Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q2 2018 Earnings Presentation
16 slides from Pathward Financial's earnings presentation, Apr 30, 2018
Slide 1: Quarterly Investor Update: Second Quarter Fiscal Year 2018
Quarterly Investor Update Second Quarter Fiscal Year 2018 - y Meta @
Slide 2: Forward-Looking Statements
Forward-Looking Statements Meta Financial Group, Inc." (the “Company” or "Meta MetaBank’ (the “Bank” 1 SEC"), 1 in oth may,” “hope, pect," “plan, “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue, “could,” “future information, timates, and intentions, which are subject
Slide 3: Business Updates
Business Updates Crestmark Update transaction combines two and high: ings-driven cultures, providing national commercial and industrial lending platform and immediate pipeline of insurance premium financing business, while reducing seasonality of earnings + On track to close acquisition of Crestmark
Slide 4: Financial Highlights
Financial Highlights Second Quarter Ended March 31, 2018 Earnings Quarterly GAAP net income of $31.4 million“, or $3.23 per diluted share Quarterly return on average assets of 2.67% and return on average equity of 28.37% Net interest income ("NII") + Quarterly NII of $27.4 million, an increase of 14
Slide 5: Continued Revenue Growth
Continued Revenue Growth Revenue $116,136 $92,170 Total revenue for the fiscal 2018 second quarter was $124.8 million, compared to $116.1 million for the same quarter in 2017, an increase of $8.7 million, or 7.5% $ in miions Driven by: + Interest income from community banking loans, student loan pur
Slide 6: Loan Balances Continue to Grow
Loan Balances Continue to Grow Driven by Commercial Insurance Premium Finance and Commercial Real Estate Gross Loans Receivable“ $1,511 $1,520 Excluding purchased student loan portfolios and refund advance loans, total loans receivable, net of allowance for loan losses, increased 27%, Y/Y Commercial
Slide 7: Consumer Financing Partnerships and Crestmark Acquisition Expected to Further Expand National Lending Portfolio
Consumer Financing Partnerships and Crestmark Acquisition Expected to Further Expand National Lending Portfolio National Lending + $519.0 milion National Lenaing Portfol + $1.0 billion in Community Bank Loans + Growth driven by Commercial + Growth driven by Commercial Real Insurance Premium Finance
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") Increase in NPAs, Y/Y, primarily related to a osm 247% o7a% etm aa 3 g Or large, well-collateralized agricultural loan 2 7.0 ionshi i $4 ga79 — fon relationship 3
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 Tax Cuts and Jobs Act of 2017 $4,251 $3,675 3.69% $n milions 0.58% 51% aaa 0.50% ost! 0.30% 0.04% 0.03% 0.05% 0.97% 0
Slide 10: Tax Service Business Drives Fee Income
Tax Service Business Drives Fee Income Second Quarter NIM Affected by Interest-Free Refund Advance Loans Loan Yields hoe tee -17 would NIM, tax equivalent Normalized : LM tex counters have been 3.29% - 3.32% have been 3.30% - 3.33% 08 $298 $29.3 Q2a7 37 Qat7 quis 218 Noninterest income ($MM) === Yie
Slide 11: Stable, Noninterest-bearing Deposits in a Rising Rate Environment
Stable, Noninterest-bearing Deposits in a Rising Rate Environment Total average deposits for fiscal 2018 second quarter decreased 2% as reliance on wholesale deposits, which are utilized to target strategic maturities related to the Company's seasonal tax advance lending, was reduced compared to the
Slide 12: Solid Capital Ratios Exceed Regulatory Requirements
Solid Capital Ratios Exceed Regulatory Requirements Prudent Capital Management, Flexibility to Source Future Needs to Maintain Strong Capital Ratios Regulatory Capital Ratios March 31, 2018 nn Roguitement 10 (0A) Provisions Tier 1 Leverage ‘Common Equity Tier 1. Tier 1 RiskBased Total Risk Based Met
Slide 13: Appendix
Appendix : = y Meta
Slide 14: Income Statement
Income Statement Three Months Ended Net Interest Income 23,966 Card Fee Income 26.547 26,694 25,247 26,856 1% RT Product Fee Income 32,487 5,785 508 192 33,803 4% ‘Tax Advance Fee Income 31,119 (108) 453 1,947 33,838 9% Other Income 2,017 2,091 2,178 1,882 2,922 45% Total Revenue $ 116,136 $ 55,763
Slide 15: Average Balance Sheet
Average Balance Sheet Cash and cash equivalents Investment securities Mortgage-backed securities Net loans Other assets Total Assets Nominterest bearing deposits Interest bearing deposits ‘Wholesale deposits Shortterm debt Longterm debt Other labiities Total Liabilities Sharchoider's equity Liabilit
Slide 16: Additional Information About the Proposed Merger
Additional Information About the P. Where to Find It p In connection with the proposed merger transaction, Meta has filed a registration statement on Form $-4 (file no. 333-223769) with the SEC, which includes a joint proxy statement ef Meta and Crestmark, which Meta, that send to their respective s