Pathward Financial Results Presentation Deck
Interest Rate Risk Management September 30, 2023
24
Earning Asset Pricing Attributes¹
30%
15%
0%
15%
-15%
25%
55%
12-Month Interest Rate Sensitivity
from Base Net Interest Income
5%
Fixed Rate > 1 Year
Fixed Rate < 1 Year
Floating or Variable
Federal Reserve
Bank Deposits
(Floating or Variable)
¹ Fixed rate securities, loans and leases are shown for contractual periods.
Parallel Shock ■Ramp ■Alternative Year 1
+100
+200
+300
-200
-100
Parallel Shock is a statutorily required calculation of the impact of an immediate change in rates, assuming
other variables remain unchanged. Ramp reflects additional modeling of more gradual increases in interest
rates. Alternative Year 1 mirrors the Parallel Shock scenario with the additional incorporation of the
Company's card fee income and card processing expenses impacted by interest rates.
Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
Data presented on this page is reflective of the Company's asset mix at
a point in time and calculated for regulatory purposes. Future rate
changes would impact a multitude of variables beyond the Company's
control, and as a result, the data presented is not intended to be used
for forward-looking modeling purposes.
Volume ($MM)
Management's focus is on selectively adding duration to improve yield
and protect margin against falling rates.
Interest rate risk modeling shows asset sensitive balance
sheet; net interest income graph shows impact of an instantaneous,
parallel rate shock, a gradual parallel ramp, and an alternative view.
Management employs rigorous modeling techniques under a variety of
yield curve shapes, twists and ramps.
Asset/Liability Gap Analysis
6,000
4,000
2,000
-2,000
Month 1-12
Month 13-36
Period Variance
Month 37-60
-Total Assets
Month 61-180
Total Liabilities
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