Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q3 FY2018 Earnings Presentation
15 slides from Pathward Financial's earnings presentation, 2018
Slide 1: Quarterly Investor Update Third Quarter Fiscal Year 2018
Quarterly Investor Update Third Quarter Fiscal Year 2018 Third Quarter Fiscal 2018 | Nasdaq: CASH
Slide 2: Forward-Looking Statements
Forward-Looking Statements Meta Financial Group, Inc.® (the “Company” or "Meta") 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 investor update, the Company’s filings with the Se
Slide 3: Business Updates
Business Updates Crestmark Bancorp, Inc. Acquisition • Meta and Crestmark shareholders approved the transaction at their respective special meetings of shareholders held on May 29, 2018 and announced on June 28, 2018 that all bank regulatory approvals were received and expect to close acquisition of
Slide 4: Financial Highlights
Financial Highlights Third Quarter Ended June 30, 2018 Earnings • Quarterly GAAP net income of $6.8 million(1), or $0.70 per diluted share • Quarterly return on average assets of 0.64% and return on average equity of 6.11% Net interest income ("NII") • Quarterly NII of $28.4 million, an increase of
Slide 5: Year-over-Year Trend in Revenue Growth Continues
Year-over-Year Trend in Revenue Growth Continues Revenue +11% Total revenue for the fiscal 2018 third quarter was $61.6 $124,824 million, compared to $55.8 million for the same quarter in $97,419 2017, an increase of $5.8 million, or 11% Driven by: • Increased interest income from growth in communit
Slide 6: Lending Divisions Continue Growth Trends
Lending Divisions Continue Growth Trends Driven by Commercial Real Estate and Commercial Insurance Premium Finance Gross Loans Receivable (1) +31% $1,599 $1,511 $1,520 $1,327 $1,226 • Commercial insurance premium finance loan growth of 31%, Y/Y $ in millions • Community bank loan growth of 25%, Y/Y
Slide 7: Expanding National Lending Footprint
Expanding National Lending Footprint Consumer Financing and Anticipated Crestmark Acquisition Expected to Further Enhance Portfolio National Lending Community Lending • $550.2 million National Lending • Over $1.0 billion in Community Portfolio at June 30, 2018 Bank Loans • Growth driven by Commercia
Slide 8: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Disciplined Credit Culture Continues to Drive Strong Asset Quality Decrease in NPAs, Y/Y, primarily related to the Nonperforming Assets ("NPAs") payment in full of a previously disclosed $7.0 million nonperforming agricultural loan 1.17% 0.72% 0.84% 0.86% 0.61
Slide 9: Average Interest-Earning Asset Mix Continues to Shift
Average Interest-Earning Asset Mix Continues to Shift Higher Yielding Loans Replacing Lower Yielding Securities Average Interest-Earning Assets Net Interest Margin ("NIM") Components Fiscal 2018 quarterly NIM is reflective of the lowered corporate prorated tax rate on the Company's tax-exempt munici
Slide 10: Meta's Funding Advantage
Meta's Funding Advantage Stable, Non-interest-bearing Deposit Base Even in a Rising Rate Environment Total average deposits for fiscal 2018 third quarter increased 11%, primarily driven by growth in non-interest-bearing deposits Average non-interest-bearing deposits for the fiscal 2018 third quarter
Slide 11: Solid Capital Ratios Exceed Regulatory Requirements
Solid Capital Ratios Exceed Regulatory Requirements Prudent Capital Management and Flexibility to Source Future Needs to Maintain Strong Capital Ratios Regulatory Capital Ratios(1) June 30, 2018 18.37% 18.50% 17.57% 17.57% 14.35% 13.92% Minimum Requirement to 10.16% be Well-Capitalized under Prompt
Slide 12: Appendix
Appendix 12 Third Quarter Fiscal 2018 | Nasdaq: CASH
Slide 13: Income Statement
Income Statement Percent Three Months Ended Change Q3 Q4 Q1 Q2 Q3 Q3-18 vs. (dollars in thousands) June 30, 2017 Sept. 30, 2017 Dec. 31, 2017 March 31, 2018 June 30, 2018 Q3-17 Net Interest Income 24,943 24,488 26,196 27,405 28,411 14 % Card Fee Income 23,052 26,694 25,247 26,856 22,807 (1 )% Refund
Slide 14: Average Balance Sheet
Average Balance Sheet Fiscal Quarter Average Percent Quarter Ended Change Q3 Q4 Q1 Q2 Q3 Q3-18 vs. (dollars in thousands) June 30, 2017 Sept. 30, 2017 Dec. 31, 2017 March 31, 2018 June 30, 2018 Q3-17 Cash and cash equivalents 50,235 85,158 120,491 207,701 86,210 72 % Investment securities 1,614,529
Slide 15: Additional Information About the Transaction and Where to Find It
Additional Information About the Transaction and Where to Find It In connection with the merger transaction, Meta has filed a registration statement on Form S-4 (file no. 333-223769) with the SEC, which includes a joint proxy statement of Meta and Crestmark, which also constitutes a prospectus of Me
Meta Financial Group — Q3 FY2018 Earnings Presentation on 6ix