MetaBank

MetaBank
Public
Traded as NASDAQ: CASH
Industry Banking, financial services, insurance
Founded Storm Lake, Iowa
United States (1954 (1954))[1]
Founder Stanley H. Haahr
Headquarters Sioux Falls, South Dakota, United States
Area served
 Nationwide
Key people
 J. Tyler Haahr
(CEO)
Products Consumer banking, commercial banking, credit cards, finance and insurance, mortgage loans, prepaid cards, ATM sponsorship, ACH origination
Number of employees
 549 (2015)
Website MetaBank.com

MetaBank is a federally chartered savings bank, Member Federal Deposit Insurance Corporation. Headquartered in Sioux Falls, South Dakota, MetaBank operates in both the Banking and Payments industries: MetaBank, its traditional retail banking operation; Meta Payment Systems, its electronic payments division; AFS/IBEX, its insurance premium financing division; and Refund Advantage, its tax refund-transfer software division.

MetaBank, the retail banking division, operates 10 retail branches in four market areas: Central Iowa; Storm Lake, Iowa; Brookings, South Dakota.; and Sioux Falls, South Dakota. Based in Sioux Falls, MetaBank offers traditional banking services designed to serve the needs of individual, agricultural and business depositors and borrowers.

Meta Payment Systems (MPS) is a recognized leader in the prepaid card industry and provides innovative payment solutions delivered nationally in collaboration with market-leading partners. MPS focuses on offering specific product solutions in the following areas: prepaid cards, credit products, electronic funds transfer and Automated Teller Machine sponsorship.

AFS/IBEX provides short-term, collateralized financing to facilitate the purchase of insurance for commercial property, casualty and liability risk. Based in Dallas, Texas, AFS/IBEX originates loans through a network of independent insurance agencies.

Refund Advantage, based in Louisville, Kentucky, provides tax refund-transfer software for Electronic Return Originators (EROs) and their customers. Their software is used in over 10,000 locations nationwide and processes over one million refund-transfers a year.

History

Founding

MetaBank’s predecessor, Storm Lake Savings and Loan Association, was founded in 1954 by Stanly H. Haahr and 34 depositors with an original subscribed capital of $10,000.[2] In 1957, the bank was converted to a federal charter and its name was changed to First Federal Savings and Loan Association of Storm Lake.

The bank purchased the Bradford Hotel property in Storm Lake at Fifth and Erie in 1970, and construction was completed on the bank’s new headquarters in 1972. By 1993, the bank changed its name from First Federal Savings and Loan Association of Storm Lake to First Federal Savings Bank of the Midwest, a subsidiary of First Midwest Financial, Inc.[3] On Sept. 20, 1993, 1.9 million shares of stock in First Midwest Financial, Inc., were issued at $10 per share and began trading on the NASDAQ stock market under the symbol “CASH.”[4]

Acquisitions

In 1994, Brookings Federal Bank, a federal savings bank in Brookings, S.D., was acquired and operated as the Brookings Federal Bank Division of First Federal Savings Bank of the Midwest.[5] In 1996, Iowa Savings Bank in Des Moines was purchased and operated as the Iowa Savings Bank Division of First Federal Savings Bank of the Midwest.[6]

Meta Payment Systems (MPS) division logo
Meta Payment Systems (MPS) division logo

Expansion

First Federal opened the doors to its first Sioux Falls office – a temporary facility – on Sept. 6, 2000.[7] In 2004, the Meta Payment Systems (MPS) division was established in Sioux Falls.[8] The next year, in 2005, all bank divisions under First Federal changed their names to MetaBank, inhabiting four market areas: Central Iowa; Northwest Iowa; Brookings, S.D.; and Sioux Falls, S.D.[9]

AFS/IBEX division logo
AFS/IBEX division logo

In 2009, MetaBank introduced a new retail product line and the MPS division became the leading issuer of rebate and gift cards in the United States and worldwide[10] and one of the top issuers of credit card network branded prepaid cards.[11]

In 2014, MetaBank announced the acquisition of AFS/IBEX Financial Services Inc., an insurance premium financing company based in Dallas, Texas.[12][13]

Refund Advantage logo
Refund Advantage logo

In 2015, the AFS/IBEX division was selected by the Independent Insurance Agents of Texas (IIAT) to be its exclusive premium finance company of choice.[14] In 2015, MetaBank announced the acquisition of Refund Advantage, a tax refund-transfer software company based in Louisville, Kentucky.

Corporate governance

MetaBank was founded as Storm Lake Savings and Loan Association in 1954 by Stanley H. Haahr, who remained on the Board of Directors until 1990 and served as board chairman from 1981-90.[15] James S. Haahr assumed the role of President and Chief Executive Officer of Meta Financial Group, Inc., in 1993.[16] J. Tyler Haahr took over the position of President and CEO in 2005.[17] And in 2011, James S. Haahr announced his resignation as Chairman of the Board. J. Tyler Haahr was named Chairman and Chief Executive Officer.[18] Brad Hanson has served as President of the Meta Payment Systems division since its inception in 2004.[19] He was appointed President of Meta Financial Group and MetaBank in 2013.[20]

Glen Herrick joined MetaBank in 2013 and serves as Executive Vice President and Chief Financial Officer of Meta Financial Group and MetaBank.[21]

Cindy Smith joined MetaBank in 2015 and serves as Executive Vice President and Head of Technology and Operations for MetaBank.[22]

Locations

Metabank branch in Storm Lake

MetaBank is headquartered in Sioux Falls, S.D. The retail banking division has locations in four market areas: Central Iowa; Storm Lake, Iowa; Brookings, S.D.; and Sioux Falls, S.D. There are branch locations in the following cities:[23]

· Brookings, S.D.

· Des Moines, Iowa

· Sioux Falls, S.D.

· Storm Lake, Iowa

· Urbandale, Iowa

· West Des Moines Iowa

The Meta Payment Systems division is headquartered in Sioux Falls, S.D.[24] The AFS/IBEX division is headquartered in Dallas, Texas, with an additional office in Newport Beach, Calif.[25] Refund Advantage is headquartered in Louisville, Kentucky.[26]

Awards and honors

MetaBank was included among the Sandler O’Neill and Partners “Bank and Thrift Sm-All Stars – Class of 2012,” which ranked the top 25 performing small-cap banks in the country.[27] MetaBank was also named fifth in the nation among top-performing, mid-size banks by the American Banking Association Journal in 2013.[28] MetaBank ranked among the top 25 among the nation’s community banks and thrifts, according to American Banker Magazine, in 2013 and was named to the Top 200 Community Banks and Thrifts list again in 2014.[29][30] MetaBank was named one of the top performing banks with assets of $1B to $10B by American Banker Magazine in 2015.[31] In 2016, Bank Director Magazine named MetaBank the number one top growth bank of 7,000 banks nationwide.[32] MetaBank received an investment grade rating by Kroll Bond Rating Agency in 2016.[33]

Meta Payment Systems division cofounder and MetaBank President Brad Hanson received a 2009 Industry Achievement Award from Paybefore in 2009.[34] MetaBank’s Senior Vice President and Chief Legal Officer John Hagy was named among the Top 10 Payments Lawyers by Paybefore in 2015.[35]

Controversy

In October 2010, MetaBank was ordered by bank regulators of the federal Office of Thrift Supervision (since subsumed as part of the Office of the Comptroller of the Currency) to halt use of its iAdvance lending program associated with some prepaid MetaBank-issued debit cards, claiming the loans violated unfair or deceptive trade practice laws.[36][37] The iAdvance program offered MetaBank debit card holders with the direct deposit feature an option to withdraw or spend funds when their account held an insufficient balance, with the shortage to be advanced by a payday loan secured by their next upcoming direct deposit. The loans had a maximum term of 35 days and a transaction fee of $2.50 for each $20 increment of the advance.[38]

References

  1. ↑ "MetaBank History". MetaBank.com. Retrieved 2015-05-11.
  2. ↑ "Stanley H. Haahr". Retrieved 2016-07-01.
  3. ↑ "InstitutionHistory". www.ffiec.gov. Retrieved 2016-07-01.
  4. ↑ Lynch, Peter (2012-03-13). Beating the Street. Simon and Schuster. ISBN 9781451687064.
  5. ↑ "FDIC: Institution Directory - External Confirmation". www2.fdic.gov. Retrieved 2016-07-01.
  6. ↑ "FDIC: Institution Directory - External Confirmation". www2.fdic.gov. Retrieved 2016-07-01.
  7. ↑ Inc., First Midwest Financial,. "First Midwest Financial, Inc. Reports First Quarter Earnings". www.prnewswire.com. Retrieved 2016-07-01.
  8. ↑ "Meta Payment Systems Inc.: Private Company Information - Businessweek". www.bloomberg.com. Retrieved 2016-07-01.
  9. ↑ "InstitutionHistory". www.ffiec.gov. Retrieved 2016-07-01.
  10. ↑ "Sioux Falls Business Journal". Argus Leader. Retrieved 2016-07-01.
  11. ↑ "Meta Payment Systems® and NetSpend® Announce iAdvanceSM Partnership" (Press release). Business Wire. Retrieved 2016-10-23.
  12. ↑ "MetaBank completes acquisition of insurance premium finance company - Business Record". Business Record. Retrieved 2016-07-01.
  13. ↑ "MetaBank to buy insurance premium finance company". Retrieved 2016-07-01.
  14. ↑ "AFS/IBEX, a division of MetaBank®, named IIAT Advantage partner (Meta Financial Group Inc)". article.wn.com. Retrieved 2016-07-01.
  15. ↑ "Stanley H. Haahr". Retrieved 2016-07-01.
  16. ↑ "undefined undefined undefined undefined: Executive Profile & Biography - Businessweek". www.bloomberg.com. Retrieved 2016-07-01.
  17. ↑ "J. Tyler Haahr: Executive Profile & Biography - Businessweek". www.bloomberg.com. Retrieved 2016-07-01.
  18. ↑ Inc., Meta Financial Group,. "Meta Financial Group, Inc.® Announces Retirement of Chairman James S. Haahr". www.prnewswire.com. Retrieved 2016-07-01.
  19. ↑ "Brad Hanson: Executive Profile & Biography - Businessweek". www.bloomberg.com. Retrieved 2016-07-01.
  20. ↑ Inc., Meta Financial Group,. "Meta Financial Group, Inc. ® Announces Executive Appointments". www.prnewswire.com. Retrieved 2016-07-01.
  21. ↑ "Meta Financial Group, Inc. ® Announces Executive Appointments". www.metafinancialgroup.com. Retrieved 2016-07-01.
  22. ↑ "Meta Financial Group, Inc.® Announces Cindy Smith as Executive Vice President, Head of Technology and Operations". www.metafinancialgroup.com. Retrieved 2016-07-01.
  23. ↑ "Locations - MetaBank". www.metabank.com. Retrieved 2016-07-01.
  24. ↑ "Google Maps". Google Maps. Retrieved 2016-07-01.
  25. ↑ "About Us - AFS/IBEX a division of MetaBank®". afsibex.com. Retrieved 2016-07-01.
  26. ↑ "Corporate Profile - MetaFinancial Group". www.metafinancialgroup.com. Retrieved 2016-07-01.
  27. ↑ "25 Sandler All Stars 09/05/12" (PDF).
  28. ↑ "ABA Article" (PDF).
  29. ↑ "Slow Progress: Our Ranking of the Top 200 Community Banks". American Banker Magazine. Retrieved 2016-07-01.
  30. ↑ "Rising Tide: The Top 200 Community Banks". American Banker Magazine. Retrieved 2016-07-01.
  31. ↑ "More Double-Digit Goodness: Our 2015 Ranking of Mid-Tier Banks". American Banker. Retrieved 2016-07-01.
  32. ↑ "Who Are the Top Growth Banks?". Retrieved 2016-07-01.
  33. ↑ "KBRA - Kroll Bond Rating Agency, Inc.". www.kbra.com. Retrieved 2016-07-01.
  34. ↑ "2009 Industry Achievement Awards: Brad Hanson (April 2009) - Paybefore". 2009-04-01. Retrieved 2016-07-01.
  35. ↑ "Paybefore Names Top 10 Payments Lawyers (Feb. 25, 2015) - Paybefore". 2015-02-25. Retrieved 2016-07-01.
  36. ↑ "Regulators Hit MetaBank for 52 Million Over iAdvance Program".
  37. ↑ "Regulators hit MetaBank for $5.2 million over iAdvance program". Retrieved 2016-07-01.
  38. ↑ "MetaBank Reports Cost of OTS Order | Bank Talk". banktalk.org. Retrieved 2016-07-01.
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