Pathward Financial, Inc. · NASDAQ:CASH
Pathward Financial — Meta Financial Group — Q1 2022 Earnings Presentation
16 slides from Pathward Financial's earnings presentation, Jan 26, 2022
Slide 1: Quarterly Investor Update First Quarter Fiscal Year 2022
QUARTERLY INVESTOR UPDATE FIRST QUARTER FISCAL YEAR 2022
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 of 59.3% compared to 62.2% as of December 31, 2020.1 • Continuing to drive long-term simplification and optimization of existing business platforms. • Investing in technology to help drive efficiencie
Slide 5: Summary Financial Results First Quarter Ended December 31, 2021
SUMMARY FINANCIAL RESULTS FIRST QUARTER ENDED DECEMBER 31, 2021 5 1 Amounts presented are used in the two-class earnings per common share calculation. INCOME STATEMENT ($ in thousands, except per share data) 1Q21 4Q21 1Q22 Net interest income 65,999 70,667 71,613 Provision for credit losses 6,089 8,
Slide 6: Capabilities Generate Increasing Low-Cost Deposits and Revenue
$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 1Q21 4Q21 1Q22 Payments Tax Services Consumer Lending BaaS CAPABILITIES GENERATE INCREASING LOW-COST DEPOSITS AND REVENUE 6 Growth in BaaS revenue Average Payments Deposits* ($ in billions) 27% 27% 22% % of Total Revenue % of Payments Revenue ($ in m
Slide 7: Balance Sheet Highlights First Quarter Ended December 31, 2021
BALANCE SHEET HIGHLIGHTS FIRST QUARTER ENDED DECEMBER 31, 2021 7 BALANCE SHEET PERIOD ENDING ($ in thousands) 1Q21 4Q21 1Q22 Cash and cash equivalents 1,586,451 314,019 1,230,100 Investments 1,309,452 1,921,568 1,833,733 Loans held for sale 133,659 56,194 36,182 Loans and leases (HFI)1 3,448,675 3,6
Slide 8: Quarterly Average Earning Asset Mix
Quarterly Average Earning Asset Mix % in charts represent % of total interest earning assets At the Quarter Ended DEC 31, 2020 DEC 30, 2021 ($ in thousands) 1 Q 2 1 1 Q 2 2 Y/Y Δ COMMERCIAL FINANCE 2,423,119 2,797,748 15% Term lending 881,306 1,038,378 18% Asset-based lending 242,298 337,236 39% Fac
Slide 9: Overview of Loan Portfolio
OVERVIEW OF LOAN PORTFOLIO 9 ($ in millions) Business Line Balance Sheet Category 1Q21 4Q21 1Q22 MRQ Yield Commercial Finance Commercial Finance Guaranteed portion of US govt SBA/USDA loans SBA/USDA 40.3 61.9 44.6 Unguaranteed portion of US govt SBA/USDA loans SBA/USDA 66.2 89.8 101.1 Paycheck prote
Slide 10: Key Credit Metrics
$3.8 $3.8 $2.8 $7.0 $3.4 0.44% 0.44% 0.32% 0.77% 0.37% 1Q21 2Q21 3Q21 4Q21 1Q22 Period Ended Adj. NCOs Adj. NCOs / Adj. Average Loans Adjusted Net Charge-Offs (“NCOs”)¹ Excludes Tax Services NCOs and Related Seasonal Average Loans ($ 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 6,000 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 MANAG
Slide 12: Capital and Sources of Liquidity
7.39% 4.75% 6.85% 7.67% 7.39% 8.60% 5.47% 7.83% 8.69% 8.52% 1Q21 2Q21 3Q21 4Q21 1Q22 CAPITAL AND SOURCES OF LIQUIDITY REGULATORY CAPITAL AS OF DECEMBER 31, 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: Non-GAAP Reconciliation: Adjusted Net Income and Adjusted EPS
NON-GAAP RECONCILIATION 14Meta Financial Group, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation Adjusted Net Income and Adjusted Earnings Per Share ($ in thousands, except per share data) 1Q21 4Q21 1Q22 Net income - GAAP 28,037 15,903 61,324 Less: Gain on sale of trademarks - - 50,000 Add: Inc
Slide 15: Non-GAAP Reconciliation: Adjusted Net Charge-Offs
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. 15 For the quarter ended ($ in thousands) Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Net Charge-offs 2,836
Slide 16: Financial Measure Reconciliations
FINANCIAL MEASURE RECONCILIATIONS 16Meta Financial Group, Inc. (Nasdaq: CASH) | Quarterly Investor Presentation For the last twelve months ended ($ in thousands) Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Noninterest Expense - GAAP 315,828 320,070 330,352 343,683 353,544 Net In