Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q2 FY2019 Earnings Presentation
18 slides from Pathward Financial's earnings presentation, Apr 25, 2019
Slide 1: Second Quarter Fiscal Year 2019
at iscal Year 2019 Meta® Financial Group’
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: Overview
Overview Second Quarter Ended March 31, 2019 Delivered strong second quarter earnings. Earnings per diluted share was $0.81 for the quarter. Significant items this quarter included: - $6.1 million, pre-tax, executive transition agreement expense, $0.12 per share after-tax - $6.6 million, after-tax,
Slide 4: Differentiated Approach to Driving Shareholder Value
Differentiated Approach to Driving Shareholder Value KEY Sen miei Of Optimize Earning Asset Improve Operating INITIATIVES Deposits Mix Efficiencies Replace lower yielding loans and Leverage payments division growth securities with higher yielding Improve efficiency ratio from opportunities loans cur
Slide 5: Tax Season Update
Tax Season Update 2019 Tax Season shows growth amid Government shutdown + Refund advance originations of $1.49 billion, up 18%, compared to the 2018 tax season - Higher originations driven by increased average loan sizes. - Approximate average loan size of $1,400 compared to $1,100 in 2018. Launch o
Slide 6: Differentiated Approach Creates Long-term Value
Differentiated Approach Creates Long-term Value Aspirational Target Qualitative Metrics * ROA > 2.0% + Efficiency ratio < 65% Long-Term Capital Management Options + Share repurchases — Authorized share repurchase program, up to 2,000,000 shares of outstanding common stock, effective May 1, 2019 - Se
Slide 7: Financial Highlights
Financial Highlights Second Quarter Fiscal Year 2019 | Nasdaq: CASH
Slide 8: Financial Highlights
Financial Highlights Second Quarter Ended March 31, 2019 + Net income of $32.1 million, or $0.81 per diluted share, for the quarter. + Net interest margin increased to 5.06% from 4.60% for the fiscal 2019 first quarter. Net interest margin, tax- equivalent, increased to 5.18% from 4.76% over that sa
Slide 9: Financial Highlights
Financial Highlights Second Quarter Ended March 31, 2019 Selected Quarterly Average Ear! Commercial Finance 6% 29% Consumer & Warehouse Finance 5% 9% <15% Community Bank 23% 21% <15% Investments 53% 30% <20% (4 Quarterly average, excludes Tax Services Loans and Cash & Fed Funds Sold Yields for the q
Slide 10: Scalable and Diversified Loan Portfolio
Scalable and Diversified Loan Portfolio National Commercial Lending Platforms Add Further Diversification All amounts presented are as of March 31, 2019 National Commercial Finance . Tax Servi Commercial finance portfolio National ee Community banking portfolio increased by 3.0% over linked- Consume
Slide 11: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Disciplined Credit Culture Continues to Drive Strong Asset Quality $ in millions $ in millions 41 Nonperforming Assets ("NPAs") 0.84% 0.86% 0.72% 0.73% 0.68% Ls al - = = 45.4 $36.1 $35.7 ieee = $409 2018 3Q18 4q18 1919 29019 Period Ended Horas —— NPAs/Assets N
Slide 12: Regulatory Capital
Regulatory Capital as of March 31, 2019 Strong capital remains above "well-capitalized" Regulatory Capital Ratios Tier 1 Leverage Common Equity Tier 1 Tier 1 RiskBased Total Risk Based Meta Financial Group, Inc. i Meta Financial Group, Inc. 1 MetaBank Miso Requrement 0 be Well-Capitalized under Prom
Slide 13: Investment Highlights
Investment Highlights Differentiated Model * Targeted niche commercial and consumer industries provide opportunities for growth Low-Cost Funding Advantage + National payments business drives low-cost deposits + Re-focused on increasing percentage of funding from core deposits Scalable Lending Platfo
Slide 14: Appendix
14 Appendix Second Quarter Fiscal Year 2019 | Nasdaq: CASH
Slide 15: Quarterly Income Statement
Quarterly Income Statement 2Q19 Change From ($ in millions, except per share data) 2918 1919 2919 1919 2018 $ % $ % Net Interest Income 27.4 60.3 71.4 14.4 18% 43.9 160 % Card & Deposit Fee Income 27.8 21.3 25.4 3.9 18% (2.7) (10)% Refund Transfer Product Fee Income 33.8 0.3 31.6 31.3 NM (2.2) (7)%
Slide 16: Average Balance Sheet
Average Balance Sheet Fiscal Quarter Average - Quarter Ended March 31,2018 June 30,2018 Sept. 30,2018 _Deo. 31,2018 March 31, 2019 2Q19 Change From ($ in millions) 2Q18 3Q18 4Q18 1Q19 2Q19 1919 2918 $ % $ % Cash and fed funds sold 132 57 61 45 281 236 519 % 149 112% Total Investments 2,263 2,254 2,2
Slide 17: Tax Services Products
Tax Services Products Offer a wide range of tax products, including: Electronic Return Originator ("ERO") Advances Short-term, small business loan typically utilized by independent tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. Ge
Slide 18: Experienced Management Team
Experienced Management Team Industry MetaBank Experience Experience Executive Officers jor Experience (years) (years) Brad Hanson ; President and Chief Executive Officer President at MetaBank Prior experience in financial services, including numerous banking, payment card 29 15 industry and technolo
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