Student loan portfolio weakened, for now, Meta Financial profits
BUSINESS RECORD STAFF Jul 27, 2018 | 8:27 pm
1 min read time150 wordsAll Latest News, Banking & Finance
A $3 million provision for loan losses related to the acquisition of a student loan portfolio pulled at Meta Financial Group Inc. profits in the quarter that ended June 30. The Sioux Falls, S.D.-based parent of MetaBank reported net income of $6.8 million, or 70 cents per share, for the quarter, compared with $9.8 million, or $1.08 per share, in the year-ago period, according to a release. The 31 percent decline in net income was due to the loan-loss provision, $2.4 million in merger and acquisition expenses, and $800,000 in costs related to the early termination of a vendor contract. Meta Financial said it expects to recover a “substantial portion” of premiums related to the package of student loans. The holding company said net total loans increased increased $366 million, or 30 percent, at the end of the quarter. Meta Bank has four branches in the Des Moines metro area.