Pathward Financial Investor Presentation Deck
CREDIT CONTROLS LIMIT THE RISK IN
CONSUMER AND WAREHOUSE PROGRAMS
Warehouse Finance
Asset-backed warehouse lines of credit used to support
strategic initiatives.
Lines are primarily secured by consumer receivables,
whereby Meta is in a senior, secured position as the
first out participant.
Have never had a charge off or loss.
Agreements trigger waterfall protection for the
"First Out" participant.
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All Loan/Collateral Cash Flows
Admin Fees (0-5%)
First-Out Tranche (Meta Position)
$55MM (55%)
Junior Tranche
$35MM (35%)
Equity Tranche
$10MM (10%)
Meta Financial Group, Inc. (NASDAQ: CASH) | Investor Presentation
$100M Facility
EXAMPLE
Consumer Credit Program
Consumer credit programs with marketplace lenders offer Meta a
risk adjusted return, protected by certain layers of credit support
and balance sheet flexibility. Programs are offered to strategic
partners with payments distribution potential.
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Agreements typically provide for "excess spread" build-up
and protection through a priority of payment within a waterfall
Principal
Repayment to Meta
Consumer Payments
Principal, Interest, Fees
Collection Account
Principal Losses
to Meta
Meta's Agreed upon interest return
Servicing
Remaining Excess Spread to Meta-owned escrow reserve
Reserve release to partner is conditional
(subordinate) based on product performance
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