Meta Financial Q4 Earnings Rise

(RTTNews) - Meta Financial Group, Inc. (CASH), holding company for MetaBank, Monday reported a rise in earnings for the fourth quarter mostly due to better volume and yield on municipal bonds and higher interest income from mortgage backed securities.

The company earned $3.5 million, or $0.58 per share, compared with $1.7 million, or $0.19 per share, a year earlier. For the three months to September, Meta Financial recorded core earnings of $3.7 million, up from $0.8 million a year earlier. On average, two analysts polled by Thomson Reuters estimated the company's earnings to be $0.63 for the quarter. Analysts' estimates typically exclude one-time items.

Net interest income rose to $9.2 million from $7.4 million in the same period last year, mainly on account of higher volume and yield on municipal bonds. Net interest margin rose to 2.50 percent from 2.16 percent a year ago. Non-interest income remained relatively flat at $13.4 million year-over-year.

Meta Financial also stated that interest income mortgage backed securities increased reflecting lower premium amortization on slower prepay speeds. This is expected to further enhance earnings in 2014, based on the current interest rate environment.

Total revenue rose to $23.24 million from $21.6 million a year ago, matching analysts' estimates for the same. The company said the rise in revenue was mostly due to an increase in card fee income and interest earned on securities.

Loans receivable, net, rose to $380.43 million from $326.98 million a year earlier. On the other hand, deposits declined to $1.315 billion from $1.379 million a year earlier.

Friday, the stock closed at $38.58 on the Nasdaq.