Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

CONTINUED PROGRESS ON KEY STRATEGIC INITIATIVES ● ● ● 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. ● 16 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ● ● ● & OPTIMIZE DEPOSIT MIX, TO MAINTAIN A STABLE DEPOSIT BASE ● 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. 809 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. pathward
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