Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

Continued Progress on Key Strategic Initiatives & OPTIMIZE DEPOSIT MIX, TO MAINTAIN A STABLE DEPOSIT BASE ● ● ● 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. ● 15 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation ● ● ● 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. pathward
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