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STOCK COMPENSATION
 6 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
The Pathward Financial, Inc. 2023 Omnibus Incentive 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. In addition, beginning in fiscal year 2025, awards were made to certain employees as time-vesting restricted stock units settleable in shares ("RSUs"). These shares and RSUs generally vest at various times ranging from immediately to three years based on circumstances at time of grant. The grant date fair value is determined based on the fair market value of the Company’s stock on the grant date, determined in accordance with applicable accounting standards. 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 and total shareholder return. The awards generally 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 (other than PSUs subject to a market condition) 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.

Finally, awards of shares or RSUs may be made at other times during the fiscal year for new hire, promotion, or retention awards.
The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, RSUs and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the six months ended March 31, 2026.

Number of SharesWeighted Average Fair Value at Grant
Restricted Stock Awards
Nonvested shares outstanding, September 30, 202581,697 $47.77 
Granted13,200 92.85 
Vested(74,103)54.74 
Forfeited or expired— — 
Nonvested shares outstanding, March 31, 202620,794 $51.51 
RSUs
Nonvested shares outstanding, September 30, 202592,620 $79.19 
Granted119,228 68.88 
Vested(27,903)79.48 
Forfeited or expired(4,903)72.79 
Nonvested shares outstanding, March 31, 2026179,042 $72.45 
PSUs
PSUs outstanding, September 30, 2025142,366 $52.59 
Granted49,816 65.74 
Adjustment for performance achievement(1)
15,901 38.94 
Vested(71,934)38.94 
Forfeited or expired— — 
PSUs outstanding, March 31, 2026136,149 $63.02 
(1) The final performance was assessed after September 30, 2025, resulted in an achievement greater than target, and an additional 15,901 shares were allocated to the participants in the plan.

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 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 Company recognized total stock-based compensation expense of $6.8 million and $5.1 million for the six months ended March 31, 2026 and 2025, respectively. This expense is recorded primarily within compensation and benefits on the Condensed Consolidated Statements of Operations.

As of March 31, 2026, stock-based compensation expense not yet recognized in income totaled $14.2 million, which is expected to be recognized over a weighted average remaining period of 1.79 years.