CASH 2017 Annual Report

96 META FINANCIAL GROUP, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended September 30, (Dollars in Thousands, Except Share and Per Share Data) 2017 2016 2015 Interest and dividend income: Loans receivable, including fees $ 52,117 $ 36,187 $ 29,565 Mortgage-backed securities 16,571 15,771 13,979 Other investments 39,415 29,438 18,063 108,103 81,396 61,607 Interest expense: Deposits 6,051 614 726 FHLB advances and other borrowings 8,822 3,477 1,661 14,873 4,091 2,387 Net interest income 93,230 77,305 59,220 Provision for loan losses 10,589 4,605 1,465 Net interest income after provision for loan losses 82,641 72,700 57,755 Non-interest income: Refund transfer product fees 38,956 23,347 63 Tax advance product fees 31,913 1,575 — Card fees 94,707 70,533 54,542 Loan fees 3,882 3,374 2,348 Bank-owned life insurance income 2,216 1,656 2,030 Deposit fees 736 603 593 Loss on sale of securities available-for-sale, net (Includes ($493), ($326), and ($1,634) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) (493) (326) (1,634) Loss (gain) on foreclosed real estate (6) — 28 Other income 261 8 204 Total non-interest income 172,172 100,770 58,174 Non-interest expense: Compensation and benefits 88,728 61,675 46,493 Refund transfer product expense 11,885 8,648 3 Tax advance product expense 3,241 — — Card processing expense 24,130 22,263 16,508 Occupancy and equipment expense 16,465 13,999 11,399 Legal and consulting expense 8,384 4,824 4,978 Marketing 2,117 1,972 1,537 Data processing expense 1,449 1,334 1,347 Amortization expense 12,362 4,828 1,349 Intangible impairment 10,248 — — Other expense 20,654 15,105 12,892 Total non-interest expense 199,663 134,648 96,506 Income before income tax expense 55,150 38,822 19,423 Income tax expense (Includes ($185), ($118), and ($597) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) 10,233 5,602 1,368 Net income $ 44,917 $ 33,220 $ 18,055 Earnings per common share (1) : Basic $ 4.86 $ 3.93 $ 2.68 Diluted $ 4.83 $ 3.91 $ 2.66 (1) See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91. See Notes to Consolidated Financial Statements.