Pathward Financial Results Presentation Deck
Continued Progress on Key Strategic Initiatives
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OPTIMIZE DEPOSIT MIX, TO
MAINTAIN A STABLE
DEPOSIT BASE
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Inl
OPTIMIZE INTEREST-EARNING
PORTFOLIO, TO EMPHASIZE
HIGHER-RETURN ASSETS
Improved yield on earning assets to 6.48% for
4Q23 as compared to 5.26% for 4Q22.
Grew commercial finance loans by $699
million, or 23%, from September 30, 2022.
$1.8 billion securities portfolio provides cash
flow for future commercial finance loan
growth.
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15 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
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Stable deposits2 driven by high levels of
noninterest deposits (96% of total deposits).
Achieved 0.29% cost of funds from all deposits
and borrowings and total cost of deposits of
0.12% for 4Q23².
$268 million of off-balance sheet customer
deposits in custody of program banks.
Prioritizing stable BaaS deposits, which can
generate higher levels of fee income.
Weighted average life of over 6 years based on
decay study for noninterest-bearing deposits.
TARGET OF 2X OPERATING
LEVERAGE
Efficiency ratio of 66.00% compared to
64.09% as of September 30, 2022.1
Ongoing initiatives to drive long-term
simplification and optimize existing business
platforms through the establishment of a
business transformation office.
¹ Adjusted efficiency ratio (excluding the gain on sale of trademarks and rebranding expenses) for the twelve months ended September 30, 2023 was 66.42%. See appendix for Non-GAAP financial measures reconciliations.
2 See slide 19 (Cost of Deposits) for additional detail on deposit costs.
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