Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Merger or Acquisition (January 2018)
12 slides from Pathward Financial's merger presentation, Jan 9, 2018
Slide 1: Transformational Merger with Crestmark Bancorp, Inc.
Meta Financial Group, Inc. Transformational Merger with Crestmark Bancorp, Inc. Investor Presentation January 9, 2018 Exhibit 99.4
Slide 2: Forward-Looking Statements
Forward-Looking Statements Meta Financial Group, Inc.® (the “Company” or “Meta”) 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 investor presentation, the Company’s filings with
Slide 3: Additional Information About the Proposed Transaction and Where to Find It
Additional Information About the Proposed Transaction and Where to Find It In connection with the proposed merger transaction, Meta intends to file a registration statement on Form S-4 with the SEC, which will include a joint proxy statement of Meta and Crestmark, which will also constitute a prospe
Slide 4: Transaction Overview
Transaction Overview Transaction Merger of Crestmark with and into Meta, and Crestmark Bank with and into MetaBank Consideration Meta to exchange each outstanding share of Crestmark for 2.65 shares of Meta common stock (approximately 3.3 million shares to be issued) Crestmark in-the-money stock opti
Slide 5: Combines two highly-profitable and high-growth earnings-driven cultures
Combines two highly-profitable and high-growth earnings-driven cultures Combines Meta’s non-interest bearing deposit platform with Crestmark’s strong credit culture and nationwide loan generation Enhances Meta’s capital growth engine to fund organic growth, acquisitions, share repurchases, or divide
Slide 6: Meta Financial Overview
Meta Financial Overview MetaBank operates in both the banking and payments industries through its traditional community banking operation, electronic payments division, insurance premium financing division and tax-related financial solution divisions Payments Payments division generates fee income N
Slide 7: Crestmark provides diverse financial lending solutions developed to suit client needs
Crestmark provides diverse financial lending solutions developed to suit client needs Working capital lines Lines of credit Equipment leasing Equipment finance Government guaranteed loans Experienced management team Average tenure of 13 years at Crestmark and 27 years of average banking or specialty
Slide 8: Crestmark Bancorp Overview (cont.)
Crestmark Bancorp Overview (cont.) Crestmark is primarily funded by higher cost, short duration wholesale time deposits and borrowings and does not currently market deposit products to its commercial customers Crestmark maintains an extremely diverse, high yield, high quality loan portfolio Average
Slide 9: Pro forma Financial Metrics
Total assets $ 5,228 $ 1,115 $ 6,343 Total net loans 1,318 850 2,175 Total deposits 3,223 939 4,162 Loans/Deposits 41% 91% 52% Total equity $ 434 $ 99 $ 533 Net income $ 44.9 $ 20.3 $ 65.2 Cost of funds 0.43% 1.29% 0.59% Net interest margin(2) 3.05% 9.82% 4.27% ROAA 1.13% 2.13% 1.32% ROAE 11.20% 22.
Slide 10: Pro Forma Loan Composition by Business Line
Pro Forma Loan Composition by Business Line As of September 30, 2017 ($ in millions) Combined(3) Community banking $ 931.1 Insurance premium finance $ 250.5 Consumer lending(1) $ 145.2 Commercial finance(4) $ 858.5 Total gross loans $ 2,185.3 MetaBank Community banking $ 931.1 Insurance premium fina
Slide 11: Compelling Earnings Enhancement & Growth
Compelling Earnings Enhancement & Growth Estimated 10% earnings accretion based on conservative cost savings assumptions Targeting 6% of Crestmark base non-interest expense No net staff savings contemplated Provides significant upside opportunity from potential, additional synergies Opportunity to i
Slide 12: Conclusion
Conclusion Offers compelling earnings enhancement and growth potential for shareholders Combines Meta’s balance sheet capacity and low-cost deposit base with Crestmark’s national high quality lending platform and conservative credit culture Significantly diversifies Meta’s revenue stream to compleme
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