Form 8-K
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
_________________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The
Securities
Exchange Act of 1934
Date
of
report (Date of earliest event reported):
March 15, 2006
________________
Meta
Financial Group, Inc.
(Exact
name of registrant as specified in its charter)
_______________
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Delaware
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0-22140
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42-1406262
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(State
or other jurisdiction of
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(Commission
File
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(IRS
Employer
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Incorporation)
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Number)
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Identification
No.)
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Fifth
at Erie, Storm Lake, IA 50588
(Address
of principal executive offices)(Zip Code)
Registrant’s
telephone number, including area code:
(712) 732-4117
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4 (c))
___________________
TABLE
OF CONTENTS
Section
1 - Registrant’s Business and Operations
Item
1.01 Entry
into a Material Definitive Agreement
On
March
15, 2006, a subsidiary of the Registrant, MetaBank, entered into a Settlement
Agreement (the “Settlement Agreement”) with First Indiana Bank, N.A. (“First
Indiana”). The Settlement Agreement was entered into in order to resolve all
disputes as between First Indiana and MetaBank with respect to
MetaBank’s loans to three entities involved in auto sales, service, and
financing, and their principal owner (collectively, the “Loans”). MetaBank was
the lead lender and servicer of the Loans, which totaled approximately $32.0
million. MetaBank sold approximately $22.2 million of the Loans to ten
participating financial institutions, including First Indiana. The Loans and
matters relating to the Loans have been previously described in earlier filings
by the Registrant.
MetaBank
agreed in the Settlement Agreement to pay First Indiana a lump sum payment
of
$461,000 upon execution of the Settlement Agreement, in exchange for First
Indiana’s agreement to convey to MetaBank 2.72% of the loan to the financing
entity described above, including all of First Indiana’s rights with respect to
such percentage of that loan. Of the $16.9 million loan to the financing entity,
First Indiana had taken $6.0 million, or 35.45% of that particular loan. Upon
execution of the Settlement Agreement, First Indiana’s undivided interest was
reduced to 32.72% of the total loan balance, or $5,539,000, and MetaBank’s
interest was increased by $461,000. As described in its earlier filings, the
Registrant has already taken a provision for loan losses related to the
Loans.
The
parties also acknowledged in the Settlement Agreement, with respect to a
separate participation agreement unrelated to the Loans and pursuant to which
MetaBank purchased from First Indiana an interest in a loan to an unrelated
auto
finance company (the “Unrelated Participation Loan”), that First Indiana will
pay to MetaBank within three days of the Settlement Agreement the lump sum
of
$2,423,049.87, which amount represents full repayment of principal with interest
to MetaBank with no discount.
The
Settlement Agreement also contained mutual releases by both parties running
to
the other party, as well as other customary terms and conditions.
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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META
FINANCIAL GROUP, INC.
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By:
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/s/
Jonathan M. Gaiser
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Jonathan
M. Gaiser
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Senior
Vice President, Secretary, Treasurer and
Chief
Financial Officer
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Dated:
March 15, 2006