The Bank Slate


MetaBank to wind down community bank portfolio in 1Q

MetaBank Financial Group in Sioux Falls, S.D., has sold $30.2 million of loans as part of an ongoing plan to wind down its community bank loan portfolio.

The $6.7 billion-asset company said in a press release Wednesday that it sold the loans to Central Bank in Storm Lake, Iowa, earlier this month. 

MetaBank has agreements in place to sell another $161 million in loans, which would reduce the size of the portfolio to less than $8 million.

MetaBank said it expects community bank balances to hit zero by March 31. 

About $108 million of loans in the portfolio are considered substandard and doubtful, with $14.9 million classified as nonaccrual loans. The portfolio represents about 39% of MetaBank‚Äôs substandard and doubtful loans and 44% of its nonaccrual balances. 

The community bank portfolio had $486 million of loans a year earlier.

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