Jan. 28, 2021

Sioux Falls-based Meta Financial Group Inc. reported a 32 percent increase in quarterly earnings and said it has shown the ability to get through the worst of the pandemic.

Net income for the quarter that ended Dec. 31, 2020, was $28 million, or 84 cents per share, compared with $21.2 million, or 56 cents per share, for the same time last year.

“Solid revenues, lower expenses and better efficiency ratios combined to deliver excellent results in the first quarter of fiscal year 2021. I am extremely proud of my team’s ability to persevere during the pandemic, delivering significant value to customers and shareholders from a remote-working environment,” president and CEO Brad Hanson said in a statement.

“During the quarter, we spent time getting ready for the upcoming tax season, implementing H&R Block and preparing for the distribution of the second round of Economic Impact Payments, while advancing our long-standing mission of financial inclusion for all, with increased resources and prioritization of environmental, social and governance initiatives.”

As of Dec. 31, $84.2 million of the loans and leases that were granted deferral payments by Meta were still in their deferment period. As of Sept. 30, 2020, loans and leases totaling $170 million were within their deferment period.

In addition, the company has made other COVID-19 related modifications, of which $1.1 million were still active as of Dec. 31, compared to $23.3 million at Sept. 30. The majority of the other modifications were related to adjusting the type or amount of customers’ payments.

Meta’s operating efficiency ratio improved to 62.2 percent as of Dec. 31 compared with 68.2 percent Dec. 31, 2019.

“Our quarterly results demonstrate ongoing progress in optimizing our business platforms, enabling us to improve our efficiency ratio by over 600 basis points compared with the prior year,” executive vice president and CFO Glen Herrick said.

“Our loan portfolios continue to perform well as our credit metrics demonstrate the company’s ability to weather the worst of the pandemic, leaving us well positioned to continue to remix our balance sheet with higher yield and return earning assets.”