cash-20240724
0000907471false00009074712024-07-242024-07-24


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934

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

PATHWARD_LOGO_RGB.jpg

PATHWARD FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware0-2214042-1406262
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valueCASHThe 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 July 24, 2024, the Registrant issued a press release announcing its results of operations and financial condition as of and for the three and nine months ended June 30, 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 third quarter of fiscal 2024. The Quarterly Investor Update slide presentation is dated July 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.

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






SIGNATURE
    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PATHWARD FINANCIAL, INC.
Date: July 24, 2024
By:
/s/ Gregory A. Sigrist
Gregory A. Sigrist
Executive Vice President and Chief Financial Officer


Document

Exhibit 99.1
http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.79933778.0000907471-24-000082pathward_logoxrgb.jpg.ashx
PATHWARD FINANCIAL, INC. ANNOUNCES RESULTS FOR 2024 FISCAL THIRD QUARTER

Sioux Falls, S.D., July 24, 2024 - Pathward Financial, Inc. (“Pathward Financial” or the “Company”) (Nasdaq: CASH) reported net income of $41.8 million, or $1.66 per share, for the three months ended June 30, 2024, compared to net income of $45.1 million, or $1.68 per share, for the three months ended June 30, 2023.
CEO Brett Pharr said, “We are very pleased with our results in the first nine months of fiscal 2024 and continue to execute on what we set out to accomplish this year. Our focus on balance sheet management led by risk adjusted returns and continued evolution of our product offerings have helped us deliver solid financial results. We will continue to build on this foundation next year as we execute on our strategy to be the trusted platform that enables our partners to thrive and allows us to grow with them."
Company Highlights
•On April 30, 2024, Pathward Financial was recognized among Keefe, Bruyette & Woods, Inc. (also known as "KBW") honor roll list of the top banks producing "industry-leading and consistent earnings growth for investors."
•During the quarter, Pathward announced the expansion and transformation of its Solutions for Financial Institutions, which previously only provided prepaid cards to banks and credit unions. With this expansion, Pathward can now also provide Commercial Finance Solutions to their business clients that do not qualify for traditional financing or when a product isn’t offered. Pathward also provides Financial Institutions the ability to offer merchant services to business clients.
Financial Highlights for the 2024 Fiscal Third Quarter
•Total revenue for the third quarter was $176.7 million, an increase of $11.5 million, or 7%, compared to the same quarter in fiscal 2023, driven by an increase in net interest income, partially offset by a reduction in noninterest income.
•Net interest margin ("NIM") increased 38 basis points to 6.56% for the third quarter from 6.18% 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 4.92% in the fiscal 2024 third quarter compared to 4.88% during the fiscal 2023 third quarter. Servicing fee income on off-balance sheet custodial deposits is not included in this calculation. See non-GAAP reconciliation table below.
•Total gross loans and leases at June 30, 2024 increased $539.7 million to $4.61 billion compared to June 30, 2023 and increased $203.2 million when compared to March 31, 2024. The increase compared to the prior year quarter was due to growth across the commercial finance, consumer finance, and warehouse finance loan portfolios, partially offset by a slight reduction in the seasonal tax services portfolio. The primary driver for the sequential increase was growth in the commercial and warehouse finance loan portfolios, partially offset by a reduction in the consumer finance and seasonal tax services loan portfolios.
•During the 2024 fiscal third quarter, the Company repurchased 286,920 shares of common stock at an average share price of $52.24. As of June 30, 2024, there were 7,382,743 shares available for repurchase under the current common stock share repurchase programs.


1

Tax Season
For the nine months ended June 30, 2024, total tax services product revenue was $82.0 million, an increase of 3% compared to the same period of the prior year. The increase in revenue was primarily driven by an increase in refund advance fee income, partially offset by decreases in net interest income and refund transfer product fees. Provision for credit losses for tax services portfolio decreased $9.5 million for the nine months ended June 30, 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 33% to $47.1 million from $35.3 million, when comparing the first nine months of fiscal 2024 to the same period of the prior fiscal year.
Net Interest Income
Net interest income for the third quarter of fiscal 2024 was $110.9 million, an increase of 14% 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 third quarter of fiscal 2024 increased by $475.1 million to $6.80 billion compared to the same quarter in fiscal 2023, due to growth in loans and leases, partially offset by a decrease in total investment security balances and a decrease in cash balances. The third quarter average outstanding balance of loans and leases increased $587.4 million compared to the same quarter of the prior fiscal year, due to an increase across all loan portfolios.
Fiscal 2024 third quarter NIM increased to 6.56% from 6.18% in the third fiscal quarter of last year. When including contractual, rate-related processing expense, NIM would have been 4.92% in the fiscal 2024 third quarter compared to 4.88% during the fiscal 2023 third quarter. See non-GAAP reconciliation table below. The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased 44 basis points to 6.75% compared to the prior year quarter, driven by an improved earning asset mix. The yield on the loan and lease portfolio was 8.56% compared to 8.31% for the comparable period last year and the TEY on the securities portfolio was 3.16% compared to 2.96% over that same period.
The Company's cost of funds for all deposits and borrowings averaged 0.20% during the fiscal 2024 third quarter, as compared to 0.13% during the prior year quarter. The Company's overall cost of deposits was 0.11% in the fiscal third quarter of 2024, as compared to 0.01% during the prior year quarter. When including contractual, rate-related processing expense, the Company's overall cost of deposits was 1.88% in the fiscal 2024 third quarter, as compared to 1.41% during the prior year quarter. See non-GAAP reconciliation table below.
Noninterest Income
Fiscal 2024 third quarter noninterest income decreased 3% to $65.9 million, compared to $67.7 million for the same period of the prior year. The decrease was primarily driven by a decrease in card and deposit fees. The period-over-period decrease was partially offset by an increase in gain on sale of other and tax services product fees.
The period-over-period decrease in card and deposit fee income was primarily related to lower servicing fee income due to a reduction in custodial deposits. Servicing fee totaled $8.6 million during the 2024 fiscal third quarter, compared to $14.6 million for the same period of the prior year. For the fiscal quarter ended March 31, 2024, servicing fee income on custodial deposits totaled $10.4 million.
Noninterest Expense
Noninterest expense increased 8% to $123.7 million for the fiscal 2024 third quarter, from $114.6 million for the same quarter last year. The increase was primarily attributable to increases in card processing expense, other expense and compensation and benefits. The period-over-period increase was partially offset by a decrease in impairment expense.
2

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 57% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2024 third quarter. For the fiscal quarter ended June 30, 2024, contractual, rate-related processing expenses were $27.6 million, as compared to $30.1 million for the fiscal quarter ended March 31, 2024, and $20.5 million for the fiscal quarter ended June 30, 2023.
Income Tax Expense
The Company recorded income tax expense of $5.1 million, representing an effective tax rate of 10.9%, for the fiscal 2024 third quarter, compared to $3.2 million, representing an effective tax rate of 6.6%, for the third quarter last fiscal year. The current quarter increase in income tax expense compared to the prior year quarter was primarily due to a decrease in investment tax credits recognized ratably when compared to the prior year quarter.
The Company originated $4.3 million in renewable energy leases during the fiscal 2024 third quarter, resulting in $1.2 million in total net investment tax credits. During the third quarter of fiscal 2023, the Company originated $21.4 million in renewable energy leases resulting in $5.8 million in total net investment tax credits. For the nine months ended June 30, 2024, the Company originated $42.4 million in renewable energy leases, compared to $50.9 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.
Investments, Loans and Leases
(Dollars in thousands)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Total investments$1,759,486 $1,814,140 $1,886,021 $1,840,819 $1,951,996 
Loans held for sale
Term lending— 1,977 2,500 — 3,000 
Lease financing— — 778 — — 
SBA/USDA7,030 7,372 — — — 
Consumer finance22,350 16,597 66,240 77,779 84,351 
Total loans held for sale29,380 25,946 69,518 77,779 87,351 
Term lending1,533,722 1,489,054 1,452,274 1,308,133 1,253,841 
Asset-based lending473,289 429,556 379,681 382,371 373,160 
Factoring350,740 336,442 335,953 358,344 351,133 
Lease financing155,044 168,616 188,889 183,392 201,996 
Insurance premium finance617,054 522,904 671,035 800,077 666,265 
SBA/USDA563,689 560,433 546,048 524,750 422,389 
Other commercial finance166,653 149,056 160,628 166,091 171,954 
Commercial finance3,860,191 3,656,061 3,734,508 3,723,158 3,440,738 
Consumer finance253,358 267,031 301,510 254,416 200,121 
Tax services43,184 84,502 33,435 5,192 47,194 
Warehouse finance449,962 394,814 349,911 376,915 380,458 
Total loans and leases4,606,695 4,402,408 4,419,364 4,359,681 4,068,511 
Net deferred loan origination costs5,857 6,977 6,917 6,435 4,388 
Total gross loans and leases4,612,552 4,409,385 4,426,281 4,366,116 4,072,899 
Allowance for credit losses(79,836)(80,777)(53,785)(49,705)(81,916)
Total loans and leases, net$4,532,716 $4,328,608 $4,372,496 $4,316,411 $3,990,983 
3

The Company's investment security balances at June 30, 2024 totaled $1.76 billion, as compared to $1.81 billion at March 31, 2024 and $1.95 billion at June 30, 2023.
Total gross loans and leases totaled $4.61 billion at June 30, 2024, as compared to $4.41 billion at March 31, 2024 and $4.07 billion at June 30, 2023. The primary driver for the sequential increase was growth in commercial finance loans and warehouse finance loans. This was partially offset by reductions in consumer finance loans and seasonal tax service loans. The year-over-year increase was due to growth across the commercial finance, consumer finance, and warehouse finance loan portfolios, partially offset by a decrease in the seasonal tax services portfolio.
Commercial finance loans, which comprised 84% of the Company's loan and lease portfolio, totaled $3.86 billion at June 30, 2024, reflecting an increase of $204.1 million from March 31, 2024 and an increase of $419.5 million, or 12%, from June 30, 2023. The sequential increase in commercial finance loans was primarily driven by a $94.2 million increase in the insurance premium finance portfolio, a $44.7 million increase in the term lending portfolio, and a $43.7 million increase in the asset-based lending portfolio, partially offset by a decrease in the lease financing portfolio. 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, and asset-based lending portfolios, partially offset by reductions in the insurance premium finance, lease financing, and other commercial finance portfolios.
Asset Quality
The Company’s allowance for credit losses ("ACL") totaled $79.8 million at June 30, 2024, a decrease compared to $80.8 million at March 31, 2024 and a decrease compared to $81.9 million at June 30, 2023. The decrease in the ACL at June 30, 2024, when compared to March 31, 2024, was primarily due to a $2.9 million decrease in the allowance related to the seasonal tax services portfolio, partially offset by a $1.1 million increase in the allowance related to the consumer finance portfolio and a $0.8 million increase in the allowance related to the commercial finance portfolio.
The $2.1 million year-over-year decrease in the ACL was primarily driven by a $4.5 million decrease in the allowance related to the seasonal tax services portfolio and a $1.5 million decrease in the allowance related to the commercial finance portfolio, partially offset by a $3.8 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)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Commercial finance1.17 %1.21 %1.30 %1.26 %1.35 %
Consumer finance2.23 %1.71 %1.45 %0.92 %0.92 %
Tax services66.35 %37.31 %1.52 %0.04 %70.20 %
Warehouse finance0.10 %0.10 %0.10 %0.10 %0.10 %
Total loans and leases1.73 %1.83 %1.22 %1.14 %2.01 %
Total loans and leases excluding tax services1.12 %1.14 %1.21 %1.14 %1.21 %

The Company's ACL as a percentage of total loans and leases decreased to 1.73% at June 30, 2024 from 1.83% at March 31, 2024. The decrease in the total loans and leases coverage ratio was primarily driven by the commercial finance portfolio, partially offset by increases in both the seasonal tax services portfolio and consumer finance portfolio. The decrease in the commercial finance loan and lease coverage ratio was due a mix shift within the portfolio with higher balances in term lending and SBA/USDA loans, which typically carry lower reserve rates.

4

Activity in the allowance for credit losses for the periods presented was as follows.
(Unaudited)Three Months EndedNine Months Ended
(Dollars in thousands)June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Beginning balance$80,777 $53,785 $84,304 $49,705 $45,947 
Provision (reversal of) - tax services loans(3,285)25,221 (229)23,292 32,830 
Provision (reversal of) - all other loans and leases8,926 684 2,059 17,820 15,549 
Charge-offs - tax services loans(820)— (404)(1,965)(2,135)
Charge-offs - all other loans and leases(7,772)(5,492)(5,597)(18,990)(14,931)
Recoveries - tax services loans1,230 5,800 671 7,324 2,432 
Recoveries - all other loans and leases780 779 1,112 2,650 2,224 
Ending balance$79,836 $80,777 $81,916 $79,836 $81,916 
The Company recognized a provision for credit losses of $5.9 million for the quarter ended June 30, 2024, compared to $1.8 million for the comparable period in the prior fiscal year. The period-over-period increase in provision for credit losses was primarily due to an increase in provision for credit losses in the commercial finance portfolio of $6.5 million, partially offset by a decrease of $3.1 million in the tax services portfolio. The Company recognized net charge-offs of $6.6 million for the quarter ended June 30, 2024, compared to net charge-offs of $4.2 million for the quarter ended June 30, 2023. Net charge-offs attributable to the commercial finance portfolio for the current quarter were $7.0 million, while net recoveries of $0.4 million were recognized in the tax services portfolio. Net charge-offs attributable to the consumer finance portfolio for the current quarter were insignificant. Net charge-offs attributable to the commercial finance and consumer finance portfolios for the same quarter of the prior year were $2.6 million and $1.9 million, respectively, while a net recovery of $0.3 million was recognized in the tax services portfolio.
The Company's past due loans and leases were as follows for the periods presented.
As of June 30, 2024Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $29,380 $29,380 $— $— $— 
Commercial finance28,224 7,348 17,071 52,643 3,807,548 3,860,191 8,427 27,613 36,040 
Consumer finance4,496 3,534 8,588 16,618 236,740 253,358 8,588 — 8,588 
Tax services— 43,184 — 43,184 — 43,184 — — — 
Warehouse finance— — — — 449,962 449,962 — — — 
Total loans and leases held for investment32,720 54,066 25,659 112,445 4,494,250 4,606,695 17,015 27,613 44,628 
Total loans and leases$32,720 $54,066 $25,659 $112,445 $4,523,629 $4,636,074 $17,015 $27,613 $44,628 

5

As of March 31, 2024Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$323 $546 $843 $1,712 $24,234 $25,946 $843 $— $843 
Commercial finance36,482 23,986 15,596 76,064 3,579,997 3,656,061 2,679 27,781 30,460 
Consumer finance4,293 3,001 3,093 10,387 256,644 267,031 3,093 — 3,093 
Tax services1,123 — — 1,123 83,379 84,502 — — — 
Warehouse finance— — — — 394,814 394,814 — — — 
Total loans and leases held for investment41,898 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 
The Company's nonperforming assets at June 30, 2024 were $46.3 million, representing 0.61% of total assets, compared to $37.2 million, or 0.50% of total assets at March 31, 2024 and $40.8 million, or 0.55% of total assets at June 30, 2023.
The increase in the nonperforming assets as a percentage of total assets at June 30, 2024 compared to March 31, 2024, was primarily driven by an increase in nonperforming loans in the commercial finance portfolio and an increase in nonperforming loans in the consumer finance portfolio due to seasonal activity. 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 consumer finance portfolio.
The Company's nonperforming loans and leases at June 30, 2024, were $44.6 million, representing 0.96% of total gross loans and leases, compared to $34.4 million, or 0.78% of total gross loans and leases at March 31, 2024 and $38.8 million, or 0.93% of total gross loans and leases at June 30, 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)PassWatchSpecial MentionSubstandardDoubtfulTotal
As of June 30, 2024
Commercial finance$3,058,737 $537,278 $63,523 $192,473 $8,180 $3,860,191 
Warehouse finance449,962 — — — — 449,962 
Total loans and leases$3,508,699 $537,278 $63,523 $192,473 $8,180 $4,310,153 
Asset Classification
(Dollars in thousands)PassWatchSpecial MentionSubstandardDoubtfulTotal
As of March 31, 2024
Commercial finance$2,893,892 $447,110 $87,657 $218,108 $9,294 $3,656,061 
Warehouse finance394,814 — — — — 394,814 
Total loans and leases$3,288,706 $447,110 $87,657 $218,108 $9,294 $4,050,875 



6

Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was $6.35 billion for the three-month period ended June 30, 2024, compared to $6.01 billion for the same period in the prior fiscal year, representing an increase of 6%. Total average deposits for the fiscal 2024 third quarter increased by $365.7 million to $6.26 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 2% to $6.43 billion at June 30, 2024, compared to $6.31 billion at June 30, 2023. The increase in end-of-period deposits was primarily driven by increases in noninterest-bearing deposits of $74.0 million, wholesale deposits of $37.6 million, and money market deposits of $23.1 million, partially offset by decreases in savings and time deposits.
As of June 30, 2024, the Company had $575.7 million in deposits related to government stimulus programs. Of the total amount of government stimulus program deposits, $236.9 million are on activated cards while $338.8 million are on inactivated cards. During the remainder of fiscal year 2024, these deposit balances are expected to decline by approximately $180 million as the Company actively returns unclaimed balances to the U.S. Treasury.
As of June 30, 2024, the Company managed $352.8 million of customer deposits at other banks in its capacity as custodian. These deposits provide the Company with the ability to earn servicing fee income, typically reflective of the EFFR. The sequential quarter decrease in these customer deposits held at other banks was primarily due to the Company retaining more deposits on its balance sheet as a result of the funding of loan growth by the Company during the current quarter.
Regulatory Capital
The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at June 30, 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. 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
June 30, 2024(1)
March 31, 2024December 31,
2023		September 30,
2023		June 30,
2023
Company
Tier 1 leverage capital ratio9.13 %7.75 %7.96 %8.11 %8.40 %
Common equity Tier 1 capital ratio12.44 %12.30 %11.43 %11.25 %11.52 %
Tier 1 capital ratio12.70 %12.56 %11.69 %11.50 %11.79 %
Total capital ratio14.33 %14.21 %13.12 %12.84 %13.45 %
Bank
Tier 1 leverage ratio9.36 %7.92 %8.15 %8.32 %8.67 %
Common equity Tier 1 capital ratio13.02 %12.83 %11.97 %11.81 %12.17 %
Tier 1 capital ratio13.02 %12.83 %11.97 %11.81 %12.17 %
Total capital ratio14.27 %14.09 %13.01 %12.76 %13.42 %
(1) June 30, 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.

7

The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
Standardized Approach(1)
As of the Periods Indicated

(Dollars in thousands)
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Total stockholders' equity$765,248 $739,462 $729,282 $650,625 $677,721 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities296,496 296,889 297,283 297,679 298,092 
LESS: Certain other intangible assets18,315 19,146 20,093 21,228 22,372 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards11,880 15,862 20,253 19,679 12,157 
LESS: Net unrealized (losses) on available for sale securities(206,584)(205,460)(187,901)(254,294)(207,358)
LESS: Noncontrolling interest(506)(420)(510)(1,005)(631)
ADD: Adoption of Accounting Standards Update 2016-131,345 1,345 1,345 2,017 2,017 
Common Equity Tier 1(1)
646,992 614,790 581,409 569,355 555,106 
Long-term borrowings and other instruments qualifying as Tier 113,661 13,661 13,661 13,661 13,661 
Tier 1 minority interest not included in common equity Tier 1 capital(374)(311)(410)(826)(454)
Total Tier 1 capital660,279 628,140 594,660 582,190 568,313 
Allowance for credit losses65,182 62,715 53,037 47,960 60,489 
Subordinated debentures, net of issuance costs19,668 19,642 19,617 19,591 19,566 
Total capital$745,129 $710,497 $667,314 $649,741 $648,368 
(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.

8

Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, July 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 059075.
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
•Raymond James U.S. Bank and Banking on Tech Conference, Sept. 5, 2024 | Chicago, IL

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, Chief of Staff & Investor Relations
877-497-7497
investorrelations@pathward.com
Media Relations Contact
mediarelations@pathward.com

9

Forward-Looking Statements
The Company and the Bank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and Exchange Commission ("SEC"), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” "target," or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results including our 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; 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.
10

Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in Thousands, Except Share Data)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
ASSETS
Cash and cash equivalents$298,926 $347,888 $671,630 $375,580 $515,271 
Securities available for sale, at fair value1,725,460 1,779,458 1,850,581 1,804,228 1,914,271 
Securities held to maturity, at amortized cost34,026 34,682 35,440 36,591 37,725 
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost24,449 25,844 23,694 28,210 30,890 
Loans held for sale29,380 25,946 69,518 77,779 87,351 
Loans and leases4,612,552 4,409,385 4,426,281 4,366,116 4,072,899 
Allowance for credit losses(79,836)(80,777)(53,785)(49,705)(81,916)
Accrued interest receivable31,755 30,294 27,080 23,282 22,332 
Premises, furniture, and equipment, net36,953 37,266 38,270 39,160 38,601 
Rental equipment, net209,544 215,885 228,916 211,750 224,212 
Goodwill and intangible assets327,018 328,001 329,241 330,225 331,335 
Other assets280,053 283,245 280,571 292,327 265,654 
Total assets$7,530,280 $7,437,117 $7,927,437 $7,535,543 $7,458,625 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits6,431,516 6,368,344 6,936,055 6,589,182 6,306,976 
Short-term borrowings— 31,000 — 13,000 230,000 
Long-term borrowings33,329 33,373 33,614 33,873 34,178 
Accrued expenses and other liabilities300,187 264,938 228,486 248,863 209,750 
Total liabilities6,765,032 6,697,655 7,198,155 6,884,918 6,780,904 
STOCKHOLDERS’ EQUITY 
Preferred stock— — — — — 
Common stock, $.01 par value251 254 260 262 266 
Common stock, Nonvoting, $.01 par value— — — — — 
Additional paid-in capital636,284 634,415 629,737 628,500 625,825 
Retained earnings343,392 317,964 293,463 278,655 267,100 
Accumulated other comprehensive loss(207,992)(206,570)(188,433)(255,443)(207,896)
Treasury stock, at cost(6,181)(6,181)(5,235)(344)(6,943)
Total equity attributable to parent765,754 739,882 729,792 651,630 678,352 
Noncontrolling interest(506)(420)(510)(1,005)(631)
Total stockholders’ equity765,248 739,462 729,282 650,625 677,721 
Total liabilities and stockholders’ equity$7,530,280 $7,437,117 $7,927,437 $7,535,543 $7,458,625 


11

Condensed Consolidated Statements of Operations (Unaudited)
 Three Months EndedNine Months Ended
(Dollars in Thousands, Except Share and Per Share Data)June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Interest and dividend income:   
Loans and leases, including fees$95,871 $102,750 $81,242 $293,584 $233,517 
Mortgage-backed securities9,748 9,998 10,234 29,795 30,972 
Other investments8,323 14,013 7,870 33,222 24,604 
 113,942 126,761 99,346 356,601 289,093 
Interest expense:  
Deposits1,689 6,685 164 11,900 2,402 
FHLB advances and other borrowings1,394 1,775 1,717 5,505 3,764 
 3,083 8,460 1,881 17,405 6,166 
Net interest income110,859 118,301 97,465 339,196 282,927 
Provision for credit loss5,881 26,052 1,773 41,823 48,312 
Net interest income after provision for credit loss104,978 92,249 95,692 297,373 234,615 
Noninterest income:    
Refund transfer product fees9,111 28,942 8,262 38,475 39,144 
Refund advance fee income(67)43,200 (927)43,244 37,685 
Card and deposit fees33,408 35,344 39,708 99,502 119,513 
Rental income13,779 13,720 13,980 40,958 39,628 
Gain on sale of trademarks— — — — 10,000 
Gain on sale of other4,675 1,695 821 9,210 657 
Other income4,965 6,044 5,889 16,188 13,921 
Total noninterest income65,871 128,945 67,733 247,577 260,548 
Noninterest expense:    
Compensation and benefits48,449 54,073 47,402 149,174 137,966 
Refund transfer product expense2,136 7,366 1,727 9,694 9,695 
Refund advance expense47 1,846 239 1,923 1,869 
Card processing34,314 35,163 26,342 104,061 75,949 
Occupancy and equipment expense9,070 9,293 8,595 27,211 25,417 
Operating lease equipment depreciation 10,465 10,424 10,517 31,312 34,864 
Legal and consulting5,410 6,141 5,089 16,443 19,469 
Intangible amortization983 1,240 1,168 3,207 3,861 
Impairment expense999 2,013 2,749 3,012 3,273 
Other expense11,806 12,872 10,750 37,347 34,410 
Total noninterest expense123,679 140,431 114,578 383,384 346,773 
Income before income tax expense47,170 80,763 48,847 161,566 148,390 
Income tax expense5,123 15,246 3,243 26,088 18,996 
Net income before noncontrolling interest42,047 65,517 45,604 135,478 129,394 
Net income attributable to noncontrolling interest212 249 508 718 1,685 
Net income attributable to parent$41,835 $65,268 $45,096 $134,760 $127,709 
Less: Allocation of Earnings to participating securities(1)
4325246901,1801,920
Net income attributable to common shareholders(1)
41,40364,74444,406133,580125,789
Earnings per common share:  
Basic$1.66 $2.56 $1.69 $5.27 $4.63 
Diluted$1.66 $2.56 $1.68 $5.27 $4.62 
Shares used in computing earnings per common share:
Basic24,946,085 25,281,743 26,346,693 25,335,621 27,152,773 
Diluted24,979,818 25,311,144 26,447,032 25,364,642 27,238,801 
(1) Amounts presented are used in the two-class earnings per common share calculation.

12

Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended June 30,20242023
(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$224,987 $2,053 3.67 %$248,865 $2,441 3.93 %
Mortgage-backed securities1,438,683 9,748 2.73 %1,533,122 10,234 2.68 %
Tax exempt investment securities128,117 911 3.62 %145,474 989 3.45 %
Asset-backed securities220,461 3,148 5.74 %188,039 2,120 4.52 %
Other investment securities282,966 2,211 3.14 %292,025 2,320 3.19 %
Total investments2,070,227 16,018 3.16 %2,158,660 15,663 2.96 %
Commercial finance3,756,152 78,353 8.39 %3,268,780 68,174 8.37 %
Consumer finance286,476 6,865 9.64 %225,470 4,665 8.30 %
Tax services56,836 55 0.39 %52,477 25 0.19 %
Warehouse finance407,210 10,598 10.47 %372,498 8,378 9.02 %
Total loans and leases4,506,674 95,871 8.56 %3,919,225 81,242 8.31 %
Total interest-earning assets$6,801,888 $113,942 6.75 %$6,326,750 $99,346 6.31 %
Noninterest-earning assets537,525 574,840 
Total assets$7,339,413 $6,901,590 
Interest-bearing liabilities:
Interest-bearing checking$684 $— 0.14 %$339 $— 0.22 %
Savings56,565 3 0.02 %69,310 7 0.04 %
Money markets178,255 584 1.32 %126,994 76 0.24 %
Time deposits4,265 3 0.32 %6,224 3 0.19 %
Wholesale deposits74,167 1,099 5.96 %5,794 78 5.38 %
Total interest-bearing deposits (a)313,936 1,689 2.16 %208,661 164 0.32 %
Overnight fed funds purchased52,374 730 5.61 %78,320 1,057 5.42 %
Subordinated debentures19,651 355 7.26 %19,549 355 7.28 %
Other borrowings13,705 309 9.07 %14,850 305 8.24 %
Total borrowings85,730 1,394 6.54 %112,719 1,717 6.11 %
Total interest-bearing liabilities399,666 3,083 3.10 %321,380 1,881 2.35 %
Noninterest-bearing deposits (b)5,947,054 — — %5,686,581 — — %
Total deposits and interest-bearing liabilities$6,346,720 $3,083 0.20 %$6,007,961 $1,881 0.13 %
Other noninterest-bearing liabilities252,763 206,708 
Total liabilities6,599,483 6,214,669 
Shareholders' equity739,930 686,921 
Total liabilities and shareholders' equity$7,339,413 $6,901,590 
Net interest income and net interest rate spread including noninterest-bearing deposits$110,859 6.56 %$97,465 6.19 %
Net interest margin6.56 %6.18 %
Tax-equivalent effect0.01 %0.02 %
Net interest margin, tax-equivalent(2)
6.57 %6.20 %
Total cost of deposits (a+b)6,260,990 1,689 0.11 %5,895,242 164 0.01 %
(1) Tax rate used to arrive at the TEY for the three months ended June 30, 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.

13

Selected Financial Information
As of and For the Three Months EndedJune 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Equity to total assets10.16 %9.94 %9.20 %8.63 %9.09 %
Book value per common share outstanding$30.51 $29.14 $28.06 $24.85 $25.54 
Tangible book value per common share outstanding$17.47 $16.21 $15.39 $12.24 $13.05 
Common shares outstanding25,085,230 25,377,986 25,988,230 26,183,583 26,539,272 
Nonperforming assets to total assets0.61 %0.50 %0.53 %0.77 %0.55 %
Nonperforming loans and leases to total loans and leases0.96 %0.78 %0.88 %1.26 %0.93 %
Net interest margin6.56 %6.23 %6.23 %6.19 %6.18 %
Net interest margin, tax-equivalent6.57 %6.24 %6.24 %6.21 %6.20 %
Return on average assets2.28 %3.17 %1.46 %1.97 %2.61 %
Return on average equity22.62 %35.72 %16.87 %21.12 %26.26 %
Full-time equivalent employees1,232 1,204 1,218 1,193 1,186 

Net Interest Margin and Cost of DepositsAt and For the Three Months Ended
(Dollars in thousands)June 30, 2024March 31, 2024June 30, 2023
Average interest earning assets$6,801,888 $7,635,842 $6,326,750 
Net interest income$110,859 $118,301 $97,465 
Net interest margin6.56 %6.23 %6.18 %
Quarterly average total deposits$6,260,990 $7,168,673 $5,895,242 
Deposit interest expense$1,689 $6,685 $164 
Cost of deposits0.11 %0.38 %0.01 %
Adjusted Net Interest Margin and Adjusted Cost of Deposits
Average interest earning assets$6,801,888 $7,635,842 $6,326,750 
Net interest income110,859 118,301 97,465 
Less: Contractual, rate-related processing expense27,595 30,094 20,528 
Adjusted net interest income$83,264 $88,207 $76,937 
Adjusted net interest margin4.92 %4.65 %4.88 %
Average total deposits$6,260,990 $7,168,673 $5,895,242 
Deposit interest expense1,689 6,685 164 
Add: Contractual, rate-related processing expense27,595 30,094 20,528 
Adjusted deposit expense$29,284 $36,779 $20,692 
Adjusted cost of deposits1.88 %2.06 %1.41 %


14
a3qfy24irquarterlydeck_f
QUARTERLY INVESTOR UPDATE THIRD 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 “Strong Results in Asset Optimization,” “Trusted Platform That Enables Our Partners to Thrive” and “Guidance,” 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; impacts of our implementation of a new technology system; 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 $41.8 million in net income; a decrease of 7% compared to Q3 FY 2023 Diluted Earnings Per Share $1.66 in diluted earnings per share; a decrease of 1% compared to Q3 FY 2023 Net Interest Margin Net interest margin (“NIM”) of 6.56% compared to 6.18% in prior year period; Adjusted NIM1, including contractual, rate-related processing expenses, of 4.92% compared to 4.88% in prior year period Return Metrics2 FY 2024 nine months ended return on average assets (“ROAA”) of 2.33% compared to 2.46% in prior year period; FY 2024 nine months ended return on average tangible equity (“ROATE”) of 47.3% compared to 50.8% in prior year period Q3 FY 2024 HIGHLIGHTS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation3 1 See slide 34 for reconciliation to most directly comparable GAAP measure. 2 ROAA and ROATE are annualized for periods presented.

 
STRONG RESULTS IN ASSET OPTIMIZATION • Robust pipeline in working capital and government guaranteed loans • Continued focus on optimizing assets and underwriting loans that have the highest risk adjusted returns • Implemented new technology system that will create efficiencies • Solid originations in consumer lending 4 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
• Experience • Operational excellence • Build strong partnerships • Mature risk and compliance infrastructure PATHWARD’S VALUE PROPOSITIONS MAKE US A TRUSTED PARTNER Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation5

 
TRUSTED PLATFORM THAT ENABLES OUR PARTNERS TO THRIVE 6 Right sized balance sheet with optimized asset mix Technology to facilitate evolution and scalability People and culture are important assets Mature risk and compliance framework Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
NET INTEREST INCOME DRIVES GROWTH IN EPS ($ IN MILLIONS, EXCEPT PER SHARE DATA) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation7 Q3 2023 Q3 2024 $97.5 $110.9 +14% Net Interest Income Q3 2023 Q3 2024 $114.6 $123.7 +8% Noninterest Expense Q3 2023 Q3 2024 $67.7 $65.9 -3% Noninterest Income Q3 2023 Q3 2024 $45.1 $41.8 -7% Net Income Attributable to Parent Q3 2023 Q3 2024 $1.68 $1.66 -1% Earnings per Diluted Share

 
 Average Q3FY24 off-balance sheet custodial deposits held in custody at program banks of $645 million compared to $1.18 billion during the prior year period.  $353 million of off-balance sheet custodial deposits as of June 30, 2024, as compared to $781 million as of June 30, 2023.  These off-balance sheet custodial deposits earn recordkeeping servicing fee income, typically reflective of the Effective Fed Funds Rate.  Continue to return unclaimed EIP balances to the U.S. Treasury. DEPOSIT BASE HIGHER TO SUPPORT ASSET GROWTH Q3 2023 Q3 2024 $6,307.0 $6,431.5 2% DEPOSITS 1 Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation8 1 Does not include off-balance sheet custodial deposits

 
TOTAL LOANS AND LEASES INCREASED FROM Q3 2023  Growth primarily driven by SBA/USDA, renewable energy and working capital  Nonperforming loans and leases of 0.96% compared to 0.93% at June 30, 2023  Annualized adjusted net charge-off rate of 0.63% for 3Q241 Q3 2023 Q3 2024 $4,072.9 $4,612.6 +13% TOTAL LOANS AND LEASES Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation9 1 See slide 32 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 $980 $575 $353 $299 $229 $38 1These off balance sheet custodial deposits can be brought back on balance sheet, as needed, as they are immediately callable. ($ in millions) 286,920 1,283,693 Q3 2024 Q3 2024 YTD Share RepurchasesLiquidity Sources Off Balance Sheet Custodial Deposits 1 Cash and Cash Equivalents Unpledged Investment Securities FHLB Borrowing Capacity Fed Discount Window Funds Unsecured Funding and Other Wholesale Funding Options $2,474

 
GUIDANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation11 Fiscal 2025Fiscal 2024 $6.40 - $6.60 EPS $7.00 - $7.50 EPS Earning asset yields increase 25 bps rate cut in Sept 2024 Effective tax rate 14-18% Effective tax rate 18-22% Core card fee income to follow historical seasonal patterns Includes expected share repurchases % % 1 Information on this slide is presented as of July 24, 2024, reflects the Company’s updated financial outlook, certain of the Company’s financial targets, and key assumptions, and will not be updated or affirmed unless and until the Company publicly announces such an update or affirmation. The guidance for fiscal 2024 and fiscal 2025, the Company’s financial targets and key economic assumptions contain forward-looking statements and actual results or conditions may differ materially. See the information set forth below the heading "Forward Looking Statements" on slide 2 of this presentation.

 
Q&A Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation12

 
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 Presentation13

 
RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 2.20% 1.55% 1.45% 1.74% 1.88% 2.33% 2.33% 2019 2020 2021 2022 2023 YTD24 Return on Average Assets2 ROAA inclusive of one-time items Total Revenue3 ($ in millions) Return on Average Tangible Equity2 35.42% 22.34% 21.87% 28.66% 30.25% 48.32% 47.30% 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 $5.27 $1.95 $2.54 $3.87 $4.44 $4.62 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 $487 $499 $550 $601 $704 $587 2019 2020 2021 2022 2023 YTD24 Gain on sale of trademarks Fiscal YTD Earnings Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation14 2YTD24 is annualized 3FY22 and FY23 includes $50.0 million and $10.0 million gain on sale of trademarks, respectively 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 $15.0 million of share repurchases in 3Q24. 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. $605.0M TOTAL SHARE REPURCHASES 2Q19 TO 3Q24 $34.5M TOTAL DIVIDENDS PAID 2Q19 TO 3Q24 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation15

 
• Total tax product revenue increased 3% through the nine months ended June 30, 2024 compared to the same period of the prior year. • Refund Advance originations of $1.56 billion in the 2024 tax season through June 30, 2024 compared to $1.46 billion in the 2023 tax season. • Decreases in provision from improving data analytics, underwriting and monitoring. 2024 TAX SEASON UPDATE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation16 1 Approximate loss rate calculated by taking provision for loan & lease losses divided by total refund advance originations. It also includes recoveries from prior tax season. TAX SERVICES ECONOMICS Nine Months Ended ($ in millions) June 30, 2023 June 30, 2024 % Change Net interest income (expense) 2.89 0.28 (90)% Refund Advance product income 37.69 43.24 15% Refund Transfer product income 39.15 38.48 (2)% Total revenue 79.73 82.00 3% Total expense 11.56 11.62 0% Provision for credit losses 32.83 23.29 (29)% Net income, pre-tax 35.34 47.09 33% Total Refund Advance originations $ 1,459 $ 1,559 7% Approximate loss rate¹ (9 months) 2.27% 1.49% (34)%

 
 During the 2024 fiscal third quarter, approximately 57% 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 June 30, 2024, Pathward also managed $353 million in off-balance sheet custodial deposits and earned $8.6 million of recordkeeping servicing fee income during the fiscal third quarter. That income is also typically reflective of the Effective Fed Funds Rate. COST OF DEPOSITS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation17 COST OF DEPOSITS 1.88% 2.16% 5.33% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 All-in Cost of Deposits Cost of Interest Bearing 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 42% 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 Presentation18 Refund Transfer Product Fees 16%Refund Advance Product Fees 17% Card and Deposit Fees 40% Rental Income 17% Other Income 10% FYTD 2024 NONINTEREST INCOME BREAKDOWN . Noninterest income 42% Net interest income 58% FYTD 2024 REVENUE BREAKDOWN

 
 Remain focused on smart growth in the Commercial Finance loan portfolio. Commercial Finance balances grew $419 million, or 12%, from the third quarter of the prior year.  3Q24 yields elevated by continued optimization of the balance sheet.  $1.8 billion securities portfolio provides cash flow for future commercial finance loan growth. LOAN PORTFOLIO Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation19 AVERAGE LOANS AND YIELDS ($B) PERIOD END PORTFOLIO COMPOSITION ($B) $3.4 $3.7 $3.7 $3.6 $3.9 $0.2 $0.3 $0.3 $0.3 $0.3 $0.0 $0.0 $0.0 $0.1 $0.0 $0.4 $0.4 $0.4 $0.4 $0.4 3Q23 4Q23 1Q24 2Q24 3Q24 $4.1 $4.4 $4.4 $4.4 $4.6 Warehouse Tax Services Consumer Commercial $3.9 $4.3 $4.5 $4.9 $4.5 8.31% 8.33% 8.33% 8.43% 8.56% 3Q23 4Q23 1Q24 2Q24 3Q24

 
 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 Presentation20 7.16% Q3 2024 Quarterly Yield1 18% Of Loan Portfolio Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Large ticket Lease financing $187.8 $160.4 $148.3 Term lending 526.3 554.9 541.0 Small ticket Lease financing 8.3 3.8 3.1 Term lending 205.9 155.1 138.4 TOTAL $928.3 $874.2 $830.8 ($ 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 Presentation21 13.24% Q3 2024 Quarterly Yield 18% Of Loan Portfolio Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Working Capital Asset-based lending $373.2 $429.6 $473.3 Factoring 351.1 336.4 350.7 TOTAL $724.3 $766.0 $824.0 ($ 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 Presentation22 8.59% Q3 2024 Quarterly Yield 13% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Insurance Premium Finance Insurance premium finance $666.3 $522.9 $617.1 TOTAL $666.3 $522.9 $617.1

 
• 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 Presentation23 6.36% Q3 2024 Quarterly Yield 30% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Guaranteed portion of US govt SBA/USDA loans SBA/USDA $253.3 $357.3 $357.0 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 169.1 203.1 206.7 Renewable energy debt financing¹ (term lending only) Term lending 290.6 484.4 593.7 Other Term lending 231.0 294.7 260.6 TOTAL $944.0 $1,339.5 $1,418.0 1Total renewable energy debt financing outstanding was $1.11 billion as of 3Q24. 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 Presentation24 9.64% Q3 2024 Quarterly Yield 6% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Consumer Consumer finance $200.1 $267.0 $253.3 TOTAL $200.1 $267.0 $253.3 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 Presentation25 10.47% Q3 2024 Quarterly Yield 10% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 3Q23 2Q24 3Q24 Warehouse Warehouse finance $380.4 $394.8 $450.0 TOTAL $380.4 $394.8 $450.0 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 June 30, 2024, $2.2B, or 48% of loans and leases contained floating or variable interest rates. Of these, $1.3B are tied to Fed Funds or Prime, with the remaining tied to either SOFR or the CMT.  As of June 30, 2024, all variable loans with floors were at or above their floors. LOAN PORTFOLIO INTEREST RATE SENSITIVITY Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation26 1 Fixed rate loans and leases are shown for contractual periods. 48% 17% 35% Fixed Rate > 1 Year TOTAL LOAN AND LEASE PORTFOLIO PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable NET INTEREST MARGIN AND LOAN YIELDS 3.75% 4.35% 4.59% 4.80% 4.76% 5.21% 5.62% 6.12% 6.18% 6.19% 6.23% 6.23% 6.56% 3.75% 4.34% 4.59% 4.79% 4.62% 4.73% 4.68% 4.89% 4.88% 4.87% 4.71% 4.65% 4.92% 6.90% 6.93% 6.96% 7.22% 6.69% 7.12% 7.70% 8.47% 8.31% 8.33% 8.33% 8.43% 8.56% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 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 Presentation27 INTEREST RATE RISK MANAGEMENT JUNE 30, 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. 4% 35% 12% 49% 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 Presentation28 ASSET QUALITY $4.5 $5.2 $4.6 $4.7 $7.0 0.46% 0.49% 0.41% 0.43% 0.63% 0.46% 0.47% 0.50% 0.45% 0.49% 3Q23 4Q23 1Q24 2Q24 3Q24 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adj. NCOs / Adj. Average Loans - LTM Adjusted Net Charge-Offs (“NCOs”)1 Excludes Tax Services NCOs and Related Seasonal Average Loans ($ in millions) KEY CREDIT METRICS • Annualized adjusted net charge-offs1: – 0.63% of average loans in 3Q24 – 0.49% of average loans over last 12 months • Allowance for credit loss (“ACL”) of $79.8 million as of June 30, 2024. • ACL as a % of total loans and leases was 1.73% for 3Q24, a 28 bps decrease from the prior year. • The increase in NPAs / NPLs compared to the sequential quarter was primarily driven by an increase in nonperforming loans in the commercial finance and consumer finance portfolios. 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. $38.8 $56.2 $39.6 $34.4 $44.6 0.93% 1.26% 0.88% 0.78% 0.96% 3Q23 4Q23 1Q24 2Q24 3Q24 Period Ended NPLs NPLs / Total Loans Nonperforming Assets (“NPAs”) ($ in millions) Nonperforming Loans (“NPLs”) ($ in millions) $40.8 $58.0 $42.4 $37.2 $46.3 0.55% 0.77% 0.53% 0.50% 0.61% 3Q23 4Q23 1Q24 2Q24 3Q24 Period Ended NPAs NPAs / Total Assets

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation29 CAPITAL AND SOURCES OF LIQUIDITY Regulatory Capital as of June 30, 2024 At June 30, 2024¹ Pathward Financial, Inc. Pathward, N.A. Tier 1 Leverage 9.13% 9.36% Common Equity Tier 1 12.44% 13.02% Tier 1 Capital 12.70% 13.02% Total Capital 14.33% 14.27% Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $299 Unpledged Investment Securities $38 FHLB Borrowing Capacity $980 Funds Available through Fed Discount Window $229 Unsecured Funding Providers $575 Deposit Balances Held at Other Banks $353 Total Liquidity $2,474 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. . 8.40% 8.11% 7.96% 7.75% 9.13% 8.67% 8.32% 8.15% 7.92% 9.36% 3Q23 4Q23 1Q24 2Q24 3Q24 Tier 1 Leverage Ratio 13.45% 12.84% 13.12% 14.21% 14.33% 13.42% 12.76% 13.01% 14.09% 14.27% 3Q23 4Q23 1Q24 2Q24 3Q24 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 Presentation30

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation31 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 Add: Rebranding expenses 13,148 Add: Separation related expenses 5,109 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 Presentation32 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) Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Net charge-offs 4,218 41,280 5,486 (1,087) 6,582 Less: Tax services net charge-offs (recoveries) (266) 36,075 851 (5,800) (410) Adjusted net charge-offs 4,484 5,205 4,635 4,713 6,992 Quarterly average loans and leases 3,919,225 4,288,067 4,535,826 4,903,175 4,506,674 Less: Quarterly average tax services loans 52,477 44,192 28,050 493,168 56,836 Adjusted quarterly average loans and leases 3,866,748 4,243,875 4,507,776 4,410,007 4,449,838 Annualized NCOs/average loans and leases 0.43% 3.85% 0.48% -0.09% 0.58% Adjusted annualized NCOs/adjusted average loans and leases1 0.46% 0.49% 0.41% 0.43% 0.63% Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the last twelve months ended ($ in thousands) Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Net charge-offs 39,054 53,690 55,959 49,897 52,261 Less: Tax services net charge-offs (recoveries) 22,298 35,779 35,597 30,860 30,716 Adjusted net charge-offs 16,756 17,911 20,362 19,037 21,545 Average loans and leases 3,769,235 3,936,582 4,189,308 4,411,573 4,558,436 Less: average tax services loans 140,463 142,640 143,345 154,472 155,561 Adjusted average loans and leases 3,628,772 3,793,943 4,045,963 4,257,104 4,402,874 NCOs/average loans and leases 1.04% 1.36% 1.34% 1.13% 1.15% Adjusted NCOs/adjusted average loans and leases1 0.46% 0.47% 0.50% 0.45% 0.49%

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation33 NON-GAAP RECONCILIATION For the last twelve months ended ($ in thousands) Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Noninterest expense – GAAP 449,803 464,975 479,190 492,485 501,586 Net interest income 362,687 387,861 413,840 430,736 444,130 Noninterest income 304,004 316,599 303,583 305,490 303,628 Total Revenue: GAAP 666,691 704,460 717,423 736,226 747,758 Efficiency ratio, LTM 67.47% 66.00% 66.79% 66.89% 67.08% For the last twelve months ended ($ in thousands) Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Noninterest expense – GAAP 449,803 464,975 479,190 492,485 501,586 Less: Rebranding expenses 10,636 3,737 - - - Adjusted noninterest expense 439,167 461,238 479,190 492,485 501,586 Net interest income 362,687 387,861 413,840 430,736 444,130 Noninterest income 304,004 316,599 303,583 305,490 303,628 Less: Gain on sale of trademarks 10,000 10,000 - - - Total Adjusted Revenue: 656,691 694,460 717,423 736,226 747,758 Adjusted Efficiency ratio, LTM 66.88% 66.42% 66.79% 66.89% 67.08% Efficiency Ratio Adjusted Efficiency Ratio

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation34 NON-GAAP RECONCILIATION For the quarter ended ($ in thousands) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Average interest earning assets 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 6,801,888 Net interest income 68,475 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 110,859 Net interest margin 3.75% 4.35% 4.59% 4.80% 4.76% 5.21% 5.62% 6.12% 6.18% 6.19% 6.23% 6.23% 6.56% Average total deposits 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 6,260,990 Deposit interest expense 188 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 1,689 Cost of deposits 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.13% 0.01% 0.12% 0.21% 0.38% 0.11% Net Interest Margin and Cost of Deposits Adjusted Net Interest Margin and Adjusted Cost of Deposits For the quarter ended ($ in thousands) Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Average interest earning assets 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 6,801,888 Net interest income 68,475 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 110,859 Less: Contractual, rate-related processing expense 46 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 27,595 Adjusted net interest income 68,429 70,462 71,485 83,583 69,993 72,388 70,072 81,036 76,937 82,461 83,243 88,207 83,264 Adjusted net interest margin 3.75% 4.34% 4.59% 4.79% 4.62% 4.73% 4.68% 4.89% 4.88% 4.87% 4.71% 4.65% 4.92% Average total deposits 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 6,260,990 Deposit interest expense 188 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 1,689 Add: Contractual, rate-related processing expense 46 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 27,595 Adjusted deposit expense 234 369 269 382 2,252 7,471 14,127 22,465 20,692 24,427 30,319 36,779 29,284 Adjusted cost of deposits 0.01% 0.02% 0.02% 0.02% 0.16% 0.52% 1.00% 1.43% 1.41% 1.56% 1.84% 2.06% 1.88%

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation35 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 $209.5M MANUFACTURING 38% Asset-Based lending 38% Term lending 10% Factoring 7% Rental equipment, net 7% Other TRANSPORTATION & WAREHOUSING 45% Term lending 31% Factoring 12% Insurance premium finance 5% Rental equipment, net 7% Other UTILITIES 48% SBA/USDA 47% Term lending 5% Rental equipment, net $716 $707 $676 $454 $287 $274 $256 $148 $146 $104 $96 $83 $75 $55 $53 $51 $33 $13 $9 $4 $2 Manufacturing Finance and Insurance Utilities Transportation and Warehousing Other Services (except Public Administration) Mining, Quarrying, and Oil and Gas Extraction Wholesale Trade Health Care and Social Assistance Construction Administrative and Support and Waste Management and Remediation Services Professional, Scientific, and Technical Services Public Administration Real Estate and Rental and Leasing Nonclassifiable Establishments Retail Trade Accommodation and Food Services Information Arts, Entertainment, and Recreation Agriculture, Forestry, Fishing and Hunting Educational Services Management of Companies and Enterprises $ in millions