Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q3 2018 Earnings Presentation
15 slides from Pathward Financial's earnings presentation, Jul 26, 2018
Slide 1: Quarterly Investor Update Third Quarter Fiscal Year 2018
Quarterly Investor Update Third Quarter Fiscal Year 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements eta hance Group, Ine (the “Company” os MetaBank (the “Bank"), “ ‘contained in this Securities and ="), Beetles oi 0 he ore by the Company and the Bank, whieh are mode in god fe ty tte Company pursuant tothe “eal harbor” proilons ofthe Pate Secure Ligation Reform Ack of 199
Slide 3: Business Updates
Business Updates Crestmark Bancorp, Inc. Acquisition Meta and Crestmark shareholders approved the transaction at their respective special meetings of shareholders held on May 29, 2018 and announced on June 28, 2018 that all bank regulatory approvals were received and expect to close acquisition of C
Slide 4: Financial Highlights
Financial Highlights Third Quarter Ended June 30, 2018 Earnings + Quarterly GAAP net income of $6.8 million(?, or $0.70 per diluted share + Quarterly retum on average assets of 0.64% and return on average equity of 6.11% Net interest income ("NII") + Quarterly NII of $28.4 million, an increase of 14
Slide 5: Year-over-Year Trend in Revenue Growth Continues
Year-over-Year Trend in Revenue Growth Continues Revenue Total revenue for the fiscal 2018 third quarter was $61.6 million, compared to $55.8 million for the same quarter in 2017, an increase of $5.8 million, or 11% $124,824 Driven by: + Increased interest income from growth in community banking loa
Slide 6: Lending Divisions Continue Growth Trends
Lending Divisions Continue Growth Trends Driven by Commercial Real Estate and Commercial Insurance Premium Finance Gross Loans Receivable $1511 $1,520 Commercial insurance premium finance loan growth of 31%, Y/Y $ in mitions Community bank loan growth of 25%, Y/Y © Commercial real estate loan growth
Slide 7: Consumer Financing and Anticipated Crestmark Acquisition Expected to Further Enhance Portfolio
Consumer Financing and Anticipated Crestmark “Acquisition Expected to Further Enhance Portfolio National Lendin; + $550.2 million National Lending Portfolio at June 30, 2018 + Over $4.0 billion in Community + Growth driven by Commercial Real Estate - strong market trends in Sioux Falls and Des Moine
Slide 8: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Disciplined Credit Culture Continues to Drive Strong Asset Quality Nonperforming Assets ("NPAs") Decrease in NPAs, Y/Y, primarily related to the payment in full of a previously disclosed $7.0 million nonperforming agricultural loan relationship during the firs
Slide 9: Average Interest-Earning Asset Mix Continues to Shift
Average Interest-Earning Asset Mix Continues to Shift Higher Yielding Loans Replacing Lower Yielding Securities Average Interest-Earning Assets Net Interest Margin ("NIM") Components Fiscal 2018 quarterly NIM is reflective of the lowered corporate prorated tax rate on the Company's tax-exempt munici
Slide 10: Stable, Non-interest-bearing Deposit Base
Meta ig Adv: > Stable, Non-interest-bearing Deposit Base Even in a Rising Rate Environment Total average deposits for fiscal 2018 third quarter increased 11%, primarily driven by growth in non-interest bearing deposits Average non-interest-bearing deposits for the fiscal 2018 third quarter increased
Slide 11: Solid Capital Ratios Exceed Regulatory Requirements
Solid Capital Ratios Exceed Regulatory Requirements Prudent Capital Management and Flexibility to Source Future Needs to Maintain Strong Capital Ratios Regulatory Capital Ratios June 30, 2018 1757% ‘Minimum Requirement to be Well Capitalized under Prompt Corrective Action ) Provisions Tier 1 Leverag
Slide 12: Appendix
Appendix
Slide 13: Income Statement
Income Statement Percent ‘Three Months Ended Change Net Interest Income 24,943 24,488 26,196 27,405 28,411 Card Fee Income 23,052 26,694 25,247 26,856 22,807 Refund Transfer Product Fee Income 5,785 508 192 33,803 7,358 27% Tax Advance Fee Income (108) 453 1,947 33,838 (46) (87% Other Income 2,001 2
Slide 14: Average Balance Sheet
Average Balance Sheet Fiscal Quarter Average Percent Quarter En Change 1,2018 June 3 Cash and cash equivalents 50,235 85,158 120,491 207,701 86,210 72% Investment securities 1,614,529 1,595,587 1,593,754 1,623,838, 1,620,279 —% Mortgage-backed securities 777,216 747,330 668,818 629,688 600,633 (23%
Slide 15: Additional Information About the Transaction and Where to Find It
Additional Information About the Transaction and Where to Find It In connection with the merger transaction, Meta has filed a registration statement on Form S-4 (file no. 333-223769) with the SEC, which includes a joint proxy statement of Meta and Crestmark, which also constitutes a prospectus of Me