July 31, 2019

Sioux Falls-based Meta Financial Group Inc. more than quadrupled earnings year-over-year for its fiscal third quarter, which ended June 30.

Net income was $29.3 million, or 75 cents per share, compared with $6.8 million, or 23 cents per share, one year ago.

Total revenue increased 80 percent to $110.8 million.

“Our fiscal year 2019 third-quarter results highlight our strong and consistent loan growth, as well as continued net interest income and margin expansion, primarily reflecting a more potent balance sheet,” said president and CEO Brad Hanson.

“We continue to make progress on our key strategic initiatives, including a focus on leveraging our payments division to drive more favorable deposit growth, optimizing our interest-earning asset mix and realizing operating efficiencies to generate sustained profit increases. Moreover, as we remain committed to maximizing shareholder value, we further enhanced our capital management activities by initiating share repurchases under our recent board authorization.”

Total gross loans and leases increased for the quarter to $3.63 billion compared with $1.60 billion – a 127 percent increase, which was primarily driven by loans and leases attributable to Meta’s acquired Crestmark commercial finance division, along with increases in warehouse finance and consumer credit product loans. There also was 18 percent growth in insurance premium finance loans and 14 percent growth in community banking loans.

At the end of the quarter, commercial finance loans, which comprised 51 percent of the company’s gross loan and lease portfolio, totaled $1.84 billion. That reflects growth of $170 million, or 10 percent, from the previous quarter.

Consumer credit product loans grew by $15.9 million, or 11 percent, for the quarter, and warehouse finance loans increased by $63.3 million, or 34 percent.