

The Company's nonperforming loans and leases at March 31, 2024, were $34.4 million, representing 0.78% of total gross loans and leases, compared to $39.5 million, or 0.88% of total gross loans and leases at December 31, 2023 and $28.5 million, or 0.76% of total gross loans and leases at March 31, 2023.

The Company has various portfolios of consumer lending 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 their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.


	Asset Classification
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Total
As of March 31, 2024
Commercial finance	$	2,893,892	$	447,110	$	87,657	$	218,108	$	9,294	$	3,656,061
Warehouse finance	394,814		—		—		—		—		394,814
Total loans and leases	$	3,288,706	$	447,110	$	87,657	$	218,108	$	9,294	$	4,050,875


	Asset Classification
(Dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Total
As of December 31, 2023
Commercial finance	$	2,895,451	$	535,057	$	96,172	$	197,682	$	10,146	$	3,734,508
Warehouse finance	349,911		—		—		—		—		349,911
Total loans and leases	$	3,245,362	$	535,057	$	96,172	$	197,682	$	10,146	$	4,084,419

Deposits, Borrowings and Other Liabilities

The average balance of total deposits and interest-bearing liabilities was $7.28 billion for the three-month period ended March 31, 2024, compared to $6.47 billion for the same period in the prior fiscal year, representing an increase of 13%. Total average deposits for the fiscal 2024 second quarter increased by $782.1 million to $7.17 billion compared to the same period in fiscal 2023. The increase in average deposits was due to increases in noninterest bearing deposits, wholesale deposits, and money market deposits, partially offset by decreases in savings and time deposits.

Total end-of-period deposits increased 8% to $6.37 billion at March 31, 2024, compared to $5.90 billion at March 31, 2023. The increase in end-of-period deposits was primarily driven by increases in noninterest-bearing deposits of $329.4 million, wholesale deposits of $96.1 million, and money market deposits of $53.7 million, partially offset by slight decreases in savings and time deposits.

As of March 31, 2024, the Company had $740.8 million in deposits related to government stimulus programs. Of the total amount of government stimulus program deposits, $323.3 million are on activated cards while $417.5 million are on inactivated cards. During the remainder of fiscal year 2024, these deposit balances are expected to decline by approximately $219 million as the Company actively returns unclaimed balances to the U.S. Treasury.

As of March 31, 2024, the Company managed $1.2 billion of customer deposits at other banks in its capacity as custodian. These deposits provide the Company with excess deposits that can earn servicing fee income, typically reflective of the EFFR.

The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at March 31, 2024, 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. The decrease in Tier 1 leverage capital ratio for the period is the result of higher quarterly average assets related to the Company's seasonal tax business. The Bank's Tier 1 leverage capital ratio using end of period assets of 8.77% better reflects the expected capital position of the Company post tax season. See non-GAAP reconciliation 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 Company does not intend to sell these securities, or recognize the unrealized losses on its income statement, to fund future loan growth.

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	March 31, 2024(1)		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Company
Tier 1 leverage capital ratio	7.75	%	7.96	%	8.11	%	8.40	%	7.53	%
Common equity Tier 1 capital ratio	12.30	%	11.43	%	11.25	%	11.52	%	12.05	%
Tier 1 capital ratio	12.56	%	11.69	%	11.50	%	11.79	%	12.35	%
Total capital ratio	14.21	%	13.12	%	12.84	%	13.45	%	14.06	%
Bank
Tier 1 leverage ratio	7.92	%	8.15	%	8.32	%	8.67	%	7.79	%
Common equity Tier 1 capital ratio	12.83	%	11.97	%	11.81	%	12.17	%	12.77	%
Tier 1 capital ratio	12.83	%	11.97	%	11.81	%	12.17	%	12.77	%
Total capital ratio	14.09	%	13.01	%	12.76	%	13.42	%	14.03	%

(1) March 31, 2024 percentages are preliminary pending completion and filing of the Company's regulatory reports. Regulatory capital ratios for periods presented reflect the Company's election of the five-year CECL transition for regulatory capital purposes.

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)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Total stockholders' equity	$	739,462	$	729,282	$	650,625	$	677,721	$	673,244
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities	296,889		297,283		297,679		298,092		298,390
LESS: Certain other intangible assets	19,146		20,093		21,228		22,372		23,553
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards	15,862		20,253		19,679		12,157		13,219
LESS: Net unrealized (losses) on available for sale securities	(205,460)		(187,901)		(254,294)		(207,358)		(186,796)
LESS: Noncontrolling interest	(420)		(510)		(1,005)		(631)		(551)
ADD: Adoption of Accounting Standards Update 2016-13	1,345		1,345		2,017		2,017		2,017
Common Equity Tier 1(1)	614,790		581,409		569,355		555,106		527,446
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	(311)		(410)		(826)		(454)		(404)
Total Tier 1 capital	628,140		594,660		582,190		568,313		540,703
Allowance for credit losses	62,715		53,037		47,960		60,489		55,058
Subordinated debentures, net of issuance costs	19,642		19,617		19,591		19,566		19,540
Total capital	$	710,497	$	667,314	$	649,741	$	648,368	$	615,301

(1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes were fully phased in through the end of calendar year 2021.

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, April 24, 2024. 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 1-833-470-1428 approximately 10 minutes prior to start time and reference access code 082173.

The Quarterly Investor Update slide 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.

Upcoming Investor Events

•Jefferies Global FinTech Conference, June 12, 2024 | New York, NY

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 for all. Through our subsidiary, Pathward®, N.A., we strive to increase financial availability, choice, and opportunity across our Banking as a Service and Commercial Finance business lines. These strategic business lines provide end-to-end support to individuals and businesses. Learn more at www.pathwardfinancial.com.


Investor Relations Contact
Darby Schoenfeld, CPA
SVP, Investor Relations
877-497-7497
investorrelations@pathward.com

Media Relations Contact
mediarelations@pathward.com

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 earnings per diluted share guidance, annual effective tax rate and related performance expectations; progress on key strategic initiatives; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; our goals regarding the addition of recurring revenue and related expected performance impacts; 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. 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; the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in Ukraine and the Middle East, weather-related disasters, or public health events, such as pandemics, and any governmental or societal responses thereto; 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 their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; 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; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry and the insurance premium finance 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; and 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 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. 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, 2023, and in 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.

Condensed Consolidated Statements of Financial Condition (Unaudited)


(Dollars in Thousands, Except Share Data)	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
ASSETS
Cash and cash equivalents	$	347,888	$	671,630	$	375,580	$	515,271	$	432,598




Securities available for sale, at fair value	1,779,458		1,850,581		1,804,228		1,914,271		1,825,563
Securities held to maturity, at amortized cost	34,682		35,440		36,591		37,725		38,713
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost	25,844		23,694		28,210		30,890		29,387
Loans held for sale	25,946		69,518		77,779		87,351		24,780
Loans and leases	4,409,385		4,426,281		4,366,116		4,072,899		3,725,616
Allowance for credit losses	(80,777)		(53,785)		(49,705)		(81,916)		(84,304)
Accrued interest receivable	30,294		27,080		23,282		22,332		22,434
Premises, furniture, and equipment, net	37,266		38,270		39,160		38,601		39,735
Rental equipment, net	215,885		228,916		211,750		224,212		210,844



Goodwill and intangible assets	328,001		329,241		330,225		331,335		332,503
Other assets	283,245		280,571		292,327		265,654		270,387


Total assets	$	7,437,117	$	7,927,437	$	7,535,543	$	7,458,625	$	6,868,256

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES








Deposits	6,368,344		6,936,055		6,589,182		6,306,976		5,902,696
Short-term borrowings	31,000		—		13,000		230,000		43,000
Long-term borrowings	33,373		33,614		33,873		34,178		34,543
Accrued expenses and other liabilities	264,938		228,486		248,863		209,750		214,773


Total liabilities	6,697,655		7,198,155		6,884,918		6,780,904		6,195,012

STOCKHOLDERS’ EQUITY
Preferred stock	—		—		—		—		—
Common stock, $.01 par value	254		260		262		266		271
Common stock, Nonvoting, $.01 par value	—		—		—		—		—
Additional paid-in capital	634,415		629,737		628,500		625,825		623,250
Retained earnings	317,964		293,463		278,655		267,100		245,046
Accumulated other comprehensive loss	(206,570)		(188,433)		(255,443)		(207,896)		(187,829)
Treasury stock, at cost	(6,181)		(5,235)		(344)		(6,943)		(6,943)
Total equity attributable to parent	739,882		729,792		651,630		678,352		673,795
Noncontrolling interest	(420)		(510)		(1,005)		(631)		(551)
Total stockholders’ equity	739,462		729,282		650,625		677,721		673,244
Total liabilities and stockholders’ equity	$	7,437,117	$	7,927,437	$	7,535,543	$	7,458,625	$	6,868,256

Condensed Consolidated Statements of Operations (Unaudited)


	Three Months Ended						Six Months Ended
(Dollars in Thousands, Except Share and Per Share Data)	March 31, 2024		December 31, 2023		March 31, 2023		March 31, 2024		March 31, 2023
Interest and dividend income:
Loans and leases, including fees	$	102,750	$	94,963	$	83,879	$	197,713	$	152,275
Mortgage-backed securities	9,998		10,049		10,326		20,047		20,738
Other investments	14,013		10,886		10,482		24,899		16,734
	126,761		115,898		104,687		242,659		189,747
Interest expense:
Deposits	6,685		3,526		2,096		10,211		2,238
FHLB advances and other borrowings	1,775		2,336		1,186		4,111		2,047
	8,460		5,862		3,282		14,322		4,285

Net interest income	118,301		110,036		101,405		228,337		185,462

Provision for credit loss	26,052		9,890		36,763		35,942		46,539

Net interest income after provision for credit loss	92,249		100,146		64,642		192,395		138,923

Noninterest income:
Refund transfer product fees	28,942		422		30,205		29,364		30,882
Refund advance fee income	43,200		111		37,995		43,311		38,612
Card and deposit fees	35,344		30,750		42,087		66,094		79,805
Rental income	13,720		13,459		12,940		27,179		25,648

Gain on sale of trademarks	—		—		—		—		10,000
Gain (loss) on sale of other	1,695		2,840		(666)		4,535		(164)
Other income	6,044		5,179		4,477		11,223		8,032
Total noninterest income	128,945		52,761		127,038		181,706		192,815

Noninterest expense:
Compensation and benefits	54,073		46,652		47,547		100,725		90,564
Refund transfer product expense	7,366		192		7,863		7,558		7,968
Refund advance expense	1,846		30		1,603		1,876		1,630
Card processing	35,163		34,584		26,924		69,747		49,607
Occupancy and equipment expense	9,293		8,848		8,510		18,141		16,822
Operating lease equipment depreciation	10,424		10,423		14,719		20,847		24,347
Legal and consulting	6,141		4,892		4,921		11,033		14,380
Intangible amortization	1,240		984		1,435		2,224		2,693
Impairment expense	2,013		—		500		2,013		524
Other expense	12,872		12,669		13,114		25,541		23,660
Total noninterest expense	140,431		119,274		127,136		259,705		232,195

Income before income tax expense	80,763		33,633		64,544		114,396		99,543

Income tax expense (benefit)	15,246		5,719		9,176		20,965		15,753

Net income before noncontrolling interest	65,517		27,914		55,368		93,431		83,790
Net income attributable to noncontrolling interest	249		257		597		506		1,177
Net income attributable to parent	$	65,268	$	27,657	$	54,771	$	92,925	$	82,613

Less: Allocation of Earnings to participating securities(1)	524		220		839		744		1,228
Net income attributable to common shareholders(1)	64,744		27,437		53,932		92,181		81,382
Earnings per common share:
Basic	$	2.56	$	1.06	$	1.99	$	3.61	$	2.95
Diluted	$	2.56	$	1.06	$	1.99	$	3.61	$	2.95
Shares used in computing earnings per common share:
Basic	25,281,743		25,776,845		27,078,048		25,529,186		27,555,197
Diluted	25,311,144		25,801,538		27,169,569		25,555,656		27,632,737

(1) Amounts presented are used in the two-class earnings per common share calculation.

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 March 31,	2024						2023
(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	$	616,288	$	7,422	4.84	%	$	564,656	$	5,843	4.20	%
Mortgage-backed securities	1,464,530		9,998		2.75	%	1,549,240		10,326		2.70	%
Tax exempt investment securities	132,733		932		3.57	%	149,912		990		3.39	%
Asset-backed securities	237,421		3,368		5.71	%	141,968		1,273		3.64	%
Other investment securities	281,695		2,291		3.27	%	298,030		2,376		3.23	%
Total investments	2,116,379		16,589		3.20	%	2,139,150		14,965		2.89	%
Commercial finance	3,650,845		74,330		8.19	%	3,056,293		60,765		8.06	%
Consumer finance	351,459		9,144		10.46	%	187,826		6,301		13.60	%
Tax services	493,168		9,014		7.35	%	448,659		10,555		9.54	%
Warehouse finance	407,703		10,262		10.12	%	321,334		6,258		7.90	%
Total loans and leases	4,903,175		102,750		8.43	%	4,014,112		83,879		8.47	%
Total interest-earning assets	$	7,635,842	$	126,761	6.69	%	$	6,717,918	$	104,687	6.34	%
Noninterest-earning assets	600,354						612,020
Total assets	$	8,236,196					$	7,329,938

Interest-bearing liabilities:
Interest-bearing checking	$	266	$	—	0.31	%	$	267	$	—	0.33	%
Savings	59,914		5		0.04	%	70,024		6		0.03	%
Money markets	190,143		598		1.26	%	125,193		71		0.23	%
Time deposits	5,027		4		0.29	%	6,948		2		0.11	%
Wholesale deposits	439,785		6,078		5.56	%	186,421		2,017		4.39	%
Total interest-bearing deposits	695,135		6,685		3.87	%	388,853		2,096		2.19	%
Overnight fed funds purchased	79,484		1,107		5.60	%	46,735		543		4.71	%

Subordinated debentures	19,625		355		7.27	%	19,523		354		7.34	%
Other borrowings	13,901		313		9.07	%	15,283		289		7.68	%
Total borrowings	113,010		1,775		6.32	%	81,541		1,186		5.90	%
Total interest-bearing liabilities	808,145		8,460		4.21	%	470,394		3,282		2.83	%
Noninterest-bearing deposits	6,473,538		—		—	%	5,997,739		—		—	%
Total deposits and interest-bearing liabilities	$	7,281,683	$	8,460	0.47	%	$	6,468,133	$	3,282	0.21	%
Other noninterest-bearing liabilities	223,560						191,360
Total liabilities	7,505,243						6,659,493
Shareholders' equity	730,953						670,445
Total liabilities and shareholders' equity	$	8,236,196					$	7,329,938
Net interest income and net interest rate spread including noninterest-bearing deposits			$	118,301	6.22	%			$	101,405	6.13	%

Net interest margin					6.23	%					6.12	%
Tax-equivalent effect					0.01	%					0.02	%
Net interest margin, tax-equivalent(2)					6.24	%					6.14	%

(1) Tax rate used to arrive at the TEY for the three months ended March 31, 2024 and 2023 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.

Selected Financial Information


As of and For the Three Months Ended	March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023
Equity to total assets	9.94		%	9.20		%	8.63		%	9.09		%	9.80		%
Book value per common share outstanding	$	29.14		$	28.06		$	24.85		$	25.54		$	24.88
Tangible book value per common share outstanding	$	16.21		$	15.39		$	12.24		$	13.05		$	12.59
Common shares outstanding	25,377,986			25,988,230			26,183,583			26,539,272			27,055,727
Nonperforming assets to total assets	0.50		%	0.53		%	0.77		%	0.55		%	0.44		%
Nonperforming loans and leases to total loans and leases	0.78		%	0.88		%	1.26		%	0.93		%	0.76		%
Net interest margin	6.23		%	6.23		%	6.19		%	6.18		%	6.12		%
Net interest margin, tax-equivalent	6.24		%	6.24		%	6.21		%	6.20		%	6.14		%
Return on average assets	3.17		%	1.46		%	1.97		%	2.61		%	2.99		%
Return on average equity	35.72		%	16.87		%	21.12		%	26.26		%	32.68		%
Full-time equivalent employees	1,204			1,218			1,193			1,186			1,164

Non-GAAP Reconciliations


Adjusted Net Income and Adjusted Earnings Per Share	At and For the Three Months Ended		At and For the Six Months Ended
(Dollars in Thousands, Except Share and Per Share Data)	March 31, 2023		March 31, 2023
Net Income - GAAP	$	54,771	$	82,613
Less: Gain on sale of trademarks	—		10,000
Less: Loss on disposal of certain mobile solar generators	(1,993)		(1,993)
Add: Accelerated depreciation on certain mobile solar generators	4,822		4,822
Add: Rebranding expenses	—		3,737
Add: Separation related expenses	—		11
Add: Impairment on Venture Capital investments	500		500
Add: Income tax effect resulting from the above listed items	(1,829)		(253)
Adjusted net income	$	60,257	$	83,423
Less: Adjusted allocation of earnings to participating securities	923		1,241
Adjusted Net income attributable to common shareholders	59,334		82,182
Weighted average diluted common shares outstanding	27,169,569		27,632,737
Adjusted earnings per common share - diluted	$	2.18	$	2.97


Net Interest Margin and Cost of Deposits	At and For the Three Months Ended
(Dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Average interest earning assets	$	7,635,842		$	7,031,922		$	6,717,918
Net interest income	$	118,301		$	110,036		$	101,405
Net interest margin	6.23		%	6.23		%	6.12		%
Quarterly average total deposits	$	7,168,673		$	6,558,190		$	6,386,592
Deposit interest expense	$	6,685		$	3,526		$	2,096
Cost of deposits	0.38		%	0.21		%	0.13		%

Adjusted Net Interest Margin and Adjusted Cost of Deposits
Average interest earning assets	$	7,635,842		$	7,031,922		$	6,717,918
Net interest income	118,301			110,036			101,405
Less: Contractual, rate-related processing expense	30,094			26,793			20,369
Adjusted net interest income	$	88,207		$	83,243		$	81,036
Adjusted net interest margin	4.65		%	4.71		%	4.89		%
Average total deposits	$	7,168,673		$	6,558,190		$	6,386,592
Deposit interest expense	6,685			3,526			2,096
Add: Contractual, rate-related processing expense	30,094			26,793			20,369
Adjusted deposit expense	$	36,779		$	30,319		$	22,465
Adjusted cost of deposits	2.06		%	1.84		%	1.43		%



Pathward, N.A. Period-end Tier 1 Leverage
(Dollars in thousands)	March 31, 2024
Total stockholders' equity	$	765,910
Adjustments:
Less: Goodwill, net of associated deferred tax liabilities	296,888
Less: Certain other intangible assets	19,145
Less: Net deferred tax assets from operating loss and tax credit carry-forwards	15,862
Less: Net unrealized gains (losses) on available for sale securities	(205,460)
Less: Noncontrolling interest	(420)
Add: Adoption of Accounting Standards Update 2016-13	1,345
Common Equity Tier 1	641,240
Tier 1 minority interest not included in common equity Tier 1 capital	—
Total Tier 1 capital	$	641,240

Total Assets (Quarter Average)	$	8,229,652
Add: Available for sale securities amortized cost	266,591
Add: Deferred tax	(66,675)
Add: Adoption of Accounting Standards Updated 2016-13	1,345
Less: Deductions from CET1	331,895
Adjusted total assets	$	8,099,018
Pathward, N.A. Regulatory Tier 1 Leverage	7.92		%

Total Assets (Period End)	$	7,435,034
Add: Available for sale securities amortized cost	273,983
Add: Deferred tax	(68,523)
Add: Adoption of Accounting Standards Updated 2016-13	1,345
Less: Deductions from CET1	331,895
Adjusted total assets	$	7,309,944
Pathward, N.A. Period-end Tier 1 Leverage	8.77		%

QUARTERLY INVESTOR UPDATE SECOND Q UARTER F ISCAL YEAR 2024

FORWARD LOOKING STATEMENTS This investor update and our comments during the investor conference call contain “forward-looking statements” which are made in good faith by Pathward Financial, Inc.TM (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 include, without limitation, the statements on the slide entitled “Narrowing FY 2024 Guidance Range to $6.30 - $6.60 Earnings Per Diluted Share,” and address, among others, the following subjects: future operating results including our earnings per diluted share guidance, annual effective tax rate, and related performance expectations; progress on key strategic initiatives; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; our goals and possible future actions with respect to optimizing the balance sheet and growing earnings; 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. 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; the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in Ukraine and the Middle East, weather- related disasters, or public health events, such as pandemics and any governmental or societal responses thereto; 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 their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; 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. (“Pathward”) 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; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry and the insurance premium finance 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; 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 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, 2023 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. 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. Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation2

Net Income $65.3 million in net income; an increase of 19% compared to Q2 FY 2023 Diluted Earnings Per Share $2.56 in diluted earnings per share; an increase of 29% compared to Q2 FY 2023 Net Interest Margin Net interest margin (“NIM”) of 6.23%; Adjusted NIM1 of 4.65% Return Metrics2 FY 2024 six months ended return on average assets (“ROAA”) of 2.35% compared to 2.39% in prior year period; FY 2024 six months ended return on average tangible equity (“ROATE”) of 51.09% compared to 50.81% in prior year period Q2 FY 2024 HIGHLIGHTS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation3 1 See slide 36 for reconciliation to most directly comparable GAAP measure. 2 ROAA and ROATE are annualized for periods presented.

6 MONTHS ENDED MARCH 31, 2024 TAX SERVICES PRE-TAX INCOME INCREASED 24% IN FIRST SIX MONTHS OF 2024 VS. 2023 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation4 REFUND ADVANCE FEE INCOME GREW 12% REFUND ADVANCE ORIGINATIONS INCREASED ALMOST $100 MILLION DECREASED PROVISION DUE TO IMPROVEMENTS IN DATA ANALYTICS, UNDERWRITING AND MONITORING

FOCUS ON RISK ADJUSTED RETURNS TO OPTIMIZE LOANS AND LEASES • Asset classes built to perform through cycles • Strong foundation of specialized and unique risk mitigation techniques • Added over $650 million in loans and leases when compared to the same quarter last year • Focused on adding assets with highest risk adjusted returns and rebalancing securities portfolio into higher yielding loan verticals 5 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation6 • Believe Pathward’s strong Risk and Compliance capability is an advantage • Continue to build on and invest in our people, risk culture, strong processes and technology to adapt and grow with the demands of the business • Trusted partner for companies in the industry BANKING AS A SERVICE HAS OPPORTUNITY FOR GROWTH

NET INTEREST INCOME DRIVES GROWTH IN EPS ($ IN MILLIONS, EXCEPT PER SHARE DATA) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation7 $118.3 Q2 2023 Q2 2024 $101.4 +17% Net Interest Income $140.4 Q2 2023 Q2 2024 $127.1 +10% Noninterest Expenses $128.9 Q2 2023 Q2 2024 $127.0 +2% Noninterest Income $65.3 Q2 2023 Q2 2024 $54.8 +19% Net Income Attributable to Parent $2.56 Q2 2023 Q2 2024 $1.99 +29% Earnings per Diluted Share

 Average Q2 off balance sheet deposits of $783 million, $1.2 billion at quarter end  Continue to return unclaimed EIP balances to the U.S. Treasury DEPOSIT BASE HIGHER TO SUPPORT ASSET GROWTH $5,902.7 $6,368.3 Q2 2023 Q2 2024 8% DEPOSITS 1 Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation8 1 Does not include off balance sheet deposits

TOTAL LOANS AND LEASES INCREASED FROM Q2 2023  Growth primarily driven by Term Lending, Insurance Premium Finance and SBA/USDA  Nonperforming loans and leases of 0.78% compared to 0.88% at December 31, 2023  Annualized adjusted net charge-off rate of 0.43% for 2Q241 $3,725.6 $4,409.4 Q2 2023 Q2 2024 +18% TOTAL LOANS AND LEASES Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation9 1 See slide 34 for reconciliation to most directly comparable GAAP measure.

STRONG BALANCE SHEET ALLOWS FOR RETURN OF CAPITAL TO SHAREHOLDERS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation10 $1,190 $911 $875 $348 $231 $36 1These off balance sheet deposits can be brought back on balance sheet, as needed, as they are immediately callable. ($ in millions) 764,185 996,773 Q2 2024 Q2 2024 YTD Share RepurchasesLiquidity Sources Off Balance Sheet Deposits1 Cash and Cash Equivalents Unpledged Investment Securities FHLB Borrowing Capacity Fed Discount Window Funds Unsecured Funding and Other Wholesale Funding Options $3,591

Q&A Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation11

RECORD OF STRONG EARNINGS GROWTH AND PROFITABILITY ABOVE BANKING INDUSTRY AVERAGES EXCESS CAPITAL GENERATING BUSINESS ENABLES ONGOING RETURN OF VALUE TO SHAREHOLDERS INVESTMENT HIGHLIGHTS 2 3 4 1 5 EXPERIENCED LEADER IN FAST-GROWING BANKING AS A SERVICE (BAAS) SECTOR, WITH DIVERSIFIED PORTFOLIO OF HIGH- QUALITY FINANCIAL PARTNERS RESILIENT COMMERCIAL FINANCE LOAN PORTFOLIO PRODUCES ATTRACTIVE RETURNS THROUGHOUT ECONOMIC CYCLES HIGHLY ADVANTAGEOUS NATIONAL BANK CHARTER, WITH WELL-DEVELOPED RISK MITIGATION AND COMPLIANCE CAPABILITIES Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation12

RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 2.20% 1.55% 1.45% 1.74% 1.88% 2.33% 2.35% 2019 2020 2021 2022 2023 YTD24 Return on Average Assets2 ROAA inclusive of one-time items Net Interest Margin Return on Average Tangible Equity2 35.42% 22.34% 21.87% 28.66% 30.25% 48.32% 51.09% 2019 2020 2021 2022 2023 YTD24 ROATE inclusive of one-time items Earnings Per Common Share $5.26 $5.99 $2.49 $2.94 $4.38 $4.49 $3.61 $1.20 $2.00 $2.65 $2.51 $2.95 2019 2020 2021 2022 2023 YTD24 EPS inclusive of one-time items 1FY19-FY21 display GAAP earnings; FY22 reflects GAAP and adjusted earnings. FY23-FY24 display GAAP earnings as the net adjustments for the periods are insignificant. See appendix for non-GAAP reconciliations 4.91% 4.09% 3.83% 4.84% 6.04% 6.23% 2019 2020 2021 2022 2023 YTD24 Fiscal YTD Earnings Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation13 2YTD24 is annualized Remaining Fiscal Year Earnings

 Pathward’s track record of profitability, combined with its commitment to maintaining the size of its balance sheet, enables the return of the majority of earnings through repurchases and dividends.  Targeting regulatory capital leverage ratio above 8% and total risk weighted capital ratio above 12%.  Paid dividend every quarter dating back to 1994.  Executed $39.1 million of share repurchases in 2Q24. RETURN OF CAPITAL TO SHAREHOLDERS TRACK RECORD OF STRONG EARNINGS GROWTH AND RIGHT-SIZED BALANCE SHEET ENABLES ONGOING RETURN OF CAPITAL Capital Returned to Shareholders Note: Repurchased common shares include shares withheld to cover income taxes owed by participants related to share-based incentive plans. $590.0M TOTAL SHARE REPURCHASES 2Q19 TO 2Q24 $33.3M TOTAL DIVIDENDS PAID 2Q19 TO 2Q24 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation14

Pathward Financial, Inc, (Nasdaq: CASH) | Quarterly Investor Presentation15 SUMMARY FINANCIAL RESULTS Second Quarter Ended March 31, 2024 INCOME STATEMENT For the quarter ended ($ in thousands, except per share data) 2Q23 1Q24 2Q24 Net interest income $101,405 $110,036 $118,301 Provision for credit losses 36,763 9,890 26,052 Total noninterest income 127,038 52,761 128,945 Total noninterest expense 127,136 119,274 140,431 Net income before taxes $64,544 $33,633 $80,763 Income tax expense (benefit) 9,176 5,719 15,246 Net income before non-controlling interest 55,368 27,914 65,517 Net income attributable to non-controlling interest 597 257 249 Net income attributable to parent $54,771 $27,657 $65,268 Less: Allocation of earnings to participating securities1 839 220 524 Net income attributable to common shareholders1 53,932 27,437 64,744 Earnings per share, diluted $1.99 $1.06 $2.56 Average diluted shares 27,169,569 25,801,538 25,311,144 Revenue of $247.2 million, an 8% increase compared to $228.4 million for the same quarter in fiscal 2023. • Net interest income increased $16.9 million compared to the prior year primarily due to increased yields, higher average interest-earning asset balances and an improved earning asset mix. • Servicing fee income on off-balance sheet deposits was $10.4 million for the quarter, as compared to $5.1 million in 1Q24 and $18.2 million in the second quarter of the prior year. Noninterest expense of $140.4 million, an increase of 10% compared to $127.1 million for the fiscal 2023 second quarter. • The increase in expense was primarily driven by contractual, rate-related processing expenses. • Processing expenses related to structured agreements with BaaS partners were $30.1 million for the quarter, as compared to $26.8 million in 1Q24 and $20.4 million in the second quarter of the prior year. Efficiency ratio of 66.89% compared to 68.81%2 as of March 31, 2023. 1 Amounts presented are used in the two-class earnings per common share calculation. 2 Adjusted efficiency ratio (excluding the gain on sale of trademarks and rebranding expenses) for the twelve months ended March 31, 2023 was 67.65%. See appendix for Non-GAAP financial measures reconciliations

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation16 BALANCE SHEET HIGHLIGHTS Second Quarter Ended March 31, 2024 BALANCE SHEET Period ending ($ in thousands) 2Q23 1Q24 2Q24 Cash and cash equivalents $432,598 $671,630 $347,888 Investments 1,864,276 1,886,021 1,814,140 Loans held for sale 24,780 69,518 25,946 Loans and leases (HFI) 3,725,616 4,426,281 4,409,385 Allowance for credit losses (84,304) (53,785) (80,777) Other assets 905,290 927,772 920,535 Total assets $6,868,256 $7,927,437 $7,437,117 Total deposits 5,902,696 6,936,055 6,368,344 Total borrowings 77,543 33,614 64,373 Other liabilities 214,773 228,486 264,938 Total liabilities $6,195,012 $7,198,155 $6,697,655 Total stockholders’ equity 673,244 729,282 739,462 Total liabilities and stockholders’ equity $6,868,256 $7,927,437 $7,437,117 Loans (HFI) / Deposits 63% 64% 69% Net Interest Margin 6.12% 6.23% 6.23% Return on Average Assets 2.99% 1.46% 3.17% Return on Average Equity 32.68% 16.87% 35.72%

• Total tax product revenue increased 1% through the six months ended March 31, 2024 compared to the same period of the prior year. • Refund Advance originations of $1.56 billion in the 2024 tax season through March 31, 2024 compared to $1.46 billion in the 2023 tax season. • Decreases in provision from improving data analytics, underwriting and monitoring. 2024 TAX SEASON UPDATE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation17 1 Approximate loss rate calculated by taking provision for loan & lease losses divided by total refund advance originations. It also includes recoveries from prior tax season. TAX SERVICES ECONOMICS Six Months Ended ($ in millions) March 31, 2023 March 31, 2024 % Change Net interest income (expense) 2.86 0.22 (92)% Refund Advance product income 38.61 43.31 12% Refund Transfer product income 30.88 29.36 (5)% Total revenue 72.35 72.89 1% Total expense 9.60 9.43 (2)% Provision for credit losses 33.06 26.58 (20)% Net income, pre-tax 29.69 36.88 24% Total refund advance originations $ 1,459 $ 1,559 7% Approximate loss rate¹ (6 months) 2.27% 1.70% (25)%

 Pathward’s BaaS business generates fee income and stable deposits.  Ability to attract and maintain these deposits provides a powerful competitive advantage.  Noninterest-bearing deposits as a percentage of total deposits has increased from 54% in 4Q18 to 94% as of 2Q24.  $1.2 billion of off-balance sheet deposits held in custody at program banks as of March 31, 2024, as compared to $2.0 billion as of March 31, 2023. These off-balance sheet deposits earn recordkeeping service fee income, typically reflective of the Effective Fed Funds Rate. Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation18 DEPOSIT BREAKDOWN 94.4% 5.5% 0.1% Noninterest Bearing Deposits Interest Bearing Non-Time Deposits Time Deposits DEPOSITS

 During the 2024 fiscal second quarter, approximately 56% of the deposit balances were subject to variable card processing expenses, derived from contractual agreements with certain BaaS partners 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 March 31, 2024, Pathward also managed $1.2 billion in off-balance sheet deposits and earned $10.4 million of recordkeeping service fee income during the fiscal second quarter. That income is also typically reflective of the Effective Fed Funds Rate.  Averaged 0.47% cost of funds from all deposits and borrowings for 2Q24. COST OF DEPOSITS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation19 COST OF DEPOSITS 2.06% 3.87% 0.38% 5.33% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 All-in Cost of Deposits Cost of Interest Bearing Deposits Cost of Total Deposits Quarterly Average Effective Fed Funds Rate Note: All-in 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.

 Noninterest income represents 44% of fiscal year- to-date total revenue.  Majority of noninterest income fees are generated by the Company’s BaaS business line. Other major items include leasing rental income and other loan & lease fees.  Pathward’s large fee income base provides stability through interest rate and credit cycles, while propelling continued revenue growth.  The majority of Pathward’s tax season revenue is recorded as noninterest income during the second quarter of each fiscal year. DIVERSIFIED NONINTEREST INCOME STREAMS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation20 Refund Transfer Product Fees 16% Refund Advance Product Fees 24% Card and Deposit Fees 36% Rental Income 15% Other Income 9% FYTD 2024 NONINTEREST INCOME BREAKDOWN . Noninterest income 44% Net interest income 56% FYTD 2024 REVENUE BREAKDOWN

 Remain focused on smart growth in the Commercial Finance loan portfolio. Commercial Finance balances grew $523 million, or 17%, from the second quarter of the prior year.  2Q24 balances and yields elevated by seasonal tax loans.  $1.8 billion securities portfolio provides cash flow for future commercial finance loan growth. LOAN PORTFOLIO Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation21 AVERAGE LOANS AND YIELDS ($B) PERIOD END PORTFOLIO COMPOSITION ($B) $3.1 $3.4 $3.7 $3.7 $3.6 $0.1 $0.2 $0.3 $0.3 $0.3 $0.1 $0.0 $0.0 $0.0 $0.1 $0.4 $0.4 $0.4 $0.4 $0.4 2Q23 3Q23 4Q23 1Q24 2Q24 $3.7 $4.1 $4.4 $4.4 $4.4 Warehouse Tax Services Consumer Commercial $4.0 $3.9 $4.3 $4.5 $4.9 8.47% 8.31% 8.33% 8.33% 8.43% 2Q23 3Q23 4Q23 1Q24 2Q24

 Loan and lease financing to provide access to needed equipment  Focus on equipment critical to business operations  Borrowers are investment grade companies  Primarily fixed rate loans and leases  Flexibility to sell direct originations to secondary market EQUIPMENT FINANCE COMMERCIAL FINANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation22 6.82% Q2 2024 Quarterly Yield1 20% Of Loan Portfolio Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Large ticket Lease financing $153.6 $178.6 $160.4 Term lending 501.9 561.7 554.9 Small ticket Lease financing 10.1 5.2 3.8 Term lending 223.1 172.2 155.1 TOTAL $888.7 $917.7 $874.2 ($ in millions) 1Interest income does not include any potential gain(loss) on sale of equipment that was previously on a lease.

• Provides working capital for companies to meet short- term operational requirements • Primarily variable rate loans with majority of floors at or above 6% • Bank typically has dominion of funds • Heavily collateral-managed • Historically excels during economic downturns WORKING CAPITAL FINANCE COMMERCIAL FINANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation23 14.19% Q2 2024 Quarterly Yield 17% Of Loan Portfolio Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Working Capital Asset-based lending $378.0 $379.7 $429.6 Factoring 338.9 336.0 336.4 TOTAL $716.9 $715.7 $766.0 ($ in millions)

• Typically, short-term financing to facilitate the purchase of property, casualty, and liability insurance policies • Insurance premium loans have an average term of 10 months • Fixed rate loans • Usually collateralized by insurance premiums • Very low historical loss rate INSURANCE PREMIUM FINANCE COMMERCIAL FINANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation24 7.54% Q2 2024 Quarterly Yield 12% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Insurance Premium Finance Insurance premium finance $437.7 $671.0 $522.9 TOTAL $437.7 $671.0 $522.9

• Funding small and midsized 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 COMMERCIAL FINANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation25 6.11% Q2 2024 Quarterly Yield 30% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Guaranteed portion of US govt SBA/USDA loans SBA/USDA $248.3 $356.0 $357.3 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 157.3 190.1 203.1 Renewable energy debt financing¹ (term lending only) Term lending 237.5 412.3 484.4 Other Term lending 273.0 306.0 294.7 TOTAL $916.1 $1,264.4 $1,339.5 1Total renewable energy debt financing outstanding was $1.01 billion as of 2Q24. The majority of these balances are in the term lending and SBA/USDA balance sheet categories.

• 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 with payments distribution potential • Agreements typically provide for “excess spread” build-up and protection through a priority of payment within a waterfall CONSUMER Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation26 10.46% Q2 2024 Quarterly Yield 7% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Consumer Consumer finance $148.6 $301.5 $267.0 TOTAL $148.6 $301.5 $267.0 Consumer Payments - Principal, Interest, Fees Collection Account Servicing Principal Losses to Pathward Principal Repayment to Pathward Pathward’s Agreed upon interest return Remaining Excess Spread to Pathward-owned escrow reserve Reserve release to partner is conditional (subordinate) based on product performance Waterfall

• Asset-backed warehouse lines of credit used to support strategic initiatives • Lines are primarily secured by consumer receivables, whereby Pathward is in a senior, secured position as the first out participant • Have never had a charge off or loss • Agreements trigger waterfall protection for the “First Out” participant WAREHOUSE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation27 10.12% Q2 2024 Quarterly Yield 9% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q23 1Q24 2Q24 Warehouse Warehouse finance $377.0 $349.9 $394.8 TOTAL $377.0 $349.9 $394.8 Waterfall All Loan/Collateral Cash Flows Admin Fees (0-5%) Junior Tranche $40MM (40%) Equity Tranche $10MM (10%) First-Out Tranche (Pathward Position) $50MM (50%) $100M Facility EXAMPLE

 As of March 31, 2024, $1.9B, or 47% of loans and leases contained floating or variable interest rates. Of these, $1.0B are tied to Fed Funds or Prime, with the remaining tied to either SOFR or the CMT.  As of March 31, 2024, all variable loans with floors were at or above their floors.  Due to the sharp rise in interest rates, asset mix changes and overall market conditions, a continued lag is expected as the lease and loan portfolio reprices. LOAN PORTFOLIO INTEREST RATE SENSITIVITY Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation28 1 Fixed rate loans and leases are shown for contractual periods. 47% 16% 37% Fixed Rate > 1 Year TOTAL LOAN AND LEASE PORTFOLIO PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable NET INTEREST MARGIN AND LOAN YIELDS 3.07% 3.75% 4.35% 4.59% 4.80% 4.76% 5.21% 5.62% 6.12% 6.18% 6.19% 6.23% 6.23% 3.06% 3.75% 4.34% 4.59% 4.79% 4.62% 4.73% 4.68% 4.89% 4.88% 4.87% 4.71% 4.65% 6.74% 6.90% 6.93% 6.96% 7.22% 6.69% 7.12% 7.70% 8.47% 8.31% 8.33% 8.33% 8.43% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 NIM Adjusted NIM Loan Yields 1 Declines in NIM in FY21 associated with elevated cash balances from government stimulus programs. 2 Adjusted NIM includes contractual card processing expenses associated with higher interest rates. See appendix for Non-GAAP financial measures reconciliation. 1 2

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation29 INTEREST RATE RISK MANAGEMENT MARCH 31, 2024 -2,000 0 2,000 4,000 6,000 Month 1-12 Month 13-36 Month 37-60 Month 61-180 V o lu m e ($ M M ) Period Variance Total Assets Total Liabilities Asset/Liability Gap Analysis 1 Fixed rate securities, loans and leases are shown for contractual periods. 5% 33% 11% 51% Fixed Rate > 1 Year Earning Asset Pricing Attributes1 Fixed Rate < 1 Year Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) • Data presented on this page is reflective of the Company’s asset 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% 30% -200 -100 +100 +200 +300 Parallel Shock Alternative Parallel Shock Alternative Ramp 12-Month Interest Rate Sensitivity from Base Net Interest Income Parallel Shock is a statutory required calculation of the impact of an immediate change in 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.

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation30 ASSET QUALITY $6.0 $4.5 $5.2 $4.6 $4.7 0.68% 0.46% 0.49% 0.41% 0.43% 0.46% 0.46% 0.47% 0.50% 0.45% 2Q23 3Q23 4Q23 1Q24 2Q24 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adj. NCOs / Adj. Average Loans - LTM Adjusted Net Charge-Offs (“NCOs”)1 Excludes Tax Services NCOs and Related Seasonal Average Loans ($ in millions) KEY CREDIT METRICS • Annualized adjusted net charge-offs1: – 0.43% of average loans in 2Q24 – 0.45% of average loans over last 12 months • Allowance for credit loss (“ACL”) of $80.8 million as of March 31, 2024. • ACL as a % of total loans and leases was 1.83% for 2Q24, a 44 bps decrease from the prior year. • The decrease in NPAs / NPLs compared to the sequential quarter was primarily driven by a decrease in nonperforming loans in the commercial finance portfolio. 1 See appendix for Non-GAAP financial measures reconciliation.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. $28.5 $38.8 $56.2 $39.6 $34.4 0.76% 0.93% 1.26% 0.88% 0.78% 2Q23 3Q23 4Q23 1Q24 2Q24 Period Ended NPLs NPLs / Total Loans Nonperforming Assets (“NPAs”) ($ in millions) Nonperforming Loans (“NPLs”) ($ in millions) $30.1 $40.8 $58.0 $42.4 $37.2 0.44% 0.55% 0.77% 0.53% 0.50% 2Q23 3Q23 4Q23 1Q24 2Q24 Period Ended NPAs NPAs / Total Assets

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation31 CAPITAL AND SOURCES OF LIQUIDITY Regulatory Capital as of March 31, 2024 At March 31, 2024¹ Pathward Financial, Inc. Pathward, N.A. Tier 1 Leverage 7.75% 7.92% Common Equity Tier 1 12.30% 12.83% Tier 1 Capital 12.56% 12.83% Total Capital 14.21% 14.09% Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $348 Unpledged Investment Securities $36 FHLB Borrowing Capacity $911 Funds Available through Fed Discount Window $231 Unsecured Funding Providers $875 Deposit Balances Held at Other Banks $1,190 Total Liquidity $3,591 1 Regulatory capital reflects the Company's election of the five-year CECL transition for regulatory capital purposes. Amounts are preliminary pending completion and filing of the Company's regulatory reports. . 7.53% 8.40% 8.11% 7.96% 7.75%7.79% 8.67% 8.32% 8.15% 7.92% 2Q23 3Q23 4Q23 1Q24 2Q24 Tier 1 Leverage Ratio 14.06% 13.45% 12.84% 13.12% 14.21%14.03% 13.42% 12.76% 13.01% 14.09% 2Q23 3Q23 4Q23 1Q24 2Q24 Total Capital Ratio Pathward Financial, Inc. Pathward, N.A. Minimum Requirement to be Well-Capitalized under Prompt Corrective Action Provisions

APPENDIX

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation33 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 156,386 Less: Gain on sale of trademarks 50,000 Less: Loss on disposal of certain mobile generators - Add: Accelerated depreciation on certain mobile solar generators - Add: Rebranding Expenses 13,148 Add: Separation related expenses 5,109 Add: Impairment on venture capital investments - Add: Income tax effect 8,936 Adjusted Net Income b 133,579 Less: Allocation of earnings to participating securities1 2,191 Adjusted net income attributable to common shareholders 131,388 Adjusted earnings per common share, diluted $4.49 Average diluted shares 29,232,247 Adjusted Return on Average Assets and Adjusted Return on Average Tangible Equity Average assets c 7,103,874 Return on average assets (a / c) 2.20% Adjusted return on average assets (b / c) 1.88% Average equity d 780,705 Less: Average goodwill and intangible assets 339,179 Average tangible equity e 441,526 Return on average tangible equity (a / e) 35.42% Adjusted return on average tangible equity (b / e) 30.25%

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation34 NON-GAAP RECONCILIATION 1 Tax services NCOs and average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the Company's tax services business line. For the quarter ended ($ in thousands) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Net charge-offs 4,975 4,218 41,280 5,486 (1,087) Less: Tax services net charge-offs (recoveries) (1,064) (266) 36,075 851 (5,800) Adjusted net charge-offs 6,039 4,484 5,205 4,635 4,713 Quarterly average loans and leases 4,014,112 3,919,225 4,288,067 4,535,826 4,903,175 Less: Quarterly average tax services loans 448,659 52,477 44,192 28,050 493,168 Adjusted quarterly average loans and leases 3,565,453 3,866,748 4,243,875 4,507,776 4,410,007 Annualized NCOs/average loans and leases 0.50% 0.43% 3.85% 0.48% -0.09% Adjusted annualized NCOs/adjusted average loans and leases1 0.68% 0.46% 0.49% 0.41% 0.43% Adjusted Annualized NCOs and Adjusted Loans and Leases

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation35 NON-GAAP RECONCILIATION For the last twelve months ended ($ in thousands) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Noninterest expense – GAAP 431,875 449,803 464,975 479,190 492,485 Net interest income 337,373 362,687 387,861 413,840 430,736 Noninterest income 290,265 304,004 316,599 303,583 305,490 Total Revenue: GAAP 627,638 666,691 704,460 717,423 736,226 Efficiency ratio, LTM 68.81% 67.47% 66.00% 66.79% 66.89% For the last twelve months ended ($ in thousands) Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Noninterest expense – GAAP 431,875 449,803 464,975 479,190 492,485 Less: Rebranding expenses 14,063 10,636 3,737 - - Adjusted noninterest expense 417,812 439,167 461,238 479,190 492,485 Net interest income 337,373 362,687 387,861 413,840 430,736 Noninterest income 290,265 304,004 316,599 303,583 305,490 Less: Gain on sale of trademarks 10,000 10,000 10,000 - - Total Adjusted Revenue: 617,638 656,691 694,460 717,423 736,226 Adjusted Efficiency ratio, LTM 67.65% 66.88% 66.42% 66.79% 66.89% Efficiency Ratio Adjusted Efficiency Ratio

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation36 NON-GAAP RECONCILIATION For the Quarter Ended ($ in thousands) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Average interest earning assets 9,768,242 7,316,820 6,438,572 6,183,646 7,082,417 6,082,329 6,073,822 5,934,431 6,717,918 6,326,750 6,724,185 7,031,922 7,635,842 Net interest income 73,850 68,475 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 Net interest margin 3.07% 3.75% 4.35% 4.59% 4.80% 4.76% 5.21% 5.62% 6.12% 6.18% 6.19% 6.23% 6.23% Average total deposits 9,565,560 6,981,439 6,076,868 5,921,384 6,679,422 5,741,072 5,765,048 5,636,658 6,386,592 5,895,242 6,204,934 6,558,189 7,168,673 Deposit interest expense 445 188 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 Cost of deposits 0.02% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.13% 0.01% 0.12% 0.21% 0.38% Net Interest Margin and Cost of Deposits Adjusted Net Interest Margin and Adjusted Cost of Deposits For the Quarter Ended ($ in thousands) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Average interest earning assets 9,768,242 7,316,820 6,438,572 6,183,646 7,082,417 6,082,329 6,073,822 5,934,431 6,717,918 6,326,750 6,724,185 7,031,922 7,635,842 Net interest income 73,850 68,475 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 Less: Contractual, rate-related processing expense 59 46 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 Adjusted net interest income 73,791 68,429 70,462 71,485 83,583 69,993 72,388 70,072 81,036 76,937 82,461 83,243 88,207 Adjusted net interest margin 3.06% 3.75% 4.34% 4.59% 4.79% 4.62% 4.73% 4.68% 4.89% 4.88% 4.87% 4.71% 4.65% Average total deposits 9,565,560 6,981,439 6,076,868 5,921,384 6,679,422 5,741,072 5,765,048 5,636,658 6,386,592 5,895,242 6,204,934 6,558,189 7,168,673 Deposit interest expense 445 188 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 Add: Contractual, rate-related processing expense 59 46 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 Adjusted deposit expense 504 234 369 269 382 2,252 7,471 14,127 22,465 20,692 24,427 30,319 36,779 Adjusted cost of deposits 0.02% 0.01% 0.02% 0.02% 0.02% 0.16% 0.52% 1.00% 1.43% 1.41% 1.56% 1.84% 2.06%

Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation37 COMMERCIAL FINANCE CONCENTRATIONS BY INDUSTRY1 1 Distribution by NAICS codes; excludes certain joint ventures; calculated based on aggregate principal amount of commercial finance loans and leases; includes operating lease rental equipment of $215.9M MANUFACTURING 38% Asset-Based lending 37% Term lending 9% Factoring 8% Rental equipment, net 8% Other TRANSPORTATION & WAREHOUSING 51% Term lending 31% Factoring 9% Other 5% Rental equipment, net 4% Insurance premium finance UTILITIES 51% SBA/USDA 41% Term lending 8% Rental equipment, net $675 $653 $618 $423 $250 $230 $185 $143 $111 $109 $88 $79 $67 $61 $54 $53 $48 $13 $7 $5 $2 Manufacturing Finance and Insurance Utilities Transportation and Warehousing Mining, Quarrying, and Oil and Gas Extraction Wholesale Trade Other Services (except Public Administration) Health Care and Social Assistance Construction Administrative and Support and Waste Management and Remediation Services Public Administration Professional, Scientific, and Technical Services Real Estate and Rental and Leasing Retail Trade Accommodation and Food Services Nonclassifiable Establishments Information Arts, Entertainment, and Recreation Agriculture, Forestry, Fishing and Hunting Educational Services Management of Companies and Enterprises $ in millions