Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

Interest Rate Risk Management 18 Earning Asset Pricing Attributes¹ 35% 20% 5% 10% -10% 23% 61% 12-Month Interest Rate Sensitivity from Base Net Interest Income 6% Fixed Rate > 1 Year Fixed Rate < 1 Year Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) ¹ Fixed rate securities, loans and leases are shown for contractual periods. Parallel Shock ■Ramp ■Alternative Year 1 +100 H -100 +200 +300 Parallel Shock is a statutorily required calculation of the impact of an immediate rise in rates, assuming other variables remain unchanged. Ramp reflects additional modeling of more gradual increases in interest rates. Alternative Year 1 mirrors the Parallel Shock scenario with the additional incorporation of the company's card fee income and card processing expenses impacted by interest rates. Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation December 31, 2022 Data presented on this page is reflective of the company's asset mix at a point in time and calculated for regulatory purposes. Future rate changes would impact a multitude of variables beyond the company's control, and as a result, the data presented is not intended to be used for forward-looking modeling purposes. Volume ($MM) Management's focus is on selectively adding duration to improve yield and protect margin against falling rates. Interest rate risk modeling shows asset sensitive balance sheet; net interest income graph shows impact of an instantaneous, parallel rate shock, a gradual parallel ramp, and an alternative view. Management employs rigorous modeling techniques under a variety of yield curve shapes, twists and ramps. Asset/Liability Gap Analysis 4,000 2,000 -2,000 Month 1-12 Month 13-36 Period Variance Month 37-60 -Total Assets Month 61-180 Total Liabilities pathward
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