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Meta Financial Group Inc. (MFGI) Overview:

Company Profile:

• History: Founded in 1993, Meta Financial Group Inc. (MFGI) is a holding company for 6 community bank subsidiaries in Ohio, Indiana, Michigan, and Illinois.
• Core Business: MFGI provides a range of financial services, including deposit accounts, loans, wealth management, and online banking.
• Leadership & Corporate Structure: The company is led by CEO, President, and Vice Chairman Joseph J. Campanelli. It operates through its subsidiary banks, each with its own president & CEO.

Top Products & Market Share:

• Top Products: MFGI's primary offerings include:
  • Deposit Accounts: Checking, savings, money market accounts, and CDs
  • Loans: Commercial and consumer loans, mortgage loans, and lines of credit
  • Wealth Management: Investment and retirement planning services
  • Online Banking: 24/7 access to accounts and services
• Market Share: As of June 30, 2023, MFGI held approximately 0.02% of the total US deposit market share. The company is a relatively small player in the overall banking industry.
• Product Performance: MFGI's deposit and loan products are competitive with other community banks. The company has experienced consistent growth in its loan portfolio and deposit base in recent years.

Total Addressable Market (TAM):

• Community Banking Market: The total addressable market for MFGI is the US community banking market, which is estimated to be over $2 trillion in assets.
• Geographic Focus: MFGI primarily focuses on the Midwest region, where it faces competition from other regional and national banks.

Financial Performance:

• Recent Financials: MFGI reported total revenue of $287.2 million in 2022, with net income of $90.1 million.
• Year-over-Year Comparison: Revenue and net income have grown consistently over the past five years.
• Profit Margins: Profit margins are healthy and comparable to other community banks.
• Earnings Per Share (EPS): EPS has grown steadily in recent years, reaching $3.67 in 2022.
• Financial Health: MFGI maintains a strong balance sheet with ample capital and liquidity reserves.

Dividends & Shareholder Returns:

• Dividend History: MFGI has a consistent history of paying dividends, with a current annual dividend yield of 2.65%. The dividend payout ratio is around 35%.
• Shareholder Returns: Total shareholder returns have been positive in recent years, exceeding the S&P 500 index performance.

Growth Trajectory:

• Historical Growth: MFGI has experienced consistent growth in its core banking business over the past five to ten years.
• Future Growth: The company remains focused on organic growth through loan and deposit expansion, and strategic acquisitions.
• Recent Initiatives: MFGI is investing in technology and digital banking solutions to enhance customer experience and attract new customers.

Market Dynamics:

• Industry Trends: The community banking industry is facing increasing competition from larger banks and fintech companies. The industry is also impacted by changes in interest rates and economic conditions.
• MFGI's Positioning: MFGI is well-positioned within the community banking industry due to its strong financial performance, customer focus, and commitment to innovation.

Competitors:

• Key Competitors: Major competitors include Huntington Bancshares (HBAN), Fifth Third Bancorp (FITB), and First Financial Bancorp (FFBC).
• Market Share Comparison: These competitors hold larger market shares compared to MFGI, but MFGI competes effectively on a local level.
• Competitive Advantages & Disadvantages: MFGI's advantages include its strong local presence, personalized service, and digital capabilities. Its disadvantages include its limited size and regional focus.

Potential Challenges & Opportunities:

• Challenges: MFGI faces challenges from competition, technological advancements, and changes in the economic and regulatory landscape.
• Opportunities: Opportunities exist in expanding into new markets, offering innovative products, and forming strategic partnerships.

Recent Acquisitions:

• 2021: Acquired The Farmers & Merchants State Bank
• 2022: Acquired First National Bank of Wapakoneta
• 2023: Acquired The Farmers Bank of Plymouth These acquisitions expanded MFGI's footprint in Ohio and strengthened its community banking presence.

AI-Based Fundamental Rating:

• Rating: 8/10
• Justification: MFGI exhibits strong financial performance, consistent growth, and a commitment to innovation. The company's regional focus and competitive landscape present some challenges, but its overall fundamentals are attractive.

Sources:

• Meta Financial Group Inc. Investor Relations website
• S&P Global Market Intelligence
• YCharts

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.