Financial Data and Key Metrics - Meta Financial Group generated revenue of 550millionandnetincomeof141.7 million, or 4.38pershare,forfiscalyear2021,representinga4920 million to 279million,an850 million for the quarter, with strong payments fee income and a 4milliongainonanequityinvestment[23]−Non−interestexpensegrewby25 million to 344millioninfiscal2021,withanimprovedefficiencyratioof62.530 million of legacy community banking loans and has agreements to sell an additional 161million,reducingthelegacyportfoliotolessthan8 million [16][17] Market Performance - Meta's payments fee income grew by 23% in fiscal 2021, aided by government stimulus programs [24] - The company expects community bank loan balances to be zero by the end of the first fiscal quarter of 2022, marking the successful conclusion of the first phase of capital deployment into higher-return assets [17] Strategy and Industry Competition - Meta's strategy focuses on optimizing earning assets, maintaining low-cost core deposits, and improving operational efficiency [11] - The company is well-positioned to continue generating value for stakeholders through its banking-as-a-service offerings and ESG initiatives [13] - Meta faces limited competition in the banking-as-a-service space due to regulatory requirements and operational expertise, with only a few capable competitors like Bancorp [54][55] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong pipeline in both payments and commercial finance, with expectations of double-digit EPS growth over the next three to five years [34] - The company is prepared for growth in the banking-as-a-service sector, with investments in technology and product stack to support future opportunities [26][32] - Meta remains well-capitalized, with a regulatory leverage ratio increasing to 8.7% from 7.8% in the prior quarter [28] Other Important Information - Meta completed a leadership transition, with Brett Pharr taking over as CEO and Anthony Sharett as President, while maintaining the company's corporate strategy and mission [10][11] - The company incurred 9millioninone−timeexpensesrelatedtotechnologyinvestmentsandCEOtransitioncosts,withexpensesexpectedtoreturntothelow80 million range in the first quarter of fiscal 2022 [26][31] Q&A Session Summary Question: Details on the 9millionone−timeexpense−Theexpenseincludedlegalandconsultingfees,contractorcosts,andstaffaugmentationtoprepareforgrowthopportunitiesinbanking−as−a−service[30][31]−TheinvestmentwasmadetohandleadditionalvolumeandwasnotrelatedtotheCEOtransition[32]Question:Growthexpectationsforfiscal2022−Managementexpectsdouble−digitEPSgrowthoverthenextthreetofiveyears,drivenbyastrongpipelineinpaymentsandcommercialfinance[34]−Paymentsfeeincomegrowthmaybedepressedyear−over−yearunlessadditionalgovernmentstimulusprogramsareintroduced[35]Question:Loangrowthandsupplychainimpact−Thecompanyanticipatesdouble−digitloangrowthinfiscal2022,withnosignificantsupplychaindisruptionsaffectingitscustomers[38]Question:Provisioningandcharge−offs−Provisioningisexpectedtomatchcharge−offs,withloweroverallprovisioningnumbersduetoseasonalfactorsandloangrowth[39]Question:Buybackstrategy−Metaplanstocontinuesharerepurchases,reflectingconfidenceinthecompany′sgrowthtrajectoryandexcesscapitalgeneration[51]Question:Competitivelandscapeinbanking−as−a−service−Metafaceslimitedcompetitionduetoregulatoryandoperationalbarriers,withfewcompetitorscapableofmatchingitsexpertise[54][55]Question:EIPdepositsandoptimalassetsize−MostEIPdepositshavebeenmovedoffthebalancesheet,withthecompanytargetinganoptimalassetsizeofaround6.5 billion [58] Question: Insurance recovery - The company received an insurance recovery related to a student loan portfolio, with one final claim expected before the state closes the case [60]