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Jan. 31, 2018
Sioux Falls-based Meta Financial Group reported a big jump in earnings for its first quarter of the 2018 fiscal year, which ended Dec. 31, 2017.
Net income was $4.7 million, or 48 cents per share, compared with $1.2 million, or 14 cents per share, for the same time last year.
The quarterly results included an income tax expense of $3.6 million from a reduction in the value of certain deferred tax assets as a result of the Tax Cuts and Jobs Act. Pre-tax results included a $1 million loss on sale of investments and $1.3 million in acquisition expenses. The results also included $1.7 million in amortization of intangible assets and $1.3 million in noncash stock-related compensation associated with executive officer employment agreements
“Fiscal 2018 is off to a fast and exciting start,” said chairman and CEO Tyler Haahr, referring to a recent agreement to acquire Michigan-based Crestmark Bancorp.
“With this strategic acquisition, we continue to deliver on our goal of growth and innovation through diversification. This transaction will allow us to provide incremental value to our partners through new offerings.”
The addition is expected to moderate the seasonality of earnings tied to its tax-related business and provide opportunity to grow consumer-lending initiatives.
“Adding to our exciting announcement regarding our transaction with Crestmark, a new tax season is now underway, and we will be able to showcase improved products, new partners and enhanced synergies from our acquisitions of Refund Advantage, EPS and Specialty Consumer Services over the last few years,” Haahr said.
Total revenue for the first quarter was $55.5 million, compared with $39.2 million for the same quarter in fiscal 2017, an increase of $16.3 million, or 42 percent. This increase was primarily caused by growth in card fee income, interest income from commercial insurance premium finance and community banking loans, as well as the student loan purchases and growth in income from tax-exempt securities and tax product fees.
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Sioux Falls-based Meta Financial Group reported a big jump in earnings for its first quarter of the 2018 fiscal year.
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