Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q2 FY2018 Earnings Presentation
16 slides from Pathward Financial's earnings presentation, 2018
Slide 1: Quarterly Investor Update
Quarterly Investor Update Second Quarter Fiscal Year 2018 Second Quarter 2018 | Nasdaq: CASH
Slide 2: Forward-Looking Statements
Forward-Looking Statements Meta Financial Group, Inc.® (the “Company” or "Meta") and its wholly-owned subsidiary, MetaBank® (the “Bank”), may from time to time make written or oral “forward-looking statements,” including statements contained in this investor update, the Company’s filings with the Se
Slide 3: Business Updates
Business Updates Crestmark Update • Transformational transaction combines two highly-profitable and high-growth earnings-driven cultures, providing national commercial and industrial lending platform and immediate pipeline of insurance premium financing business, while reducing seasonality of earnin
Slide 4: Financial Highlights
Financial Highlights Second Quarter Ended March 31, 2018 Earnings • Quarterly GAAP net income of $31.4 million(1), or $3.23 per diluted share • Quarterly return on average assets of 2.67% and return on average equity of 28.37% Net interest income ("NII") • Quarterly NII of $27.4 million, an increase
Slide 5: Continued Revenue Growth
Continued Revenue Growth Revenue +7.5% $124,824 $116,136 $97,419 $92,170 Total revenue for the fiscal 2018 second quarter was $124.8 million, compared to $116.1 million for the same quarter in 2017, an increase of $8.7 million, or 7.5% $ in millions Driven by: • Interest income from community bankin
Slide 6: Loan Balances Continue to Grow
Loan Balances Continue to Grow Driven by Commercial Insurance Premium Finance and Commercial Real Estate Gross Loans Receivable (1) +32% $1,511 $1,520 $1,327 $1,226 $1,152 • Excluding purchased student loan portfolios and refund advance loans, total loans receivable, net of allowance $ in millions f
Slide 7: Expanding National Lending Footprint
Expanding National Lending Footprint Consumer Financing Partnerships and Crestmark Acquisition Expected to Further Expand National Lending Portfolio National Lending Community Lending • $519.0 million National Lending • $1.0 billion in Community Bank Portfolio Loans $58.8 • Growth driven by Commerci
Slide 8: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Disciplined Credit Culture Continues to Drive Strong Asset Quality Nonperforming Assets ("NPAs") 1.17% Increase in NPAs, Y/Y, primarily related to a 0.12% 0.72% 0.61% 0.84% large, well-collateralized agricultural loan $ in millions $47.0 $37.9 $36.1 relationsh
Slide 9: Average Interest Earning Asset Mix Continues to Shift
Average Interest Earning Asset Mix Continues to Shift Higher Yielding Loans Replacing Lower Yielding Securities Average Interest Earning Assets Net Interest Margin ("NIM") Components Fiscal 2018 quarterly NIM is reflective of the lowered corporate prorated tax rate on the Company's tax-exempt munici
Slide 10: Tax Service Business Drives Fee Income
Tax Service Business Drives Fee Income Second Quarter NIM Affected by Interest-Free Refund Advance Loans Loan Yields 4.80% 4.73% 4.68% 4.64% 4.69% 4.55% 4.64% $97.4 4.53% $92.2 3.98% 3.90% Normalized NIM(1) for Q2-17 would NIM, tax equivalent(2) Normalized NIM(1) for Q2-18 would have been 3.29% - 3.
Slide 11: Meta's Unique Funding Advantage
Meta's Unique Funding Advantage Stable, Noninterest-bearing Deposits in a Rising Rate Environment Total average deposits for fiscal 2018 second quarter decreased 2% as reliance on wholesale deposits, which are utilized to target strategic maturities related to the Company's seasonal tax advance lend
Slide 12: Solid Capital Ratios Exceed Regulatory Requirements
Solid Capital Ratios Exceed Regulatory Requirements Prudent Capital Management, Flexibility to Source Future Needs to Maintain Strong Capital Ratios Regulatory Capital Ratios(1) March 31, 2018 18.48% 18.59% 17.43% 17.43% 14.18% 13.74% Minimum Requirement to 8.93% be Well-Capitalized under Prompt Cor
Slide 13: Appendix
Appendix 13 Second Quarter 2018 | Nasdaq: CASH
Slide 14: Income Statement
Income Statement Percent Three Months Ended Change Q2 Q3 Q4 Q1 Q2 Q2-18 vs. (dollars in thousands) March 2017 June 2017 Sept. 2017 Dec. 2017 March 2018 Q2-17 Net Interest Income 23,966 24,943 24,488 26,196 27,405 14 % Card Fee Income 26,547 23,052 26,694 25,247 26,856 1 % RT Product Fee Income 32,48
Slide 15: Average Balance Sheet
Average Balance Sheet Percent Fiscal Quarter Average Change Q2 Q3 Q4 Q1 Q2 Q2-18 vs. (dollars in thousands) March 2017 June 2017 Sept. 2017 Dec. 2017 March 2018 Q2-17 Cash and cash equivalents 404,688 50,235 85,158 120,491 207,701 (49)% Investment securities 1,593,130 1,614,529 1,595,587 1,593,754 1
Slide 16: Additional Information About the Proposed Transaction and Where to Find It
Additional Information About the Proposed Transaction and Where to Find It In connection with the proposed merger transaction, Meta has filed a registration statement on Form S-4 (file no. 333-223769) with the SEC, which includes a joint proxy statement of Meta and Crestmark, which also constitutes
Meta Financial Group — Q2 FY2018 Earnings Presentation on 6ix