SIOUX FALLS, S.D.--(BUSINESS WIRE)--Pathward Financial, Inc. ("Pathward Financial†or the "Company†) (Nasdaq: CASH) today announced it will release financial results for the fourth quarter and fiscal year 2025 on Tuesday, October 21, 2025, after market close. The Company will also 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 the same day to discuss these results. The live webcast of the call can be accessed f. ...

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets made an exceptional recovery from steep declines in April with solid performances in May and June. The strategy modestly underperformed the Russell 2000 Growth Index in the quarter, as the market rally was driven by lower market capitalization, lower-quality non-earners, and a retail volume surge favor ...

Core Points - Argent Trust Company, as Trustee of the Sabine Royalty Trust, declared a cash distribution of $0.368910 per unit, payable on October 29, 2025, to unit holders of record on October 15, 2025 [1] - The distribution is primarily based on oil production for July 2025 and gas production for June 2025, with preliminary production volumes of approximately 48,527 barrels of oil and 1,111,528 Mcf of gas [2] - This month's distribution is lower than the previous month due to a decrease in oil and natural gas production and a decrease in oil pricing, partially offset by an increase in natural gas pricing [3] Production and Pricing Summary - Current month production volumes: 48,527 barrels of oil and 1,111,528 Mcf of gas, with average prices of $65.48 per barrel of oil and $2.62 per Mcf of gas [3] - Prior month production volumes: 97,403 barrels of oil and 1,181,086 Mcf of gas, with average prices of $68.79 per barrel of oil and $2.40 per Mcf of gas [3] - The decrease in production and pricing reflects the timing of cash receipts, as sales volumes and pricing may fluctuate from month to month [3][4] Revenue Posting Information - Revenues are distributed only after they are received, verified, and posted, with most energy companies issuing royalty payments around the 25th of each month [4] - Approximately $423,000 of revenue received in September will be posted in October, in addition to normal cash receipts for that month [5] - As of the date of the press release, approximately $109,000 in revenue has already been received [5]

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Core Insights - Italy successfully awarded all 10 gigawatt hours of capacity in its first battery storage auction, indicating strong interest and demand in the energy storage sector [1] - The average price achieved in the auction was significantly below the cap set by the regulator, suggesting competitive pricing and potential cost efficiencies in battery storage solutions [1] Industry Summary - The auction results reflect a growing trend in the energy sector towards battery storage as a critical component for grid stability and renewable energy integration [1] - The successful allocation of capacity in this auction may encourage further investments in battery storage technologies and infrastructure across Europe [1]

Core Viewpoint - Argent Trust Company, as Trustee of the Permian Basin Royalty Trust, declared a cash distribution of $0.115493 per unit, payable on October 15, 2025, which includes a settlement payment from Blackbeard Operating, LLC, but excludes proceeds from the Waddell Ranch properties due to excess production costs [1][2][10]. Distribution Details - The cash distribution increased from the previous month primarily due to the first settlement payment from Blackbeard Operating LLC, alongside higher natural gas volumes and oil prices from Texas Royalty Properties, despite lower oil volumes and natural gas pricing [2][8]. - The total distribution amount is $5,383,005, distributed among 46,608,796 units outstanding [8]. Waddell Ranch Properties - No proceeds were received from the Waddell Ranch properties for August 2025, leading to a continuing excess cost position that must be recovered before any future distributions can occur [4][10]. - Blackbeard provides production, pricing, and cost information quarterly, which will be disclosed in the Trust's quarterly and annual reports [4][7]. Texas Royalty Properties - Production for Texas Royalty Properties was 15,856 barrels of oil and 12,275 Mcf of gas, with the Trust's allocated portion being 13,944 barrels of oil and 10,800 Mcf of gas [5][6]. - The average price for oil was $65.76 per barrel and for gas was $6.65 per Mcf, resulting in revenues of $1,124,318 after deducting taxes and expenses [5][6]. Settlement with Blackbeard - The settlement agreement with Blackbeard includes a total payment of $9 million, with $4.5 million already paid and the remainder to be paid in quarterly installments of $1,125,000 during 2026 [11][12]. - The agreement also establishes overhead rates and allows Blackbeard to pass through certain charges, while the Trust retains the option for annual site audits [12]. Market Conditions - Worldwide market conditions continue to impact pricing for domestic production, making it challenging to predict future distributions [9].

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's condensed consolidated financial statements, notes, and management's discussion [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This item presents the company's condensed consolidated financial statements [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased by **7.14% to $6.99 billion**, primarily due to reduced securities and loans held for sale | Metric | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | Change (in thousands) | % Change | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :--------- | | Total assets | $6,994,786 | $7,532,017 | $(537,231) | -7.13% | | Cash and cash equivalents | $254,249 | $158,337 | $95,912 | 60.58% | | Securities available for sale | $1,411,520 | $1,741,221 | $(329,701) | -18.93% | | Loans held for sale | $45,767 | $691,688 | $(645,921) | -93.38% | | Loans and leases | $4,464,870 | $4,075,195 | $389,675 | 9.56% | | Total liabilities | $6,180,739 | $6,709,828 | $(529,089) | -7.88% | | Deposits | $5,819,209 | $5,875,085 | $(55,876) | -0.95% | | Short-term borrowings | $— | $377,000 | $(377,000) | -100.00% | | Total stockholders' equity | $814,047 | $822,189 | $(8,142) | -0.99% | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income attributable to the parent increased by **7.21%**, driven by higher net interest and noninterest income | Metric (in thousands, except EPS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Net interest income | $136,279 | $128,634 | $7,645 | 5.94% | | Provision for credit loss | $35,266 | $29,744 | $5,522 | 18.57% | | Total noninterest income | $138,524 | $128,945 | $9,579 | 7.43% | | Total noninterest expense | $148,177 | $140,742 | $7,435 | 5.28% | | Net income attributable to parent | $74,957 | $69,918 | $5,039 | 7.21% | | Basic EPS | $3.16 | $2.74 | $0.42 | 15.33% | | Diluted EPS | $3.14 | $2.74 | $0.40 | 14.60% | | Metric (in thousands, except EPS) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Net interest income | $261,528 | $247,561 | $13,967 | 5.64% | | Provision for credit loss | $53,927 | $37,502 | $16,425 | 43.80% | | Total noninterest income | $195,902 | $181,706 | $14,196 | 7.81% | | Total noninterest expense | $275,973 | $261,819 | $14,154 | 5.41% | | Net income attributable to parent | $104,923 | $104,817 | $106 | 0.10% | | Basic EPS | $4.37 | $4.07 | $0.30 | 7.37% | | Diluted EPS | $4.35 | $4.07 | $0.28 | 6.88% | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income attributable to the parent significantly increased to **$99.6 million** | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :------------------------------------------ | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Net income before noncontrolling interest | $75,194 | $70,167 | $5,027 | 7.17% | | Change in net unrealized gain (loss) on debt securities | $25,517 | $(23,414) | $48,931 | -208.90% | | Total other comprehensive income (loss) | $24,606 | $(18,137) | $42,743 | -235.67% | | Comprehensive income attributable to parent | $99,563 | $51,781 | $47,782 | 92.28% | | Metric (in thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :------------------------------------------ | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Net income before noncontrolling interest | $105,359 | $105,323 | $36 | 0.03% | | Change in net unrealized gain (loss) on debt securities | $(36,823) | $65,121 | $(101,944) | -156.54% | | Total other comprehensive income (loss) | $(12,917) | $48,873 | $(61,790) | -126.43% | | Comprehensive income attributable to parent | $92,006 | $153,690 | $(61,684) | -40.13% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity slightly decreased due to common stock repurchases and increased comprehensive loss | Metric (in thousands) | Balance, September 30, 2024 (As Restated) | Balance, March 31, 2025 | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------- | :-------------------- | :--------- | | Total stockholders' equity | $822,189 | $814,047 | $(8,142) | -0.99% | | Cash dividends declared | N/A | $(2,392) | N/A | N/A | | Repurchases of common stock | N/A | $(102,447) | N/A | N/A | | Stock compensation | N/A | $5,072 | N/A | N/A | | Total other comprehensive loss | N/A | $(12,917) | N/A | N/A | | Net income | N/A | $104,923 | N/A | N/A | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Company saw a net increase in cash and cash equivalents, driven by investing activities | Metric (in thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :------------------------------------ | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Net cash provided by operating activities | $116,593 | $232,510 | $(115,917) | -49.85% | | Net cash provided by investing activities | $507,816 | $1,995 | $505,821 | 25354.44% | | Net cash used in financing activities | $(526,458) | $(262,236) | $(264,222) | 100.76% | | Net change in cash and cash equivalents | $95,912 | $(27,692) | $123,604 | -446.35% | | Cash and cash equivalents at end of period | $254,249 | $347,888 | $(93,639) | -26.92% | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on accounting policies, divestitures, securities, and loans [NOTE 1. BASIS OF PRESENTATION](index=11&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) Interim financial statements adhere to U.S. GAAP and SEC rules, with reclassifications not affecting net income - Interim financial statements prepared under U.S. GAAP and SEC rules, with all necessary adjustments[27](index=27&type=chunk) - Reclassification of "Gain (Loss) on Sale of Loans and Leases" to "Secondary Market Revenue" for interim period ending March 31, 2025, with no impact on previously reported net income or financial condition[28](index=28&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")](index=11&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES%20AND%20RECENTLY%20ADOPTED%20ACCOUNTING%20STANDARDS%20UPDATES%20(%22ASU%22)) Significant accounting policies are largely unchanged, with ASU 2023-07 effective and other ASUs pending - ASU 2023-07 (Segment Reporting) effective October 1, 2024, improves reportable segment disclosures but does not impact consolidated financial statements[29](index=29&type=chunk) - ASU 2023-09 (Income Taxes) effective October 1, 2025, requires enhanced income tax disclosures[31](index=31&type=chunk) - ASU 2024-03 (Expense Disaggregation) effective October 1, 2027, requires specified expense disaggregation disclosures[32](index=32&type=chunk)[33](index=33&type=chunk) [NOTE 3. DIVESTITURES](index=12&type=section&id=NOTE%203.%20DIVESTITURES) The Company completed the sale of its commercial insurance premium finance business, recognizing a **$15.0 million** pre-tax gain - Completed sale of commercial insurance premium finance business on October 31, 2024[34](index=34&type=chunk) | Metric (in thousands) | Value | | :-------------------- | :---- | | Purchase price | $611,513 | | Premium on transaction | $31,200 | | Gain on divestitures | $15,044 | - Settlement adjustments during Q2 fiscal 2025 resulted in a **$1.4 million** decrease in the previously recognized gain[34](index=34&type=chunk) [NOTE 4. SECURITIES](index=13&type=section&id=NOTE%204.%20SECURITIES) The fair value of debt securities AFS decreased to **$1.41 billion**, driven by **$217.9 million** in sales | Security Type | March 31, 2025 (Fair Value, in thousands) | September 30, 2024 (Fair Value, in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | :-------------------- | :--------- | | Total debt securities AFS | $1,411,520 | $1,741,221 | $(329,701) | -18.93% | | Total debt securities HTM | $26,492 | $30,236 | $(3,744) | -12.38% | | Gross Unrealized Losses (AFS) | $(217,398) | $(203,542) | $(13,856) | 6.81% | - Decrease in AFS securities driven by **$217.9 million** in sales to offset gains from divestitures and reposition the portfolio[37](index=37&type=chunk) - Management assessed all unrealized losses on AFS securities as due to adverse market conditions/interest rates, not credit loss, and does not intend to sell prior to recovery of amortized cost[37](index=37&type=chunk) [NOTE 5. LOANS AND LEASES, NET](index=16&type=section&id=NOTE%205.%20LOANS%20AND%20LEASES,%20NET) Total gross loans and leases increased by **9.56% to $4.46 billion**, with ACL increasing to **$102.9 million** | Loan Category (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :--------------------------- | :------------- | :----------------- | :-------------------- | :--------- | | Total gross loans and leases | $4,464,870 | $4,075,195 | $389,675 | 9.56% | | Commercial finance | $3,524,755 | $3,295,599 | $229,156 | 6.95% | | Consumer finance | $246,202 | $248,800 | $(2,598) | -1.04% | | Tax services | $55,973 | $8,825 | $47,148 | 534.26% | | Warehouse finance | $643,124 | $517,847 | $125,277 | 24.19% | | Allowance for credit losses | $(102,890) | $(71,765) | $(31,125) | 43.37% | | ACL Activity (in thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :-------------------------- | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Provision for credit losses | $53,771 | $37,031 | $16,740 | 45.21% | | Charge-offs | $(32,728) | $(31,186) | $(1,542) | 4.95% | | Recoveries | $10,082 | $8,582 | $1,500 | 17.48% | - Nonaccrual loans and leases increased to **$36.0 million** at March 31, 2025, from **$26.4 million** at September 30, 2024, primarily in commercial finance[71](index=71&type=chunk) [NOTE 6. EARNINGS PER COMMON SHARE ("EPS")](index=27&type=section&id=NOTE%206.%20EARNINGS%20PER%20COMMON%20SHARE%20(%22EPS%22)) Basic EPS for the three months ended March 31, 2025, was **$3.16**, with diluted EPS at **$3.14** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (As Restated) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | | :------------------------------------ | :-------------------------------- | :---------------------------------------------- | :-------------------------------- | :---------------------------------------------- | | Basic earnings per common share | $3.16 | $2.74 | $4.37 | $4.07 | | Diluted earnings per common share | $3.14 | $2.74 | $4.35 | $4.07 | | Total weighted-average basic common shares outstanding | 23,657,145 | 25,281,743 | 23,941,980 | 25,529,186 | | Total weighted-average diluted common shares outstanding | 23,776,023 | 25,311,144 | 24,039,020 | 25,555,656 | - Diluted EPS reflects the two-class method, as it was more dilutive than the treasury stock method[76](index=76&type=chunk) [NOTE 7. RENTAL EQUIPMENT, NET](index=28&type=section&id=NOTE%207.%20RENTAL%20EQUIPMENT,%20NET) Net book value of rental equipment slightly decreased to **$202.2 million** | Metric (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :-------------------- | :------------- | :----------------- | :-------------------- | :--------- | | Net book value | $202,194 | $205,339 | $(3,145) | -1.53% | | Future Minimum Lease Payments (in thousands) | Amount | | :------------------------------------------- | :----- | | Remaining in 2025 | $21,322 | | 2026 | $36,044 | | 2027 | $27,855 | | 2028 | $19,116 | | 2029 | $12,939 | | Thereafter | $6,769 | | Total | $123,965 | [NOTE 8. GOODWILL AND INTANGIBLE ASSETS](index=29&type=section&id=NOTE%208.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Total goodwill decreased to **$297.9 million** due to **$11.6 million** derecognition | Metric (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :-------------------- | :------------- | :----------------- | :-------------------- | :--------- | | Total goodwill | $297,928 | $309,505 | $(11,577) | -3.74% | - Goodwill derecognition of **$11.6 million** due to the sale of the commercial insurance premium finance business[80](index=80&type=chunk)[81](index=81&type=chunk) | Intangible Asset (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :------------------------------ | :------------- | :----------------- | :-------------------- | :--------- | | Total Intangible Assets | $14,064 | $16,589 | $(2,525) | -15.22% | [NOTE 9. OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES](index=30&type=section&id=NOTE%209.%20OPERATING%20LEASE%20RIGHT-OF-USE%20ASSETS%20AND%20LIABILITIES) Operating lease ROU assets and liabilities decreased, with a **$0.5 million** gain on remeasurement | Metric (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :-------------------- | :------------- | :----------------- | :-------------------- | :--------- | | Operating lease ROU assets | $24,100 | $24,400 | $(300) | -1.23% | | Operating lease liabilities | $25,200 | $26,000 | $(800) | -3.08% | - Derecognition of lease ROU assets and liabilities from the commercial insurance premium finance business sale resulted in a **$0.5 million** gain on remeasurement[85](index=85&type=chunk) - Weighted-average remaining lease term for operating leases is **8.41 years** at March 31, 2025[86](index=86&type=chunk) [NOTE 10. STOCKHOLDERS' EQUITY](index=31&type=section&id=NOTE%2010.%20STOCKHOLDERS'%20EQUITY) The Company repurchased **1,277,664** common shares, with **5,722,336** remaining available - Repurchased **1,277,664** shares of common stock during the six months ended March 31, 2025, under share repurchase programs[87](index=87&type=chunk) - **5,722,336** shares of common stock remained available for repurchase as of March 31, 2025[88](index=88&type=chunk) - Repurchased **66,446** shares for employee tax withholding obligations during the six months ended March 31, 2025[89](index=89&type=chunk) [NOTE 11. STOCK COMPENSATION](index=32&type=section&id=NOTE%2011.%20STOCK%20COMPENSATION) The Company granted various stock awards and PSUs, with **$11.7 million** in unrecognized compensation | Award Type | Granted (Six Months Ended March 31, 2025) | Nonvested Outstanding (March 31, 2025) | | :-------------------- | :---------------------------------------- | :------------------------------------- | | Restricted Stock Awards | 15,600 | 83,546 | | Restricted Stock Units | 86,200 | 85,628 | | PSUs | 34,208 | 142,366 | - Unrecognized stock-based compensation expense of **$11.7 million** as of March 31, 2025, with a weighted average remaining recognition period of **1.78 years**[97](index=97&type=chunk) [NOTE 12. INCOME TAXES](index=33&type=section&id=NOTE%2012.%20INCOME%20TAXES) Income tax expense was **$22.2 million**, with an effective tax rate of **17.38%** | Metric (in thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :-------------------- | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Income tax expense | $22,171 | $24,623 | $(2,452) | -9.96% | | Effective tax rate | 17.38% | 18.95% | -1.57% | -8.28% | - The lower effective tax rate is primarily due to the effect of investment tax credits during fiscal year 2025[98](index=98&type=chunk) [NOTE 13. REVENUE FROM CONTRACTS WITH CUSTOMERS](index=35&type=section&id=NOTE%2013.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Total revenue increased by **6.56% to $457.4 million**, driven by refund transfer product fees | Revenue Category (in thousands) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 (As Restated) | Change (in thousands) | % Change | | :------------------------------ | :-------------------------------- | :---------------------------------------------- | :-------------------- | :--------- | | Total Revenue | $457,430 | $429,267 | $28,163 | 6.56% | | Refund transfer product fees | $33,073 | $29,364 | $3,709 | 12.63% | | Refund advance and other tax fee income | $49,110 | $43,311 | $5,799 | 13.39% | | Card and deposit fees | $59,859 | $66,094 | $(6,235) | -9.43% | - Refund transfer fees are recognized immediately after the taxpayer's refund is disbursed[103](index=103&type=chunk) - Card and deposit fees are recognized as transactions occur or as services are performed[104](index=104&type=chunk)[105](index=105&type=chunk) [NOTE 14. SEGMENT REPORTING](index=36&type=section&id=NOTE%2014.%20SEGMENT%20REPORTING) The Company reports across Consumer, Commercial, and Corporate Services/Other segments - Company operates through three reportable segments: Consumer (Partner Solutions), Commercial (Commercial Finance), and Corporate Services/Other (shared services, treasury, investment portfolio, warehouse finance, wholesale deposits, borrowings)[107](index=107&type=chunk) | Metric (in thousands) | Consumer (6M 2025) | Commercial (6M 2025) | Corporate Services/Other (6M 2025) | Total (6M 2025) | | :-------------------- | :----------------- | :------------------- | :--------------------------------- | :-------------- | | Net interest income | $156,694 | $85,280 | $19,554 | $261,528 | | Noninterest income | $147,629 | $39,357 | $8,916 | $195,902 | | Income (loss) before income tax expense | $141,533 | $46,932 | $(60,935) | $127,530 | | Total assets | $431,962 | $3,975,353 | $2,587,471 | $6,994,786 | | Total deposits | $5,633,529 | $140 | $185,540 | $5,819,209 | [NOTE 15. FAIR VALUES OF FINANCIAL INSTRUMENTS](index=37&type=section&id=NOTE%2015.%20FAIR%20VALUES%20OF%20FINANCIAL%20INSTRUMENTS) Financial instruments are measured using a fair value hierarchy, with debt securities AFS primarily Level 2 - Fair value hierarchy categorizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[110](index=110&type=chunk)[111](index=111&type=chunk) - Debt securities AFS are primarily Level 2, and marketable equity securities are Level 1[112](index=112&type=chunk)[113](index=113&type=chunk) | Financial Instrument (in thousands) | March 31, 2025 (Fair Value) | September 30, 2024 (Fair Value) | | :---------------------------------- | :-------------------------- | :------------------------------ | | Debt securities available for sale | $1,411,520 | $1,741,221 | | Loans and leases | $4,418,831 | $4,036,490 | | Deposits | $5,819,118 | $5,874,994 | [NOTE 16. SUBSEQUENT EVENTS](index=40&type=section&id=NOTE%2016.%20SUBSEQUENT%20EVENTS) Management identified no material subsequent events requiring recognition or disclosure - No material subsequent events identified after March 31, 2025, up to the filing date[121](index=121&type=chunk) [NOTE 17. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS](index=41&type=section&id=NOTE%2017.%20RESTATEMENT%20OF%20PREVIOUSLY%20ISSUED%20FINANCIAL%20STATEMENTS) The Company restated its unaudited historical condensed consolidated financial statements to correct accounting errors - Restatement of unaudited historical condensed consolidated financial statements for March 31, 2024[122](index=122&type=chunk) - Corrections for errors in allowance for credit losses, interest income, provision for credit losses, and noninterest expense[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's discussion and analysis of financial condition and results [FORWARD-LOOKING STATEMENTS](index=42&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements subject to significant risks and uncertainties - Forward-looking statements are based on current information and assumptions, subject to significant risks and uncertainties[125](index=125&type=chunk) - Key risk factors include maintaining executive management, realizing growth opportunities, geopolitical conflicts, inflation, interest rate changes, regulatory actions, and technological risks[125](index=125&type=chunk) - The Company disclaims any obligation to update or revise forward-looking statements[126](index=126&type=chunk) [GENERAL](index=43&type=section&id=GENERAL) Pathward Financial, Inc. is a NASDAQ-listed bank holding company, analyzing financial condition and results - Pathward Financial, Inc. is a registered bank holding company, and its common stock trades on NASDAQ under "CASH"[127](index=127&type=chunk)[128](index=128&type=chunk) - Prior period financial information for March 31, 2024, has been restated as described in Note 17[129](index=129&type=chunk) [EXECUTIVE SUMMARY](index=43&type=section&id=EXECUTIVE%20SUMMARY) Pathward, N.A. was Certified™ by Great Place to Work®, with Q2 fiscal 2025 highlights including a **29%** increase in tax income - Pathward®, N.A. became Certified™ by Great Place to Work® for the third year in a row[130](index=130&type=chunk) | Metric | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | Change | % Change | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------- | :--------- | | Total tax services product income (net) | $47.6 million | $36.9 million | $10.7 million | 29.00% | | Total revenue (Q2 fiscal) | $274.8 million | $257.6 million | $17.2 million | 6.68% | | Net Interest Margin (NIM) (Q2 fiscal) | 7.12% | 6.77% | 0.35% | 5.17% | | Gross loans and leases (March 31, 2025 vs March 31, 2024, excluding divested business) | $4.46 billion | $3.88 billion | $0.58 billion | 15.00% | - Repurchased **575,804** shares of common stock at an average price of **$78.11** during Q2 fiscal 2025[131](index=131&type=chunk) [FINANCIAL CONDITION](index=44&type=section&id=FINANCIAL%20CONDITION) Total assets decreased to **$6.99 billion** due to reduced loans held for sale and securities AFS | Metric (in millions) | March 31, 2025 | September 30, 2024 | Change | % Change | | :------------------- | :------------- | :----------------- | :----- | :--------- | | Total assets | $6,994.8 | $7,532.0 | $(537.2) | -7.13% | | Cash and cash equivalents | $254.2 | $158.3 | $95.9 | 60.58% | | Investment securities | $1,442.8 | $1,774.3 | $(331.5) | -18.68% | | Loans held for sale | $45.8 | $691.7 | $(645.9) | -93.38% | | Total gross loans and leases | $4,464.9 | $4,075.2 | $389.7 | 9.56% | | Commercial finance loans | $3,524.8 | $3,295.6 | $229.2 | 6.95% | | Total deposits | $5,819.2 | $5,875.1 | $(55.9) | -0.95% | | Total borrowings | $33.4 | $410.4 | $(377.0) | -91.86% | | Stockholders' equity | $814.0 | $822.2 | $(8.2) | -0.99% | - The increase in cash and cash equivalents was primarily due to proceeds from the sale of the commercial insurance premium finance business and debt securities AFS, partially offset by repayment of short-term borrowings[137](index=137&type=chunk) - The Company managed **$1.12 billion** of off-balance sheet custodial deposits at March 31, 2025, earning servicing fee income[150](index=150&type=chunk) [RESULTS OF OPERATIONS](index=47&type=section&id=RESULTS%20OF%20OPERATIONS) Net income for Q2 fiscal 2025 increased to **$75.0 million**, with diluted EPS of **$3.14** | Metric (in millions, except EPS) | Q2 Fiscal 2025 | Q2 Fiscal 2024 (Restated) | Change | % Change | | :------------------------------- | :------------- | :------------------------ | :----- | :--------- | | Net income | $75.0 | $69.9 | $5.1 | 7.21% | | Diluted EPS | $3.14 | $2.74 | $0.40 | 14.60% | | Net interest income | $136.3 | $128.6 | $7.7 | 5.99% | | Net Interest Margin (NIM) | 7.12% | 6.77% | 0.35% | 5.17% | | Provision for credit losses | $35.3 | $29.7 | $5.6 | 18.86% | | Noninterest income | $138.5 | $128.9 | $9.6 | 7.45% | | Noninterest expense | $148.2 | $140.7 | $7.5 | 5.33% | | Effective tax rate | 17.7% | 19.4% | -1.7% | -8.76% | - Average interest-earning assets increased by **$122.2 million** to **$7.76 billion** in Q2 fiscal 2025, driven by cash and loan/lease balances, partially offset by decreased investment securities[156](index=156&type=chunk) - Secondary market revenue, refund advance, and other tax product income, and refund transfer product fees primarily drove the increase in noninterest income[161](index=161&type=chunk) - Card and deposit fee income decreased due to lower quarterly average deposit balances at partner banks and reduced servicing fee income from lower EFFR[162](index=162&type=chunk) [Asset Quality](index=52&type=section&id=Asset%20Quality) Nonperforming assets decreased to **$41.6 million** (**0.59%** of total assets) | Metric (in thousands) | March 31, 2025 | September 30, 2024 | Change (in thousands) | % Change | | :------------------------------------ | :------------- | :----------------- | :-------------------- | :--------- | | Total nonperforming assets | $41,618 | $43,033 | $(1,415) | -3.29% | | Total nonperforming loans and leases | $39,806 | $41,562 | $(1,756) | -4.22% | | Nonaccruing loans and leases | $36,049 | $26,412 | $9,637 | 36.49% | | Accruing loans 90+ days delinquent | $3,757 | $15,150 | $(11,393) | -75.20% | | Classified loans & leases: Substandard | $202,900 | $180,900 | $22,000 | 12.16% | | Classified loans & leases: Doubtful | $5,000 | $10,300 | $(5,300) | -51.46% | | Allowance for Credit Losses (ACL) | $102,900 | $71,800 | $31,100 | 43.32% | - The decrease in nonperforming assets was primarily driven by a decrease in nonperforming loans in the seasonal tax services portfolio[174](index=174&type=chunk) - ACL as a percentage of total loans and leases increased to **2.30%** at March 31, 2025, from **1.76%** at September 30, 2024, due to seasonality in tax services and consumer finance portfolios[183](index=183&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=54&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) The Company's critical accounting policies and estimates remained without significant changes - No significant changes to critical accounting policies and estimates during the first six months of fiscal 2025[184](index=184&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=55&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The Company's total available liquidity exceeded **$3.89 billion**, and both the Company and Bank remain well-capitalized - Primary sources of funds are deposits, borrowings, and payments on loans/securities[185](index=185&type=chunk) - Total available liquidity was over **$3.89 billion** at March 31, 2025, including cash, off-balance sheet custodial deposits, and FHLB/FRB access[186](index=186&type=chunk) - Uninsured deposits remained less than **15%** of total deposits during Q2 fiscal 2025[186](index=186&type=chunk) | Capital Ratio | Company (March 31, 2025) | Bank (March 31, 2025) | Minimum to be Well Capitalized | | :------------------------ | :----------------------- | :-------------------- | :----------------------------- | | Tier 1 leverage capital ratio | 8.32% | 8.52% | 5.00% | | Common equity Tier 1 capital ratio | 13.64% | 14.25% | 6.50% | | Tier 1 capital ratio | 13.91% | 14.25% | 8.00% | | Total capital ratio | 15.57% | 15.51% | 10.00% | - The Company and Bank exceeded federal regulatory minimum capital requirements and were classified as well-capitalized at March 31, 2025[188](index=188&type=chunk) [CONTRACTUAL OBLIGATIONS](index=56&type=section&id=CONTRACTUAL%20OBLIGATIONS) No material changes occurred to contractual obligations outside the ordinary course of business - No material changes to contractual obligations from September 30, 2024, through March 31, 2025[195](index=195&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item discusses the company's exposure to market risks, particularly interest rate risk [Interest Rate Risk ("IRR")](index=57&type=section&id=Interest%20Rate%20Risk%20(%22IRR%22)) The Company actively manages interest rate risk using EAR and EVE analyses - The Company actively manages interest rate risk using Earnings at Risk (EAR) and Economic Value of Equity (EVE) analyses[203](index=203&type=chunk)[205](index=205&type=chunk) | Scenario (March 31, 2025) | Net Interest Income (in thousands) | Percentage Change from Base | | :------------------------ | :--------------------------------- | :-------------------------- | | -200 bps parallel shift | $384,557 | -11.1% | | -100 bps parallel shift | $405,270 | -6.3% | | Base Case | $432,439 | —% | | +100 bps parallel shift | $459,790 | 6.3% | | +200 bps parallel shift | $485,814 | 12.3% | | Scenario (March 31, 2025) | Economic Value of Equity at Risk % Change from Base | | :------------------------ | :-------------------------------------------------- | | -200 bps parallel shift | -5.1% | | -100 bps parallel shift | -2.0% | | +100 bps parallel shift | 1.1% | | +200 bps parallel shift | 1.6% | - The economic value of equity position is expected to benefit from rising interest rates due to the large amount of noninterest-bearing funding[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) This item addresses disclosure controls, material weaknesses, and internal control changes [EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES](index=59&type=section&id=EVALUATION%20OF%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were not effectively designed due to a material weakness - Disclosure controls and procedures were not effectively designed as of March 31, 2025[210](index=210&type=chunk) - A material weakness in internal control over financial reporting was identified[210](index=210&type=chunk) - Despite the material weakness, management believes the consolidated financial statements in this Form 10-Q fairly present the Company's financial position[211](index=211&type=chunk) [REMEDIATION PLAN AND STATUS](index=59&type=section&id=REMEDIATION%20PLAN%20AND%20STATUS) The Company is actively remediating the material weakness by engaging a consultant - Engaged a third-party technical accounting consultant to assist with identification, assessment, and accounting impacts for consumer lending program agreements[214](index=214&type=chunk) - Designed and is implementing a control enhancement for periodic review and validation of accounting policies for consumer lending program agreements[214](index=214&type=chunk) [CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING](index=60&type=section&id=CHANGES%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) No other material changes occurred in internal controls over financial reporting - No other material changes in internal controls over financial reporting during the second fiscal quarter, apart from the described material weakness and remediation[215](index=215&type=chunk) [PART II - OTHER INFORMATION](index=61&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The Company has no material pending legal proceedings - No material pending legal proceedings or contemplated governmental proceedings[218](index=218&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors - No material changes to risk factors during the six months ended March 31, 2025[219](index=219&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased **575,804** common shares, with **5,722,336** remaining available | Period (Fiscal 2025 Q2) | Total Number of Shares Purchased | Average Price Paid per Share | Shares Remaining Under Program | | :---------------------- | :------------------------------- | :--------------------------- | :----------------------------- | | January 1 to 31 | 305,900 | $76.80 | 5,992,240 | | February 1 to 28 | 269,904 | $79.59 | 5,722,336 | | March 1 to 31 | — | — | 5,722,336 | | Total | 575,804 | N/A | N/A | - **5,722,336** shares remained available for repurchase under the program as of March 31, 2025[222](index=222&type=chunk) [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the current reporting period - Not applicable[223](index=223&type=chunk) [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the current reporting period - Not applicable[225](index=225&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements - No adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements by directors or executive officers[227](index=227&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Exhibits include Section 302 and 906 certifications and iXBRL financial information - Includes Section 302 and 906 certifications of Chief Executive Officer and Chief Financial Officer[229](index=229&type=chunk) - Financial information formatted in Inline Extensible Business Reporting Language (iXBRL) is provided[229](index=229&type=chunk) [SIGNATURES](index=63&type=section&id=SIGNATURES) The report is duly signed by Brett L. Pharr, CEO, and Gregory A. Sigrist, CFO - Report signed by Brett L. Pharr, CEO and Director, and Gregory A. Sigrist, EVP and CFO[233](index=233&type=chunk)

Distribution Announcement - Argent Trust Company declared a cash distribution of $0.584110 per unit for the Sabine Royalty Trust, payable on September 29, 2025, to unit holders of record on September 15, 2025 [1] Production and Revenue Details - The distribution reflects oil production for June 2025 and gas production for May 2025, with preliminary production volumes of approximately 97,403 barrels of oil and 1,181,086 Mcf of gas [2] - Preliminary prices for the current month are approximately $68.79 per barrel of oil and $2.40 per Mcf of gas [2] - This month's distribution is lower than the previous month due to a decrease in oil and natural gas production, as well as a decrease in pricing [3] Comparative Analysis - Current month production and pricing compared to the prior month: - Oil volumes decreased from 121,894 barrels to 97,403 barrels - Gas volumes decreased from 1,280,573 Mcf to 1,181,086 Mcf - Average oil price decreased from $69.53 to $68.79 per barrel - Average gas price decreased from $2.77 to $2.40 per Mcf [3] Revenue Posting Information - Revenues are distributed after being received, verified, and posted, with most energy companies issuing royalty payments around the 25th of each month [4] - Approximately $498,000 of revenue received in August will be posted in September, in addition to normal cash receipts [5]

Core Viewpoint - Argent Trust Company declared a cash distribution of $0.016418 per unit for the Permian Basin Royalty Trust, with the distribution date set for September 15, 2025, and record date on August 29, 2025. The distribution does not include proceeds from the Waddell Ranch properties due to production costs exceeding gross proceeds for July 2025 [1][4]. Distribution Summary - The current month's distribution increased compared to the previous month, primarily due to higher natural oil volumes from Texas Royalty Properties, although this was partially offset by lower natural gas volumes and decreased oil and gas pricing [2]. - The total production for Texas Royalty Properties was 16,672 barrels of oil and 9,952 Mcf of gas, with the Trust's allocated portion being 14,645 barrels of oil and 8,742 Mcf of gas. The average prices were $62.02 per barrel for oil and $7.53 per Mcf for gas, leading to revenues of $1,109,052 after deducting taxes and expenses [5][6]. Waddell Ranch Properties - Blackbeard Operating, LLC has not provided necessary information for calculating net profits interest (NPI) proceeds for August 2025, which affects the distribution. If NPI proceeds are received by the record date, they will be included in the September distribution [3][4]. - All excess costs from the Waddell Ranch properties must be recovered through future proceeds before any distributions can be made to the Trust. Blackbeard is now providing production, pricing, and cost information quarterly instead of monthly [4][8]. Legal Matters - The Trustee has filed a lawsuit against Blackbeard for over $9 million in damages, alleging improper calculations and deductions related to royalties owed to the Trust. The trial is scheduled for November 17, 2025 [10][11].

Dividend Announcement - Old Republic International Corporation declared a regular quarterly cash dividend of 29 cents per share, payable on September 15, 2025, to shareholders of record on September 5, 2025 [1] - The full year's cash dividend is projected to be $1.16 per share, representing a 9.4% increase from the $1.06 per share paid in 2024 [1] Dividend History - 2025 marks the 44th consecutive year that Old Republic has increased its regular cash dividend [2] - The company has maintained uninterrupted regular cash dividend payments for 84 years [2] Company Overview - Old Republic is a leading specialty insurer with diverse property & casualty and title insurance companies [3] - Founded in 1923 and a member of the Fortune 500, the company excels in underwriting and risk management services across the United States and Canada [3] - The specialized operating companies within Old Republic provide tailored solutions that distinguish the company in the market [3]