Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Q1 2022 Earnings Presentation
16 slides from Pathward Financial's earnings presentation, January 2022
Slide 1: Quarterly Investor Update, First Quarter Fiscal Year 2022
QUARTERLY INVESTOR UPDATE FIRST QUARTER FISCAL YEAR 2022
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: First Quarter Business Highlights & Key Strategic Initiatives
FIRST QUARTER BUSINESS HIGHLIGHTS & KEY STRATEGIC INITIATIVES Optimize Optimize Optimize Interest-Earning Assets Deposits Operating Efficiencies Continued focus on growing Grew total deposits by $318 million, Efficiency ratio of 59.3% compared to commercial finance business lines. or 5%, from Decemb
Slide 5: Summary Financial Results
SUMMARY FINANCIAL RESULTS FIRST QUARTER ENDED DECEMBER 31, 2021 INCOME STATEMENT ($ in thousands, except per share data) 1Q21 4Q21 1Q22 Net interest income 65,999 70,667 71,613 Provision for credit losses 6,089 8,775 186 Total noninterest income 45,455 49,542 86,591 Total noninterest expense 72,575
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) $40.0 $35.0 22% $5.89 27% $5.74 27% $30.0 $5.07 $25.0 11% 12% Banking Services** 10%
Slide 7: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS FIRST QUARTER ENDED DECEMBER 31, 2021 BALANCE SHEET PERIOD ENDING ($ in thousands) 1Q21 4Q21 1Q22 Cash and cash equivalents 1,586,451 314,019 1,230,100 Investments 1,309,452 1,921,568 1,833,733 Loans held for sale 133,659 56,194 36,182 Loans and leases (HFI)1 3,448,675 3,609
Slide 8: Diversified Earning Asset Portfolio
DIVERSIFIED EARNING ASSET PORTFOLIO At the Quarter Ended Quarterly Average Earning Asset Mix DEC 31, 2020 DEC 31, 2021 % in charts represent % of total interest earning assets ($ in thousands) 1Q21 1Q22 Y/Y Δ COMMERCIAL FINANCE 2,423,119 2,797,748 15% Term lending 881,306 1,038,378 18% Asset-based l
Slide 9: Overview of Loan Portfolio
OVERVIEW OF LOAN PORTFOLIO MRQ ($ in millions) Business Line Balance Sheet Category 1Q21 4Q21 1Q22 Yield Commercial Finance Guaranteed portion of US govt SBA/USDA loans SBA/USDA 40.3 61.9 44.6 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 66.2 89.8 101.1 Paycheck protection program loans S
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) 0.73% 0.77% 0.64% 0.58% 0.48% 0.44% 0.44% 0.32% 0.37% $61.8 $53.2 $46.7 $3.8 $3.8 $7.0 $45.1 $44.3 $2.8 $3.4 1Q21 2Q21 3Q
Slide 11: Interest Rate Risk Management
INTEREST RATE RISK MANAGEMENT DECEMBER 31, 2021 12-Month Interest Rate Sensitivity from Base Net Interest Income • Low-rate environment; focus is on reducing wholesale funding and deploying deposits into 35% positive carry opportunities. Parallel Shock Ramp • Interest rate risk shows asset sensitive
Slide 12: Capital and Sources of Liquidity
CAPITAL AND SOURCES OF LIQUIDITY REGULATORY CAPITAL AS OF DECEMBER 31, 2021 Meta Financial MetaBank, Capital Ratio Trends At December 31, 2021¹ Group, Inc. N.A. Tier 1 Leverage Ratio Tier 1 Leverage 7.39% 8.52% 8.60% 8.69% 8.52% Common Equity Tier 1 10.88% 12.90% 7.83% 7.39% 7.67% 7.39% 6.85% Tier 1
Slide 13: Appendix
APPENDIX Meta Financial Group, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation 13
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Net Income and Adjusted Earnings Per Share ($ in thousands, except per share data) 1Q21 4Q21 1Q22 Net income - GAAP 28,037 15,903 61,324 Less: Gain on sale of trademarks - - 50,000 Add: Income tax effect from gain on sale of trademarks - - 12,593 Adjusted Net Income
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Annualized NCOs and Adjusted Loans and Leases For the quarter ended ($ in thousands) Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Net Charge-offs 2,836 3,696 12,333 31,753 1,129 Less: Tax services net charge-offs (956) (54) 9,488 24,798 (2,313) Ad
Slide 16: Financial Measure Reconciliations
FINANCIAL MEASURE RECONCILIATIONS Efficiency Ratio For the last twelve months ended ($ in thousands) Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Noninterest Expense - GAAP 315,828 320,070 330,352 343,683 353,544 Net Interest Income 260,368 266,499 272,837 278,991 284,605 Noninte