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Meta Financial Group, Inc.® Announces Results for 2022 Fiscal First Quarter

- Fiscal 2022 First Quarter Net Income of $61.3 million, or $2.00 Per Diluted Share -

- Rebranding Process Underway Following Agreement to Sell Meta Names and Trademarks -

- Completes Sale of Remaining Community Bank Loans -

Meta Financial Group, Inc.® (Nasdaq: CASH) (“Meta” or the “Company”) reported net income of $61.3 million, or $2.00 per share, for the three months ended December 31, 2021, compared to net income of $28.0 million, or $0.84 per share, for the three months ended December 31, 2020. During the fiscal first quarter of 2022, the Company recognized a gain on sale of Meta names and trademarks of $50.0 million. Excluding the impact of the gain on sale of these assets, the Company's adjusted net income for the quarter totaled $23.9 million, or $0.78 per share. See non-GAAP reconciliation table below.

"We made continued progress towards our three strategic initiatives, as reflected in our strong fiscal first quarter results,” said CEO Brett Pharr. “We generated growth in earnings per share while positioning the Company for future growth through two significant strategic transactions during the first quarter.”

“Following the initiation of a comprehensive brand strategy review earlier in calendar 2021, we announced our agreement to sell the Meta name and trademarks to Beige Key LLC. This transaction provides significant funds, allowing us to advance a new corporate name and brand that represent our significant evolution and better enable us to fulfill our vision of 'Financial Inclusion for All®,'” Pharr noted.

Executive Vice President and CFO Glen Herrick added, “We are also pleased to have sold our remaining legacy community bank loans, completing the wind-down of that portfolio and marking another critical step in optimizing our interest-earning asset mix. Coupled with our strong financial results, our momentum continues to build, giving us confidence in our positive outlook and growth trajectory.”

Business Development Highlights for the 2022 Fiscal First Quarter

  • Entered into an agreement with Beige Key LLC to sell the Meta names and trademarks for $60 million, of which $50 million was recognized as noninterest income in the first fiscal quarter. The Company plans to use a portion of the proceeds to implement its new corporate name and brand, which is expected to be completed by the end of 2022, and estimates its rebranding expenses will range between $15 million to $20 million. The remainder of the proceeds will be used for general corporate purposes including tax-efficient capital allocation.
  • Sold all remaining $192.5 million of community banking loans, reducing this portfolio to zero and generating a favorable pre-tax impact of approximately $3.9 million after netting the recovery of provision expense from the portfolio's $12.3 million allowance and the loss on sale of loans of $8.4 million.
  • Extended the agreement with Emerald Financial Services, LLC, a wholly-owned, indirect subsidiary of H&R Block, through June 30, 2025. The agreement adds valuable new financial product offerings and capabilities for customers, including Spruce Accounts, a mobile banking platform that features a spending account with an attached debit card. This innovative product, designed to help a consumer better manage their financial resources and meet spending goals, is powered by MetaBank.
  • Originated $21.2 million in aggregate principal of renewable energy loan financing for the first quarter of fiscal 2022, resulting in $5.7 million in total net investment tax credits.
  • Repurchased 1,711,501 shares, at an average price of $58.97, in the first fiscal quarter. The company purchased an additional 130,000 shares through January 20, 2022 at an average share price of $61.26 and has 5,474,375 shares available for repurchase under the common stock share repurchase program announced during the fourth quarter of fiscal year 2021.

Financial Highlights for the 2022 Fiscal First Quarter

  • Total revenue for the first quarter was $158.2 million, an increase of $46.7 million, or 42%, compared to the same quarter in fiscal 2021, primarily driven by the gain on sale of the Meta names and trademarks.
  • Net interest income for the first quarter was $71.6 million, an increase of $5.6 million compared to $66.0 million in the first quarter last year.
  • Net interest margin ("NIM") was essentially unchanged, declining to 4.59% for the first quarter from 4.65% during the same period of last year. The increase in higher-yielding loans and leases was offset by an increase in lower-yielding investment securities balances and the continued low interest rate environment.
  • Total gross loans and leases at December 31, 2021 increased $243.0 million, to $3.68 billion, or 7%, compared to December 31, 2020 and increased $74.8 million, or 2%, when compared to September 30, 2021. The increase was driven by growth across our loan portfolios, partially offset by the sale of all remaining community banking loans during the quarter.

Net Interest Income

Net interest income for the first quarter of fiscal 2022 was $71.6 million, an increase of 9% from the same quarter in fiscal 2021. The increase was mainly attributable to an improved earning asset and liability mix, along with increased loan balances.

The first quarter average outstanding balance of loans and leases increased $211.3 million compared to the same quarter of the prior year, primarily due to increases in our core loan and lease portfolios, partially offset by the sale of the remaining community bank portfolio. The Company’s average interest-earning assets for the first quarter increased by $547.2 million to $6.18 billion compared with the same quarter in fiscal 2021, primarily due to growth in total investments and total loans and leases.

Fiscal 2022 first quarter NIM decreased to 4.59% from 4.65% in the first quarter of last year. The overall reported tax-equivalent yield (“TEY”) on average earning asset yields decreased 13 basis points to 4.69% compared to the prior year quarter, primarily driven by an increase in lower-yielding investment securities balances of $561.4 million. The TEY on the securities portfolio was 1.58% compared to 1.79% for the comparable period last year.

The Company's cost of funds for all deposits and borrowings averaged 0.08% during the fiscal 2022 first quarter, compared to 0.15% during the prior year quarter, primarily driven by a reduction in wholesale deposit balances along with an increase in noninterest bearing deposits. The Company's overall cost of deposits was 0.01% in the fiscal first quarter of 2022, compared to 0.06% in the same quarter last year.

Noninterest Income

Fiscal 2022 first quarter noninterest income increased to $86.6 million, compared to $45.5 million for the same period of the prior year. The significant increase was driven by the $50 million gain on sale of the Meta names and trademarks and to a lesser extent an increase in payments fee income and rental income.

The Company also recognized a loss on sale of other during the quarter of $3.5 million, a $6.3 million decrease from the prior year period, primarily consisting of a $8.4 million loss attributable to the sale of the remaining community bank loans partially offset by a $3.4 million gain on sale of SBA loans.

Also partially offsetting the increase during the quarter was a decrease in other income, which includes a net unrealized loss of $3.3 million on a prior investment in MoneyLion Inc. This loss partially offsets a net unrealized gain of $4.1 million recognized by the Company during the fourth quarter of fiscal 2021 following the completion of MoneyLion's de-SPAC process and listing on the New York Stock Exchange on September 22, 2021.

Noninterest Expense

Noninterest expense increased 14% to $82.4 million for the fiscal 2022 first quarter, from $72.6 million for the same quarter last year. The increase in expense was primarily driven by an increase in compensation expense, other expense, occupancy and equipment expense, and card processing expense. When comparing the fiscal 2022 first quarter to the fourth quarter of 2021, non-interest expense decreased by $11.2 million.

Income Tax Expense

The Company recorded income tax expense of $14.3 million, representing an effective tax rate of 18.9%, for the fiscal 2022 first quarter, compared to $3.5 million, representing an effective tax rate of 10.8%, for the first quarter last year. The increase in income tax expense was primarily due to increased earnings.

The Company originated $21.2 million in solar leases during the fiscal 2022 first quarter, compared to $38.5 million in last year's first quarter. Investment tax credits related to solar leases are recognized ratably based on income throughout each fiscal year. The timing and impact of future solar tax credits are expected to vary from period to period, and Meta intends to undertake only those tax credit opportunities that meet the Company's underwriting and return criteria.

Investments, Loans and Leases

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Total investments

$

1,833,733

 

 

$

1,921,568

 

 

$

1,981,852

 

 

$

1,552,892

 

 

$

1,309,452

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

 

 

 

 

 

 

 

Consumer credit products

 

20,728

 

 

 

23,111

 

 

 

12,582

 

 

 

6,233

 

 

 

234

 

SBA/USDA

 

15,454

 

 

 

33,083

 

 

 

57,208

 

 

 

61,402

 

 

 

32,983

 

Community Bank

 

 

 

 

 

 

 

18,115

 

 

 

 

 

 

100,442

 

Total loans held for sale

 

36,182

 

 

 

56,194

 

 

 

87,905

 

 

 

67,635

 

 

 

133,659

 

 

 

 

 

 

 

 

 

 

 

Term lending

 

1,038,378

 

 

 

961,019

 

 

 

920,279

 

 

 

891,414

 

 

 

881,306

 

Asset based lending

 

337,236

 

 

 

300,225

 

 

 

263,237

 

 

 

248,735

 

 

 

242,298

 

Factoring

 

402,972

 

 

 

363,670

 

 

 

320,629

 

 

 

277,612

 

 

 

275,650

 

Lease financing

 

245,315

 

 

 

266,050

 

 

 

282,940

 

 

 

308,169

 

 

 

283,722

 

Insurance premium finance

 

385,473

 

 

 

428,867

 

 

 

417,652

 

 

 

344,841

 

 

 

338,227

 

SBA/USDA

 

209,521

 

 

 

247,756

 

 

 

263,709

 

 

 

331,917

 

 

 

300,707

 

Other commercial finance

 

178,853

 

 

 

157,908

 

 

 

118,081

 

 

 

103,234

 

 

 

101,209

 

Commercial Finance

 

2,797,748

 

 

 

2,725,495

 

 

 

2,586,527

 

 

 

2,505,922

 

 

 

2,423,119

 

Consumer credit products

 

173,343

 

 

 

129,251

 

 

 

105,440

 

 

 

104,842

 

 

 

88,595

 

Other consumer finance

 

144,412

 

 

 

123,606

 

 

 

122,316

 

 

 

130,822

 

 

 

162,423

 

Consumer Finance

 

317,755

 

 

 

252,857

 

 

 

227,756

 

 

 

235,664

 

 

 

251,018

 

Tax Services

 

100,272

 

 

 

10,405

 

 

 

41,268

 

 

 

225,921

 

 

 

92,548

 

Warehouse Finance

 

466,831

 

 

 

419,926

 

 

 

335,704

 

 

 

332,456

 

 

 

318,937

 

Community Banking

 

 

 

 

199,132

 

 

 

303,984

 

 

 

348,065

 

 

 

353,942

 

Total gross loans and leases

 

3,682,606

 

 

 

3,607,815

 

 

 

3,495,239

 

 

 

3,648,028

 

 

 

3,439,564

 

Allowance for credit losses

 

(67,623

)

 

 

(68,281

)

 

 

(91,208

)

 

 

(98,892

)

 

 

(72,389

)

Net deferred loan and lease origination fees

 

1,655

 

 

 

1,748

 

 

 

1,431

 

 

 

9,503

 

 

 

9,111

 

Total loans and leases, net of allowance

$

3,616,638

 

 

$

3,541,282

 

 

$

3,405,462

 

 

$

3,558,639

 

 

$

3,376,286

 

The Company's investment security balances at December 31, 2021 totaled $1.83 billion, as compared to $1.92 billion at September 30, 2021 and $1.31 billion at December 31, 2020.

Total gross loans and leases totaled $3.68 billion at December 31, 2021, as compared to $3.61 billion at September 30, 2021 and $3.44 billion and as compared to December 31, 2020. The primary drivers for the increase on a linked quarter basis were tax services, commercial finance, consumer credit, and warehouse finance loans, partially offset by the sale of all remaining community bank loans.

Commercial finance loans, which comprised 76% of the Company's gross loan and lease portfolio, totaled $2.80 billion at December 31, 2021, reflecting growth of $72.3 million, or 3%, from September 30, 2021 and $374.6 million, or 15%, from December 31, 2020.

As of December 31, 2021, the Company had 275 loans outstanding with total loan balances of $63.8 million originated as part of the Paycheck Protection Program ("PPP"), compared with 370 loans outstanding with total loan balances of $96.0 million for the quarter ended September 30, 2021. In total, approximately 80% of the PPP loan balances were forgiven through December 31, 2021.

During the first fiscal quarter of 2022, the Company sold all remaining community banking loans. The outstanding balance of community banking loans at September 30, 2021 and December 31, 2020 was $199.1 million and $353.9 million, respectively. The amount of community banking loans sold during the quarter totaled $192.5 million.

Asset Quality

The Company’s allowance for credit losses ("ACL") totaled $67.6 million at December 31, 2021, a decrease compared to $68.3 million at September 30, 2021 and $72.4 million at December 31, 2020. The reduction in the ACL at December 31, 2021, when compared to September 30, 2021, was primarily due to a $12.3 million decrease attributable to the community banking portfolio, as all loans have now been sold. This decrease was partially offset by increases within commercial finance of $8.7 million, tax services of $1.6 million, and consumer finance of $1.2 million.

The $4.8 million year-over-year decrease in the ACL was primarily driven by a $14.2 million decrease attributable to the community banking portfolio, due to pay downs and the aforementioned loan sales, along with a $2.4 million decrease in the consumer finance portfolio. These decreases were partially offset by a $11.5 million increase within the commercial finance portfolio, and to a lesser extent, increases within the tax services and warehouse finance portfolios.

The following table presents the Company's ACL as a percentage of its total loans and leases.

 

As of the Period Ended

(Unaudited)

December 31,

2021

September 30,

2021

June 30,

2021

March 31,

2021

December 31,

2020

 

 

 

 

 

 

Commercial finance

2.04 %

1.77 %

1.73 %

1.77 %

1.88 %

Consumer finance

2.70 %

2.91 %

3.80 %

4.70 %

4.39 %

Tax services

1.60 %

0.02 %

58.99 %

12.90 %

1.53 %

Warehouse finance

0.10 %

0.10 %

0.10 %

0.10 %

0.10 %

Community bank

— %

6.16 %

4.36 %

4.03 %

4.01 %

Total loans and leases

1.84 %

1.89 %

2.61 %

2.71 %

2.10 %

The Company's ACL as a percentage of total loans and leases decreased to 1.84% at December 31, 2021 from 1.89% at September 30, 2021. The decrease in the total loans and leases coverage ratio reflected the release of the community banking portfolio allowance. The coverage ratio for the commercial finance portfolio increased compared to the September 30, 2021 quarter due to specific reserves on two individually evaluated loan relationships. The consumer finance coverage ratio decreased primarily due to an improved overall macroeconomic outlook while the tax services coverage increased due to the seasonal start of tax season, similar to the same period of the prior year. The Company expects to continue to diligently monitor the ACL and adjust as necessary in future periods to maintain an appropriate and supportable level.

Activity in the allowance for credit losses for the periods presented was as follows.

(Unaudited)

Three Months Ended

 

December 31, 2021

September 30, 2021

December 31, 2020

(Dollars in thousands)

 

 

 

Beginning balance

$

68,281

 

$

91,208

 

$

56,188

 

Adoption of CECL accounting standard

 

 

 

 

 

12,773

 

(Reversal of) provision - tax services loans

 

(714

)

 

457

 

 

454

 

Provision - all other loans and leases

 

1,184

 

 

8,368

 

 

5,810

 

Charge-offs - tax services loans

 

(254

)

 

(24,849

)

 

 

Charge-offs - all other loans and leases

 

(4,605

)

 

(7,635

)

 

(5,675

)

Recoveries - tax services loans

 

2,567

 

 

51

 

 

956

 

Recoveries - all other loans and leases

 

1,164

 

 

681

 

 

1,883

 

Ending balance

$

67,623

 

$

68,281

 

$

72,389

 

The Company recognized a provision for credit losses of $0.2 million for the quarter ended December 31, 2021, compared to $6.1 million for the comparable period in the prior fiscal year. Net charge-offs were $1.1 million for the quarter ended December 31, 2021, compared to $2.8 million for the quarter ended December 31, 2020. Net charge-offs attributable to the commercial finance portfolio for the quarter were $3.2 million, partially offset by net recoveries from the tax services portfolio of $2.3 million.

The Company's past due loans and leases were as follows for the periods presented.

As of December 31, 2021

Accruing and Nonaccruing Loans and Leases

 

Nonperforming Loans and Leases

(Dollars in Thousands)

30-59

Days

Past Due

 

60-89

Days

Past Due

 

> 89 Days

Past Due

 

Total Past

Due

 

Current

 

Total Loans

and Leases

Receivable

 

> 89 Days

Past Due

and

Accruing

 

Non-

accrual

balance

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

$

9

 

$

2

 

$

 

$

11

 

$

36,171

 

$

36,182

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance

$

41,473

 

$

8,539

 

$

7,568

 

$

57,580

 

$

2,740,168

 

$

2,797,748

 

$

3,896

 

$

37,760

 

$

41,656

Consumer finance

 

4,880

 

 

2,277

 

 

1,534

 

 

8,691

 

 

309,064

 

 

317,755

 

 

1,534

 

 

 

 

1,534

Tax services

 

 

 

 

 

 

 

 

 

100,272

 

 

100,272

 

 

 

 

 

 

Warehouse finance

 

 

 

 

 

 

 

 

 

466,831

 

 

466,831

 

 

 

 

 

 

Total loans and leases held for investment

 

46,353

 

 

10,816

 

 

9,102

 

 

66,271

 

 

3,616,335

 

 

3,682,606

 

 

5,430

 

 

37,760

 

 

43,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases

 

46,362

 

 

10,818

 

 

9,102

 

 

66,282

 

 

3,652,506

 

 

3,718,788

 

 

5,430

 

 

37,760

 

 

43,190

As of September 30, 2021

Accruing and Nonaccruing Loans and Leases

 

Nonperforming Loans and Leases

(Dollars in Thousands)

30-59

Days Past

Due

 

60-89

Days Past

Due

 

> 89 Days

Past Due

 

Total Past

Due

 

Current

 

Total Loans

and Leases

Receivable

 

> 89 Days

Past Due

and

Accruing

 

Non-

accrual

balance

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial finance

$

18,269

 

$

7,388

 

$

15,439

 

$

41,096

 

$

2,684,399

 

$

2,725,495

 

$

12,489

 

$

19,330

 

$

31,819

Consumer finance

 

1,676

 

 

812

 

 

1,236

 

 

3,724

 

 

249,133

 

 

252,857

 

 

1,236

 

 

 

 

1,236

Tax services

 

 

 

 

 

7,962

 

 

7,962

 

 

2,443

 

 

10,405

 

 

7,962

 

 

 

 

7,962

Warehouse finance

 

 

 

 

 

 

 

 

 

419,926

 

 

419,926

 

 

 

 

 

 

Community banking

 

 

 

 

 

 

 

 

 

199,132

 

 

199,132

 

 

 

 

14,915

 

 

14,915

Total loans and leases held for investment

 

19,945

 

 

8,200

 

 

24,637

 

 

52,782

 

 

3,555,033

 

 

3,607,815

 

 

21,687

 

 

34,245

 

 

55,932

The Company's nonperforming assets at December 31, 2021 were $44.3 million, representing 0.58% of total assets, compared to $61.8 million, or 0.92% of total assets at September 30, 2021 and $53.2 million, or 0.73% of total assets at December 31, 2020. The changes in the nonperforming assets as a percentage of total assets at December 31, 2021 were driven in large part by a decrease in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio, when compared to the linked-quarter. When comparing the current period to the same period of the prior year, the decrease in nonperforming assets was due to a decrease in nonperforming assets in the community bank portfolio, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company's nonperforming loans and leases at December 31, 2021, were $43.2 million, representing 1.16% of total gross loans and leases, compared to $55.9 million, or 1.52% of total gross loans and leases at September 30, 2021 and $43.5 million, or 1.17% of total gross loans and leases at December 31, 2020. The decreases are related to the aforementioned decreases in nonperforming assets in the community bank and tax services portfolios, partially offset by an increase in nonperforming assets in the commercial finance portfolio.

The Company has various portfolios of consumer lending and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below. The Company's loans and leases held for investment by asset classification were as follows for the periods presented.

Asset Classification

Pass

Watch

Special

Mention

Substandard

Doubtful

Total

As of December 31, 2021

(Dollars in Thousands)

Commercial finance

$

2,084,835

$

355,431

$

161,301

$

176,258

$

19,923

$

2,797,748

Warehouse finance

 

466,831

 

 

 

 

 

466,831

Total Loans and Leases

$

2,551,666

$

355,431

$

161,301

$

176,258

$

19,923

$

3,264,579

Asset Classification

Pass

Watch

Special

Mention

Substandard

Doubtful

Total

As of September 30, 2021

(Dollars in Thousands)

Commercial finance

$

2,039,324

$

364,713

$

170,527

$

144,414

$

6,517

$

2,725,495

Warehouse finance

 

419,926

 

 

 

 

 

419,926

Community banking

 

10,314

 

27,121

 

35,916

 

120,238

 

5,543

 

199,132

Total Loans and Leases

$

2,469,564

$

391,834

$

206,443

$

264,652

$

12,060

$

3,344,553

Deposits, Borrowings and Other Liabilities

Total average deposits for the fiscal 2022 first quarter increased by $494.9 million to $5.92 billion compared to the same period in fiscal 2021, primarily due to an increase in noninterest-bearing deposits of $808.2 million. Average wholesale deposits decreased $193.8 million for the fiscal 2022 first quarter when compared to the same period in fiscal 2021.

The average balance of total deposits and interest-bearing liabilities was $6.01 billion for the three-month period ended December 31, 2021, compared to $5.52 billion for the same period in the prior fiscal year, representing an increase of 9%.

Total end-of-period deposits increased 5% to $6.53 billion at December 31, 2021, compared to $6.21 billion at December 31, 2020. The increase in end-of-period deposits was primarily driven by an increase in noninterest-bearing deposits of $688.0 million, partially offset by a decrease in wholesale deposits of $161.2 million. The increase in noninterest-bearing deposits was driven by government stimulus-related dollars loaded on various partner cards.

Of the 16.5 million prepaid cards issued in conjunction with the three EIP stimulus programs, totaling approximately $24.15 billion, $1.38 billion were outstanding as of December 31, 2021, of which only $28.1 million was on Meta’s balance sheet with the remainder being held by other banks.

Regulatory Capital

The Company and MetaBank remained above the federal regulatory minimum capital requirements at December 31, 2021, continued to be classified as well-capitalized, and in good standing with the regulatory agencies. Regulatory capital ratios of the Company and the Bank are stated in the table below.

The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analysis.

As of the dates indicated

December 31,

2021 (1)

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Company

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital ratio

7.39 %

 

7.67 %

 

6.85 %

 

4.75 %

 

7.39 %

Common equity Tier 1 capital ratio

10.88 %

 

12.12 %

 

12.76 %

 

11.29 %

 

10.72 %

Tier 1 capital ratio

11.20 %

 

12.46 %

 

13.11 %

 

11.63 %

 

11.07 %

Total capital ratio

13.80 %

 

15.45 %

 

16.18 %

 

14.65 %

 

14.14 %

MetaBank

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital ratio

8.52 %

 

8.69 %

 

7.83 %

 

5.47 %

 

8.60 %

Common equity Tier 1 capital ratio

12.90 %

 

14.11 %

 

14.94 %

 

13.39 %

 

12.87 %

Tier 1 capital ratio

12.91 %

 

14.13 %

 

14.96 %

 

13.40 %

 

12.89 %

Total capital ratio

14.16 %

 

15.38 %

 

16.22 %

 

14.66 %

 

14.14 %

(1) December 31, 2021 amounts are preliminary pending completion and filing of the Company's regulatory reports. Regulatory capital presented for periods presented reflect the Company's election of the five-year CECL transition for regulatory capital purposes.

The following table provides the non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:

Standardized Approach(1)

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Total stockholders' equity

$

826,157

 

$

871,884

 

$

876,633

 

$

835,258

 

$

813,210

Adjustments:

 

 

 

 

 

 

 

 

 

LESS: Goodwill, net of associated deferred tax liabilities

 

300,382

 

 

300,780

 

 

301,179

 

 

301,602

 

 

301,999

LESS: Certain other intangible assets

 

32,294

 

 

33,572

 

 

35,100

 

 

36,779

 

 

39,403

LESS: Net deferred tax assets from operating loss and tax credit carry-forwards

 

19,805

 

 

22,801

 

 

17,753

 

 

19,306

 

 

24,105

LESS: Net unrealized gains (losses) on available-for-sale securities

 

403

 

 

7,344

 

 

14,750

 

 

12,458

 

 

19,894

LESS: Non-controlling interest

 

642

 

 

1,155

 

 

1,490

 

 

1,092

 

 

1,536

ADD: Adoption of Accounting Standards Update 2016-13

 

6,527

 

 

8,202

 

 

13,913

 

 

10,439

 

 

10,439

Common Equity Tier 1(1)

 

479,158

 

 

514,434

 

 

520,274

 

 

474,460

 

 

436,712

Long-term borrowings and other instruments qualifying as Tier 1

 

13,661

 

 

13,661

 

 

13,661

 

 

13,661

 

 

13,661

Tier 1 minority interest not included in common equity tier 1 capital

 

444

 

 

747

 

 

932

 

 

690

 

 

749

Total Tier 1 Capital

 

493,263

 

 

528,842

 

 

534,867

 

 

488,811

 

 

451,122

Allowance for credit losses

 

55,125

 

 

53,159

 

 

51,317

 

 

53,232

 

 

51,070

Subordinated debentures (net of issuance costs)

 

59,220

 

 

73,980

 

 

73,936

 

 

73,892

 

 

73,850

Total qualifying capital

$

607,608

 

$

655,981

 

$

660,119

 

$

615,935

 

$

576,042

(1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio; those changes are being fully phased in through the end of 2021.

The following table provides a reconciliation of tangible common equity and tangible common equity excluding accumulated other comprehensive income ("AOCI"), each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

Total Stockholders' Equity

$

826,157

 

$

871,884

 

$

876,633

 

$

835,258

 

$

813,210

Less: Goodwill

 

309,505

 

 

309,505

 

 

309,505

 

 

309,505

 

 

309,505

Less: Intangible assets

 

31,661

 

 

33,148

 

 

34,898

 

 

36,903

 

 

39,660

Tangible common equity

 

484,991

 

 

529,231

 

 

532,230

 

 

488,850

 

 

464,045

Less: Accumulated other comprehensive income (loss) ("AOCI")

 

724

 

 

7,599

 

 

15,222

 

 

12,809

 

 

20,119

Tangible common equity excluding AOCI

$

484,267

 

$

521,632

 

$

517,008

 

$

476,041

 

$

443,926

Conference Call

The Company will host a conference call and earnings webcast at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, January 26, 2022. The live webcast of the call can be accessed from Meta’s Investor Relations website at www.metafinancialgroup.com. Telephone participants may access the conference call by dialing (844) 200-6205 approximately 10 minutes prior to start time and reference access code 483958. A webcast replay will also be archived at www.metafinancialgroup.com for one year.

Upcoming Investor Events

  • KBW Financial Services Symposium, February 17, 2022 | Boca Raton, FL
  • Raymond James Institutional Investors Conference, March 8, 2022 | Orlando, FL

Forward-Looking Statements

The Company and MetaBank may from time to time make written or oral “forward-looking statements,” including statements contained in this press release, the Company’s filings with the SEC, the Company’s reports to stockholders, and in other communications by the Company and MetaBank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results; expectations in connection with the impact of the ongoing COVID-19 pandemic and related government actions on our business, our industry and the capital markets; customer retention; loan and other product demand; expectations concerning acquisitions and divestitures; new products and services, including those offered by Meta Payment Systems, Refund Advantage, EPS Financial and Specialty Consumer Services divisions; credit quality; the level of net charge-offs and the adequacy of the allowance for credit losses; technology; and the Company's employees. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; expected growth opportunities may not be realized or may take longer to realize than expected; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, or other unusual and infrequently occurring events; actual changes in interest rates and the Fed Funds rate; additional changes in tax laws; the strength of the United States' economy, in general, and the strength of the local economies in which the Company operates; changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Federal Reserve; inflation, market, and monetary fluctuations; the timely and efficient development of, and acceptance of, new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value of these products and services by users; the risks of dealing with or utilizing third parties, including, in connection with the Company’s prepaid card and refund advance businesses, the risk of reduced volume of refund advance loans as a result of reduced customer demand for or usage of Meta’s strategic partners’ refund advance products; our relationship with, and any actions which may be initiated by, our regulators; the impact of changes in financial services laws and regulations, including, but not limited to, laws and regulations relating to the tax refund industry and the insurance premium finance industry; technological changes, including, but not limited to, the protection of our electronic systems and information; the impact of acquisitions and divestitures; litigation risk; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by MetaBank of its status as a well-capitalized institution; changes in consumer spending and saving habits; losses from fraudulent or illegal activity; technological risks and developments and cyber threats, attacks, or events; and the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase.

The foregoing list of factors is not exclusive. We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release speak only as of the date hereof. Additional discussions of factors affecting the Company’s business and prospects are reflected under the caption “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2021, and in other filings made with the SEC. The Company expressly disclaims any intent or obligation to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances, or future events or for any other reason.

Condensed Consolidated Statements of Financial Condition (Unaudited)

 

(Dollars in Thousands, Except Share Data)

ASSETS

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 30,

2020

Cash and cash equivalents

$

1,230,100

 

 

$

314,019

 

 

$

720,243

 

 

$

3,724,242

 

 

$

1,586,451

 

Securities available for sale, at fair value

 

1,782,739

 

 

 

1,864,899

 

 

 

1,917,605

 

 

 

1,480,780

 

 

 

1,228,124

 

Securities held to maturity, at amortized cost

 

50,994

 

 

 

56,669

 

 

 

64,247

 

 

 

72,112

 

 

 

81,328

 

Federal Reserve Bank and Federal Home Loan Bank stocks, at cost

 

28,400

 

 

 

28,400

 

 

 

28,433

 

 

 

28,433

 

 

 

27,138

 

Loans held for sale

 

36,182

 

 

 

56,194

 

 

 

87,905

 

 

 

67,635

 

 

 

133,659

 

Loans and leases

 

3,684,261

 

 

 

3,609,563

 

 

 

3,496,670

 

 

 

3,657,531

 

 

 

3,448,675

 

Allowance for credit losses

 

(67,623

)

 

 

(68,281

)

 

 

(91,208

)

 

 

(98,892

)

 

 

(72,389

)

Accrued interest receivable

 

17,240

 

 

 

16,254

 

 

 

16,230

 

 

 

17,429

 

 

 

17,133

 

Premises, furniture, and equipment, net

 

44,130

 

 

 

44,888

 

 

 

44,107

 

 

 

41,510

 

 

 

39,932

 

Rental equipment, net

 

234,693

 

 

 

213,116

 

 

 

211,368

 

 

 

211,397

 

 

 

206,732

 

Foreclosed real estate and repossessed assets, net

 

298

 

 

 

2,077

 

 

 

1,204

 

 

 

1,483

 

 

 

7,186

 

Goodwill and intangible assets, net

 

341,166

 

 

 

342,653

 

 

 

344,403

 

 

 

346,408

 

 

 

349,165

 

Prepaid assets

 

17,007

 

 

 

10,513

 

 

 

7,482

 

 

 

10,201

 

 

 

11,270

 

Other assets

 

210,071

 

 

 

199,686

 

 

 

203,123

 

 

 

229,854

 

 

 

200,111

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

7,609,658

 

 

$

6,690,650

 

 

$

7,051,812

 

 

$

9,790,123

 

 

$

7,264,515

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Deposits

 

6,525,569

 

 

 

5,514,971

 

 

 

5,888,871

 

 

 

8,642,413

 

 

 

6,207,791

 

Long-term borrowings

 

92,274

 

 

 

92,834

 

 

 

93,634

 

 

 

95,336

 

 

 

96,760

 

Accrued expenses and other liabilities

 

165,658

 

 

 

210,961

 

 

 

192,674

 

 

 

217,116

 

 

 

146,754

 

Total liabilities

 

6,783,501

 

 

 

5,818,766

 

 

 

6,175,179

 

 

 

8,954,865

 

 

 

6,451,305

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.01 par value

 

301

 

 

 

317

 

 

 

319

 

 

 

319

 

 

 

326

 

Common stock, Nonvoting, $.01 par value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

610,816

 

 

 

604,484

 

 

 

602,720

 

 

 

601,222

 

 

 

598,669

 

Retained earnings

 

217,992

 

 

 

259,189

 

 

 

262,578

 

 

 

225,471

 

 

 

198,000

 

Accumulated other comprehensive income

 

724

 

 

 

7,599

 

 

 

15,222

 

 

 

12,809

 

 

 

20,119

 

Treasury stock, at cost

 

(4,318

)

 

 

(860

)

 

 

(5,696

)

 

 

(5,655

)

 

 

(5,440

)

Total equity attributable to parent

 

825,515

 

 

 

870,729

 

 

 

875,143

 

 

 

834,166

 

 

 

811,674

 

Noncontrolling interest

 

642

 

 

 

1,155

 

 

 

1,490

 

 

 

1,092

 

 

 

1,536

 

Total stockholders’ equity

 

826,157

 

 

 

871,884

 

 

 

876,633

 

 

 

835,258

 

 

 

813,210

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

$

7,609,658

 

 

$

6,690,650

 

 

$

7,051,812

 

 

$

9,790,123

 

 

$

7,264,515

 

Condensed Consolidated Statements of Operations (Unaudited)

 

(Dollars in Thousands, Except Share and Per Share Data)

 

Three Months Ended

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Interest and dividend income:

 

 

 

 

 

Loans and leases, including fees

$

65,035

 

 

$

63,665

 

$

61,655

Mortgage-backed securities

 

3,864

 

 

 

3,979

 

 

2,123

Other investments

 

3,992

 

 

 

4,412

 

 

4,368

 

 

72,891

 

 

 

72,056

 

 

68,146

Interest expense:

 

 

 

 

 

Deposits

 

141

 

 

 

164

 

 

797

FHLB advances and other borrowings

 

1,137

 

 

 

1,225

 

 

1,350

 

 

1,278

 

 

 

1,389

 

 

2,147

Net interest income

 

71,613

 

 

 

70,667

 

 

65,999

Provision for credit losses

 

186

 

 

 

8,775

 

 

6,089

Net interest income after provision for credit losses

 

71,427

 

 

 

61,892

 

 

59,910

Noninterest income:

 

 

 

 

 

Refund transfer product fees

 

579

 

 

 

2,567

 

 

647

Tax advance product fees

 

1,233

 

 

 

226

 

 

1,960

Payments card and deposit fees

 

25,132

 

 

 

25,541

 

 

22,564

Other bank and deposit fees

 

237

 

 

 

230

 

 

237

Rental income

 

11,077

 

 

 

9,709

 

 

9,885

Gain on sale of securities

 

137

 

 

 

 

 

Gain on sale of trademarks

 

50,000

 

 

 

 

 

Gain (loss) on sale of other

 

(3,465

)

 

 

580

 

 

2,847

Other income

 

1,661

 

 

 

10,689

 

 

7,315

Total noninterest income

 

86,591

 

 

 

49,542

 

 

45,455

Noninterest expense:

 

 

 

 

 

Compensation and benefits

 

38,225

 

 

 

36,222

 

 

32,331

Refund transfer product expense

 

138

 

 

 

3,219

 

 

61

Tax advance product expense

 

183

 

 

 

30

 

 

370

Card processing

 

7,172

 

 

 

7,063

 

 

6,117

Occupancy and equipment expense

 

8,349

 

 

 

8,252

 

 

6,888

Operating lease equipment depreciation

 

8,449

 

 

 

7,865

 

 

7,581

Legal and consulting

 

6,208

 

 

 

14,369

 

 

5,247

Intangible amortization

 

1,488

 

 

 

1,761

 

 

2,013

Impairment expense

 

 

 

 

601

 

 

1,159

Other expense

 

12,224

 

 

 

14,232

 

 

10,808

Total noninterest expense

 

82,436

 

 

 

93,614

 

 

72,575

 

 

 

 

 

 

Income before income tax expense

 

75,582

 

 

 

17,820

 

 

32,790

Income tax expense

 

14,276

 

 

 

1,101

 

 

3,533

Net income before noncontrolling interest

 

61,306

 

 

 

16,719

 

 

29,257

Net income (loss) attributable to noncontrolling interest

 

(18

)

 

 

816

 

 

1,220

Net income attributable to parent

$

61,324

 

 

$

15,903

 

$

28,037

 

 

 

 

 

 

Less: Allocation of Earnings to participating securities(1)

 

953

 

 

 

297

 

 

554

Net income attributable to common shareholders(1)

 

60,371

 

 

 

15,606

 

 

27,483

Earnings per common share

 

 

 

 

 

Basic

$

2.00

 

 

$

0.50

 

$

0.84

Diluted

$

2.00

 

 

$

0.50

 

$

0.84

Shares used in computing earnings per common share

 

 

 

 

 

Basic

 

30,238,621

 

 

 

31,280,162

 

 

32,782,285

Diluted

 

30,260,655

 

 

 

31,299,555

 

 

32,790,895

(1) Amounts presented are used in the two-class earnings per common share calculation.

Average Balances, Interest Rates and Yields

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and in rates. Only the yield/rate reflects tax-equivalent adjustments. Nonaccruing loans and leases have been included in the table as loans carrying a zero yield.

Three Months Ended December 31,

2021

 

2020

(Dollars in Thousands)

Average

Outstanding

Balance

 

Interest

Earned /

Paid

 

Yield /

Rate(1)

 

Average

Outstanding

Balance

 

Interest

Earned /

Paid

 

Yield /

Rate(1)

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and fed funds sold

$

594,614

 

$

560

 

0.37

%

 

$

820,108

 

$

842

 

0.41

%

Mortgage-backed securities

 

1,007,030

 

 

3,864

 

1.52

%

 

 

438,610

 

 

2,123

 

1.92

%

Tax exempt investment securities

 

207,621

 

 

820

 

1.98

%

 

 

333,729

 

 

1,215

 

1.83

%

Asset-backed securities

 

387,567

 

 

1,152

 

1.18

%

 

 

326,315

 

 

1,200

 

1.46

%

Other investment securities

 

279,839

 

 

1,460

 

2.07

%

 

 

221,986

 

 

1,111

 

1.98

%

Total investments

 

1,882,057

 

 

7,296

 

1.58

%

 

 

1,320,640

 

 

5,649

 

1.79

%

Commercial finance

 

2,775,394

 

 

49,021

 

7.01

%

 

 

2,417,691

 

 

45,630

 

7.49

%

Consumer finance

 

316,573

 

 

6,114

 

7.66

%

 

 

239,618

 

 

4,748

 

7.86

%

Tax services

 

33,604

 

 

1,474

 

17.40

%

 

 

25,104

 

 

8

 

0.13

%

Warehouse finance

 

443,506

 

 

6,901

 

6.17

%

 

 

284,199

 

 

4,933

 

6.89

%

Community banking

 

137,898

 

 

1,525

 

4.39

%

 

 

529,085

 

 

6,336

 

4.75

%

Total loans and leases

 

3,706,975

 

 

65,035

 

6.96

%

 

 

3,495,697

 

 

61,655

 

7.00

%

Total interest-earning assets

$

6,183,646

 

$

72,891

 

4.69

%

 

$

5,636,445

 

$

68,146

 

4.82

%

Noninterest-earning assets

 

839,854

 

 

 

 

 

 

845,378

 

 

 

 

Total assets

$

7,023,500

 

 

 

 

 

$

6,481,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing checking(2)

$

389

 

$

 

0.32

%

 

$

162,748

 

$

 

%

Savings

 

80,765

 

 

5

 

0.03

%

 

 

52,198

 

 

2

 

0.01

%

Money markets

 

75,664

 

 

52

 

0.27

%

 

 

52,620

 

 

39

 

0.30

%

Time deposits

 

8,619

 

 

15

 

0.67

%

 

 

17,390

 

 

57

 

1.30

%

Wholesale deposits

 

67,384

 

 

69

 

0.41

%

 

 

261,136

 

 

699

 

1.06

%

Total interest-bearing deposits

 

232,821

 

 

141

 

0.24

%

 

 

546,092

 

 

797

 

0.58

%

Overnight fed funds purchased

 

327

 

 

 

0.31

%

 

 

11

 

 

 

0.25

%

Subordinated debentures

 

73,995

 

 

986

 

5.28

%

 

 

73,822

 

 

1,147

 

6.16

%

Other borrowings

 

18,636

 

 

151

 

3.22

%

 

 

23,870

 

 

203

 

3.37

%

Total borrowings

 

92,958

 

 

1,137

 

4.85

%

 

 

97,703

 

 

1,350

 

5.48

%

Total interest-bearing liabilities

 

325,779

 

 

1,278

 

1.56

%

 

 

643,795

 

 

2,147

 

1.32

%

Noninterest-bearing deposits

 

5,688,563

 

 

 

%

 

 

4,880,352

 

 

 

%

Total deposits and interest-bearing liabilities

$

6,014,342

 

$

1,278

 

0.08

%

 

$

5,524,147

 

$

2,147

 

0.15

%

Other noninterest-bearing liabilities

 

182,916

 

 

 

 

 

 

151,528

 

 

 

 

Total liabilities

 

6,197,258

 

 

 

 

 

 

5,675,675

 

 

 

 

Shareholders' equity

 

826,242

 

 

 

 

 

 

806,148

 

 

 

 

Total liabilities and shareholders' equity

$

7,023,500

 

 

 

 

 

$

6,481,823

 

 

 

 

Net interest income and net interest rate spread including noninterest-bearing deposits

 

 

$

71,613

 

4.61

%

 

 

 

$

65,999

 

4.67

%

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

4.59

%

 

 

 

 

 

4.65

%

Tax-equivalent effect

 

 

 

 

0.02

%

 

 

 

 

 

0.02

%

Net interest margin, tax-equivalent(3)

 

 

 

 

4.61

%

 

 

 

 

 

4.67

%

 

(1) Tax rate used to arrive at the TEY for the three months ended December 31, 2021 and 2020 was 21%.

(2) At December 31, 2020, $162.5 million of the total balance were interest-bearing deposits where interest expense was paid by a third party and not by the Company. On October 1, 2021, the Company reclassified the balances related to that program to noninterest bearing checking due to the product moving to noninterest bearing.

(3) Net interest margin expressed on a fully-taxable-equivalent basis ("net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. The Company believes that it is a standard practice in the banking industry to present net interest margin expressed on a fully taxable equivalent basis and, accordingly, believes the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.

Selected Financial Information

 

As of and For the Three Months Ended

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Equity to total assets

 

10.86

%

 

 

13.03

%

 

 

12.43

%

 

 

8.53

%

 

 

11.19

%

Book value per common share outstanding

$

27.46

 

 

$

27.53

 

 

$

27.46

 

 

$

26.16

 

 

$

24.93

 

Tangible book value per common share outstanding

$

16.12

 

 

$

16.71

 

 

$

16.67

 

 

$

15.31

 

 

$

14.23

 

Tangible book value per common share outstanding excluding AOCI

$

16.10

 

 

$

16.47

 

 

$

16.20

 

 

$

14.91

 

 

$

13.61

 

Common shares outstanding

 

30,080,717

 

 

 

31,669,952

 

 

 

31,919,780

 

 

 

31,926,008

 

 

 

32,620,251

 

Nonperforming assets to total assets

 

0.58

%

 

 

0.92

%

 

 

0.64

%

 

 

0.48

%

 

 

0.73

%

Nonperforming loans and leases to total loans and leases

 

1.16

%

 

 

1.52

%

 

 

1.17

%

 

 

1.17

%

 

 

1.18

%

Net interest margin

 

4.59

%

 

 

4.35

%

 

 

3.75

%

 

 

3.07

%

 

 

4.65

%

Net interest margin, tax-equivalent

 

4.61

%

 

 

4.37

%

 

 

3.77

%

 

 

3.08

%

 

 

4.67

%

Return on average assets

 

3.49

%

 

 

0.88

%

 

 

1.90

%

 

 

2.22

%

 

 

1.73

%

Return on average equity

 

29.69

%

 

 

7.18

%

 

 

18.07

%

 

 

28.93

%

 

 

13.91

%

Full-time equivalent employees

 

1,140

 

 

 

1,124

 

 

 

1,109

 

 

 

1,075

 

 

 

1,038

 

Non-GAAP Reconciliation

 

Adjusted Net Income and Adjusted Earnings Per Share

At and for the three months ended

(Dollars in Thousands)

December 31,

2021

 

September 30,

2020

 

December 31,

2020

Net Income - GAAP

$

61,324

 

$

15,903

 

$

28,037

Less: Gain on sale of trademarks

 

50,000

 

 

 

 

Add: Income tax effect resulting from gain on sale of trademarks

 

12,593

 

 

 

 

Adjusted net income

$

23,917

 

$

15,903

 

$

28,037

Less: Adjusted allocation of earnings to participating securities

 

372

 

 

297

 

 

554

Adjusted Net income attributable to common shareholders

 

23,545

 

 

15,606

 

 

27,483

Weighted average diluted common shares outstanding

 

30,260,655

 

 

31,299,555

 

 

32,790,895

Adjusted earnings per common share - diluted

$

0.78

 

$

0.50

 

$

0.84

Efficiency Ratio

For the last twelve months ended

(Dollars in Thousands)

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Noninterest Expense - GAAP

$

353,544

 

 

$

343,683

 

 

$

330,352

 

 

$

320,070

 

 

$

315,828

 

Net Interest Income

 

284,605

 

 

 

278,991

 

 

 

272,837

 

 

 

266,499

 

 

 

260,386

 

Noninterest Income

 

312,039

 

 

 

270,903

 

 

 

262,111

 

 

 

240,706

 

 

 

247,766

 

Total Revenue: GAAP

$

596,644

 

 

$

549,894

 

 

$

534,948

 

 

$

507,205

 

 

$

508,152

 

Efficiency Ratio, last twelve months

 

59.26

%

 

 

62.50

%

 

 

61.75

%

 

 

63.10

%

 

 

62.15

%

 

 

 

 

 

 

 

 

 

 

Adjusted Efficiency Ratio

 

 

 

 

 

 

 

 

 

Noninterest Expense - GAAP

$

353,544

 

 

$

343,683

 

 

$

330,352

 

 

$

320,070

 

 

$

315,828

 

Net Interest Income

 

284,605

 

 

 

278,991

 

 

 

272,837

 

 

 

266,499

 

 

 

260,386

 

Noninterest Income

 

312,039

 

 

 

270,903

 

 

 

262,111

 

 

 

240,706

 

 

 

247,766

 

Less: Gain on sale of trademarks

 

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Revenue:

$

546,644

 

 

$

549,894

 

 

$

534,948

 

 

$

507,205

 

 

$

508,152

 

Adjusted Efficiency Ratio, last twelve months

 

64.68

%

 

 

62.50

%

 

 

61.75

%

 

 

63.10

%

 

 

62.15

%

About Meta Financial Group, Inc.®

Meta Financial Group, Inc.® ("Meta") (Nasdaq: CASH) is a South Dakota-based financial holding company. At Meta, our mission is financial inclusion for all®. Through our subsidiary, MetaBank®, N.A., we strive to remove barriers to financial access and promote economic mobility by working with third parties to provide responsible, secure, high quality financial products that contribute to the social and economic benefit of communities at the core of the real economy. Meta works to increase financial availability, choice, and opportunity for all. Additional information can be found by visiting www.metafinancialgroup.com.

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