EARNINGS PER COMMON SHARE ("EPS")

12 Months Ended

Sep. 30, 2024

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

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


	Fiscal Year Ended September 30,
(Dollars in thousands, except per share data)	2024		2023		2022
Basic income per common share:
Net income attributable to Pathward Financial, Inc.	$	168,357	$	163,615	$	156,386
Dividends and undistributed earnings allocated to participating securities	(1,542)		(2,453)		(2,565)
Basic net earnings available to common stockholders	166,815		161,162		153,821
Undistributed earnings allocated to nonvested restricted stockholders	1,495		2,372		2,468
Reallocation of undistributed earnings to nonvested restricted stockholders	(1,493)		(2,364)		(2,468)


Diluted net earnings available to common stockholders	$	166,817	$	161,170	$	153,821

Total weighted-average basic common shares outstanding	25,169,937		26,833,079		29,227,071
Effect of dilutive securities(1)

Performance share units	31,813		92,527		5,176

Total effect of dilutive securities	31,813		92,527		5,176
Total weighted-average diluted common shares outstanding	25,201,750		26,925,606		29,232,247

Net earnings per common share:
Basic earnings per common share	$	6.63	$	6.01	$	5.26
Diluted earnings per common share(2)	$	6.62	$	5.99	$	5.26

(1) Represents the effect of the assumed exercise of stock options and vesting of performance share units and restricted stock, as applicable, utilizing the treasury stock method.

(2) Excluded from the computation of diluted earnings per share for the fiscal years ended September 30, 2024, 2023, and 2022, respectively, were 232,601, 408,477, and 487,476 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.