Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Sterne Agee Financial Institutions Investor Conference February 2013
24 slides from Pathward Financial's conference presentation, Feb 6, 2013
Slide 1: Sterne Agee Financial Institutions Investor Conference February 2013
Sterne Agee Financial Institutions Investor Conference February 2013
Slide 2: Forward Looking Statements
Forward Looking Statements Corporate Profile: Meta Financial Group, Inc. ® , ("Meta Financial" or the "Company") is the holding company for its wholly-owned subsidiary MetaBank™ (the "Bank" or "MetaBank"). MetaBank is a federally-chartered savings bank with four market areas: Northwest Iowa Market,
Slide 3: Meta Management
Meta Management J. Tyler Haahr Chairman, President and Chief Executive Officer, Meta Financial Group Tyler 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 t
Slide 4: Who we are
Who we are … $1,245 M NetSpend Money Network Blackhawk 3 $516 M Iowa South Dakota Assets Strong Economy and Local Markets § § § § § § § MetaBank Retail Bank Meta Payment Systems Meta Financial Group Solid Partners
Slide 5: Who we are... Meta Financial Group
Meta® Who weare... Financial Group’ = Meta Financial Group (NASDAQ: CASH) = Sandler O’Neill’s Small-Cap All Star list => Unique cost of funds advantage of .28% at 09/30/12 (MetaBank) = Retail Bank © Solid community bank = Strong local economy = Location in lowa and South Dakota + 12branches = Meta P
Slide 6: MPS - Top U.S. Prepaid Card Issuer
MPS-Top U.S. Prepaid Card Issuer 5
Slide 7: Strategic Direction
Strategic Direction Grow MPS Division Scalable operating infrastructure Leverage low/no cost funds Diverse product set: reloadable, payroll, gift, incentive and travel MPS “financial inclusion” programs for unbanked, underbanked Exercise “Early Adopter” advantage in regulatory compliance Ensure stro
Slide 8: Compliance and Oversight Systems
Compliance and Oversight Systems Early adopter of compliance systems Investments in program design, training and technology Implementing enhanced BSA/AML technology High competitive barriers to entry Expertise, Capital, Compliance Operational infrastructure High start-up costs 7 ➡ ➡ ➯ ➡ ➯ ➯ ➯
Slide 9: Growing our business
Growing our business Capitalizing on synergies: community banking, MPS MPS provides MFG over $1.1 billion in no-cost funds Historical annual deposit growth of 30%+ Material benefits as interest rates normalize Leveraging MPS leadership in prepaid card segment Industry growth forecast at 30% annually
Slide 10: Total Deposits
Total Deposits 9 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal Year End September 30
Slide 11: Retail Bank
Retail Bank Successful regional enterprise Over a half-century in business 12 locations in Iowa and S. Dakota Stable, profitable operations Strong, loyal customer base Diverse customer base Attractive combination of retail, commercial and agricultural Very strong and improving credit quality Loan to
Slide 12: Where MetaBank is located
Where MetaBank is located Brookings Sioux Falls Storm Lake Des Moines ➡ ➡ ➡ ➡
Slide 13: Financial Highlights
Financial Highlights Meta@ Financial Group’ = Net Income = $3.1 million in first quarters of both fiscal 2013 and fiscal 2012 = Strong earnings profile = ROAA of 0.77% and ROAE of 8.55% for first quarter 2013 = Strong and improving asset quality = NPAs markedly lower than peer group = Increased fran
Slide 14: Growing equity
Growing equity 13 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal year end September 30
Slide 15: Capital Management
Capital Management Private placements raised $47.4 million in new capital $13.2 million in May 2012 $34.2 million in September 2012 Investors include existing shareholders, strategic partners, others Maintain strong capital ratios Tier 1 at least 8% Risk-Based over 20% Support current and expected g
Slide 16: Balance Sheet ($000s)
Balance Sheet ($000s) 15 Sep08 Sep09 Sep10 Sep11 Sep12 Dec12* Cash And Cash Equivalents 2,963 6,168 87,503 276,893 145,051 32,745 Investments and MBS 203,834 364,838 506,852 619,248 1,116,692 1,323,992 Loans Receivable Net 427,928 391,609 366,045 314,410 326,981 317,258 Other Assets 75,511 72,162 69
Slide 17: Income Statement ($000s)
Income Statement ($000s) 16 Meta Financial Group 2009 2010 2011 2012 1Q13* 1Q12* Net Interest Income After Provision 9,106 17,299 34,034 32,685 8,797 7,939 Total Non Interest Income 79,969 97,444 57,491 69,574 13,410 15,682 Compensation and Benefits 32,743 32,529 30,467 31,104 8,277 7,176 Card Proce
Slide 18: Total Assets
Total Assets 17 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal Year End September 30
Slide 19: Total Net Loans
Total Net Loans 18 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal Year End September 30
Slide 20: Non-Performing Assets
Non-Performing Assets 19 FY07 FY08 FY09 FY10 FY11 FY12 Q113 Fiscal Year End September 30
Slide 21: Total Revenue
Total Revenue 20 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal Year End September 30
Slide 22: Total Net Income (Loss)
Total Net Income (Loss) 21 FY07 FY08 FY09 FY10 FY11 FY12 Fiscal Year End September 30
Slide 23: Meta Value Proposition
Meta Value Proposition No. 1 issuer of debit cards Springboard into other products and services Strong capital position Capacity to fund significant growth objectives Steady dividend policy Yield of 2.4% at current rates Poised for sharp upward trend in earnings Normalized interest rates and asset d
Slide 24: Meta Financial Group
Meta® Financial Group”
Meta Financial Group — Sterne Agee Financial Institutions Investor Conference February 2013 on 6ix