Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Raymond James U.S. Bank Conference 2013
24 slides from Pathward Financial's conference presentation, Aug 20, 2013
Slide 1: Raymond James U.S. Bank Conference August 2013
Meta®@ Financial Group’ Raymond James ‘USS. Bank Conference ‘August 2013
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
Slide 3: Meta Management
Meta Management * J. Tyler Haahr Chairman, President and Chief Executive Officer, Meta Financial Group Tyler 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
Slide 4: Who we are
Who we are … Assets Strong Economy and Local Markets $1,318 M NetSpend Money Network Blackhawk * $341 M Iowa South Dakota MetaBank Retail Bank Meta Payment Systems Meta Financial Group Solid Partners
Slide 5: Who we are
Who we are … Meta Financial Group (NASDAQ: CASH) Added to Russell 2000 Index in June 2013 Top 5 in ABA Banking Journal’s annual Performance Ranking for $1B-$10B banks Sandler O’Neill’s Small-Cap All Star list Unique cost of funds advantage of 0.17% at 06/30/13 (MetaBank) Retail Bank Solid community
Slide 6: Strategic Direction
Strategic Direction Grow MPS Division Scalable operating infrastructure Leverage low/no cost funds Diverse product set: reloadable, payroll, gift, incentive and travel MPS “financial inclusion” programs for unbanked, underbanked Exercise “Early Adopter” advantage in regulatory compliance Ensure stro
Slide 7: Compliance and Oversight Systems
Compliance and Oversight Systems Early adopter of sophisticated compliance systems Investments in program design, training and technology Implemented enhanced BSA/AML technology Enhanced infrastructure will support growth with moderating expenses High competitive barriers to entry Expertise, Capital
Slide 8: Growing our business
Growing our business Capitalizing on synergies: community banking, MPS MPS provides MFG over $1.1 billion in no-cost funds High growth industry segment Material benefits as interest rates normalize Leveraging MPS leadership in prepaid card segment High growth industry Meta sponsors 70% of U.S. “whit
Slide 9: Total Deposits
Total Deposits * Fiscal Year End September 30 Deposits-$millions Cost of Funds
Slide 10: Retail Bank
Retail Bank Successful regional enterprise Over a half-century in business 11 locations in Iowa and S. Dakota Stable, profitable operations Strong, loyal customer base Diverse customer base Attractive combination of retail, commercial and agricultural Expect loan growth to increase going forward Ver
Slide 11: Where MetaBank is located
* Where MetaBank is located Brookings Sioux Falls Storm Lake Des Moines
Slide 12: Financial Highlights
Financial Highlights Net Income $3.7 million in third quarter of fiscal 2013, +53% over prior year Strong earnings profile ROAA of 0.77% and ROAE of 9.09% for third quarter 2013 Strong and improving asset quality NPAs markedly lower than peer group Increased franchise value Compliance and risk manag
Slide 13: Interest Rate Risk Management
Interest Rate Risk Management Positively leveraged for higher rate environment OCI overly volatile relative to peers as current rules do not capture true value of the balance sheet Meta mark includes ~80% of assets vs. typical “peer” at 20% Unrecognized value of zero cost deposits Expect securities
Slide 14: Capital Management
Capital Management Successfully raised $61.0 million in new capital $13.2 million in May 2012 – private placement $34.2 million in September 2012 – private placement $13.6 million in July-August 2013 – ATM offering Investors include existing and new shareholders, and strategic partners Maintain stro
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) * Sep08 Sep09 Sep10 Sep11 Sep12 Jun13* Cash And Cash Equivalents 15,088 47,778 94,248 132,149 106,067 62,211 Investments and MBS 218,189 345,574 511,011 615,320 998,826 1,248,482 Loans Receivable Net 425,633 395,065 369,563 314,484 329,689 335,936 Other Assets 110,585 93,409 64
Slide 17: Income Statement ($000s)
Income Statement ($000s) * Meta Financial Group 2009 2010 2011 2012 3Q13* 3Q12* Net Interest Income After Provision 9,106 17,299 34,034 32,685 9,159 8,142 Total Non Interest Income 79,969 97,444 57,491 69,574 13,559 13,706 Compensation and Benefits 32,743 32,529 30,467 31,104 8,524 8,236 Card Proces
Slide 18: Total Assets
Total Assets * Quarter Average Fiscal Year End September 30 18.6% CAGR $millions
Slide 19: Total Net Loans
Total Net Loans * Quarter Average Fiscal 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 * Fiscal Year End September 30 $millions
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 cards Springboard into other products and services Strong capital position Capacity to fund significant growth objectives Steady dividend policy Potential for sharp upward trend in earnings Normalized interest rates and asset diversification ~85
Slide 24: Meta Financial Group
Meta® Financial Group’ NASDAQ: CASH
Meta Financial Group — Raymond James U.S. Bank Conference 2013 on 6ix