Pathward Financial Results Presentation Deck
INDIRECT CONSUMER CREDIT PROGRAMS
Total Exposure $104.8 million
●
Consumer credit programs with marketplace lenders 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.
●
●
% of Total¹
2.7%
-
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 March 31, 2021, MetaBank had two consumer credit
programs with strategic partners.
Principal
Repayment to
Meta
¹ Total includes total gross loans & leases of $3.65 billion and rental equipment, net of $211.4 million, as of March 31, 2021
33
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 | SECOND QUARTER FISCAL YEAR 2021 | NASDAQ: CASHView entire presentation