Pathward Financial Results Presentation Deck slide image

Pathward Financial Results Presentation Deck

INTEREST RATE RISK MANAGEMENT DECEMBER 31, 2020 45% 35% 25% 15% 5% -5% 12-MONTH INTEREST RATE SENSITIVITY FROM BASE NET INTEREST INCOME -100 +100 +200 Parallel Shock ■ Ramp EARNING ASSET PRICING ATTRIBUTES ¹ 41% 11% Fixed Rate > 1 Year Fixed Rate < 1 Year 24% 24% +300 Floating or Variable Federal Reserve Bank Deposits (Floating or Variable) Volume ($MM) • Interest rate risk shows asset sensitive balance sheet - net interest income modeled under an instantaneous, parallel rate shock and a gradual parallel ramp. 5,000 4,000 3,000 2,000 1,000 O -1,000 Lower for longer rate environment -- focus is on reducing wholesale funding and redeploying deposits and assets into positive carry opportunities. -2,000 Management also employs rigorous modeling techniques under a variety of yield curve shapes, twists and ramps. ASSET/LIABILITY GAP ANALYSIS Month 1-12 Period Variance Month 13-36 Total Assets Month 37-60 ¹ Fixed rate securities, loans and leases are shown for contractual periods less than 12 months and greater than 12 months. 22 QUARTERLY INVESTOR UPDATE | FIRST QUARTER FISCAL YEAR 2021 | NASDAQ: CASH Month 61-180 Total Liabilities
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