MetaBank® Serves as Agent for Distributing Prepaid Debit Cards as part of Economic Impact Program
March 22 2021 - 4:30PM
Meta Financial Group, Inc.® (Nasdaq: CASH) (the “Company”) today
announced that MetaBank®, N.A. (“MetaBank” or the “Bank”), a
wholly-owned subsidiary of the Company, has again been asked to
disburse Economic Impact Payments (“EIP”) through the distribution
of prepaid debit cards under a program authorized by the U.S.
Congress through the American Rescue Plan Act of 2021 (“ARP Act”).
Reinforced by the Company’s mission of enabling
financial inclusion, the Bank will disburse approximately $11
billion of EIP on Bank-issued prepaid cards in the third round,
with initial payments beginning after March 22, 2021. This
distribution builds upon the stimulus provided in the Coronavirus
Aid, Relief, and Economic Security Act (“CARES Act”) from March
2020 and in the Consolidated Appropriations Act of 2021 (“CAA”)
from December 2020. Under the CARES Act, the Bank disbursed $6.4
billion through the distribution of 3.6 million Bank-issued prepaid
cards for the first round of EIP and, through the CAA, disbursed
$7.1 billion of the second round of EIP through the distribution of
8.1 million Bank-issued prepaid cards.
Participation in the EIP program is expected to
have a slightly positive impact on the Company’s earnings. As with
the first and second round of EIP, the U.S. Department of the
Treasury’s Bureau of the Fiscal Service, worked with MetaBank as
the existing Financial Agent for the U.S. Debit Card and Digital
Pay Program to provide an additional mechanism to deliver economic
impact payments into the hands of qualifying individuals across the
nation. As with the second round of EIP, 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 distributing prepaid debit cards as part
of the EIP program as listed above. 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 the card distribution program.
Additional information can be found in the 8-K
filing dated March 22, 2021, that was filed by the Company with the
Securities and Exchange Commission. For more information about EIP
prepaid debit cards, please visit EIPCard.com.
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 and the related effects
on our financial statements and capital ratios. 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, is a subsidiary of
Meta Financial Group, Inc.® (Nasdaq: CASH), a South Dakota-based
financial holding company. MetaBank is a financial enablement
company that works to increase financial availability, choice, and
opportunity for all. MetaBank strives to remove barriers that
traditional institutions put in the way of financial access, and
promote economic mobility by providing responsible, secure, high
quality financial products that contribute to individuals and
communities at the core of the real economy. Additional information
can be found by visiting www.metapay.com or
www.metafinancialgroup.com.
Investor Relations ContactBrittany Kelley
Elsasser605-362-2423bkelley@metabank.com
Media Relations
Contactmediarelations@metabank.com
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