THE PATHWARD STORY UPDATED JANUARY 22, 2026 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 1 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," ...

Financial Data and Key Metrics Changes - The company reported a net interest margin of 7.43% for the quarter, an increase from 7.26% in the prior year, and an adjusted net interest margin of 5.98%, up from 5.76% [17] - Noninterest income grew by 11% year-over-year, with Tax Solutions outperforming the previous year's results [17] - The allowance for credit loss was 160 basis points, with an annualized net charge-off rate of 52 basis points for the quarter [19] Business Line Data and Key Metrics Changes - The yield on new originations for commercial finance loans was 9.55%, compared to an average of 8.24% in the previous quarter [19] - The company successfully redeployed nearly $1 billion generated from the sale of loans and securities in a shorter timeframe than initially expected [8] - The acquiring product experienced triple-digit revenue growth year-to-date, indicating strong performance in this business line [11] Market Data and Key Metrics Changes - Custodial deposits held at partner banks increased to $431 million from $353 million a year ago, reflecting growth in this area [19] - The company is targeting quarterly secondary market revenues in the range of $5 million to $7 million, benefiting from its balance sheet optimization strategy [18] Company Strategy and Development Direction - The company aims to be a trusted platform for partners, focusing on balance sheet optimization and offering unique financing structures that traditional banks may not provide [6][7] - Investments in technology are a priority, with ongoing efforts to evolve and scale product offerings, particularly in Partner Solutions [10] - The company has contracted for 11 opportunities to expand products with existing or new partners this year, indicating a robust pipeline [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the complexities of the industry and regulatory environment while continuing to invest in risk and compliance [14] - The preliminary EPS range for fiscal year 2025 is expected to be between $7.5 and $7.8, with a preliminary range for fiscal year 2026 of $8.25 to $8.75 [22] - Management noted that while the accounting change has been a distraction, they are in the later stages of addressing it and are comfortable with the methodologies used [27] Other Important Information - The company was recognized as one of the best companies to work for by U.S. News and World Report for 2025 to 2026, highlighting its strong culture and employee satisfaction [12] - Liquidity remains strong with nearly $2.7 billion available, an increase from the previous year [21] Q&A Session Summary Question: Discussion on accounting change distraction and timeline for resolution - Management indicated they are in the middle to later stages of resolving the accounting change and are comfortable with the preliminary numbers provided [27][28] Question: Quantification of incremental expenses related to accounting change - Management stated that full details will be available in the restated 10-K, but lower income is expected for 2022 and 2023 due to built provisions [30] Question: Credit quality and NPL increase explanation - Management clarified that the increase in non-performing loans (NPLs) was due to three distinct episodic events, not indicative of a broader trend [31][32] Question: AI strategy and its potential impact on P&L - Management is exploring AI for efficiency improvements but does not expect a significant impact on P&L in the near term [34][37] Question: Update on crypto-related products and services - The company provides access devices for partners with crypto-related digital wallets and is evaluating potential opportunities in the crypto space [43][46] Question: Credit trends in the commercial finance portfolio - Management reported that borrowers are generally doing well, with the NPL increase attributed to isolated incidents rather than systemic issues [47] Question: Update on the partner pipeline in banking as a service - The pipeline remains strong, with 11 contracts signed this year and ongoing evaluations of new opportunities [49]