July 27, 2018

Meta Financial Group Inc. reported a 31 percent year-over-year drop in earnings for its fiscal third quarter but increased revenue as it moves toward closing a major acquisition next week.

Net income for the parent company of MetaBank  and Meta Payment Systems was $6.8 million, or 70 cents per share, down from $9.8 million, or $1.04 per share, one year ago. Quarterly earnings included a $3 million provision for loan losses related to student loan portfolios and $2.4 million in merger and acquisition-related expenses, as well as $700,000 for early termination of a vendor contract.

Meta has said it expects to recover a substantial portion of the unearned premiums related to the purchased student loan portfolios.

The third quarter pre-tax results also included $1.7 million in amortization of intangible assets and $1.3 million in non-cash, stock-related compensation associated with executive officer employment agreements.

Total revenue for the quarter increased 11 percent year-over-year to $61.6 million.

“We’re very pleased with the continued success of Meta’s highly differentiated and diversified financial services model as our teams work to expand their businesses, implement innovative programs with our partners and maintain rigorous discipline around risk management and underwriting,” said chairman and CEO Tyler Haahr.

“While Meta continued to execute its organic growth strategy during the 2018 fiscal third quarter, we also made great progress on the pending acquisition of national commercial lender Crestmark Bancorp.”

All necessary shareholder and bank regulatory approvals were obtained during Meta’s fiscal third quarter, and the deal is expected to close Aug. 1, he said.

“We remain confident in our financial expectations for this immediately accretive acquisition, as well as the strategic value this combination of businesses and balance sheets is expected to provide over the long term,” Haahr said.

Meta Financial tapped to ring opening bell at stock exchange