Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Sandler O'Neill + Partners 2012 East Coast Financial Services Conference
22 slides from Pathward Financial's conference presentation, Nov 16, 2012
Slide 1: Sandler O'Neill + Partners 2012 East Coast Financial Services Conference
NASDAQ: CASH Sandler O’Neill + Partners 2012 East Coast Financial Services Conference November 15, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements Corporate Profile: Meta Financial Group, Inc. ®, ("Meta Financial" or the "Company") is the holding company for its wholly-owned subsidiary MetaBank™ (the "Bank" or "MetaBank"). MetaBank is a federally-chartered savings bank with four market areas: Northwest Iowa Market, B
Slide 3: Meta Management
Meta Management J. Tyler Haahr Chairman, President and Chief Executive Officer Brad C. Hanson President, Meta Payment Systems David W. Leedom Chief Financial Officer
Slide 4: Who we are
Who we are … Meta Financial Group (NASDAQ: CASH) Sandler O’Neill’s Small-Cap All Star list Solid community bank MetaBank Iowa, South Dakota Unique cost of funds advantage Dynamic payment systems division Meta Payment Systems (MPS) Industry leader - 40% CAGR Top US Prepaid Card Issuer
Slide 5: Strategic Direction
Strategic Direction Grow MPS Division Scalable operating infrastructure Leverage low/no cost funds Diverse product set: reloadable, payroll, gift, incentive and travel Exercise “First Mover” advantage in regulatory compliance Provide broader access to card, banking services at modest cost Ensure str
Slide 6: Growing our business
Growing our business Capitalizing on synergies: community banking, MPS MPS provides MFG with over $1.0 billion in no-cost funds Annual growth of 30%+ Material benefits as interest rates normalize Leveraging MPS leadership in prepaid card segment Industry growth forecast at 40% Meta sponsors 70% of U
Slide 7: Total Deposits
Total Deposits FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 $millions
Slide 8: MPS Oversight Systems
MPS Oversight Systems Early adopter of “financial inclusion” and compliance Investments in program design, training and technology MPS now “best in class” Goal/opportunity to serve much broader spectrum of consumers Substantial progress continues on regulatory issues High competitive barriers to ent
Slide 9: Retail Bank
Retail Bank Successful regional enterprise Over a half-century in business 12 locations in Iowa and S. Dakota Stable, profitable operations Strong, loyal customer base Diverse customer base Attractive combination of retail, commercial and agricultural Very strong and improving credit quality Loan to
Slide 10: Where we are located
Where we are located Brookings (1) Sioux Falls (3) Storm Lake (2) Des Moines (6) Sioux Falls
Slide 11: Financial Highlights
Financial Highlights Strong earnings profile ROA of 1.5% and ROE of 23.6% for the nine months ending June 2012 Strong and improving asset quality NPAs markedly lower than peer group Increased franchise value Compliance and risk management initiatives Capital management Capital raise supports organic
Slide 12: Growing equity
Growing equity FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 10 5 0 -5 $ $ EPS Book Value/Share
Slide 13: Capital Management
Capital Management Private placements raised $47.4 million in new capital $13.2 million in May $34.2 million in September Investors include existing shareholders, strategic partners, others Maintain high capital ratios Tier 1 in excess of 8% Risk-Based over 20% Support current and expected growth Ba
Slide 14: Income Statement ($000s)
Income Statement ($000s) Meta Financial Group 2007 2008 2009 2010 2011 2012 Jun YTD Net Interest Income After Provision 17,639 21,288 9,106 17,299 34,034 25,292 Total Non Interest Income 21,858 37,696 79,969 97,444 57,491 56,169 Compensation and Benefits 18,248 25,731 32,744 32,529 30,467 23,469 Car
Slide 15: Income Statement ($000s)
Income Statement (s000s) Meta® Financial Group > Meta Financial Group 2007 2008 +2009 += 2010 Net Interest Income After Provision 17,639 21,288 9,106 17,299 Total Non Interest Income 21,858 37,696 79,969 97,444 Compensation and Benefits 18,248 25,731 32,744 32,529 Card Processing Expense 6,377 15,63
Slide 16: Total Assets
Total Assets FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 $
Slide 17: Total Net Loans
Total Net Loans FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 $
Slide 18: Non-Performing Assets
Non-Performing Assets * Fiscal Year End September 30 $
Slide 19: Total Revenue
Total Revenue FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 $
Slide 20: Total Net Income (Loss)
Total Net Income (Loss) FY07 FY08 FY09 FY10 FY11 FY12 (Jun)* * Fiscal Year End September 30 $
Slide 21: Meta Value Proposition
Meta Value Proposition Leader in consumer regulatory compliance Higher profile as needed controls and processes instituted No. 1 issuer of debit cards Springboard into other products and services Strong capital position Capacity to fund significant growth objectives Steady dividend policy Yield of 2
Slide 22: Meta Financial Group
Meta® Financial Group’ NASDAQ: CASH