Pathward Financial Results Presentation Deck
Cost of
Deposits
HIGHLIGHTS
ā As of September 30, 2023, approximately 49% 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.
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 a lag in repricing.
As of September 30, 2023, Pathward also managed $268
million in off-balance sheet deposits that earned $7.8 million
of fee income during the fiscal fourth quarter. That income is
also reflective of the Effective Fed Funds Rate.
19 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
0.88%
0.12%
0.09% 0.12%
4Q20 1Q21
2Q21 3Q21 4Q21
All-in Cost of Deposits
Cost of Total Deposits
Cost of Deposits
1Q22
5.26%
2.22%
Note: All-in Cost of Deposits represents cost of total deposits with the additional incorporation of the company's noninterest variable
card processing expenses impacted by interest rates.
1.56%
0.12%
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Cost of Interest Bearing Deposits
-Quarterly Average Effective Fed Funds Rate
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