Meta builds on record year

From staff reports

Meta Financial Group’s record year got a bit better in the third quarter, boosted by its growing tax-related acquisitions.

The Sioux Falls-based company reported net income of $9.8 million, or $1.04 per share, for the three months that ended June 30, compared with $8.9 million, or $1.04 per share, last year.

Excluding expenses related to mergers and acquisition and related severance, analysts are placing core earnings at $1.13 per share.

Meta’s third-quarter average assets grew to $4 billion, compared with $3 billion in the previous year.

“We were pleased with the quarter,” chairman and CEO Tyler Haahr said. “It’s a very solid quarter with good growth numbers, and we continue to see momentum related to our tax acquisitions.”

Gains from recent tax-related acquisitions were seen in the refund-transfer-fee income, which increased $2.4 million, or 69 percent, during the quarter. That primarily was related to acquiring EPS Financial last fall.

The banking and payments businesses at Meta also showed positive growth during the quarter, with the company’s overall loan portfolio increasing 42 percent and fee income increasing 28 percent year-over-year.

H&R Block business lost

One day after quarterly earnings were released, Meta learned of a loss that likely will effect next year’s results. H&R Block notified the company it will not be continuing a relationship to provide interest-free Refund Advance loans for the 2018 tax season.

Meta’s relationship with H&R Block represented approximately $12.0 million in net earnings during fiscal year 2017.

“We are disappointed to hear that H&R Block will not be offering 2018 tax season loans through MetaBank. However, based on the current progress of negotiations with new tax partners and expanded relationships with existing tax partners, we believe we will be able to recoup a significant portion of the lost earnings associated with this program,” Haahr said in a statement.

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Meta builds on record year

Meta Financial Group’s record year got a bit better in the third quarter, boosted by its growing tax-related acquisitions.

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