PARENT COMPANY FINANCIAL STATEMENTS

12 Months Ended

Sep. 30, 2024

Condensed Financial Information Disclosure [Abstract]

Presented below are the condensed financial statements for the parent company, Pathward Financial, Inc.


Condensed Statements of Financial Condition
(Dollars in thousands)	September 30, 2024		September 30, 2023
ASSETS
Cash and cash equivalents	$	1,898	$	1,399
Securities held to maturity, at amortized cost	10,896		9,220
Investment in subsidiaries	865,843		678,572
Other assets	2,263		1,312
Total assets	$	880,900	$	690,503

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Long-term borrowings	$	33,354	$	33,252
Other liabilities	7,941		6,626
Total liabilities	41,295		39,878

STOCKHOLDERS' EQUITY
Common stock	248		262
Additional paid-in capital	638,803		628,500
Retained earnings	354,474		278,655
Accumulated other comprehensive loss	(153,394)		(255,443)
Treasury stock, at cost	(249)		(344)
Total equity attributable to parent	839,882		651,630
Noncontrolling interest	(277)		(1,005)
Total stockholders' equity	839,605		650,625
Total liabilities and stockholders' equity	$	880,900	$	690,503


Condensed Statements of Operations
	Fiscal Year Ended September 30,
(Dollars in thousands)	2024		2023		2022
Interest expense	$	2,667	$	2,538	$	3,982
Other expense	3,297		1,409		1,062
Total expense	5,964		3,947		5,044

Loss before income taxes and equity in undistributed net income of subsidiaries	(5,964)		(3,947)		(5,044)

Income tax benefit	(1,147)		(967)		(1,029)

Loss before equity in undistributed net income of subsidiaries	(4,817)		(2,980)		(4,015)

Equity in undistributed net income of subsidiaries	172,017		166,738		159,652
Other income	1,157		(143)		749
Total income	173,174		166,595		160,401

Net income attributable to parent	$	168,357	$	163,615	$	156,386


Condensed Statements of Cash Flows
	Fiscal Year Ended September 30,
(Dollars in thousands)	2024		2023		2022
Cash flows from operating activities:
Net income attributable to parent	$	168,357	$	163,615	$	156,386
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	102		102		1,020
Equity in undistributed net income of subsidiaries	(172,017)		(166,738)		(159,652)

Net change in accrued interest receivable	46		(30)		(15)
Net change in other assets	(997)		(354)		(636)
Net change in accrued expenses and other liabilities	1,315		(1,793)		3,163
Cash dividend received	87,000		110,000		229,200

Stock compensation	10,287		11,070		10,004
Net cash provided by operating activities	94,093		115,872		239,470

Cash flows from investing activities:




Alternative investments	(1,676)		(1,217)		(3,380)
Net cash (used in) investing activities	(1,676)		(1,217)		(3,380)

Cash flows from financing activities:


Redemption of long-term borrowings	—		—		(75,000)
Payment of debt issuance costs	—		(511)		—
Proceeds from long-term borrowings	—		—		20,000
Dividends paid on common stock	(5,067)		(5,426)		(5,921)

Issuance of common stock due to restricted stock	2		1		1
Issuance of common stock due to ESOP	—		—		2,886
Repurchases of common stock	(86,853)		(120,437)		(168,235)
Net cash (used in) financing activities	(91,918)		(126,373)		(226,269)

Net change in cash and cash equivalents	499		(11,718)		9,821

Cash and cash equivalents at beginning of fiscal year	1,399		13,117		3,296
Cash and cash equivalents at end of fiscal year	$	1,898	$	1,399	$	13,117

The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company.