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EARNINGS PER COMMON SHARE ("EPS")
 9 Months Ended
Jun. 30, 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 June 30,Nine Months Ended June 30,
(Dollars in thousands, except per share data)2024202320242023
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$41,835 $45,096 $134,760 $127,709 
Dividends and undistributed earnings allocated to participating securities(432)(690)(1,181)(1,920)
Basic net earnings available to common stockholders41,403 44,406 133,579 125,789 
Undistributed earnings allocated to nonvested restricted stockholders419 670 1,148 1,858 
Reallocation of undistributed earnings to nonvested restricted stockholders(419)(667)(1,146)(1,852)
Diluted net earnings available to common stockholders$41,403 $44,409 $133,580 $125,795 
Total weighted-average basic common shares outstanding24,946,085 26,346,693 25,335,621 27,152,773 
Effect of dilutive securities(1)
Performance share units33,733 100,339 29,021 86,028 
Total effect of dilutive securities33,733 100,339 29,021 86,028 
Total weighted-average diluted common shares outstanding24,979,818 26,447,032 25,364,642 27,238,801 
Net earnings per common share:
Basic earnings per common share$1.66 $1.69 $5.27 $4.63 
Diluted earnings per common share(2)
$1.66 $1.68 $5.27 $4.62 
(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 June 30, 2024 and 2023, respectively, were 260,415 and 409,666 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 nine months ended June 30, 2024 and 2023, respectively, were 224,035 and 414,539 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.