Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

INTEREST RATE RISK MANAGEMENT DECEMBER 31, 2023 Earning Asset Pricing Attributes¹ 30% 15% 0% 12% -15% 26% 53% 12-Month Interest Rate Sensitivity from Base Net Interest Income 9% Fixed Rate > 1 Year Fixed Rate < 1 Year Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) ¹ Fixed rate securities, loans and leases are shown for contractual periods. Parallel Shock Alternative Parallel Shock Alternative Ramp -100 +100 +200 +300 -200 Parallel Shock is a statutory required calculation of the impact of an immediate change in rates, assuming other variables remain unchanged. Ramp reflects additional modeling of more gradual increases in interest rates. The Alternative scenarios mirror the Parallel Shock and Ramp with the additional incorporation of the Company's card fee income and card processing expenses impacted by interest rates. 25 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ● Data presented on this page is reflective of the Company's asset mix at a point in time and calculated for regulatory purposes. Future rate changes would impact a multitude of variables beyond the Company's control, and as a result, the data presented is not intended to be used for forward-looking modeling purposes. Volume ($MM) Management's focus is on selectively adding duration to improve yield and protect margin against falling rates. Interest rate risk modeling shows asset sensitive balance sheet; net interest income graph shows impact of an instantaneous, parallel rate shock and alternative views of a gradual parallel ramp and a parallel rate shock. Management employs rigorous modeling techniques under a variety of yield curve shapes, twists and ramps. Asset/Liability Gap Analysis 6,000 4,000 2,000 -2,000 Month 1-12 Month 13-36 Period Variance Month 37-60 -Total Assets Month 61-180 Total Liabilities pathward
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