CASH 2018 Annual Report

105 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) 2018 2017 2016 Interest and dividend income: Loans and leases, including fees $ 98,475 $ 52,117 $ 36,187 Mortgage-backed securities 15,479 16,571 15,771 Other investments 44,580 39,415 29,438 158,534 108,103 81,396 Interest expense: Deposits 15,163 6,051 614 FHLB advances and other borrowings 12,822 8,822 3,477 27,985 14,873 4,091 Net interest income 130,549 93,230 77,305 Provision for loan and lease losses 29,432 10,589 4,605 Net interest income after provision for loan and lease losses 101,117 82,641 72,700 Non-interest income: Refund transfer product fees 41,879 38,956 23,347 Tax advance product fees 35,703 31,913 1,575 Card fees 94,446 94,707 70,533 Rental income 7,333 — — Loan and lease fees 4,470 3,882 3,374 Bank-owned life insurance income 2,590 2,216 1,656 Deposit fees 4,451 736 603 Loss on sale of securities, net (Includes ($8,177), ($493), and ($326) reclassified from accumulated other comprehensive income (loss) for net losses on available for sale securities for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) (8,177) (493) (326) Gain on sale of loans and leases 355 — — Loss on foreclosed real estate (19) (6) — Other income 1,494 261 8 Total non-interest income 184,525 172,172 100,770 Non-interest expense: Compensation and benefits 109,044 88,728 61,675 Refund transfer product expense 11,750 11,885 8,648 Tax advance product expense 1,817 3,241 — Card processing expense 26,283 24,130 22,263 Occupancy and equipment expense 19,740 16,465 13,999 Operating lease equipment depreciation expense 5,386 — — Legal and consulting expense 15,064 8,384 4,824 Marketing 2,674 2,117 1,972 Data processing expense 1,226 1,449 1,334 Amortization expense 9,641 12,362 4,828 Intangible impairment 18 10,248 — Other expense 25,589 20,654 15,105 Total non-interest expense 228,232 199,663 134,648 Income before income tax expense 57,410 55,150 38,822 Income tax expense (Includes ($2,330), ($185), and ($118) income tax benefit reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) 5,117 10,233 5,602 Net income before non-controlling interest 52,293 44,917 33,220 Net income attributable to non-controlling interest 673 — — Net income attributable to parent $ 51,620 $ 44,917 $ 33,220 Earnings per common share (1) : Basic $ 1.68 $ 1.62 $ 1.31 Diluted $ 1.67 $ 1.61 $ 1.30 (1) All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.