Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q1 FY2014 Earnings Presentation
23 slides from Pathward Financial's earnings presentation, Feb 4, 2014
Slide 1: Meta Financial Group
Meta® Financial Group”
Slide 2: Forward Looking Statements
Meta® Forward Looking Statements Finals Coa Corporate Profile: Meta Financial Group, Inc.®, {*Meta Financial” or the “Company") and its wholly-owned subsidiary, MetaBank™ (the “Bank” or “"MetaBank"), may from time to time make written or oral “forward-looking statements,” including statements contai
Slide 3: Meta Financial Group Management
Meta® Meta Management Financial Group J. Tyler Haahr Chairman and Chief Executive Officer, Meta Financial Group Tyler Haahr has been with Meta Financial Group since March 1997. Previously he was a partner with the law firm of Lewis and Roca LLP, Phoenix, Arizona. Tyler received his B.S. degree with
Slide 4: Meta Financial Group overview: assets, markets and partners
els) Wh oO we a re eee Financial Group’ Y systems Assets* = $1,317 M Strong * lowa » NetSpend Business Economy * South Dakota = Money Network Partners and Local = Blackhawk Markets * Quarter Average * Quarter End December 31, 2013
Slide 5: Who we are
Meta® Who we are eee Financial Group = Meta Financial Group: (NASDAQ: CASH) Added to Russell 2000 Index in June 2013 Top 5 in ABA Banking Journal’s annual Performance Ranking for $1B-$10B banks #7 ranked bank in the U.S. for fee income per Bank Director magazine Sandler O’Neill’s Small-Cap All Star
Slide 6: Strategic Goals
Meta® Strategic Goals Financed Group = Grow MPS Division = Scalable operating infrastructure = Leverage low and no cost funds = Diverse product set: reloadable, payroll, gift, incentive and travel = MPS “financial inclusion” programs for unbanked, underbanked Exercise “Early Adopter” advantage in re
Slide 7: Compliance and Oversight Systems
Compliance and Oversight Systems Meta® Financial Group = Early adopter of sophisticated compliance systems = Investments in program design, training and technology = Implemented enhanced BSA/AML technology = Enhanced infrastructure expected to support growth with moderating expenses = Shift investme
Slide 8: Growing our business
Meta® Growing our business Financed Group = Capitalizing on synergies: community banking, MPS = MPS provides MFG over $1.2 billion in no-cost funds = High growth industry segment = Expect material benefits as interest rates rise = Leveraging MPS leadership in prepaid card segment = High growth indus
Slide 9: Deposits and Cost of Funds
Deposits and Cost of Funds Financial Group’ 1,600 1.20% a 6 1.00% = 1,200 . a Ge 0.80% — 2 or fm % 800 0.60% o q a 0.40% — 400 Ae 0.20% 0) ; 1 1 1 1 0.00% FY09 FY10 Eyad EYd2 FY13, FY13Q1 FY14Q1 GEBank MEMPS —Cost of Funds
Slide 10: Retail Bank
Retail Bank Meta® Financial Group = Successful regional enterprise = 60 years in business; strong, loyal customer base = 11 locations in lowa and South Dakota = Growing, profitable operations = Diverse customer base = Attractive combination of retail, commercial and agricultural = Loan growth of 27%
Slide 11: Where MetaBank is located
Where MetaBank is located Brookings NORTH DAKOTA Sioux Falls "MINNESOTA SOUTH DAKO ; Storm Lake & ~ h— Des Moines
Slide 12: Financial Highlights
Financial Highlights Meta® = Net Income = $4.0 million in fiscal 2014 first quarter, +28% over prior year’s comparable quarter = Strong earnings profile = ROAA of 0.9% and ROAE of 10.89% for 1014 = Very Strong asset quality = NPAs markedly lower than peer group at 0.04% of total assets = Increased m
Slide 13: Interest Rate Risk Management
Meta® Interest Rate Risk Management Financial Group = Positively leveraged for higher rate environment = OCI overly volatile relative to peers; current rules do not capture true value of the balance sheet = Meta mark includes ~80% of assets vs. typical “peer” at 20% = Unrecognized value of low or ze
Slide 14: Capital Management
Capital Management Meta® Financial Group = Successfully raised $61.0 million in new capital = $13.2 million in May 2012 - private placement = $34.2 million in September 2012 — private placement = $13.6 million in July-August 2013 — ATM offering = Investors include existing and new shareholders, and
Slide 15: Earnings power while growing equity
Earnings power while Growing equity Meta® Financial Group 4 30 3 25 £ o s + 20 & ce is 5 2 ca 2 oy a 7 Lowa % rai x £1 3 o L 190 a a uw uw ¥ L 5 Sil 10) FYO9 FY10 FYI RY 12: == DilutedEPS —=Book Value/Share Fiscal year end of September 30 FY13 14
Slide 16: Balance Sheet ($000s)
Meta® Balance Sheet ($000s) Financial Group’ Sep10 Sepl11 Sep12_— Sep13._Dec13* Cash And Cash Equivalents 94,248 132,149 106,067 73,733 69,920 Investments and MBS 511,011 615,320 998,826 1,176,811 1,154,662 Loans Receivable Net 369,563 314,484 329,689 364,100 325,625 Other Assets 64,037 64,825 61,41
Slide 17: Income Statement ($000s)
Income Statement (s000s) Meta® Financial Group Meta Financial Group 2010 © 2011:«*2012.-~S 2013: 20131 Net Interest Income After Provision 17,299 34,034 32,685 36,022 «8,797 Total Non Interest Income 97,444 57,491 69,574 55,503 13,410 Compensation and Benefits 32,529 30,467 31,104 34,106 8,277 Card
Slide 18: Total Assets
Meta® Total Assets Financial Group FY09. FY10 [pvalie FY12 Pls) Fy14qQ1 + Quarter Average + Fiscal Year End of September 30 7
Slide 19: Total Net Loans
Total Net Loans Meta® > 500 400 300 200 ie} FY13 Fy14qQ1 ry < ° + Quarter Average + Fiscal Year End of September 30 18
Slide 20: Non-Performing Assets
Non-Performing Assets Meta@ > 2 $18.0 3.00% Ue 2 ce Fue L 2.50% 2 = ” E $12.0 2.00% % ce & G 2 e 1.76% $14.7 1.24% r 1.50% g ro) se E $6.0 1.00% % Le) & = $26 $08 F 0.50% £ 0.05% 0.04% oo 0.16: E $0.0 : 1 : ; ; 0.00% Uy FYo9 FY10 Fy11 FY12 BYa3: Fy14qQ1 —S of NPA ==—=% of Total Fiscal Year End Septe
Slide 21: Total Revenue
Total Revenue Meta® 150 100 ; ' iB REREER EE FYO9. FY10 BYAL Fy12* Fy13— FY13Q1 FY14Q1 BAIl Other Revenue MMPS Non-Interest Income * $11. 4M Gain on Sale of GNMA Securities Fiscal Year End September 30 20
Slide 22: Meta Value Proposition
Meta Value Proposition = Leading issuer of prepaid debit cards = Springboard into other products and services = Strong capital position = Capacity to fund our growth objectives = Steady dividend policy = Potential for upward trend in earnings = Normalized interest rates = Asset diversification = ~85
Slide 23: NASDAQ: CASH
Meta® Financial Group’ NASDAQ; CASH
Meta Financial Group — Q1 FY2014 Earnings Presentation on 6ix