Slide 1: The Pathward Story
THE PATHWARD STORY U P D AT E D J A N UA RY 2 1 , 2 0 2 5
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This investor update contains “forward-looking statements” which are made in good faith by Pathward Financial, Inc. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements
Slide 3: Leading the way to financial access is the heart of our business
AT PATHWARD®, LEADING THE WAY TO FINANCIAL ACCESS IS THE HEART OF OUR BUSINESS. Since our founding, we have worked to advance financial inclusion. We seek out diverse partners, including fintechs, affinity groups, government agencies, and other banks and work with them to identify markets where peop
Slide 4: Building a diversified company dedicated to financial empowerment
BUILDING A DIVERSIFIED COMPANY DEDICATED TO FINANCIAL EMPOWERMENT FOR INDIVIDUALS AND BUSINESSES 1993 2015 / 2016 2021 2022 Listed on Entered Tax Services Sold Meta Completed Nasdaq: CASH business by acquiring Refund trademarks and rebranding as Advantage, SCS, and EPS began rebranding Pathward Dram
Slide 5: Resilient business model in economic cycles
RESILIENT BUSINESS MODEL IN ECONOMIC CYCLES Funding Revenue Stable funding Earns consistent Operates a from deposits via fees from the Commercial Partner Solutions Partner Solutions Finance relationships business collateralized lending platform 5 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly I
Slide 6: Collaborate with partners to provide innovative Partner Solutions
COLLABORATE WITH PARTNERS TO PROVIDE INNOVATIVE PARTNER SOLUTIONS A leading debit and prepaid Accepting and processing merchant payments on card issuer holding funds Issuing Acquiring behalf of our partners for partner programs Enable partners to Financial Partner with financial move money quickly,
Slide 7: Commercial Finance helps businesses access needed funds
COMMERCIAL FINANCE HELPS BUSINESSES ACCESS NEEDED FUNDS THROUGH VARIOUS SOLUTIONS Working Equipment Structured Capital Finance Finance Finance Ready cash for liquidity Providing access to Assisting small and mid- needs to new or growing equipment financing, sized businesses and rural companies in cy
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS RECORD OF STRONG EXCESS CAPITAL EXPERIENCED LEADER IN 1 EARNINGS GROWTH AND 2 GENERATING BUSINESS 3 FAST-GROWING PAYMENTS PROFITABILITY ABOVE ENABLES ONGOING RETURN SECTOR, WITH DIVERSIFIED BANKING INDUSTRY OF VALUE TO PORTFOLIO OF HIGH- AVERAGES SHAREHOLDERS QUALITY FINANCIAL
Slide 9: Record of strong earnings growth & profitability
1 2 3 4 5 RECORD OF STRONG EARNINGS GROWTH & PROFITABILITY1 Return on Average Assets Return on Average Tangible Equity 2.33% 2.20% 2.20% 48.32% 1.88% 1.74% 41.74% 1.69% 35.42% 1.45% ROAA inclusive of one-time items 28.66% 30.25% 25.65% ROATE inclusive of Peer average3 21.87% one-time items 2020 2021
Slide 10: Earnings growth and right-sized balance sheet enable return of capital
1 2 3 4 5 TRACK RECORD OF STRONG EARNINGS GROWTH AND RIGHT-SIZED BALANCE SHEET ENABLES ONGOING RETURN OF CAPITAL $671.9M $37.0M TOTAL SHARE REPURCHASES TOTAL DIVIDENDS PAID 2Q19 TO 1Q25 2Q19 TO 1Q25 Note: Repurchased common shares include shares withheld to cover income taxes owed by participants re
Slide 11: Pathward serves as a hub of the payments ecosystem
1 2 3 4 5 PATHWARD SERVES AS A HUB OF THE PAYMENTS ECOSYSTEM Debit/Credit Fed / Networks Settlement Financial Institution ATM Sponsorship Clients Issuing/Acquiring/ Originating Bank End User End User Card Holder / Merchants Consumer FinTech / Processor Program Manager Acquiring Partners Processor Is
Slide 12: Commercial Finance portfolio produces stable annual net charge-off rates
1 2 3 4 5 COMMERCIAL FINANCE PORTFOLIO PRODUCES STABLE ANNUAL NET CHARGE-OFF RATES Insurance premium finance Fiscal Year End Commercial Finance Loan Balances portfolio moved to held for ($ in millions) sale during 4QFY24 4,000 1.0 $3,723 Pathward Acquires 0.9 3,500 $3,296 Crestmark $3,024 0.8 3,000
Slide 13: Mature risk mitigation and compliance capabilities
1 2 3 4 5 MATURE RISK MITIGATION AND COMPLIANCE CAPABILITIES Enterprise Risk Third-Party Risk Business Continuity Bank Secrecy Act / Anti- Management Management Management Money Laundering Our Enterprise Risk Management Just as Pathward’s ERM program Business Continuity Management To protect our cus
Slide 14: Quarterly Investor Update
QUARTERLY INVESTOR UPDATE F I R S T Q UA R T E R F I S C A L Y E A R 2 0 2 5
Slide 15: Q1 FY 2025 Highlights
Q1 FY 2025 HIGHLIGHTS Net Income Diluted Earnings Per Share $31.4 million in net income; an increase of 14% $1.29 in diluted earnings per share; an increase of 22% compared compared to Q1 FY 2024 to Q1 FY 2024 Net Interest Margin Return Metrics2 Net interest margin (“NIM”) of 6.84% compared to 6.23%
Slide 16: Strong results from optimized balance sheet
STRONG RESULTS FROM OPTIMIZED BALANCE SHEET • Completed sale of the Insurance Premium Finance business • Announced strategic partnership to support renewable energy growth • Q1 FY25 originations were strong in renewable energy, equipment finance and working capital • Continue to focus on credit spon
Slide 17: Partner Solutions extends current contracts
PARTNER SOLUTIONS EXTENDS CURRENT CONTRACTS • Extended contracts with two of our top partners, one for an additional two years and the other for an additional five years • Pipeline continues to be strong • Started tax season with 12% more enrolled offices than last year 17 Pathward Financial, Inc. (
Slide 18: Trusted platform that enables our partners to thrive
TRUSTED PLATFORM THAT ENABLES OUR PARTNERS TO THRIVE Optimized balance sheet with optimized asset mix Technology to facilitate evolution and scalability People and culture are important assets Mature risk and compliance framework 18 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presen
Slide 19: Net interest income drives solid results
NET INTEREST INCOME DRIVES SOLID RESULTS ($ IN MILLIONS, EXCEPT PER SHARE DATA) Net Interest Income Noninterest Income Noninterest Expense +6% +9% +4% $110.0 $116.1 $57.4 $119.3 123.6 $52.8 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net Income Attributable to Parent Earnings per Diluted Share +
Slide 20: Deposit base supports asset growth
1 DEPOSITS Period ending ($ in millions) DEPOSIT BASE SUPPORTS ASSET GROWTH -6% $6,936.1 $6,519.0 Decrease in deposits at December 31, 2024 when compared to the prior year period was primarily due to a reduction in wholesale deposits and the return of inactive EIP deposits to the U.S. Treasury.
Slide 21: Total loans and leases increased from Q1 2024
TOTAL LOANS AND LEASES Period ending ($ in millions) +3% $4,562.7 $4,426.3 TOTAL LOANS AND LEASES INCREASED FROM Q1 2024 Increase primarily driven by term lending, warehouse finance and asset-based lending. Growth was partially offset by the sale of insurance premium finance loans during Q1FY25.
Slide 22: Strong balance sheet allows for return of capital to shareholders
STRONG BALANCE SHEET ALLOWS FOR RETURN OF CAPITAL TO SHAREHOLDERS Liquidity Sources Share Repurchases ($ in millions) 701,860 $597 $840 $204 $159 $4,027 $1,052 $1,175 Q1 2025 Off Balance Sheet Custodial Deposits1 FHLB Borrowing Capacity Cash and Cash Equivalents Fed Discount Window Funds Unpledged I
Slide 23: Fiscal Year 2025 Guidance
FISCAL YEAR 2025 GUIDANCE1 $7.25- $7.75 EPS Assumes no additional rate cuts Effective tax rate 18-22% Includes expected share repurchases 1 Information on this slide is presented as of January 21, 2025, reflects the Company’s updated financial outlook, certain of the Company’s financial targets, and
Slide 24: Q&A
Q&A 24 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
Slide 25: Diversified noninterest income streams
FYTD 2025 REVENUE BREAKDOWN DIVERSIFIED NONINTEREST Net interest INCOME STREAMS income 67% Noninterest income represents 33% of year-to- Noninterest income date total revenue. 33% Majority of noninterest income fees are generated by the Company’s Partner Solutions business line. Other major item
Slide 26: Cost of deposits
COST OF DEPOSITS COST OF DEPOSITS 4.65% During the 2025 fiscal first quarter, approximately 60% of the deposit balances were subject to variable card processing expenses, derived from contractual agreements with certain Partner Solutions relationships tied to a rate index, typically the Effective
Slide 27: Loan portfolio interest rate sensitivity
TOTAL LOAN AND LEASE PORTFOLIO PRICING ATTRIBUTES1 4% LOAN PORTFOLIO INTEREST 34% RATE SENSITIVITY 62% As of December 31, 2024, $2.8B, or 62% of loans and leases contained floating or variable interest rates. Of these, $1.7B are tied to Fed Funds or Prime, with the remaining tied to either SOFR or
Slide 28: Equipment Finance
EQUIPMENT FINANCE COMMERCIAL FINANCE 7.46% 17% Q1 2025 Quarterly Yield1 Of Loan Portfolio Loan and lease financing to provide access to needed equipment ($ in millions) Business Line Balance Sheet Category 1Q24 4Q24 1Q25 Focus on equipment critical to business operations Lease financing $178.6 $
Slide 29: Working Capital Finance
WORKING CAPITAL FINANCE COMMERCIAL FINANCE 12.22% 21% Q1 2025 Quarterly Yield Of Loan Portfolio • Provides working capital for companies to meet short- term operational requirements ($ in millions) Business Line Balance Sheet Category 1Q24 4Q24 1Q25 • Primarily variable rate loans with majority of f
Slide 30: Structured Finance
STRUCTURED FINANCE COMMERCIAL FINANCE 6.60% 36% Q1 2025 Quarterly Yield1 Of Loan Portfolio • Funding small and midsized businesses, including rural borrowers ($ in millions) Business Line Balance Sheet Category 1Q24 4Q24 1Q25 • SBA, USDA, and conventional loans with fixed or Guaranteed portion of US
Slide 31: Consumer
13.05% 7% Q1 2025 Quarterly Yield Of Loan Portfolio CONSUMER ($ in millions) Business Line Balance Sheet Category 1Q24 4Q24 1Q25 Consumer Consumer finance $301.5 $248.8 $280.0 • Consumer credit programs with marketplace lenders TOTAL $301.5 $248.8 $280.0 offer Pathward a risk adjusted return • Prote
Slide 32: Warehouse
9.70% 14% Q1 2025 Quarterly Yield Of Loan Portfolio WAREHOUSE ($ in millions) Business Line Balance Sheet Category 1Q24 4Q24 1Q25 Warehouse Warehouse finance $349.9 $517.8 $624.3 • Asset-backed warehouse lines of credit used to TOTAL $349.9 $517.8 $624.3 support strategic initiatives • Lines are pri
Slide 33: Commercial Finance concentrations by industry
COMMERCIAL FINANCE CONCENTRATIONS BY INDUSTRY1 $ in millions Utilities $984 Finance and Insurance $875 Manufacturing $730 Transportation and Warehousing $369 Wholesale Trade $294 Mining, Quarrying, and Oil and Gas Extraction $255 Public Administration $117 Administrative and Support and Waste Manage
Slide 34: Interest rate risk management
INTEREST RATE RISK MANAGEMENT DECEMBER 31, 2024 Earning Asset Pricing Attributes1 • Data presented on this page is reflective of the Company’s asset mix at a point in time and calculated for regulatory purposes. Future rate Fixed Rate > 1 Year changes would impact a multitude of variables beyond the
Slide 35: Asset quality
ASSET QUALITY Adjusted Net Charge-Offs (“NCOs”)1 Nonperforming Assets (“NPAs”) Excludes Tax Services NCOs and Related Seasonal Average Loans ($ in millions) ($ in millions) 0.61% 0.70% 0.57% 0.63% 0.62% 0.53% 0.50% 0.49% 0.50% 0.45% 0.60% 0.49% 0.52% 0.43% 0.41% $42.4 $46.3 $43.0 $7.0 $7.3 $8.1 $37.
Slide 36: Capital and sources of liquidity
CAPITAL AND SOURCES OF LIQUIDITY Regulatory Capital as of December 31, 2024 Tier 1 Leverage Ratio Pathward Pathward, At December 31, 2024¹ Financial, Inc. N.A. 9.13% 9.36% 9.26% 9.44% 9.15% 9.42% Tier 1 Leverage 9.15% 9.42% 7.96% 8.15% 7.75% 7.92% Common Equity Tier 1 12.53% 13.16% Tier 1 Capital 12
Slide 37: Appendix
APPENDIX 37 Pathward Financial, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
Slide 38: Efficiency Ratio
EFFICIENCY RATIO Efficiency Ratio For the last twelve months ended ($ in thousands) Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Noninterest expense – GAAP 479,190 492,485 501,586 513,253 517,538 Net interest income 413,840 430,736 444,130 455,118 461,215 Noninterest income 303,5
Slide 39: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Net Income and Adjusted Earnings Per Share For the year ended ($ in thousands, except share and per share data) 2022 Net income – GAAP a 156,386 Less: Gain on sale of trademarks 50,000 Add: Rebranding expenses 13,148 Add: Separation related expenses 5,109 Add: Income
Slide 40: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the quarter ended ($ in thousands) Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Net charge-offs 5,486 (1,087) 6,582 35,626 8,573 Less: Tax services net charge-offs (recoveries) 851 (5,800)
Slide 41: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Net Interest Margin and Cost of Deposits For the quarter ended ($ in thousands) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Average interest earning assets 6,183,646 7,082,417 6,082,329 6,073,822 5,934,431 6,717,918 6,326,750 6,7
Slide 42: Definitions
DEFINITIONS Industry Terms Payment Players Commercial Lending Terms Banking-as-a-Service (BaaS): Acquiring Bank: Asset-Based Lending: Providing financial services and solutions to third An acquiring bank provides merchant accounts that allow a business to accept card Asset-Based Lending (ABL) refers