Meta Financial Group Inc. Reports Operating Results (10-Q)
Meta Financial Group Inc. has a market cap of $106.6 million; its shares were traded at around $34.6 with a P/E ratio of 37.6 and P/S ratio of 0.9. The dividend yield of Meta Financial Group Inc. stocks is 1.5%.
Highlight of Business Operations: The Company recorded net income of $3.5 million for the 2010 fiscal third quarter which was primarily due to increases in card fee revenue of $2.5 million, mortgage-backed securities interest income of $1.7 million and lower provision for loan losses of $5.7 million. Additionally, the Company recorded a $0.5 million net gain on the sale of membership equity interests in the 2009 third quarter as compared to none in the current fiscal quarter. The MPS divisions credit business lines was a major contributor to the increase in revenue in the first nine months of fiscal 2010 with income tax-related revenue accounting for approximately one-third of the increase. Offsetting the above was an increase of $3.6 million in the Companys provision for income tax expense.
The Companys portfolio of net loans receivable decreased $18.0 million, or 4.6%, to $373.6 million at June 30, 2010. Commercial operating, commercial real estate, and one- to four-family residential real estate loans decreased $5.4 million, $21.0 million, and $6.0 million, respectively. These decreases were primarily offset by an
Other assets decreased by $1.8 million, or 15.0%, to $10.0 million at June 30, 2010. This decrease primarily relates to a $4.0 million change in the Companys deferred federal and state taxes from a $3.4 million deferred tax asset to a $0.6 million deferred tax liability which was offset in part by a one-time prepayment in December 2009 of $3.9 million with respect to the Companys prepaid FDIC assessment. The change in the Companys deferred federal and state tax from an asset to a liability was primarily due to a positive change in the unrealized gain on its securities available for sale portfolio. See Note 4 to the Notes to Condensed Consolidated Financial Statements.
Total deposits increased $87.8 million, or 13.4%, to $741.5 million at June 30, 2010. The Company continues to grow its low- and no-cost deposit portfolio. Total MPS-generated deposits were up $88.8 million, or 21.0%, at June 30, 2010, as compared to September 30, 2009. This increase results from growth in prepaid card programs. Retail bank checking balances were up $8.1 million, or 22.4%, at June 30, 2010, as compared to September 30, 2009. Offsetting the above increases was a $4.5 million decrease in certificates of deposits primarily related to a decrease in public funds and a $5.4 million reduction in money market account balances.
Accrued expenses and other liabilities increased $5.8 million, or 48.0%, to $18.0 million at June 30, 2010. This increase was primarily related to a change of $3.0 million in liability for federal and state income taxes. At September 30, 2009, the Company recorded a receivable of $2.1 million as compared to a liability of $0.9 million at June 30, 2010, due to an increase in the Companys taxable income as compared to the prior fiscal years taxable loss.
On the basis of managements review of its loans and other assets, at June 30, 2010, the Company had classified a total of $24.9 million of its assets as substandard, $4.6 million as doubtful and none as loss. This compares to classifications at September 30, 2009 of $30.8 million as substandard, $10.4 million as doubtful and none as loss. As of June 30, 2010, $20.4 million out of a total of $24.9 million of substandard assets is attributable to the trust preferred securities identified above. See Note 9 to the Notes to Condensed Consolidated Financial Statements.
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