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STOCK COMPENSATION
 12 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
The Company previously maintained the Pathward Financial, Inc. 2002 Omnibus Incentive Plan, as amended and restated (the "Prior Omnibus Incentive Plan"). No awards were granted under the Prior Omnibus Incentive Plan following November 25, 2022, the date that the Prior Omnibus Incentive Plan expired by its terms. On February 27, 2024, the shareholders of the Company voted to approve the Pathward Financial, Inc. 2023 Omnibus Incentive Plan (the "Plan"). The Plan permits the granting of various types of awards including but not limited to nonvested (restricted) shares and PSUs to certain officers and directors of the Company. Awards may be granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to three years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares have historically vested from immediately to up to one year from the grant date.

The Company also grants selected executives PSU awards. The vesting of these awards is contingent on meeting company-wide performance goals, including earnings per share. PSUs are generally granted at the market value of the underlying share on the date of grant, adjusted for dividends, as PSUs do not participate in dividends. The awards contingently vest over a period of three years and have payout levels ranging from a threshold of 50% to a maximum of 200%. Upon vesting, each PSU earned is converted into one share of common stock.

The fair value of the PSUs is determined by the dividend-adjusted fair value on the grant date for those awards subject to a performance condition. For those PSUs subject to a market condition, a simulation valuation is performed.

In addition, during the first and second quarters of fiscal year 2017, shares were granted to certain executive officers of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years.

The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, and PSUs) granted, exercised or forfeited under all of the Company’s incentive plans during the fiscal years ended September 30, 2024 and 2023.
(Dollars in thousands, except per share data)Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2023370,151 $35.87 
Granted181,117 50.61 
Vested(288,734)40.22 
Forfeited or expired(13,864)42.49 
Nonvested shares outstanding, September 30, 2024248,670 $41.19 
Nonvested shares outstanding, September 30, 2022474,348 $36.52 
Granted135,417 36.68 
Vested(229,803)37.46 
Forfeited or expired(9,811)41.14 
Nonvested shares outstanding, September 30, 2023370,151 $35.87 
(Dollars in thousands, except per share data)Number of UnitsWeighted Average Fair Value at Grant
Performance share units outstanding, September 30, 2023155,804 $41.20 
Granted(1)
52,125 49.61 
Vested(60,984)55.47 
Forfeited or expired(4,483)44.59 
Performance share units outstanding, September 30, 2024142,462 $47.24 
Performance share units outstanding, September 30, 202296,689 $42.59 
Granted(2)
59,115 38.94 
Vested— — 
Forfeited or expired— — 
Performance share units outstanding, September 30, 2023155,804 $41.20 
(1) The activity in this table includes 60,984 shares related to the fiscal year 2021 PSUs, which are included in this table under the assumption of a target performance achievement. The final performance was assessed after September 30, 2023, resulted in an achievement greater than target, and an additional 47,252 shares were allocated to the participants in the plan.
(2) The number of PSUs granted reflects the target number of PSUs able to be earned under a given award.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of fair value of nonvested (restricted) shares and PSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends where applicable. The Company has elected to record forfeitures as they occur.

The following table shows the effect to income, net of tax benefits, of share-based compensation expense recorded:
Fiscal Year Ended September 30,
(Dollars in thousands)202420232022
Total employee stock-based compensation expense recognized in income, net of tax effects of $1,873, $1,838, and $2,181, respectively
$8,416 $8,465 $7,824 

As of September 30, 2024, stock-based compensation expense not yet recognized in income totaled $6.3 million, which is expected to be recognized over a weighted-average remaining period of 1.56 years.