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Pathward Financial (Nasdaq: CASH) Q2 2026 results show strong tax season

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(High)
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8-K

Rhea-AI Filing Summary

Pathward Financial, Inc. reported fiscal 2026 second‑quarter net income of $72.9 million, or $3.35 per diluted share, compared with $75.0 million, or $3.14 per share, a year earlier. Total revenue was $276.3 million, with noninterest income up 9% to $151.2 million, driven by strong card, deposit and tax-related fees.

Tax services product revenue for the first six months rose 13% to $95.7 million, while refund advance originations increased to $1.87 billion from $1.66 billion and loss rates improved. Net interest margin declined to 6.63% from 7.12%, mainly due to a prior consumer finance portfolio sale, but adjusted NIM was 5.32% versus 5.09%.

Total gross loans and leases reached $4.87 billion, up from $4.46 billion a year earlier, led by commercial finance growth. The allowance for credit losses increased sequentially to $98.3 million, or 2.02% of total loans and leases, and nonperforming loans rose to $117.7 million, or 2.39% of loans. The company repurchased 855,201 shares at an average price of $84.15 and remained well‑capitalized, with a Tier 1 leverage ratio of 8.62% at the holding company and 8.85% at the bank.

Positive

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Negative

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Insights

Solid Q2 with strong fee and tax revenue, offset by lower margin and higher credit costs.

Pathward Financial generated Q2 net income of $72.9 million, down 3%, while diluted EPS rose 7% to $3.35 on a smaller share count. Total revenue was $276.3 million, with noninterest income up 9% to $151.2 million, showing the importance of fee-based businesses.

Tax services were a key driver: six‑month tax product revenue increased 13% to $95.7 million, refund advance originations grew to $1.87 billion, and approximate loss rates fell, lifting pre‑tax tax-services income by 30%. At the same time, net interest income declined 8% to $125.1 million as net interest margin compressed to 6.63%, largely from the October 2025 consumer finance portfolio sale.

Credit metrics are more mixed. The allowance for credit losses rose to $98.3 million and coverage to 2.02% of loans, while nonperforming loans increased to $117.7 million, or 2.39% of loans, versus 0.88% a year earlier. However, adjusted net charge‑offs over the last 12 months were 0.82% of adjusted average loans, and the company’s regulatory capital ratios remained well above well‑capitalized thresholds as of March 31, 2026.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 net income $72.9 million Three months ended March 31, 2026; down 3% vs prior-year quarter
Q2 2026 diluted EPS $3.35 per share Three months ended March 31, 2026; up 7% vs prior-year quarter
Q2 2026 total revenue $276.3 million Fiscal 2026 second quarter total revenue
Tax product revenue $95.7 million Six months ended March 31, 2026; up 13% vs prior-year period
Refund advance originations $1.87 billion 2026 tax season through March 31, 2026; prior year $1.66 billion
Net interest margin 6.63% Fiscal 2026 second quarter; prior-year quarter 7.12%
Total gross loans and leases $4.87 billion Balance at March 31, 2026; up from $4.46 billion at March 31, 2025
Allowance for credit losses $98.3 million (2.02% of loans) Balance at March 31, 2026
Share repurchases 855,201 shares at $84.15 Common stock repurchased during fiscal 2026 second quarter
net interest margin financial
"Fiscal 2026 second quarter net interest margin ("NIM") decreased to 6.63% from 7.12% in the second fiscal quarter of 2025"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
noninterest income financial
"Fiscal 2026 second quarter noninterest income increased 9% to $151.2 million, compared to $138.5 million for the same period of the prior year"
Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.
allowance for credit losses financial
"The Company’s allowance for credit losses ("ACL") totaled $98.3 million at March 31, 2026"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
nonperforming assets financial
"The Company's nonperforming assets at March 31, 2026 were $119.8 million, representing 1.68% of total assets"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
Tier 1 leverage capital ratio financial
"Tier 1 leverage capital ratio 8.62% ... Tier 1 leverage ratio 8.85%"
The Tier 1 leverage capital ratio measures a bank’s core financial cushion—mainly equity and retained profits—against its total assets, showing what share of its balance sheet is funded by high-quality capital rather than borrowed money. Think of it as the percentage of a building supported by solid pillars instead of temporary scaffolding; a higher ratio means the bank can better absorb losses and is less likely to need outside help, which matters to investors assessing safety, regulatory compliance, dividend risk and long-term stability.
tax-equivalent yield financial
"The overall reported tax-equivalent yield ("TEY") on average interest-earning assets decreased 48 basis point to 6.95% compared to the prior year quarter"
Tax-equivalent yield is the pre-tax interest rate a taxable investment must offer to match the after-tax return of a tax-exempt investment. Think of it like comparing take-home pay: one paycheck is tax-free and another is larger before taxes, and you calculate how big the taxed paycheck must be to end up with the same net amount. Investors use it to fairly compare taxable and tax-exempt bonds when deciding where their money will earn more after taxes.
Net income $72.9 million -3% vs Q2 2025
Diluted EPS $3.35 +7% vs Q2 2025
Total revenue $276.3 million
Noninterest income $151.2 million +9% vs prior-year quarter
Tax product revenue (6M) $95.7 million +13% vs prior-year period
Net interest income $125.1 million -8% vs prior-year quarter
Guidance

Company stated it is maintaining fiscal 2026 EPS guidance range of $8.55 to $9.05.

Understanding 8-K Material Events →
0000907471false00009074712026-04-222026-04-22


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): April 22, 2026

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 April 22, 2026, the Registrant issued a press release announcing its results of operations and financial condition as of and for the three and six months ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated into this Item 2.02 by reference.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference in any filing under the Exchange Act or under the Securities Act of 1933, as amended (the "Securities Act"), except to the extent specifically provided in any such filing.

Item 7.01    Regulation FD Disclosure.

Information is being furnished herein in Exhibit 99.2 with respect to the Quarterly Investor Update slide presentation prepared for use in connection with the Company's conference call and earnings webcast for the second quarter of fiscal 2026. The Quarterly Investor Update slide presentation is dated April 22, 2026 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
99.1
Press Release of Pathward Financial, Inc., dated April 22, 2026 regarding the results of operations and financial condition.
99.2
Quarterly Investor Update slide presentation for the Second Quarter of Fiscal Year 2026, dated April 22, 2026, 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: April 22, 2026
By:
/s/ Gregory A. Sigrist
Gregory A. Sigrist
Executive Vice President and Chief Financial Officer



Exhibit 99.1
pathward_logoxrgba.jpg
PATHWARD FINANCIAL, INC. ANNOUNCES RESULTS FOR 2026 FISCAL SECOND QUARTER

Sioux Falls, S.D., April 22, 2026 - Pathward Financial, Inc. (“Pathward Financial” or the “Company”) (Nasdaq: CASH), a U.S.-based financial holding company driven by its purpose to power financial inclusion for all, today reported its results for the 2026 fiscal second quarter. The Company reported net income of $72.9 million, or $3.35 per share, for the three months ended March 31, 2026, compared to net income of $75.0 million, or $3.14 per share, for the three months ended March 31, 2025.
CEO Brett Pharr said, "At the midpoint of our fiscal year, we continue to make good progress on our goals and execute on our long-term strategy — being the trusted platform that enables our partners to thrive. Our tax season is going very well with tax-related products leading the way in revenue growth for the quarter. Additionally, new and existing partnerships announced last year are developing nicely and the Partner Solutions pipeline remains robust. Net interest income from our commercial finance loans also increased significantly as well. All in all, our core businesses remain healthy and we are pleased with the results achieved in the quarter."
Company Highlights
•The Company's subsidiary Pathward®, N.A. announced it became Certified™ by Great Place To Work® for the fourth year in a row. This year, 88% of employees surveyed said Pathward is a Great Place To Work® – 31 points higher than the typical U.S. company. Great Place to Work® describes itself as the global authority on workplace culture, employee experience, and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation.
Financial Highlights for the 2026 Fiscal Second Quarter
All highlights are compared to the same fiscal quarter in the prior year period.
•Total revenue was $276.3 million, which was driven by a 9% increase in noninterest income. This was primarily driven by growth in card and deposit fees of 22%, refund advance and other tax fee income of 18%, and refund transfer product fees of 7%. Noninterest income represented 55% of total revenue.
•New loan originations, excluding tax services, increased from $902 million to $1.31 billion, primarily driven by the new contract announced during fiscal 2025 within consumer finance.
•Annualized return on average assets was 3.56% and return on average tangible equity was 54.41%.
•The Company repurchased 855,201 shares of common stock at an average share price of $84.15. As of March 31, 2026, there were 3,430,811 shares available for repurchase under the current common stock share repurchase program.
Tax Season
All reported numbers are for the six months ended March 31, 2026 and are compared to the same fiscal period in the prior year.
Total tax services product revenue was $95.7 million, an increase of 13% compared to the prior year. This was driven by an increase in the number of refund advances, as well as higher origination volumes and an increase in refund transfers. Total tax services product fee income increased by $10.6 million and net interest income on tax services loans increased $0.2 million. Total tax services product expense increased $0.8 million when compared to the prior year.
1

Provision for credit losses for the tax services portfolio decreased $4.4 million when compared to the prior year as a result of the continued work on enhancing underwriting models and data analytics capabilities.
Total tax services product income, net of losses and direct product expenses, increased 30% to $62.0 million from $47.6 million. This increase is the result of significant work to grow this business, increase market share and evolve the underwriting model.
For the 2026 tax season through March 31, 2026, the Company originated $1.87 billion in refund advance loans compared to $1.66 billion during the 2025 tax season.
Net Interest Income
Net interest income for the second quarter of fiscal 2026 was $125.1 million, a decrease of 8% compared to the same quarter in fiscal 2025, which was primarily driven by decreases in interest income of $12.8 million on the consumer finance portfolio and $4.2 million of cash and fed funds sold. Interest income on the consumer finance portfolio was impacted by the sale of a portfolio in October 2025 that was previously accounted for using a gross accounting methodology, and therefore, recorded at higher yields with offsetting entries not included in net interest income. Partially offsetting that decrease, interest income from commercial finance loans and leases increased $8.4 million over that same period.
The Company’s average interest-earning assets for the second quarter of fiscal 2026 decreased by $107.4 million to $7.65 billion compared to the same quarter in fiscal 2025 due to decreases in the average outstanding balances in cash and fed funds sold and total investments securities. The decrease was partially offset by an increase in the average outstanding balance of total loans and leases. These results are expected as the Company continues to shift the balance sheet toward higher returning assets. The second quarter average outstanding balance of loans and leases increased $437.9 million compared to the same quarter of the prior fiscal year due to increases in the commercial finance and tax services portfolios, partially offset by decreases in the consumer finance and warehouse finance portfolios.
Fiscal 2026 second quarter net interest margin ("NIM") decreased to 6.63% from 7.12% in the second fiscal quarter of 2025 primarily due to the aforementioned sale of the consumer finance portfolio in October 2025. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excluding the gross interest income on consumer finance loans, NIM would have been 5.32% in the fiscal 2026 second quarter compared to 5.09% during the fiscal 2025 second quarter. See non-GAAP reconciliation table at the end of the press release. The overall reported tax-equivalent yield (“TEY”) on average interest-earning assets decreased 48 basis point to 6.95% compared to the prior year quarter. The yield on the loan and lease portfolio was 8.43% compared to 9.54% for the comparable period last year and the TEY on the securities portfolio was 3.06% compared to 3.11% over that same period. The decreases in the TEY on average interest-earning assets and the yield on the loan and lease portfolio were also primarily driven by the aforementioned sale of the consumer finance portfolio.
The Company's cost of funds for all deposits and borrowings averaged 0.33% during the fiscal 2026 second quarter, as compared to 0.32% during the prior year quarter. The Company's overall cost of deposits was 0.25% in the fiscal second quarter of 2026, as compared to 0.23% during the prior year quarter. When including contractual, rate-related processing expense associated with deposits on the Company's balance sheet, the Company's overall cost of deposits was 1.63% in the fiscal 2026 second quarter, a decrease from 1.75% during the prior year quarter primarily reflecting a lower rate environment. See non-GAAP reconciliation table at the end of the press release.
Noninterest Income
Fiscal 2026 second quarter noninterest income increased 9% to $151.2 million, compared to $138.5 million for the same period of the prior year. The increase was driven by increases in refund advance and other tax fee income, card and deposit fees, and refund transfer product fees, partially offset by decreases in secondary market revenue and rental income. Secondary market revenue in the prior year period was elevated by the gain from a portfolio sale within working capital. That gain was partially offset by a loss on sale of securities and a loss on divestiture that were also recognized in the prior year period.
2

Servicing fee income on custodial deposits totaled $7.8 million during the 2026 fiscal second quarter, as compared to $3.4 million for the fiscal quarter ended December 31, 2025, and $6.5 million for the same period of the prior year. The sequential and year-over-year increases in servicing fee income on custodial deposit balances held at partner banks was due to higher quarterly average deposits balances held at partner banks.
Noninterest Expense
Noninterest expense decreased 3% to $143.5 million in the second quarter of fiscal 2026, compared to $148.2 million for the same quarter last year. The decrease was primarily attributable to reductions in card processing and other expense, partially offset by increases in compensation and benefits and building and software expense. We believe that the Company continues to manage expenses well while simultaneously investing in people, processes and systems to execute on its long-term strategy.
Card processing expense is primarily driven by 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 66% of the deposit portfolio was subject to these rate-related processing expenses during the fiscal 2026 second quarter. For the fiscal quarter ended March 31, 2026, contractual, rate-related processing expense was $25.4 million, as compared to $23.8 million for the fiscal quarter ended December 31, 2025, and $28.4 million for the fiscal quarter ended March 31, 2025.
Income Tax Expense
The Company recorded an income tax expense of $14.2 million, representing an effective tax rate of 16.2% for the fiscal 2026 second quarter, compared to an income tax expense of $16.2 million, representing an effective tax rate of 17.7%, for the second quarter last fiscal year. The current quarter decrease in income tax expense compared to the prior year quarter was primarily driven by research tax credits.
The Company originated $8.0 million in renewable energy leases during the fiscal 2026 second quarter, resulting in $2.0 million in total net investment tax credits. During the second quarter of fiscal 2025, the Company originated $1.9 million in renewable energy leases resulting in $0.5 million in total net investment tax credits. For the six months ended March 31, 2026, the Company originated $27.7 million in renewable energy leases, compared to $11.2 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.
3

Investments, Loans and Leases
(Dollars in thousands)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Total investments$1,299,421 $1,338,709 $1,357,151 $1,397,613 $1,442,855 
Loans held for sale
Term lending— 5,000 — 5,736 — 
Lease financing566 619 690 93 — 
SBA/USDA20,811 31,338 15,654 9,564 15,188 
Consumer finance31,695 51,012 163,077 34,374 30,579 
Total loans held for sale53,072 87,969 179,421 49,767 45,767 
Term lending2,501,855 2,506,777 2,302,540 2,003,699 1,766,432 
Asset-based lending660,220 629,317 593,265 610,852 542,483 
Factoring213,269 213,888 217,501 241,024 224,520 
Lease financing126,902 136,505 149,236 134,214 134,856 
SBA/USDA536,637 520,461 511,488 674,902 701,736 
Other commercial finance73,694 140,229 149,939 153,321 154,728 
Commercial finance4,112,577 4,147,177 3,923,969 3,818,012 3,524,755 
Consumer finance90,912 132,045 93,319 226,380 246,202 
Tax services60,191 62,049 2,532 37,419 55,973 
Warehouse finance604,642 641,669 645,186 664,110 643,124 
Total loans and leases4,868,322 4,982,940 4,665,006 4,745,921 4,470,054 
Net deferred loan origination costs (fees)(1,157)(85)(98)(2,597)(5,184)
Total gross loans and leases4,867,165 4,982,855 4,664,908 4,743,324 4,464,870 
Allowance for credit losses(98,279)(58,840)(53,319)(105,995)(102,890)
Total loans and leases, net$4,768,886 $4,924,015 $4,611,589 $4,637,329 $4,361,980 
The Company's investment security balances at March 31, 2026 totaled $1.30 billion, as compared to $1.34 billion at December 31, 2025 and $1.44 billion at March 31, 2025. The year-over-year decrease was primarily related to normal paydown activity of investment security balances and the sale of investment securities AFS during the fourth quarter of fiscal 2025.
Total gross loans and leases totaled $4.87 billion at March 31, 2026, as compared to $4.98 billion at December 31, 2025 and $4.46 billion at March 31, 2025. The drivers for the sequential quarter decrease were decreases in the consumer finance, warehouse finance, and the commercial finance portfolios. The year-over-year increase was due to growth in the commercial finance and seasonal tax services portfolios, partially offset by a decrease in the consumer finance portfolio due to the aforementioned loan sale within that portfolio in October 2025, as well as a decrease in the warehouse finance portfolio.
Commercial finance loans, which comprised 84% of the Company's loan and lease portfolio, totaled $4.11 billion at March 31, 2026, reflecting a decrease of $34.6 million, or 1%, from December 31, 2025 and an increase of $587.8 million, or 17%, from March 31, 2025. The sequential quarter decrease in the commercial finance portfolio was primarily driven by a decrease of $66.5 million in other commercial finance, partially offset by a $30.9 million increase in asset-based lending. The year-over-year increase was primarily driven by an increase of $735.4 million in term lending and an increase of $117.7 million in asset-based lending, partially offset by a decrease of $165.1 million in SBA/USDA and a decrease of $81.0 million in other commercial finance. These changes are primarily the result of the Company's efforts to optimize the balance sheet.



4

Asset Quality
The Company’s allowance for credit losses ("ACL") totaled $98.3 million at March 31, 2026, an increase compared to $58.8 million at December 31, 2025 and a decrease compared to $102.9 million at March 31, 2025. The sequential increase in the ACL was primarily due to an increase of $34.2 million in the allowance related to the seasonal tax services portfolio and an increase of $7.7 million in the allowance related to the commercial finance portfolio, partially offset by a $2.5 million decrease in the allowance related to the consumer finance portfolio.
The $4.6 million year-over-year decrease in the ACL was primarily driven by a decrease in the allowance related to the consumer finance portfolio of $23.1 million, partially offset by a $17.0 million increase in the allowance related to the commercial finance portfolio and a $1.5 million increase in the allowance related to the seasonal tax services portfolio.
The following table presents the Company's ACL as a percentage of its total loans and leases.
As of the Period Ended
(Unaudited)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
Commercial finance1.36 %1.16 %1.18 %1.27 %1.10 %
Consumer finance7.25 %6.85 %6.88 %11.69 %12.04 %
Tax services58.63 %1.71 %— %81.32 %60.35 %
Warehouse finance0.10 %0.10 %0.10 %0.10 %0.10 %
Total loans and leases2.02 %1.18 %1.14 %2.23 %2.30 %
Total loans and leases excluding tax services1.31 %1.17 %1.14 %1.60 %1.57 %

The Company's ACL as a percentage of total loans and leases increased to 2.02% at March 31, 2026 from 1.18% at December 31, 2025 and decreased from 2.30% at March 31, 2025. The sequential increase in the total loans and leases coverage ratio was primarily driven by the seasonality in the tax services portfolio, along with an increase in the ACL related to the commercial finance portfolio. The year-over-year decrease in the total loans and leases coverage ratio was primarily driven by the decrease in the ACL related to the decrease in the consumer finance portfolio due to the aforementioned sale of the consumer finance portfolio in October 2025. The year-over-year decrease in the total loans and leases coverage ratio was partially offset by an increase in the ACL related to the commercial finance portfolio.

Activity in the ACL for the periods presented was as follows.
(Unaudited)Three Months EndedSix Months Ended
(Dollars in thousands)March 31, 2026December 31, 2025March 31, 2025March 31, 2026March 31, 2025
Beginning balance$58,840 $53,319 $74,337 $53,319 $71,765 
Provision (reversal of) - tax services loans24,476 (1,398)26,178 23,078 27,479 
Provision (reversal of) - all other loans and leases20,800 4,706 8,750 25,506 26,292 
Charge-offs - tax services loans— — — — (741)
Charge-offs - all other loans and leases(16,767)(3,407)(15,001)(20,174)(31,987)
Recoveries - tax services loans9,752 2,459 6,813 12,211 7,041 
Recoveries - all other loans and leases1,178 3,161 1,813 4,339 3,041 
Ending balance$98,279 $58,840 $102,890 $98,279 $102,890 



5

The Company recognized a provision for credit losses of $45.6 million for the quarter ended March 31, 2026, compared to $35.3 million for the comparable period in the prior fiscal year. The year-over-year increase was primarily due to increases in the commercial finance portfolio of $19.0 million, partially offset by decreases in the consumer finance portfolio of $6.9 million and the tax services portfolio of $1.7 million. The Company recognized net charge-offs of $5.8 million for the quarter ended March 31, 2026, compared to net charge-offs of $6.4 million for the quarter ended March 31, 2025. Net charge-offs attributable to the commercial finance portfolio and consumer finance portfolio were $14.5 million and $1.1 million, respectively, while net recoveries of $9.7 million were recognized in the seasonal tax services portfolio. Net charge-offs attributable to the commercial finance portfolio and consumer finance portfolio for the same quarter of the prior year were $6.9 million and $6.3 million, respectively, while net recoveries of $6.8 million were recognized in the tax services portfolio.
The Company's past due loans and leases were as follows for the periods presented.
As of March 31, 2026Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $53,072 $53,072 $— $— $— 
Commercial finance91,137 9,838 88,791 189,766 3,922,811 4,112,577 25,850 91,446 117,296 
Consumer finance985 492 417 1,894 89,018 90,912 417 — 417 
Tax services1,454 — — 1,454 58,737 60,191 — — — 
Warehouse finance— — — — 604,642 604,642 — — — 
Total loans and leases held for investment93,576 10,330 89,208 193,114 4,675,208 4,868,322 26,267 91,446 117,713 
Total loans and leases$93,576 $10,330 $89,208 $193,114 $4,728,280 $4,921,394 $26,267 $91,446 $117,713 

As of December 31, 2025Accruing 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$148 $150 $235 $533 $87,436 $87,969 $235 $— $235 
Commercial finance54,278 22,871 90,103 167,252 3,979,925 4,147,177 11,447 96,781 108,228 
Consumer finance1,383 691 602 2,676 129,369 132,045 602 — 602 
Tax services— — — — 62,049 62,049 — — — 
Warehouse finance— — — — 641,669 641,669 — — — 
Total loans and leases held for investment55,661 23,562 90,705 169,928 4,813,012 4,982,940 12,049 96,781 108,830 
Total loans and leases$55,809 $23,712 $90,940 $170,461 $4,900,448 $5,070,909 $12,284 $96,781 $109,065 
The Company's nonperforming assets at March 31, 2026 were $119.8 million, representing 1.68% of total assets, compared to $111.5 million, or 1.47% of total assets at December 31, 2025 and $41.6 million, or 0.59% of total assets at March 31, 2025.
The increase in the nonperforming assets as a percentage of total assets at March 31, 2026, compared to December 31, 2025, was driven by an increase in nonperforming loans in the commercial finance portfolio. When comparing the current period to the same period of the prior year, the increase was driven by an increase in nonperforming loans in the commercial finance portfolio, partially offset by a decrease in nonperforming loans in the consumer finance portfolio.
6


The Company's nonperforming loans and leases at March 31, 2026, were $117.7 million, representing 2.39% of total gross loans and leases, compared to $109.1 million, or 2.15% of total gross loans and leases at December 31, 2025 and $39.8 million, or 0.88% of total gross loans and leases at March 31, 2025.
Deposits, Borrowings and Other Liabilities
The average balance of total deposits and interest-bearing liabilities was $7.14 billion for the quarter ended March 31, 2026, compared to $7.30 billion for the same period in the prior fiscal year. Total average deposits for the fiscal 2026 second quarter decreased by $160.3 million to $7.02 billion compared to the same period in fiscal 2025. The decrease in average deposits was primarily due to a decrease in noninterest-bearing deposits, partially offset by an increase in wholesale deposits and money market deposits.
Total end-of-period deposits increased 1% to $5.85 billion at March 31, 2026, from $5.82 billion at March 31, 2025. The increase in end-of-period deposits was primarily driven by an increase in money market deposits of $33.0 million and interest bearing checking of $32.9 million, partially offset by a decrease in noninterest-bearing deposits of $24.3 million.
As of March 31, 2026, the Company managed $1.07 billion of customer deposits at other banks in its capacity as custodian, compared to $1.05 billion as of December 31, 2025 and $1.12 billion as of March 31, 2025. These deposits provide the Company with the ability to earn servicing fee income, typically reflective of the EFFR.
Regulatory Capital
The Company and its subsidiary Pathward®, N.A. (the "Bank") remained above the federal regulatory minimum capital requirements at March 31, 2026, and continued to be classified as well-capitalized, and in good standing with the regulatory agencies. Regulatory capital ratios of the Company and the Bank are stated in the table below. The decrease in Tier 1 leverage capital ratio for the period as compared to the sequential quarter is the result of higher quarterly average assets related to the Company's seasonal tax business. The Bank's Tier 1 leverage capital ratio using end-of-period assets of 10.35% better reflects the expected capital position of the Company post-tax season. See non-GAAP reconciliation table below. Regulatory capital is not affected by the unrealized loss on accumulated other comprehensive income (“AOCI”). The securities portfolio is primarily comprised of amortizing securities that should provide consistent cash flow.
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.
As of the Periods Indicated
March 31, 2026(1)
December 31, 2025September 30,
2025		June 30,
2025		March 31,
2025
Company
Tier 1 leverage capital ratio8.62 %9.51 %9.79 %9.78 %8.31 %
Common equity Tier 1 capital ratio12.65 %12.02 %12.70 %12.87 %13.64 %
Tier 1 capital ratio12.89 %12.26 %12.95 %13.12 %13.91 %
Total capital ratio14.52 %13.67 %14.27 %14.76 %15.57 %
Bank
Tier 1 leverage ratio8.85 %9.84 %10.00 %10.00 %8.51 %
Common equity Tier 1 capital ratio13.24 %12.67 %13.23 %13.43 %14.25 %
Tier 1 capital ratio13.24 %12.67 %13.23 %13.43 %14.25 %
Total capital ratio14.49 %13.73 %14.19 %14.68 %15.51 %
(1) March 31, 2026 percentages are preliminary pending completion and filing of the Company's regulatory reports. Regulatory capital ratios for periods presented reflect the Company's election of the five-year CECL transition for regulatory capital purposes.

7

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

(Dollars in thousands)
March 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Total stockholders' equity$850,677 $853,712 $857,454 $818,146 $814,046 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities284,471 284,815 285,158 285,482 285,865 
LESS: Certain other intangible assets17,306 17,746 18,077 17,091 16,363 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards1,207 5,877 5,733 2,669 5,788 
LESS: Net unrealized (losses) on available for sale securities(138,462)(133,516)(143,190)(158,673)(163,206)
LESS: Noncontrolling interest(785)(823)(591)(856)(658)
ADD: Adoption of Accounting Standards Update 2016-13— — 1,788 1,788 1,788 
Common Equity Tier 1(1)
686,940 679,613 694,055 674,221 671,682 
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(382)(437)(307)(513)(381)
Total Tier 1 capital700,219 692,837 707,409 687,369 684,962 
Allowance for credit losses68,278 59,687 52,455 65,960 62,042 
Subordinated debentures, net of issuance costs19,846 19,821 19,796 19,770 19,744 
Total capital$788,343 $772,345 $779,660 $773,099 $766,748 
(1) Capital amounts and ratios are calculated in accordance with Basel III capital rules as implemented by U.S. banking regulators and reflect fully phased-in regulatory requirements applicable to the Company as of the reporting date.
8

Conference Call
The Company will host a conference call and earnings webcast with a corresponding presentation at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, April 22, 2026. The live webcast of the call can be accessed from Pathward’s Investor Relations website at www.pathwardfinancial.com. Telephone participants may access the conference call by dialing 1-833-461-5787 approximately 10 minutes prior to start time and reference meeting ID 222526753.
The quarterly investor presentation prepared for use in connection with the Company's conference call and earnings webcast is available under the Presentations link in the Investor Relations - Events & Presentations section of the Company's website at www.pathwardfinancial.com. A webcast replay will also be archived at www.pathwardfinancial.com for one year.

About Pathward Financial, Inc.
Pathward Financial, Inc. (Nasdaq: CASH) is a U.S.-based financial holding company driven by its purpose to power financial inclusion 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 support to individuals and businesses. Learn more at www.pathwardfinancial.com.

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

9

Forward-Looking Statements
The Company and the Bank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and Exchange Commission ("SEC"), the Company’s reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.
You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” "target," or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results, including our performance expectations and fiscal 2026 financial guidance; our fiscal 2026 goals and strategy; progress on key strategic initiatives; future performance and business prospects, including our Partner Solutions pipeline; our value proposition, including opportunities for revenue growth; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; impacts of our evolved operating model; expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology, including impacts of technology investments. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the Fed Funds rate and changes in international trade policies, tariffs, and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the Bank's ability to maintain its Durbin Amendment exemption; the risks of dealing with or utilizing third parties, including, in connection with the Company’s prepaid card and tax refund advance businesses; the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of the Bank's strategic partners’ refund advance products; our relationship with, and any actions, which may be initiated by our regulators, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by the Bank of its status as a well-capitalized institution; changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase; and the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in Ukraine and the Middle East, government shutdowns, weather-related disasters, or public health events, such as pandemics, and any governmental or societal responses thereto.
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K, as amended, for the Company’s fiscal year ended September 30, 2025, and in the Company's other filings made with the SEC. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason.
10

Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in Thousands, Except Share Data)March 31, 2026December 31, 2025September 30, 2025June 30, 2025March 31, 2025
ASSETS
Cash and cash equivalents$157,602 $331,217 $120,568 $258,343 $254,249 
Securities available for sale, at fair value1,271,353 1,310,047 1,327,843 1,367,340 1,411,520 
Securities held to maturity, at amortized cost28,068 28,662 29,308 30,273 31,335 
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost25,480 24,310 24,708 29,451 24,276 
Loans held for sale53,072 87,969 179,421 49,767 45,767 
Loans and leases4,867,165 4,982,855 4,664,908 4,743,324 4,464,870 
Allowance for credit losses(98,279)(58,840)(53,319)(105,995)(102,890)
Accrued interest receivable36,127 36,174 38,520 39,996 37,081 
Premises, furniture, and equipment, net42,254 42,370 40,632 39,799 39,542 
Rental equipment, net146,190 154,533 159,446 181,370 202,194 
Goodwill and intangible assets308,741 309,712 310,430 311,193 311,992 
Other assets274,626 311,196 329,879 284,983 274,850 
Total assets$7,112,399 $7,560,205 $7,172,344 $7,229,844 $6,994,786 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits5,851,696 6,350,394 5,886,947 6,005,246 5,819,209 
Short-term borrowings26,000 — 9,000 115,000 — 
Long-term borrowings33,508 33,482 33,456 33,431 33,405 
Accrued expenses and other liabilities350,518 322,617 385,487 258,019 328,125 
Total liabilities6,261,722 6,706,493 6,314,890 6,411,696 6,180,739 
STOCKHOLDERS’ EQUITY 
Preferred stock— — — — — 
Common stock, $.01 par value213 222 228 230 235 
Common stock, Nonvoting, $.01 par value— — — — — 
Additional paid-in capital655,128 651,199 648,330 646,044 643,888 
Retained earnings340,744 346,529 359,830 337,321 341,775 
Accumulated other comprehensive loss(141,086)(134,996)(145,461)(159,709)(166,311)
Treasury stock, at cost(3,537)(8,419)(4,882)(4,882)(4,882)
Total equity attributable to parent851,462 854,535 858,045 819,004 814,705 
Noncontrolling interest(785)(823)(591)(856)(658)
Total stockholders’ equity850,677 853,712 857,454 818,148 814,047 
Total liabilities and stockholders’ equity$7,112,399 $7,560,205 $7,172,344 $7,229,844 $6,994,786 


11

Condensed Consolidated Statements of Operations (Unaudited)
 Three Months EndedSix Months Ended
(Dollars in thousands, except per share data)March 31, 2026December 31, 2025March 31, 2025March 31, 2026March 31, 2025
Interest and dividend income:   
Loans and leases, including fees$114,829 $107,775 $119,755 $222,604 $231,604 
Mortgage-backed securities7,590 7,812 8,580 15,402 17,566 
Other investments8,457 5,635 13,669 14,092 21,190 
 130,876 121,222 142,004 252,098 270,360 
Interest expense:  
Deposits4,274 206 4,086 4,480 4,861 
FHLB advances and other borrowings1,478 1,678 1,639 3,156 3,971 
 5,752 1,884 5,725 7,636 8,832 
Net interest income125,124 119,338 136,279 244,462 261,528 
Provision for credit loss45,616 3,230 35,266 48,846 53,927 
Net interest income after provision for credit loss79,508 116,108 101,013 195,616 207,601 
Noninterest income:    
Refund transfer product fees34,789 355 32,663 35,144 33,073 
Refund advance and other tax fee income57,514 131 48,585 57,645 49,110 
Card and deposit fees37,526 30,140 30,793 67,666 59,859 
Rental income10,947 11,620 13,200 22,567 26,908 
(Loss) on sale of securities— — (7,228)— (22,899)
Gain (loss) on divestitures— — (1,360)— 15,044 
Secondary market revenue3,574 4,157 15,378 7,731 19,755 
Gain on sale of other883 488 627 1,371 1,614 
Other income5,947 6,872 5,866 12,819 13,438 
Total noninterest income151,180 53,763 138,524 204,943 195,902 
Noninterest expense:    
Compensation and benefits55,405 51,864 51,905 107,269 101,197 
Refund transfer product expense9,127 73 8,475 9,200 8,583 
Refund advance expense1,425 72 1,265 1,497 1,299 
Card processing33,475 30,437 36,239 63,912 69,552 
Building and software12,201 12,580 10,306 24,781 20,013 
Operating lease equipment depreciation 9,075 9,995 11,779 19,070 23,206 
Legal and consulting5,331 5,554 5,879 10,885 11,103 
Intangible amortization971 718 1,082 1,689 1,894 
Impairment expense— — 1,514 — 1,514 
Other expense16,446 15,920 19,733 32,366 37,612 
Total noninterest expense143,456 127,213 148,177 270,669 275,973 
Income before income tax expense87,232 42,658 91,360 129,890 127,530 
Income tax expense14,171 7,193 16,166 21,364 22,171 
Net income before noncontrolling interest73,061 35,465 75,194 108,526 105,359 
Net income attributable to noncontrolling interest151 299 237 450 436 
Net income attributable to parent$72,910 $35,166 $74,957 $108,076 $104,923 
Less: Allocation of Earnings to participating securities(1)
7049263128402
Net income attributable to common shareholders(1)
72,84035,11774,694107,948104,521
Earnings per common share:  
Basic$3.37 $1.57 $3.16 $4.91 $4.37 
Diluted$3.35 $1.57 $3.14 $4.89 $4.35 
Shares used in computing earnings per common share:
Basic21,612,033 22,312,973 23,657,145 21,965,316 23,941,980 
Diluted21,720,222 22,381,460 23,776,023 22,065,346 24,039,020 
(1) Amounts presented are used in the two-class earnings per common share calculation.
12

Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended March 31,20262025
(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$620,549 $4,886 3.19 %$926,841 $9,088 3.98 %
Mortgage-backed securities1,100,278 7,590 2.80 %1,240,243 8,580 2.81 %
Tax-exempt investment securities104,537 747 3.67 %116,976 797 3.50 %
Asset-backed securities132,041 1,500 4.61 %180,750 2,228 5.00 %
Other investment securities170,063 1,324 3.16 %207,973 1,556 3.03 %
Total investments1,506,919 11,161 3.06 %1,745,942 13,161 3.11 %
Commercial finance4,128,461 81,463 8.00 %3,597,280 73,053 8.24 %
Consumer finance146,499 7,187 19.90 %295,099 19,976 27.45 %
Tax services620,285 12,695 8.30 %557,229 11,913 8.67 %
Warehouse finance631,052 13,484 8.67 %638,747 14,813 9.41 %
Total loans and leases5,526,297 114,829 8.43 %5,088,355 119,755 9.54 %
Total interest-earning assets$7,653,765 $130,876 6.95 %$7,761,138 $142,004 7.43 %
Noninterest-earning assets648,512 611,851 
Total assets$8,302,277 $8,372,989 
Interest-bearing liabilities:
Interest-bearing checking$3,537 $— 0.01 %$2,462 $— 0.04 %
Savings50,501 4 0.03 %53,120 3 0.02 %
Money markets209,841 138 0.27 %179,591 270 0.61 %
Time deposits2,640 6 0.91 %4,213 3 0.25 %
Wholesale deposits431,278 4,126 3.88 %349,706 3,810 4.42 %
Total interest-bearing deposits (a)697,797 4,274 2.48 %589,092 4,086 2.81 %
Overnight fed funds purchased87,836 862 3.98 %88,522 1,003 4.60 %
Subordinated debentures19,830 357 7.30 %19,728 355 7.29 %
Other borrowings13,661 259 7.68 %13,661 281 8.34 %
Total borrowings121,327 1,478 4.94 %121,911 1,639 5.45 %
Total interest-bearing liabilities819,124 5,752 2.85 %711,003 5,725 3.27 %
Noninterest-bearing deposits (b)6,323,247 — — %6,592,216 — — %
Total deposits and interest-bearing liabilities$7,142,371 $5,752 0.33 %$7,303,219 $5,725 0.32 %
Other noninterest-bearing liabilities307,071 294,080 
Total liabilities7,449,442 7,597,299 
Shareholders' equity852,835 775,690 
Total liabilities and shareholders' equity$8,302,277 $8,372,989 
Net interest income and net interest rate spread including noninterest-bearing deposits$125,124 6.62 %$136,279 7.11 %
Net interest margin6.63 %7.12 %
Tax-equivalent effect0.01 %0.01 %
Net interest margin, tax-equivalent(2)
6.64 %7.13 %
Total cost of deposits (a+b)7,021,044 4,274 0.25 %7,181,308 4,086 0.23 %
(1) Tax rate used to arrive at the TEY for the three months ended March 31, 2026 and 2025 was 21%.
(2) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.
13

Selected Financial Information
As of and For the Three Months EndedMarch 31,
2026		December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025
Equity to total assets11.96 %11.29 %11.96 %11.32 %11.64 %
Book value per common share outstanding$39.89 $38.51 $37.65 $35.64 $34.55 
Tangible book value per common share outstanding$25.41 $24.54 $24.02 $22.09 $21.31 
Common shares outstanding21,327,534 22,169,535 22,772,570 22,953,608 23,558,939 
Nonperforming assets to total assets1.68 %1.47 %1.42 %1.03 %0.59 %
Nonperforming loans and leases to total loans and leases2.39 %2.15 %2.05 %1.49 %0.88 %
Net interest margin6.63 %6.95 %7.46 %7.43 %7.12 %
Net interest margin, tax-equivalent6.64 %6.96 %7.47 %7.44 %7.13 %
Return on average assets3.56 %1.87 %2.09 %2.36 %3.63 %
Return on average equity34.67 %16.76 %18.93 %21.19 %39.19 %
Return on average tangible equity54.41 %26.72 %30.65 %34.77 %65.66 %
Full-time equivalent employees1,181 1,170 1,179 1,178 1,155 

Non-GAAP Reconciliations
Net Interest Margin and Cost of DepositsAt and For the Three Months Ended
(Dollars in thousands)March 31, 2026December 31, 2025March 31, 2025
Average interest earning assets$7,653,765 $6,812,693 $7,761,138 
Net interest income$125,124 $119,338 $136,279 
Net interest margin6.63 %6.95 %7.12 %
Average total deposits
$7,021,044 $6,173,866 $7,181,308 
Deposit interest expense$4,274 $206 $4,086 
Cost of deposits0.25 %0.01 %0.23 %
Adjusted Net Interest Margin(1)
Average interest earning assets$7,653,765 $6,812,693 $7,761,138 
Net interest income125,124 119,338 136,279 
Less: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet
23,971 23,013 26,852 
Less: Gross interest income on consumer finance loans
814 905 11,937 
Adjusted net interest income$100,339 $95,420 $97,490 
Adjusted net interest margin5.32 %5.56 %5.09 %
Average total deposits$7,021,044 $6,173,866 $7,181,308 
Deposit interest expense4,274 206 4,086 
Add: Contractual, rate-related processing expense associated with deposits on the Company's balance sheet
23,971 23,013 26,852 
Adjusted deposit expense$28,245 $23,219 $30,938 
Adjusted cost of deposits(2)
1.63 %1.49 %1.75 %
1) Adjusted net interest margin includes contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excludes the gross interest income on consumer finance loans.
2) Adjusted cost of deposits includes contractual, rate-related card processing expense associated with deposits on the Company’s balance sheet.




14


Pathward, N.A. Period-end Tier 1 Leverage
(Dollars in thousands)March 31, 2026
Total stockholders' equity$882,773 
Adjustments:
Less: Goodwill, net of associated deferred tax liabilities284,471 
Less: Certain other intangible assets17,306 
Less: Net deferred tax assets from operating loss and tax credit carry-forwards1,207 
Less: Net unrealized gains (losses) on available for sale securities(138,462)
Less: Noncontrolling interest(785)
Common Equity Tier 1719,036 
Tier 1 minority interest not included in common equity Tier 1 capital— 
Total Tier 1 capital$719,036 
Total Assets (Quarter Average)$8,304,851 
Add: Available for sale securities amortized cost165,767 
Add: Deferred tax(41,027)
Less: Deductions from CET1302,983 
Adjusted total assets$8,126,608 
Pathward, N.A. Regulatory Tier 1 Leverage8.85 %
Total Assets (Period End)$7,113,101 
Add: Available for sale securities amortized cost184,002 
Add: Deferred tax(45,541)
Less: Deductions from CET1302,983 
Adjusted total assets$6,948,579 
Pathward, N.A. Period-end Tier 1 Leverage10.35 %
15
1Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation THE PATHWARD STORY UPDAT ED APR I L 22, 2026

 

2Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 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 performance expectations and fiscal 2026 financial guidance; our fiscal 2026 goals and strategy; progress on key strategic initiatives; future performance and business prospects; our value proposition, including opportunities for revenue growth; expected results of our partnerships; impacts of our improved data analytics, underwriting and monitoring processes; impacts of our evolved operating model; expected nonperforming loan resolutions and net charge-off rates; the performance of our securities portfolio; the impact of card balances related to government stimulus programs; customer retention; loan and other product demand; new products and services; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; and technology, including impacts of technology investments. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward- looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; our ability to successfully implement measures designed to reduce expenses and increase efficiencies; changes in trade, monetary, and fiscal policies and laws, including actual changes in interest rates and the Fed Funds rate, and changes in international trade policies, tariffs and treaties affecting imports and exports, and their related impacts on macroeconomic conditions, customer behavior, funding costs and loan and securities portfolios; changes in tax laws; trade disputes, barriers to trade or the emergence of trade restrictions; the strength of the United States' economy, and the local economies in which the Company operates; adverse developments in the financial services industry generally such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer behavior; inflation, market, and monetary fluctuations; our liquidity and capital positions, including the sufficiency of our liquidity; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by users; the ability of the Company’s subsidiary Pathward®, N.A. (“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, and any related increases in compliance and other costs; changes in financial services laws and regulations, including laws and regulations relating to the tax refund industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by Pathward of its status as a well-capitalized institution, changes in consumer borrowing, spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase; the potential adverse effects of unusual and infrequently occurring events, including the impact on financial markets from geopolitical conflicts such as the military conflicts in Ukraine and the Middle East, government shutdowns, weather-related disasters, or public health events, such as pandemics and any governmental or societal responses thereto; and the other factors described under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company's fiscal year ended September 30, 2025 and in other filings made by the Company with the Securities and Exchange Commission (“SEC”). The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in or referred to in this section. The forward-looking statements included herein speak only as of the date of this investor update. The Company expressly disclaims any intent or obligation to update, revise or clarify any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances or future events or for any other reason.

 

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

 

4Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation BUILDING A DIVERSIFIED COMPANY DEDICATED TO FINANCIAL EMPOWERMENT FOR INDIVIDUALS AND BUSINESSES 1993 Listed on Nasdaq: CASH 2015 / 2016 Entered Tax Services business by acquiring Refund Advantage, SCS, and EPS 2020 Completed sale of Retail Bank division to focus on national banking operations and payments Developed a governance structure that aligns with key sustainability efforts Converted to National Bank Charter 2004 Created Prepaid Card Sponsorship business - now Partner Solutions 2014 Acquired AFS/IBEX, an insurance premium finance company 2018 Acquired Crestmark Bancorp, a commercial lending company Dramatic growth in deposits from Partner Solutions 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 2024 Completed sale of Insurance Premium Finance business line to focus on higher return on asset verticals Note: Timeline and years presented are on a calendar year basis.

 

5Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation RESILIENT BUSINESS MODEL WITH DIVERSIFIED REVENUE Issuing Fee income and stable deposits Acquiring Fee income Digital Payments Fee income Financial Institution Solutions Fee income and stable deposits Credit Solutions Fee income and interest income Professional Tax Solutions Fee income and interest income Working Capital Interest income Equipment Finance Interest income Structured Finance Fee income and interest income Warehouse Finance Fee income and interest income CONSUMER COMMERCIAL & CORPORATE

 

6Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Issuing Acquiring Digital Payments Financial Institution Solutions Credit Solutions Professional Tax Solutions A leading debit and prepaid card issuer sponsoring partner programs Enable partners’ lending solutions to serve diverse credit needs Partner with a network of tax preparers offering a variety of products Partner with financial institutions to offer additional financial services Enable partners to move money quickly, efficiently and at a large scale across multiple payment rails Accepting and processing merchant payments with our partners PARTNER SOLUTIONS COLLABORATES WITH PARTNERS TO INNOVATE

 

7Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 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 to large businesses and rural borrowers with primarily SBA and USDA lending to fund growth, expansion and refinancing Warehouse Finance Asset-backed warehouse lines of credit used to support strategic initiatives PATHWARD LENDS ACROSS VARIOUS SOLUTIONS

 

8Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation RECORD OF STRONG EARNINGS GROWTH AND PROFITABILITY ABOVE BANKING INDUSTRY AVERAGES EXCESS CAPITAL GENERATING BUSINESS ENABLES ONGOING RETURN OF VALUE TO 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 RISK AND COMPLIANCE CAPABILITIES WITH HIGHLY ADVANTAGEOUS NATIONAL BANK CHARTER

 

9Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Earnings Per Common Share RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 Return on Average Assets Total Revenue2 ($ in millions) 1FY22 reflects GAAP and adjusted earnings. FY23-FY26 d isplay GAAP earnings as the net adjustments for the periods are insignificant. See append ix for non- GAAP reconciliations. 2FY22 and FY23 includes $50.0 million and $10.0 million gain on sale of trademarks, respectively. 3Peer data includes commercial insured banks with assets between $3-10 billion. Return on average assets information gathered from the Federal Financial Institutions E xamination Council database. 1 1 2 3 4 5 $797 $840 $449 2022 2023 2024 2025 YTD26 $618 $728 Gain on sale of trademarks $3.56 $2.92 $4.07 $4.35 $4.89 2022 2023 2024 2025 YTD26 $5.09 $5.24 $7.20 $7.87 CAGR +16% 2.05% 2.40% 2.46% 2.75% 1.81% 2022 2023 2024 2025 YTD26 2.13% ROAA inclusive of one-time items Peer average3 44.58% 47.89% 38.75% 40.69% 29.73% 2022 2023 2024 2025 YTD26 35.01% ROATE inclusive of one-time items Return on Average Tangible Equity Fiscal YTD Earnings Remaining Fiscal Year Earnings EPS inclusive of one-time items

 

10Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation TRACK RECORD OF STRONG EARNINGS GROWTH AND RIGHT-SIZED BALANCE SHEET ENABLES ONGOING RETURN OF CAPITAL 1 1 2 3 4 5 $895.8M TOTAL SHARE REPURCHASES 2Q19 TO 2Q26 $42.7M TOTAL DIVIDENDS PAID 2Q19 TO 2Q26

 

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

 

12Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Fiscal Year End Commercial Finance Loan Balances ($ in millions) $113 $92 $140 $158 $207 $324 $368 $414 $474 $591 $665 $858 $1,510 $1,916 $2,308 $2,725 $3,025 $3,727 $3,296 $3,924 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 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 1 2 3 4 5 Pathward Acquires Crestmark Insurance premium finance portfolio moved to held for sale during 4QFY24 2025 0.64% COMMERCIAL FINANCE PORTFOLIO PRODUCES STABLE ANNUAL NET CHARGE-OFF RATES

 

13Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 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. RISK AND COMPLIANCE CAPABILITIES

 

14Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation QUARTERLY INVESTOR UPDATE SE CO ND Q UAR TE R F IS CAL YE AR 2026

 

15Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Net Income $72.9 million in net income; a decrease of 3% compared to Q2 FY 2025 Diluted Earnings Per Share $3.35 in diluted earnings per share; an increase of 7% compared to Q2 FY 2025 Net Interest Margin Net interest margin (“NIM”) of 6.63% compared to 7.12% in prior year. Adjusted NIM1 of 5.32% compared to 5.09% in prior year period. Return Metrics2 FY 2026 six months ended return on average assets (“ROAA”) of 2.75% compared to 2.68% in prior year period; FY 2026 six months return on average tangible equity (“ROATE”) of 40.69% compared to 45.25% in prior year period Q2 FY 2026 HIGHLIGHTS MAINTAINING GUIDANCE RANGE OF $8.55 - $9.05 15 1. Includes contractual, rate-related processing expense associated with deposits on the Company’s balance sheet and excludes the gross interest income on consumer finance loans. See slide 41 for reconciliation to most directly comparable GAAP measure. 2. ROAA and ROATE are annualized for periods presented.

 

16Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation TAX SERVICES PRE-TAX INCOME INCREASED 30% IN THE FIRST SIX MONTHS OF FISCAL 2026 VS 2025 6 MONTHS ENDED MARCH 31, 2026 TOTAL TAX PRODUCT REVENUE GREW 13% REFUND ADVANCE ORIGINATIONS INCREASED MORE THAN $200 MILLION LOSS RATES WERE FAVORABLE TO LAST YEAR

 

17Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Maintain an optimized balance sheet Technology to facilitate evolution and scalability People and culture are important assets Consultative risk and compliance framework Client experience TRUSTED PLATFORM THAT ENABLES OUR PARTNERS TO THRIVE

 

18Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ($ IN MILLIONS) STRATEGY DELIVERING SOLID CORE RESULTS 1. Reflects Q2 2025 interest income of the loans included in the consumer finance portfolio sale in October 2025. Net Interest Income Noninterest Income $8.4 Q2 2025 -$12.0 Sale of Consumer Loans1 -$2.0 Investment Portfolio -$4.2 Cash Interest -$0.8 Credit Solutions -$0.6 Other Commercial Finance Q2 2026 $136.3 $125.1 $11.1 $5.4 $1.3 Q2 2025 -$3.0 Total Gain (Loss) on Sale -$2.2 Rental Income $0.1 Other Income Tax Products Core Card and Deposit Fees Servicing Fees on Custodial Deposits Q2 2026 $138.5 $151.2

 

19Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $75.0 $72.9 Q2 2025 Q2 2026 -3% Net Income Attributable to Parent $3.14 $3.35 Q2 2025 Q2 2026 +7% Earnings per Diluted Share $148.2 $143.5 Q2 2025 Q2 2026 -3% Noninterest Expense ($ IN MILLIONS, EXCEPT PER SHARE DATA) STRATEGY DELIVERING SOLID CORE RESULTS

 

20Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • Modest increase in deposits at March 31, 2026, when compared to the prior year period. • Average Q2 2026 custodial deposits held in custody at program banks of $864 million compared to $606 million during the prior year period. • $1.1 billion of custodial deposits as of March 31, 2026, consistent with the prior year period. DEPOSIT BASE SUPPORTS ASSET GROWTH $5,819.2 $5,851.7 Q2 2025 Q2 2026 +1% DEPOSITS 1 Period ending ($ in millions) 1. Does not include custodial deposits.

 

21Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation TOTAL LOANS AND LEASES INCREASED FROM Q2 2025 • Increase of 9% was driven by commercial finance. • $1.31 billion in loans and leases originations1 during the quarter compared to $902 million in the prior year quarter. • Nonperforming loans and leases of 2.39% at March 31, 2026, compared to 0.88% at March 31, 2025. $4,470.1 $4,868.3 Q2 2025 Q2 2026 9% TOTAL LOANS AND LEASES Period ending ($ in millions) Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 $902.3 $1,101.0 $1,282.9 $1,891.0 $1,311.2 TOTAL LOANS AND LEASES ORIGINATIONS1 Period ending ($ in millions) Equipment Finance Working Capital Structured Finance Consumer Finance 1. Total loan originations excludes certain portfolios such as warehouse finance, tax services, joint ventures, and other commercial finance loans. Includes new loan originations only. Does not include draws, loan and lease renewals, or purchases.

 

22Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $1,065 $840 $450 $185 $158 $33 1. These custodial deposits can be brought back on balance sheet, as needed, as they are immediately callable. ($ in millions) 855,201 1,507,005 Q2 2026 2026 YTD Share RepurchasesLiquidity Sources $2,731 Custodial Deposits1 Cash and Cash Equivalents Unpledged Investment Securities FHLB Borrowing Capacity Fed Discount Window Funds Unsecured Funding and Other Wholesale Funding Options STRONG BALANCE SHEET ALLOWS FOR RETURN OF CAPITAL TO SHAREHOLDERS

 

23Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Q&A

 

24Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • Noninterest income represents 46% of year-to- date total revenue. • Majority of noninterest income fees are generated by the Company’s Partner Solutions business lines. Other major items include leasing rental income and secondary market revenue. • 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 Refund Transfer Product Fees 17% Refund Advance and Other Tax Product Fees 28% Card and Deposit Fees 33% Rental Income 11% Secondary Market Revenue 4% Other Income 7% FYTD 2026 NONINTEREST INCOME BREAKDOWN . Noninterest income 46% Net interest income 54% FYTD 2026 REVENUE BREAKDOWN

 

25Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • During the 2026 fiscal second quarter, approximately 66% 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 March 31, 2026, Pathward also managed $1.1 billion in custodial deposits and earned $7.8 million of recordkeeping servicing fee income during the fiscal second quarter. That income is also typically reflective of the Effective Fed Funds Rate. COST OF DEPOSITS COST OF DEPOSITS 1.63% 2.48% 3.64% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Adjusted Cost of Deposits Cost of Interest Bearing Deposits Quarterly Average Effective Fed Funds Rate Note: Adjusted Cost of Deposits represents cost of total deposits with the additional incorporation of the Company’s noninterest variable card processing expenses impacted by interest rates associated with deposits on the Company’s balance sheet. See appendix for non-GAAP financial measures reconciliation.

 

26Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • Total tax product revenue increased 13% through the six months ended March 31, 2026 compared to the same period of the prior year. • Refund Advance originations of $1.87 billion in the 2026 tax season compared to $1.66 billion in the 2025 tax season. • The decrease in approximate loss rate was due to improved data analytics, underwriting and monitoring. 2026 TAX SEASON UPDATE 1. Approximate loss rate calculated by taking provision for loan & lease losses divided by total refund advance originations. It also includes recoveries from prior tax season. TAX SERVI CES EC ONO MI CS Six Months Ended ($ in millions) March 31, 2025 March 31, 2026 % Change Net interest income (expense) 2.78 2.95 6% Refund Advance product income 49.11 57.64 17% Refund Transfer product income 33.07 35.14 6% Total revenue 84.96 95.73 13% Total expense 9.88 10.70 8% Provision for credit losses 27.48 23.08 (16)% Net income, pre-tax 47.60 61.95 30% Total Refund Advance originations $ 1,664 $ 1,868 12% Approximate loss rate¹ (6 months) 1.66% 1.24% (25)%

 

27Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • As of March 31, 2026, $3.3 billion, or 70% of loans and leases, contained floating or variable interest rates. Of these, $2.3 billion are tied to Fed Funds or Prime, with the remaining tied to either SOFR or the CMT. • Remain focused on smart growth in the Commercial Finance loan portfolio. • 2Q26 NIM decreased compared to prior year period primarily driven by the sale of the consumer finance portfolio in October 2025 that was previously accounted for using a gross accounting methodology, and therefore, recorded at higher yields with offsetting entries not included in net interest income. • $1.3 billion securities portfolio provides cash flow for future commercial finance loan growth. LOAN PORTFOLIO INTEREST RATE SENSITIVITY . 70% 2% 28% Fixed Rate > 1 Year TOTAL LOAN AND LEASE PORTFOLIO PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable NET INTEREST MARGIN AND LOAN YIELDS 6.38% 6.52% 6.73% 6.72% 6.77% 7.26% 7.32% 7.38% 7.12% 7.43% 7.46% 6.95% 6.63% 5.27% 5.07% 4.94% 4.72% 4.73% 5.08% 5.23% 5.25% 5.09% 5.33% 5.43% 5.56% 5.32% 8.90% 8.86% 9.18% 9.10% 9.27% 9.61% 9.64% 9.55% 9.54% 9.33% 9.25% 8.56% 8.43% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 NIM Adjusted NIM Loan Yields 1. Fixed rate loans and leases are shown for contractual periods; 2. Includes contractual, rate-related processing expense associated with deposits on the Company’s balance sheet and excludes the gross interest income on consumer finance loans. See slide 41 for reconciliation to most directly comparable GAAP measure. 2

 

28Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • 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 7.27% Q2 2026 Quarterly Yield1 12% Of Loan Portfolio Business Line Balance Sheet Category 2Q25 1Q26 2Q26 Large ticket Lease financing $131.1 $98.2 $91.2 Term lending 497.1 489.7 473.3 Small ticket Lease financing 1.0 0.1 0.1 Term lending 87.2 49.0 38.7 TOTAL $716.4 $637.0 $603.3 1. Interest income does not include any potential gain(loss) on sale of equipment that was previously on a lease. ($ in millions)

 

29Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • 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 10.94% Q2 2026 Quarterly Yield 18% Of Loan Portfolio Business Line Balance Sheet Category 2Q25 1Q26 2Q26 Working Capital Asset-based lending $542.5 $629.3 $660.2 Factoring 224.5 213.9 213.3 TOTAL $767.0 $843.2 $873.5 ($ in millions)

 

30Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • Funding small to large businesses, including rural borrowers • SBA, USDA, and conventional loans with fixed or variable interest rates • Debt refinance, leveraged acquisitions, and alternative energy project finance • SBA and USDA guarantees can be sold on the secondary market STRUCTURED FINANCE COMMERCIAL FINANCE 7.29% Q2 2026 Quarterly Yield1 52% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q25 1Q26 2Q26 Guaranteed portion of US govt SBA/USDA loans SBA/USDA $445.1 $236.7 $220.5 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 256.6 283.8 316.2 Renewable energy debt financing2 (term lending only) Term lending 879.2 1,600.2 1,630.5 Other Term lending 303.0 367.8 359.4 TOTAL $1,883.9 $2,488.5 $2,526.6 1. Interest income does not include any gain(loss) on sale of loans; 2. Total renewable energy debt financing outstanding was $2.03 billion as of 2Q26. The majority of these balances are in the term lending and SBA/USDA balance sheet categories.

 

31Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • 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 FINANCE 19.90% Q2 2026 Quarterly Yield 2% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q25 1Q26 2Q26 Consumer Consumer finance $246.2 $132.1 $90.9 TOTAL $246.2 $132.1 $90.9 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

 

32Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation • Structured revolving asset-backed warehouse credit facilities used to support Specialty Finance company originations • Pathward as First-Out participant sits in the most risk reduced position benefiting from subordinate tranches below it • Each Credit Facility is primarily secured by consumer and small business receivables (i.e. installment loans, title loans, debt settlement fees, revenue-based financing and lease to own receivables) • Structured Waterfalls protect Pathward in adverse trigger scenarios • Have never had a charge off or loss WAREHOUSE FINANCE 8.67% Q2 2026 Quarterly Yield 12% Of Loan Portfolio ($ in millions) Business Line Balance Sheet Category 2Q25 1Q26 2Q26 Warehouse Warehouse finance $643.1 $641.7 $604.6 TOTAL $643.1 $641.7 $604.6 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

 

33Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1. Distribution by NAICS codes; excludes tax services, consumer finance and certain joint ventures; calculated based on aggregate principal amount of commercial finance loans and leases; includes operating lease rental equipment of $146.2M $1,333 $822 $699 $488 $329 $255 $248 $140 $125 $91 $86 $76 $73 $50 $41 $19 $18 $16 $13 $12 $12 $4 Utilities Finance and Insurance Manufacturing Construction Wholesale Trade Transportation and Warehousing Mining, Quarrying, and Oil and Gas Extraction Other Administrative and Support and Waste Management and Remediation Services Public Administration Professional, Scientific, and Technical Services Real Estate and Rental and Leasing Health Care and Social Assistance Retail Trade Accommodation and Food Services Agriculture, Forestry, Fishing and Hunting Management of Companies and Enterprises Information Other Services (except Public Administration) Arts, Entertainment, and Recreation Nonclassifiable Establishments Educational Services ($ in millions) LOAN AND LEASE CONCENTRATIONS BY INDUSTRY1

 

34Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ASSET/LIABILITY GAP ANALYSIS 1 Fixed rate securities, loans and leases are shown for contractual periods. 2%55% 2% 41% Fixed Rate > 1 Year EARNING ASSET PRICING ATTRIBUTES1 Fixed Rate < 1 Year Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) • Note: Parallel Shock is a 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. • 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% -200 -100 +100 +200 Parallel Shock Alternative Parallel Shock Alternative Ramp 12-MONTH INTEREST RATE SENSITIVITY FROM BASE NET INTEREST INCOME -2,000 0 2,000 4,000 6,000 Month 1-12 Month 13-36 Month 37-60 Month 61-180 V o lu m e ( $ M ) Period Variance Total Assets Total Liabilities INTEREST RATE RISK MANAGEMENT (as of March 31, 2026)

 

35Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation $13.2 $7.5 $16.5 $0.2 $15.6 1.18% 0.65% 1.33% 0.02% 1.29%1.34% 1.13% 1.13% 0.79% 0.82% 2Q25 3Q25 4Q25 1Q26 2Q26 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adj. NCOs / Adj. Average Loans - LTM ADJUSTED NET CHARGE-OFFS (“NCOS”)1 ($ in millions, excludes tax services NCOs and related seasonal average loans) KEY CREDIT METRICS • Annualized adjusted net charge-offs1: – 1.29% of average loans in 2Q26 – 0.82% of average loans over last 12 months • Allowance for credit loss (“ACL”) of $98.3 million as of March 31, 2026. • ACL as a % of total loans and leases was 2.02% for 2Q26, a 28 bps decrease from the prior year. • The increase in NPAs / NPLs compared to the sequential quarter was driven by an increase in nonperforming loans in the commercial finance portfolio. 1. See appendix for non-GAAP financial measures reconciliation. Tax services NCOs and related seasonal average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the tax services business line. $39.8 $71.3 $99.1 $109.1 $117.7 0.88% 1.49% 2.05% 2.15% 2.39% 2Q25 3Q25 4Q25 1Q26 2Q26 Period Ended NPLs NPLs / Total Loans NONPERFORMING ASSETS (“NPAS”) ($ in millions) NONPERFORMING LOANS (“NPLS”) ($ in millions) $41.6 $74.7 $101.7 $111.5 $119.8 0.59% 1.03% 1.42% 1.47% 1.68% 2Q25 3Q25 4Q25 1Q26 2Q26 Period Ended NPAs NPAs / Total Assets The net charge-off activity presented in the graph above includes the gross accounting treatment over certain consumer lending programs, under which consumer lending charge-offs are protected by layers of credit support in the waterfall structure. The benefit of the credit enhancements related to these charge-offs are received and recorded separately in other noninterest expense. ASSET QUALITY

 

36Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation At March 31, 2026¹ Pathward Financial, Inc. Pathward, N.A. Tier 1 Leverage 8.62% 8.85% Common Equity Tier 1 12.65% 13.24% Tier 1 Capital 12.89% 13.24% Total Capital 14.52% 14.49% Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $158 Unpledged Investment Securities $33 FHLB Borrowing Capacity $840 Funds Available through Fed Discount Window $185 Unsecured Funding Providers $450 Custodial Deposit Balances Held at Other Banks $1,065 Total Liquidity $2,731 8.31% 9.78% 9.79% 9.51% 8.62%8.51% 10.00% 10.00% 9.84% 8.85% 2Q25 3Q25 4Q25 1Q26 2Q26 TIER 1 LEVERAGE RATIO 15.57% 14.76% 14.27% 13.67% 14.52% 15.51% 14.68% 14.19% 13.73% 14.49% 2Q25 3Q25 4Q25 1Q26 2Q26 TOTAL CAPITAL RATIO Pathward Financial, Inc. Pathward, N.A. Minimum Requirement to be Well-Capitalized under Prompt Corrective Action Provisions 1. Regulatory capital reflects the Company's election of the five-year CECL transition for regulatory capital purposes. Amounts are preliminary pending completion and filing of the Company's regulatory reports. CAPITAL AND SOURCES OF LIQUIDITY (as of March 31, 2026)

 

37Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation APPENDIX

 

38Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation EFFICIENCY RATIO For the last twelve months ended ($ in thousands) Mar 31, 2025 Jun 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Noninterest expense – GAAP 534,846 548,658 560,067 559,483 554,762 Net interest income 511,794 511,357 511,794 505,882 494,727 Noninterest income 313,783 321,354 328,100 324,485 337,141 Total revenue: GAAP 825,577 832,711 839,894 830,367 831,868 Efficiency ratio, LTM 64.78% 65.89% 66.68% 67.38% 66.69% Efficiency Ratio

 

39Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation NON-GAAP RECONCILIATION 1. Amounts presented are used in the two-class earnings per common share calculation. Adjusted Net Income and Adjusted Earnings Per Share For the year ended ($ in thousands, except share and per share data) 2 02 2 Net income – GAAP a 151,134 Less: Gain on sale of trademarks 50,000 Add: Rebranding expenses 13,148 Add: Separation related expenses 5,109 Add: Income tax effect 8,936 Adjusted net income b 128,327 Less: Allocation of earnings to participating securities1 2,105 Adjusted net income attributable to common shareholders 126,222 Adjusted earnings per common share, diluted $4.32 Average diluted shares 29,232,247 Adjusted Return on Average Assets and Adjusted Return on Average Tangible Equity Average assets c 7,094,028 Return on average assets (a / c) 2.13% Adjusted return on average assets (b / c) 1.81% Average equity d 770,856 Less: Average goodwill and intangible assets 339,179 Average tangible equity e 431,677 Return on average tangible equity (a / e) 35.01% Adjusted return on average tangible equity (b / e) 29.73%

 

40Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation NON-GAAP RECONCILIATION For the quarter ended ($ in thousands) Mar 31, 2025 June 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Net charge-offs (recoveries) 6,375 6,126 46,219 (2,213) 5,837 Less: Tax services net charge-offs (recoveries) (6,813) (1,376) 29,769 2,459 9,752 Adjusted net charge-offs 13,188 7,502 16,450 246 15,589 Quarterly average loans and leases 5,088,356 4,676,244 4,952,436 4,998,057 5,526,297 Less: Quarterly average tax services loans 557,229 43,035 34,740 45,053 620,285 Adjusted quarterly average loans and leases 4,531,127 4,633,209 4,917,696 4,953,004 4,906,012 Annualized NCOs/average loans and leases 0.51% 0.53% 3.70% (0.18%) 0.43% Adjusted annualized NCOs/adjusted average loans and leases1 1.18% 0.65% 1.33% 0.02% 1.29% Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the last twelve months ended ($ in thousands) Mar 31, 2025 June 30, 2025 Sep 30, 2025 Dec 31, 2025 Mar 31, 2026 Net charge-offs 82,811 72,733 74,991 56,507 55,969 Less: Tax services net charge-offs (recoveries) 21,644 20,677 22,093 19,121 16,182 Adjusted net charge-offs 61,167 52,056 52,898 37,386 39,787 Average loans and leases 4,734,898 4,776,636 4,840,354 4,928,773 5,038,259 Less: Average tax services loans 172,572 169,121 167,947 170,014 185,778 Adjusted average loans and leases 4,562,326 4,607,515 4,672,407 4,758,759 4,852,481 NCOs/average loans and leases 1.75% 1.52% 1.55% 1.15% 1.11% Adjusted NCOs/adjusted average loans and leases1 1.34% 1.13% 1.13% 0.79% 0.82% 1. Tax services NCOs and average loans are excluded to adjust for cyclicity of activity related to the overall economics of the Company’s tax services business line.

 

41Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation For the quarter ended ($ in thousands) Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Average interest earning assets 6,719,545 6,328,718 6,727,076 7,035,624 7,638,907 6,804,507 6,928,365 6,736,877 7,761,138 6,602,267 6,803,398 6,812,693 7,653,765 Net interest income 105,673 102,815 114,158 118,927 128,634 122,750 127,514 125,251 136,279 122,313 127,953 119,338 125,124 Less: Contractual, rate-related processing expense associated with deposits on the Company’s balance sheet 14,415 18,358 21,929 25,891 28,024 25,320 24.631 24,241 26,852 23,831 24,346 23,013 23,971 Less: Gross interest income on consumer finance loans 3,933 4,426 8,396 9,566 10,753 11,457 11,823 11,936 11,937 10,717 10,456 905 814 Adjusted net interest income 87,325 80,031 83,833 83,470 89,857 85,973 91,060 89,074 97,490 87,765 93,151 95,420 100,339 Adjusted net interest margin 5.27% 5.07% 4.94% 4.72% 4.73% 5.08% 5.23% 5.25% 5.09% 5.33% 5.43% 5.56% 5.32% Average total deposits 6,386,592 5,895,242 6,204,934 6,558,189 7,168,673 6,260,990 6,199,271 6,081,236 7,181,308 6,002,547 6,185,496 6,173,866 7,021,044 Deposit interest expense 2,096 164 1,954 3,526 6,685 1,689 1,119 775 4,086 287 283 206 4,274 Add: Contractual, rate-related processing expense associated with deposits on the Company’s balance sheet 14,415 18,358 21,929 25,891 28,024 25,320 24,631 24,241 26,852 23,831 24,346 23,013 23,971 Adjusted deposit expense 16,511 18,522 23,883 29,417 34,709 27,009 25,750 25,016 30,938 24,118 24,629 23,219 28,245 Adjusted cost of deposits2 1.05% 1.26% 1.53% 1.78% 1.95% 1.74% 1.65% 1.63% 1.75% 1.61% 1.58% 1.49% 1.63% NON-GAAP RECONCILIATION 1 Adjusted net interest margin includes contractual, rate-related processing expense associated with deposits on the Company's balance sheet and excludes the gross interest income on consumer finance loans. 2. Adjusted cost of deposits includes contractual, rate-related card processing expense associated with deposits on the Company’s balance sheet. For the quarter ended ($ in thousands) Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Average interest earning assets 6,719,545 6,328,718 6,727,076 7,035,624 7,638,907 6,804,507 6,928,365 6,736,877 7,761,138 6,602,267 6,803,398 6,812,693 7,653,765 Net interest income 105,673 102,815 114,158 118,927 128,634 122,750 127,514 125,251 136,279 122,313 127,953 119,338 125,124 Net interest margin 6.38% 6.52% 6.73% 6.72% 6.77% 7.26% 7.32% 7.38% 7.12% 7.43% 7.46% 6.95% 6.63% Average total deposits 6,386,592 5,895,242 6,204,934 6,558,189 7,168,673 6,260,990 6,199,271 6,081,236 7,181,308 6,002,547 6,185,496 6,173,866 7,021,044 Deposit interest expense 2,096 164 1,954 3,526 6,685 1,689 1,119 775 4,086 287 283 206 4,274 Cost of deposits 0.13% 0.01% 0.12% 0.21% 0.38% 0.11% 0.07% 0.05% 0.23% 0.02% 0.02% 0.01% 0.25% Net Interest Margin and Cost of Deposits Adjusted Net Interest Margin1

 

42Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Industry Terms Types of Payment Cards Banking-as-a-Service (BaaS): Providing financial services and solutions to third parties to offer through their distribution channels. Debit Card: A type of payment card typically tied to funds held in a deposit account. Credit Card: A type of payment card typically attached to a line of credit that a user can make purchases against. Prepaid Card: A type of payment card that holds a finite amount of funds and is not directly tied to a bank account or line of credit. Virtual Card: A digital counterpart to a payment card, generated with a unique card number to settle a particular transaction by an authorized user. These are often used for one-time, business-to-business payments. Payment Players Acquiring Bank: An acquiring bank provides merchant accounts that allow a business to accept card payments and works in conjunction with the acquirer processor. In some cases, the acquiring bank and acquirer processor are a single entity. Acquiring Processors: Acquiring processors connect directly with merchants, the network and the acquiring bank, or via a payment gateway, to facilitate payment acceptance at the merchant. They provide the technical capabilit ies 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 fil ls three primary roles in payment processing: it is a “network sponsor,” which means it can issue cards on a given payments network; it is a holder of funds (for example, for gift cards, deposit accounts and other non-credit cards); and it is a “settlement point,” managing a consumer’s account and paying out to the merchant’s account after a purchase. Issuing Processor: Connects directly with the networks and issuing bank to provide the system of record, authorize transactions and communicate with settlement entities. Fintech: Fintech refers to the integration of technology into offerings by financial services companies in order to improve use and delivery to consumers. Merchant: A merchant simply refers to any business that accepts card-based payments either via a physical swipe (at the point-of-sale) or virtually online. Program Manager: Businesses that manage various elements of a card program on behalf of the issuing bank. The Program Manager is responsible for defining the program, operating the program, and managing its profitability. The program manager typically is responsible for establishing relationships with processors, banks, payment networks, and distributors and for establishing account(s) at banks. DEFINITIONS Commercial Lending Terms Asset-Based Lending: Asset-Based Lending (ABL) refers to business loans that are secured based on assets as collateral, generally accounts receivable, inventory, equipment or other balance sheet assets. Accounts Receivable: Accounts Receivable (A/R) financing refers to financing based on the value of a company’s accounts receivable (their invoices for goods or services) to another company. It is a subset of asset-based lending and is also known as factoring. Equipment Financing: Equipment Financing refers to a loan used to purchase business equipment. The financing is provided through leases such as $1 Buyout, Fair Market Value (FMV), or through term loans. Leases may appear in Loans & Leases or Rental Equipment. Factoring: Factoring refers to financing based on the purchase of a company’s accounts receivables, their invoices for goods or services. It is a subset of asset-based lending and is also known as accounts receivable financing. Government Guaranteed Lending: A government guaranteed loan is a loan guaranteed by a government agency and financed through a lending financial entity. Government guaranteed loans include SBA loans and USDA loans. SBA Loan: An SBA loan refers to financing that is guaranteed by the Small Business Administration (SBA) and provided by a lending financial institution. SBA loans, such as an SBA 7(a) loan, may be easier for a small business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity. Term Loan: A Term loan is a loan for a specific amount that has a specified interest rate and regular payment schedule to be repaid over a set period of time. USDA Loan: A USDA loan refers to financing guaranteed by the U.S. Department of Agriculture (USDA) as part of the Rural Development program and provided by a lending financial institution. USDA business loans, such as the USDA Business & Industry (B & I) loan, may be easier for a business to obtain because of the reduced risk for the lender. Lenders must meet sufficient requirements to be eligible as a lending entity.

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Pathward Financial (CASH) perform in Q2 fiscal 2026?

Pathward Financial reported Q2 fiscal 2026 net income of $72.9 million, down 3% year over year. Diluted EPS rose to $3.35 from $3.14 as the share count fell. Total revenue reached $276.3 million, supported by strong fee income from tax and payments businesses.

What were Pathward Financial’s key revenue drivers in Q2 2026?

Q2 2026 total revenue of $276.3 million was driven by noninterest income of $151.2 million, up 9%. Growth came mainly from card and deposit fees, refund advance and other tax fee income, and refund transfer product fees, partially offset by lower secondary market revenue and rental income.

How did Pathward Financial’s tax services business perform in early 2026?

For the six months ended March 31, 2026, tax services product revenue was $95.7 million, a 13% increase. Refund advance originations grew to $1.87 billion from $1.66 billion, total tax product income before tax rose 30% to $62.0 million, and approximate loss rates improved versus the prior year.

What happened to Pathward Financial’s net interest margin in Q2 2026?

Net interest margin in Q2 2026 was 6.63%, down from 7.12% a year earlier. The company cited the October 2025 sale of a consumer finance portfolio previously recorded at higher yields. On an adjusted basis, net interest margin was 5.32% compared with 5.09% in the prior‑year quarter.

Did Pathward Financial repurchase shares in Q2 fiscal 2026?

Yes. During Q2 fiscal 2026, Pathward Financial repurchased 855,201 common shares at an average price of $84.15. As of March 31, 2026, the company still had 3,430,811 shares available for repurchase under its existing share repurchase program.

What is Pathward Financial’s capital position as of March 31, 2026?

As of March 31, 2026, Pathward Financial reported a holding company Tier 1 leverage ratio of 8.62% and total capital ratio of 14.52%. Its bank subsidiary, Pathward, N.A., had a Tier 1 leverage ratio of 8.85% and total capital ratio of 14.49%, remaining well‑capitalized under regulatory standards.

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