cash-20200422

Exhibit 99.1

META FINANCIAL GROUP, INC.® ANNOUNCES RESULTS FOR 2020 FISCAL SECOND QUARTER

- 2020 Fiscal Second Quarter Net Income of $52.3 Million, or $1.45 Per Diluted Share -

- Committed to Further Enhancing Financial Capacity and Flexibility -

- Suspends 2020 Outlook and Share Repurchase Program -

Sioux Falls, S.D., April 22, 2020 (GLOBE NEWSWIRE) -- Meta Financial Group, Inc.^® (Nasdaq: CASH) (“Meta” or the “Company”) reported net income of $52.3 million, or $1.45 per diluted share, for the three months ended March 31, 2020, compared to net income of $32.1 million, or $0.81 per diluted share, for the three months ended March 31, 2019.

“Our fiscal second quarter, which has in the past been driven by our high volume tax businesses, was met with unprecedented uncertainty and market volatility associated with the spread of COVID-19. Our priorities are the health and safety of our employees and preserving access to the financial products our customers need to make it through these difficult times”, said President and CEO Brad Hanson. “Meta proactively implemented its Pandemic Plan under its Business Continuity Program with minimal business disruption and a near seamless transition to a work from home environment. Our COVID-19 Crisis Command Center consisting of leadership and business continuity planning resources throughout the organization is coordinating extensive scenario planning focused on credit quality, regulatory capital, expense management, and viability of our partners and customers to ensure continuity of our business and financial stability under extreme circumstances related to COVID-19. Finally, I am thrilled with the engagement and productivity exhibited by our staff resulting in strong performance for the quarter and the ability to manage our businesses through and beyond this crisis.”

Business Developments

•Through April 20, 2020, the Company authorized 502 applications, totaling $189.5 million in loan requests for the Paycheck Protection Program.

•Effective April 1, 2020, MetaBank, N.A. ("MetaBank" or the "Bank") converted from a federal thrift charter to a national bank charter, and the Company converted from a savings and loan holding company to a bank holding company that has elected treatment as a financial holding company. The Bank now operates under the name "MetaBank, National Association." The Company and the Bank effected these conversions in order to more closely align the Bank's regulatory charter to its current and future strategy with respect to becoming a national business that provides innovative financial solutions to consumers and businesses in niche markets often overlooked by traditional banks. As a result of the bank conversion, the Bank is no longer subject to qualified thrift lending requirements.

•The sale of MetaBank's Community Bank division to Central Bank closed on February 29, 2020 and included all of the Community Bank's deposits, branch locations, fixed assets, employees, and a portion of the Community Bank’s loan portfolio. The final deposit and loan balances included in the transaction totaled $290.5 million and $268.8 million, respectively. The remaining Community Bank loans not sold to Central Bank, which totaled $896.2 million at March 31, 2020, have been retained by the Company under a servicing agreement with Central Bank.

•MetaBank expanded its faster payments platform to include Visa Direct, Visa’s real-time push payments solution. Visa clients can use Visa Direct to enable businesses and payment service providers to make payments, disbursements and remittances rapidly, conveniently and cost-effectively, to more than a billion eligible debit and prepaid cards worldwide. As a leading issuer of payments services, the addition of Visa Direct builds on MetaBank’s faster payments platform that also includes MasterCard Send, ACH origination, wire transfers and more.

Financial Highlights for the 2020 Fiscal Second Quarter Ended March 31, 2020

•During the fiscal 2020 second quarter, the Company recognized a $19.3 million gain on divestiture of the Community Bank division, partially offset by one-time expenses related to the transaction of $1.0 million resulting in a pre-tax net gain from the transaction of $18.3 million, or $0.51 per share.

•Total gross loans and leases at March 31, 2020 increased $175.8 million, or 5%, to $3.61 billion, compared to March 31, 2019 and increased $27.5 million, or 1% when compared to December 31, 2019.

•Average deposits from the payments divisions for the fiscal 2020 second quarter increased nearly 11% to $3.31 billion when compared to the same quarter in fiscal 2019.

•Total revenue for the fiscal 2020 second quarter was $188.3 million, compared to $176.4 million for the same quarter in fiscal 2019, representing a 7% increase.

•Net interest income for the fiscal 2020 second quarter was $67.7 million, compared to $71.4 million in the comparable quarter in fiscal 2019.

•Net interest margin ("NIM") decreased to 4.78% for the fiscal 2020 second quarter from 5.06% over the same period of the prior fiscal year, while the tax-equivalent net interest margin ("NIM, TE") decreased to 4.82% from 5.18% for that same period in fiscal 2019.

•During the quarter ended March 31, 2020, the Company repurchased 2,592,381 of its shares, at a weighted average price of $31.78, under its share repurchase program, which is authorized through December 31, 2022. The Company suspended repurchase activity under its share repurchase program in March. The Company had 34,607,962 shares outstanding at March 31, 2020.

COVID-19 Business Update

First and foremost, the Company is focused on the well-being of its employees, partners and customers. Preventative health measures were recently put in place to protect employees and customers including mandating remote work options and social distancing measures where possible, restricting non-essential business travel and enhancing preventative cleaning services at all office locations. The Company also enacted a COVID-19 Crisis Command Center consisting of leadership and business continuity planning resources throughout the organization to effectively monitor possible interruptions related to the pandemic and to ensure business continuity.

The Company's loan and lease portfolio is diversified by geography and industry. While asset quality remains strong at this time, the Company's focus is on actively monitoring and assisting customers. The following actions have been implemented:

•tighter underwriting standards;

•monitoring and placing limits on originations to industries and customers most adversely impacted by the COVID-19 pandemic, including, but not limited to transportation, travel, entertainment, and retail;

•contacting customers in order to assess their credit situations and needs;

•offering flexible repayment options to current customers, when appropriate; and

•utilizing CARES Act, SBA and USDA programs and loan products to help our small business clients.

The Company increased its allowance for loan and lease losses during the fiscal second quarter as a result of the emerging COVID-19 pandemic. The Company will continue to diligently monitor the allowance for loan and lease losses and adjust as necessary in future periods to maintain an appropriate and supportable level.

The Company's capital position remained strong as of March 31, 2020. As of March 31, 2020, the Bank's capital leverage ratio based on average assets was 8.52%, which is seasonally low due to higher asset levels driven by the tax services business. In addition, the Company has options available that can be used to effectively manage capital levels through these turbulent times, including a very strong and flexible balance sheet.

2020 Tax Season Update

For the 2020 tax season, MetaBank originated $1.33 billion in refund advance loans compared to $1.49 billion during the 2019 tax season. Additionally, the Company expects to process approximately 2.1 million in refund transfers through its tax services division for the 2020 tax season, compared to the over 2.4 million in refund transfers processed during the prior year’s tax season. These decreases can primarily be attributed to the exit of non-strategic partners for the 2020 tax season.

During the second quarter of fiscal 2020, total tax services product revenue was $57.1 million, a decrease of 11% compared to the second quarter of fiscal 2019. The Company recorded $19.6 million in loan loss provision expense related to $1.26 billion in tax services loans originated during the fiscal second quarter of 2020. The Company recorded $22.5 million in loan loss provision expense related to $1.43 billion in tax services loans originated during the fiscal second quarter of 2019.

Tax services product income, net of losses and direct product expenses, increased 1% when comparing the first six months of fiscal 2020 to the same period of the prior fiscal year.

Net Interest Income

Net interest income for the fiscal 2020 second quarter was $67.7 million, a decrease of 5%, from the same quarter in fiscal 2019. The decrease was driven primarily by a decrease in investment securities balances along with lower yields realized on the loan and lease portfolios, partially offset by a reduction in total interest expense.

During the second quarter of fiscal year 2020, investment securities interest income decreased $5.7 million and loan and lease interest income decreased $3.2 million, when compared to the same quarter in fiscal 2019, while interest expense decreased $5.3 million over that same period. The quarterly average outstanding balance of loans and leases as a percentage of interest-earning assets for the quarter ended March 31, 2020 increased to 74%, from 65% for the quarter ended March 31, 2019, while the quarterly average balance of total investments as a percentage of interest-earning assets decreased to 23% from 30% over that same period. The Company’s average interest-earning assets for the fiscal 2020 second quarter decreased by $17.5 million, to $5.70 billion from the comparable quarter in fiscal 2019.

NIM decreased to 4.78% for the fiscal 2020 second quarter from 5.06% for the comparable quarter in fiscal 2019. The net effect of purchase accounting accretion contributed three basis points to NIM for the fiscal 2020 second quarter as compared to six basis points and 18 basis points for the quarters ended December 31, 2019 and March 31, 2019, respectively.

The overall reported tax-equivalent yield (“TEY”) on average earning asset yields decreased by 74 basis points to 5.64% for the fiscal 2020 second quarter compared to the fiscal 2019 second quarter, driven primarily by a lower interest rate environment. The fiscal 2020 second quarter TEY on the securities portfolio was 2.68% compared to 3.36% for the same period of the prior fiscal year.

The Company's cost of funds for all deposits and borrowings averaged 0.83% during the fiscal 2020 second quarter, compared to 1.17% for the fiscal 2019 second quarter. This decrease was primarily due to a decrease in overnight borrowings rates as well as an increase in the average balance of the Company's noninterest-bearing deposits. The Company's overall cost of deposits was 0.66% in the fiscal second quarter of 2020, compared to 1.06% in the same quarter of fiscal 2019.

Noninterest Income

Fiscal 2020 second quarter noninterest income was $120.5 million, compared to $105.0 million for the same period of the prior year. This increase was primarily due to a $19.3 million gain on divestiture of the Community Bank division during the fiscal 2020 second quarter. Increases in other income and rental income, partially offset by decreases in total tax product fee income and payments card and deposit fees, also contributed to the increase when comparing the fiscal 2020 second quarter to the same period of the prior year.

Noninterest Expense

Noninterest expense decreased 17% to $91.7 million for the fiscal 2020 second quarter, from $110.3 million for the same quarter of fiscal 2019. The decrease in noninterest expense when comparing the fiscal 2020 second quarter to the same period of the prior fiscal year was primarily driven by decreases in compensation and benefits expense, impairment expense, and intangible amortization expense, partially offset by increases in operating lease equipment depreciation, legal and consulting expense, and other expense. The Company recognized $1.0 million of one-time noninterest expenses related to the Community Bank division divestiture during the fiscal second quarter of 2020. These expenses were primarily within legal and consulting expense and other expense.

Income Tax Expense

The Company recorded income tax expense of $5.6 million, representing an effective tax rate of 9.48%, for the fiscal 2020 second quarter, compared to an income tax benefit of $0.4 million, representing an effective tax rate of (1.20)%, for the fiscal 2019 second quarter. The recorded income tax expense during the current quarter was due to an increase in net income before tax, as well as less investment tax credits recognized ratably when compared to the prior year quarter.

The Company originated $17.6 million in solar leases during the fiscal 2020 second quarter and did not originate any solar leases during the fiscal 2019 second 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


	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Total investments	$	1,310,476	$	1,337,840	$	1,407,257	$	1,502,640	$	1,649,754

Loans held for sale
Consumer credit products	—		—		122,299		45,582		42,342
SBA/USDA	13,610		13,883		26,478		17,257		17,403
Community Bank⁽¹⁾	—		250,383		—		—		—
Total loans held for sale	13,610		264,266		148,777		62,839		59,745

National Lending
Term lending⁽²⁾	725,581		695,347		641,742		562,557		507,886
Asset based lending⁽²⁾	250,211		250,633		250,465		229,573		230,557
Factoring	285,495		285,776		296,507		320,344		287,955
Lease financing⁽²⁾	238,788		223,715		177,915		165,136		155,181
Insurance premium finance	332,800		349,299		361,105		358,772		307,875
SBA/USDA	92,000		90,269		88,831		99,791		77,481
Other commercial finance	101,472		99,617		99,665		99,677		98,956
Commercial Finance	2,026,347		1,994,656		1,916,230		1,835,850		1,665,891
Consumer credit products	113,544		115,843		106,794		155,539		139,617
Other consumer finance	144,895		154,772		161,404		164,727		170,824
Consumer Finance	258,439		270,615		268,198		320,266		310,441


Tax Services	95,936		101,739		2,240		24,410		84,824
Warehouse Finance	333,829		272,522		262,924		250,003		186,697
Total National Lending loans and leases	2,714,551		2,639,532		2,449,592		2,430,529		2,247,853
Community Banking
Commercial real estate and operating	654,429		682,399		883,932		877,412		869,917
Consumer one-to-four family real estate and other	205,046		220,588		259,425		256,853		257,079
Agricultural real estate and operating	36,759		40,778		58,464		61,169		60,167
Total Community Banking loans	896,234		943,765		1,201,821		1,195,434		1,187,163
Total gross loans and leases	3,610,785		3,583,297		3,651,413		3,625,963		3,435,016
Allowance for loan and lease losses	(65,355)		(30,176)		(29,149)		(43,505)		(48,672)
Net deferred loan and lease origination fees	8,139		7,177		7,434		5,068		2,964
Total loans and leases, net of allowance⁽³⁾	$	3,553,569	$	3,560,298	$	3,629,698	$	3,587,526	$	3,389,308

⁽¹⁾The December 31, 2019 balance included approximately $197.5 million of commercial real estate and operating loans, $40.4 million of consumer one-to-four family real estate and other loans, and $12.7 million of agricultural real estate and operating loans.

⁽²⁾The Company updated the presentation of its loan and lease table beginning in the fiscal 2020 first quarter. The new presentation included a new category called term lending. Certain balances previously included in the asset based lending and lease financing categories were reclassified into the new term lending category during the fiscal 2020 first quarter. Prior period balances have been conformed to the new presentation.

⁽³⁾ As of March 31, 2020, the remaining balance of acquired loans and leases from the acquisition of Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank (the "Crestmark Acquisition") was $236.6 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $4.3 million and $2.7 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.4 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark Acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

The Company continued to utilize cash flow from its amortizing securities portfolio to fund loan and lease growth. Investment securities totaled $1.31 billion at March 31, 2020, as compared to $1.65 billion at March 31, 2019.

On February 29, 2019, the Company sold $268.8 million of community bank loan balances, as part of the Community Bank division sale to Central Bank, reducing the outstanding balance to $896.2 million as of March 31, 2020.

Total gross loans and leases increased $175.8 million, or 5%, to $3.61 billion at March 31, 2020, from $3.44 billion at March 31, 2019, which was primarily attributable to growth in the commercial finance and warehouse finance portfolios, partially offset by the aforementioned sale of community bank loan balances.

At March 31, 2020, commercial finance loans, which comprised 56% of the Company's gross loan and lease portfolio, totaled $2.03 billion, reflecting growth of $31.7 million, or 2%, from December 31, 2019. Warehouse finance loans totaled $333.8 million at March 31, 2020, a 22% increase from December 31, 2019.

Asset Quality

The Company’s allowance for loan and lease losses was $65.4 million at March 31, 2020, compared to $48.7 million at March 31, 2019, driven primarily by increases in the allowance of $16.7 million in commercial finance and $4.6 million in the community banking portfolio, partially offset by decreases in the tax services and consumer lending portfolios of $2.8 million and $1.9 million, respectively.

The following table presents the Company's allowance for loan and lease losses as a percentage of its total loans and leases.


	As of the Period Ended
(Unaudited)	March 31, 2020		December 31, 2019		March 31, 2019

Commercial finance	1.28	%	0.80	%	0.55	%
Consumer finance	1.74	%	2.22	%	2.08	%
Tax services	22.22	%	1.62	%	28.42	%
Warehouse finance	0.10	%	0.10	%	0.10	%
National Lending	1.92	%	0.90	%	1.77	%
Community Bank	1.49	%	0.68	%	0.74	%
Total loans and leases	1.81	%	0.84	%	1.42	%

The Company assessed each of its loan and lease portfolios during the fiscal second quarter and increased its allowance for loan and lease losses as a percentage of total loans and leases in the commercial finance and community bank portfolios as a result of the emerging COVID-19 pandemic. The reduction in consumer finance was largely driven by lower trending charge-off rates on student loans mainly serving students in the medical community. Tax services coverage rates were driven only by typical seasonal activity and are not expected to be materially impacted by COVID-19 as the tax lending season is substantially complete. Warehouse finance remained largely unchanged due to the structure of the credit protections in place. The Company expects to continue to diligently monitor the allowance for loan and lease losses and adjust as necessary in future periods to maintain an appropriate and supportable level. When adding the $4.3 million balance of the credit mark to the allowance for loan and lease losses, the commercial finance coverage ratio increases to 1.49% and the total loans and leases coverage ratio increases to 1.93%, as of March 31, 2020.

Activity in the allowance for loan and lease losses for the periods presented were as follows.


(Unaudited)	Three Months Ended										Six Months Ended
	March 31, 2020		December 31, 2019		March 31, 2019		March 31, 2020		March 31, 2019
(Dollars in thousands)
Beginning balance	$	30,176	$	29,149	$	21,290	$	29,149	$	13,040
Provision - tax services loans	19,596		911		22,473		20,507		23,969
Provision - all other loans and leases	17,700		2,496		10,845		20,196		18,448
Charge-offs - tax services loans	—		—		(1)		—		(43)
Charge-offs - all other loans and leases	(3,187)		(3,918)		(6,522)		(7,105)		(9,283)
Recoveries - tax services loans	74		739		84		813		176
Recoveries - all other loans and leases	996		799		503		1,795		2,365
Ending balance	$	65,355	$	30,176	$	48,672	$	65,355	$	48,672

Provision for loan and lease losses was $37.3 million for the quarter ended March 31, 2020, compared to $33.3 million for the comparable period in the prior fiscal year. The increase in provision was primarily due to $15.8 million in additional allowance for the Company's loan and lease portfolio, specifically for the commercial finance portfolio and the remaining community bank portfolio, associated with the emerging COVID-19 pandemic. Management believes that given the structure of the credit protections put in place for the consumer and warehouse finance lending lines, the coverage ratio for those loan portfolios was adequate as of March 31, 2020. Net charge-offs were $2.1 million for the quarter ended March 31, 2020 compared to $5.9 million for the quarter ended March 31, 2019. The overall decrease in total net charge-offs from the comparable quarter of the prior fiscal year was primarily within the commercial finance and consumer finance portfolios.

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


As of March 31, 2020	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	$	35,810	$	7,487	$	18,721	$	62,018	$	1,964,329	$	2,026,347	$	9,372	$	16,024	$	25,396


Consumer finance	1,781		1,078		1,345		4,204		254,235		258,439		1,345		—		1,345
Tax services	668		—		—		668		95,268		95,936		—		—		—
Warehouse finance	—		—		—		—		333,829		333,829		—		—		—
Total National Lending	38,259		8,565		20,066		66,890		2,647,661		2,714,551		10,717		16,024		26,741




Total Community Banking	1,012		2,735		4,723		8,470		887,764		896,234		2,905		1,818		4,723
Total loans and leases held for investment	$	39,271	$	11,300	$	24,789	$	75,360	$	3,535,425	$	3,610,785	$	13,622	$	17,842	$	31,464


As of December 31, 2019	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	$	24,127	$	4,642	$	17,732	$	46,501	$	1,948,155	$	1,994,656	$	5,733	$	16,593	$	22,326


Consumer finance	2,295		1,234		1,648		5,177		265,438		270,615		1,648		—		1,648
Tax services	—		—		—		—		101,739		101,739		—		—		—
Warehouse finance	—		—		—		—		272,522		272,522		—		—		—
Total National Lending	26,422		5,876		19,380		51,678		2,587,854		2,639,532		7,381		16,593		23,974




Total Community Banking	376		1,612		9		1,997		941,768		943,765		—		9		9
Total loans and leases held for investment	$	26,798	$	7,488	$	19,389	$	53,675	$	3,529,622	$	3,583,297	$	7,381	$	16,602	$	23,983

The Company had not experienced significant asset deterioration as of March 31, 2020, but has made short term deferments of payments on $9.5 million of loan balances as a result of interagency guidance issued on March 22, 2020 encouraging companies to work with customers impacted by COVID-19. Short term payment deferral modifications of $152.0 million and $62.4 million in other COVID-19 related modifications were completed by the Company as of April 19, 2020.

The Company's nonperforming assets at March 31, 2020, were $39.4 million, representing 0.67% of total assets, compared to $29.8 million, or 0.48% of total assets at December 31, 2019 and $40.9 million, or 0.68% of total assets at March 31, 2019. The increase in nonperforming assets on a linked quarter basis was primarily driven by an increase in foreclosed and repossessed assets, two nonperforming agricultural loan relationships in the community bank portfolio, and an increase in term lending nonperforming loans. The year-over-year decrease in nonperforming assets was primarily driven by a reduction in foreclosed and repossessed assets, mostly offset by an increase in commercial finance nonperforming loans and leases.

The Company's nonperforming loans and leases at March 31, 2020, were $31.5 million, representing 0.87% of total gross loans and leases, compared to $24.0 million, or 0.62% of total gross loans and leases at December 31, 2019 and $9.6 million, or 0.28% of total gross loans and leases at March 31, 2019.

Deposits, Borrowings and Other Liabilities

Total average deposits for the fiscal 2020 second quarter decreased by $590.0 million to $5.06 billion compared to the same period in fiscal 2019. Average wholesale deposits decreased $807.0 million, or 35%, while average noninterest-bearing deposits increased $245.9 million, or 8%, for the fiscal 2020 second quarter when compared to the same period in fiscal 2019. Average deposits from the payments divisions increased 11% to $3.31 billion for the fiscal 2020 second quarter when compared to the same period in fiscal 2019.

The average balance of total deposits and interest-bearing liabilities was $5.64 billion for the three-month period ended March 31, 2020, compared to $5.86 billion for the same period in the prior fiscal year, representing a decrease of 4%.

Total end-of-period deposits decreased 20% to $3.96 billion at March 31, 2020, compared to $4.97 billion at March 31, 2019. The decrease in end-of-period deposits was primarily driven by a decrease of $672.4 million in wholesale deposits, as well as the aforementioned sale of $290.5 million of community bank deposits during the second quarter of fiscal 2020.

Regulatory Capital

The Company and MetaBank, remained above the federal regulatory minimum capital requirements at March 31, 2020 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.


As of the dates indicated	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Company
Tier 1 leverage capital ratio	7.28	%	8.28	%	8.33	%	8.05	%	7.45	%
Common equity Tier 1 capital ratio	10.24	%	10.10	%	10.35	%	10.19	%	10.94	%
Tier 1 capital ratio	10.60	%	10.46	%	10.71	%	10.55	%	11.31	%
Total capital ratio	13.57	%	12.74	%	13.01	%	13.22	%	14.20	%
MetaBank
Tier 1 leverage capital ratio	8.52	%	9.70	%	9.65	%	9.37	%	8.42	%
Common equity Tier 1 capital ratio	12.36	%	12.18	%	12.31	%	12.22	%	12.72	%
Tier 1 capital ratio	12.41	%	12.24	%	12.37	%	12.27	%	12.76	%
Total capital ratio	13.66	%	12.90	%	13.02	%	13.26	%	13.92	%

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⁽¹⁾	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
(Dollars in Thousands)
Total stockholders' equity	$	805,074	$	837,068	$	843,958	$	822,901	$	823,709
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities	303,625		304,020		304,020		302,850		302,768
LESS: Certain other intangible assets	44,909		47,855		50,501		53,249		56,456
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards	11,589		16,876		15,569		13,858		7,381
LESS: Net unrealized gains (losses) on available-for-sale securities	2,337		3,897		6,458		2,329		(10,022)
LESS: Non-controlling interest	3,762		4,305		4,047		3,508		3,528
LESS: Unrealized currency gains (losses)	—		—		—		—		(242)
Common Equity Tier 1⁽¹⁾	438,852		460,115		463,363		447,107		463,840
Long-term borrowings and other instruments qualifying as Tier 1	13,661		13,661		13,661		13,661		13,661
Tier 1 minority interest not included in common equity tier 1 capital	2,036		2,372		2,350		2,119		2,064
Total Tier 1 Capital	454,549		476,148		479,374		462,887		479,565
Allowance for loan and lease losses	53,580		30,239		29,272		43,641		48,812
Subordinated debentures (net of issuance costs)	73,724		73,684		73,644		73,605		73,566
Total qualifying capital	$	581,853	$	580,071	$	582,290	$	580,133	$	601,963

⁽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.

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.


	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
(Dollars in Thousands)
Total Stockholders' Equity	$	805,074	$	837,068	$	843,958	$	822,901	$	823,709
Less: Goodwill	309,505		309,505		309,505		307,941		307,464
Less: Intangible assets	46,766		50,151		52,810		56,153		60,506
Tangible common equity	448,803		477,412		481,643		458,807		455,739
Less: Accumulated other comprehensive income (loss) ("AOCI")	1,654		3,895		6,339		2,308		(10,264)
Tangible common equity excluding AOCI	$	447,149	$	473,517	$	475,304	$	456,499	$	466,003

Outlook

Given the deteriorating economic environment and the uncertainty of the impact on the business following the emergence of the COVID-19 pandemic, the Company is suspending fiscal 2020 earnings per share guidance.

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, April 22, 2020. 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 4942497 upon request. International callers should dial (636) 812-6634. A webcast replay will also be archived at www.metafinancialgroup.com for one year.

Forward-Looking Statements

The Company and MetaBank, N.A. ("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 the Company and MetaBank; the extent in which the COVID-19 pandemic and measures taken in response thereto impact our business, our industry and the capital markets; customer retention; loan and other product demand; important components of the Company's statements of financial condition and operations; growth and expansion; expectations concerning the Company's acquisitions and divestitures, including potential benefits of, and other expectations for the Company in connection with, such transactions; 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; 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; 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; 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 and recent and potential changes in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and the rules and regulations that may be promulgated thereunder; 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 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, particularly in light of our 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, 2019, 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	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Cash and cash equivalents	$	108,733	$	152,189	$	126,545	$	100,732	$	156,461
Investment securities available for sale, at fair value	840,525		852,603		889,947		961,897		1,081,663
Mortgage-backed securities available for sale, at fair value	355,094		362,120		382,546		395,201		413,493
Investment securities held to maturity, at cost	108,105		116,313		127,582		138,128		146,992
Mortgage-backed securities held to maturity, at cost	6,752		6,804		7,182		7,414		7,606
Loans held for sale	13,610		264,266		148,777		62,839		59,745
Loans and leases	3,618,924		3,590,474		3,658,847		3,631,031		3,437,980
Allowance for loan and lease losses	(65,355)		(30,176)		(29,149)		(43,505)		(48,672)
Federal Home Loan Bank Stock, at cost	29,944		13,796		30,916		17,236		7,436
Accrued interest receivable	16,958		18,687		20,400		19,722		20,281
Premises, furniture, and equipment, net	38,871		38,671		45,932		46,360		45,457
Rental equipment, net	200,837		211,673		208,537		184,732		140,087
Bank-owned life insurance	91,081		90,458		89,827		89,193		88,565
Foreclosed real estate and repossessed assets	7,249		1,328		29,494		29,514		29,548
Goodwill	309,505		309,505		309,505		307,941		307,464
Intangible assets	46,766		50,151		52,810		56,153		60,506
Prepaid assets	9,727		14,813		9,476		22,023		26,597
Deferred taxes	20,887		19,752		18,884		21,630		19,079
Other assets	85,652		97,499		54,832		52,831		49,754

Total assets	$	5,843,865	$	6,180,926	6,182,890		$	6,101,072	$	6,050,042

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Deposits held for sale	$	—	$	288,975	$	—	$	—	$	—
Deposits:
Noninterest-bearing checking	2,900,484		2,927,967		2,358,010		2,751,931		3,034,428
Interest-bearing checking	152,504		67,642		185,768		157,802		183,492
Savings deposits	37,615		17,436		49,773		52,179		59,978
Money market deposits	37,266		42,286		76,911		68,604		56,563
Time certificates of deposit	25,492		23,454		109,275		116,698		154,401
Wholesale deposits	809,043		1,438,820		1,557,268		1,628,000		1,481,445
Total deposits	3,962,404		4,517,605		4,337,005		4,775,214		4,970,307
Short-term borrowings	717,000		194,000		646,019		146,613		11,583
Long-term borrowings	211,353		213,070		215,838		209,765		99,800
Accrued interest payable	3,607		6,620		9,414		12,350		9,239
Accrued expenses and other liabilities	144,427		123,588		130,656		134,229		135,404
Total liabilities	5,038,791		5,343,858		5,338,932		5,278,171		5,226,333

STOCKHOLDERS’ EQUITY
Preferred stock	—		—		—		—		—
Common stock, $.01 par value	346		372		378		379		395
Common stock, Nonvoting, $.01 par value	—		—		—		—		—
Additional paid-in capital	590,682		587,678		580,826		578,715		576,406
Retained earnings	212,027		244,005		252,813		238,004		258,600
Accumulated other comprehensive income (loss)	1,654		3,895		6,339		2,308		(10,264)
Treasury stock, at cost	(3,397)		(3,187)		(445)		(13)		(4,956)
Total equity attributable to parent	801,312		832,763		839,911		819,393		820,181
Noncontrolling interest	3,762		4,305		4,047		3,508		3,528
Total stockholders’ equity	805,074		837,068		843,958		822,901		823,709

Total liabilities and stockholders’ equity	$	5,843,865	$	6,180,926	$	6,182,890	$	6,101,072	$	6,050,042

Consolidated Statements of Operations (Unaudited)

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


	Three Months Ended										Six Months Ended
	March 31, 2020		December 31, 2019		March 31, 2019		March 31, 2020		March 31, 2019
Interest and dividend income:
Loans and leases, including fees	$	70,493	$	68,702	$	73,670	$	139,195	$	134,168
Mortgage-backed securities	2,493		2,389		2,861		4,882		5,559
Other investments	6,417		6,534		11,763		12,952		23,543
	79,403		77,625		88,294		157,029		163,270
Interest expense:
Deposits	8,242		9,340		14,740		17,583		25,336
FHLB advances and other borrowings	3,424		3,634		2,204		7,058		6,312
	11,666		12,974		16,944		24,641		31,648

Net interest income	67,737		64,651		71,350		132,388		131,622

Provision for loan for lease losses	37,296		3,407		33,318		40,703		42,417

Net interest income after provision for loan and lease losses	30,441		61,244		38,032		91,685		89,205

Noninterest income:
Refund transfer product fees	28,939		192		31,601		29,131		31,862
Tax advance product fees	29,536		2,276		33,038		31,812		34,723
Payments card and deposit fees	23,156		21,499		24,671		44,655		45,477
Other bank and deposit fees	381		487		474		868		957
Rental income	11,100		12,351		9,890		23,451		20,780
Gain on sale of securities available-for-sale, net	—		—		231		—		209
Gain on divestitures	19,275		—		—		19,275		—
Gain (loss) on sale of other	2,325		(2,568)		2,230		(244)		3,496
Other income	5,801		3,246		2,890		9,047		5,272
Total noninterest income	120,513		37,483		105,025		157,995		142,776

Noninterest expense:
Compensation and benefits	34,260		34,268		49,164		68,529		82,174
Refund transfer product expense	7,449		173		7,181		7,621		7,191
Tax advance product expense	1,698		1,132		2,225		2,830		2,677
Card processing	6,696		5,607		6,971		12,303		14,056
Occupancy and equipment expense	7,013		6,655		7,212		13,668		13,670
Operating lease equipment depreciation	8,421		8,280		4,485		16,701		12,251
Legal and consulting	5,909		4,674		4,308		10,583		8,277
Intangible amortization	3,402		2,676		5,596		6,077		9,978
Impairment expense	507		242		9,660		750		9,660
Other expense	16,374		12,091		13,452		28,464		24,615
Total noninterest expense	91,729		75,798		110,254		167,526		184,549

Income before income tax expense	59,225		22,929		32,803		82,154		47,432

Income tax expense (benefit)	5,617		680		(395)		6,297		(2,086)

Net income before noncontrolling interest	53,608		22,249		33,198		75,857		49,518
Net income attributable to noncontrolling interest	1,304		1,181		1,078		2,485		2,000
Net income attributable to parent	$	52,304	$	21,068	$	32,120	$	73,372	$	47,518

Earnings per common share
Basic	$	1.45	$	0.56	$	0.81	$	2.00	$	1.21
Diluted	$	1.45	$	0.56	$	0.81	$	2.00	$	1.20
Shares used in computing earnings per share
Basic	35,948,799		37,431,788		39,429,595		36,691,705		39,381,682
Diluted	35,970,296		37,465,878		39,496,832		36,713,339		39,450,263

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. Non-accruing loans and leases have been included in the table as loans carrying a zero yield.


Three Months Ended March 31,	2020										2019
(Dollars in Thousands)	Average Outstanding Balance		Interest Earned / Paid		Yield / Rate⁽¹⁾		Average Outstanding Balance		Interest Earned / Paid		Yield / Rate⁽¹⁾
Interest-earning assets:
Cash and fed funds sold	$	196,754	$	739	1.51	%	$	281,069	$	1,914	2.76	%
Mortgage-backed securities	358,103		2,493		2.80	%	374,096		2,861		3.10	%
Tax exempt investment securities	454,177		2,132		2.39	%	926,156		6,138		3.40	%
Asset-backed securities	304,674		2,271		3.00	%	285,783		2,677		3.80	%
Other investment securities	192,379		1,275		2.67	%	142,452		1,034		2.95	%
Total investments	1,309,333		8,171		2.68	%	1,728,487		12,710		3.36	%
Commercial finance loans and leases	2,020,358		41,643		8.29	%	1,649,973		41,954		10.31	%
Consumer finance loans	264,307		5,386		8.20	%	327,441		7,289		9.03	%
Tax services loans	516,491		6,351		4.95	%	369,331		8,204		9.01	%
Warehouse finance loans	314,474		4,785		6.12	%	181,781		2,789		6.22	%
National lending loans and leases	3,115,630		58,165		7.51	%	2,528,526		60,236		9.66	%
Community banking loans	1,080,142		12,328		4.59	%	1,181,294		13,434		4.61	%
Total loans and leases	4,195,772		70,493		6.76	%	3,709,820		73,670		8.05	%
Total interest-earning assets	$	5,701,859	$	79,403	5.64	%	$	5,719,376	$	88,294	6.38	%
Non-interest-earning assets	909,040						1,068,318
Total assets	$	6,610,899					$	6,787,694

Interest-bearing liabilities:
Interest-bearing checking	$	182,107	$	105	0.23	%	$	148,640	$	78	0.21	%
Savings	46,592		6		0.05	%	56,048		9		0.07	%
Money markets	68,421		153		0.90	%	57,932		92		0.64	%
Time deposits	84,940		427		2.02	%	148,384		715		1.95	%
Wholesale deposits	1,476,085		7,551		2.06	%	2,283,049		13,846		2.46	%
Total interest-bearing deposits	1,858,145		8,242		1.78	%	2,694,053		14,740		2.22	%
Overnight fed funds purchased	372,596		1,307		1.41	%	103,600		637		2.49	%
FHLB advances	110,000		670		2.45	%	—		—		—	%
Subordinated debentures	73,698		1,158		6.32	%	73,542		1,162		6.41	%
Other borrowings	28,714		289		4.04	%	39,610		405		4.14	%
Total borrowings	585,008		3,424		2.35	%	216,752		2,204		4.12	%
Total interest-bearing liabilities	2,443,153		11,666		1.92	%	2,910,805		16,944		2.36	%
Noninterest-bearing deposits	3,199,148		—		—	%	2,953,275		—		—	%
Total deposits and interest-bearing liabilities	$	5,642,301	$	11,666	0.83	%	$	5,864,080	$	16,944	1.17	%
Other noninterest-bearing liabilities	136,759						129,525
Total liabilities	5,779,060						5,993,605
Shareholders' equity	831,839						794,089
Total liabilities and shareholders' equity	$	6,610,899					$	6,787,694
Net interest income and net interest rate spread including noninterest-bearing deposits			$	67,737	4.81	%			$	71,350	5.21	%

Net interest margin					4.78	%					5.06	%
Tax-equivalent effect					0.04	%					0.12	%
Net interest margin, tax-equivalent⁽²⁾					4.82	%					5.18	%

⁽¹⁾Tax rate used to arrive at the TEY for the three months ended March 31, 2020 and 2019 was 21%.

⁽²⁾ 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.

Selected Financial Information


As of and For the Three Months Ended	March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019
Equity to total assets	13.78		%	13.54		%	13.65		%	13.49		%	13.61		%
Book value per common share outstanding	$	23.26		$	22.52		$	22.32		$	21.72		$	20.88
Tangible book value per common share outstanding	$	12.97		$	12.84		$	12.74		$	12.11		$	11.55
Tangible book value per common share outstanding excluding AOCI	$	12.92		$	12.74		$	12.57		$	12.05		$	11.81
Common shares outstanding	34,607,962			37,172,081			37,807,064			37,878,205			39,450,938
Non-performing assets to total assets	0.67		%	0.48		%	0.91		%	0.84		%	0.68		%
Non-performing loans and leases to total loans and leases	0.87		%	0.62		%	0.70		%	0.57		%	0.28		%
Net interest margin	4.78		%	4.94		%	4.95		%	5.07		%	5.06		%
Net interest margin, tax-equivalent	4.82		%	4.99		%	5.00		%	5.15		%	5.18		%
Return on average assets	3.16		%	1.38		%	1.32		%	1.91		%	1.89		%
Return on average equity	25.15		%	10.04		%	9.69		%	14.17		%	16.18		%
Full-time equivalent employees	992			1,088			1,186			1,218			1,231

Quarterly Amortization of Intangibles Expense


(Dollars in Thousands)	Actual		Anticipated
For the Three Months Ended	Mar 31, 2020		Jun 30, 2020		Sep 30, 2020		Dec 31, 2020		Mar 31, 2021		Jun 30, 2021		Sep 30, 2021		Dec 31, 2021		Mar 31, 2022

Amortization of intangibles⁽¹⁾	$	3,402	$	2,637	$	2,282	$	2,013	$	2,757	$	2,013	$	1,761	$	1,488	$	2,170

⁽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.

About Meta Financial Group®

Meta Financial Group, Inc.® (Nasdaq: CASH) is a South Dakota-based financial holding company. Meta Financial Group’s banking subsidiary, MetaBank®, N.A., (“Meta”), is a leader in providing innovative financial solutions to consumers and businesses in under-served niche markets and believes in financial inclusion for all. Meta’s commercial lending division works with high-value niche industries, rapid-growth companies and technology adopters to grow their businesses and build more profitable customer relationships nationwide. Meta is one of the largest issuers of prepaid cards in the U.S., having issued more than a billion cards in partnership with banks, program managers, payments providers and other businesses, and offers a total payments services solution that includes ACH origination, wire transfers, and more. For more information, visit the Meta Financial Group website.


Investor Relations and Media Contact:
Brittany Kelley Elsasser
Director of Investor Relations
605-362-2423
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Quarterly Investor Update Second Quarter Fiscal Year 2020

Forward-Looking Statements This investor update contains “forward-looking statements” which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “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. 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. Factors that 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 include, among others: 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; 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; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of 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 the Company’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 and recent and potential changes in response to the COVID-19 pandemic such as the CARES Act and the rules and regulations that may be promulgated thereunder; 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, National Association (“MetaBank”) deposit accounts up to applicable limits; technological changes, including, but not limited to, the protection of electronic files or databases; 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, particularly in light of our growing deposit base, a portion of which has been characterized as “brokered;” changes in consumer spending and saving habits; 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; and the other factors described 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, 2019 and in other filings made by the Company with the Securities and Exchange Commission (“SEC”). The forward-looking statements included herein speak only as of the date of this investor update. 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. 2 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Business Developments Second Quarter Ended March 31, 2020 • Through April 20, 2020, authorized 502 applications totaling $189.5 million for the Paycheck Protection Program (“PPP”). • Expanded faster payments platform to include Visa Direct. • Converted MetaBank to a national bank charter from a federal thrift charter and Meta Financial Group to a bank holding company from a savings and loan holding company, which better reflects business model. • Closed sale of Community Bank division to Central Bank on February 29, 2020. - Sale included all of the community bank's deposits of $290.5 million, branch locations, fixed assets, employees, and a portion of the community bank’s loan portfolio totaling $268.8 million. The remaining community bank loans not sold to Central Bank, which totaled $896.2 million at March 31, 2020, have been retained by the Company under a servicing agreement with Central Bank. • Progress made towards long-term strategic plan through improved balance sheet mix and lower efficiency ratio. 3 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

COVID-19 Pandemic Focus Second Quarter Ended March 31, 2020 Employee, Partner, and Customer Focus • COVID-19 Crisis Command Center monitors day-to-day operations and potential business interruptions • Remote work options and social distancing measures where available • Restrictions on non-essential business travel • Enhanced preventative cleaning at all office locations Credit Monitoring Focus • Tightening underwriting standards • Monitoring and placing limits on originations to higher risk industries and customers • Contacting customers in order to assess credit situations and needs • Offering flexible repayment options to current customers, when appropriate • Utilizing CARES Act, SBA and USDA programs and loan products • Increased allowance for loan and lease losses during the fiscal second quarter • As of April 19, 2020, completed short-term payment deferral modifications of $152.0 million and $62.4 million in other COVID-19 related modifications Capital Focus • Quarter-end Bank capital leverage ratio based on asset levels as of March 31, 2020 was 9.71%¹, better reflects the Company’s anticipated balance sheet going forward • Multiple capital options, including a flexible balance sheet including a highly-liquid $1.31 billion securities portfolio • Suspension of share repurchase program, representing the majority of our capital deployment plan 1 Non-GAAP measure, see appendix for reconciliations. 4 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Selected Financial Highlights Second Quarter Ended March 31, 2020 INCOME STATEMENT ($ in thousands, except per share data) 2Q20 1Q20 2Q19 Net interest income 67,737 64,651 71,350 • Net income of $52.3 million, or $1.45 per diluted Provision for loan and lease losses 37,296 3,407 33,318 share, for the quarter. Payments card & deposit fees 23,156 21,499 24,671 Total noninterest income 120,513 37,483 105,025 • Net interest margin ("NIM") increased to 4.78% for Total noninterest expense 91,729 75,798 110,254 the fiscal 2020 second quarter, down 16 basis Net income before taxes 59,225 22,929 32,803 points from the fiscal 2020 first quarter. Adjusting for Income tax expense (benefit) 5,617 680 (395) the impact from our seasonal tax refund advance Net income before non-controlling interest 53,608 22,249 33,198 loans and related funding, net interest margin was Net income attributable to non-controlling interest 1,304 1,181 1,078 5.01%. Net income attributable to parent $ 52,304 $ 21,068 $ 32,120 • During the quarter, repurchased 2,592,381 shares, Earnings per share, diluted $ 1.45 $ 0.56 $ 0.81 at a weighted average price per share of $31.78. Average diluted shares 35,970,296 37,465,878 39,496,832 BALANCE SHEET ($ in thousands) 2Q20 1Q20 2Q19 Loans and leases 3,618,924 3,590,474 3,437,980 Allowance for loan and lease losses (65,355) (30,176) (48,672) • Total loans and leases increased by $180.9 million, Total assets $ 5,843,865 $ 6,180,926 $ 6,050,042 or 5%, compared to fiscal 2019 second quarter Noninterest-bearing checking 2,900,484 2,927,967 3,034,428 ended March 31, 2019. Total deposits 3,962,404 4,517,605 4,970,307 Total liabilities 5,038,791 5,343,858 5,226,333 • Average payments deposits grew $315.8 million, or 11%, compared to the prior fiscal year second Total stockholders' equity 805,074 837,068 823,709 quarter average. Total liabilities and stockholders equity $ 5,843,865 $ 6,180,926 $ 6,050,042 Average loans and leases 4,195,772 3,735,196 3,709,820 Average assets 6,610,899 6,122,504 6,787,694 Average payments deposits 3,309,899 2,778,280 2,994,082 5 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Differentiated Portfolio of Business Lines Last Twelve Months Ended March 31, 2020 Commercial Consumer Community Corporate & Payments Tax Total ($ in thousands) Finance Finance Bank Eliminations Net interest income (expense) 154,864 57,474 (1,131) 38,919 41,167 (26,320) 264,973 Non-interest income 57,141 82,267 72,949 2,322 17,339 5,748 237,766 Revenue 212,005 139,741 71,818 41,241 58,506 (20,572) 502,739 Provision for loan and lease losses 26,656 - 21,411 1,294 4,575 - 53,936 Net revenue¹ 185,349 139,741 50,407 39,947 53,931 (20,572) 448,803 % of total revenue 41% 31% 11% 9% 12% (4)% 100% Average earning assets 1,898,020 21,206 151,877 578,972 1,164,838 1,551,453 5,366,366 Payments: Primary deposit source which generates stable, core deposits Net Revenue Contribution by Business Line Community Bank: Remaining legacy portfolio from the sale of the Corporate Community Bank division closed on February 29, 2020 (4)% Consumer Finance: Includes warehouse finance, consumer credit Community products, student loan and ClearBalance portfolios Bank 12% (includes $8.2 million of net revenue related to the student loan portfolio which is reported under the Corporate segment for SEC segment reporting) Consumer Commercial Finance Finance 41% 9% Corporate: Includes certain shared services such as funds transfer pricing and eliminations as well as treasury related functions such Tax as the securities portfolio Consumer 11% • Securities portfolio comprised primarily of government related securities 51% with over 92% of the portfolio exposure directly related to government agency or instrumentalities Payments 31% 1 Net Revenue is a non-GAAP financial measure. 6 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Diversified Earning Asset Portfolio QUARTERLY AVERAGE EARNING ASSET MIX At the Quarter Ended % in charts represent % of total interest earning assets March 31, 2020 March 31, 2019 3% ($ in thousands) 2Q20 2Q19 Y/Y Δ 35% COMMERCIAL FINANCE 2,026,347 1,665,891 22 % 23% Term lending 725,581 507,886 43 % Asset-based lending 250,211 230,557 9 % MAR 2020 $5.70 billion Factoring 285,495 287,955 (1) % INTEREST EARNING ASSETS Lease financing 238,788 155,181 54 % Insurance premium finance 332,800 307,875 8 % 10% SBA/USDA 92,000 77,481 19 % 19% 74% Other commercial finance 101,472 98,956 3 % CONSUMER FINANCE 258,439 310,441 (17) % Consumer credit programs 113,544 139,617 (19) % 5% Other consumer finance 144,895 170,824 (15) % 29% TAX SERVICES 95,936 84,824 13 % WAREHOUSE FINANCE 333,829 186,697 79 % 30% NATIONAL LENDING 2,714,551 2,247,853 21 % MAR 2019 $5.72 billion COMMUNITY BANKING 896,234 1,187,163 (25) % INTEREST EARNING ASSETS 65% TOTAL GROSS LOANS & LEASES 3,610,785 3,435,016 5 % 21% 9% CASH & INVESTMENTS 1,389,486 1,774,786 (22) % TOTAL EARNING ASSETS 5,000,271 5,209,802 (4) % LOANS & LEASES INVESTMENTS CASH & FED FUNDS Commercial Consumer & Warehouse Community Bank 7 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Commercial Finance & Community Bank Portfolios 8 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Commercial Finance Loan and Lease Portfolio Rental Term Lending. Collateralized conventional term loans and notes receivable, weighted average life Equipment, net of 53 months. Significant portion of the term lending exposure is concentrated in solar/alternative $200.8M energy. Most of these loans will convert to longer-term government guaranteed facilities. Average Other NA% loan size approximately $200 thousand. $101.5M 7.24% SBA/USDA $92.0M Asset-Based Lending. Asset-based loans secured by accounts receivable, inventory, machinery & 5.16% equipment, work-in-process and other assets. Approximately 70% backed by accounts receivable. Term Lending Exposure managed within a collateral borrowing base. Well diversified in terms of industry and $2.23 billion $725.6M geographic concentrations. Average loan size approximately $1.75 million. 7.63% Commercial Finance Portfolio Insurance (includes Rental Equipment, net) Factoring. Factoring services where clients provide detailed inventory, accounts receivable, and Premium as of March 31, 2020 work-in-process reports for lending arrangements. Bank secures dominion of funds which secures Finance $332.8M repayment when applicable accounts receivables or invoices are paid. Approximately 95% backed 6.52% 8.29% by accounts receivable. Average loan size approximately $300 thousand. 2Q20 Quarterly Yield Lease Financing. Leasing solutions for technology, capital equipment and select transportation % in chart represents assets like tractors, trailers and construction equipment. Average lease size approximately $125 current quarter yield thousand. Lease Asset-Based Financing Lending $250.2M $238.8M Insurance Premium Finance. Short-term, primarily collateralized financing to facilitate the 8.24% 9.20% Factoring purchase of commercial insurance for various forms of risk. Over 90% of insurance company $285.5M partners have an investment grade rating through AM Best as well as an internal risk rating system. 13.08% Average loan size approximately $30 thousand. SBA/USDA. Originate loans through programs partially guaranteed by the SBA or USDA. Average loan size approximately $700 thousand. Top geographic state concentrations1 by % 1. California 16.7% 2. Texas 12.3% Other Commercial Finance. Includes healthcare receivables loan portfolio primarily comprised of loans to individuals for medical services received. Majority of these loans are guaranteed by the 3. Florida 7.1% referring hospital. 4. Michigan 6.9% 5. New York 5.7% 6. North Carolina 4.4% Rental Equipment. Leased assets related to operating leases generated from the commercial 7. Missouri 4.1% finance business line. Primarily consists of solar panels, motor vehicles, and computers and IT networking equipment. 8. Illinois 3.2% 1 Excludes certain joint ventures; percentages calculated based on aggregate principal amount of loans includes operating lease rental equipment of $200.8M 9 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Distribution of Commercial Finance Portfolio by Industry¹ Public Administration Agriculture, Forestry, Fishing and Hunting Educational Services Management of Companies and Enterprises Arts, Entertainment, and Recreation Information Retail Trade Other Services (except Public Administration) Other Accommodation and Food Services Real Estate and Rental and Leasing Mining, Quarrying, and Oil and Gas Extraction Admin and Support and Waste Mgmt and Remediation Services Professional, Scientific, and Technical Services Construction Health Care and Social Assistance Wholesale Trade Finance and Insurance Utilities Transportation and Warehousing Manufacturing $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $ in millions 1 Distribution by NAICS codes; excludes certain joint ventures 10 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Commercial Portfolio Concentrations¹ MANUFACTURING UTILITIES Total Exposure $418.2 million % of Total² 11.0% Total Exposure $275.4 million % of Total² 7.2% • Limited exposure to single borrowers • 96% of Utilities exposure is to Solar Electric Power Generation, majority of • Diversified across multiple subsectors – greatest concentration of subsectors which is related to permanent solar generators. is 1.8% of total² • Well collateralized, majority backed by power purchase agreements with • $39.2 million in leases Outstanding % of highly rated, large public utilities Balance Total² • $74.7 million in leases Manufacturing $418.2 11.0% Computer and Electronic Product Manufacturing 67.4 1.8% Fabricated Metal Product Manufacturing 39.9 1.0% Transportation Equipment Manufacturing 39.8 1.0% Primary Metal Manufacturing 37.5 1.0% Chemical Manufacturing 34.2 0.9% Electrical Equipment, Appliance, and Component Manufacturing 33.1 0.9% Solar Electric Power Generation Machinery Manufacturing 25.4 0.7% Printing and Related Support Activities 22.6 0.6% Nonmetallic Mineral Product Manufacturing 22.5 0.6% Other Utilities Miscellaneous Manufacturing 21.5 0.6% Plastics and Rubber Products Manufacturing 20.0 0.5% Other³ 54.3 1.4% TRANSPORTATION & WAREHOUSING OIL & GAS Total Exposure $280.0 million % of Total² 7.3% Total Exposure $56.9 million % of Total² 1.5% • $183.2 million exposure to truck transportation, over 90% in general freight trucking. • $55.3 million exposure related to support activities for Oil & Gas Operations • Less than $3.1 million exposure to air transportation and support activities. - Approximately 51% of outstandings are in working capital lines, • Receive invoices and back-up, verify a portion of the purchases and monitor these primarily collateralized by accounts receivable, remaining collateralized accounts under a Dominion of Funds to ensure that our balances are covered by by machinery and equipment collateral 1 Excludes certain joint ventures; percentages calculated based on aggregate principal amount of loans includes operating lease rental equipment of $200.8M ² Total includes total gross loans & leases of $3.61 billion and rental equipment, net of $200.8M, as of March 31, 2020 3 Other includes manufacturing subsectors comprised of less than 0.5% of total² 11 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Limited Commercial Finance Exposure¹ to Retail and Hospitality Sectors Retail & Other Services • $39.7 million total Retail Trade exposure; 1.0% of total² - Retail portfolio is widely distributed; largest categories include: $82.4M Exposure • Motor Vehicle and Parts Dealer $8.0 million outstanding to ~516 clients • Miscellaneous Store Retailer $6.0 million outstanding to ~289 clients • $42.7 million total Other Services exposure; 1.1% of total² 2.1% of total² - $15.0 million exposure to Personal and Laundry Services to ~381 clients - $12.6 million exposure to Repair and Maintenance to ~1,039 clients - $8.4 million exposure to Homeowners Associations to ~510 clients, 79% from the insurance premium finance portfolio Hotels & Restaurants • $38.1 million total Hotel (except Casino Hotels) and Motel exposure; 1.0% of total² - $30.7 million in SBA loans to ~20 clients $50.3M Exposure - $1.8 million insurance premium finance to ~148 clients • $12.2 million total full- and limited-service restaurant exposure; 0.3% of total² 1.3% - $6.3 million insurance premium finance to ~680 clients of total² - $5.6 million in term lending to ~89 clients Entertainment • $35.1 million total exposure; 0.9% of total² - $21.1 million exposure to fitness and recreational sports centers ~386 clients $35.1M • 50% in term lending portfolio, 25% in SBA loans, and 23% lease receivables Exposure 0.9% of total² 1 Excludes certain joint ventures; percentages calculated based on aggregate principal amount of loans includes operating lease rental equipment of $200.8M ² Total includes total gross loans & leases of $3.61 billion and rental equipment, net of $200.8M, as of March 31, 2020 12 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Legacy Community Bank Portfolio Breakdown As of March 31, 2020 | Serviced by Central Bank 1-4 Family Real Estate Outstanding • Majority first mortgages for owner-occupied homes ($ in millions) Balance % of Total¹ • Vast majority of loans are originated with loan-to-values below 80% Commercial Real Estate $634.5 16.6% • 96% residential mortgage, 4% construction 1-4 Family Real Estate 199.2 5.2% • ALLL coverage of 1.14% of total 1-4 family real estate loans Agricultural 36.8 1.0% • Very minimal past due loans (less than 0.10% total past due) as of March 31, 2020 Commercial Operating 19.9 0.5% Consumer 5.8 0.2% Total $896.2 23.5% Commercial Real Estate • As a result of COVID-19, tightened focus on directly impacted industries Portfolio Composition Type - Hotel/motel portfolio diversified throughout the Midwest Insurance Theater Other² Agencies & 2.7% 3.2% Brokerages - Minimal restaurant loans in portfolio Gas Station 3.2% 4.5% - Frequent discussions with impacted borrowers, short-term planning (90-day deferrals), educating on SBA Relief Programs Office Building 7.1% Multifamily - Central Bank has funded 31 small business PPP loans through April 19, 2020, totaling 37.6% $4.9 million, for Meta’s legacy community bank customers Grocery • 65% of hotel relationships received PPP loans 8.0% • 87% commercial mortgage, 13% commercial construction • ALLL coverage of 1.53% of total commercial real estate loans Retail - Demonstrated minimal historical charge-offs (2bps 5-year average NCO/average 8.9% loans) • No past due or non-accrual loans as of March 31, 2020 Hotel/Motel ¹ Total includes total gross loans & leases of $3.61 billion and rental equipment, net of $200.8M, as of March 31, 2020 24.8% ² Other includes subsectors comprised of less than 1% of total commercial real estate as of March 31, 2020 ($634.5 million) 13 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Consumer Lending, Tax Services, Payments 14 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Warehouse Finance Total Exposure $333.8 million % of Total¹ 8.8% All Loan/Collateral Cash Flows Asset-backed warehouse lines of credit used to support strategic initiatives. • Lines are primarily secured by consumer receivables, whereby Meta is in a senior, secured position as the first out participant. Admin Fees (0-5%) • Have never had a charge off or loss. • Agreements trigger waterfall protection for the “First Out” participant: First-Out Tranche (Meta - The waterfall could be “triggered” due to items such as: collateral Position) underperformance, collateral days past due, covenant breaches, $55MM (55%) concentration limit breaches, missed payments, regulatory events, material adverse effects, etc. $100M Junior Tranche Facility EXAMPLE $35MM (35%) EXAMPLE In the example $100M scenario, all cash flows of the outstanding facility are used to pay the First Out Tranche’s (i.e. – Meta’s) outstanding principal and interest. The First Out’s position must be paid down in full prior to the junior and equity tranches receiving any cash flow. Effectively, the First Out receives the benefit of $100M of Equity Tranche loans/collateral to pay down its $55M full principal and interest $10MM (10%) position. ¹ Total includes total gross loans & leases of $3.61 billion and rental equipment, net of $200.8M, as of March 31, 2020 15 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Consumer Credit Programs Consumer Payments Total Exposure $113.5 million % of Total¹ 3.0% Principal, Interest, Fees Consumer credit programs offer Meta a risk adjusted return, protected by certain layers of credit support and balance sheet flexibility. Programs are offered to strategic partners with payments distribution potential. Collection Account • Agreements typically provide for “excess spread” build-up and protection through a priority of payment within a waterfall • Consumer interest rate and fees flow through a waterfall: Principal Principal Losses Repayment to Servicing - Covers principal losses and Meta’s required rate of interest. Meta’s to Meta interest rate is substantially less than the consumer’s APR Meta - Structure provides for a build up of excess spread to allow protection from loan losses and ensure Meta’s contractual rate of interest is covered Meta’s Agreed upon - Structure provides for ALLL on a portfolio basis rather than loan interest return level basis - Excess spread in the escrow account only released to partner when certain conditions are satisfied Remaining Excess Spread - Escrow account balance has increased since program inception to Meta-owned escrow reserve Reserve release to partner is conditional (subordinate) based on product performance ¹ Total includes total gross loans & leases of $3.61 billion and rental equipment, net of $200.8M, as of March 31, 2020 16 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

2020 Tax Season Update Tax Season at Meta begins ramping up during the first fiscal quarter and peaks during the second fiscal quarter. As a result, performance for the six months ended March 31 is a better reflection on the overall performance for tax season as it alleviates timing differences between quarters. • Refund advance originations of $1.33 billion compared to $1.49 billion in the 2019 tax season – Exited relationships with non-strategic partners for the 2020 tax season which produced $252 million in refund advance originations in 2019 – Approximate average loan size of $1,355 compared to $1,400 in 2019 • Approximately 2.1 million of refund transfers ("RTs") expected to be processed over the 2020 tax season compared to 2.4 million in the 2019 tax season – Exit of non-strategic relationships which produced 225 thousand refund transfers in the 2019 tax season TAX SERVICES ECONOMICS Three Months Ended Six Months Ended $ in millions March 31, 2020 March 31, 2019 % Change March 31, 2020 March 31, 2019 % Change Net interest income (expense) (1.36) (0.64) (114.2)% (1.33) (4.24) 218.1 % Tax advance product income 29.54 33.04 (10.6)% 31.81 34.72 (8.4)% RT product income 28.94 31.60 (8.4)% 29.13 31.86 (8.6)% Total revenue $ 57.12 $ 64.00 (10.8)% $ 59.61 $ 62.35 (4.4)% Total expense 9.15 9.41 (2.8)% 10.45 9.87 5.9 % Provision for loan & lease losses 19.60 22.47 (12.8)% 20.51 23.97 (14.4)% Net income, pre-tax $ 28.37 $ 32.12 (11.7)% $ 28.65 $ 28.51 0.5 % Total refund advance originations 1,258 1,432 (12.2)% 1,335 1,486 (10.2)% Approximate loss rate¹ (6 months) 1.54 % 1.61 % (4.3)% 1 Approximate loss rate calculated by taking provision for loan & lease losses divided by total refund advance originations. 17 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Payments Business Update Payments Card and Deposit Fee Income Breakout Second Quarter Fiscal 2020 • Increased monitoring of our partners due to COVID-19; providing payment modifications and deferrals where necessary. 8% • Prepaid card distribution based on balance as of March 31, 2020: 11% - 30% Gift Card - 28% Payroll - 22% General Purpose - 20% Loyalty, Award Promotion • Payments business line provides primary deposit source which generates stable, core deposits. • Payments deposits represented 65% of total average deposits for the 81% fiscal 2020 second quarter. • Generated $23.2 million in payments card and deposit fee income in Prepaid Deposit Banking Services second fiscal quarter 2020. Banking Services includes ATM, ACH/Faster Payments, Merchant Acquiring Average Payments Deposits Payments Card and Deposit Fee Income ($ in billions) ($ in millions) Percent of Total Revenue 10% CAGR $3.31 2017 - 2019 14% 19% 20% 21% 12% $2.99 $2.71 $2.45 $24.7 $23.2 $21.4 $20.3 $21.5 $2.25 2017 2018 2019 2Q19 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Fiscal Year Average Quarter Average 18 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Asset Quality, Interest Rate Risk, Capital 19 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Asset Quality 1 Excludes Tax Services NCOs and Related Seasonal Average Loans Tax Services NCOs and related seasonal average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the tax services business line. Crestmark Division Community Bank Division Chart presents both Crestmark Bank's historical information and information concerning the Crestmark division (post-Crestmark acquisition). Source: S&P Global Market Intelligence for data prior to acquisition on August 1, 2018. 1Non-GAAP measures, see appendix for reconciliations. 20 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Interest Rate Risk Management as of March 31, 2020 12-Month Interest Rate Sensitivity from Base Net Interest Income 11% • Net Interest Income modeled under an instantaneous, 9% parallel rate shock and a gradual parallel ramp. 7% 5% • Management also employs rigorous modeling 3% techniques under a variety of yield curve shapes, twists 1% and ramps. -2% • ALCO management focused on minimizing risk to -4% -100 +100 +200 +300 further decline in rates. Parallel Shock Ramp Earning Asset Pricing Attributes1 Asset/Liability Gap Analysis $3,500 $3,000 9% $2,500 $2,000 32% $1,500 $1,000 $500 Volume ($MM) Volume $- 59% $(500) $(1,000) Month 1-12 Month 13-36 Month 37-60 Month 61-180 Fixed Rate < 1 Year Fixed Rate > 1 Year Floating or Variable Period Variance Total Assets Total Liabilities 1 Fixed rate securities, loans and leases are shown for contractual periods less than 12 months and greater than 12 months. 21 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Strong Capital and Sources of Liquidity Regulatory Capital as of March 31, 2020 At March 31, 2020 Meta Financial Group, Inc. MetaBank Capital Ratio Trends Tier 1 Leverage 7.28% 8.52% Tier 1 Leverage – Period End¹ N/A 9.71% Common Equity Tier 1 10.24% 12.36% Tier 1 Capital 10.60% 12.41% Total Capital 13.57% 13.66% • MetaBank period end Tier 1 Leverage of 9.71% better reflects the go-forward balance sheet post-tax season. • Strong capital position post-tax season, which also benefited from the gain on sale from the divesture of the community bank division. Primary & Secondary Liquidity Sources ($ in millions) Cash and Cash Equivalents $105 Unpledged Investment Securities $190 FHLB Borrowing Capacity $1,150 Funds Available through Fed Discount Window $340 Meta Financial Group, Inc. MetaBank Unsecured Lines of Credit $1,240 - $1,510 Minimum Requirement to be Well-Capitalized under Prompt Corrective Action Provisions 1 Non-GAAP measure, see appendix for reconciliations. 22 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Appendix 23 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Long-Term Strategy to Drive Shareholder Value 1 2 3 KEY Increase Percentage of Optimize Interest-Earning Improve Operating Funding from Core Asset Mix Efficiencies INITIATIVES Deposits Expense discipline by improving collaboration Leverage payments division growth Replace lower-yielding loans and securities with and productivity between business lines opportunities higher-yielding and higher-return loans STRATEGY Concentrated focus on optimization and utilization of existing business platforms Explore and develop new niche deposit Expand net interest margin with focus on the opportunities commercial finance line of business Pause on material mergers and acquisitions Gain greater share of deposits from existing relationships Driving 2x operating leverage in each business Continue to enhance interest-earning asset mix Develop additional products and services to line (i.e., growing revenue two times the rate of FOCUS with focus on commercial finance business lines deepen relationships expense growth) Add new strategic relationships Closed sale of community bank division on Average deposits from payments divisions For the last twelve months ended March 31, February 29, 2020 increased nearly 11% in second quarter fiscal 2020, improved efficiency ratio to 62.9%, PROGRESS 2020 when compared to the same period of compared to 73.4% in the same period as of Remaining community bank loans not included fiscal 2019 March 31, 2019 in the pending sale will run-off over time 24 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Financial Measure Reconciliations Efficiency Ratio For the last twelve months ended ($ in thousands) Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Noninterest Expense - GAAP 316,138 334,663 333,160 323,657 300,242 Net Interest Income 264,973 268,586 264,207 247,127 208,570 Noninterest Income 237,766 222,278 222,545 211,179 200,614 Total Revenue: GAAP 502,739 490,864 486,752 458,306 409,184 Efficiency Ratio, LTM 62.88 % 68.18 % 68.45 % 70.62 % 73.38 % Non-GAAP Reconciliation Adjusted Annualized NCOs and Adjusted Average Loans and Leases For the quarter ended ($ in thousands) Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Net Charge-offs 2,117 2,380 18,476 14,279 5,936 Less: Tax services net charge-offs (74) (739) 15,416 9,592 (83) Adjusted Net Charge-offs $ 2,191 $ 3,119 $ 3,060 $ 4,687 $ 6,019 Quarterly Average Loans and Leases 4,195,772 3,735,196 3,729,545 3,599,138 3,709,820 Less: Quarterly Average Tax Services Loans 516,491 24,429 21,445 45,142 369,331 Adjusted Quarterly Loans and Leases $ 3,679,281 $ 3,710,767 $ 3,708,100 $ 3,553,996 $ 3,340,489 Annualized NCOs/Average Loans and Leases 0.20 % 0.25 % 1.98 % 1.59 % 0.65 % Adjusted Annualized NCOs/Adjusted Average Loans and Leases1 0.24 % 0.34 % 0.33 % 0.53 % 0.73 % 1 Tax Services NCOs and average loans are excluded to adjust for the cyclicality of activity related to the overall economics of the Company's tax services business line. 25 Second Quarter Fiscal Year 2020 | Nasdaq: CASH

Non-GAAP Reconciliations MetaBank Period-end Tier 1 Leverage Adjusted Net Interest Margin Three Months Ended March 31, 2020 March 31, 2020 Total stockholder's equity $ 896,924 Interest-earning assets 5,701,859 Adjustments: Net interest income 67,737 LESS: Goodwill, net of associated deferred tax liabilities 303,230 Net interest margin 4.78 % LESS: Certain other intangible assets 45,271 LESS: Net deferred tax assets from operating loss and tax credit carry- Adjustments for Tax Seasonality forwards 11,589 Interest-earning assets 5,701,859 LESS: Net unrealized gains (losses) on available-for-sale securities 2,337 LESS: Tax related assets 516,491 LESS: Noncontrolling interest 3,762 LESS: Cash adjustment 97,625 Common Equity Tier 1 Capital ("CET1") (1) 530,735 Adjusted interest-earning assets 5,087,743 Tier 1 minority interest not included in common equity tier 1 capital 2,036 Total Tier 1 capital 532,771 Net Interest Income 67,737 LESS: Tax interest 6,351 Total Assets (Quarter Average) $ 6,621,594 LESS: Cash interest adjustment 233 ADD: Available for sale securities amortized cost (12,393) ADD: Tax funding expense allocation 2,231 ADD: Deferred tax 3,092 Adjusted net interest income 63,384 LESS: Deductions from CET1 360,090 Adjusted net Interest margin 5.01 % Adjusted total assets $ 6,252,203 MetaBank Regulatory Tier 1 Leverage 8.52 % Total Assets (Period End) $ 5,851,952 ADD: Available for sale securities amortized cost (3,114) ADD: Deferred tax 777 LESS: Deductions from CET1 360,090 Adjusted total assets $ 5,489,525 MetaBank Period-end Tier 1 Leverage 9.71 % 26 Second Quarter Fiscal Year 2020 | Nasdaq: CASH


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


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))


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	CASH	The NASDAQ Stock Market LLC


Exhibit Number						Description of Exhibit

99.1						Press Release of Meta Financial Group, Inc., dated April 22, 2020 regarding the results of operations and financial condition.

99.2						Investor Update slide presentation for the Second Quarter of Fiscal Year 2020, dated April 22, 2020, prepared for use with the Press Release.


		META FINANCIAL GROUP, INC.

Date: April 22, 2020	By:	/s/ Glen W. Herrick
		Glen W. Herrick
		Executive Vice President and Chief Financial Officer