v3.26.1
SECURITIES
 9 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available for sale ("AFS") and held to maturity ("HTM") are presented below.

(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
Debt Securities AFS
June 30, 2026
Corporate securities$25,000 $— $(1,875)$23,125 
SBA securities11,081 — (1,181)9,900 
Obligations of states and political subdivisions123 1 — 124 
Non-bank qualified obligations of states and political subdivisions197,620 7 (25,841)171,786 
Asset-backed securities109,525 14 (1,424)108,115 
Mortgage-backed securities1,060,299 60 (153,793)906,566 
Total debt securities AFS$1,403,648 $82 $(184,114)$1,219,616 
September 30, 2025
Corporate securities$25,000 $— $(3,750)$21,250 
SBA securities11,791 — (1,022)10,769 
Obligations of states and political subdivisions162 — — 162 
Non-bank qualified obligations of states and political subdivisions213,072 25 (26,057)187,040 
Asset-backed securities138,698 21 (2,347)136,372 
Mortgage-backed securities1,129,406 57 (157,213)972,250 
Total debt securities AFS$1,518,129 $103 $(190,389)$1,327,843 
Debt Securities HTM
June 30, 2026
Non-bank qualified obligations of states and political subdivisions$25,564 $— $(3,632)$21,932 
Mortgage-backed securities1,537 — (196)1,341 
Total debt securities HTM$27,101 $— $(3,828)$23,273 
September 30, 2025
Non-bank qualified obligations of states and political subdivisions$27,373 $— $(3,430)$23,943 
Mortgage-backed securities1,935 — (225)1,710 
Total debt securities HTM$29,308 $— $(3,655)$25,653 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
June 30, 2026
Corporate securities$— $— $23,125 $(1,875)$23,125 $(1,875)
SBA securities— — 9,900 (1,181)9,900 (1,181)
Non-bank qualified obligations of states and political subdivisions— — 170,274 (25,841)170,274 (25,841)
Asset-backed securities42,420 (1,038)61,336 (386)103,756 (1,424)
Mortgage-backed securities2,627 (6)895,404 (153,787)898,031 (153,793)
Total debt securities AFS$45,047 $(1,044)$1,160,039 $(183,070)$1,205,086 $(184,114)
September 30, 2025
Corporate securities$— $— $21,250 $(3,750)$21,250 $(3,750)
SBA securities— — 10,769 (1,022)10,769 (1,022)
Non-bank qualified obligations of states and political subdivisions— — 185,089 (26,057)185,089 (26,057)
Asset-backed securities64,995 (556)66,263 (1,791)131,258 (2,347)
Mortgage-backed securities1,102 (2)965,549 (157,211)966,651 (157,213)
Total debt securities AFS$66,097 $(558)$1,248,920 $(189,831)$1,315,017 $(190,389)
Debt Securities HTM
June 30, 2026
Non-bank qualified obligations of states and political subdivisions$— $— $21,932 $(3,632)$21,932 $(3,632)
Mortgage-backed securities— — 1,342 (196)1,342 (196)
Total debt securities HTM$— $— $23,274 $(3,828)$23,274 $(3,828)
September 30, 2025
Non-bank qualified obligations of states and political subdivisions$— $— $23,943 $(3,430)$23,943 $(3,430)
Mortgage-backed securities— — 1,710 (225)1,710 (225)
Total debt securities HTM$— $— $25,653 $(3,655)$25,653 $(3,655)

The decrease in the fair value of investment securities balances when comparing June 30, 2026 to September 30, 2025 was primarily driven by principal pay downs during the nine months. At June 30, 2026, there were 146 debt securities AFS in an unrealized loss position. Management assessed each investment security with unrealized losses for credit loss by evaluating qualitative factors, including materiality of loss position as a percentage of book value, credit ratings, outstanding principal and interest payments, and changes in the underlying implicit or explicit guarantee of the security, and determined all unrealized losses on these securities were due to adverse market conditions and/or change in interest rates versus credit loss. As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost. At June 30, 2026, there was no allowance for credit losses ("ACL") for debt securities AFS.
The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities ("MBS") because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

(Dollars in thousands)June 30, 2026September 30, 2025
Debt Securities AFSAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$1,275 $1,280 $755 $760 
Due after one year through five years353 356 1,332 1,352 
Due after five years through ten years27,173 25,303 27,688 23,947 
Due after ten years314,548 286,111 358,948 329,534 
343,349 313,050 388,723 355,593 
Mortgage-backed securities1,060,299 906,566 1,129,406 972,250 
Total debt securities AFS$1,403,648 $1,219,616 $1,518,129 $1,327,843 
Debt Securities HTM
Due after ten years$25,564 $21,932 $27,373 $23,943 
25,564 21,932 27,373 23,943 
Mortgage-backed securities1,537 1,341 1,935 1,710 
Total debt securities HTM$27,101 $23,273 $29,308 $25,653 

Federal Reserve Bank ("FRB") Stock. The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank totaled $19.7 million at June 30, 2026 and September 30, 2025. These equity securities are 'restricted' in that they can only be owned by member banks and can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FRB stock is less liquid than other marketable equity securities, and the cost approximates fair value.

Federal Home Loan Bank ("FHLB") Stock. The Company's borrowings from the FHLB are secured by specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.

The investments in the FHLB stock are required investments related to the Company's membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency.

The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $11.2 million and $5.0 million at June 30, 2026 and at September 30, 2025, respectively.

These equity securities are ‘restricted’ in that they can only be sold back to the institution from which they were acquired or another member institution at par. Therefore, FHLB stock is less liquid than other marketable equity securities, and the cost approximates fair value.

Equity Securities. The Company held $4.8 million and $3.8 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2026 and September 30, 2025, respectively. The Company recognized zero and $0.1 million in unrealized losses on marketable equity securities during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026.
Non-marketable equity securities that are measured at fair value using net asset value ("NAV") as a practical expedient totaled $13.5 million and $13.2 million at June 30, 2026 and September 30, 2025, respectively. These securities are held within other assets on the Condensed Consolidated Statements of Financial Condition. The Company recognized $1.7 million and $1.1 million in unrealized gains during the nine months ended June 30, 2026 and 2025, respectively. No such securities were sold during the nine months ended June 30, 2026.

Non-marketable equity securities without readily determinable fair value totaled $14.9 million and $12.0 million at June 30, 2026 and September 30, 2025, respectively, reflecting the Company's ownership interests in other entities through Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of the Bank that was formed in 2017 for the purpose of making minority equity investments and other corporate investments. The Company recognized a $0.4 million gain on Visa shares which were carried at a cost basis of $0 during the nine months ended June 30, 2025. This gain was recognized within the gain on sale of other on the Condensed Consolidated Statements of Operations. There were no additional such securities sold during the nine months ended June 30, 2026.

Equity Securities Impairment. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis. The Company recognized $0.2 million and no impairment for such investments for the nine months ended June 30, 2026 and 2025, respectively.