Business Wire | Jan 26, 2022 04:10PM EST

Meta Financial Group, Inc.(r) Announces Results for 2022 Fiscal First Quarter

Jan. 26, 2022

SIOUX FALLS, S.D.--(BUSINESS WIRE)--Jan. 26, 2022--Meta Financial Group, Inc.(r) (Nasdaq: CASH) ("Meta" or the "Company") reported net income of $61.3 million, or $2.00 per share, for the three months ended December 31, 2021, compared to net income of $28.0 million, or $0.84 per share, for the three months ended December 31, 2020. During the fiscal first quarter of 2022, the Company recognized a gain on sale of Meta names and trademarks of $50.0 million. Excluding the impact of the gain on sale of these assets, the Company's adjusted net income for the quarter totaled $23.9 million, or $0.78 per share. See non-GAAP reconciliation table below.

"We made continued progress towards our three strategic initiatives, as reflected in our strong fiscal first quarter results," said CEO Brett Pharr. "We generated growth in earnings per share while positioning the Company for future growth through two significant strategic transactions during the first quarter."

"Following the initiation of a comprehensive brand strategy review earlier in calendar 2021, we announced our agreement to sell the Meta name and trademarks to Beige Key LLC. This transaction provides significant funds, allowing us to advance a new corporate name and brand that represent our significant evolution and better enable us to fulfill our vision of 'Financial Inclusion for All(r),'" Pharr noted.

Executive Vice President and CFO Glen Herrick added, "We are also pleased to have sold our remaining legacy community bank loans, completing the wind-down of that portfolio and marking another critical step in optimizing our interest-earning asset mix. Coupled with our strong financial results, our momentum continues to build, giving us confidence in our positive outlook and growth trajectory."

Business Development Highlights for the 2022 Fiscal First Quarter

* Entered into an agreement with Beige Key LLC to sell the Meta names and trademarks for $60 million, of which $50 million was recognized as noninterest income in the first fiscal quarter. The Company plans to use a portion of the proceeds to implement its new corporate name and brand, which is expected to be completed by the end of 2022, and estimates its rebranding expenses will range between $15 million to $20 million. The remainder of the proceeds will be used for general corporate purposes including tax-efficient capital allocation.

* Sold all remaining $192.5 million of community banking loans, reducing this portfolio to zero and generating a favorable pre-tax impact of approximately $3.9 million after netting the recovery of provision expense from the portfolio's $12.3 million allowance and the loss on sale of loans of $8.4 million.

* Extended the agreement with Emerald Financial Services, LLC, a wholly-owned, indirect subsidiary of H&R Block, through June 30, 2025. The agreement adds valuable new financial product offerings and capabilities for customers, including Spruce Accounts, a mobile banking platform that features a spending account with an attached debit card. This innovative product, designed to help a consumer better manage their financial resources and meet spending goals, is powered by MetaBank.

* Originated $21.2 million in aggregate principal of renewable energy loan financing for the first quarter of fiscal 2022, resulting in $5.7 million in total net investment tax credits.

* Repurchased 1,711,501 shares, at an average price of $58.97, in the first fiscal quarter. The company purchased an additional 130,000 shares through January 20, 2022 at an average share price of $61.26 and has 5,474,375 shares available for repurchase under the common stock share repurchase program announced during the fourth quarter of fiscal year 2021.

Financial Highlights for the 2022 Fiscal First Quarter

* Total revenue for the first quarter was $158.2 million, an increase of $46.7 million, or 42%, compared to the same quarter in fiscal 2021, primarily driven by the gain on sale of the Meta names and trademarks.

* Net interest income for the first quarter was $71.6 million, an increase of $5.6 million compared to $66.0 million in the first quarter last year.

* Net interest margin ("NIM") was essentially unchanged, declining to 4.59% for the first quarter from 4.65% during the same period of last year. The increase in higher-yielding loans and leases was offset by an increase in lower-yielding investment securities balances and the continued low interest rate environment.

* Total gross loans and leases at December 31, 2021 increased $243.0 million, to $3.68 billion, or 7%, compared to December 31, 2020 and increased $74.8 million, or 2%, when compared to September 30, 2021. The increase was driven by growth across our loan portfolios, partially offset by the sale of all remaining community banking loans during the quarter.

Net Interest Income

Net interest income for the first quarter of fiscal 2022 was $71.6 million, an increase of 9% from the same quarter in fiscal 2021. The increase was mainly attributable to an improved earning asset and liability mix, along with increased loan balances.

The first quarter average outstanding balance of loans and leases increased $211.3 million compared to the same quarter of the prior year, primarily due to increases in our core loan and lease portfolios, partially offset by the sale of the remaining community bank portfolio. The Company's average interest-earning assets for the first quarter increased by $547.2 million to $6.18 billion compared with the same quarter in fiscal 2021, primarily due to growth in total investments and total loans and leases.

Fiscal 2022 first quarter NIM decreased to 4.59% from 4.65% in the first quarter of last year. The overall reported tax-equivalent yield ("TEY") on average earning asset yields decreased 13 basis points to 4.69% compared to the prior year quarter, primarily driven by an increase in lower-yielding investment securities balances of $561.4 million. The TEY on the securities portfolio was 1.58% compared to 1.79% for the comparable period last year.

The Company's cost of funds for all deposits and borrowings averaged 0.08% during the fiscal 2022 first quarter, compared to 0.15% during the prior year quarter, primarily driven by a reduction in wholesale deposit balances along with an increase in noninterest bearing deposits. The Company's overall cost of deposits was 0.01% in the fiscal first quarter of 2022, compared to 0.06% in the same quarter last year.

Noninterest Income

Fiscal 2022 first quarter noninterest income increased to $86.6 million, compared to $45.5 million for the same period of the prior year. The significant increase was driven by the $50 million gain on sale of the Meta names and trademarks and to a lesser extent an increase in payments fee income and rental income.

The Company also recognized a loss on sale of other during the quarter of $3.5 million, a $6.3 million decrease from the prior year period, primarily consisting of a $8.4 million loss attributable to the sale of the remaining community bank loans partially offset by a $3.4 million gain on sale of SBA loans.

Also partially offsetting the increase during the quarter was a decrease in other income, which includes a net unrealized loss of $3.3 million on a prior investment in MoneyLion Inc. This loss partially offsets a net unrealized gain of $4.1 million recognized by the Company during the fourth quarter of fiscal 2021 following the completion of MoneyLion's de-SPAC process and listing on the New York Stock Exchange on September 22, 2021.

Noninterest Expense

Noninterest expense increased 14% to $82.4 million for the fiscal 2022 first quarter, from $72.6 million for the same quarter last year. The increase in expense was primarily driven by an increase in compensation expense, other expense, occupancy and equipment expense, and card processing expense. When comparing the fiscal 2022 first quarter to the fourth quarter of 2021, non-interest expense decreased by $11.2 million.

Income Tax Expense

The Company recorded income tax expense of $14.3 million, representing an effective tax rate of 18.9%, for the fiscal 2022 first quarter, compared to $3.5 million, representing an effective tax rate of 10.8%, for the first quarter last year. The increase in income tax expense was primarily due to increased earnings.

The Company originated $21.2 million in solar leases during the fiscal 2022 first quarter, compared to $38.5 million in last year's first quarter. Investment tax credits related to solar leases are recognized ratably based on income throughout each 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.

Investments, Loans and Leases

December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020

Total $ 1,833,733 $ 1,921,568 $ 1,981,852 $ 1,552,892 $ 1,309,452 investments



Loans held for sale

Consumercredit 20,728 23,111 12,582 6,233 234 products

SBA/USDA 15,454 33,083 57,208 61,402 32,983

Community - - 18,115 - 100,442 Bank

Total loansheld for 36,182 56,194 87,905 67,635 133,659 sale



Term 1,038,378 961,019 920,279 891,414 881,306 lending

Asset based 337,236 300,225 263,237 248,735 242,298 lending

Factoring 402,972 363,670 320,629 277,612 275,650

Lease 245,315 266,050 282,940 308,169 283,722 financing

Insurancepremium 385,473 428,867 417,652 344,841 338,227 finance

SBA/USDA 209,521 247,756 263,709 331,917 300,707

Othercommercial 178,853 157,908 118,081 103,234 101,209 finance

Commercial 2,797,748 2,725,495 2,586,527 2,505,922 2,423,119 Finance

Consumercredit 173,343 129,251 105,440 104,842 88,595 products

Otherconsumer 144,412 123,606 122,316 130,822 162,423 finance

Consumer 317,755 252,857 227,756 235,664 251,018 Finance

Tax 100,272 10,405 41,268 225,921 92,548 Services

Warehouse 466,831 419,926 335,704 332,456 318,937 Finance

Community - 199,132 303,984 348,065 353,942 Banking

Total grossloans and 3,682,606 3,607,815 3,495,239 3,648,028 3,439,564 leases

Allowancefor credit (67,623 ) (68,281 ) (91,208 ) (98,892 ) (72,389 )losses

Netdeferredloan and 1,655 1,748 1,431 9,503 9,111 leaseoriginationfees

Total loansand leases, $ 3,616,638 $ 3,541,282 $ 3,405,462 $ 3,558,639 $ 3,376,286 net ofallowance

The Company's investment security balances at December 31, 2021 totaled $1.83 billion, as compared to $1.92 billion at September 30, 2021 and $1.31 billion at December 31, 2020.

Total gross loans and leases totaled $3.68 billion at December 31, 2021, as compared to $3.61 billion at September 30, 2021 and $3.44 billion and as compared to December 31, 2020. The primary drivers for the increase on a linked quarter basis were tax services, commercial finance, consumer credit, and warehouse finance loans, partially offset by the sale of all remaining community bank loans.

Commercial finance loans, which comprised 76% of the Company's gross loan and lease portfolio, totaled $2.80 billion at December 31, 2021, reflecting growth of $72.3 million, or 3%, from September 30, 2021 and $374.6 million, or 15%, from December 31, 2020.

As of December 31, 2021, the Company had 275 loans outstanding with total loan balances of $63.8 million originated as part of the Paycheck Protection Program ("PPP"), compared with 370 loans outstanding with total loan balances of $96.0 million for the quarter ended September 30, 2021. In total, approximately 80% of the PPP loan balances were forgiven through December 31, 2021.

During the first fiscal quarter of 2022, the Company sold all remaining community banking loans. The outstanding balance of community banking loans at September 30, 2021 and December 31, 2020 was $199.1 million and $353.9 million, respectively. The amount of community banking loans sold during the quarter totaled $192.5 million.

Asset Quality

The Company's allowance for credit losses ("ACL") totaled $67.6 million at December 31, 2021, a decrease compared to $68.3 million at September 30, 2021 and $72.4 million at December 31, 2020. The reduction in the ACL at December 31, 2021, when compared to September 30, 2021, was primarily due to a $12.3 million decrease attributable to the community banking portfolio, as all loans have now been sold. This decrease was partially offset by increases within commercial finance of $8.7 million, tax services of $1.6 million, and consumer finance of $1.2 million.

The $4.8 million year-over-year decrease in the ACL was primarily driven by a $14.2 million decrease attributable to the community banking portfolio, due to pay downs and the aforementioned loan sales, along with a $2.4 million decrease in the consumer finance portfolio. These decreases were partially offset by a $11.5 million increase within the commercial finance portfolio, and to a lesser extent, increases within the tax services and warehouse finance portfolios.

The following table presents the Company's ACL as a percentage of its total loans and leases.

As of the Period Ended

December 31, September June 30, March 31, December 31,(Unaudited) 2021 30, 2021 2021 2020 2021



Commercial finance 2.04 % 1.77 % 1.73 % 1.77 % 1.88 %

Consumer finance 2.70 % 2.91 % 3.80 % 4.70 % 4.39 %

Tax services 1.60 % 0.02 % 58.99 % 12.90 % 1.53 %

Warehouse finance 0.10 % 0.10 % 0.10 % 0.10 % 0.10 %

Community bank - % 6.16 % 4.36 % 4.03 % 4.01 %

Total loans and 1.84 % 1.89 % 2.61 % 2.71 % 2.10 %leases

The Company's ACL as a percentage of total loans and leases decreased to 1.84% at December 31, 2021 from 1.89% at September 30, 2021. The decrease in the total loans and leases coverage ratio reflected the release of the community banking portfolio allowance. The coverage ratio for the commercial finance portfolio increased compared to the September 30, 2021 quarter due to specific reserves on two individually evaluated loan relationships. The consumer finance coverage ratio decreased primarily due to an improved overall macroeconomic outlook while the tax services coverage increased due to the seasonal start of tax season, similar to the same period of the prior year. The Company expects to continue to diligently monitor the ACL and adjust as necessary in future periods to maintain an appropriate and supportable level.

Activity in the allowance for credit losses for the periods presented was as follows.

(Unaudited) Three Months Ended

December 31, September 30, December 31, 2021 2021 2020

(Dollars in thousands)

Beginning balance $ 68,281 $ 91,208 $ 56,188

Adoption of CECL accounting - - 12,773 standard

(Reversal of) provision - tax (714 ) 457 454 services loans

Provision - all other loans and 1,184 8,368 5,810 leases

Charge-offs - tax services loans (254 ) (24,849 ) -

Charge-offs - all other loans and (4,605 ) (7,635 ) (5,675 )leases

Recoveries - tax services loans 2,567 51 956

Recoveries - all other loans and 1,164 681 1,883 leases

Ending balance $ 67,623 $ 68,281 $ 72,389

The Company recognized a provision for credit losses of $0.2 million for the quarter ended December 31, 2021, compared to $6.1 million for the comparable period in the prior fiscal year. Net charge-offs were $1.1 million for the quarter ended December 31, 2021, compared to $2.8 million for the quarter ended December 31, 2020. Net charge-offs attributable to the commercial finance portfolio for the quarter were $3.2 million, partially offset by net recoveries from the tax services portfolio of $2.3 million.

The Company's past due loans and leases were as follows for the periods presented.

As ofDecember Accruing and Nonaccruing Loans and Leases Nonperforming Loans and Leases31, 2021

> 89 > 89(Dollars 30-59 60-89 Days Total Total Loans Days Non-in Days Days Past Past Current and Leases Past Due accrual TotalThousands) Past Due Past Due Due Due Receivable and balance Accruing



Loans held $ 9 $ 2 $ - $ 11 $ 36,171 $ 36,182 $ - $ - $ -for sale



Commercial $ 41,473 $ 8,539 $ 7,568 $ 57,580 $ 2,740,168 $ 2,797,748 $ 3,896 $ 37,760 $ 41,656finance

Consumer 4,880 2,277 1,534 8,691 309,064 317,755 1,534 - 1,534finance

Tax - - - - 100,272 100,272 - - -services

Warehouse - - - - 466,831 466,831 - - -finance

Totalloans andleases 46,353 10,816 9,102 66,271 3,616,335 3,682,606 5,430 37,760 43,190held forinvestment



Totalloans and 46,362 10,818 9,102 66,282 3,652,506 3,718,788 5,430 37,760 43,190leases

As of September 30, 2021

Accruing and Nonaccruing Loans and Leases

Nonperforming Loans and Leases

(Dollars in Thousands)

30-59 Days Past Due

60-89 Days Past Due

> 89 Days Past Due

Total Past Due

Current

Total Loans and Leases Receivable

> 89 Days Past Due and Accruing

Non- accrual balance

Total

Commercial finance

$

18,269

$

7,388

$

15,439

$

41,096

$

2,684,399

$

2,725,495

$

12,489

$

19,330

$

31,819

Consumer finance

1,676

812

1,236

3,724

249,133

252,857

1,236

-

1,236

Tax services

-

-

7,962

7,962

2,443

10,405

7,962

-

7,962

Warehouse finance

-

-

-

-

419,926

419,926

-

-

-

Community banking

-

-

-

-

199,132

199,132

-

14,915

14,915

Total loans and leases held for investment

19,945

8,200

24,637

52,782

3,555,033

3,607,815

21,687

34,245

55,932

The Company's nonperforming assets at December 31, 2021 were $44.3 million, representing 0.58% of total assets, compared to $61.8 million, or 0.92% of total assets at September 30, 2021 and $53.2 million, or 0.73% of total assets at December 31, 2020. The changes in the nonperforming assets as a percentage of total assets at December 31, 2021 were driven in large part by a decrease in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio, when compared to the linked-quarter. When comparing the current period to the same period of the prior year, the decrease in nonperforming assets was due to a decrease in nonperforming assets in the community bank portfolio, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company's nonperforming loans and leases at December 31, 2021, were $43.2 million, representing 1.16% of total gross loans and leases, compared to $55.9 million, or 1.52% of total gross loans and leases at September 30, 2021 and $43.5 million, or 1.17% of total gross loans and leases at December 31, 2020. The decreases are related to the aforementioned decreases in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company has various portfolios of consumer lending and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.

As ofSeptember Accruing and Nonaccruing Loans and Leases Nonperforming Loans and Leases30, 2021

30-59 60-89 > 89(Dollars Days Days > 89 Total Total Loans Days Non-in Past Past Days Past Current and Leases Past Due accrual TotalThousands) Due Due Past Due Due Receivable and balance Accruing



Commercial $ 18,269 $ 7,388 $ 15,439 $ 41,096 $ 2,684,399 $ 2,725,495 $ 12,489 $ 19,330 $ 31,819finance

Consumer 1,676 812 1,236 3,724 249,133 252,857 1,236 - 1,236finance

Tax - - 7,962 7,962 2,443 10,405 7,962 - 7,962services

Warehouse - - - - 419,926 419,926 - - -finance

Community - - - - 199,132 199,132 - 14,915 14,915banking

Totalloans andleases 19,945 8,200 24,637 52,782 3,555,033 3,607,815 21,687 34,245 55,932held forinvestment

The Company's nonperforming assets at December 31, 2021 were $44.3 million, representing 0.58% of total assets, compared to $61.8 million, or 0.92% of total assets at September 30, 2021 and $53.2 million, or 0.73% of total assets at December 31, 2020. The changes in the nonperforming assets as a percentage of total assets at December 31, 2021 were driven in large part by a decrease in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio, when compared to the linked-quarter. When comparing the current period to the same period of the prior year, the decrease in nonperforming assets was due to a decrease in nonperforming assets in the community bank portfolio, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company's nonperforming loans and leases at December 31, 2021, were $43.2 million, representing 1.16% of total gross loans and leases, compared to $55.9 million, or 1.52% of total gross loans and leases at September 30, 2021 and $43.5 million, or 1.17% of total gross loans and leases at December 31, 2020. The decreases are related to the aforementioned decreases in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company has various portfolios of consumer lending and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.

Asset Pass Watch Special Substandard Doubtful TotalClassification Mention

As of December (Dollars in Thousands)31, 2021

Commercial $ 2,084,835 $ 355,431 $ 161,301 $ 176,258 $ 19,923 $ 2,797,748finance

Warehouse 466,831 - - - - 466,831finance

Total Loans $ 2,551,666 $ 355,431 $ 161,301 $ 176,258 $ 19,923 $ 3,264,579and Leases

Asset Classification

Pass

Watch

Special Mention

Substandard

Doubtful

Total

As of September 30, 2021

(Dollars in Thousands)

Commercial finance

$

2,039,324

$

364,713

$

170,527

$

144,414

$

6,517

$

2,725,495

Warehouse finance

419,926

-

-

-

-

419,926

Community banking

10,314

27,121

35,916

120,238

5,543

199,132

Total Loans and Leases

$

2,469,564

$

391,834

$

206,443

$

264,652

$

12,060

$

3,344,553

Deposits, Borrowings and Other Liabilities

Total average deposits for the fiscal 2022 first quarter increased by $494.9 million to $5.92 billion compared to the same period in fiscal 2021, primarily due to an increase in noninterest-bearing deposits of $808.2 million. Average wholesale deposits decreased $193.8 million for the fiscal 2022 first quarter when compared to the same period in fiscal 2021.

The average balance of total deposits and interest-bearing liabilities was $6.01 billion for the three-month period ended December 31, 2021, compared to $5.52 billion for the same period in the prior fiscal year, representing an increase of 9%.

Total end-of-period deposits increased 5% to $6.53 billion at December 31, 2021, compared to $6.21 billion at December 31, 2020. The increase in end-of-period deposits was primarily driven by an increase in noninterest-bearing deposits of $688.0 million, partially offset by a decrease in wholesale deposits of $161.2 million. The increase in noninterest-bearing deposits was driven by government stimulus-related dollars loaded on various partner cards.

Of the 16.5 million prepaid cards issued in conjunction with the three EIP stimulus programs, totaling approximately $24.15 billion, $1.38 billion were outstanding as of December 31, 2021, of which only $28.1 million was on Meta's balance sheet with the remainder being held by other banks.

Regulatory Capital

The Company and MetaBank remained above the federal regulatory minimum capital requirements at December 31, 2021, continued to be classified as well-capitalized, and in good standing with the regulatory agencies. 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.

Asset Pass Watch Special Substandard Doubtful TotalClassification Mention

As ofSeptember 30, (Dollars in Thousands)2021

Commercial $ 2,039,324 $ 364,713 $ 170,527 $ 144,414 $ 6,517 $ 2,725,495finance

Warehouse 419,926 - - - - 419,926finance

Community 10,314 27,121 35,916 120,238 5,543 199,132banking

Total Loans $ 2,469,564 $ 391,834 $ 206,443 $ 264,652 $ 12,060 $ 3,344,553and Leases

Deposits, Borrowings and Other Liabilities

Total average deposits for the fiscal 2022 first quarter increased by $494.9 million to $5.92 billion compared to the same period in fiscal 2021, primarily due to an increase in noninterest-bearing deposits of $808.2 million. Average wholesale deposits decreased $193.8 million for the fiscal 2022 first quarter when compared to the same period in fiscal 2021.

The average balance of total deposits and interest-bearing liabilities was $6.01 billion for the three-month period ended December 31, 2021, compared to $5.52 billion for the same period in the prior fiscal year, representing an increase of 9%.

Total end-of-period deposits increased 5% to $6.53 billion at December 31, 2021, compared to $6.21 billion at December 31, 2020. The increase in end-of-period deposits was primarily driven by an increase in noninterest-bearing deposits of $688.0 million, partially offset by a decrease in wholesale deposits of $161.2 million. The increase in noninterest-bearing deposits was driven by government stimulus-related dollars loaded on various partner cards.

Of the 16.5 million prepaid cards issued in conjunction with the three EIP stimulus programs, totaling approximately $24.15 billion, $1.38 billion were outstanding as of December 31, 2021, of which only $28.1 million was on Meta's balance sheet with the remainder being held by other banks.

Regulatory Capital

The Company and MetaBank remained above the federal regulatory minimum capital requirements at December 31, 2021, continued to be classified as well-capitalized, and in good standing with the regulatory agencies. 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.

December September June March DecemberAs of the dates indicated 31, 30, 30, 31, 31, 2021 ^(1) 2021 2021 2021 2020

Company

Tier 1 leverage capital 7.39 % 7.67 % 6.85 % 4.75 % 7.39 %ratio

Common equity Tier 1 10.88 % 12.12 % 12.76 11.29 10.72 %capital ratio % %

Tier 1 capital ratio 11.20 % 12.46 % 13.11 11.63 11.07 % % %

Total capital ratio 13.80 % 15.45 % 16.18 14.65 14.14 % % %

MetaBank

Tier 1 leverage capital 8.52 % 8.69 % 7.83 % 5.47 % 8.60 %ratio

Common equity Tier 1 12.90 % 14.11 % 14.94 13.39 12.87 %capital ratio % %

Tier 1 capital ratio 12.91 % 14.13 % 14.96 13.40 12.89 % % %

Total capital ratio 14.16 % 15.38 % 16.22 14.66 14.14 % % %

^(1) December 31, 2021 amounts are preliminary pending completion and filing ofthe Company's regulatory reports. Regulatory capital presented for periodspresented reflect the Company's election of the five-year CECL transition forregulatory capital purposes.

The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:

Standardized Approach December September June 30, March 31, December^(1) 31, 30, 2021 2021 31, 2021 2021 2020

(Dollars in Thousands)

Total stockholders' $ 826,157 $ 871,884 $ 876,633 $ 835,258 $ 813,210equity

Adjustments:

LESS: Goodwill, netof associated 300,382 300,780 301,179 301,602 301,999deferred taxliabilities

LESS: Certain other 32,294 33,572 35,100 36,779 39,403intangible assets

LESS: Net deferredtax assets fromoperating loss and 19,805 22,801 17,753 19,306 24,105tax creditcarry-forwards

LESS: Net unrealizedgains (losses) on 403 7,344 14,750 12,458 19,894available-for-salesecurities

LESS: Non-controlling 642 1,155 1,490 1,092 1,536interest

ADD: Adoption ofAccounting Standards 6,527 8,202 13,913 10,439 10,439Update 2016-13

Common Equity Tier 1^ 479,158 514,434 520,274 474,460 436,712(1)

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

Tier 1 minorityinterest not included 444 747 932 690 749in common equity tier1 capital

Total Tier 1 Capital 493,263 528,842 534,867 488,811 451,122

Allowance for credit 55,125 53,159 51,317 53,232 51,070losses

Subordinateddebentures (net of 59,220 73,980 73,936 73,892 73,850issuance costs)

Total qualifying $ 607,608 $ 655,981 $ 660,119 $ 615,935 $ 576,042capital

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

The following table provides a reconciliation of tangible common equity and tangible common equity excluding accumulated other comprehensive income ("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.

December September June 30, March 31, December 31, 30, 2021 2021 31, 2021 2021 2020

(Dollars in Thousands)

Total Stockholders' $ 826,157 $ 871,884 $ 876,633 $ 835,258 $ 813,210Equity

Less: Goodwill 309,505 309,505 309,505 309,505 309,505

Less: Intangible 31,661 33,148 34,898 36,903 39,660assets

Tangible common 484,991 529,231 532,230 488,850 464,045equity

Less: Accumulatedother comprehensive 724 7,599 15,222 12,809 20,119income (loss)("AOCI")

Tangible common $ 484,267 $ 521,632 $ 517,008 $ 476,041 $ 443,926equity excluding AOCI

Conference Call

The Company will host a conference call and earnings webcast at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, January 26, 2022. The live webcast of the call can be accessed from Meta's Investor Relations website at www.metafinancialgroup.com. Telephone participants may access the conference call by dialing (844) 200-6205 approximately 10 minutes prior to start time and reference access code 483958. A webcast replay will also be archived at www.metafinancialgroup.com for one year.

Upcoming Investor Events

* KBW Financial Services Symposium, February 17, 2022 | Boca Raton, FL

* Raymond James Institutional Investors Conference, March 8, 2022 | Orlando, FL

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 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; expectations in connection with the impact of the ongoing COVID-19 pandemic and related government actions on our business, our industry and the capital markets; customer retention; loan and other product demand; expectations concerning acquisitions and divestitures; new products and services, including those offered by Meta Payment Systems, Refund Advantage, EPS Financial and Specialty Consumer Services divisions; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; 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; expected growth opportunities may not be realized or may take longer to realize than expected; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, or other unusual and infrequently occurring events; 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 operates; changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Federal Reserve; 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 prepaid card and refund advance businesses, the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of Meta's strategic partners' refund advance products; our relationship with, and any actions which may be initiated by, our regulators; 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; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; 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; changes in consumer spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; 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, 2021, 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.

Condensed Consolidated Statements of Financial Condition (Unaudited)

(Dollars in Thousands, Except Share Data)

ASSETS December 31, September 30, June 30, March 31, December 30, 2021 2021 2021 2021 2020

Cash and cash $ 1,230,100 $ 314,019 $ 720,243 $ 3,724,242 $ 1,586,451 equivalents

Securitiesavailable for 1,782,739 1,864,899 1,917,605 1,480,780 1,228,124 sale, at fairvalue

Securitiesheld to 50,994 56,669 64,247 72,112 81,328 maturity, atamortized cost

FederalReserve Bankand Federal 28,400 28,400 28,433 28,433 27,138 Home Loan Bankstocks, atcost

Loans held for 36,182 56,194 87,905 67,635 133,659 sale

Loans and 3,684,261 3,609,563 3,496,670 3,657,531 3,448,675 leases

Allowance for (67,623 ) (68,281 ) (91,208 ) (98,892 ) (72,389 )credit losses

Accruedinterest 17,240 16,254 16,230 17,429 17,133 receivable

Premises,furniture, and 44,130 44,888 44,107 41,510 39,932 equipment, net

Rental 234,693 213,116 211,368 211,397 206,732 equipment, net

Foreclosedreal estateand 298 2,077 1,204 1,483 7,186 repossessedassets, net

Goodwill andintangible 341,166 342,653 344,403 346,408 349,165 assets, net

Prepaid assets 17,007 10,513 7,482 10,201 11,270

Other assets 210,071 199,686 203,123 229,854 200,111



Total assets $ 7,609,658 $ 6,690,650 $ 7,051,812 $ 9,790,123 $ 7,264,515



LIABILITIESAND STOCKHOLDERS'EQUITY



LIABILITIES

Deposits 6,525,569 5,514,971 5,888,871 8,642,413 6,207,791

Long-term 92,274 92,834 93,634 95,336 96,760 borrowings

Accruedexpenses and 165,658 210,961 192,674 217,116 146,754 otherliabilities

Total 6,783,501 5,818,766 6,175,179 8,954,865 6,451,305 liabilities



STOCKHOLDERS' EQUITY

Preferred - - - - - stock

Common stock, 301 317 319 319 326 $.01 par value

Common stock,Nonvoting, - - - - - $.01 par value

Additionalpaid-in 610,816 604,484 602,720 601,222 598,669 capital

Retained 217,992 259,189 262,578 225,471 198,000 earnings

Accumulatedother 724 7,599 15,222 12,809 20,119 comprehensiveincome

Treasury (4,318 ) (860 ) (5,696 ) (5,655 ) (5,440 )stock, at cost

Total equityattributable 825,515 870,729 875,143 834,166 811,674 to parent

Noncontrolling 642 1,155 1,490 1,092 1,536 interest

Totalstockholders' 826,157 871,884 876,633 835,258 813,210 equity



Totalliabilitiesand $ 7,609,658 $ 6,690,650 $ 7,051,812 $ 9,790,123 $ 7,264,515 stockholders'equity

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

Interest and dividend income:

Loans and leases, including fees

$

65,035

$

63,665

$

61,655

Mortgage-backed securities

3,864

3,979

2,123

Other investments

3,992

4,412

4,368

72,891

72,056

68,146

Interest expense:

Deposits

141

164

797

FHLB advances and other borrowings

1,137

1,225

1,350

1,278

1,389

2,147

Net interest income

71,613

70,667

65,999

Provision for credit losses

186

8,775

6,089

Net interest income after provision for credit losses

71,427

61,892

59,910

Noninterest income:

Refund transfer product fees

579

2,567

647

Tax advance product fees

1,233

226

1,960

Payments card and deposit fees

25,132

25,541

22,564

Other bank and deposit fees

237

230

237

Rental income

11,077

9,709

9,885

Gain on sale of securities

137

-

-

Gain on sale of trademarks

50,000

-

-

Gain (loss) on sale of other

(3,465

)

580

2,847

Other income

1,661

10,689

7,315

Total noninterest income

86,591

49,542

45,455

Noninterest expense:

Compensation and benefits

38,225

36,222

32,331

Refund transfer product expense

138

3,219

61

Tax advance product expense

183

30

370

Card processing

7,172

7,063

6,117

Occupancy and equipment expense

8,349

8,252

6,888

Operating lease equipment depreciation

8,449

7,865

7,581

Legal and consulting

6,208

14,369

5,247

Intangible amortization

1,488

1,761

2,013

Impairment expense

-

601

1,159

Other expense

12,224

14,232

10,808

Total noninterest expense

82,436

93,614

72,575

Income before income tax expense

75,582

17,820

32,790

Income tax expense

14,276

1,101

3,533

Net income before noncontrolling interest

61,306

16,719

29,257

Net income (loss) attributable to noncontrolling interest

(18

)

816

1,220

Net income attributable to parent

$

61,324

$

15,903

$

28,037

Less: Allocation of Earnings to participating securities(1)

953

297

554

Net income attributable to common shareholders(1)

60,371

15,606

27,483

Earnings per common share

Basic

$

2.00

$

0.50

$

0.84

Diluted

$

2.00

$

0.50

$

0.84

Shares used in computing earnings per common share

Basic

30,238,621

31,280,162

32,782,285

Diluted

30,260,655

31,299,555

32,790,895

(1) Amounts presented are used in the two-class earnings per common share calculation.

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 in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

Three Months Ended

December 31, September December 31, 2021 30, 2021 2020

Interest and dividend income:

Loans and leases, including fees $ 65,035 $ 63,665 $ 61,655

Mortgage-backed securities 3,864 3,979 2,123

Other investments 3,992 4,412 4,368

72,891 72,056 68,146

Interest expense:

Deposits 141 164 797

FHLB advances and other borrowings 1,137 1,225 1,350

1,278 1,389 2,147

Net interest income 71,613 70,667 65,999

Provision for credit losses 186 8,775 6,089

Net interest income after 71,427 61,892 59,910provision for credit losses

Noninterest income:

Refund transfer product fees 579 2,567 647

Tax advance product fees 1,233 226 1,960

Payments card and deposit fees 25,132 25,541 22,564

Other bank and deposit fees 237 230 237

Rental income 11,077 9,709 9,885

Gain on sale of securities 137 - -

Gain on sale of trademarks 50,000 - -

Gain (loss) on sale of other (3,465 ) 580 2,847

Other income 1,661 10,689 7,315

Total noninterest income 86,591 49,542 45,455

Noninterest expense:

Compensation and benefits 38,225 36,222 32,331

Refund transfer product expense 138 3,219 61

Tax advance product expense 183 30 370

Card processing 7,172 7,063 6,117

Occupancy and equipment expense 8,349 8,252 6,888

Operating lease equipment 8,449 7,865 7,581depreciation

Legal and consulting 6,208 14,369 5,247

Intangible amortization 1,488 1,761 2,013

Impairment expense - 601 1,159

Other expense 12,224 14,232 10,808

Total noninterest expense 82,436 93,614 72,575



Income before income tax expense 75,582 17,820 32,790

Income tax expense 14,276 1,101 3,533

Net income before noncontrolling 61,306 16,719 29,257interest

Net income (loss) attributable to (18 ) 816 1,220noncontrolling interest

Net income attributable to parent $ 61,324 $ 15,903 $ 28,037



Less: Allocation of Earnings to 953 297 554participating securities^(1)

Net income attributable to common 60,371 15,606 27,483shareholders^(1)

Earnings per common share

Basic $ 2.00 $ 0.50 $ 0.84

Diluted $ 2.00 $ 0.50 $ 0.84

Shares used in computing earnings per common share

Basic 30,238,621 31,280,162 32,782,285

Diluted 30,260,655 31,299,555 32,790,895

^(1) Amounts presented are used in the two-class earnings per common sharecalculation.

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 in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.

Three Months Ended 2021 2020December 31,

Average Interest Yield / Average Interest Yield(Dollars in Outstanding Earned / Rate^ Outstanding Earned / /Thousands) Balance Paid (1) Balance Paid Rate^ (1)

Interest-earning assets:

Cash and fed funds $ 594,614 $ 560 0.37 % $ 820,108 $ 842 0.41 %sold

Mortgage-backed 1,007,030 3,864 1.52 % 438,610 2,123 1.92 %securities

Tax exemptinvestment 207,621 820 1.98 % 333,729 1,215 1.83 %securities

Asset-backed 387,567 1,152 1.18 % 326,315 1,200 1.46 %securities

Other investment 279,839 1,460 2.07 % 221,986 1,111 1.98 %securities

Total investments 1,882,057 7,296 1.58 % 1,320,640 5,649 1.79 %

Commercial finance 2,775,394 49,021 7.01 % 2,417,691 45,630 7.49 %

Consumer finance 316,573 6,114 7.66 % 239,618 4,748 7.86 %

Tax services 33,604 1,474 17.40 % 25,104 8 0.13 %

Warehouse finance 443,506 6,901 6.17 % 284,199 4,933 6.89 %

Community banking 137,898 1,525 4.39 % 529,085 6,336 4.75 %

Total loans and 3,706,975 65,035 6.96 % 3,495,697 61,655 7.00 %leases

Totalinterest-earning $ 6,183,646 $ 72,891 4.69 % $ 5,636,445 $ 68,146 4.82 %assets

Noninterest-earning 839,854 845,378 assets

Total assets $ 7,023,500 $ 6,481,823



Interest-bearing liabilities:

Interest-bearing $ 389 $ - 0.32 % $ 162,748 $ - - %checking^(2)

Savings 80,765 5 0.03 % 52,198 2 0.01 %

Money markets 75,664 52 0.27 % 52,620 39 0.30 %

Time deposits 8,619 15 0.67 % 17,390 57 1.30 %

Wholesale deposits 67,384 69 0.41 % 261,136 699 1.06 %

Totalinterest-bearing 232,821 141 0.24 % 546,092 797 0.58 %deposits

Overnight fed funds 327 - 0.31 % 11 - 0.25 %purchased

Subordinated 73,995 986 5.28 % 73,822 1,147 6.16 %debentures

Other borrowings 18,636 151 3.22 % 23,870 203 3.37 %

Total borrowings 92,958 1,137 4.85 % 97,703 1,350 5.48 %

Totalinterest-bearing 325,779 1,278 1.56 % 643,795 2,147 1.32 %liabilities

Noninterest-bearing 5,688,563 - - % 4,880,352 - - %deposits

Total deposits andinterest-bearing $ 6,014,342 $ 1,278 0.08 % $ 5,524,147 $ 2,147 0.15 %liabilities

Othernoninterest-bearing 182,916 151,528 liabilities

Total liabilities 6,197,258 5,675,675

Shareholders' 826,242 806,148 equity

Total liabilitiesand shareholders' $ 7,023,500 $ 6,481,823 equity

Net interest incomeand net interestrate spread $ 71,613 4.61 % $ 65,999 4.67 %includingnoninterest-bearingdeposits



Net interest margin 4.59 % 4.65 %

Tax-equivalent 0.02 % 0.02 %effect

Net interestmargin, 4.61 % 4.67 %tax-equivalent^(3)

^(1) Tax rate used to arrive at the TEY for the three months ended December 31,2021 and 2020 was 21%.

^(2) At December 31, 2020, $162.5 million of the total balance wereinterest-bearing deposits where interest expense was paid by a third party andnot by the Company. On October 1, 2021, the Company reclassified the balancesrelated to that program to noninterest bearing checking due to the productmoving to noninterest bearing.

^(3) Net interest margin expressed on a fully-taxable-equivalent basis ("netinterest margin, tax-equivalent") is a non-GAAP financial measure. Thetax-equivalent adjustment to net interest income recognizes the estimatedincome tax savings when comparing taxable and tax-exempt assets and adjustingfor federal and state exemption of interest income. The Company believes thatit is a standard practice in the banking industry to present net interestmargin expressed on a fully taxable equivalent basis and, accordingly, believesthe presentation of this non-GAAP financial measure may be useful for peercomparison purposes.

Selected Financial Information

As of and For the Three Months Ended

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

Equity to total assets

10.86

%

13.03

%

12.43

%

8.53

%

11.19

%

Book value per common share outstanding

$

27.46

$

27.53

$

27.46

$

26.16

$

24.93

Tangible book value per common share outstanding

$

16.12

$

16.71

$

16.67

$

15.31

$

14.23

Tangible book value per common share outstanding excluding AOCI

$

16.10

$

16.47

$

16.20

$

14.91

$

13.61

Common shares outstanding

30,080,717

31,669,952

31,919,780

31,926,008

32,620,251

Nonperforming assets to total assets

0.58

%

0.92

%

0.64

%

0.48

%

0.73

%

Nonperforming loans and leases to total loans and leases

1.16

%

1.52

%

1.17

%

1.17

%

1.18

%

Net interest margin

4.59

%

4.35

%

3.75

%

3.07

%

4.65

%

Net interest margin, tax-equivalent

4.61

%

4.37

%

3.77

%

3.08

%

4.67

%

Return on average assets

3.49

%

0.88

%

1.90

%

2.22

%

1.73

%

Return on average equity

29.69

%

7.18

%

18.07

%

28.93

%

13.91

%

Full-time equivalent employees

1,140

1,124

1,109

1,075

1,038

Selected Financial Information

As of and For December 31, September 30, June 30, March 31, December 31,the Three 2021 2021 2021 2021 2020Months Ended

Equity to 10.86 % 13.03 % 12.43 % 8.53 % 11.19 %total assets

Book value percommon share $ 27.46 $ 27.53 $ 27.46 $ 26.16 $ 24.93 outstanding

Tangible bookvalue per $ 16.12 $ 16.71 $ 16.67 $ 15.31 $ 14.23 common shareoutstanding

Tangible bookvalue percommon share $ 16.10 $ 16.47 $ 16.20 $ 14.91 $ 13.61 outstandingexcluding AOCI

Common shares 30,080,717 31,669,952 31,919,780 31,926,008 32,620,251 outstanding

Nonperformingassets to 0.58 % 0.92 % 0.64 % 0.48 % 0.73 %total assets

Nonperformingloans andleases to 1.16 % 1.52 % 1.17 % 1.17 % 1.18 %total loansand leases

Net interest 4.59 % 4.35 % 3.75 % 3.07 % 4.65 %margin

Net interestmargin, 4.61 % 4.37 % 3.77 % 3.08 % 4.67 %tax-equivalent

Return on 3.49 % 0.88 % 1.90 % 2.22 % 1.73 %average assets

Return on 29.69 % 7.18 % 18.07 % 28.93 % 13.91 %average equity

Full-timeequivalent 1,140 1,124 1,109 1,075 1,038 employees

Non-GAAP Reconciliation

Adjusted Net Income and Adjusted Earnings Per Share

At and for the three months ended

(Dollars in Thousands)

December 31, 2021

September 30, 2020

December 31, 2020

Net Income - GAAP

$

61,324

$

15,903

$

28,037

Less: Gain on sale of trademarks

50,000

-

-

Add: Income tax effect resulting from gain on sale of trademarks

12,593

-

-

Adjusted net income

$

23,917

$

15,903

$

28,037

Less: Adjusted allocation of earnings to participating securities

372

297

554

Adjusted Net income attributable to common shareholders

23,545

15,606

27,483

Weighted average diluted common shares outstanding

30,260,655

31,299,555

32,790,895

Adjusted earnings per common share - diluted

$

0.78

$

0.50

$

0.84

Non-GAAP Reconciliation

Adjusted Net Income and Adjusted At and for the three months endedEarnings Per Share

December 31, September December 31,(Dollars in Thousands) 2021 30, 2020 2020

Net Income - GAAP $ 61,324 $ 15,903 $ 28,037

Less: Gain on sale of trademarks 50,000 - -

Add: Income tax effect resulting 12,593 - -from gain on sale of trademarks

Adjusted net income $ 23,917 $ 15,903 $ 28,037

Less: Adjusted allocation of 372 297 554earnings to participating securities

Adjusted Net income attributable to 23,545 15,606 27,483common shareholders

Weighted average diluted common 30,260,655 31,299,555 32,790,895shares outstanding

Adjusted earnings per common share - $ 0.78 $ 0.50 $ 0.84diluted

Efficiency Ratio

For the last twelve months ended

(Dollars in Thousands)

December 31, 2021

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

Noninterest Expense - GAAP

$

353,544

$

343,683

$

330,352

$

320,070

$

315,828

Net Interest Income

284,605

278,991

272,837

266,499

260,386

Noninterest Income

312,039

270,903

262,111

240,706

247,766

Total Revenue: GAAP

$

596,644

$

549,894

$

534,948

$

507,205

$

508,152

Efficiency Ratio, last twelve months

59.26

%

62.50

%

61.75

%

63.10

%

62.15

%

Adjusted Efficiency Ratio

Noninterest Expense - GAAP

$

353,544

$

343,683

$

330,352

$

320,070

$

315,828

Net Interest Income

284,605

278,991

272,837

266,499

260,386

Noninterest Income

312,039

270,903

262,111

240,706

247,766

Less: Gain on sale of trademarks

50,000

-

-

-

-

Total Adjusted Revenue:

$

546,644

$

549,894

$

534,948

$

507,205

$

508,152

Adjusted Efficiency Ratio, last twelve months

64.68

%

62.50

%

61.75

%

63.10

%

62.15

%

About Meta Financial Group, Inc.(r)

Meta Financial Group, Inc.(r) ("Meta") (Nasdaq: CASH) is a South Dakota-based financial holding company. At Meta, our mission is financial inclusion for all(r). Through our subsidiary, MetaBank(r), N.A., we strive to remove barriers to financial access and promote economic mobility by working with third parties to provide responsible, secure, high quality financial products that contribute to the social and economic benefit of communities at the core of the real economy. Meta works to increase financial availability, choice, and opportunity for all. Additional information can be found by visiting www.metafinancialgroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005797/en/

CONTACT: Investor Relations Contact Justin Schempp 877-497-7497 jschempp@metabank.com Media Relations Contact mediarelations@metabank.com