PATHWARD FINANCIAL, INC.CASH
PATHWARD FINANCIAL, INC. Segments Disclosure
SEGMENT REPORTING
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker ("CODM") to appropriately allocate entity resources and evaluate performance. The Company has identified the CODM to be the Chief Executive Officer ("CEO") of Pathward Financial, Inc.
Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The Company evaluated the listed operating segments based on their business processes, consumers, and variety of economic characteristics. The Partner Solutions business line is reported in the Consumer segment. The Commercial Finance business line is reported in the Commercial segment. The Corporate Services/Other segment includes certain shared services as well as treasury related functions such as the investment portfolio, warehouse finance, wholesale deposits, and borrowings.
The CODM reviews the performance and aggregates resources based on various factors but primarily through the evaluation of income (loss) before income tax expense. The significant expenses that have been deemed meaningful to the segments and regularly reported to the CODM are summarized below. These expenses are directly attributable to each of the three business segments. Shared services are an area of focus for the Company and as such, the table below includes the significant selling, general, and administrative ("SG&A") allocations of such shared services.
The following tables present segment data for the Company:
| Fiscal Year Ended September 30, 2025 | ||||||||||||||
| (Dollars in thousands) | Consumer | Commercial | Corporate Services/Other | Total | ||||||||||
| Interest and dividend income | $ | 317,686 | $ | 307,348 | $ | (101,642) | $ | 523,392 | ||||||
| Interest expense | 17,673 | 121,851 | (127,926) | 11,598 | ||||||||||
| Net interest income | 300,013 | 185,497 | 26,284 | 511,794 | ||||||||||
| Provision for credit loss | 28,587 | 28,059 | 128 | 56,774 | ||||||||||
| Net interest income after provision for credit loss | 271,426 | 157,438 | 26,156 | 455,020 | ||||||||||
| Noninterest income | 227,248 | 90,904 | 9,948 | 328,100 | ||||||||||
| Noninterest expense | ||||||||||||||
| Compensation and benefits | 29,764 | 48,419 | 122,312 | 200,495 | ||||||||||
| Building and software | 9,384 | 9,320 | 23,390 | 42,094 | ||||||||||
| Operating lease equipment depreciation | — | 45,636 | — | 45,636 | ||||||||||
| Rate related card expenses | 104,081 | — | — | 104,081 | ||||||||||
| Other card expenses | 34,321 | — | 41 | 34,362 | ||||||||||
| Tax product expenses | 12,775 | — | — | 12,775 | ||||||||||
| Loan expenses | 1,128 | 16,104 | — | 17,232 | ||||||||||
| Legal and consulting | 2,404 | 4,003 | 30,062 | 36,469 | ||||||||||
| SG & A intercompany allocations | 70,348 | 29,312 | (99,660) | — | ||||||||||
Consumer lending program expenses(1) | 20,034 | — | — | 20,034 | ||||||||||
| Other expenses | 14,256 | 8,741 | 23,892 | 46,889 | ||||||||||
| Total noninterest expense | 298,495 | 161,535 | 100,037 | 560,067 | ||||||||||
| Income (loss) before income tax expense | 200,179 | 86,807 | (63,933) | 223,053 | ||||||||||
| Total assets | 484,988 | 4,345,546 | 2,341,810 | 7,172,344 | ||||||||||
| Total goodwill | 87,145 | 210,783 | — | 297,928 | ||||||||||
| Total deposits | 5,665,100 | 122 | 221,725 | 5,886,947 | ||||||||||
(1) Consumer lending program expenses relate to the excess interest that gets passed to our partners for loans originated and retained by the Company under the various partner programs. Refer to Derivative Instruments in Note 1. Significant Accounting Policies for additional information on these expenses. | ||||||||||||||
| Fiscal Year Ended September 30, 2024 | ||||||||||||||
| (Dollars in thousands) | Consumer | Commercial | Corporate Services/Other | Total | ||||||||||
| Interest and dividend income | $ | 297,411 | $ | 310,599 | $ | (88,952) | $ | 519,058 | ||||||
| Interest expense | 17,801 | 116,524 | (113,092) | 21,233 | ||||||||||
| Net interest income | 279,610 | 194,075 | 24,140 | 497,825 | ||||||||||
| Provision for credit loss | 42,390 | 15,571 | 140 | 58,101 | ||||||||||
| Net interest income after provision for credit loss | 237,220 | 178,504 | 24,000 | 439,724 | ||||||||||
| Noninterest income | 217,107 | 71,748 | 10,732 | 299,587 | ||||||||||
| Noninterest expense | ||||||||||||||
| Compensation and benefits | 30,067 | 60,263 | 111,142 | 201,472 | ||||||||||
| Building and software | 8,259 | 11,725 | 16,603 | 36,587 | ||||||||||
| Operating lease equipment depreciation | — | 41,757 | — | 41,757 | ||||||||||
| Rate related card expenses | 110,757 | — | — | 110,757 | ||||||||||
| Other card expenses | 27,140 | — | 41 | 27,181 | ||||||||||
| Tax product expenses | 11,805 | — | — | 11,805 | ||||||||||
| Loan expenses | 1,284 | 12,130 | — | 13,414 | ||||||||||
| Legal and consulting | 3,130 | 6,025 | 15,702 | 24,857 | ||||||||||
| SG & A intercompany allocations | 62,148 | 30,996 | (93,144) | — | ||||||||||
| Consumer lending program expenses | 7,437 | — | — | 7,437 | ||||||||||
| Other expenses | 15,336 | 10,244 | 19,844 | 45,424 | ||||||||||
| Total noninterest expense | 277,363 | 173,140 | 70,188 | 520,691 | ||||||||||
| Income (loss) before income tax expense | 176,964 | 77,112 | (35,456) | 218,620 | ||||||||||
| Total assets | 417,843 | 4,440,662 | 2,673,512 | 7,532,017 | ||||||||||
| Total goodwill | 87,145 | 222,360 | — | 309,505 | ||||||||||
| Total deposits | 5,643,228 | 10,935 | 220,922 | 5,875,085 | ||||||||||
(1) Consumer lending program expenses relate to the excess interest that gets passed to our partners for loans originated and retained by the Company under the various partner programs. Refer to Derivative Instruments in Note 1. Significant Accounting Policies for additional information on these expenses. | ||||||||||||||
| Fiscal Year Ended September 30, 2023 | ||||||||||||||
| (Dollars in thousands) | Consumer | Commercial | Corporate Services/Other | Total | ||||||||||
| Interest and dividend income | $ | 186,716 | $ | 263,415 | $ | (28,181) | $ | 421,950 | ||||||
| Interest expense | 11,401 | 65,960 | (66,487) | 10,874 | ||||||||||
| Net interest income | 175,315 | 197,455 | 38,306 | 411,076 | ||||||||||
| Provision for credit loss | 90,808 | 18,384 | 50 | 109,242 | ||||||||||
| Net interest income after provision for credit loss | 84,507 | 179,071 | 38,256 | 301,834 | ||||||||||
| Noninterest income | 233,544 | 66,051 | 17,004 | 316,599 | ||||||||||
| Noninterest expense | ||||||||||||||
| Compensation and benefits | 24,783 | 56,397 | 103,138 | 184,318 | ||||||||||
| Building and software | 7,962 | 11,545 | 15,184 | 34,691 | ||||||||||
| Operating lease equipment depreciation | — | 45,710 | — | 45,710 | ||||||||||
| Rate related card expenses | 77,355 | — | — | 77,355 | ||||||||||
| Other card expenses | 28,141 | — | 2 | 28,143 | ||||||||||
| Tax product expenses | 11,586 | — | — | 11,586 | ||||||||||
| Loan expenses | 306 | 11,589 | (6) | 11,889 | ||||||||||
| Legal and consulting | 2,297 | 7,140 | 17,665 | 27,102 | ||||||||||
| SG & A intercompany allocations | 60,636 | 30,240 | (90,876) | — | ||||||||||
| Consumer lending program expenses | (1,588) | — | — | (1,588) | ||||||||||
| Other expenses | 13,353 | 9,246 | 21,583 | 44,182 | ||||||||||
| Total noninterest expense | 224,831 | 171,867 | 66,690 | 463,388 | ||||||||||
| Income (loss) before income tax expense | 93,220 | 73,255 | (11,430) | 155,045 | ||||||||||
| Total assets | 445,813 | 4,183,624 | 2,873,964 | 7,503,401 | ||||||||||
| Total goodwill | 87,145 | 222,360 | — | 309,505 | ||||||||||
| Total deposits | 6,376,467 | 5,958 | 206,757 | 6,589,182 | ||||||||||
(1) Consumer lending program expenses relate to the excess interest that gets passed to our partners for loans originated and retained by the Company under the various partner programs. Refer to Derivative Instruments in Note 1. Significant Accounting Policies for additional information on these expenses. | ||||||||||||||
Expenses included in the Other Expenses line represent insignificant expenses to the various operating segments such as marketing, data processing, meals and travel, communications, office supplies, seminars and training, dues and subscriptions, regulatory expense, bank service charges, fraud and program losses, charitable giving, and intangible amortization that are included in income (loss) before income tax expense.
In addition, interest expense includes intercompany interest paid through allocations to appropriately fund each of the operating segments. Management uses funds transfer pricing methodology to allocate the inter-segment interest appropriately, and as such, has determined the allocation to properly represent the interest rate environment at the Company.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 25, 2025 | Showing above |
| 2024 | Nov 26, 2024 | |
| 2023 | Nov 21, 2023 | |
| 2022 | Nov 22, 2022 | |
| 2021 | Nov 23, 2021 | |
| 2020 | Nov 30, 2020 | |
| 2019 | Nov 26, 2019 | |
| 2018 | Nov 29, 2018 | |
| 2017 | Nov 29, 2017 | |
| 2016 | Dec 14, 2016 | |
| 2015 | Dec 14, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.