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Meta Financial Group (CASH) of Storm Lake, Iowa, has agreed to pay $2.1 million to settle a class-action lawsuit with investors related its former high-interest, small-balance loan program, iAdvance.
March 27
Meta Financial Group (CASH) in Storm Lake, Iowa, announced Thursday that it has raised $13.2 million in three separate private placements and that the proceeds would be used to beef up its capital reserves and fund growth at both its retail bank and payments unit.
The funds are in addition to $7.2 million it raised in the first quarter of this year through the sale of Ginnie Mae securities. The securities sale helped boost the core capital ratio at its MetaBank subsidiary by nearly basis points, to 6.49%, and the stock sale that closed Wednesday is expected to add another 85 to 90 basis points.
"A principal focus this fiscal year is to ensure that we are appropriately capitalized and that we have enhanced infrastructure to support our current momentum as well as expected opportunities for further growth," Meta Financial Chairman, President and Chief Executive Officer J. Tyler Haahr, said in a news release.
The $1.6 billion-asset Meta also reported its earnings Thursday for the quarter that ended March 31.
Net income more than tripled from the prior year, to $10 million, though the results were skewed by the sale of the Ginnie Mae Securities. Excluding that sale, its earnings climbed 22% year over year, to $2.8 million, due largely to a decline in problem loans at its retail bank 14% earnings growth at Meta Payments Systems, which is primarily an issuer of prepaid cards.
Profits were also aided by a 12% jump in net interest income resulting from an increase in earning assets and a 20% jump in low-cost deposits, which helped reduce funding costs.
In early trading Thursday, Meta's shares were up about 1%, to $21.70.
