Meta Financial Group Inc. Reports Operating Results (10-Q)
Meta Financial Group Inc. has a market cap of $88 million; its shares were traded at around $28.7 with and P/S ratio of 0.8. The dividend yield of Meta Financial Group Inc. stocks is 1.8%.
Highlight of Business Operations: The Companys portfolio of net loans receivable decreased $9.1 million, or 2.3%, to $382.5 million at March 31, 2010. Commercial operating, real estate, and one- to four-family residential real estate loans decreased $6.6 million, $11.9 million, and $5.9 million, respectively. These decreases were primarily offset by an increase of $27.2 million in MPS consumer loans. In addition, the allowance for loan losses increased $10.5 million.
Total deposits increased $125.6 million, or 19.2%, to $779.4 million at March 31, 2010. The Company continues to grow its low- and no-cost deposit portfolio. Total MPS deposits were up $148.8 million, or 35.3%, at March 31, 2010, as compared to September 30, 2009. This increase results from growth in prepaid card programs and seasonal activity. Offsetting the above increases was a $21.3 million decrease in certificates of deposits primarily related to a decrease in public funds.
Total borrowings decreased $0.8 million, or 0.7%, from $116.8 million at September 30, 2009 to $116.0 million at March 31, 2010 and is primarily due to the growth of deposits. The Company reduced its FRB TAF borrowings by $25.0 million due to maturity and discontinuation of the TAF program. Offsetting this decrease, was an increase of $23.5 million of borrowings with the FHLB.
Accrued expenses and other liabilities increased $8.8 million, or 72.0%, to $20.9 million at March 31, 2010. This increase was primarily related to a change of $7.9 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 $5.8 million at March 31, 2010, due to an increase in the Companys taxable income as compared to the prior fiscal years taxable loss.
At March 31, 2010, the Companys shareholders equity totaled $61.1 million, up $13.8 million from $47.3 million at September 30, 2009. The increase was related to the previously disclosed net sales of equity securities in the amount of $8.6 million and 2010 year-to-date net income (see Results of Operations below), partially offset by an unfavorable change in the accumulated other comprehensive loss on the Companys available for sale portfolio and the payment of dividends on the Companys common stock. At March 31, 2010, the Bank continues to exceed all regulatory requirements for classification as well-capitalized institution. See Liquidity and Capital Resources for further information.
On the basis of managements review of its loans and other assets, at March 31, 2010, the Company had classified a total of $24.9 million of its assets as substandard, $6.7 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 March 31, 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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