Document


 
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2019

META FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware
0-22140
42-1406262
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

5501 South Broadband Lane, Sioux Falls, South Dakota 57108
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (605) 782-1767

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
 
 
 






Item 2.02    Results of Operations and Financial Condition.

On July 30, 2019, the Registrant issued a press release announcing its results of operations and financial condition as of and for the three and nine months ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated into this Item 2.02 by reference.

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference in any filing under the Exchange Act or under the Securities Act of 1933, as amended (the "Securities Act"), except to the extent specifically provided in any such filing.

Item 7.01    Regulation FD Disclosure.

Information is being furnished herein in Exhibit 99.2 with respect to the Investor Update slide presentation prepared for use with the press release. While most of the selected financial information furnished herein is derived from the Company’s consolidated financial statements and related notes prepared in accordance with generally accepted accounting principles ("GAAP") and management’s discussion and analysis of financial condition and results of operations included, or to be included, in the Company’s reports on Forms 10-K and 10-Q, this information includes selected financial and operational information through the third quarter of fiscal year 2019 and does not represent a complete set of financial statement and related notes prepared in conformity with GAAP. The Company’s annual financial statements are subject to independent audit. The Investor Update slide presentation is dated July 30, 2019 and the Company does not undertake to update the materials after that date.

The information in this Item 7.01, including Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference in any filing under the Exchange Act or under the Securities Act, except to the extent specifically provided in any such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits
Exhibit Number
 
Description of Exhibit
 
 
 
 
Press Release of Meta Financial Group, Inc., dated July 30, 2019 regarding the results of operations and financial condition.
 
 
 
 
Investor Update slide presentation for the Third Quarter of Fiscal Year 2019, dated July 30, 2019, prepared for use with the Press Release.









SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
META FINANCIAL GROUP, INC.
 
 
 
Date: July 30, 2019
By:
/s/ Glen W. Herrick
 
 
Glen W. Herrick
 
 
Executive Vice President, Chief Financial Officer
 
 
and Secretary
 
 
 
 
 
 
 
 
 
 
 
 


Exhibit
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13030645&doc=24
META FINANCIAL GROUP, INC.® ANNOUNCES RESULTS FOR 2019 FISCAL THIRD QUARTER
- Revenue Rises 80% -
- Generates Net Income of $29.3 Million and Delivers Earnings Per Diluted Share of $0.75 -

Sioux Falls, S.D., July 30, 2019 (GLOBE NEWSWIRE) -- Meta Financial Group, Inc.® (Nasdaq: CASH) (“Meta” or the “Company”) reported net income of $29.3 million, or $0.75 per diluted share, for the three months ended June 30, 2019, compared to net income of $6.8 million, or $0.23 per diluted share, for the three months ended June 30, 2018. Total revenue for the fiscal 2019 third quarter was $110.8 million, compared to $61.6 million for the same quarter in fiscal 2018, representing an 80% increase.
“Our fiscal year 2019 third quarter results highlight our strong and consistent loan growth, as well as continued net interest income and margin expansion, primarily reflecting a more potent balance sheet,” said President and CEO Brad Hanson. “We continue to make progress on our key strategic initiatives, including a focus on leveraging our payments division to drive more favorable deposit growth, optimizing our interest-earning asset mix, and realizing operating efficiencies to generate sustained profit increases. Moreover, as we remain committed to maximizing shareholder value, we further enhanced our capital management activities by initiating share repurchases under our recent Board authorization.”
Highlights for the 2019 Fiscal Third Quarter Ended June 30, 2019
Total gross loans and leases at June 30, 2019 more than doubled to $3.63 billion, compared to June 30, 2018, and increased by $190.9 million, or 6%, when compared to March 31, 2019.
Average deposits from the payments division increased nearly 11% to $2.73 billion when compared to the same period in fiscal 2018.
Net interest income more than doubled to $67.0 million, compared to $28.4 million in the comparable quarter in fiscal 2018.
Net interest margin ("NIM") increased to 5.07% for the fiscal 2019 third quarter from 2.94% over the same period of the prior fiscal year, while the tax-equivalent net interest margin ("NIM, TE") increased to 5.15% from 3.23% over that same period in fiscal 2018.
Repurchased $43.0 million, or 1,574,734, shares at an average price of $27.31 during the fiscal 2019 third quarter.
Net Interest Income
Net interest income for the fiscal 2019 third quarter grew by $38.6 million, or 136%, to $67.0 million, compared to the same quarter in fiscal 2018. This increase was primarily due to growth in loan and lease balances as well as an increase in loan and lease yields. The growth in loan and lease balances, along with the higher corresponding loan and lease yields, were largely attributable to the Company's acquisition of Crestmark in the fourth quarter of fiscal 2018 (the "Crestmark acquisition").

1



During the third quarter of fiscal year 2019, loan and lease interest income grew by $50.7 million, when compared to the same quarter in fiscal 2018, offset in part by an increase in interest expense of $9.0 million. The quarterly average outstanding balance of loans and leases as a percentage of interest-earning assets for the quarter ended June 30, 2019 increased to 68%, from 40% for the quarter ended June 30, 2018, while the quarterly average balance of total investments as a percentage of interest-earning assets decreased to 31% from 58% over that same period. The Company’s average interest-earning assets for the fiscal 2019 third quarter grew by $1.4 billion, or 37%, to $5.30 billion from the comparable quarter in fiscal 2018. This was primarily due to growth in our average loan and lease portfolio of $2.04 billion, of which $1.88 billion was attributable to an increase in national lending loans and leases along with an increase of $159.9 million in community banking loans, partially offset by a reduction in total investment securities of $633.3 million.
NIM increased to 5.07% for the fiscal 2019 third quarter from 2.94% for the comparable quarter in fiscal 2018, while NIM, TE was 5.15% for the fiscal 2019 third quarter. The net effect of purchase accounting accretion contributed 25 basis points to NIM for the fiscal 2019 third quarter, which represented an increase of seven basis points from the fiscal 2019 second quarter.
The overall reported tax-equivalent yield (“TEY”) on average earning asset yields increased by 244 basis points to 6.26% for the fiscal 2019 third quarter compared to the 2018 third fiscal quarter. The growth was driven primarily by the Company's improved earning asset mix, which reflects higher balances for the national lending portfolio. The fiscal 2019 third quarter TEY on the securities portfolio was 3.09% compared to 3.11% for the same period of the prior fiscal year.
The Company's cost of funds for all deposits and borrowings averaged 1.14% during the fiscal 2019 third quarter, compared to 0.62% for the 2018 third fiscal quarter. This increase was primarily due to a rise in short-term interest rates affecting overnight borrowing rates, other wholesale funding, and the interest-bearing time deposits acquired by the Company in connection with the Crestmark acquisition. The Company's overall cost of deposits was 0.90% in the fiscal third quarter of 2019, compared to 0.29% in the same quarter of fiscal 2018. Excluding wholesale deposits, the Company's cost of deposits for the third quarter of fiscal 2019 would have been 0.11%.
Non-Interest Income
Fiscal 2019 third quarter non-interest income was $43.8 million, an increase of 32% over the same quarter of fiscal 2018, which was due in large part to increases in rental income, gain on sale of loans and leases, other income, and deposit fees. Partially offsetting the increase were decreases in card fee income and in total tax product fee income over that same period of the prior fiscal year. The increases in rental income and gain on sale of loans and leases were primarily attributable to the Crestmark acquisition. The card fee income decrease was related to the previously disclosed wind-down of two non-strategic partners and the transition of certain fees to deposit fees.
Non-Interest Expense
Non-interest expense increased to $72.5 million for the 2019 fiscal third quarter, compared to $49.1 million for the same quarter of fiscal 2018, primarily due to the addition of the Crestmark division, which was not present in the comparable quarter in the prior fiscal year. During the fiscal 2019 third quarter, compensation and benefits expense rose by $10.7 million from the same period of the prior fiscal year, primarily due to the addition of Crestmark division employees and new hires in the second half of fiscal 2018 in support of Meta's national lending and other business initiatives.
Income Tax Expense
The Company recorded an income tax benefit of $1.2 million, or an effective tax rate of (3.97%), for the fiscal 2019 third quarter, compared to an income tax expense of $0.5 million, or an effective tax rate of 6.55%, for the fiscal 2018 third quarter. The income tax benefit for the fiscal 2019 third quarter was primarily due to ratably recognized investment tax credits.
The Company originated $49.1 million in solar leases during the fiscal 2019 third quarter. Investment tax credits related to solar leases and future originations in fiscal 2019 will be recognized ratably based on income over the duration of the current fiscal year. The timing and impact of future solar tax credits are expected to vary from period to period, and Meta intends to undertake only those tax credit opportunities that meet the Company's underwriting and return criteria.

2



Investments, Loans and Leases
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
 
 
 
 
 
 
 
 
 
Total investments
$
1,502,640


$
1,649,754


$
1,855,792


$
2,019,968


$
2,149,709

 
 
 
 
 
 
 
 
 
 
Loans held for sale
 
 
 
 
 
 
 
 
 
Consumer credit products
45,582

 
42,342

 
24,233

 

 

SBA/USDA(1)
17,257

 
17,403

 
9,327

 
15,606

 

Total loans held for sale
62,839

 
59,745

 
33,560

 
15,606

 

 
 
 
 
 
 
 
 
 
 
National Lending loans and leases
 
 
 
 
 
 
 
 
 
Asset based lending
615,309

 
572,210

 
554,072

 
477,917

 

Factoring
320,344

 
287,955

 
284,912

 
284,221

 

Lease financing
341,957

 
321,414

 
290,889

 
265,315

 

Insurance premium finance
358,772

 
307,875

 
330,712

 
337,877

 
303,603

SBA/USDA
99,791

 
77,481

 
67,893

 
59,374

 

Other commercial finance
99,677

 
98,956

 
89,402

 
85,145

 
11,418

Commercial finance(2)
1,835,850

 
1,665,891

 
1,617,880

 
1,509,849

 
315,021

Consumer credit products
155,539

 
139,617

 
96,144

 
80,605

 
26,583

Other consumer finance
164,727

 
170,824

 
182,510

 
189,756

 
194,344

Consumer finance
320,266

 
310,441

 
278,654

 
270,361

 
220,927

Tax services
24,410

 
84,824

 
76,575

 
1,073

 
14,281

Warehouse finance
250,003

 
186,697

 
176,134

 
65,000

 

Total National Lending loans and leases
2,430,529

 
2,247,853

 
2,149,243

 
1,846,283

 
550,229

Community Banking loans
 
 
 
 
 
 
 
 
 
Commercial real estate and operating
877,412

 
869,917

 
863,753

 
790,890

 
751,146

Consumer one-to-four family real estate and other
256,853

 
257,079

 
256,341

 
247,318

 
237,704

Agricultural real estate and operating
61,169

 
60,167

 
58,971

 
60,498

 
60,096

Total Community Banking loans
1,195,434

 
1,187,163

 
1,179,065

 
1,098,706

 
1,048,946

Total gross loans and leases
3,625,963

 
3,435,016

 
3,328,308

 
2,944,989

 
1,599,175

Allowance for loan and lease losses
(43,505
)
 
(48,672
)
 
(21,290
)
 
(13,040
)
 
(21,950
)
Net deferred loan and lease origination fees (costs)
5,068

 
2,964

 
1,190

 
(250
)
 
(1,881
)
Total loans and leases, net of allowance
$
3,587,526

 
$
3,389,308

 
$
3,308,208

 
$
2,931,699

 
$
1,575,344

(1) The June 30, 2019 balance included $0.7 million of an interest rate mark premium related to the acquired loans and leases from the Crestmark acquisition.
(2) The June 30, 2019 balance included $6.8 million and $3.2 million of credit and interest rate mark discounts, respectively, related to the acquired loans and leases from the Crestmark acquisition.
The Company continued to utilize sales of securities and cash flow from its amortizing securities portfolio to fund loan and lease growth. Investment securities totaled $1.50 billion at June 30, 2019, as compared to $2.15 billion at June 30, 2018.
Total gross loans and leases increased $2.03 billion, or 127%, to $3.63 billion at June 30, 2019, from $1.60 billion at June 30, 2018. This was primarily driven by loans and leases attributable to the acquired Crestmark commercial finance division, along with increases in warehouse finance and consumer credit product loans and growth of 18% in insurance premium finance loans and 14% in community banking loans.
At June 30, 2019, commercial finance loans, which comprised 51% of the Company's gross loan and lease portfolio, totaled $1.84 billion, reflecting growth of $170.0 million, or 10%, from March 31, 2019. Consumer credit product loans grew by $15.9 million, or 11%, and warehouse finance loans increased by $63.3 million, or 34%, at June 30, 2019 as compared to March 31, 2019. The warehouse finance loan increase was driven by the addition of a highly-secured, consumer receivable warehouse line of credit during the fiscal 2019 third quarter.



3



Asset Quality
The Company’s allowance for loan and lease losses was $43.5 million at June 30, 2019, compared to $22.0 million at June 30, 2018, driven primarily by increases in the allowance of $11.4 million in commercial finance, $5.2 million in tax services, $3.8 million in consumer lending, and $0.9 million in the community banking portfolio.
(Unaudited)
Three Months Ended
 
Nine Months Ended
Allowance for loan and lease loss activity
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
Beginning balance
$
48,672

 
$
21,290

 
$
27,078

 
$
13,040

 
$
7,534

Provision - tax services loans
914

 
22,473

 
1,189

 
24,883

 
20,335

Provision - all other loans and leases
8,198

 
10,845

 
4,126

 
26,646

 
4,391

Charge-offs - tax services loans
(9,627
)
 
(1
)
 
(10,507
)
 
(9,670
)
 
(10,507
)
Charge-offs - all other loans and leases
(5,124
)
 
(6,522
)
 
(243
)
 
(14,407
)
 
(742
)
Recoveries - tax services loans
36

 
84

 
1

 
212

 
423

Recoveries - all other loans and leases
436

 
503

 
306

 
2,801

 
516

Ending balance
$
43,505

 
$
48,672

 
$
21,950

 
$
43,505

 
$
21,950

Provision for loan and lease losses was $9.1 million for the quarter ended June 30, 2019, compared to $5.3 million for the comparable period in the prior fiscal year. The increase in provision was primarily driven by loan and lease growth in the commercial finance portfolio and provision expense to maintain allowance levels. Net charge-offs were $14.3 million for the quarter ended June 30, 2019 compared to $10.4 million for the quarter ended June 30, 2018. The total net charge-offs for the quarter ended June 30, 2019 primarily consisted of seasonal net charge-offs of $9.6 million in the tax services loan portfolio, which represented a decrease of $0.9 million, or 9%, from the comparable quarter of the prior fiscal year. The overall increase in total net charge-offs from the comparable quarter of the prior fiscal year was primarily driven by activity in the commercial finance and other portfolios.
The Company's non-performing assets at June 30, 2019, were $51.0 million, representing 0.84% of total assets, compared to $40.9 million, or 0.68% of total assets at March 31, 2019 and $35.7 million, or 0.86% of total assets at June 30, 2018. The Company's non-performing loans and leases at June 30, 2019 were $20.8 million, representing 0.57% of total loans and leases, compared to $9.6 million, or 0.28% of total loans and leases, at March 31, 2019 and $5.7 million, or 0.36% of total loans and leases, at June 30, 2018.
Deposits, Borrowings and Other Liabilities
Total average deposits for the fiscal 2019 third quarter increased by $1.43 billion, or 45%, compared to the same period in fiscal 2018. Average wholesale deposits increased $1.07 billion, or 235%, primarily related to the Crestmark acquisition, and noninterest-bearing deposits grew by $244.5 million, or 10%, in each case, for the 2019 fiscal third quarter when compared to the same period in fiscal 2018.
The average balance of total deposits and interest-bearing liabilities was $5.14 billion for the three-month period ended June 30, 2019, compared to $3.70 billion for the same period in the prior fiscal year, representing an increase of 39%.
Total end-of-period deposits increased 36%, to $4.78 billion at June 30, 2019, compared to $3.52 billion at June 30, 2018. The increase in end-of-period deposits was primarily a result of increases in wholesale deposits, noninterest- bearing deposits, certificates of deposits and interest-bearing checking deposits.
Regulatory Capital
The Company and MetaBank remained above the federal regulatory minimum capital requirements at June 30, 2019 and continued to be classified as well-capitalized institutions. Regulatory capital ratios of the Company and the Bank are stated in the table below.
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.

4



As of the dates indicated
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
Company
 
 
 
 
 
 
 
 
 
Tier 1 leverage capital ratio
8.05
%
 
7.45
%
 
7.90
%
 
8.50
%
 
8.29
%
Common equity Tier 1 capital ratio
10.19
%
 
10.94
%
 
10.10
%
 
10.56
%
 
13.92
%
Tier 1 capital ratio
10.55
%
 
11.31
%
 
10.47
%
 
10.97
%
 
14.35
%
Total capital ratio
13.22
%
 
14.20
%
 
12.69
%
 
13.18
%
 
18.37
%
MetaBank
 
 
 
 
 
 
 
 
 
Tier 1 leverage capital ratio
9.37
%
 
8.42
%
 
9.01
%
 
9.75
%
 
10.16
%
Common equity Tier 1 capital ratio
12.22
%
 
12.72
%
 
11.87
%
 
12.50
%
 
17.57
%
Tier 1 capital ratio
12.27
%
 
12.76
%
 
11.91
%
 
12.56
%
 
17.57
%
Total capital ratio
13.26
%
 
13.92
%
 
12.41
%
 
12.89
%
 
18.50
%
The following table provides certain non-GAAP financial measures used to compute certain of the ratios included in the table above for the periods presented, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:
Standardized Approach(1)
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
(Dollars in Thousands)
Total stockholders' equity
$
822,901

 
$
823,709

 
$
770,728

 
$
747,726

 
$
443,913

Adjustments:
 
 
 
 
 
 
 
 
 
LESS: Goodwill, net of associated deferred tax liabilities
302,850

 
302,768

 
299,037

 
299,456

 
94,781

LESS: Certain other intangible assets
53,249

 
56,456

 
61,317

 
64,716

 
46,098

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
13,858

 
7,381

 
4,720

 

 

LESS: Net unrealized losses on available-for-sale securities
2,329

 
(10,022
)
 
(28,829
)
 
(33,114
)
 
(28,601
)
LESS: Noncontrolling interest
3,508

 
3,528

 
3,267

 
3,574

 

LESS: Unrealized currency gains (losses)

 
(242
)
 
(357
)
 
3

 

Common Equity Tier 1 Capital (1)
447,107

 
463,840

 
431,573

 
413,091

 
331,635

Long-term borrowings and other instruments qualifying as Tier 1
13,661

 
13,661

 
13,661

 
13,661

 
10,310

Tier 1 minority interest not included in common equity tier 1 capital
2,119

 
2,064

 
1,796

 
2,118

 

Total Tier 1 Capital
462,887

 
479,565

 
447,030

 
428,870

 
341,945

Allowance for loan and lease losses
43,641

 
48,812

 
21,422

 
13,185

 
22,151

Subordinated debentures (net of issuance costs)
73,605

 
73,566

 
73,528

 
73,491

 
73,442

Total Capital
$
580,133

 
$
601,963

 
$
541,980

 
$
515,546

 
$
437,538

(1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes are being fully phased in through the end of 2021.


5



The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
(Dollars in Thousands)
Total Stockholders' Equity
$
822,901

 
$
823,709

 
$
770,728

 
$
747,726

 
$
443,913

Less: Goodwill
307,941

 
307,464

 
303,270

 
303,270

 
98,723

Less: Intangible assets
56,153

 
60,506

 
66,366

 
70,719

 
46,098

     Tangible common equity
458,807

 
455,739

 
401,092

 
373,737

 
299,092

Less: Accumulated Other Comprehensive Income (Loss) ("AOCI")
2,308

 
(10,264
)
 
(29,186
)
 
(33,111
)
 
(28,601
)
     Tangible common equity excluding AOCI
$
456,499

 
$
466,003

 
$
430,278

 
$
406,848

 
$
327,693


Future Outlook
The Company expects fiscal 2019 earnings per common share ("EPS") on an adjusted basis to range between $2.66 to $2.81. The Company's estimates on an adjusted basis exclude the non-recurring $0.12 EPS effect, or $6.1 million, of pre-tax executive transition agreement costs incurred in the quarter ended March 31, 2019. The adjusted EPS guidance also excludes the $0.17 EPS effect, or $6.6 million, after-tax net charge to earnings related to the previously disclosed DC Solar matters in the quarter ended March 31, 2019. As a result, GAAP earnings per share for fiscal 2019 is expected to be in the range of $2.37 to $2.52 per share. The Company reaffirms the earnings outlook for fiscal year 2020 GAAP EPS to be in the range of $3.10 to $3.80.
Conference Call
The Company will host a conference call and earnings webcast at 4:00 p.m. CDT (5:00 p.m. EDT) on Tuesday, July 30, 2019. The live webcast of the call can be accessed from Meta’s Investor Relations website at www.metafinancialgroup.com.  Telephone participants may access the live conference call by dialing (844) 461-9934 beginning approximately 10 minutes prior to start time. Please ask to join the Meta Financial conference call, and provide conference ID 3047728 upon request. International callers should dial (636) 812-6634. A webcast replay will also be archived at www.metafinancialgroup.com for one year.


6



Forward-Looking Statements
The Company and MetaBank 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 Exchange Commission (“SEC”), the Company’s reports to stockholders, and in other communications by the Company and MetaBank, 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,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results; customer retention; loan and other product demand; important components of the Company's statements of financial condition and operations; growth and expansion; new products and services, such as those offered by MetaBank or the Company's Payments divisions (which include Meta Payment Systems, Refund Advantage, EPS Financial and Specialty Consumer Services); credit quality and adequacy of reserves; technology; and the Company's employees. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; the expected growth opportunities, beneficial synergies and/or operating efficiencies from the Crestmark acquisition may not be fully realized or may take longer to realize than expected; customer losses and business disruption related to the Crestmark acquisition; unanticipated or unknown losses and liabilities may be incurred by the Company following the Crestmark acquisition; the costs, risks and effects on the Company of the ongoing federal investigation and bankruptcy proceedings involving DC Solar Solutions, Inc., DC Solar Distribution, Inc., and their affiliates, including the potential financial impact of those matters on the net book value of Company assets leased to DC Solar Distribution and the Company’s ability to recognize certain investment tax credits associated with such assets, and the results of the Company’s review of its due diligence processes with respect to the Company’s alternative energy assets; factors relating to the Company’s share repurchase program; actual changes in interest rates and the Fed Funds rate; additional changes in tax laws; the strength of the United States' economy, in general, and the strength of the local economies in which the Company conducts operations; risks relating to the recent U.S. government shutdown, including any adverse impact on our ability to originate or sell SBA/USDA loans and any delay by the Internal Revenue Service in processing taxpayer refunds, thereby increasing the cost to us of our refund advance loans; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), as well as efforts of the United States Congress and the United States Treasury in conjunction with bank regulatory agencies to stimulate the economy and protect the financial system; inflation, market, and monetary fluctuations; the timely and efficient development of, and acceptance of, new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value of these products and services by users; the risks of dealing with or utilizing third parties, including, in connection with the Company’s refund advance business, the risk of reduced volume of refund advance loans as a result of reduced customer demand for or acceptance of usage of Meta’s strategic partners’ refund advance products; any actions which may be initiated by our regulators in the future; the impact of changes in financial services laws and regulations, including, but not limited to, laws and regulations relating to the tax refund industry and the insurance premium finance industry; our relationship with our primary regulators, the Office of the Comptroller of the Currency and the Federal Reserve, as well as the Federal Deposit Insurance Corporation, which insures MetaBank’s deposit accounts up to applicable limits; technological changes, including, but not limited to, the protection of electronic files or databases; acquisitions; litigation risk, in general, including, but not limited to, those risks involving MetaBank's divisions; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by MetaBank of its status as a well-capitalized institution, particularly in light of our growing deposit base, a portion of which has been characterized as “brokered;” changes in consumer spending and saving habits; and the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase.
The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2018, and in other filings made with the SEC. The Company expressly disclaims any intent or obligation to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason.

7



Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except Share and Per Share Data(1))
ASSETS
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
Cash and cash equivalents
$
100,732

 
$
156,461

 
$
164,169

 
99,977

 
$
71,276

Investment securities available for sale, at fair value
961,897

 
1,081,663

 
1,340,870

 
1,484,160

 
1,349,642

Mortgage-backed securities available for sale, at fair value
395,201

 
413,493

 
354,186

 
364,065

 
575,999

Investment securities held to maturity, at cost
138,128

 
146,992

 
153,075

 
163,893

 
215,850

Mortgage-backed securities held to maturity, at cost
7,414

 
7,606

 
7,661

 
7,850

 
8,218

Loans held for sale
62,839

 
59,745

 
33,560

 
15,606

 

Loans and leases
3,631,031

 
3,437,980

 
3,329,498

 
2,944,739

 
1,597,294

Allowance for loan and lease losses
(43,505
)
 
(48,672
)
 
(21,290
)
 
(13,040
)
 
(21,950
)
Federal Home Loan Bank Stock, at cost
17,236

 
7,436

 
15,600

 
23,400

 
7,446

Accrued interest receivable
19,722

 
20,281

 
22,076

 
22,016

 
17,825

Premises, furniture, and equipment, net
46,360

 
45,457

 
44,299

 
40,458

 
20,374

Rental equipment, net
184,732

 
140,087

 
146,815

 
107,290

 

Bank-owned life insurance
89,193

 
88,565

 
87,934

 
87,293

 
86,655

Foreclosed real estate and repossessed assets
29,514

 
29,548

 
31,548

 
31,638

 
29,922

Goodwill
307,941

 
307,464

 
303,270

 
303,270

 
98,723

Intangible assets
56,153

 
60,506

 
66,366

 
70,719

 
46,098

Prepaid assets
22,023

 
26,597

 
31,483

 
27,906

 
23,211

Deferred taxes
21,630

 
19,079

 
23,607

 
18,737

 
23,025

Other assets
52,831

 
49,754

 
48,038

 
35,090

 
19,551

 
 
 
 
 
 
 
 
 
 
        Total assets
$
6,101,072

 
$
6,050,042

 
$
6,182,765

 
5,835,067

 
$
4,169,159

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
 
Noninterest-bearing checking
$
2,751,931

 
$
3,034,428

 
$
2,739,757

 
2,405,274

 
$
2,637,987

Interest-bearing checking
157,802

 
183,492

 
128,662

 
111,587

 
103,065

Savings deposits
52,179

 
59,978

 
52,229

 
54,765

 
57,356

Money market deposits
68,604

 
56,563

 
54,559

 
51,995

 
45,115

Time certificates of deposit
116,698

 
154,401

 
170,629

 
276,180

 
57,151

Wholesale deposits
1,628,000

 
1,481,445

 
1,790,611

 
1,531,186

 
620,959

        Total deposits
4,775,214

 
4,970,307

 
4,936,447

 
4,430,987

 
3,521,633

Short-term borrowings
146,613

 
11,583

 
231,293

 
425,759

 
27,290

Long-term borrowings
209,765

 
99,800

 
88,983

 
88,963

 
85,580

Accrued interest payable
12,350

 
9,239

 
11,280

 
7,794

 
3,705

Accrued expenses and other liabilities
134,229

 
135,404

 
144,034

 
133,838

 
87,038

          Total liabilities
5,278,171

 
5,226,333

 
5,412,037

 
5,087,341

 
3,725,246

 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY
 

 
 
 
 
 
 
 
 
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018

 

 

 

 

Common stock, $.01 par value; 90,000,000 shares authorized, 37,878,694, 39,565,496, 39,494,919, 39,192,063, and 29,122,596 shares issued and 37,878,205, 39,450,938, 39,405,508, 39,167,280, and 29,101,605 shares outstanding at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018
379

 
395

 
394

 
393

 
291

Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018

 

 

 

 

Additional paid-in capital
578,715

 
576,406

 
572,156

 
565,811

 
267,610

Retained earnings
238,004

 
258,600

 
228,453

 
213,048

 
206,284

Accumulated other comprehensive (loss) income
2,308

 
(10,264
)
 
(29,186
)
 
(33,111
)
 
(28,601
)
Treasury stock, at cost, 489, 114,558, 89,411, 24,783, and 20,991 common shares at June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018
(13
)
 
(4,956
)
 
(4,356
)
 
(1,989
)
 
(1,671
)
Total equity attributable to parent
819,393

 
820,181

 
767,461

 
744,152

 
443,913

Non-controlling interest
3,508

 
3,528

 
3,267

 
3,574

 

Total stockholders’ equity
822,901

 
823,709

 
770,728

 
747,726

 
443,913

 
 
 
 
 
 
 
 
 
 
         Total liabilities and stockholders’ equity
$
6,101,072

 
$
6,050,042

 
$
6,182,765

 
5,835,067

 
$
4,169,159

(1) All share and per share data reported in this release for all periods presented has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

8



Consolidated Statements of Operations (Unaudited)
(Dollars in Thousands, Except Share and Per Share Data(1))
 
Three Months Ended
 
Nine Months Ended
 
June 30, 2019
 
March 31, 2019
 
June 30, 2018
 
June 30,
2019
 
June 30,
2018
Interest and dividend income:
 
 
 
 
 
 
 
 
 
Loans and leases, including fees
$
69,732

 
$
73,670

 
$
19,056

 
$
203,900

 
$
53,344

Mortgage-backed securities
3,063

 
2,861

 
3,950

 
8,622

 
11,755

Other investments
8,837

 
11,763

 
11,098

 
32,380

 
33,234

 
81,632

 
88,294

 
34,104

 
244,902

 
98,333

Interest expense:
 

 
 
 
 
 
 

 
 
Deposits
10,395

 
14,740

 
2,264

 
35,731

 
7,106

FHLB advances and other borrowings
4,269

 
2,204

 
3,429

 
10,581

 
9,215

 
14,664

 
16,944

 
5,693

 
46,312

 
16,321

 
 
 
 
 
 
 
 
 
 
Net interest income
66,968

 
71,350

 
28,411

 
198,590

 
82,012

 
 
 
 
 
 
 
 
 
 
Provision for loan for lease losses
9,112

 
33,318

 
5,315

 
51,529

 
24,726

 
 
 
 
 
 
 
 
 
 
Net interest income after provision for loan and lease losses
57,856

 
38,032

 
23,096

 
147,061

 
57,286

 
 
 
 
 
 
 
 
 
 
Noninterest income:
 

 
 
 
 

 
 

 
 

Refund transfer product fees
6,697

 
31,601

 
7,358

 
38,559

 
41,353

Tax advance product fees
34

 
33,038

 
(46
)
 
34,757

 
35,739

Card fees
19,537

 
23,052

 
22,807

 
61,939

 
74,910

Rental income
9,386

 
9,890

 

 
30,167

 

Loan and lease fees
1,012

 
925

 
1,111

 
3,185

 
3,445

Bank-owned life insurance
628

 
631

 
633

 
1,901

 
1,952

Deposit fees
2,335

 
2,093

 
1,134

 
6,365

 
2,964

Gain (loss) on sale of securities available-for-sale, net
440

 
231

 
(22
)
 
649

 
(1,198
)
Gain on sale of loans and leases
1,913

 
1,085

 

 
3,865

 

Gain (loss) on foreclosed real estate

 
(200
)
 

 
(185
)
 
(19
)
Other income
1,808

 
2,679

 
250

 
5,363

 
766

Total noninterest income
43,790

 
105,025

 
33,225

 
186,565

 
159,912

 
 
 
 
 
 
 
 
 
 
Noninterest expense:
 

 
 
 
 

 
 

 
 

Compensation and benefits
35,176

 
49,164

 
24,439

 
117,350

 
78,951

Refund transfer product expense
287

 
7,181

 
1,694

 
7,478

 
11,665

Tax advance product expense
425

 
2,225

 
(19
)
 
3,101

 
1,736

Card processing
4,613

 
6,971

 
7,068

 
18,670

 
20,798

Occupancy and equipment
7,136

 
7,212

 
4,720

 
20,806

 
14,087

Operating lease equipment depreciation
6,029

 
4,485

 

 
18,280

 

Legal and consulting
4,065

 
4,308

 
2,781

 
12,341

 
8,436

Marketing
368

 
585

 
416

 
1,493

 
1,637

Data processing
260

 
321

 
301

 
1,018

 
958

Intangible amortization
4,374

 
5,596

 
1,664

 
14,352

 
6,077

Impairment expense

 
9,660

 

 
9,660

 

Other expense
9,735

 
12,546

 
5,988

 
32,467

 
17,247

Total noninterest expense
72,468

 
110,254

 
49,053

 
257,016

 
161,592

 
 
 
 
 
 
 
 
 
 
Income before income tax expense
29,178

 
32,803

 
7,268

 
76,610

 
55,606

 
 
 
 
 
 
 
 
 
 
Income tax (benefit) expense
(1,158
)
 
(395
)
 
476

 
(3,244
)
 
12,708

 
 
 
 
 
 
 
 
 
 
Net income before noncontrolling interest
30,336

 
33,198

 
6,792

 
79,854

 
42,898

Net income attributable to noncontrolling interest
1,045

 
1,078

 

 
3,045

 

Net income attributable to parent
$
29,291

 
$
32,120

 
$
6,792

 
$
76,809

 
$
42,898

 
 
 
 
 
 
 
 
 
 
Earnings per common share
 

 
 
 
 
 
 

 
 
Basic
$
0.75

 
$
0.81

 
$
0.23

 
$
1.96

 
$
1.48

Diluted
$
0.75

 
$
0.81

 
$
0.23

 
$
1.95

 
$
1.47

Shares used in computing earnings per share
 
 
 
 
 
 
 
 
 
Basic
38,903,266

 
39,429,595

 
29,099,472

 
39,220,793

 
29,043,309

Diluted
38,977,690

 
39,496,832

 
29,218,980

 
39,289,011

 
29,159,985

(1) All share and per share data reported in this release for all periods presented has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

9



Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Only the yield/rate reflects tax-equivalent adjustments. Non-accruing loans and leases have been included in the table as loans carrying a zero yield.
Three Months Ended June 30,
2019
 
2018
(Dollars in Thousands)
Average
Outstanding
Balance
 
Interest
Earned /
Paid
 
Yield /
Rate
(1)
 
Average
Outstanding
Balance
 
Interest
Earned /
Paid
 
Yield /
Rate
(2)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash & fed funds sold
$
80,100

 
$
521

 
2.61
%
 
$
57,164

 
$
388

 
2.72
%
Mortgage-backed securities
421,725

 
3,063

 
2.91
%
 
617,815

 
3,950

 
2.56
%
Tax exempt investment securities
690,732

 
4,058

 
2.98
%
 
1,373,444

 
8,635

 
3.34
%
Asset-backed securities
307,581

 
2,701

 
3.52
%
 
189,389

 
1,537

 
3.25
%
Other investment securities
199,681

 
1,557

 
3.13
%
 
72,381

 
538

 
2.98
%
Total investments
1,619,719

 
11,379

 
3.09
%
 
2,253,029

 
14,660

 
3.11
%
Commercial finance loans and leases
1,775,905

 
44,332

 
10.01
%
 
299,676

 
3,813

 
5.10
%
Consumer finance loans
364,633

 
8,178

 
9.00
%
 
208,937

 
3,717

 
7.13
%
Tax services loans
45,142

 

 
%
 
22,268

 

 
%
Warehouse finance loans
223,546

 
3,491

 
6.26
%
 

 

 
%
National lending loans and leases
2,409,226

 
56,001

 
9.32
%
 
530,881

 
7,530

 
5.69
%
Community banking loans
1,189,912

 
13,731

 
4.63
%
 
1,030,016

 
11,526

 
4.49
%
Total loans and leases
3,599,138

 
69,732

 
7.77
%
 
1,560,897

 
19,056

 
4.90
%
Total interest-earning assets
$
5,298,957

 
$
81,632

 
6.26
%
 
$
3,871,090

 
$
34,104

 
3.82
%
Non-interest-earning assets
820,474

 
 
 
 
 
369,200

 
 
 
 
Total assets
$
6,119,431

 
 
 
 
 
$
4,240,290

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
$
137,950

 
$
85

 
0.25
%
 
$
98,235

 
$
54

 
0.22
%
Savings
54,247

 
9

 
0.07
%
 
59,546

 
10

 
0.07
%
Money markets
58,782

 
107

 
0.73
%
 
46,742

 
28

 
0.24
%
Time deposits
128,165

 
633

 
1.98
%
 
60,373

 
167

 
1.11
%
Wholesale deposits
1,521,594

 
9,561

 
2.52
%
 
453,885

 
2,005

 
1.77
%
Total interest-bearing deposits
1,900,738

 
10,395

 
2.19
%
 
718,781

 
2,264

 
1.26
%
Overnight fed funds purchased
363,857

 
2,368

 
2.61
%
 
402,088

 
2,041

 
2.04
%
FHLB advances
54,341

 
324

 
2.39
%
 

 

 
%
Subordinated debentures
73,583

 
1,163

 
6.34
%
 
73,430

 
1,102

 
6.02
%
Other borrowings
40,653

 
414

 
4.08
%
 
36,408

 
286

 
3.15
%
Total borrowings
532,434

 
4,269

 
3.22
%
 
511,926

 
3,429

 
2.69
%
Total interest-bearing liabilities
2,433,172

 
14,664

 
2.42
%

1,230,707

 
5,693

 
1.86
%
Non-interest bearing deposits
2,710,288

 

 
%
 
2,465,750

 

 
%
Total deposits and interest-bearing liabilities
$
5,143,460

 
$
14,664

 
1.14
%
 
$
3,696,457

 
$
5,693

 
0.62
%
Other non-interest-bearing liabilities
149,207

 
 
 
 
 
98,973

 
 
 
 
Total liabilities
5,292,667

 
 
 
 
 
3,795,430

 
 
 
 
Shareholders' equity
826,764

 
 
 
 
 
444,860

 
 
 
 
Total liabilities and shareholders' equity
$
6,119,431

 
 
 
 
 
$
4,240,290

 
 
 
 
Net interest income and net interest rate spread including non-interest-bearing deposits
 
 
$
66,968

 
5.12
%
 
 
 
$
28,411

 
3.21
%
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
 
 
 
 
5.07
%
 
 
 
 
 
2.94
%
Tax-equivalent effect
 
 
 
 
0.08
%
 
 
 
 
 
0.29
%
Net interest margin, tax-equivalent(3)
 
 
 
 
5.15
%
 
 
 
 
 
3.23
%
(1) Tax rate used to arrive at the TEY for the three months ended June 30, 2019 was 21%.
(2) Tax rate used to arrive at the TEY for the three months ended June 30, 2018 was 24.53%.
(3) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully-taxable-equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.

10



Selected Financial Information
As of and for the three months ended:
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
 
 
 
 
 
 
 
 
 
Equity to total assets
13.49
%
 
13.61
%
 
12.47
%
 
12.81
%
 
10.65
%
Book value per common share outstanding
$
21.72

 
$
20.88

 
$
19.56

 
$
19.09

 
$
15.25

Tangible book value per common share outstanding
$
12.11

 
$
11.55

 
$
10.18

 
$
9.54

 
$
10.28

Tangible book value per common share outstanding excluding AOCI
$
12.05

 
$
11.81

 
$
10.92

 
$
10.39

 
$
11.26

Common shares outstanding
37,878,205

 
39,450,938

 
39,405,508

 
39,167,280

 
29,101,605

Non-performing assets to total assets
0.84
%
 
0.68
%
 
0.73
%
 
0.72
%
 
0.86
%
Non-performing loans and leases to total loans and leases
0.57
%
 
0.28
%
 
0.42
%
 
0.35
%
 
0.36
%
Net interest margin
5.07
%
 
5.06
%
 
4.60
%
 
4.05
%
 
2.94
%
Net interest margin, tax-equivalent
5.15
%
 
5.18
%
 
4.76
%
 
4.27
%
 
3.23
%
Return on average assets
1.91
%
 
1.89
%
 
1.03
%
 
0.65
%
 
0.64
%
Return on average equity
14.17
%
 
16.18
%
 
8.19
%
 
5.34
%
 
6.11
%
Full-time equivalent employees
1,218

 
1,231

 
1,229

 
1,219

 
932

Select Quarterly Expenses
(Dollars in Thousands)
Actual
Anticipated
For the Three Months Ended
Jun 30,
2019
Sep 30,
2019
Dec 31,
2019
Mar 31,
2020
Jun 30,
2020
Sep 30,
2020
Dec 31,
2020
Mar 31,
2021
Jun 30,
2021
 
 
 
 
 
 
 
 
 
 
Amortization of Intangibles (1)
$
4,374

$
3,358

$
2,675

$
3,400

$
2,632

$
2,277

$
2,008

$
2,752

$
2,008

Executive Officer Stock Compensation (2)
$
927

$
937

$
679

$
669

$
669

$
676

$
485

$
473

$
478

(1) These amounts are based upon the current reporting period’s intangible assets only.  This table makes no assumption for expenses related to future acquired intangible assets.
(2) These amounts are based upon the long-term employment agreements signed in the first and second quarters of fiscal 2017 by the Company’s three highest paid executives at that time. This table makes no assumption for expenses related to any additional future agreements entered into, or to be entered into, after such quarters. The amounts in this table were not impacted by the Executive Separation Agreement entered into by the Company as of January 16, 2019 and filed with the Securities and Exchange Commission on January 17, 2019.

About Meta Financial Group®
Meta Financial Group, Inc. ® (Nasdaq: CASH) is the holding company for the financial services company MetaBank® (“Meta”). Founded in 1954, Meta has grown to operate in several different financial sectors: payments, commercial finance, tax services, community banking and consumer lending. Meta works with high-value niche industries, strategic-growth companies and technology adopters to grow their businesses and build more profitable customer relationships. Meta tailors solutions for bank and non-bank businesses, and provides a focused collaborative approach. The organization is helping to shape the evolving financial services landscape by directly investing in innovation and complementary businesses that strategically expand its suite of services. Meta has a national presence and over 1,200 employees, with corporate headquarters in Sioux Falls, S.D. For more information, visit the Meta Financial Group website or LinkedIn.
Investor Relations and Media Contact:
 
Brittany Kelley Elsasser
 
Director of Investor Relations
 
605-362-2423
 
bkelley@metabank.com
 

11
Exhibit


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