Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q2 2014 Earnings Presentation
23 slides from Pathward Financial's earnings presentation, May 5, 2014
Slide 1: 2Q14 Investor Update
2Q14 Investor UpdateMay 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 $1,434 MNetSpendMoney NetworkBlackhawkSeveral Dozen Others * $415 MIowaSouth Dakota MetaBank Retail Bank Meta Payment Systems Meta Financial Group Deposits **Business Partners * Quarter End – Net ALL ** Quarter Average *** Quarter End March 31, 20
Slide 5: Who we are
Who we are … Meta Financial Group: (NASDAQ: CASH)Added to Russell 2000 Index in June 2013Top 5 in ABA Banking Journal’s annual Performance Ranking for $1B-$10B banks (May 2013)#7 ranked U.S. bank for fee income per Bank Director magazine’s 4th Quarter 2013 edition Sandler O’Neill’s Small-Cap All Sta
Slide 6: 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 7: 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 8: Growing our business
Growing our business Capitalizing on synergies: community banking, MPSMPS provides MFG over $1.3 billion in no-cost funds High growth industry segmentExpect material benefits as interest rates riseLeveraging MPS leadership in prepaid card segmentHigh growth industry with Meta having large market sha
Slide 9: Deposits and Cost of Funds
Deposits and Cost of Funds * Avg. Deposits-$millions Cost of Funds
Slide 10: 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 30% over the last year Expect loan growth to be
Slide 11: Where MetaBank is located
* Where MetaBank is located BrookingsSioux FallsStorm LakeDes Moines
Slide 12: Financial Highlights
Financial Highlights Net Income$8.15 million in fiscal 2014 YTD, +30% over prior year same periodStrong earnings profileAnnualized ROAA of 1.03% and annualized ROAE of 13.04% Very Strong asset qualityNPAs markedly lower than peer group at 0.04% of total assetsIncreased market capitalizationCapital m
Slide 13: 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 ~80% of assets vs. typical “peer” at 20%Unrecognized value of low or zero cost depositsExpect securities portfolio yield and
Slide 14: 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 15: Earnings power while Growing equity
Earnings power while Growing equity * Fiscal year end of September 30
Slide 16: Balance Sheet ($000s)
Balance Sheet ($000s) * Sep10 Sep11 Sep12 Sep13 Mar13 * Mar14* Cash And Cash Equivalents 94,248 132,149 106,067 73,733 102,022 132,659 Investments and MBS 511,011 615,320 998,826 1,176,811 1,276,786 1,294,874 Loans Receivable Net 369,563 314,484 329,689 364,100 321,876 414,245 Other Assets 64,037 64
Slide 17: Income Statement ($000s)
Income Statement ($000s) * Meta Financial Group 2010 2011 *2012 2013 **2013 Q2 **2014 Q2 Net Interest Income After Provision 17,299 34,034 32,685 36,022 18,002 21,732 Total Non Interest Income 97,444 57,491 69,574 55,503 28,505 26,650 Compensation and Benefits 32,529 30,467 31,104 34,106 17,393 18,9
Slide 18: Total Assets
Total Assets * Quarter Average Fiscal Year End of September 30 19.72% CAGR $millions
Slide 19: Total Net Loans
Total Net Loans * Quarter AverageFiscal Year End of September 30 $millions
Slide 20: Non-Performing Assets
Non-Performing Assets * Fiscal Year End September 30 $millions of non-performing assets % of total assets
Slide 21: Total Revenue
Total Revenue * * $11.4M Gain on Sale of GNMA Securities $millions Fiscal Year End September 30
Slide 22: 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 23: Meta Financial Group
Meta® Financial Group’ NASDAQ; CASH