Pathward Financial Results Presentation Deck
CONSUMER CREDIT PROGRAMS
Total Exposure
●
Consumer credit programs offer Meta a risk adjusted return,
protected by certain layers of credit support and balance sheet
flexibility. Programs are offered to strategic partners with payments
distribution potential.
●
$88.6 million
●
% of Total¹ 2.4%
Agreements typically provide for "excess spread" build-up and
protection through a priority of payment within a waterfall
Consumer interest rate and fees flow through a waterfall:
Covers principal losses and Meta's required rate of interest. Meta's
interest rate is substantially less than the consumer's APR
Structure provides for a build up of excess spread to allow protection
from loan losses and ensure Meta's contractual rate of interest is
covered
Structure provides for ALLL on a portfolio basis rather than loan level
basis
Excess spread in the escrow account only released to partner when
certain conditions are satisfied
Escrow account balance has increased since program inception
As of December 31, 2020, MetaBank had two consumer credit
programs with strategic partners.
Principal
Repayment to
Meta
¹ Total includes total gross loans & leases of $3.44 billion and rental equipment, net of $206.7M, as of December 31, 2020
30
Consumer Payments
Principal, Interest, Fees
Collection Account
Principal Losses
to Meta
Meta's Agreed upon
interest return
Remaining Excess Spread
to Meta-owned escrow
reserve
Servicing
Reserve release to partner is conditional
(subordinate) based on product performance
QUARTERLY INVESTOR UPDATE | FIRST QUARTER FISCAL YEAR 2021 | NASDAQ: CASHView entire presentation