Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q1 FY2020 Earnings Presentation
17 slides from Pathward Financial's earnings presentation, Jan 29, 2020
Slide 1: Quarterly Investor Update First Quarter Fiscal Year 2020
Quarterly Investor Update First Quarter Fiscal Year 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements The Company and MetaBank 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 Securities and Exchange Commission (“SEC”), the Company’s reports to stockholders, and i
Slide 3: Business Developments First Quarter Ended December 31, 2019
Business Developments First Quarter Ended December 31, 2019 • On November 20, 2019, entered into a definitive agreement with Central Bank for the sale of the Community Bank division. – Sale includes all Community Bank deposits, branch locations, fixed assets and employees and a portion of the Commun
Slide 4: Differentiated Business Reduces Risk and Provides Growth Opportunities in Various Economic Environments
Differentiated Business Reduces Risk and Provides Growth Opportunities in Various Economic Environments Payments Loans Commercial Finance 7.32% • Tailored solutions enable Yield on Loans • Provide customized business payments providers to grow capital solutions for small-and their businesses and bui
Slide 5: Financial Highlights First Quarter Ended December 31, 2019
Financial Highlights First Quarter Ended December 31, 2019 INCOME STATEMENT ($ in thousands, except per share data) 1Q20 4Q19 1Q19 Net Interest Income 64,651 65,617 60,272 Provision for Loan and Lease Loss 3,407 4,121 9,099 • Net income of $21.1 million, or $0.56 per diluted share, for the quarter.
Slide 6: Compelling Asset Mix Driving Differentiated NIM Expansion
Compelling Asset Mix Driving Differentiated NIM Expansion 1 Earning Asset Mix Yields Aspirational Selected Quarterly Average December 2018 September 2019 December 2019 December 2019 Earning Asset Mix Commercial Finance 30% 36% 38% 9.00% >55% Consumer & Warehouse Finance 8% 12% 10% 7.45% <15% Communi
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio At the Quarter Ended Highlights December 31, 2019 September 30, 2019 December 31, 2018 1Q20 % Change From ($ in thousands) 1Q20 4Q19 1Q19 4Q19 1Q19 • Certain balances previously Commercial Finance 1,994,656 1,916,230 1,617,880 4% 23% included in asset-based lending and Ter
Slide 8: Commercial Finance Growth Engine
Commercial Finance Growth Engine Other SBA/USDA $99.6M Term Lending. Originate a variety of collateralized conventional term loans 7.11% $90.3M and notes receivable, with terms ranging from three to 25 years, generally 6.57% secured by equipment, recurring revenue streams, as well as real estate. Av
Slide 9: Disciplined Credit Culture Drives Strong Asset Quality
Disciplined Credit Culture Drives Strong Asset Quality 1 Excludes Tax Services NCOs and Related Seasonal Average Loans Tax Services NCOs and related seasonal average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the tax services business line. Chart
Slide 10: Earnings Power from Payments
Earnings Power from Payments Payments Card and Deposit Fee Income Breakout • Primary deposit source derived from Payments business line which generates stable, core deposits, including prepaid and demand deposit 9% solutions 12% • Payments deposits represented 60% of total average deposits for the f
Slide 11: Interest Rate Risk Management as of December 31, 2019
Interest Rate Risk Management as of December 31, 2019 12-Month Interest Rate Sensitivity from Base Net Interest Income 11% 9% Net Interest Income modeled under an instantaneous, 7% parallel rate shock and a gradual parallel ramp. 5% 3% Management also employs rigorous modeling techniques 1% under a
Slide 12: Regulatory Capital as of December 31, 2019
Regulatory Capital as of December 31, 2019 Strong capital remains above "well-capitalized" Capital Ratio Trends At December 31, 2019 Meta Financial Group, Inc. MetaBank Tier 1 Leverage 8.28% 9.70% Common Equity Tier 1 10.10% 12.18% Tier 1 Capital 10.46% 12.24% Total Capital 12.74% 12.90% Capital Dep
Slide 13: Strategy Update
Strategy Update 13 First Quarter Fiscal Year 2020 | Nasdaq: CASH
Slide 14: Strategy to Drive Shareholder Value
Strategy to Drive Shareholder Value 1 2 3 KEY Increase Percentage of Optimize Interest-Earning Improve Operating Funding from Core Asset Mix Efficiencies INITIATIVES Deposits Expense discipline by improving collaboration Leverage payments division growth Replace lower-yielding loans and securities w
Slide 15: Long-Term Value Drivers
Long-Term Value Drivers Differentiated Model • Target niche commercial and consumer industries to provide opportunities for growth Lower Cost Funding Advantage • National payments business drives stable, lower cost deposits • Re-focus on increasing percentage of funding from core deposits Scalable L
Slide 16: Appendix
Appendix 16 First Quarter Fiscal Year 2020 | Nasdaq: CASH
Slide 17: Financial Measure Reconciliations
Financial Measure Reconciliations Efficiency Ratio For the last twelve months ended ($ in thousands) Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Noninterest Expense - GAAP 334,663 333,160 323,657 300,242 258,485 Net Interest Income 268,586 264,207 247,127 208,570 164,625 Noninte
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