Meta Financial Group Inc. has a market cap of $48.7 million; its shares were traded at around $18.5 with and P/S ratio of 0.4. The dividend yield of Meta Financial Group Inc. stocks is 2.8%.
Highlight of Business Operations:The Company recorded net income of $1.2 million for the 2010 fiscal first quarter which was primarily due to increased MPS fee revenue of $4.4 million and a $1.9 million gain on sale of securities available for sale offset by an increased provision for loan losses in the amount of $2.6 million and an increase to non-interest expense in the amount of $4.3 million.
The Companys portfolio of net loans receivable increased $28.3 million, or 7.2%, to $419.9 million at December 31, 2009. This increase primarily relates to an increase of $48.7 million in MPS consumer loans partially offset by an increase in the allowance for loan losses of $5.2 million and decreases in commercial operating and real estate loans of $5.2 million and $4.2 million, respectively.
Total deposits increased $156.8 million, or 24.0%, to $810.5 million at December 31, 2009. The Company continues to grow its low- and no-cost deposit portfolio. Total MPS deposits were up $169.9 million, or 40.3%, at December 31, 2009, as compared to September 30, 2009. This increase results from growth in prepaid card programs and seasonal activity. Offsetting the above increases was a $11.5 million decrease in certificates of deposits primarily related to a decrease in public funds.
On the basis of managements review of its loans and other assets, at December 31, 2009, the Company had classified a total of $25.1 million of its assets as substandard, $10.7 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 December 31, 2009, $19.9 million out of a total of $25.1 million of substandard assets is attributable to the trust preferred securities identified above. See Note 9 to the Notes to Condensed Consolidated Financial Statements.
General. The Company recorded net income of $1.2 million, or $0.45 per diluted share, for the three months ended December 31, 2009 compared to net income of $673,000, or $0.26 per diluted share, for the same period in fiscal year 2009. The change in net income in the current period compared to the first quarter in fiscal 2009, was primarily due to increased MPS fee revenue of $4.4 million, a $1.9 million gain on sale of securities available for sale and an increase in net interest income of $1.1 million offset by an increase in provision for loan losses in the amount of $2.6 million and an increase in non-interest expense in the amount of $4.3 million.
Net Interest Income. Net interest income for the 2010 fiscal first quarter increased by $1.1 million, or 17.7%, to $7.3 million from $6.2 million for the same period in the prior fiscal year. Net interest margin decreased to 3.33% for the first quarter of 2010 as compared to 3.49% for the same period in 2009. Overall, asset yields declined by 81 basis points due to lower average yields in the investment portfolio primarily from a mix of assets shift to more government guaranteed mortgage-backed securities. Overall, rates on all deposits and interest-bearing liabilities decreased by 59 basis points from 1.40% in the 2009 quarter to 0.81% in 2010. As of December 31, 2009, low- and no-cost checking deposits represented 82% of total deposits compared to 76% one year earlier. The increase was driven by growth of $124.9 million in deposits generated by MPS as of the end of the quarter; as compared to one year earlier, this was a 27% increase.
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