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EARNINGS PER COMMON SHARE ("EPS")
 6 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE ("EPS") EARNINGS PER COMMON SHARE ("EPS")
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 restricted stock grants 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.
Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands, except per share data)2024202320242023
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$65,268 $54,771 $92,925 $82,613 
Dividends and undistributed earnings allocated to participating securities(524)(841)(744)(1,231)
Basic net earnings available to common stockholders64,744 53,930 92,181 81,382 
Undistributed earnings allocated to nonvested restricted stockholders514 820 724 1,190 
Reallocation of undistributed earnings to nonvested restricted stockholders(514)(818)(724)(1,187)
Diluted net earnings available to common stockholders$64,744 $53,932 $92,181 $81,385 
Total weighted-average basic common shares outstanding25,281,743 27,078,048 25,529,186 27,555,197 
Effect of dilutive securities(1)
Performance share units29,401 91,521 26,470 77,540 
Total effect of dilutive securities29,401 91,521 26,470 77,540 
Total weighted-average diluted common shares outstanding25,311,144 27,169,569 25,555,656 27,632,737 
Net earnings per common share:
Basic earnings per common share$2.56 $1.99 $3.61 $2.95 
Diluted earnings per common share(2)
$2.56 $1.99 $3.61 $2.95 
(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 three months ended March 31, 2024 and 2023, respectively, were 204,877 and 422,461 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. Excluded from the computation of diluted earnings per share for the six months ended March 31, 2024 and 2023, respectively, were 206,060 and 417,012 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.