CASH - Earnings call transcript Q3 2018 | Pathward Financial, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Meta Financial Group Third Quarter Fiscal 2018 Investor Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference call over to Brittany Elsasser, Director of Investor Relations. Please go ahead.

Brittany Elsasser

this to results call quarter for XX, released welcome discuss webcast ended and XXXX, financial our the earlier you, Meta’s and conference to June Thank afternoon. fiscal third

the release CFO, Additional objectives information, on reliance website We well differ Glen Hanson; Tyler place risks actual generally today. XXXX. Meta Crestmark of not of before Herrick; metafinancialgroup.com. to Goik, be that at Executive investor these you on Securities for those J. some may Chairman CEO, and or to prepared call cause harbor President, be as President our today contain goals. are and provisions as be statements up uncertainties operating and future Mick Reform remarks Company may currently the statements, outcomes we identified statements open subject Haahr; including which found presentation, Vice may earnings sharing the will call Brad Today's undue from and to safe President questions. including caution the or as subsidiaries, pursuant forward-looking results statements, describing of related Act forward-looking forward-looking made which the These its Litigation could anticipated and materially to that the or discuss Private otherwise plans, we company's to are

see the its Securities XX-K recent the about factors forms other Commission. Meta's most the results, that company's information Exchange with further please and affect and filings For and filed quarterly could annual XX-Q and on reports future

any forward-looking company its on are as which only behalf of to update of any on speak statements they Forward-looking obligation made. disclaims Meta expressly or date intent the or statements the CEO, new At time, to subsidiaries, a for the Haahr. other result would any events of reason. or call I like over this turn Tyler information, changed to whether future circumstances, as

J. Tyler Haahr

today’s us thank call. to everyone earnings and Brittany you, joining you on Thank

success continued model. the pleased diversified very on We are and financial services Meta’s differentiated with highly

last his partners quarter. or As total rigorous efforts loans, Meta by several loans grew revenue business, around to work the third income management non-interest revenue quarter non-interest same year, their quarter risk gross our maintain and income, to meaningful to for earnings prepared XX%, These program record third XX%. our remarks. discipline by interest on GAAP teams $X.XX levels. Glen underwrite. in interest Meta and expand elaborate grew total share than diluted We new paid more X% per off by in net deposits, the implement despite Compared innovative will $X.X net charges further reported million, and by of income income XX%, that and

growth with quarter of continued The investments earnings management to Meta. balance We need appropriate also third the to recognize these of reflect investments expense. non-interest the support

since year, XXXX even for earlier As so in opportunities more leverage this we expect and XXXX. we've accelerating operating said in fiscal fiscal

third of to teams our As lender, the Crestmark national our fiscal progress continue Bancorp. great commercial closing growth toward strategy we the quarter also during acquisition organic made execute

and shareholder bank approvals X, close transaction August fiscal the the regulatory on we necessary expect third all quarter and During obtained to XXXX.

existing strategic while division. We platform, selling offering combined its with the Lending been complimentary the and deposits flexibility funded by has that provide also National further fully Crestmark’s finance this when are comes highly Crestmark expect Commercial company's for opportunities transformational given balance will believe historically provide access We sheet, it saleable. deal will deal to to and our managing cross insurance loans Meta commercial premium wholesale

of and Upon well categories. months work a at us With as Executive efforts as Crestmark’s He the more gather be four first of years the with Since as of of Mick before foundation join and greatly. met progressed, has assuming will I've pipeline people Officer that efficiently teams to in to and National we next new XX closing. for we see President have afternoon Mick in to him how President invited business, opportunities division. order the joining last members expect Meta in a also Operating transaction integration Crestmark Crestmark his product to anticipated for Goik. to this the on XXXX. closes expected credit, in and prepare Crestmark’s strong various pleased been we underwriting, banking loan Chief will close division Finance understanding an us Commercial Crestmark and you week and very MetaBank served be the We the years development. transaction integration. give be as to Commercial team approach Crestmark of the the Lending seamless of next extremely with effectively through detailed new business After many Mick through the Vice brief and Crestmark and we Financial than will President ranks clients rose Meta’s of us update Mick new week's Crestmark’s has his that outstanding and closing seven one Crestmark’s Officer impressed current in mining role experience as particular, over continue National Chief commercial

Mick Goik

of of everyone. to becoming company. small to medium more At and record innovative Meta part family growth Thank making excited On long could we're afternoon it built Tyler a very be mission have and Crestmark this our profitable we of businesses. help you, by a joining to sized and Crestmark be good not behalf proud

Meta’s. National access as significant business are succeed. is believe our geography they are revolves most a of and or no around as their helping the Crestmark, we culture higher to Lending immediately entrepreneurs business For On capabilities, our benefit of solid legal serves, for limits. well match should work operators behalf its them Crestmark’s world Crestmark business entrepreneurial capital, low and Commercial and Meta’s their lending cost funding life's matter from industry

on are and in business to and from lifecycle, June enterprises increasing approximately from help between, gross is for expertise in At flexible pride the working a lease outstanding capital and everything variety creative products. to XXXX positioned Crestmark this approximately. solutions sell organizations total of balances or on of quarter We combined they access working Yields need, who loans Crestmark leases portfolio helping to other matter ourselves businesses to well to matured where grew XX% XX, Crestmark’s XX, at will a businesses were loan capital transaction services to and share through the startups We XXXX. turnarounds, company. believe they $X.XXX across myriad also the billion, provides succeed. opportunities June the no provide the to provide talent them December and

factoring the were Yields government-guaranteed diversified lease Sorry approximately on and Crestmark’s in lending, the which about extensive for that. loan from businesses portfolio we equipment provide gross financing, June asset-based XX.X%. operate. lending, and quarter offerings

greater more. flow the also lending asset-based which approximately receivable, cost to with an Asset-based businesses eligible of and and effective business. XX, and offers lending of Many provides and equipment. At capital. a need on demands, XXXX a obtain It Crestmark’s cash factoring to Crestmark had companies accounts cash the business inventory working immediate than provides other aggregate operations line support seasonal offers machinery, fast financing methods of growth company's day-to-day credit fund way of balance $XXX many to June availability based receivables of and a is loan million.

$XXX business an June had As loan million. aggregate of Crestmark’s XXXX balance factoring XX, of approximately

Crestmark dedicated growing under-served. has Crestmark niches SBA over one asset line government-guaranteed or the business have is past certain SBA Lender three loans. has either Another USDA. experienced to in loans, is the team are that ways through Preferred is we and SBA expertise been years an This the of providing developed an

equipment works guaranteed had types ticket $XXX lease, United or our leasing with their have vendor of programs Crestmark part manufacturers. team a finance, in As the of acquire XX, customers. fixed Crestmark Crestmark of IT today's aggregate most approximately equipment vendors had business an between. At June aggregate approximately equipments to Crestmark loans a with million. from solution rate sales balance market, equipment equipment to to June throughout sales hardware, to XX, leasing Crestmark’s million. States iron ranging where an financial we businesses to $XX directly balance leasing provides for also one everything solutions government in yellow various multiple and XXXX flexible works provide financing small finance, Crestmark create from team of Also

medical debt loan June approximately XX, million. product patients In This loan medical hospital offers organizations consumer guaranteed healthcare their an loans. aggregate flow. business to $XX consumer options of to reduce cash pay addition, bills, friendly, simple patient a Crestmark At and accelerate Crestmark’s provides balance flexible while providing had way bad

XXXX, grow segment platform. it for excited opportunities look I'll to late in this for credits. believes leaseback of federal Commercial opportunity the is and for the of across are business. the five forward structure us. financing a With forces Meta also Lending totaling good Since alternative $XX Crestmark has Over the and years we pleased million that performance deals cell National for have to with into back projects expanded tax investment qualify Crestmark inception that its We sale its joining completed energy. XX its with solar in growth significantly Crestmark and ahead to fuel is project turn there past Tyler.

J. Tyler Haahr

announced. out you, growth was we financial remain when in companies opportunities like laid and that we the I'd the Mick. deal combined Thank upside of to originally add confident that the

XXXX to merger-related to deal the excluding continue We that will expenses. earnings be immediately accretive anticipate

Now the and Brad over to provide I’ll a our President, call brief to turn payment Commercial National businesses, on update Meta's now Lending Hanson.

Brad Hanson

Thanks Tyler.

cost announced capacity, Cash in identifying Global hiring in shared month third loan project product two third-party net continuing through fiscal opportunities extension our services and tax During quarter consolidating in key while and relationship development efficiencies extending the for software business was development programs unit. piloting and with and agreements expand resources successful our Last to and we efforts throughout our our team key operational and several Card management systems new loan of operations our operations, savings XXXX. consumer the

by As part management with brand supporting and of providing wallet. paycard solutions, instant of a financial paycard our begin will innovative leading widely ADP, like digital pay, new relationship provider we tools, this

prepaid negotiated technology more virtual companies. extensions settle health longstanding relationships, to on one we've of behalf insurance who and company one addition, provider card uses with In company two claims

to our of partners harder provide continuity our best-in-class relationships sponsorships proud are we than long relationships We support have longstanding with are the ensure into these expand and and very ever future. the of to capabilities working

new Lending Consumer two since and quarter, Services, third or announced the to January customers facilitate consumer of to We and launce Credit Health during Lending pilot Liberty fiscal Liberty provide have programs Lending settlement. programs XXXX, debt launched MetaBank three National HCS.

medical marketed their consumers loans and procedures. selective help providers by While finance HCS

agreement billion over originate up installment to a companies largest addition, three-year $X the one In negotiated loans the with term to of mortgage consumer the nation's we've contract. of of

launch of during party to program while fiscal fourth this strict to financial of structure strength We leverages and the management. quarter. and relationships loan over marketing, portfolio our MetaBank efficiently expect grow servicing, control underwriting risk The compliance these each maintaining consumer allowing

During the programs. consumer platform quarter, our $XX from national in million Liberty originations Lending and HCS had lending

from to $XX has to the quarter mitigating our We scale to believe create generating resources consumers, installment billion managing of new We program, capabilities, next and total their service fiscal I in expect decision that programs needs the MetaBank sophisticated science address and while compliance and that including underwriting the these partners years, fourth to needed over two the and over and risk, earnings. capacity the experience programs earlier. the customer million $X.X originate the of up three a mentioned

In short-term this, credit in leader addition to a – to is years consumers. we've providing underbanked experience XX with CURO

to We product in of product as a Meta and well balance credit fees. to flexible with expect costs of MetaBank timeline our borrow to sheet. new first repayment, through CURO allow designed will years innovative an be hold piloting expect we receivables three line later up this transparent consumers that million borrowing $XXX quarter underbanked for in to this controlling program, as on the also In

the to credit Accordingly, fiscal stress up to scenarios loan new generate includes provisioning are reminder, first each modeling future process earnings, higher three require is in XXXX in of ensure the periods. financial up enhancements start to order agreements also the during and expenses, and program. over legal announced ramp severities of As require loss months expected of appropriate to a the new This investments compensation, six programs various meaningful present. cost, in each upfront primarily

continue on to the up future our of and expect capabilities resources as programs become efficient more We and boarding ramp expand.

As of partnerships are these in and we products a significant increase additional launched, ramp up, expect consumer the programs programs and over credit volume time.

anticipate intend fiscal fiscal we more in of earnings continue XXXX, benefits XXXX. from cycles the loan some programs programs originations, the and these in to Given we which positive beginning earnings the in to controlled to these material and products, grow manner from

successful mean outsourcing compliance for in and tax synergies functions silos, and XXXX to quality, of consolidating experienced increasing consolidating of management requires two eliminate rush simplification, we Throughout a businesses. turned operations, resources significant talent, hiring platforms, and have also the of first are in to appropriate consistent organization throughout we our operating better more but operations of to company. resulting service costs customer service effort effective will management dissipates, the quarter and and the As expected technology attention by looking operating lower another beyond. the working increase capacity opportunities processes, management training our season This XXXX, use investment XXXX our and the fiscal technology tax of quarter the third project

companies in process New our and experienced we software management agile hired us to and and large accelerate the is project expand have capacity. in consultants help transformation agile management implementing

significantly our efforts revenue creation providing experienced of members short-term in these effectively expanding Once efforts We and to leading results the to increasing product new relationships to our growth noticeable market. increase team partner to are XXXX capabilities expect of to support development have improve overhead for platform complexity, valuable but bank. viability talent also by in These solutions see long-term us improved opportunities and bring hiring opportunities we more business. the manage scalable the in again, help a

to our the financials. a to our Glen turn to consolidated CFO provide of like I'd review over brief Now call Herrick,

Glen Herrick

Brad good afternoon everyone. you, Thank and

earnings to As compared On prior comments are the of million fiscal quarter in fiscal pleased $X.X the notice third meaningful expenses the in quarter, third Diluted compared to initial third associated a operating of XXXX. million in expense the in quarter per the you the third a we of period. during with reflects recognized core result quarter disclosed basis including Reported of XXXX. $X fiscal XXXX provision XXXX, previously quarter from ReliaMax insured the $X.XX in portfolios, heard contract. we expense company's an our $X.XX the vendor of net received expenses, year student reported GAAP early $X.X third $XXX,XXX and merger which previous of termination related insolvency of million of related with million a Surety, loan $X.X to a our fiscal share earnings in were income purchase

and compensation million GAAP expense. amortization earnings In addition, of $X.X million $X.X also of included officer non-cash assets of executive intangibles a

currently a quarters portfolio, Importantly, other the honored asset the as year insolvency of the this to easily assets estimate each amounts portfolio. but a any and of provision timing of include a cannot sources of we we fund, such expense believe required. $XXX,XXX the be well expect and further insurers’ of provisioning is next a We not ultimately insurance The loan may of from potential thus take on reflection recovery. liquidation state of underlying portion of any Absent as student quality we it recover expected while recovery, longer guarantee could five premiums. in to or additional sources substantial predict the recoveries to $XXX,XXX the loan ReliaMax, provisioning recoveries in related that

insurance community our strength portfolio, of consumer bank and to loan utmost and mix, earning XX% due June at premium particularly bolstered with year underwriting $X.X top growth. XXXX, be estate by increase up from real of where same and year-over-year income practices grew and the XX% fiscal an portfolio continues million asset last to an in risk $XX.X an finance residential of at over of million our line, mortgage up interest Looking was third revenue totaled increase driven year XX, a continues in primarily fiscal billion in management commercial commercial XX% loans. the the for quarter. increase along totaled XX% a quarter strong increases The prior. discipline importance be Meta. by in Net XX% period of XXXX, significant and our here the increase was to improved a loans interest $XX.X third Net Growth

assets metrics in Outstanding quarter. you to discussed were just at non-performing XXXX. previously. such fiscal we XX related total we've maintain assets June Non-performing NPAs quality third our points a basis XX, of agricultural loan relationship with asset strong very As that represented primary

We principal, receive relationship. continue that interest from to expenses related all expect note to and

year, increase quarter this reserve $X.X approximately past of continue to provision quarter period the XXXX. Meta’s lending that activity tax advance in the half given up third refund services season. significant in XX, views of tax calendar related filing XXXX the during Excluding XXXX December the the the shall third ReliaMax, of a growth of insolvency Meta’s throughout Management of roughly million of loss to Tax the repayment payer the tax provided the of expense million season third million $X.X loans quarter was overall supports the charge refund partner through Company's so extends positively, compared advance provision XXXX, $X.X XXXX, loans.

to we core the Turning raising deposit view our environment. a particularly low-cost rate to banking as a base differentiator continue growing in funding, in space,

cost institutions. XX average basis cost relative funds for funds to sized increased the Meta’s our similarly of advantage in to we fiscal points third the of maintained While financial quarter, average

of to the tax Our was just of the to X.XX% points wholesale compared period growth. support reflect last organic alongside a base, of on fiscal X continued wholesale was XXXX net margin third deposits basis large, Meta’s deposit points Increased in deposits quarter basis year basis. during excluding loan same bearing deposits. interest cost equivalent Meta’s Meta’s XX funding stable, and quarter costs strategic the utilization non-interest

government-related asset-backed floating-rate, During and sold securities. them tax-exempt longer Company the term the securities with replaced quarter, municipal

This in to slight portfolio the securities in overall Crestmark this in Because will and expect portfolio portfolio prepayment to decrease likely to also better benefit X% term excluding succeeding grow, refund in result yield, a transfer quarter increased Crestmark continues pending to expanding effects in of Income rates investment NIM immediate also in consumer the closing of yield $XX.X continue a the the for MBS we anticipated a of growth income when and fourth speeds fiscal some accelerating the in expected the that but timing in lower delays level slightly lending. due the We Non-interest acquisition and fourth from of are of slightly of the and quarters relative quarters. XXXX, in to year-over-year fiscal NIM third reduced municipal increase. XXXX fees quarter anticipation part addition shifted in payment into of processing increases mortgage-related to anticipate as to overall short IRS year-over-year quarter. million. in to overall product the XX% as follow quarter our of decrease in revenue flowed the seasonal into the April our

of While primarily year, million decrease deposit fee This $X.X third last related to also change income quarter increase grew fees card transition geography to in to income. fiscal of contributed some the card income. statement the the a fee compared fee deposit slight was income to

we to financial or technology $XXX,XXX by in compliment, strategic income April earnings We to as fiscal innovation investment outstanding mentioned $X million to do growth. LLC, to residual and growth Capital XXXX investing be owned our XXXX to companies. early-to-mid-stage income this de technology total additional was serve Through Meta fee subsidiary in an has companies, release card comment expect of and I help commitments. capital established alternative and XX, on addition, wanted a also financial venture in wholly This In Meta we throughout an moderated novo indirect quarter. in and arm, in MetaBank formed in our with drive of direct primarily briefly M&A which invested June corporate investments fee by XXXX. Capital year declining consider

been line While investments the see The technologies. costs to thus emerging compensation which compared in our to period not have instances costs hires was related diversify and a year, in new we excluding our driver and acquisition, this million $XX the of in same year-over-year and to Crestmark consumer made further pending Total in additional to to to XXXX some pleased the in increase far and XXXX material last initiatives reflects the year. other a support have fiscal and $XX.X quarter primarily support million lesser lending opportunities merger expansions. related and we earnings, business expense degree operating with prospects evaluated are third to of national pursued

possible. to on invest to we our company, are expense focused we growth support continue wherever As the of management

us we in are to divisions. efficiencies We continue example, integrate improved in over results turn take quarter for strong comments opportunities tax our call continue as to fiscal For XXXX third we XXXX. enhanced financial performance so expect to and for leave tax questions. continued Tyler that in fourth in the to Overall, fiscal beyond. more your well-positioned our we even deliver efficiencies before I'll With any we leveraging quarter space closing back believe and fiscal the

J. Tyler Haahr

Thank I and Brad made and continue you, comments and generating from high participation the pleased and to business national fee our platform annuity-like banking the our services across Board with operations. contributions for and tax lending meaningful extremely payments lines, our be by and to today. of Meta’s community businesses Glen, Mick each performance your

products open together strong any I for the diverse vision and questions. services our That and a – that are a Brad, financial be Operator, questions. with will Glen answer available prepared line that of please very and concludes of in growing help suite much for remarks. We achieve everyone. more any our help position to financial inclusion us

Operator

[Operator Michael with question Perito comes Instructions] Certainly. Our first from KBW.

open. Your now line is

Michael Perito

evening thanks the questions. taking guys, for Good

J. Tyler Haahr

to Happy Mike. to it. from Good you do hear

Michael Perito

remarks. once prepared rate assuming gave X. like expense quarterly the in, – the added what you I just to be you August kind to color us quick in could a the just I Crestmark give all latest is may be update if on curious on gets But appreciate run deal the good deal. the the wanted of closes

Glen Herrick

is this Mike Yes, Glen. hi

those pro growth in with to that good along and think the financials metric I a disclosed proxy levels. forma what from use some was merger be for the would

Michael Perito

Okay.

Glen Herrick

given growth the would say on opportunities – depend today pin a little the have the to there's down hard it's to and will amount that grow will portfolio once two variable come I continue fair that loan a be to And how companies together. fast

Michael Perito

expense of how much growth, guess variable on like I is their cetera? et depending

Glen Herrick

We fair but are of of some with amount haven't come disclosed expense, a fixed at there that expense certainly the this There's classes variable certainly loans. collateral point. that along different

Michael Perito

then And you – just few probably the Okay. up on I'm – your because where how of provision, but obviously right. thinking whole about you’ve provided pieces, there's here, it to been specific is the just Crestmark, a pretty big step historically

thinking even are I which, kicks season of guess to, reserve expect going to at So on for grow? moves But – which six incremental continues the before in. provision kind mean this rates have more, basis least next do coming portfolio how then quarters you as and what provisioning lowered it around I I a you the guys percentage is on on, deal about know has it a you bit Crestmark

J. Tyler Haahr

it the Well one is are levels – point? now reserve number that what’s Glen

Glen Herrick

something Yes that. like

J. Tyler Haahr

it's little over a Yes X% now.

And so charge-off rates rationale what be. it gives basis than have mean I of you the behind kind again to historically XX we been expect points. the

Michael Perito

just net income. interest question Okay. last on me And from then one

it the on. well-positioned NII back And of some sheet that needs I forward, to at a year you of To and the reality business that the company, all sensitivity or because going away of ate think was guess or balance quarters curious is a so asset I I'm are prepaid of me hovered this range. higher well-positioned, a the guys any this to loans rates was that if base margin And or – kind the kind still point? million guess, but six think, I looks of half deposit the But $XX rates. and had is with kind the in is the that's it of so, tax that’s we're expectation funding all the go move that we I for has for I of that all come in last in like the there $XX and felt temporary kind million to really up has obviously case.

J. Tyler Haahr

on one got to So Tax the reflect you of Act. back things is the

and have muni X.XX%. would was it quarter the large Act Tax been the so because So, Without X.XX%. portfolio, we NIM have the this

from if has where points was we on So XX, almost frankly the books up points the you because the three by NIM loans basis gone have two basis quarter. almost also the more or it XX factor year, points end last tax again at basis in of

very So wholesale the short gone that tax if points, to again itself two is figures nature. in then And are funding, three loans points from loans the those again up difference have Act excluding and obviously XX X.XX%. Act NIM with Tax in actually basis X.XX% also the tax points, with and loans to XX more higher basis in another are the Tax Crestmark apples-to-apples the excluding has the has much the but round yields, an gone we will basis on basis basis points, up

the early you the up go in portfolio on So saw year. from Crestmark yields the

higher that. I a and limit, little deals we up. will opportunity be add AFS, up. saw interest administrative be than deals So legal lower both while getting lending that do same, a yes higher going are that profitability there's move like for the to quality be rate be add cost Frankly because that the nature. stated will we larger on of that consumer will will lot will roughly new what like to to very the those with will with a short will the deals, do, their larger they're And term again lending some NIM continue higher to smaller Crestmark still will frankly quality drive there of current our and just probably, we it lot say deals. But that. doing we to feel bigger would instead in for deals lower

curve So it up, front of of well when cost. will moves move yields the the as end some up finding the wholesale as the

NIM. we year-over-year the if And margin. are have opportunity up basis in we you compare on yes fact we think XX the So still apples-to-apples, on points

Michael Perito

to it But Crestmark as once somewhere is probably bips, margin to in it's full decent quarter’s it's thinking around north deal, worth get of that about? you sure add XXX still to the and the – a I number theirs, of Great, moves bit. all I'm a to going a still be kind mean

Glen Herrick

Mike. correct That's

Michael Perito

thank alright, for questions. my you guys Okay, taking

Glen Herrick

Thanks.

Operator

question [Operator FBR. Moss comes you. Instructions] Riley from Our Thank with next Steve B.

open. is line Your now

Steve Moss

Good afternoon guys.

Glen Herrick

afternoon, Good Steve.

Steve Moss

to for June correct want my the Crestmark billion, is balances to about On balance here to of acquisition looks $X.X like kind as of if just it's loan close check math XX?

Glen Herrick

that's Yes, correct, it $X.XXX was billion.

Steve Moss

Okay.

could little has and growth a slow about seeing will there that forward, the growth obviously a bit is how strong, talk little bit? you're just it or been So down going sustainable

J. Tyler Haahr

Yes, when in months rates. on We're some the call, the with there, out assumptions assumptions out on we the We're the acquisition we had rates. both with correct we as the that the not saves, did said respect very put but there to cost put with growth I numbers you're guidance comfortable, they a six growth the to there good higher to prepared first put the year.

Steve Moss

timing further to that And tax with then good. a regard the you on you the into plan cost just get some could business, maybe saves quantum sounds in that? little Okay, on go

J. Tyler Haahr

Yes sure Steve.

in businesses. conference we smoothly we've acquired our the given you we out been a that yet saw on additional it I That's consider hope and synergy. the talking get about, specific I guidance combining prepared from first at synergies our upcoming make sure you updates these they of think divisions quarterly we're to about not that on next tax since operate talked but future guidance the But all call. also things shot seasons, was said, platforms provide in the around provide call we've will actually once fall we might numbers to various that strategies, through there, tax or the go-to-market technologies, to how

Steve Moss

then and asset-backed is that Okay, secured that's in receivables press just if wondering there? type cover of duration there of loan release, what the and the kind you on disclosed being the was

J. Tyler Haahr

Yes, loan. short consumer term

Steve Moss

Yes, what loan?

J. Tyler Haahr

and [indiscernible]? value, to loan what Yes

Steve Moss

timing? like for that going be kind is quarter be longer business hopefully fair going It's just it an hanging is to I guess time a period for then, literally will a way, of the or it’s around

J. Tyler Haahr

I frankly the loans. a this No, consumer we mean portfolio existing earnings we're to building it’s way up as are while of viewing enhance

another again going to year. that implementing about talked are lending program this So program, we we’ve another be consumer

again there we're talked a to for so the costs, $X three. the are as And we $XXX,XXX And last that something first quarter for presumably upfront proxy about one that today. that close million those or announcing

be have it which start-up while is to portfolio continue will again not we be up, – portfolio and that as assets other So something there the again portfolio other out with at mean portfolios the cost earning the again opportunities as again first by that the program is and portfolio But securities purchase consent books, secured, $XX ramp essence well. or we very as that credit might sheet that over offset enhancements, that to putting that point potentially than try give was a that Consumer on – well. will higher we doesn't it up, significant balance those would the associated And to have, us this that that of it flexibility time. some would again puts And you deal, buying portfolio, well go portfolios pilot individual in we’ve earning million. Lending might significantly by portfolio continue the

Steve Moss

very Okay, much. thank you

Operator

this you. question-and-answer the queue this showing now the session. to I'm Thank Haahr. in Tyler questions call turn would I no concludes CEO, And back the at further time. And

J. Tyler Haahr

strong Crestmark our fiscal quarterly you October acquisition again you finish evening. a on to at forward Thank investor thank a look year, you. of And short you updating who to deliver our have participated Thank We're call. work our while. a the investor everyone and in today. I call great XXXX hard of again just close transformational Meta's in including to

Operator

you thank This have and Ladies in and gentlemen, program Everyone disconnect. does a participating for you may all day. today's conference. great your conclude

Pathward Financial (CASH) 26 Jul 182018 Q3 Earnings call transcript