Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q3 FY2016 Earnings Presentation
26 slides from Pathward Financial's earnings presentation, Jul 25, 2016
Slide 1: Investor Update Third Quarter, Fiscal Year 2016
Investor Update Third Quarter, Fiscal Year 2016 Meta® Financial Group
Slide 2: Forward Looking Statements
Forward Looking Statements Meta Financial Group, Inc.® (‘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 this investor update, the Company's filings with th
Slide 3: Meta Senior Management Group
Meta® Meta Senior Management Fanci Grou " SS J. TYLER HAAHR Chairman and Chief Executive Officer Tyler Haahr has been with Meta Financial Group since 1997. Previously, he was a partner with the law firm of Lewis and Roca LLP, Phoenix, Arizona. Tyler received his B.S. degree in Accounting with honors
Slide 4: Meta Financial Group Highlights
Meta Financial Group Highlights Meta® Financial Group Net Income ($MM) Net Income (SQFY16 vs 3QFY15) Twelve Months Endi Nine Months Endi + Strong quarterly earnings for 3QFY16; Net Income $8.9MM ‘elve Months Ending ine Months Ending + Year-overyear growth of 91% Earnings Profile + Sizable and rapidl
Slide 5: Non-Performing Assets
Non-Performing Assets Meta® Financial Group a ———— Very strong asset quality 0.07% assets at 1.20% 1.00% 0.80% 0.60% % of Total Assets 0.40% Non-Performing Assets ($MM) 0.20% 0.00% Fyi. Fy12 Fy13 Fyad Fy15 3QFY15 3QFY16 Bs ornea te sof Total Assets
Slide 6: Who We Are
Who We Are Meta® Financial Group UT ee CC META FINANCIAL GROUP, INC METABANK BANKING PAYMENTS RETAIL BANK AFS/IBEX* META PAYMENT SYSTEMS* | REFUND ADVANTAGE* *Adivision of MetaBank Banking Payments Growing community bank in regions with strong nice prone eoeneaneran us + Retail Operations based in l
Slide 7: Footprint Map
Footprint Map Meta@) rooting 5 SloucFts, 50 Stoo he IA Quer rca MAP KEY © rien roi coupes ramen tons nesoarktionces nestsexotices © retan nronage orice
Slide 8: Banking - Retail Bank
Banking - Retail Bank Meta®@ Financial Group ey Retail Bank Regional Community Bank * Growing, profitable operations * Attractive combination of commercial, agricultural, retail and national insurance premium lending * Low-cost deposit base gives Bank competitive advantage on terms to attract high q
Slide 9: Banking - AFS/IBEX
Banking - AFS/IBEX Meta® Financial Group LS AFS/IBEX Loans to commercial businesses to fund their property, casualty, and liability insurance premiums * Short duration assets * Higher yields than alternative investments, particularly for the term * Loans generally priced as a spread to Prime, reset
Slide 10: Payments - Meta Payment Systems (MPS)
Meta® Financial Group” Payments - Meta Payment Systems (MPS) es hE Overview Prepaid card industry leader with payments diversification Continuing to grow “annuity”-like stream of fee income Adjacent and complementary new product introduction * Refund Advantage® - Tax channel * Additional MPS distrib
Slide 11: Payments - Refund Advantage
Payments - Refund Advantage® Meta® Financial Group” Refund Advantage® + Asset acquisition completed 4QFY15 * Offers tax refund-transfer (RTs) solutions through ACH direct deposit, check, and prepaid card * Growth enhanced by new creditadvance product * Processed a record number of RTs in 2QFY16 * On
Slide 12: Industry Recognition
Industry Recognition Meta®@ Financial Group Bank Director ?NILSQN REPORT #1 Top Growth Bank (May 2016) S NACHA Tuinnacttninaue —-SCONA largest prepaid card issuerin the U.S. ranked by Top 50 of ACH originators in 2015 purchase volume (2015) AMERICAN BANKER, Top 30 of ACH receivers in 2015 magazine”
Slide 13: Growth Drivers and Goals
Growth Drivers and Goals Meta® Financial Group Cees synergies: Banking and Payments Strong loan growth in local markets and AFS/IBEX; over 31% YoY growth * Continue to improve upon earning asset mix * Low cost deposits with long average life (approximately seven years) feed increasingly diverse asse
Slide 14: Earning Asset Mix & Net Interest Margin
Meta® Earning Asset Mix & Net Interest Margin Hla pte 3.27% 286% = A bps 2698 wiv Expansion 2.15% —Net Interest Margin 1.75% — Qtr Avg 10 Year Treasury b p S 3014 4014 «1015 «2015-3015 «4015-1916» 2Q16 =—-3Q16 +10 Year Treasury Yield a Q zs 2 e _ 2 2 ‘ Declined (Qtr Average) 8 2. % Earning Asset Mix
Slide 15: Assets - Earning Asset Mix
Assets - Earning Asset Mix Meta® Financial Group (Sy Total Assets* (SMM) 23.5% Total Investments* (SMM) $3,068 Asset Compound Annual Growth $2,004 Rate (CAGR) $2,447 $2,002 $1,713 $1,496 $1,127 4Ql1 4012, -4Q13, aaa Qs 3q16 4Q11 4Q12,—= «43. aad 4q15 3016 Bi Morgage Backed Secures Bi Municip securti
Slide 16: Total Gross Loans
Total Gross Loans Meta®@ Financial Group Loan Composition* Loan Portfolio* (SMM) Poon At June 20, 2016 4011 4012, 4Q13.—sagd = agus agus, Wi commerciatresiestse fl Consumer I esigertia Realestate Hi -ricuturai/Commercia! Operating Agricultural RealEstate Bl Premium Finsnce Fiscal Quarter Average 16
Slide 17: Deposits and Cost of Funds
Deposits and Cost of Funds Meta® Financial Group Low Cost of Funds seal a . 0.13% _ is Cost of Funds in 3Q16 = Te g Peers ome 5 er : 5 $1,276 = 2 2 ‘o 0.60% . 3 3 3 cr 3 a ithe me eioone 4Q44 4Q12 4913 4Q14 4915 3Q16 mmm Bank MPS =#=Cost of Funds Fiscal Quarter Average 4
Slide 18: Earnings Power While Growing Equity
Earnings Power While Growing Equity Meta® Financial Group $4.00 $30.00 $3.50 2 5 2 $3.00 $25.00 = : a & os a 2 5 $2.50 . a $20.00 Zz o g 2 s200 3 3 2 & 315.00 a “51.50 £ ‘o 3 2 2 Fy S $100 sio00 oF * a $0.50 $5.00 3Qf1 (3Q12 3Q13 3Q14 3915 (3916 -$050 $0.00 —Diluted PS | ——Tangible Book Value/Share
Slide 19: Infrastructure
Infrastructure Meta® Financial Group Early adopter of sophisticated compliance systems Investments in MPS program design, training and technology High competi Implemented enhanced BSA/AML technology Enhanced infrastructure supports growth These prior investments allow more focus on growing current b
Slide 20: Interest Rate Risk Management
Interest Rate Risk Management Meta® Financial Group Positively leveraged for higher rate environment Other Comprehensive Income volatile relative to peers * We believe GAAP understates balance sheet true value, particularly low-cost deposits * Meta MTM of ~50% of assets available for sale (securitie
Slide 21: Interest Rate Sensitivity - What We Believe
Interest Rate Sensitivity - What We Believe Meta®@ Financial Group SS Static interest rate risk results do not accurately reflect Meta’s true interest rate sensitivity due to our unique and historically predictable deposit base * Due to historically predictable weekly, monthly, and yearly deposit vo
Slide 22: Capital Management
Capital Management Meta® Financial Group es hE Overview Regulatory Capital Ratios Capital enhancement history At Len0 29; 2018" m Meta Financial * $26.1 million and $11.7 million private Group, Inc. placements supporting Refund Advantage = MetaBank 18.88% 45 5004 acquisition and other growth in 2015
Slide 23: Meta's Value Proposition
Meta’s Value Proposition Meta® Financial Group SS A leading issuer of prepaid debit cards * Springboard into other products and services * Significant growth; current partners expanding, new partners added, and new products implemented with more to come in 2016 and beyond Strong capital position * E
Slide 24: Appendix
Appendix 24
Slide 25: Income Statement
Meta® Income Statement Hla pte es hE Fiscal Year Ended September 30, Three Months Ended June 30, Meta Financial Group (emmy 2014 20121 | 2013? | 2014 | 2015° Net Interest Income 343 33.7 36.0 463 59.2 147° 199 35.9% Non-Interest Income 575 69.6 55.5 SLT 58.2 154 238 54.3% Total Revenue $918 $1033 $9
Slide 26: Balance Sheet
Balance Sheet Meta® Financial Group Fiscal Quarter Average Fiscal Quarter Average Meta Financial Group (sm) 4qi1 4Q12 4013 4gia 4Q15 3Q15 | 3016 | % Change Cash And Cash Equivalents 132 106 4 100 at 79 23 -70.9% Investments and MBS 615 999 477 1,320 1,534 1517 2,027 33.6% Loans Receivable Net 315 33
Meta Financial Group — Q3 FY2016 Earnings Presentation on 6ix