Meta Financial Group (CASH) Offers Prelim. Q1 Outlook; Updates on FDIC Guidance

Meta Financial Group (NASDAQ: CASH) announced preliminary unaudited results for its fiscal 2015 first quarter. The Company's management expects to report net income for the three months ended December 31, 2014 between $3.5 million and $3.6 million, and between $4.7 million and $4.8 million excluding approximately $1.3 million ($0.85 million after tax) in net losses on sales of investment securities and approximately $0.5 million ($0.35 million after tax) in expenses related to the Company's acquisition of AFS/IBEX Financial Services which occurred in the Company's fiscal 2015 first quarter. The Company's estimates of net losses on sales of investment securities and acquisition-related expenses were previously disclosed in the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2014.

The Company estimates that average deposits grew approximately 15% from its fiscal 2014 first quarter to its fiscal 2015 first quarter, up from year-over-year growth of 10% for the quarter ended September 30, 2014 and 9% year-over-year growth for the quarter ended June 30, 2014, and expects accelerating deposit growth to continue through its fiscal 2015 second quarter. Further, the Company estimates gross loan growth, excluding purchased loans, of $114.7 million, or 28%, from December 31, 2013 to December 31, 2014, and expects that such gross loan growth will continue in the near term. The Company expects to report results for its fiscal 2015 first quarter on Thursday, January 29, 2015.

In addition, on January 5, 2015, the Federal Deposit Insurance Corporation ("FDIC") published industry guidance (the "Guidance") in the form of Frequently Asked Questions with respect to the categorization of deposit liabilities as "brokered" deposits. Following the Company's review of the Guidance, it has determined, effective for the quarter ended December 31, 2014, to treat up to $1.3 billion of its deposit liabilities as brokered deposits.

Due to the Bank's status as a "well-capitalized" institution under the FDIC's prompt corrective action regulations, and further with respect to the Bank's financial condition in general, the Company does not anticipate that the Guidance will have an adverse impact on the Company's statements of financial condition or statements of operations. However, should the Bank fail to be well-capitalized in the future, the Bank would be prohibited, absent waiver from the FDIC, from utilizing brokered deposits (i.e., may not accept, renew or rollover brokered deposits), which could produce serious adverse effects on the Company's liquidity and financial condition and results of operations.

The estimates discussed above are preliminary and may change. The Company and its auditors have not completed the normal quarterly review procedures for the quarter ended December 31, 2014, and there can be no assurance that the final results for this quarter will not differ from these estimates, including as a result of quarter-end closing procedures or review adjustments, and such changes could be material. These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with Generally Accepted Accounting Procedures or as a measure of the Company's performance.

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