Slide 1: 4Q13 Investor Update
4Q13 Investor UpdateDecember 2013 NASDAQ: CASH
Slide 2: Forward Looking Statements
Forward Looking Statements 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 contained in its filings w
Slide 3: Meta Management
Meta Management * J. Tyler Haahr Chairman and Chief Executive Officer, Meta Financial GroupTyler 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 honors at the Univers
Slide 4: Who we are …
Who we are … Assets *Strong Economy and Local Markets $1,283 MNetSpendMoney NetworkBlackhawk * $425 MIowaSouth Dakota MetaBank Retail Bank Meta Payment Systems Meta Financial Group Our Business Partners * Quarter Average * Fiscal Year End September 30
Slide 5: Who we are …
Who we are … Meta Financial Group, Inc.: (NASDAQ: “CASH”)Added to Russell 2000 Index in June 2013Top 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 magazineSandler O’Neill’s Small-Cap All Star listCost of funds adva
Slide 6: Strategic Direction
Strategic Direction Grow MPS DivisionScalable operating infrastructureLeverage low/no cost fundsDiverse product set: reloadable, payroll, gift, incentive and travelMPS “financial inclusion” programs for unbanked, underbankedExercise “Early Adopter” advantage in regulatory complianceEnsure strong cre
Slide 7: Compliance and Oversight Systems
Compliance and Oversight Systems Early adopter of sophisticated compliance systemsInvestments in program design, training and technologyImplemented enhanced BSA/AML technologyEnhanced infrastructure will support growth with moderating expensesHigh competitive barriers to entryExpertise, Capital, Com
Slide 8: Growing our business
Growing our business Capitalizing on synergies: community banking, MPSMPS provides MFG over $1.2 billion in no-cost funds High growth industry segmentMaterial benefits as interest rates normalizeLeveraging MPS leadership in prepaid card segmentHigh growth industryMeta sponsors approximately 70% of U
Slide 9: Deposits and Cost of Funds
Deposits and Cost of Funds * September Average Deposits Deposits ($millions) Cost of Funds
Slide 10: Retail Bank
Retail Bank Successful regional enterpriseOver a half-century in business 11 locations in Iowa and S. DakotaStable, profitable operationsStrong, loyal customer baseDiverse customer base Attractive combination of retail, commercial and agricultural Expect loan growth to continue to be robust into 201
Slide 11: Where MetaBank is located
* Where MetaBank is located BrookingsSioux FallsStorm LakeDes Moines
Slide 12: Financial Highlights
Financial Highlights Net Income$3.5 million in fourth quarter of fiscal 2013, +105% over prior yearStrong earnings profileROAA of 0.78% and ROAE of 9.31% for fiscal year 2013Very strong asset qualityNPAs markedly lower than peer group Increased franchise valueCompliance and risk management initiativ
Slide 13: Interest Rate Risk Management
Interest Rate Risk Management Positively leveraged for higher rate environmentAOCI volatile relative to peers; we believe current rules do not capture true value of the balance sheetMeta’s AOCI mark-to-market reflects ~80% of assets, much higher than typical “peer”Unrecognized value of zero cost dep
Slide 14: Capital Management
Capital Management Successfully raised $61.0 million in new capital since mid-2012$13.2 million in May 2012 – private placement$34.2 million in September 2012 – private placement$13.6 million in July-August 2013 – ATM offeringInvestors include existing and new shareholders, and strategic partnersOur
Slide 15: Earnings power while Growing equity
Earnings power while Growing equity * Fiscal year end September 30
Slide 16: Balance Sheet ($000s)
Balance Sheet ($000s) * FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Cash And Cash Equivalents $15,088 $47,778 $94,248 $132,149 $106,067 $73,733 Investments and MBS 218,189 345,574 511,011 615,320 998,826 1,176,811 Loans Receivable Net 425,633 395,065 369,563 314,484 329,689 364,100 Other Assets 110,58
Slide 17: Income Statement ($000s)
Income Statement ($000s) * Meta Financial Group FY2009 FY2010 FY2011 *FY2012 FY2013 Net Interest Income After Provision $9,106 $17,299 $34,034 $32,685 $36,022 Total Non Interest Income 79,969 97,444 57,491 69,574 55,503 Compensation and Benefits 32,743 32,529 30,467 31,104 34,106 Card Processing Exp
Slide 18: Total Assets
Total Assets * Quarter Average Fiscal Year End September 30 17.4% CAGR $millions
Slide 19: Total Net Loans
Total Net Loans * Quarter AverageFiscal Year End September 30 $millions
Slide 20: Non-Performing Assets
Non-Performing Assets * Fiscal Year End September 30 $millions of non-performing assets % of total assets
Slide 21: Total Revenue
Total Revenue * * $11.4M Gain on Sale of GNMA Securities $millions Fiscal Year End September 30
Slide 22: Total Net Income (Loss)
Total Net Income (Loss) * Fiscal Year End September 30 $millions * $11.4M Gain on Sale of GNMA Securities
Slide 23: Meta Value Proposition
Meta Value Proposition Leading issuer of prepaid debit cardsSpringboard into other products and servicesStrong capital positionCapacity to fund significant growth objectivesSteady dividend policy Positioned for upward trend in earningsNormalized interest rates and asset diversification~85% of deposi
Slide 24: Meta Financial Group
Meta® Financial Group’ NASDAQ; CASH