Pathward Financial Results Presentation Deck
Low-cost
Deposits
HIGHLIGHTS
ā Pathward is benefitting from the deposit optimization
strategy that included transitioning away from higher cost
interest-bearing wholesale deposits in favor of growing
BaaS deposits.
As of December 31, 2022, approximately 43% of the
deposit balances were subject to variable card processing
expenses, derived from contractual agreements with
certain BaaS partners tied to a rate index, typically the
Effective Fed Funds Rate.
ā Contractual card processing costs are more impactful in
today's environment than they were in 2019-2021 due to
the meaningful growth in BaaS deposits. These costs
reprice immediately upon a change in the applicable rate
index, leading to an instant cost increase as compared to
the earning-asset yields that will generally experience
more of a lag in repricing.
13 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
2.22%
1.99%
1.03%
0.91%
Cost of Deposits
3.65%
0.99%
0.26%
0.01%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23
Total Cost Including Contractual Card Processing Expense
Cost of Interest Bearing Deposits
Cost of Total Deposits
Quarterly Average Effective Fed Funds Rate
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