Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.89 for the fourth quarter, a 7% increase compared to the linked quarter [4] - For the full year of 2025, net interest income improved by 2% compared to 2024, while the net interest margin declined by seven basis points [13][14] - The efficiency ratio for the fourth quarter was stable at 57.8%, with a full-year efficiency ratio of 58.7% compared to 58% for 2024 [16][18] Business Line Data and Key Metrics Changes - Loan growth for the full year was 6% compared to 2024, with a fourth-quarter annualized loan growth of 2% [10] - Fee-based income improved by 5% in the fourth quarter and 6% for the full year compared to 2024, driven by higher lease income and trust and investment income [15][16] - The provision for credit losses totaled $8.1 million for the fourth quarter, driven by net charge-offs and loan growth [6][7] Market Data and Key Metrics Changes - Non-performing loans grew nearly $4 million compared to the linked quarter, while criticized loans declined by $32 million [9] - At year-end, 98.6% of the loan portfolio was considered current, down from 99% at September 30 [10] - The loan-to-deposit ratio remained around 89%, consistent with the linked quarter-end and prior year-end [17] Company Strategy and Development Direction - The company is focusing on technological capabilities and has implemented state-of-the-art software programs to enhance operational efficiency [20][21] - There is a strategic emphasis on maintaining a neutral interest rate risk position and managing deposit costs [14][17] - The company plans to achieve positive operating leverage for 2026 and anticipates loan growth between 3% and 5% compared to 2025 [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, particularly in the commercial sector, despite potential payoffs in a declining rate environment [33][34] - The company expects to cross the $10 billion asset threshold in 2027 but has no plans to do so organically [23][24] - Management anticipates a slight reduction in net charge-offs for 2026 compared to 2025, positively impacting the provision for credit losses [26] Other Important Information - The company plans to continue investing in data provision and warehousing, new talent, and specialty areas within existing businesses [84] - The Chief Commercial Banking Officer is set to retire, with a successor already appointed [22] Q&A Session Summary Question: Margin guidance and accretion benefit - Management indicated that the accretion benefit for the full year is expected to be closer to five basis points [31] Question: Tax rate expectations - The tax rate for 2025 was around 21%, with expectations for 2026 to be in the 22% range [32] Question: Loan demand outlook - Management expressed encouragement regarding loan growth, particularly in commercial lending, despite some expected payoffs [33] Question: M&A environment and criteria - The company is focused on strategic patience in evaluating M&A opportunities, primarily within its existing footprint [43][44] Question: North Star Leasing performance - Management acknowledged a slight increase in charge-offs but remains optimistic about the long-term outlook for the leasing business [48] Question: Capital actions and share buybacks - Management confirmed ongoing share buyback programs and a continuation of the dividend rate [74] Question: Fee income growth outlook - Management discussed the challenges in the insurance market but remains committed to growth through acquisitions [81] Question: Deposit growth expectations - Management does not expect deposits to keep pace with loan growth, anticipating an increase in the loan-to-deposit ratio [95]

Financial Performance - Meta Financial Group achieved a GAAP net income of $44.9 million for fiscal year 2017, a 35% increase compared to fiscal year 2016[16] - The company's fourth quarter net interest income was $24.5 million, a 23% increase over Q4 FY 2016[12] - Non-interest income represented 65% of the company's total revenue for the fiscal year[16] - Card fee income increased by 49% in Q4 FY 2017, reaching $26.7 million[16] - Non-interest income grew 71% in FY 2017 compared to FY 2016[20] Balance Sheet and Loan Portfolio - Average assets for Q4 FY 2017 grew 25% compared to Q4 FY 2016, reaching $4.03 billion[13,48] - Total loans receivable increased 43% year-over-year[36] - Excluding purchased student loan portfolio, total loans receivable, net of allowance for loan losses, increased 30% over Q4 FY 2016, amounting to $274.6 million[14] - The company originated approximately $1.3 billion of refund advance loans for the 2017 tax season and anticipates originating over $1.0 billion during the 2018 tax season[10] Deposits and Cost of Funds - Average deposits for Q4 FY 2017 increased 37%, and average non-interest bearing deposits increased 14% compared to Q4 FY 2016[48] - Overall cost of funds for all deposits and borrowings averaged 0.50% during Q4 FY 2017, compared to 0.26% during Q4 FY 2016[17]