MetaBank® Serves as Agent for Distributing Prepaid Debit Cards as part of Economic Impact Program
January 04 2021 - 9:00AM
Meta Financial Group, Inc.® (Nasdaq: CASH) (the “Company”) today
announced that MetaBank® (“MetaBank” or the “Bank”), a wholly-owned
subsidiary of the Company, has again been asked to disburse
Economic Impact Payments (“EIP”) funds through the distribution of
prepaid debit cards, a program authorized by the U.S. Congress
through the Consolidated Appropriations Act of 2021 (“CAA”).
Earlier this year, the Bank dispensed $6.4
billion of the first round of EIP payments under the Coronavirus
Aid, Relief, and Economic Security Act (“CARES Act”) through the
distribution of 3.6 million Bank-issued prepaid cards. Aligned with
the Company’s mission of enabling financial inclusion, the Bank
expects that it will disburse approximately $7 billion of EIP
payments in the second round, with initial payments beginning after
January 4, 2021. Enhanced consumer education relating to this
disbursement will be available to consumers at eipcard.com.
While the EIP program will have a minimal impact
on the Company’s earnings, the balance sheet impact will be
significant due to the large amount of cash on deposit balances
during its fiscal second quarter, resulting in a significant but
temporary reduction of net interest margin, return on assets and
the Company’s leverage capital ratios until funds are spent by
consumers. The Bank does not expect these conditions will be
sustained over the long-term and does not expect any material
impact on its risk-based capital ratios.
The Bank is coordinating with the Office of the
Comptroller of the Currency (the “OCC”) and the Federal Reserve and
has been granted temporary exemption from its requirement to
maintain minimum regulatory capital leverage ratios by the OCC due
to deposits received as part of the EIP program. The Bank expects
to remain in good standing with regulatory agencies, will not be
deemed as undercapitalized, and will not be under any regulatory
restrictions due to participation in this program.
Additional information can be found in the 8-K
filing dated January 4, 2021, that was filed by the Company with
the Securities and Exchange Commission.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect our current views with
respect to, among other things, future events, including those
relating to the disbursement of EIP funds. These statements are
often, but not always, made through the use of words or phrases
such as “may,” “might,” “should,” “could,” “predict,” “potential,”
“believe,” “expect,” “continue,” “will,” “anticipate,” “seek,”
“estimate,” “intend,” “plan,” “projection,” “would,” “annualized”
and “outlook,” or the negative version of those words or other
comparable words or phrases of a future or forward-looking nature.
Accordingly, we caution you that any such forward-looking
statements are not guarantees of future performance and are subject
to risks, assumptions, estimates and uncertainties that are
difficult to predict. Although we believe that the expectations
reflected in these forward-looking statements are reasonable as of
the date made, actual results may prove to be materially different
from the results expressed or implied by the forward-looking
statements as a result of various risks, uncertainties and other
factors. For a discussion of some of the risks and important
factors that could affect our future results and financial
condition, see our U.S. Securities and Exchange Commission filings,
including, but not limited to, our Annual Report on Form 10-K for
the fiscal year ended September 30, 2020. 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.
About MetaBank, N.A.MetaBank®,
N.A., a national bank (“Meta”), is a subsidiary of Meta Financial
Group, Inc.® (Nasdaq: CASH), a South Dakota-based financial holding
company. Meta is a leader in providing innovative financial
solutions to consumers and businesses in under-served niche markets
and believes in financial inclusion for all. Meta’s commercial
lending division works with high-value niche industries,
rapid-growth companies and technology adopters to grow their
businesses and build more profitable customer relationships
nationwide. Meta is one of the largest issuers of prepaid cards in
the U.S., having issued more than a billion cards in partnership
with banks, program managers, payments providers and other
businesses, and offers a total payments services solution that
includes ACH origination, wire transfers, and more. For more
information, visit the MetaBank website.
Investor Relations ContactBrittany Kelley
ElsasserDirector of Investor
Relations605-362-2423bkelley@metabank.com
Media Relations
Contactmediarelations@metabank.com
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