Meta Financial Group Inc. (doing business as Meta Financial Group) is the holding company for MetaBank and MetaBank West Central. MetaBank is a thrift with four market areas: Northwest Iowa Market Brookings Market Central Iowa Market Sioux Empire Market; and the Meta Payment Systems prepaid debit card division. MetaBank West Central is a state-chartered commercial bank in the West Central Iowa Market. Meta Financial Group Inc. has a market cap of $58.8 million; its shares were traded at around $21.2499 with and P/S ratio of 0.8. The dividend yield of Meta Financial Group Inc. stocks is 2.3%. Highlight of Business Operations: As of March 31, 2009, the Companys assets grew by $133.2 million, or 17.6%, to $889.6 million compared to $756.4 million at September 30, 2008. The increase in assets was reflected primarily in increases in the Companys mortgage-backed securities and to a lesser extent in total cash and cash equivalents, offset in part by decreases in the Companys investment in federal funds sold, investment securities available for sale, net loans and loans receivable and bond insurance receivable.
Total cash and cash equivalents and federal funds sold were $16.9 million at March 31, 2009, an increase of $8.7 million from $8.2 million at September 30, 2008. The increase primarily was the result of the Companys excess liquidity due to an increase in deposits, primarily due to seasonal deposits at MPS. In general, the Company maintains its cash investments in interest-bearing overnight deposits with various correspondent banks. Federal funds sold deposits may be maintained at the FHLB of Des Moines or various commercial banks, including, but not limited to the following: CitiBank, JP Morgan Chase, LaSalle Bank, M&I Bank, BNP Paribas, Bank of America and Bankers Bank, all but one with assets in excess of $1.0 billion. At March 31, 2009 the Company held $216,000 in federal funds sold.
The Companys portfolio of net loans receivable decreased $8.6 million, or 2.0%, to $419.3 million at March 31, 2009. This decrease primarily relates to a decrease of $17.6 million in commercial business and agricultural operating loans due to pay downs and transfers to other repossessed assets and an increase in the allowance for loan losses of $5.5 million primarily related to the seasonal tax business line. Offsetting the above was an increase in commercial and multi-family real estate loans of $13.6 million.
Total borrowings decreased $14.2 million, or 9.6%, much of which is due to the influx of deposits at the end of the quarter, from $147.7 million at September 30, 2008 to $133.5 million at March 31, 2009.
At March 31, 2009, the Companys shareholders equity totaled $47.1 million, up $1.3 million from $45.7 million at September 30, 2008. The increase was related to 2009 year-to-date net income (see Results of Operations below) partially offset by the payment of dividends on the Companys common stock and an unfavorable change in the accumulated other comprehensive loss on the Companys available for sale portfolio. At March 31, 2009, MetaBank continues to exceed regulatory requirements for classification as well-capitalized institution.
On the basis of managements review of its loans and other assets, at March 31, 2009, the Company had classified a total of $37.6 million of its assets as substandard, $4.8 million as doubtful and none as loss. This compares to classifications at September 30, 2008 of $15.8 million as substandard, $88,000 as doubtful and none as loss. As of March 31, 2009, $19.9 million out of a total of $37.6 million of substandard assets is attributable to the trust preferred securities identified above. See Note 9 to Notes to Consolidated Financial Statement.
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