SECURITIES (Tables)

9 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

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 Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Debt Securities AFS
June 30, 2025
Corporate securities	$	25,000	$	—	$	(3,875)	$	21,125
SBA securities	11,791		—		(1,108)		10,683
Obligations of states and political subdivisions	162		—		(1)		161
Non-bank qualified obligations of states and political subdivisions	218,328		23		(28,806)		189,545
Asset-backed securities	142,963		11		(2,782)		140,192
Mortgage-backed securities	1,180,069		17		(174,452)		1,005,634
Total debt securities AFS	$	1,578,313	$	51	$	(211,024)	$	1,367,340
September 30, 2024
Corporate securities	$	25,000	$	—	$	(5,250)	$	19,750
SBA securities	86,036		—		(4,101)		81,935
Obligations of states and political subdivisions	501		—		(21)		480
Non-bank qualified obligations of states and political subdivisions	246,233		44		(28,287)		217,990
Asset-backed securities	192,979		337		(3,618)		189,698
Mortgage-backed securities	1,393,549		84		(162,265)		1,231,368
Total debt securities AFS	$	1,944,298	$	465	$	(203,542)	$	1,741,221

Debt Securities HTM
June 30, 2025
Non-bank qualified obligations of states and political subdivisions	$	28,314	$	—	$	(4,263)	$	24,051
Mortgage-backed securities	1,959		—		(239)		1,720
Total debt securities HTM	$	30,273	$	—	$	(4,502)	$	25,771
September 30, 2024
Non-bank qualified obligations of states and political subdivisions	$	31,060	$	—	$	(2,668)	$	28,392
Mortgage-backed securities	2,032		—		(188)		1,844
Total debt securities HTM	$	33,092	$	—	$	(2,856)	$	30,236

Schedule of Unrealized Loss on Investments, AFS

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 MONTHS				OVER 12 MONTHS				TOTAL
(Dollars in thousands)	Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)
Debt Securities AFS
June 30, 2025
Corporate securities	$	—	$	—	$	21,125	$	(3,875)	$	21,125	$	(3,875)
SBA securities	—		—		10,683		(1,108)		10,683		(1,108)
Obligations of state and political subdivisions	161		(1)		—		—		161		(1)
Non-bank qualified obligations of states and political subdivisions	—		—		187,593		(28,806)		187,593		(28,806)
Asset-backed securities	66,794		(725)		68,015		(2,057)		134,809		(2,782)
Mortgage-backed securities	13,041		(111)		990,596		(174,341)		1,003,637		(174,452)
Total debt securities AFS	$	79,996	$	(837)	$	1,278,012	$	(210,187)	$	1,358,008	$	(211,024)
September 30, 2024
Corporate securities	$	—	$	—	$	19,750	$	(5,250)	$	19,750	$	(5,250)
SBA securities	—		—		81,935		(4,101)		81,935		(4,101)
Obligations of state and political subdivisions	—		—		280		(21)		280		(21)
Non-bank qualified obligations of states and political subdivisions	—		—		215,956		(28,287)		215,956		(28,287)
Asset-backed securities	52,101		(176)		88,576		(3,442)		140,677		(3,618)
Mortgage-backed securities	2,377		(15)		1,215,781		(162,250)		1,218,158		(162,265)
Total debt securities AFS	$	54,478	$	(191)	$	1,622,278	$	(203,351)	$	1,676,756	$	(203,542)

Debt Securities HTM
June 30, 2025
Non-bank qualified obligations of states and political subdivisions	$	—	$	—	$	24,051	$	(4,263)	$	24,051	$	(4,263)
Mortgage-backed securities	—		—		1,720		(239)		1,720		(239)
Total debt securities HTM	$	—	$	—	$	25,771	$	(4,502)	$	25,771	$	(4,502)
September 30, 2024
Non-bank qualified obligations of states and political subdivisions	$	—	$	—	$	28,392	$	(2,668)	$	28,392	$	(2,668)
Mortgage-backed securities	—		—		1,844		(188)		1,844		(188)
Total debt securities HTM	$	—	$	—	$	30,236	$	(2,856)	$	30,236	$	(2,856)

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

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 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, 2025				September 30, 2024
Debt Securities AFS	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	380	$	382	$	1,826	$	1,796
Due after one year through five years	1,712		1,732		14,772		14,211
Due after five years through ten years	27,883		24,013		70,894		63,636
Due after ten years	368,269		335,580		463,257		430,210
	398,244		361,707		550,749		509,853
Mortgage-backed securities	1,180,069		1,005,633		1,393,549		1,231,368
Total debt securities AFS	$	1,578,313	$	1,367,340	$	1,944,298	$	1,741,221

Debt Securities HTM



Due after ten years	$	28,314	$	24,051	$	31,060	$	28,392
	28,314		24,051		31,060		28,392
Mortgage-backed securities	1,959		1,720		2,032		1,844
Total debt securities HTM	$	30,273	$	25,771	$	33,092	$	30,236

PATHWARD FINANCIAL, INC. 10-Q