Pathward Financial Results Presentation Deck
CONTINUED PROGRESS ON KEY STRATEGIC INITIATIVES
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Inh
OPTIMIZE INTEREST-EARNING
PORTFOLIO, TO EMPHASIZE
HIGHER-RETURN ASSETS
Improved yield on earning assets to 6.57% for
1Q24 as compared to 5.70% for 1Q23.
Grew commercial finance loans by $728
million, or 24%, from December 31, 2022.
$1.9 billion securities portfolio provides cash
flow for future commercial finance loan
growth.
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16 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
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OPTIMIZE DEPOSIT MIX, TO
MAINTAIN A STABLE
DEPOSIT BASE
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Stable deposits2 driven by high levels of
noninterest deposits (94% of total deposits).
Achieved 0.35% cost of funds from all deposits
and borrowings and total cost of deposits of
0.21% for 1Q24².
$1.1 billion of off-balance sheet customer
deposits in custody of program banks.
Prioritizing stable BaaS deposits, which can
generate higher levels of fee income.
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TARGET OF 2X OPERATING
LEVERAGE
Efficiency ratio of 66.79% compared to
68.81%¹ as of December 31, 2022.
Weighted average life of over 5.5 years based
on decay study for noninterest-bearing
deposits.
1 Adjusted efficiency ratio (excluding the gain on sale of trademarks and rebranding expenses) for the twelve months ended December 31, 2022 was 67.10%. See appendix for Non-GAAP financial measures reconciliations.
2 See slide 20 (Cost of Deposits) for additional detail on deposit costs.
Ongoing initiatives to drive long-term
simplification and optimize existing business
platforms through the establishment of a
business transformation office.
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