Pathward Financial Results Presentation Deck
COMMERCIAL FINANCE LOAN AND LEASE PORTFOLIO
TERM LENDING. Collateralized conventional term loans and notes receivable,
weighted average life of 53 months. Exposure is concentrated in solar/alternative
energy, most of which are construction projects that will convert to longer term
government guaranteed facilities upon completion. Also includes equipment
financing relationships, through equipment finance agreements and installment
purchase agreements. Average loan size approximately $180 thousand; small ticket
equipment finance approximately $70 thousand
SBA/USDA
$331.9M
4.69%
Insurance
Premium
Finance
$344.8M
5.40%
Other
$103.2M
7.41%
Rental
Equipment,
net
$211.4M
NA%
$2.72 billion
COMMERCIAL FINANCE PORTFOLIO
(includes Rental Equipment, net)
as of March 31, 2021
7.60%
2Q21 Quarterly Yield
% in chart represents current
quarter yield
Lease
Financing
$308.2M
8.50%
Factoring
$277.6M
14.05%
Michigan
Top geographic state concentrations¹ by %
1. California
2. Texas
3.
4. Florida
5. North Carolina
6. Illinois
7. New York
8. Pennsylvania
$263.5M Small ticket
equipment financing
16.6%
11.1%
7.5%
6.5%
5.1%
4.6%
4.2%
3.5%
Asset-Based
Lending
$248.7M
9.80%
$273.5M
Term Lending
$891.4M
6.93%
Solar/alternative
energy
$158.8M
Equipment
financing
$126.1M
Wealth
management/
insurance
$69.5M
Other
ASSET-BASED LENDING. Asset-based loans secured by accounts receivable,
inventory, machinery & equipment work-in-process and other assets. Approximately
70% backed by accounts receivable, generally 85% advance rates. Exposure
managed within a collateral borrowing base. Well diversified in terms of industry and
geographic concentrations. Average loan size approximately $1.8 million.
FACTORING. Factoring services where clients provide detailed inventory, accounts
receivable, and work-in-process reports for lending arrangements. Bank secures
dominion of funds which secures repayment when applicable accounts receivables
or invoices are paid. Approximately 95% backed by accounts receivable, generally
85% advance rates. Average loan size approximately $325 thousand.
LEASE FINANCING. Leasing solutions for technology, capital equipment and select
transportation assets like tractors, trailers and construction equipment. Majority of
portfolio relationships are to Fortune 1000 clients. Average lease size approximately
$170 thousand.
INSURANCE PREMIUM FINANCE. Short-term, primarily collateralized financing to
facilitate the purchase of commercial insurance for various forms of risk. Over 90%
of insurance company partners have an investment grade rating through AM Best as
well as an internal risk rating system. Average loan size approximately $30 thousand.
SBA/USDA. Originate loans through SBA or USDA programs, primarily SBA 7(a),
USDA B&I, USDA REAP. Focus on specific verticals such as investment advisory
practices, insurance agencies and solar. Includes $208.6 million of PPP loans.
Average loan size approximately $770 thousand, excluding PPP loans.
OTHER COMMERCIAL FINANCE. Includes healthcare receivables loan portfolio
primarily comprised of loans to individuals for medical services received. Majority of
these loans are guaranteed by the referring hospital.
RENTAL EQUIPMENT. Leased assets related to operating leases generated from
the commercial finance business line. Primarily consists of solar panels, motor
vehicles, and computers and IT networking equipment.
¹ Excludes certain joint ventures; percentages calculated based on aggregate principal amount of commercial finance loans and leases includes operating lease rental equipment of $211.4M
17
QUARTERLY INVESTOR UPDATE | SECOND QUARTER FISCAL YEAR 2021 | NASDAQ: CASHView entire presentation