MetaBank Announces Agreement to Sell Community Bank Division

Meta Financial Group, Inc.® yesterday announced that MetaBank®, a wholly-owned subsidiary of Meta, has entered into an agreement with Central Bank, headquartered in Storm Lake, Iowa, for the sale of MetaBank’s community bank division. Included in the sale are all of MetaBank's community bank branches located in South Dakota and Iowa, as well as deposits and fixed assets related thereto, representing approximately $270 million of deposits.

Also included in the sale are approximately $265 million of loans. Following the closing of the transaction, MetaBank will retain approximately $935 million of loans associated with MetaBank’s community bank division that will run-off over time and will be serviced by Central following the closing. The branches will be rebranded as Central Bank following the closing of the transaction.

“We are pleased to reach this agreement with Central Bank, which will allow both companies to focus on their core businesses and provide the highest level of service and value to the customers, employees and shareholders,” said Brad Hanson, president and CEO of Meta Financial Group. "This transaction aligns with Meta's strategy to focus on improving yields from our national lending platforms, growing deposits in our payments division and improving efficiencies by streamlining operations; while serving key markets often overlooked by traditional banks."

“MetaBank employs experienced and valued bankers who represent our vision of community banking," said said Tim Brown, chairman of the board and CEO of Central. "We look forward to working together to make a stronger community bank, bringing new opportunities to our communities, customers and employees. We are pleased to say customers can carry out banking transactions as usual.” 

Pursuant to the terms of the agreement, Central has agreed to offer employment to all current MetaBank community bank employees. The closing of the transaction is subject to the satisfaction or waiver of certain conditions, the receipt of third party and regulatory approval and satisfaction of customary closing conditions. The transaction is expected to close late in the first calendar quarter of 2020. Read more.

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