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SEC Filings, Earing Reports, Press Releases
Meta Financial Group Inc. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: December 21, 2012 05:06PM
Meta Financial Group Inc. (CASH) filed Annual Report for the period ended 2012-09-30. Meta Financial Group, Inc. has a market cap of $130.4 million; its shares were traded at around $23.69 with a P/E ratio of 4.1 and P/S ratio of 1. The dividend yield of Meta Financial Group, Inc. stocks is 2.2%. Meta Financial Group, Inc. had an annual average earning growth of 4.4% over the past 10 years.
Highlight of Business Operations:The Company has recently experienced considerable growth, having increased its assets from $1.3 billion to $1.6 billion during the fiscal year ended September 30, 2012. Funded primarily by growth of no- and low-interest bearing deposits, the proceeds thereof have been invested primarily in municipal bonds, mortgage-backed securities (“MBS”) and investment securities available for sale. While the Company believes its asset quality to be good, particularly in comparison to most banking institutions, the Company s asset growth, if continued as expected, will generate a need for higher levels of capital which management believes may not be met through earnings retention alone. In that respect, the Company recently completed two private placements of its common stock which raised $12.8 million and $33.3 million, net, respectively, in additional capital, all of which qualifies as Tier 1 capital for regulatory purposes. There can be no assurance, however, that the Company will be able to continue to access sources of capital, private or public. Failure to remain well-capitalized, or to attain potentially even higher levels of capitalization that could be required in the future under regulatory initiatives mandated by Congress, our regulatory agencies, or under the Basel accords, could adversely affect the Company s earnings and prospects.
The full compliance burden and impact on our operations and profitability with respect to the Dodd-Frank Act are currently unknown, as the Dodd-Frank Act delegates to various federal agencies the task of implementing its many provisions through regulation. Hundreds of new federal regulations, studies and reports are required under the Dodd-Frank Act and not all of them have been finalized. Although certain provisions of the Dodd-Frank Act have been implemented (such as the transfer of regulation of federal savings banks like the Bank to the OCC and the transfer of savings and loan holding company regulation to the Federal Reserve), federal rules and policies in this area will be further developing for months and years to come. Based on the provisions of the Dodd-Frank Act and anticipated implementing regulations, it is highly likely that banks and thrifts as well as their holding companies will be subject to significantly increased regulation and compliance obligations that expose us to higher costs as well as noncompliance risk and consequences.
Stocks Discussed: CASH,