Meta Financial Group Inc. of Storm Lake, Iowa, announced that $3.9 million of loans to a road paving company probably will not be repaid.
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In a Securities and Exchange Commission filing Wednesday, the $741 million-asset company said the loans, backed by construction equipment, accounts receivable, and other assets, became impaired Nov. 30.
Meta had already set aside $756,000 for the loans and now plans to increase the reserve to $1.45 million. It estimated its loss would range from $1.05 million to $1.96 million. Meta earned $661,000 in its fourth quarter, which ended Sept. 30.
Meta said in the filing that legal and other costs associated with the loans could reach $175,000.
