907471--1/11/2008--META_FINANCIAL_GROUP

related topics

{regulation, government, change}

{stock, price, share}

{loss, insurance, financial}

{loan, real, estate}

{property, intellectual, protect}

{product, market, service}

{system, service, information}

{provision, law, control}

{control, financial, internal}

{financial, litigation, operation}

{regulation, change, law}

{competitive, industry, competition}

{personnel, key, retain}

{stock, price, operating}

Changes in technology could be costly. Risks Related to the Company s Business The Company operates in an extremely competitive market, and the Company s business will suffer if it is unable to compete effectively. The loss of key members of the Company s senior management team could adversely affect the Company s business. The Company s loan portfolio includes loans with a higher risk of loss. If the Company s actual loan losses exceed the Company s allowance for loan losses, the Company s net income will decrease. If the Company forecloses on and takes ownership of real estate collateral property,it may be subject to the increased costs associated with the ownership of real property, resulting in reduced revenues. Environmental liability associated with commercial lending could have a material adverse effect on the Company s business, financial condition and results of operations. The Company has identified material weaknesses in its internal controls and has not maintained an effective system of disclosure controls and procedures. As a result, investors and depositors could lose confidence in the Company s financial reporting, which could adversely affect the Company s business, the trading price of the Company s stock and the Company s ability to attract additional deposits. It is anticipated that the Company will be subject to additional duties under the Sarbanes-Oxley Act in fiscal 2008. A breach of information security or compliance breach by one of the Company s agents or vendors could negatively affect the Company s reputation and business. Risks Related to the Company s Stock The price of the Company s common stock may be volatile, which may result in losses for investors. The Company s common stock is thinly traded, and thus your ability to sell shares or purchase additional shares of the Company s common stock will be limited, and the market price at any time may not reflect true value. Future sales or additional issuances of the Company s capital stock may depress prices of shares of the Company s common stock or otherwise dilute the book value of shares then outstanding. Federal regulations may inhibit a takeover, prevent a transaction you may favor or limit the Company s growth opportunities, which could cause the market price of the Company s common stock to decline. The Company may not be able to pay dividends in the future in accordance with past practice. Risks Related to MetaBank and Meta Payment Systems , a division of MetaBank MPS products and services are highly regulated financial products subject to extensive supervision and regulation. While some proposed legislation would benefit MPS, it is possible that new legislation could restrict MPS current operations or change the regulatory environment in which the division s customers operate. MetaBank owns or is seeking a number of patents, trademarks and other forms of intellectual property with respect to the operation of its business and the protection of such intellectual property may in the future require material expenditures. Existing insurance policies may not adequately protect MPS. Costs of conforming products and services to the Payment Card Industry Data Security Standards (the PCI DSS ) are costly and could continue to affect the operations of MPS. The potential for fraud in the card payment industry is significant. Products and services offered by MPS involve many business parties and the possibility of collusion exists. In order to maintain an edge to its products and offerings, MPS must invest significantly in technology and research and development. Visa and MasterCard, as well as other electronic funds networks in which MPS operates, could change their rules.

Full 10-K form ▸

907471--1/11/2008--META_FINANCIAL_GROUP_INC