STORM LAKE, Iowa, Oct. 9 /PRNewswire-FirstCall/ -- Meta Financial Group
(Nasdaq: CASH) said today that the Company remains well capitalized by
federal regulatory standards and continues to be unscathed by the steep
decline in valuations in the national subprime mortgage markets.
Meta Financial Group and MetaBank, the company's regional bank unit,
merit the "well capitalized" status -- the highest ranking possible as
defined by bank regulators -- as a result of meeting and exceeding capital
requirements set and monitored by the Federal Deposit Insurance Corporation
(FDIC).
"Thanks to the prudence and foresight of our management team and board
of directors, the Company has completely avoided direct exposure to
subprime mortgage loans and related investments," said J. Tyler Haahr,
chief executive officer of Meta Financial Group. "In addition, our risk
assessment protocols steered us completely away from equity investment in
government-sponsored enterprises such as Fannie Mae or Freddie Mac," he
added.
"As a result, our customers, business partners and investors can
continue in their confidence that Meta is a haven of safety, soundness and
reliability in this period of turmoil in the financial markets," Haahr
continued.
In a separate matter, an 8-K filed yesterday stated the Company
established a reserve for loan losses at September 30, 2008 of $1.8 million
($1.1 million after taxes) to fully anticipate potential costs associated
with fraudulent loans disclosed in its 2008 third quarter 10-Q.
In addition, the 8-K reported a settlement was reached in the last
outstanding lawsuit regarding three affiliated companies involved in
automobile sales, service and financing and the owners thereof. As a result
of this settlement, on a pro rated basis net of previously established
reserves and insurance proceeds already collected, the charge is $1.0
million. As a result of all settlements and related legal and other
expenses related to Dan Nelson entities DNAG and SDAC, the Company expects
to record a final charge of approximately $2.1 million ($1.3 million after
taxes).
Mr. Haahr concluded, "We are pleased to have this litigation resolved
and behind us. Going forward, our strong operating position will allow us
to focus on growing our business and on serving our MetaBank and Payment
Systems customers."
Corporate Profile: Meta Financial Group, Inc(R). (doing business as
Meta Financial Group) is the holding company for MetaBank(TM) and Meta
Trust Company(R). MetaBank(TM) is a federally-chartered savings bank with
four market areas: Northwest Iowa Market, Brookings Market, Central Iowa
Market, Sioux Empire Market; and the Meta Payment Systems(R) prepaid card
division. Thirteen retail banking offices and one administrative office
support customers throughout northwest and central Iowa, and in Brookings
and Sioux Falls, South Dakota.
The Company, and its wholly-owned subsidiaries, MetaBank(TM) and Meta
Trust(R), may from time to time make written or oral "forward-looking
statements," including statements contained in its filings with the
Securities and Exchange Commission, in its reports to shareholders, and in
other communications by the Company, which are made in good faith by the
Company pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995.
These forward-looking statements include statements with respect to the
Company's beliefs, expectations, estimates, and intentions that 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
statements address the following subjects: future operating results;
customer retention; loan and other product demand; important components of
the Company's balance sheet and income statements; growth and expansion;
new products and services, such as those offered by MPS or MetaBank; credit
quality and adequacy of reserves; technology; and our employees. The
following factors, among others, could cause the Company's financial
performance to differ materially from the expectations, estimates, and
intentions expressed in such forward-looking statements: the strength of
the United States economy in general and the strength of the local
economies in which the Company conducts operations; the effects of, and
changes in, trade, monetary, and fiscal policies and laws, including
interest rate policies of the Federal Reserve Board; inflation, interest
rate, market, and monetary fluctuations; the timely development of and
acceptance of new products and services offered by the Company as well as
risks (including litigation) attendant thereto and the perceived overall
value of these products and services by users; the risks of dealing with or
utilizing third-party vendors; the impact of changes in financial services'
laws and regulations; technological changes, including but not limited to
the protection of electronic files or databases; acquisitions; risk in
general, including but not limited to those risks involving the MPS
division; the growth of the Company's business as well as expenses related
thereto; changes in consumer spending and saving habits; and the success of
the Company at managing and collecting assets of borrowers in default.
The foregoing list of factors is not exclusive. Additional discussions
of factors affecting the Company's business and prospects are contained in
the Company's periodic filings with the SEC. The Company expressly
disclaims any intent or obligation to update any forward-looking statement,
whether written or oral, that may be made from time to time by or on behalf
of the Company or its subsidiaries.
SOURCE Meta Financial Group
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Related links:
http://www.metacash.com
CONTACT:
Investor Relations of Meta Financial Group,
+1-712-732-4117
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