cash-20241023
0000907471false00009074712024-10-232024-10-23


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

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): October 23, 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 October 23, 2024, the Registrant issued a press release announcing its results of operations and financial condition as of and for the three months and fiscal year ended September 30, 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 fourth quarter of fiscal 2024. The Quarterly Investor Update slide presentation is dated October 23, 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 October 23, 2024 regarding the results of operations and financial condition.
Quarterly Investor Update slide presentation for the Fourth Quarter of Fiscal Year 2024, dated October 23, 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: October 23, 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/.80911800.0000907471-24-000122pathward_logoxrgb.jpg.ashx
PATHWARD FINANCIAL, INC. ANNOUNCES RESULTS FOR 2024 FISCAL FOURTH QUARTER AND FISCAL YEAR 2024

Sioux Falls, S.D., October 23, 2024 - Pathward Financial, Inc. (“Pathward Financial” or the “Company”) (Nasdaq: CASH) reported net income of $33.6 million, or $1.35 per share, for the three months ended September 30, 2024, compared to net income of $35.9 million, or $1.36 per share, for the three months ended September 30, 2023.
The Company reported net income of $168.4 million, or $6.62 per share, for the fiscal year ended September 30, 2024, compared to net income of $163.6 million, or $5.99 per share, for the fiscal year ended September 30, 2023. For the fiscal year ended September 30, 2024, the Company recognized return on average assets of 2.20% compared to 2.33% for the prior year period.
CEO Brett Pharr said, “2024 was a great year for Pathward. We recertified as a Great Place to Work, remained committed to our remote first approach, announced new partnerships and extended others, celebrated employees who won multiple awards, and, most recently, announced that our newly rebranded Partner Solutions team won Finovate’s Best Banking as a Service provider. These successes translated to solid financial results as well. We reported earnings per diluted share of $6.62 for the fiscal year, which was just above the high end of our updated guidance range and represents year-over-year growth of 11%.”
Company Highlights and Business Developments
•On August 28, 2024, Pathward announced the sale of its commercial insurance premium finance business. The Company expects this transaction will close by October 31, 2024.
•On September 25, 2024, Pathward, N.A., (“Bank” or “Pathward”), a subsidiary of Pathward Financial, celebrated its 20th year serving the payments industry with the announcement it renamed its "Banking as a Service" business line to "Partner Solutions."
•On September 30, 2024, Pathward Financial and Pathward announced the Bank’s Partner Solutions line of business won the 2024 Finovate Award for Best Banking as a Service Provider. According to Finovate, its awards recognize the companies driving fintech innovation forward and the individuals bringing new ideas to life.
Financial Highlights for the 2024 Fiscal Fourth Quarter
•Total revenue for the fourth quarter was $167.9 million, an increase of $6.9 million, or 4%, 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 47 basis points to 6.66% for the fourth quarter from 6.19% 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, which includes the expenses associated with custodial deposits, NIM would have been 5.15% in the fiscal 2024 fourth quarter compared to 4.87% during the fiscal 2023 fourth quarter. Servicing fee income on off-balance sheet custodial deposits is not included in this calculation. See non-GAAP reconciliation table below.

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•Total gross loans and leases at September 30, 2024 decreased $290.9 million to $4.08 billion compared to September 30, 2023 and decreased $537.4 million when compared to June 30, 2024. When excluding insurance premium finance loans of $800.1 million and $617.1 million, respectively, total gross loans and leases at September 30, 2024 increased $509.2 million, or 14%, when compared to September 30, 2023 and increased $79.7 million, or 2%, compared to June 30, 2024.
•During the 2024 fiscal fourth quarter, the Company repurchased 236,308 shares of common stock at an average share price of $63.44. As of September 30, 2024, there were 7,000,000 shares available for repurchase under the current common stock share repurchase program.
Net Interest Income
Net interest income for the fourth quarter of fiscal 2024 was $115.9 million, an increase of 10% 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 fourth quarter of fiscal 2024 increased by $201.1 million to $6.93 billion compared to the same quarter in fiscal 2023, due to growth in average outstanding balances of loans and leases, partially offset by a decrease in total investment security balances and a decrease in cash balances. The fourth quarter average outstanding balance of loans and leases increased $406.4 million compared to the same quarter of the prior fiscal year, primarily due to an increase in commercial finance and warehouse finance loans, partially offset by a decrease in consumer finance loans.
Fiscal 2024 fourth quarter NIM increased to 6.66% from 6.19% in the fourth fiscal quarter of last year. When including contractual, rate-related processing expense, NIM would have been 5.15% in the fiscal 2024 fourth quarter compared to 4.87% during the fiscal 2023 fourth quarter. See non-GAAP reconciliation table below. The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased 41 basis points to 6.89% compared to the prior year quarter, driven by an improved earning asset mix. The yield on the loan and lease portfolio was 8.67% compared to 8.33% for the comparable period last year and the TEY on the securities portfolio was 3.12% compared to 3.13% over that same period.
The Company's cost of funds for all deposits and borrowings averaged 0.24% during the fiscal 2024 fourth quarter, as compared to 0.29% during the prior year quarter. The Company's overall cost of deposits was 0.07% in the fiscal fourth quarter of 2024, as compared to 0.12% during the prior year quarter. When including contractual, rate-related processing expense, the Company's overall cost of deposits was 1.76% in the fiscal 2024 fourth quarter, as compared to 1.56% during the prior year quarter. See non-GAAP reconciliation table below.
Noninterest Income
Fiscal 2024 fourth quarter noninterest income decreased 7% to $52.0 million, compared to $56.1 million for the same period of the prior year. The decrease was primarily driven by a decrease in card and deposit fees, rental income, and other income. 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 income totaled $3.2 million during the 2024 fiscal fourth quarter, compared to $7.8 million for the same period of the prior year. For the fiscal quarter ended June 30, 2024, servicing fee income on custodial deposits totaled $8.6 million.
Noninterest Expense
Noninterest expense increased 10% to $129.9 million for the fiscal 2024 fourth quarter, from $118.2 million for the same quarter last year. The increase was primarily attributable to increases in compensation and benefits, card processing expense, other expense, and legal and consulting expense. The period-over-period increase was partially offset by a decrease in operating lease depreciation and amortization expenses.
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The card processing expense increase was due to rate-related agreements with Partner Solutions relationships. 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 fourth quarter. For the fiscal quarter ended September 30, 2024, contractual, rate-related processing expenses were $26.3 million, as compared to $27.6 million for the fiscal quarter ended June 30, 2024, and $22.5 million for the fiscal quarter ended September 30, 2023.
Income Tax Expense
The Company recorded an income tax expense of $3.1 million, representing an effective tax rate of 8.2%, for the fiscal 2024 fourth quarter, compared to an income tax benefit of $2.7 million, representing an effective tax rate of (7.9%), for the fourth 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.
The Company originated $26.1 million in renewable energy leases during the fiscal 2024 fourth quarter, resulting in $7.2 million in total net investment tax credits. During the fourth quarter of fiscal 2023, the Company originated $42.6 million in renewable energy leases resulting in $13.7 million in total net investment tax credits. For the fiscal year ended September 30, 2024, the Company originated $68.4 million in renewable energy leases, compared to $93.6 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.

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Investments, Loans and Leases
(Dollars in thousands)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Total investments$1,774,313 $1,759,486 $1,814,140 $1,886,021 $1,840,819 
Loans held for sale
Term lending4,567 — 1,977 2,500 — 
Lease financing— — — 778 — 
Insurance premium finance594,359 — — — — 
SBA/USDA65,734 7,030 7,372 — — 
Consumer finance24,210 22,350 16,597 66,240 77,779 
Total loans held for sale688,870 29,380 25,946 69,518 77,779 
Term lending1,554,641 1,533,722 1,489,054 1,452,274 1,308,133 
Asset-based lending471,897 473,289 429,556 379,681 382,371 
Factoring362,295 350,740 336,442 335,953 358,344 
Lease financing152,174 155,044 168,616 188,889 183,392 
Insurance premium finance— 617,054 522,904 671,035 800,077 
SBA/USDA568,628 563,689 560,433 546,048 524,750 
Other commercial finance185,964 166,653 149,056 160,628 166,091 
Commercial finance3,295,599 3,860,191 3,656,061 3,734,508 3,723,158 
Consumer finance248,800 253,358 267,031 301,510 254,416 
Tax services8,825 43,184 84,502 33,435 5,192 
Warehouse finance517,847 449,962 394,814 349,911 376,915 
Total loans and leases4,071,071 4,606,695 4,402,408 4,419,364 4,359,681 
Net deferred loan origination costs4,124 5,857 6,977 6,917 6,435 
Total gross loans and leases4,075,195 4,612,552 4,409,385 4,426,281 4,366,116 
Allowance for credit losses(45,336)(79,836)(80,777)(53,785)(49,705)
Total loans and leases, net$4,029,859 $4,532,716 $4,328,608 $4,372,496 $4,316,411 
The Company's investment security balances at September 30, 2024 totaled $1.77 billion, as compared to $1.76 billion at June 30, 2024 and $1.84 billion at September 30, 2023.
Total gross loans and leases totaled $4.08 billion at September 30, 2024, as compared to $4.61 billion at June 30, 2024 and $4.37 billion at September 30, 2023. The primary driver for the sequential and year-over-year decrease was related to the insurance premium finance portfolio moving to held for sale. The decrease was partially offset by growth in total commercial finance loans, excluding insurance premium finance loans, and warehouse finance loans. A decrease in seasonal tax services loans also led to the sequential decrease. When excluding insurance premium finance loans, total gross loans and leases at September 30, 2024 increased $79.7 million, or 2%, compared to June 30, 2024 and increased $509.2 million, or 14%, when compared to September 30, 2023.
Commercial finance loans, which comprised 81% of the Company's loan and lease portfolio, totaled $3.30 billion at September 30, 2024, reflecting a decrease of $564.6 million from June 30, 2024 and a decrease of $427.6 million, or 11%, from September 30, 2023. The sequential decrease in commercial finance loans was primarily driven by the insurance premium finance portfolio moving to held for sale during the fourth quarter of fiscal 2024, which had a balance of $594.4 million at September 30, 2024. The decrease was partially offset by a $20.9 million increase in the term lending portfolio, a $19.3 million increase in the other commercial finance portfolio, and an $11.6 million increase in the factoring portfolio. The decrease in commercial finance loans when comparing the current period to the same period of the prior year was primarily driven by the aforementioned insurance premium finance loans along with a decrease in lease financing. This decrease was partially offset by increases in the term lending, asset-based lending, SBA/USDA, and other commercial finance
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portfolios. When excluding insurance premium finance loans, commercial finance loans at September 30, 2024 increased $52.5 million, or 2%, compared to June 30, 2024 and increased $372.5 million, or 13%, when compared to September 30, 2023.
Asset Quality
The Company’s allowance for credit losses ("ACL") totaled $45.3 million at September 30, 2024, a decrease compared to $79.8 million at June 30, 2024 and a decrease compared to $49.7 million at September 30, 2023. The decrease in the ACL at September 30, 2024, when compared to June 30, 2024, was primarily due to a $28.6 million decrease in the allowance related to the seasonal tax services portfolio, a $3.4 million decrease in the allowance related to the consumer finance portfolio, and $2.5 million decrease in the allowance related to the commercial finance portfolio.
The $4.4 million year-over-year decrease in the ACL was primarily driven by a $4.4 million decrease in the allowance related to the commercial finance portfolio and a $0.1 million decrease in the allowance related to the consumer finance portfolio, partially offset by a $0.1 million increase in the allowance related to the warehouse 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)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Commercial finance1.29 %1.17 %1.21 %1.30 %1.26 %
Consumer finance0.90 %2.23 %1.71 %1.45 %0.92 %
Tax services0.03 %66.35 %37.31 %1.52 %0.04 %
Warehouse finance0.10 %0.10 %0.10 %0.10 %0.10 %
Total loans and leases1.11 %1.73 %1.83 %1.22 %1.14 %
Total loans and leases excluding tax services1.12 %1.12 %1.14 %1.21 %1.14 %

The Company's ACL as a percentage of total loans and leases decreased to 1.11% at September 30, 2024 from 1.73% at June 30, 2024. The decrease in the total loans and leases coverage ratio was primarily driven by the consumer finance portfolio and the seasonal tax services portfolio, partially offset by an increase in the commercial finance portfolio. The decrease in the consumer finance loan coverage ratio was due to seasonal activity. The increase in the commercial finance loan and lease coverage ratio was primarily related to the $594.4 million of insurance premium finance loans that were held for sale as of September 30, 2024 and, as such, had no related ACL balance. That portfolio carried a lower reserve rate compared to the rest of the commercial finance portfolio.

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Activity in the allowance for credit losses for the periods presented was as follows.
(Unaudited)Three Months EndedFiscal Year Ended
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Beginning balance$79,836 $80,777 $81,916 $49,705 $45,947 
Provision (reversal of) - tax services loans(297)(3,285)2,945 22,995 35,775 
Provision (reversal of) - all other loans and leases1,423 8,926 6,124 19,243 21,673 
Charge-offs - tax services loans(28,815)(820)(36,606)(30,780)(38,741)
Charge-offs - all other loans and leases(7,912)(7,772)(6,227)(26,902)(21,158)
Recoveries - tax services loans461 1,230 531 7,785 2,963 
Recoveries - all other loans and leases640 780 1,022 3,290 3,246 
Ending balance$45,336 $79,836 $49,705 $45,336 $49,705 
The Company recognized a provision for credit losses of $0.8 million for the quarter ended September 30, 2024, compared to $9.0 million for the comparable period in the prior fiscal year. The period-over-period decrease in provision for credit losses was primarily due to decreases in provision for credit losses in the commercial finance portfolio of $4.7 million and the tax services portfolio of $3.2 million, partially offset by an increase of $0.1 million in provision for credit losses in the warehouse finance portfolio. The decrease in provision for credit losses in the commercial finance portfolio was primarily due to the insurance premium finance portfolio moving to held for sale during the quarter and reversing out the provision for credit losses on that portfolio. The Company recognized net charge-offs of $35.6 million for the quarter ended September 30, 2024, compared to net charge-offs of $41.3 million for the quarter ended September 30, 2023. Net charge-offs attributable to the seasonal tax services, consumer finance, and commercial finance portfolios for the current quarter were $28.4 million, $3.9 million, and $3.3 million, respectively. Net charge-offs attributable to the tax services, commercial finance and consumer finance portfolios for the same quarter of the prior year were $36.1 million, $5.1 million, and $0.1 million, respectively.
The Company's past due loans and leases were as follows for the periods presented.
As of September 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$2,266 $1,361 $1,050 $4,677 $684,193 $688,870 $1,050 $— $1,050 
Commercial finance23,381 7,671 19,975 51,027 3,244,572 3,295,599 2,314 26,412 28,726 
Consumer finance3,962 3,186 3,053 10,201 238,599 248,800 3,053 — 3,053 
Tax services— — 8,733 8,733 92 8,825 8,733 — 8,733 
Warehouse finance— — — — 517,847 517,847 — — — 
Total loans and leases held for investment27,343 10,857 31,761 69,961 4,001,110 4,071,071 14,100 26,412 40,512 
Total loans and leases$29,609 $12,218 $32,811 $74,638 $4,685,303 $4,759,941 $15,150 $26,412 $41,562 

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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 
The Company's nonperforming assets at September 30, 2024 were $43.0 million, representing 0.57% of total assets, compared to $46.3 million, or 0.61% of total assets at June 30, 2024 and $58.0 million, or 0.77% of total assets at September 30, 2023.
The decrease in the nonperforming assets as a percentage of total assets at September 30, 2024 compared to June 30, 2024, was primarily driven by a decrease in nonperforming loans in the commercial finance and consumer finance portfolios, partially offset by an increase in nonperforming loans in the tax services portfolio due to seasonal activity. When comparing the current period to the same period of the prior year, the decrease in nonperforming assets was primarily due to decreases in nonperforming loans in the commercial finance portfolio, partially offset by increases in the seasonal tax services portfolio and consumer finance portfolio.
The Company's nonperforming loans and leases at September 30, 2024, were $41.6 million, representing 0.87% of total gross loans and leases, compared to $44.6 million, or 0.96% of total gross loans and leases at June 30, 2024 and $56.2 million, or 1.26% of total gross loans and leases at September 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 September 30, 2024
Commercial finance$2,524,429 $486,670 $93,257 $180,942 $10,301 $3,295,599 
Warehouse finance517,847 — — — — 517,847 
Total loans and leases$3,042,276 $486,670 $93,257 $180,942 $10,301 $3,813,446 
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 


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Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was $6.38 billion for the three-month period ended September 30, 2024, compared to $6.39 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2024 fourth quarter decreased by $5.7 million to $6.20 billion compared to the same period in fiscal 2023. The decrease in average deposits was due to decreases in wholesale deposits and savings deposits, partially offset by increases noninterest bearing deposits and money market deposits.
Total end-of-period deposits decreased 11% to $5.88 billion at September 30, 2024, compared to $6.59 billion at September 30, 2023. The decrease in end-of-period deposits was primarily driven by decreases in noninterest-bearing deposits of $715.8 million, money market deposits of $10.6 million, and savings deposits of $10.3 million, partially offset by an increase in wholesale deposits of $20.1 million.
As of September 30, 2024, the Company had $433.3 million in deposits related to government stimulus programs. Of the total amount of government stimulus program deposits, $198.2 million are on activated cards while $235.1 million are on inactivated cards.
As of September 30, 2024, the Company managed $201.9 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 reflects normal seasonal patterns in deposits on balance sheet as well as the Company retaining more deposits on its balance sheet to fund 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 September 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 tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
As of the Periods Indicated
September 30, 2024(1)
June 30, 2024March 31,
2024		December 31,
2023		September 30,
2023
Company
Tier 1 leverage capital ratio9.26 %9.13 %7.75 %7.96 %8.11 %
Common equity Tier 1 capital ratio12.60 %12.44 %12.30 %11.43 %11.25 %
Tier 1 capital ratio12.86 %12.70 %12.56 %11.69 %11.50 %
Total capital ratio14.08 %14.33 %14.21 %13.12 %12.84 %
Bank
Tier 1 leverage ratio9.44 %9.36 %7.92 %8.15 %8.32 %
Common equity Tier 1 capital ratio13.12 %13.02 %12.83 %11.97 %11.81 %
Tier 1 capital ratio13.12 %13.02 %12.83 %11.97 %11.81 %
Total capital ratio13.97 %14.27 %14.09 %13.01 %12.76 %
(1) September 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.

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

(Dollars in thousands)
September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Total stockholders' equity$839,605 $765,248 $739,462 $729,282 $650,625 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities296,105 296,496 296,889 297,283 297,679 
LESS: Certain other intangible assets18,018 18,315 19,146 20,093 21,228 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards13,253 11,880 15,862 20,253 19,679 
LESS: Net unrealized (losses) on available for sale securities(152,328)(206,584)(205,460)(187,901)(254,294)
LESS: Noncontrolling interest(277)(506)(420)(510)(1,005)
ADD: Adoption of Accounting Standards Update 2016-131,345 1,345 1,345 1,345 2,017 
Common Equity Tier 1(1)
666,179 646,992 614,790 581,409 569,355 
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(150)(374)(311)(410)(826)
Total Tier 1 capital679,690 660,279 628,140 594,660 582,190 
Allowance for credit losses44,687 65,182 62,715 53,037 47,960 
Subordinated debentures, net of issuance costs19,693 19,668 19,642 19,617 19,591 
Total capital$774,070 $745,129 $710,497 $667,314 $649,741 
(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.

9

Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, October 23, 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 291724.
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
•Piper Sandler East Coast Financial Services Conference, Nov. 14, 2024 | Naples, FL

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 Partner Solutions 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

10

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.
11

Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in Thousands, Except Share Data)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
ASSETS
Cash and cash equivalents$158,337 $298,926 $347,888 $671,630 $375,580 
Securities available for sale, at fair value1,741,221 1,725,460 1,779,458 1,850,581 1,804,228 
Securities held to maturity, at amortized cost33,092 34,026 34,682 35,440 36,591 
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost36,014 24,449 25,844 23,694 28,210 
Loans held for sale688,870 29,380 25,946 69,518 77,779 
Loans and leases4,075,195 4,612,552 4,409,385 4,426,281 4,366,116 
Allowance for credit losses(45,336)(79,836)(80,777)(53,785)(49,705)
Accrued interest receivable31,385 31,755 30,294 27,080 23,282 
Premises, furniture, and equipment, net39,055 36,953 37,266 38,270 39,160 
Rental equipment, net205,339 209,544 215,885 228,916 211,750 
Goodwill and intangible assets326,094 327,018 328,001 329,241 330,225 
Other assets260,070 280,053 283,245 280,571 292,327 
Total assets$7,549,336 $7,530,280 $7,437,117 $7,927,437 $7,535,543 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits5,875,085 6,431,516 6,368,344 6,936,055 6,589,182 
Short-term borrowings377,000 — 31,000 — 13,000 
Long-term borrowings33,354 33,329 33,373 33,614 33,873 
Accrued expenses and other liabilities424,292 300,187 264,938 228,486 248,863 
Total liabilities6,709,731 6,765,032 6,697,655 7,198,155 6,884,918 
STOCKHOLDERS’ EQUITY 
Preferred stock— — — — — 
Common stock, $.01 par value248 251 254 260 262 
Common stock, Nonvoting, $.01 par value— — — — — 
Additional paid-in capital638,803 636,284 634,415 629,737 628,500 
Retained earnings354,474 343,392 317,964 293,463 278,655 
Accumulated other comprehensive loss(153,394)(207,992)(206,570)(188,433)(255,443)
Treasury stock, at cost(249)(6,181)(6,181)(5,235)(344)
Total equity attributable to parent839,882 765,754 739,882 729,792 651,630 
Noncontrolling interest(277)(506)(420)(510)(1,005)
Total stockholders’ equity839,605 765,248 739,462 729,282 650,625 
Total liabilities and stockholders’ equity$7,549,336 $7,530,280 $7,437,117 $7,927,437 $7,535,543 


12

Condensed Consolidated Statements of Operations (Unaudited)
 Three Months EndedFiscal Year Ended
(Dollars in Thousands, Except Share and Per Share Data)September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Interest and dividend income:   
Loans and leases, including fees$102,292 $95,871 $90,085 $395,876 $323,602 
Mortgage-backed securities9,607 9,748 10,225 39,402 41,197 
Other investments7,851 8,323 9,332 41,073 33,936 
 119,750 113,942 109,642 476,351 398,735 
Interest expense:  
Deposits1,119 1,689 1,954 13,019 4,356 
FHLB advances and other borrowings2,709 1,394 2,754 8,214 6,518 
 3,828 3,083 4,708 21,233 10,874 
Net interest income115,922 110,859 104,934 455,118 387,861 
Provision for credit loss838 5,881 9,042 42,661 57,354 
Net interest income after provision for credit loss115,084 104,978 95,892 412,457 330,507 
Noninterest income:    
Refund transfer product fees1,703 9,111 308 40,178 39,452 
Refund advance fee income229 (67)(252)43,473 37,433 
Card and deposit fees26,441 33,408 31,233 125,943 150,746 
Rental income13,199 13,779 14,562 54,157 54,190 
Gain on sale of trademarks— — — — 10,000 
Gain on sale of other3,459 4,675 2,006 12,669 2,663 
Other income6,979 4,965 8,194 23,167 22,115 
Total noninterest income52,010 65,871 56,051 299,587 316,599 
Noninterest expense:    
Compensation and benefits52,298 48,449 46,352 201,472 184,318 
Refund transfer product expense168 2,136 28 9,862 9,723 
Refund advance expense20 47 (6)1,943 1,863 
Card processing33,877 34,314 29,549 137,938 105,498 
Occupancy and equipment expense9,376 9,070 9,274 36,587 34,691 
Operating lease equipment depreciation 10,445 10,465 10,846 41,757 45,710 
Legal and consulting8,414 5,410 7,633 24,857 27,102 
Intangible amortization924 983 1,110 4,131 4,971 
Impairment expense— 999 — 3,012 3,273 
Other expense14,348 11,806 13,416 51,694 47,826 
Total noninterest expense129,870 123,679 118,202 513,253 464,975 
Income before income tax expense37,224 47,170 33,741 198,791 182,131 
Income tax expense (benefit)3,052 5,123 (2,672)29,141 16,324 
Net income before noncontrolling interest34,172 42,047 36,413 169,650 165,807 
Net income attributable to noncontrolling interest575 212 507 1,293 2,192 
Net income attributable to parent$33,597 $41,835 $35,906 $168,357 $163,615 
Less: Allocation of Earnings to participating securities(1)
3484325311,5402,445
Net income attributable to common shareholders(1)
33,24941,40335,375166,817161,162
Earnings per common share:  
Basic$1.35 $1.66 $1.37 $6.63 $6.01 
Diluted$1.35 $1.66 $1.36 $6.62 $5.99 
Shares used in computing earnings per common share:
Basic24,676,329 24,946,085 25,883,807 25,169,937 26,833,079 
Diluted24,715,021 24,979,818 25,991,449 25,201,750 26,925,606 
(1) Amounts presented are used in the two-class earnings per common share calculation.
13


Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended September 30,20242023
(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$214,921 $1,868 3.46 %$230,032 $2,425 4.18 %
Mortgage-backed securities1,412,359 9,607 2.71 %1,514,318 10,225 2.68 %
Tax exempt investment securities124,944 858 3.46 %141,328 964 3.43 %
Asset-backed securities200,382 2,967 5.89 %260,460 3,656 5.57 %
Other investment securities278,197 2,158 3.09 %289,980 2,287 3.13 %
Total investments2,015,882 15,590 3.12 %2,206,086 17,132 3.13 %
Commercial finance3,909,498 83,453 8.49 %3,543,353 74,157 8.30 %
Consumer finance274,675 6,413 9.29 %312,292 7,125 9.05 %
Tax services39,437 136 1.38 %44,192 (147)(1.32)%
Warehouse finance470,902 12,290 10.38 %388,230 8,950 9.15 %
Total loans and leases4,694,512 102,292 8.67 %4,288,067 90,085 8.33 %
Total interest-earning assets$6,925,315 $119,750 6.89 %$6,724,185 $109,642 6.48 %
Noninterest-earning assets573,503 566,890 
Total assets$7,498,818 $7,291,075 
Interest-bearing liabilities:
Interest-bearing checking$650 $— 0.19 %$364 $— 0.33 %
Savings47,193 3 0.03 %58,907 6 0.04 %
Money markets174,465 561 1.28 %156,671 237 0.60 %
Time deposits4,205 3 0.25 %5,589 3 0.19 %
Wholesale deposits41,299 552 5.32 %128,155 1,708 5.29 %
Total interest-bearing deposits (a)267,812 1,119 1.66 %349,686 1,954 2.22 %
Overnight fed funds purchased147,425 2,044 5.52 %148,837 2,077 5.54 %
Subordinated debentures19,676 355 7.17 %19,574 357 7.23 %
Other borrowings13,661 310 9.02 %14,484 320 8.76 %
Total borrowings180,762 2,709 5.96 %182,895 2,754 5.97 %
Total interest-bearing liabilities448,574 3,828 3.39 %532,581 4,708 3.51 %
Noninterest-bearing deposits (b)5,931,459 — — %5,855,248 — — %
Total deposits and interest-bearing liabilities$6,380,033 $3,828 0.24 %$6,387,829 $4,708 0.29 %
Other noninterest-bearing liabilities318,818 223,242 
Total liabilities6,698,851 6,611,071 
Shareholders' equity799,967 680,004 
Total liabilities and shareholders' equity$7,498,818 $7,291,075 
Net interest income and net interest rate spread including noninterest-bearing deposits$115,922 6.65 %$104,934 6.19 %
Net interest margin6.66 %6.19 %
Tax-equivalent effect0.01 %0.02 %
Net interest margin, tax-equivalent(2)
6.67 %6.21 %
Total cost of deposits (a+b)6,199,271 1,119 0.07 %6,204,934 1,954 0.12 %
(1) Tax rate used to arrive at the TEY for the three months ended September 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
14

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 EndedSeptember 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Equity to total assets11.12 %10.16 %9.94 %9.20 %8.63 %
Book value per common share outstanding$33.79 $30.51 $29.14 $28.06 $24.85 
Tangible book value per common share outstanding$20.67 $17.47 $16.21 $15.39 $12.24 
Common shares outstanding24,847,353 25,085,230 25,377,986 25,988,230 26,183,583 
Nonperforming assets to total assets0.57 %0.61 %0.50 %0.53 %0.77 %
Nonperforming loans and leases to total loans and leases0.87 %0.96 %0.78 %0.88 %1.26 %
Net interest margin6.66 %6.56 %6.23 %6.23 %6.19 %
Net interest margin, tax-equivalent6.67 %6.57 %6.24 %6.24 %6.21 %
Return on average assets1.79 %2.28 %3.17 %1.46 %1.97 %
Return on average equity16.80 %22.62 %35.72 %16.87 %21.12 %
Return on average tangible equity28.40 %40.59 %64.92 %33.95 %41.15 %
Full-time equivalent employees1,241 1,232 1,204 1,218 1,193 

Non-GAAP Reconciliations
Net Interest Margin and Cost of DepositsAt and For the Three Months Ended
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
Average interest earning assets$6,925,315 $6,801,888 $6,724,185 
Net interest income$115,922 $110,859 $104,934 
Net interest margin6.66 %6.56 %6.19 %
Quarterly average total deposits$6,199,271 $6,260,990 $6,204,934 
Deposit interest expense$1,119 $1,689 $1,954 
Cost of deposits0.07 %0.11 %0.12 %
Adjusted Net Interest Margin and Adjusted Cost of Deposits
Average interest earning assets$6,925,315 $6,801,888 $6,724,185 
Net interest income115,922 110,859 104,934 
Less: Contractual, rate-related processing expense26,274 27,595 22,473 
Adjusted net interest income$89,648 $83,264 $82,461 
Adjusted net interest margin5.15 %4.92 %4.87 %
Average total deposits$6,199,271 $6,260,990 $6,204,934 
Deposit interest expense1,119 1,689 1,954 
Add: Contractual, rate-related processing expense26,274 27,595 22,473 
Adjusted deposit expense$27,393 $29,284 $24,427 
Adjusted cost of deposits1.76 %1.88 %1.56 %


15
a4qfy24irquarterlydeck_f
THE PATHWARD STORY UPDATED OCTOBER 23, 2024

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation2 FORWARD LOOKING STATEMENTS This investor update contains “forward-looking statements” which are made in good faith by Pathward Financial, Inc. (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, future 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 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.

 
Since our founding, we have worked to advance financial inclusion. We seek out diverse partners, including fintechs, affinity groups, government agencies, and other banks and work with them to identify markets where people and businesses are underserved. Our national bank charter, coordination with regulators, and deep understanding of risk mitigation and compliance allow us to guide our partners and deliver financial products, services and funding to the people and businesses who need them the most. We are powering financial inclusion. AT PATHWARD®, LEADING THE WAY TO FINANCIAL ACCESS IS THE HEART OF OUR BUSINESS. 3 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
BUILDING A DIVERSIFIED COMPANY DEDICATED TO FINANCIAL EMPOWERMENT FOR INDIVIDUALS AND BUSINESSES 4 1993 Listed on Nasdaq: CASH 2015 / 2016 Entered Tax Services business by acquiring Refund Advantage, SCS, and EPS 2020 Completed sale of Retail Bank division to focus on national banking operations and payments Developed a governance structure that aligns with key ESG efforts Converted to National Bank Charter 2004 Created Prepaid Card Sponsorship business - now Partner Solutions 2014 Acquired AFS/IBEX, an insurance premium finance company 2018 Acquired Crestmark Bancorp, a commercial lending company Dramatic growth in deposits from Payments business heavily invested in securities, treasuries, and bond portfolio. 1954 Founded as a savings and loan bank 2021 Sold Meta trademarks and began rebranding initiative 2022 Completed rebranding as Pathward Financial 4 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 2024 Announced sale of Insurance Premium Finance business line to focus on higher return on asset verticals

 
Stable funding from deposits via Partner Solutions relationships Funding Earns consistent fees from the Partner Solutions business Operates a Commercial Finance collateralized lending platform Revenue 5 RESILIENT BUSINESS MODEL IN ECONOMIC CYCLES Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
COLLABORATE WITH PARTNERS TO PROVIDE INNOVATIVE PARTNER SOLUTIONS 6 Issuing Acquiring Digital Payments Financial Institution Solutions Credit Solutions Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Professional Tax Solutions

 
COMMERCIAL FINANCE HELPS BUSINESSES ACCESS NEEDED FUNDS THROUGH VARIOUS SOLUTIONS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation7 Working Capital Finance Equipment Finance Structured Finance Ready cash for liquidity needs to new or growing companies in cyclical or seasonal industries Providing access to equipment financing, through loans and leases, without sacrificing cash flows Assisting small and mid- sized businesses and rural borrowers with primarily SBA and USDA lending to fund growth, expansion and refinancing

 
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 PAYMENTS SECTOR, WITH DIVERSIFIED PORTFOLIO OF HIGH- QUALITY FINANCIAL PARTNERS RESILIENT COMMERCIAL FINANCE LOAN PORTFOLIO PRODUCES ATTRACTIVE RETURNS THROUGHOUT ECONOMIC CYCLES MATURE RISK MITIGATION AND COMPLIANCE CAPABILITIES WITH HIGHLY ADVANTAGEOUS NATIONAL BANK CHARTER 8 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
Earnings Per Common Share $5.26 $5.99 $2.49 $2.94 $4.38 $4.49 $6.62 2019 2020 2021 2022 2023 2024 EPS inclusive of one- time items CAGR 22% RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 2.20% 1.55% 1.45% 1.74% 1.88% 2.33% 2.20% 2019 2020 2021 2022 2023 2024 Return on Average Assets ROAA inclusive of one-time items Total Revenue2 ($ in millions) Return on Average Tangible Equity 35.42% 22.34% 21.87% 28.66% 30.25% 48.32% 41.74% 2019 2020 2021 2022 2023 2024 ROATE 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 $755 2019 2020 2021 2022 2023 2024 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation9 3Peer data includes commercial insured banks with assets between $3-10 billion. Return on average assets information gathered from the Federal Financial Institutions Examination Council database. Gain on sale of trademarks Peer average3 2FY22 and FY23 includes $50.0 million and $10.0 million gain on sale of trademarks, respectively 1 2 3 4 5

 
TRACK RECORD OF STRONG EARNINGS GROWTH AND RIGHT-SIZED BALANCE SHEET ENABLES ONGOING RETURN OF CAPITAL 10 1 2 3 4 5 $620.0M TOTAL SHARE REPURCHASES 2Q19 TO 4Q24 $35.8M TOTAL DIVIDENDS PAID 2Q19 TO 4Q24 Note: Repurchased common shares include shares withheld to cover income taxes owed by participants related to share-based incentive plans. Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
PATHWARD SERVES AS A HUB OF THE PAYMENTS ECOSYSTEM 11 1 2 3 4 5 Fed / Settlement ATM Sponsorship Processor AcquiringProcessor Issuing FinTech / Program Manager Partners Financial Institution Clients Debit/Credit Networks End User Card Holder / Consumer End User Merchants Issuing/Acquiring/ Originating Bank Regulatory/Compliance Oversight OCC Primary Regulator Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
COMMERCIAL FINANCE PORTFOLIO PRODUCES STABLE ANNUAL NET CHARGE-OFF RATES 12 Fiscal Year End Commercial Finance Loan Balances ($ in millions) $126 $113 $92 $140 $158 $207 $324 $368 $414 $474 $591 $665 $858 $1,510 $1,916 $2,308 $2,725 $3,024 $3,723 $3,296 0 0 0 0 0 0 0 0 0 0 1 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2005 1.67% 2006 1.72% 2007 1.10% 2008 1.17% 2009 1.61% 2010 0.68% 2011 0.04% 2012 0.69% 2013 0.67% 2014 0.36% 2015 -0.01% 2016 0.33% 2017 0.67% 2018 0.78% 2019 0.50% 2020 0.67% 2021 0.56% 2022 0.66% 2023 0.49% 2024 0.52% Fiscal Year NCO% 1 2 3 4 5 Pathward Acquires Crestmark Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Insurance premium finance portfolio moved to held for sale during 4QFY24

 
MATURE RISK MITIGATION AND COMPLIANCE CAPABILITIES 13 1 2 3 4 5 Enterprise Risk Management Our Enterprise Risk Management (ERM) program applies corporate governance to risk-taking activities. The ERM program sets strategy across the enterprise and works closely with the lines of business to ensure that risks are appropriately identified and managed. Third-Party Risk Management Just as Pathward’s ERM program oversees our own actions, our Third- Party Risk Management program ensures that our third-party relationships are controlled and mitigated. Our policy and strategy encourage us to protect our company from risk, monitor third- party activities, and report risk events. Business Continuity Management Business Continuity Management (BCM) sets standards and testing to ensure our company remains resilient in case of disaster. Our standards comply with Federal Financial Institutions Examination Council (FFIEC) and Office of the Comptroller of the Currency (OCC) guidance. Bank Secrecy Act / Anti- Money Laundering To protect our customers, partners and company from the risks of fraud, money laundering, terrorist financing and other illicit activity, Pathward’s compliance programs are designed to keep us compliant with all federal programs and sanctions. Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation

 
QUARTERLY INVESTOR UPDATE FOURTH QUARTER F ISCAL YEAR 2024

 
Net Income $168.4 million in net income; an increase of 3% compared to FY 2023 Diluted Earnings Per Share $6.62 in diluted earnings per share; an increase of 11% compared to FY 2023 Net Interest Margin Net interest margin (“NIM”) of 6.41% compared to 6.04% in prior year; Adjusted NIM1, including contractual, rate- related processing expenses, of 4.85% compared to 4.83% in prior year period Return Metrics2 FY 2024 return on average assets (“ROAA”) of 2.20% compared to 2.33% in prior year period; FY 2024 return on average tangible equity (“ROATE”) of 41.74% compared to 48.32% in prior year period FY 2024 HIGHLIGHTS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation15 1 See slide 42 for reconciliation to most directly comparable GAAP measure. 2 ROAA and ROATE are annualized for periods presented.

 
STRONG RESULTS FROM ASSET OPTIMIZATION • Loan and lease portfolio yield increased to 8.67% for the fourth quarter • Announced sale of the Insurance Premium Finance business • 39th largest SBA 7(a) program lender for the year ending September 30, 20241 • Solid pipelines in SBA, USDA, working capital, and consumer lending 16 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 Source: US Small Business Administration 7(a) and 504 Lender Report https://careports.sba.gov/views/7a504LenderReport/LenderReport?%3Aembed=yes&%3Atoolbar=no

 
• Renamed to Partner Solutions • Experience provides us with scale and capability to help partners expand • Awarded 2024 Finovate Best Banking as a Service Provider • Pipeline continues to be strong CELEBRATING 20 YEARS IN THE PAYMENTS INDUSTRY Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation17

 
TRUSTED PLATFORM THAT ENABLES OUR PARTNERS TO THRIVE 18 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 SOLID RESULTS ($ IN MILLIONS, EXCEPT PER SHARE DATA) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation19 Q4 2023 Q4 2024 $104.9 $115.9 +10% Net Interest Income Q4 2023 Q4 2024 $118.2 $129.9 +10% Noninterest Expense Q4 2023 Q4 2024 $56.1 $52.0 -7% Noninterest Income Q4 2023 Q4 2024 $35.9 $33.6 -6% Net Income Attributable to Parent Q4 2023 Q4 2024 $1.36 $1.35 -1% Earnings per Diluted Share

 
 Average Q4 2024 off-balance sheet custodial deposits held in custody at program banks of $240 million compared to $588 million during the prior year period.  $202 million of off-balance sheet custodial deposits as of September 30, 2024, as compared to $268 million as of September 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 SUPPORTS ASSET GROWTH Q4 2023 Q4 2024 $6,589.2 $5,875.1 -11% DEPOSITS 1 Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation20 1 Does not include off-balance sheet custodial deposits

 
TOTAL LOANS AND LEASES DECREASED FROM Q4 2023  Decrease driven by $594 million insurance premium finance portfolio being moved to held for sale during Q4 2024.  Decrease is partially offset by growth in SBA/USDA, renewable energy and working capital.  Nonperforming loans and leases of 0.87% compared to 1.26% at September 30, 2023.  Annualized adjusted net charge-off rate of 0.62% for 4Q241. Q4 2023 Q4 2024 $4,366.1 $4,075.2 -7% TOTAL LOANS AND LEASES Period ending ($ in millions) Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation21 1 See slide 40 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 Presentation22 $727 $555 $221 $215 $202 $158 1These off balance sheet custodial deposits can be brought back on balance sheet, as needed, as they are immediately callable. ($ in millions) Q4 2024 2024 YTD 236,308 1,520,001 Share RepurchasesLiquidity Sources Off Balance Sheet Custodial Deposits1 Cash and Cash Equivalents Unpledged Investment Securities FHLB Borrowing Capacity Fed Discount Window Funds Unsecured Funding and Other Wholesale Funding Options $2,078

 
FISCAL YEAR 2025 GUIDANCE1 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation23 $7.10- $7.60 EPS 25 bps rate cut in Nov and Dec 2024 Effective tax rate 18-22% Includes expected share repurchases 1 Information on this slide is presented as of October 23, 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 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. Does not include impact of sale of Insurance Premium Finance Business

 
Q&A Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation24

 
 Noninterest income represents 40% of year-to- date total revenue.  Majority of noninterest income fees are generated by the Company’s Partner Solutions 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 Presentation25 Refund Transfer Product Fees 13%Refund Advance Product Fees 15% Card and Deposit Fees 42% Rental Income 18% Other Income 12% YTD 2024 NONINTEREST INCOME BREAKDOWN . Noninterest income 40% Net interest income 60% YTD 2024 REVENUE BREAKDOWN

 
 During the 2024 fiscal fourth quarter, approximately 57% of the deposit balances were subject to variable card processing expenses, derived from contractual agreements with certain Partner Solutions relationships tied to a rate index, typically the Effective Fed Funds Rate.  These costs reprice immediately upon a change in the applicable rate index, leading to an instant cost change as compared to the earning-asset yields that will generally experience a lag in repricing.  As of September 30, 2024, Pathward also managed $202 million in off-balance sheet custodial deposits and earned $3.2 million of recordkeeping servicing fee income during the fiscal fourth quarter. That income is also typically reflective of the Effective Fed Funds Rate. COST OF DEPOSITS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation26 COST OF DEPOSITS 1.76% 1.66% 5.26% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 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.

 
 As of September 30, 2024, $2.4B, or 52% of loans and leases contained floating or variable interest rates. Of these, $1.4B are tied to Fed Funds or Prime, with the remaining tied to either SOFR or the CMT.  As of September 30, 2024, all variable loans with floors were at or above their floors.  Remain focused on smart growth in the Commercial Finance loan portfolio.  4Q24 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 INTEREST RATE SENSITIVITY Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation27 1 Fixed rate loans and leases are shown for contractual periods. 52% 15% 33% 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% 6.66% 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% 5.15% 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% 8.67% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 NIM Adjusted NIM Loan Yields 2 FY21 NIM suppressed because of elevated cash balances from government stimulus programs. 3 Adjusted NIM includes contractual card processing expenses associated with higher interest rates. See appendix for Non-GAAP financial measures reconciliation. 2 3

 
 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 Presentation28 7.03% Q4 2024 Quarterly Yield1 19% Of Loan Portfolio Business Line Balance Sheet Category 4Q23 3Q24 4Q24 Large ticket Lease financing $171.7 $148.3 $146.8 Term lending 528.5 541.0 488.6 Small ticket Lease financing 6.5 3.1 2.2 Term lending 188.8 138.4 121.7 TOTAL $895.5 $830.8 $759.3 ($ 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 Presentation29 12.98% Q4 2024 Quarterly Yield 20% Of Loan Portfolio Business Line Balance Sheet Category 4Q23 3Q24 4Q24 Working Capital Asset-based lending $382.4 $473.3 $471.9 Factoring 358.3 350.7 362.3 TOTAL $740.7 $824.0 $834.2 ($ 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 FINANCE1 COMMERCIAL FINANCE Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation30 9.20% Q4 2024 Quarterly Yield ($ in millions) Business Line Balance Sheet Category 4Q23 3Q24 4Q241 Insurance Premium Finance Insurance premium finance $800.1 $617.1 $594.4 TOTAL $800.1 $617.1 $594.4 1Insurance premium finance portfolio was moved to held for sale during the fourth quarter of fiscal year 2024. On August 28, 2024, Pathward announced the sale of its commercial insurance premium finance business.

 
• 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 Presentation31 6.56% Q4 2024 Quarterly Yield1 36% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 4Q23 3Q24 4Q24 Guaranteed portion of US govt SBA/USDA loans SBA/USDA $342.5 $357.0 $344.4 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 182.3 206.7 224.2 Renewable energy debt financing2 (term lending only) Term lending 268.1 593.7 635.7 Other Term lending 322.8 260.6 308.6 TOTAL $1,115.7 $1,418.0 $1,512.9 2Total renewable energy debt financing outstanding was $1.21 billion as of 4Q24. The majority of these balances are in the term lending and SBA/USDA balance sheet categories. 1Interest income does not include any gain(loss) on sale of loans.

 
• 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 Presentation32 9.29% Q4 2024 Quarterly Yield 7% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 4Q23 3Q24 4Q24 Consumer Consumer finance $254.4 $253.3 $248.8 TOTAL $254.4 $253.3 $248.8 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 Presentation33 10.38% Q4 2024 Quarterly Yield 13% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 4Q23 3Q24 4Q24 Warehouse Warehouse finance $376.9 $450.0 $517.8 TOTAL $376.9 $450.0 $517.8 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

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation34 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 $205.3M MANUFACTURING 38% Term lending 37% Asset based lending 10% Factoring 8% Rental equipment, net 7% Other TRANSPORTATION & WAREHOUSING 40% Term lending 33% Factoring 12% Insurance premium finance 5% Rental equipment, net 10% Other UTILITIES 47% Term lending 46% SBA/USDA 7% Rental equipment, net $777 $741 $728 $436 $296 $263 $256 $230 $169 $124 $108 $89 $85 $82 $80 $54 $50 $30 $18 $13 $4 $3 Finance and Insurance Utilities Manufacturing Transportation and Warehousing Mining, Quarrying, and Oil and Gas Extraction Null Other Services (except Public Administration) Wholesale Trade Construction Health Care and Social Assistance Administrative and Support and Waste Management and Remediation Services Professional, Scientific, and Technical Services Real Estate and Rental and Leasing Nonclassifiable Establishments Public Administration Retail Trade Accommodation and Food Services Information Agriculture, Forestry, Fishing and Hunting Arts, Entertainment, and Recreation Educational Services Management of Companies and Enterprises $ in millions

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation35 INTEREST RATE RISK MANAGEMENT SEPTEMBER 30, 2024 Asset/Liability Gap Analysis 1 Fixed rate securities, loans and leases are shown for contractual periods. 1% 39% 11% 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 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. -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

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation36 ASSET QUALITY $5.2 $4.6 $4.7 $7.0 $7.3 0.49% 0.41% 0.43% 0.63% 0.62% 0.47% 0.50% 0.45% 0.49% 0.52% 4Q23 1Q24 2Q24 3Q24 4Q24 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adj. NCOs / Adj. Average Loans - LTM Adjusted Net Charge-Offs (“NCOs”)1 Excludes Tax Services NCOs and Related Seasonal Average Loans ($ in millions) KEY CREDIT METRICS • Annualized adjusted net charge-offs1: – 0.62% of average loans in 4Q24 – 0.52% of average loans over last 12 months • Allowance for credit loss (“ACL”) of $45.3 million as of September 30, 2024. • ACL as a % of total loans and leases was 1.11% for 4Q24, a 3 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 and consumer finance portfolios, partially offset by an increase in the seasonal tax services 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. $56.2 $39.6 $34.4 $44.6 $41.6 1.26% 0.88% 0.78% 0.96% 0.87% 4Q23 1Q24 2Q24 3Q24 4Q24 Period Ended NPLs NPLs / Total Loans Nonperforming Assets (“NPAs”) ($ in millions) Nonperforming Loans (“NPLs”) ($ in millions) $58.0 $42.4 $37.2 $46.3 $43.0 0.77% 0.53% 0.50% 0.61% 0.57% 4Q23 1Q24 2Q24 3Q24 4Q24 Period Ended NPAs NPAs / Total Assets

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation37 CAPITAL AND SOURCES OF LIQUIDITY Regulatory Capital as of September 30, 2024 At September 30, 2024¹ Pathward Financial, Inc. Pathward, N.A. Tier 1 Leverage 9.26% 9.44% Common Equity Tier 1 12.60% 13.12% Tier 1 Capital 12.86% 13.12% Total Capital 14.08% 13.97% Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $158 Unpledged Investment Securities $221 FHLB Borrowing Capacity $727 Funds Available through Fed Discount Window $215 Unsecured Funding Providers $555 Deposit Balances Held at Other Banks $202 Total Liquidity $2,078 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. . 8.11% 7.96% 7.75% 9.13% 9.26% 8.32% 8.15% 7.92% 9.36% 9.44% 4Q23 1Q24 2Q24 3Q24 4Q24 Tier 1 Leverage Ratio 12.84% 13.12% 14.21% 14.33% 14.08% 12.76% 13.01% 14.09% 14.27% 13.97% 4Q23 1Q24 2Q24 3Q24 4Q24 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 Presentation38

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation39 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 Presentation40 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) Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Net charge-offs 41,280 5,486 (1,087) 6,582 35,626 Less: Tax services net charge-offs (recoveries) 36,075 851 (5,800) (410) 28,354 Adjusted net charge-offs 5,205 4,635 4,713 6,992 7,272 Quarterly average loans and leases 4,288,067 4,535,826 4,903,175 4,506,674 4,694,512 Less: Quarterly average tax services loans 44,192 28,050 493,168 56,836 39,437 Adjusted quarterly average loans and leases 4,243,875 4,507,776 4,410,007 4,449,838 4,655,075 Annualized NCOs/average loans and leases 3.85% 0.48% -0.09% 0.58% 3.04% Adjusted annualized NCOs/adjusted average loans and leases1 0.49% 0.41% 0.43% 0.63% 0.62% Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the last twelve months ended ($ in thousands) Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Net charge-offs 53,690 55,959 49,897 52,261 46,607 Less: Tax services net charge-offs (recoveries) 35,779 35,597 30,860 30,716 22,995 Adjusted net charge-offs 17,911 20,362 19,037 21,545 23,612 Average loans and leases 3,936,582 4,189,308 4,411,573 4,558,436 4,660,047 Less: average tax services loans 142,640 143,345 154,472 155,561 154,373 Adjusted average loans and leases 3,793,943 4,045,963 4,257,104 4,402,874 4,505,674 NCOs/average loans and leases 1.36% 1.34% 1.13% 1.15% 1.00% Adjusted NCOs/adjusted average loans and leases1 0.47% 0.50% 0.45% 0.49% 0.52%

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation41 NON-GAAP RECONCILIATION For the last twelve months ended ($ in thousands) Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Noninterest expense – GAAP 464,975 479,190 492,485 501,586 513,253 Net interest income 387,861 413,840 430,736 444,130 455,118 Noninterest income 316,599 303,583 305,490 303,628 299,587 Total Revenue: GAAP 704,460 717,423 736,226 747,758 754,705 Efficiency ratio, LTM 66.00% 66.79% 66.89% 67.08% 68.01% For the last twelve months ended ($ in thousands) Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Noninterest expense – GAAP 464,975 479,190 492,485 501,586 513,253 Less: Rebranding expenses 3,737 - - - - Adjusted noninterest expense 461,238 479,190 492,485 501,586 513,253 Net interest income 387,861 413,840 430,736 444,130 455,118 Noninterest income 316,599 303,583 305,490 303,628 299,587 Less: Gain on sale of trademarks 10,000 - - - - Total Adjusted Revenue: 694,460 717,423 736,226 747,758 754,705 Adjusted efficiency ratio, LTM 66.42% 66.79% 66.89% 67.08% 68.01% Efficiency Ratio Adjusted Efficiency Ratio

 
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation42 NON-GAAP RECONCILIATION For the quarter ended For the year ended ($ in thousands) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sept-23 Sept-24 Average interest earning assets 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 6,925,315 6,424,492 7,101,498 Net interest income 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 110,859 115,922 387,861 455,118 Net interest margin 4.35% 4.59% 4.80% 4.76% 5.21% 5.62% 6.12% 6.18% 6.19% 6.23% 6.23% 6.56% 6.66% 6.04% 6.41% Average total deposits 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 6,199,271 6,029,279 6,545,862 Deposit interest expense 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 1,689 1,119 4,356 13,019 Cost of deposits 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.13% 0.01% 0.12% 0.21% 0.38% 0.11% 0.07% 0.07% 0.20% Net Interest Margin and Cost of Deposits Adjusted Net Interest Margin and Adjusted Cost of Deposits For the quarter ended For the year ended ($ in thousands) Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sept-23 Sept-24 Average interest earning assets 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 6,925,315 6,424,492 7,101,498 Net interest income 70,667 71,613 83,800 72,151 79,760 84,057 101,405 97,465 104,934 110,036 118,301 110,859 115,922 387,861 455,118 Less: Contractual, rate-related processing expense 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 27,595 26,274 77,356 110,757 Adjusted net interest income 70,462 71,485 83,583 69,993 72,388 70,072 81,036 76,937 82,461 83,243 88,207 83,264 89,648 310,506 344,362 Adjusted net interest margin 4.34% 4.59% 4.79% 4.62% 4.73% 4.68% 4.89% 4.88% 4.87% 4.71% 4.65% 4.92% 5.15% 4.83% 4.85% Average total deposits 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 6,199,271 6,424,492 6,545,862 Deposit interest expense 164 141 165 94 99 142 2,096 164 1,954 3,526 6,685 1,689 1,119 4,356 13,019 Add: Contractual, rate-related processing expense 205 128 217 2,158 7,372 13,985 20,369 20,528 22,473 26,793 30,094 27,595 26,274 77,356 110,757 Adjusted deposit expense 369 269 382 2,252 7,471 14,127 22,465 20,692 24,427 30,319 36,779 29,284 27,393 81,711 123,776 Adjusted cost of deposits 0.02% 0.02% 0.02% 0.16% 0.52% 1.00% 1.43% 1.41% 1.56% 1.84% 2.06% 1.88% 1.76% 1.27% 1.89%

 
Industry Terms 43 Types of Payment Cards Banking-as-a-Service (BaaS): Providing financial services and solutions to third parties to offer through their distribution channels. Push-to-debit: The ability to move money directly to an end user. At Pathward, our push-to-debit capabilities are called “Faster Payments”. Debit Card: A type of payment card typically tied to funds held in a deposit account. Credit Card: A type of payment card typically attached to a line of credit that a user can make purchases against. Prepaid Card: A type of payment card that holds a finite amount of funds and is not directly tied to a bank account or line of credit. Virtual Card: A digital counterpart to a payment card, generated with a unique card number to settle a particular transaction by an authorized user. These are often used for one-time, business-to-business payments. Payment Players Acquiring Bank: An acquiring bank provides merchant accounts that allow a business to accept card payments and works in conjunction with the acquirer processor. In some cases, the acquiring bank and acquirer processor are a single entity. Acquiring Processors: Acquiring processors connect directly with merchants, the network and the acquiring bank, or via a payment gateway, to facilitate payment acceptance at the merchant. They provide the technical capabilities to create the system of record to communicate with authorization and settlement entities. In some cases, the acquiring bank and acquirer processor are a single entity. Issuing Bank: The issuing bank enters a relationship with the cardholder, program manager, and enables cards on a given network. The issuing bank fills three primary roles in payment processing: it is a “network sponsor,” which means it can issue cards on a given payments network; it is a holder of funds (for example, for gift cards, deposit accounts and other non-credit cards); and it is a “settlement point,” managing a consumer’s account and paying out to the merchant’s account after a purchase. Issuing Processor: Connects directly with the networks and issuing bank to provide the system of record, authorize transactions and communicate with settlement entities. Fintech: Fintech refers to the integration of technology into offerings by financial services companies in order to improve use and delivery to consumers. Merchant: A merchant simply refers to any business that accepts card-based payments either via a physical swipe (at the point-of-sale) or virtually online. Program Manager: Businesses that manage various elements of a card program on behalf of the issuing bank. The Program Manager is responsible for defining the program, operating the program, and managing its profitability. The program manager typically is responsible for establishing relationships with processors, banks, payment networks, and distributors and for establishing account(s) at banks. DEFINITIONS Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Commercial Lending Terms Asset-Based Lending: Asset-Based Lending (ABL) refers to business loans that are secured based on assets as collateral, generally accounts receivable, inventory, equipment or other balance sheet assets. Accounts Receivable: Accounts Receivable (A/R) financing refers to financing based on the value of a company’s accounts receivable (their invoices for goods or services) to another company. It is a subset of asset-based lending and is also known as factoring. Equipment Financing: Equipment Financing refers to a loan used to purchase business equipment. The financing is provided through leases such as $1 Buyout, Fair Market Value (FMV), or through term loans. Leases may appear in Loans & Leases or Rental Equipment. Factoring: Factoring refers to financing based on the purchase of a company’s accounts receivables, their invoices for goods or services. It is a subset of asset-based lending and is also known as accounts receivable financing. Insurance Premium Finance: Insurance Premium Finance refers to short-term collateralized financing to facilitate the purchases of property, casualty, and liability insurance premiums for the commercial market. Government Guaranteed Lending: A government guaranteed loan is a loan guaranteed by a government agency and financed through a lending financial entity. Government guaranteed loans include SBA loans and USDA loans. SBA Loan: An SBA loan refers to financing that is guaranteed by the Small Business Administration (SBA) and provided by a lending financial institution. SBA loans, such as an SBA 7(a) loan, may be easier for a small business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity. Term Loan: A Term loan is a loan for a specific amount that has a specified interest rate and regular payment schedule to be repaid over a set period of time. USDA Loan: A USDA loan refers to financing guaranteed by the U.S. Department of Agriculture (USDA) as part of the Rural Development program and provided by a lending financial institution. USDA business loans, such as the USDA Business & Industry (B & I) loan, may be easier for a business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity.