Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

INTEREST RATE RISK MANAGEMENT MARCH 31, 2021 65% 50% 35% 20% 5% -10% 12-MONTH INTEREST RATE SENSITIVITY FROM BASE NET INTEREST INCOME +100 +200 Parallel Shock Ramp EARNING ASSET PRICING ATTRIBUTES ¹ -100 32% 8% 18% Fixed Rate > 1 Year Fixed Rate < 1 Year 42% +300 Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) Volume ($MM) ● 8,000 6,000 4,000 2,000 0 -2,000 Lower for longer rate environment -- focus is on reducing wholesale funding and redeploying deposits and assets into positive carry opportunities. Interest rate risk shows asset sensitive balance sheet - net interest income modeled under an instantaneous, parallel rate shock and a gradual parallel ramp. Management also employs rigorous modeling techniques under a variety of yield curve shapes, twists and ramps. ASSET/LIABILITY GAP ANALYSIS Month 1-12 Month 13-36 Period Variance Month 37-60 Total Assets ¹ Fixed rate securities, loans and leases are shown for contractual periods less than 12 months and greater than 12 months. 26 QUARTERLY INVESTOR UPDATE | SECOND QUARTER FISCAL YEAR 2021 | NASDAQ: CASH Month 61-180 Total Liabilities
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