Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q1 FY2017 Earnings Presentation
17 slides from Pathward Financial's earnings presentation, 2017
Slide 1: Investor Update First Quarter Fiscal Year 2017
Investor Update First Quarter Fiscal Year 2017 First Quarter 2017 | NASDAQ: CASH
Slide 2: Forward Looking Statements
Forward Looking Statements Meta Financial Group, Inc.® (the “Company”) and its wholly-owned subsidiary, MetaBank® (the “Bank”), may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the Securities and
Slide 3: The Meta Ecosystem
The Meta Ecosystem Banking Payments Retail Banking Prepaid/ATM/Other • Regional community bank with 10 branch • A Prepaid card industry leader with payments locations in Iowa and South Dakota diversification • Growing, profitable operations • Continuing to grow “annuity-like” stream of fee income •
Slide 4: Tax Space Emergence
Tax Space Emergence 4 First Quarter 2017 | NASDAQ: CASH
Slide 5: Financial Highlights
Financial Highlights • Net income of $1.2 million and earnings per diluted share of $0.14 for Q1 FY 2017 compared to $4.1 million and $0.49 per diluted share for Q1 FY 2016 – Q1 FY 2017 pre-tax results included $1.5 million in amortization of intangibles, $1.2 million in securities losses, $1.2 mill
Slide 6: Net Interest Income ($MM)
Net Interest Income ($MM) First Quarter Highlights Net interest margin (NIM) decreased 31 bps compared to fiscal 2016 first quarter • Issuance of subordinated debt (13 bps) • Testing and implementation of new funding programs to prepare for tax season generated higher than typical cash balances pres
Slide 7: Net Interest Drivers ($MM)
Net Interest Drivers ($MM) Fiscal Quarter Average First Quarter Highlights Investment and loan yields well-positioned to increase with rising rates Increased duration flexibility provides opportunity for increased yields in the securities portfolio Mortgage-backed securities portfolio yields expecte
Slide 8: Earning Asset Mix ($MM)
Earning Asset Mix ($MM) Continue to improve earning asset mix • Asset diversification with higher yields • Continued robust loan growth at retail bank and AFS/IBEX Tax-Exempt Mortgage-Backed 29% Earning Asset Growth Q1-16 to Q1-17 Investment Securities Securities Loans Cash and Other Securities 8 Fi
Slide 9: Loan Portfolio Composition ($MM)
Loan Portfolio Composition ($MM) First Quarter Highlights Total loans receivable increased from $745 million to $981 million on December 31, 2015 and December 31, 2016, respectively, a 32% increase, excluding student loan portfolio purchase YoY loan growth driven by increases in Commercial, Premium
Slide 10: Balance Sheet Overview ($MM)
Balance Sheet Overview ($MM) First Quarter Highlights Average assets for fiscal 2017 first quarter grew 30% compared to the same period in fiscal 2016 Very strong asset quality • Non-performing assets (NPAs) were $2.3 million, representing 0.05% of total assets, small fraction of bank industry avera
Slide 11: Regulatory Capital
Regulatory Capital Meta Financial Group, Inc. MetaBank Minimum Requirement to be Well-Capitalized under Prompt Corrective Action (PCA) Provisions ¹Amounts estimated Goal: maintain strong capital ratios • MetaBank 6 Month Average Tier 1 Leverage > 8.0% • MetaBank 6 Month Average Total Risk-Based Capi
Slide 12: Infrastructure
Infrastructure Early adopter of sophisticated compliance systems Investments in program design, training and technology • Implemented enhanced BSA/AML technology • Enhanced infrastructure supports growth • These prior investments allow more focus on growing current business and new development oppor
Slide 13: Interest Rate Risk Management
Interest Rate Risk Management Interest rate sensitivity (what management believes) Static interest rate risk results do not accurately reflect Meta’s true interest rate sensitivity due to our unique and historically predictable deposit base • Utilizing quarterly average balances for deposits, cash,
Slide 14: Industry Recognition
Industry Recognition EPS Financial Business of the Year 2016 (25-100 Employees) #1 Top Growth Bank (May 2016) Named Top Community Bank (Aug 2016) MetaBank named one of “7 To Watch in ‘17” Top 50 of ACH originators in 2015 Top 30 of ACH receivers in 2015 AFS/IBEX has been an Advantage Second largest
Slide 15: Appendix
Appendix 15 First Quarter 2017 | NASDAQ: CASH
Slide 16: Income Statement
Income Statement Three Months Ended Percent Change Q1 Q4 Q3 Q2 Q1 Q1-17 vs. (dollars in thousands) Dec. 2017 Sept. 2016 June 2016 March 2016 Dec. 2016 Q1-16 Net Interest Income 19,833 19,893 19,919 19,937 17,556 13.0% Card Fee Income 18,414 17,920 18,779 18,579 15,256 20.7% Tax Product Fee Income 62
Slide 17: Balance Sheet
Balance Sheet Fiscal Quarter Average Percent Change Q1 Q4 Q3 Q2 Q1 Q1-17 vs. (dollars in thousands) Dec. 2017 Sept. 2016 June 2016 March 2016 Dec. 2016 Q1-16 Cash and Cash Equivalents 195,004 50,976 23,154 88,331 47,295 312.3% Investments and MBS 2,084,101 2,075,599 2,026,849 2,036,633 1,724,726 20.
Meta Financial Group — Q1 FY2017 Earnings Presentation on 6ix