Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Q4 FY2021 Earnings Presentation
14 slides from Pathward Financial's earnings presentation, Oct 27, 2021
Slide 1: Quarterly Investor Update: Fourth Quarter & Fiscal Year End 2021
QUARTERLY INVESTOR UPDATE FOURTH QUARTER & FISCAL YEAR END 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This investor update contains “forward-looking statements” which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hop
Slide 3: We Strive to Increase Financial Availability, Choice, and Opportunity
WE STRIVE TO INCREASE FINANCIAL AVAILABILITY, CHOICE, AND OPPORTUNITY THROUGH FINANCIAL EMPOWERMENT. We work to disrupt traditional banking norms by developing partnerships with fintechs, affinity groups, government agencies, and other banks to make a range of quality financial products and services
Slide 4: Fourth Quarter Business Highlights & Key Strategic Initiatives
FOURTH QUARTER BUSINESS HIGHLIGHTS & KEY STRATEGIC INITIATIVES Optimize Optimize Optimize Interest-Earning Assets Deposits Operating Efficiencies Focus on commercial finance Reduced wholesale funding and Efficiency ratio improved to 62.5% business lines. borrowings by 77% from September from 64.0% a
Slide 5: Summary Financial Results
SUMMARY FINANCIAL RESULTS FOURTH QUARTER ENDED SEPTEMBER 30, 2021 INCOME STATEMENT ($ in thousands, except per share data) 4Q20 3Q21 4Q21 Net interest income 64,513 68,475 70,667 Provision for credit losses 8,980 4,612 8,775 Total noninterest income 40,750 62,453 49,542 Total noninterest expense 80,
Slide 6: BaaS Capabilities Generate Increasing Low-Cost Deposits and Revenue
BaaS CAPABILITIES GENERATE INCREASING LOW-COST DEPOSITS AND REVENUE Growth in BaaS deposits Growth in BaaS revenue Average Payments Deposits* % of Total Revenue ($ in billions) % of Payments Revenue ($ in millions) $50.0 $6.79 $45.0 33% $40.0 $35.0 27% $30.0 28% 10% $25.0 8% 11% Banking Services** $
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS FOURTH QUARTER ENDED SEPTEMBER 30, 2021 BALANCE SHEET PERIOD ENDING ($ in thousands) 4Q20 3Q21 4Q21 Cash and cash equivalents 427,367 720,243 314,019 Investments 1,360,712 1,981,852 1,921,568 Loans held for sale 183,577 87,905 56,194 Loans and leases (HFI)1 3,322,765 3,496,6
Slide 8: Diversified Earning Asset Portfolio
DIVERSIFIED EARNING ASSET PORTFOLIO At the Quarter Ended Quarterly Average Earning Asset Mix SEP 30, 2020 SEP 30, 2021 % in charts represent % of total interest earning assets ($ in thousands) 4Q20 4Q21 Y/Y Δ COMMERCIAL FINANCE 2,307,984 2,725,495 18% Term lending 805,323 961,019 19% Asset-based len
Slide 9: Overview of Loan Portfolio
OVERVIEW OF LOAN PORTFOLIO MRQ ($ in millions) Business Line Balance Sheet Category 4Q20 3Q21 4Q21 Yield Commercial Finance Guaranteed portion of US govt SBA/USDA loans SBA/USDA 54.9 71.9 61.9 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 44.5 48.6 89.8 Paycheck protection program loans SB
Slide 10: Asset Quality
ASSET QUALITY Nonperforming Assets (“NPAs”) Adjusted Net Charge-Offs (“NCOs”)¹ ($ in millions) Excludes Tax Services NCOs and Related Seasonal Average Loans 0.92% ($ in millions) 0.79% 0.73% 0.77% 0.64% 0.63% 0.48% 0.44% 0.44% 0.32% $61.8 $5.5 $48.0 $53.2 $46.7 $3.8 $7.0 $45.1 $3.8 $2.8 4Q20 1Q21 2Q
Slide 11: Interest Rate Risk Management
INTEREST RATE RISK MANAGEMENT SEPTEMBER 30, 2021 12-Month Interest Rate Sensitivity from Base Net Interest Income • Low-rate environment; focus is on reducing wholesale funding and deploying deposits into 35% positive carry opportunities. Parallel Shock Ramp • Interest rate risk shows asset sensitiv
Slide 12: Capital and Sources of Liquidity
CAPITAL AND SOURCES OF LIQUIDITY REGULATORY CAPITAL AS OF SEPTEMBER 30, 2021 Meta Financial MetaBank, Capital Ratio Trends At September 30, 2021¹ Group, Inc. N.A. Tier 1 Leverage Ratio Tier 1 Leverage 7.67% 8.69% 8.60% 8.69% Common Equity Tier 1 12.12% 14.11% 7.39% 7.83% 7.56% 7.67% Tier 1 Capital 1
Slide 13: Appendix
APPENDIX Meta Financial Group, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 13
Slide 14: Financial Measure Reconciliations
FINANCIAL MEASURE RECONCILIATIONS Efficiency Ratio For the last twelve months ended ($ in thousands) Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Noninterest Expense - GAAP 319,051 315,828 320,070 330,352 343,683 Net Interest Income 259,038 260,386 266,499 272,837 278,991 Noninte