Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q2 FY2017 Earnings Presentation
14 slides from Pathward Financial's earnings presentation, May 17, 2017
Slide 1: Meta Financial Group Overview Second Quarter 2017 Update
Meta Financial Group OverviewSecond Quarter 2017 Update
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Meta Financial Group, Inc.® (the “Company”) 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 presentation, the Company’s filings with the Securities an
Slide 3: The Meta Ecosystem
The Meta Ecosystem 3 Retail Banking Prepaid/ATM/Other Tax Services Specialty Finance Banking Payments Refund Advantage (RA)EPS Financial (EPS)Specialty Consumer Services (SCS) Meta Payment Systems MetaBank – Branches located in Iowa and South Dakota Premium FinanceAFS/IBEXStudent Loan Portfolio Purc
Slide 4: Company Overview
4 Company Overview Prepaid division generates fee income with low-cost, long duration deposit base Prepaid low-cost deposit base provides competitive advantage to obtain high quality credits and attractive terms for the Retail Bank and Specialty Finance divisions In addition to funding high-quality
Slide 5: Prepaid/ATM/Other division overview
Prepaid division generates fee income with low-cost, long duration deposit base by providing innovative financial solutions that change the way people use, borrow and manage moneyProducts delivered nationally through relationships with market-leading companiesListed among top general purpose and com
Slide 6: Tax services division overview
Tax services division offers interest-free refund advance loans, tax refund-transfer (RT) solutions and provides a new distribution channel for prepaid products and other servicesRA and EPS, combined, had relationships with majority of independent Electronic Return Originators for the 2017 tax seaso
Slide 7: Payments - Products
7 Payments - Products Prepaid Cards90% of total deposits are non-interest bearing with a 7 year average lifeCard Product SuiteGeneral Purpose Reloadable (GPR)Gift ● Payroll ● Benefit ● VirtualLoyalty/Award/Promotional (LAP) ATM SponsorshipProvides small businesses access to national and regional deb
Slide 8: Specialty Finance division overview
Specialty finance division provides outlet to deploy prepaid low-cost deposits at higher yields than alternative investments while low-cost deposit base also provides competitive advantage to obtain high quality credit and attractive termsPremium Finance - Loans to commercial businesses to fund thei
Slide 9: Retail Banking division overview
Prepaid low-cost deposit base provides competitive advantage to obtain high quality credit and attractive terms in the Retail Banking divisionGrowing, profitable operationsLoan growth of 19-30% YoY each quarter, for over 4 yearsCore deposits (checking, savings, money market) have also seen double di
Slide 10: Competitive Landscape
Competitive Landscape 10 Early adopter of sophisticated compliance systemsInvestments in program design, training and technologyImplemented enhanced BSA/AML technologyEnhanced infrastructure supports growthThese prior investments allow more focus on growing current business and new development oppor
Slide 11: Industry Recognition
11 Industry Recognition Top 40 of ACH originators in 2016 (April 2017)Top 30 of ACH receivers in 2016 (April 2017) Second largest prepaid card issuer in the U.S. ranked by purchase volume (2015) #1 Top Growth Bank (May 2016)Named Top Community Bank (Aug 2016) EPS Financial Business of the Year 2016
Slide 12: Five Year Financial History
12 Five Year Financial History NASDAQ Traded (CASH) Market capitalization grew from approximately $60 million to over $800 millionMarch 31, 2012 – March 31, 2017 Growing Asset Base Quarterly average assets grew from $1.4 billion to over $4.4 billion 5 year average asset CAGR of 25%March 31, 2012 – M
Slide 13: Quarterly Earnings
13 Quarterly Earnings Quarterly net income of $32.1MM, compared to $14.3MM in Q2FY16 Diluted EPS of $3.42 ROAA of 2.91% and ROAE of 32.86% Net Interest Income (NII) Quarterly NII of $24.0MM, increase of 20% over Q2FY16 Non-interest Income Tax product fee income increased $42.5MM, or 202% over Q2FY16
Slide 14: Growth Highlights ($MM)
Growth Highlights ($MM) 14 Show continued growth in average assets and net income as Meta continues to execute on its strategic plan and provide value to shareholders CAGR 25%
Meta Financial Group — Q2 FY2017 Earnings Presentation on 6ix