Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q4 2021 Earnings Presentation
14 slides from Pathward Financial's earnings presentation, Oct 27, 2021
Slide 1: Quarterly Investor Update Fourth Quarter & Fiscal Year End 2021
QUARTERLY INVESTOR UPDATE FOURTH QUARTER & FISCAL YEAR END 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 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,” “h
Slide 3: We strive to increase financial availability, choice, and opportunity
3 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 servic
Slide 4: Optimize Interest-Earning Assets, Deposits and Operating Efficiencies
Optimize Interest-Earning Assets Optimize Deposits Optimize Operating Efficiencies Efficiency ratio improved to 62.5% from 64.0% as of September 30, 2020. • Continuing to drive simplification and optimization of existing business platforms. • Investing in technology to help drive efficiencies and op
Slide 5: Summary Financial Results Fourth Quarter Ended September 30, 2021
SUMMARY FINANCIAL RESULTS FOURTH QUARTER ENDED SEPTEMBER 30, 2021 5 1 Amounts presented are used in the two-class earnings per common share calculation. INCOME STATEMENT ($ in thousands, except per share data) 4Q20 3Q21 4Q21 Net interest income 64,513 68,475 70,667 Provision for credit losses 8,980
Slide 6: Capabilities Generate Increasing Low-Cost Deposits and Revenue
$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 4Q20 3Q21 4Q21 Payments Tax Services Consumer Lending BaaS CAPABILITIES GENERATE INCREASING LOW-COST DEPOSITS AND REVENUE 6 Growth in BaaS revenue Average Payments Deposits* ($ in billions) 28% 33% 27% % of Total Revenue % of Payments Rev
Slide 7: Balance Sheet Highlights Fourth Quarter Ended September 30, 2021
BALANCE SHEET HIGHLIGHTS FOURTH QUARTER ENDED SEPTEMBER 30, 2021 7 BALANCE SHEET PERIOD ENDING ($ in thousands) 4Q20 3Q21 4Q21 Cash and cash equivalents 427,367 720,243 314,019 Investments 1,360,712 1,981,852 1,921,568 Loans held for sale 183,577 87,905 56,194 Loans and leases (HFI)1 3,322,765 3,496
Slide 8: Quarterly Average Earning Asset Mix
Quarterly Average Earning Asset Mix % in charts represent % of total interest earning assets At the Quarter Ended SEP 30, 2020 SEP 30, 2021 ($ in thousands) 4 Q 2 0 4 Q 2 1 Y/Y Δ COMMERCIAL FINANCE 2,307,984 2,725,495 18% Term lending 805,323 961,019 19% Asset-based lending 182,419 300,225 65% Facto
Slide 9: Overview of Loan Portfolio
OVERVIEW OF LOAN PORTFOLIO 9 ($ in millions) Business Line Balance Sheet Category 4Q20 3Q21 4Q21 MRQ Yield Commercial Finance Commercial Finance Guaranteed portion of US govt SBA/USDA loans SBA/USDA 54.9 71.9 61.9 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 44.5 48.6 89.8 Paycheck protec
Slide 10: Key Credit Metrics
$5.5 $3.8 $3.8 $2.8 $7.0 0.63% 0.44% 0.44% 0.32% 0.77% 4Q20 1Q21 2Q21 3Q21 4Q21 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adjusted Net Charge-Offs (“NCOs”)¹ Excludes Tax Services NCOs and Related Seasonal Average Loans ($ in millions) KEY CREDIT METRICS • Annualized adjusted net charge-o
Slide 11: Interest Rate Risk Management
-10% 5% 20% 35% -100 +100 +200 +300 Parallel Shock Ramp 1 Fixed rate securities, loans and leases are shown for contractual periods. -2,000 0 2,000 4,000 Month 1-12 Month 13-36 Month 37-60 Month 61-180 V o lu m e ($ M M ) Period Variance Total Assets Total Liabilities INTEREST RATE RISK MANAGEMENT S
Slide 12: Capital and Sources of Liquidity
6.58% 7.39% 4.75% 6.85% 7.67%7.56% 8.60% 5.47% 7.83% 8.69% 4Q20 1Q21 2Q21 3Q21 4Q21 CAPITAL AND SOURCES OF LIQUIDITY REGULATORY CAPITAL AS OF SEPTEMBER 30, 2021 Minimum Requirement to be Well-Capitalized under Prompt Corrective Action Provisions Meta Financial Group, Inc. MetaBank, N.A. Capital Rati
Slide 13: Appendix
APPENDIX 13Meta Financial Group, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation
Slide 14: Financial Measure Reconciliations
1 Tax Services NCOs and average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the Company's tax services business line. FINANCIAL MEASURE RECONCILIATIONS 14 For the last twelve months ended ($ in thousands) Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun