Pathward Financial Results Presentation Deck
COMMERCIAL FINANCE LOAN AND LEASE PORTFOLIO
SBA/USDA
$300.7M
4.02%
Insurance
Premium
Finance
$338.2M
5.39%
Other
$101.2M
7.63%
Rental
Equipment,
net
$206.7M
NA%
$2.63 billion
COMMERCIAL FINANCE PORTFOLIO
(includes Rental Equipment, net)
as of December 31, 2020
7.49%
1021 Quarterly Yield
% in chart represents
current quarter yield
Lease
Financing
$283.7M
7.68%
Factoring
$275.7M
12.82%
$266.0M Small Ticket
16.7%
11.3%
7.8%
7.0%
4.6%
4.5%
4.1%
3.2%
Top geographic state concentrations¹ by %
1. California
2. Texas
3. Michigan
4. Florida
5. North Carolina
6. New York
7. Illinois
8. Pennsylvania
Equipment Financing
Asset-Based
Lending
$242.3M
10.67%
$235.3M
Solar/alternative
energy
Term Lending
$881.3M
7.03%
$181.8M
Equipment
financing
$135.9M
Wealth
management/
insurance
$62.3M
Other
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
ASSET-BASED LENDING. Asset-based loans secured by accounts receivable, inventory,
machinery & equipment, ork-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 $1.4 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 $320 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
$145 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 $194.3 million of PPP loans. Average loan size
approximately $530 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 $206.7M
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QUARTERLY INVESTOR UPDATE | FIRST QUARTER FISCAL YEAR 2021 | NASDAQ: CASHView entire presentation