Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q3 2014 Earnings Presentation
24 slides from Pathward Financial's earnings presentation, Jul 30, 2014
Slide 1: 3Q14 Investor Update
3Q14 Investor UpdateJuly 2014 NASDAQ: CASH
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 and Chief Executive Officer, Meta Financial GroupTyler 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 the Univers
Slide 4: Who we are …
Who we are … Loans *Strong Economy and Local Markets $1,278 MNetSpendMoney NetworkBlackhawkSeveral Dozen Others * $460 MIowaSouth Dakota MetaBank Retail Bank Meta Payment Systems Meta Financial Group Deposits **Business Partners * Quarter End – Net ALL ** Quarter Average *** For Quarter Ended June 3
Slide 5: Who we are … Retail Bank and Meta Payment Systems
Who we are … Retail BankGrowing community bankStrong local economy11 branch locations in Iowa and South Dakota42% year-over-year loan growth*Meta Payment Systems (MPS)Dynamic payment systems divisionA top prepaid card issuer in USStrong deposit growth Nationally focused * *Quarter End Net of ALL
Slide 6: Recognition
Recognition Meta Financial Group: (NASDAQ: CASH)#68 in American Banker Magazine “Top 200 Community Banks and Thrifts” (June 2014) Top 1% based on 3 year ROETop 100 in ABA Banking Journal’s annual Performance Ranking for $1B-$10B banks (2014)2nd largest PPD card issuer in the U.S. ranked by purchase
Slide 7: Strategic Goals
Strategic Goals Grow MPS DivisionScalable operating infrastructureLeverage low/no cost fundsDiverse product set: reloadable, payroll, gift, incentive, virtual, travelMPS “financial inclusion” programs for unbanked, underbankedExercise “Early Adopter” advantage in regulatory complianceMaintain strong
Slide 8: Compliance and Oversight Systems
Compliance and Oversight Systems Early adopter of sophisticated compliance systemsInvestments in program design, training and technologyImplemented enhanced BSA/AML technologyEnhanced infrastructure to support growth with moderating expensesShifting focus to business development opportunitiesHigh co
Slide 9: Growing our business
Growing our business Capitalizing on synergies: community banking, MPSMPS provides MFG over $1.27 billion in no-cost funds High growth industry segmentExpect material benefits as interest rates riseLeveraging MPS leadership in prepaid card segmentHigh growth industry with Meta having large market sh
Slide 10: Deposits and Cost of Funds
Deposits and Cost of Funds * Avg. Deposits-$millions Cost of Funds
Slide 11: Retail Bank
Retail Bank Successful regional enterprise60 years in business 11 locations in Iowa and S. DakotaGrowing, profitable operationsStrong, loyal customer baseDiverse customer base Attractive combination of retail, commercial and agriculturalLoan growth of 42% over the last year*Expect loan growth to be
Slide 12: Where MetaBank is located
* Where MetaBank is located BrookingsSioux FallsStorm LakeDes Moines
Slide 13: Financial Highlights
Financial Highlights Net Income$12.35 million in fiscal 2014 YTD, +24% over prior year same periodStrong earnings profileAnnualized ROAA of 0.86% and annualized ROAE of 10.8% Very Strong asset qualityNPAs markedly lower than peer group at 0.04% of total assetsIncreased market capitalization over pri
Slide 14: Interest Rate Risk Management
Interest Rate Risk Management Positively leveraged for higher rate environmentOCI volatile relative to peers; GAAP does not capture balance sheet true valueMeta mark includes ~75% of assets vs. typical “peer” at 20%Unrecognized value of low or zero cost depositsExpect securities portfolio yield and
Slide 15: Capital Management
Capital Management Successfully raised $61.0 million in new capital in 2012-13 via private placements and an ATM offeringMaintain strong capital ratiosCommon Equity Tier 1 capital at least 8%Risk-Based over 20%Support growth and acquisition opportunitiesIncrease in share price gives additional acqui
Slide 16: Earnings power while Growing equity
Earnings power while Growing equity * Fiscal year end of September 30
Slide 17: Balance Sheet ($000s)
Balance Sheet ($000s) * Sep10 Sep11 Sep12 Sep13 June13 * June14* Cash And Cash Equivalents 94,248 132,149 106,067 73,733 62,211 75,120 Investments and MBS 511,011 615,320 998,826 1,176,811 1,248,482 1,319,198 Loans Receivable Net 369,563 314,484 329,689 364,100 335,936 450,628 Other Assets 64,037 64
Slide 18: Income Statement ($000s)
Income Statement ($000s) * Meta Financial Group 2010 2011 *2012 2013 **2013 Q3 **2014 Q3 Net Interest Income After Provision 17,299 34,034 32,685 36,022 27,161 33,359 Total Non Interest Income 97,444 57,491 69,574 55,503 ***42,064 39,131 Compensation and Benefits 32,529 30,467 31,104 34,106 25,917 2
Slide 19: Total Assets
Total Assets * *Quarter Average Fiscal Year End of September 30 19.2% CAGR $millions
Slide 20: Total Net Loans
Total Net Loans * *Quarter AverageFiscal Year End of September 30 $millions
Slide 21: Non-Performing Assets
Non-Performing Assets * Fiscal Year End September 30 $millions of non-performing assets % of total assets
Slide 22: Total Revenue
Total Revenue * * Includes $11.4M Gain-on-Sale of GNMA Securities**Includes $2.4M Gain-on-Sale of Securities $millions Fiscal Year End September 30
Slide 23: Meta Value Proposition
Meta Value Proposition Leading issuer of prepaid debit cardsSpringboard into other products and servicesStrong capital positionCapacity to fund our growth objectives Stable, low cost funding advantageSteady dividend policy Potential for upward trend in earningsNormalized interest rates Asset diversi
Slide 24: Meta Financial Group
Meta® Financial Group’ NASDAQ; CASH