AFS/IBEX acquired by South Dakota-based MetaBank

Dallas-based AFS/IBEX Financial Services Inc., along with AFS/IBEX Financial Services Inc. of California and American Financial Services Funding Corp, has agreed to sell all of its loan portfolio and related assets to MetaBank, the bank subsidiary of Meta Financial Group Inc.

Terms of the transaction, which is subject to customary closing conditions, were not disclosed in the Oct. 14 announcement.

The acquisition has been approved by the boards of directors of each company and is expected to close by the end of 2014.

Founded in 1986 by The Rigg Group, a Fort Worth-based holding company, AFS is one of the top 10 insurance premium finance companies in the United States. The Rigg Group formerly held such iconic Texas brands as Wm. Rigg Inc. REALTORS (sold in 1999 to Coldwell Banker) and Wm. Rigg Co. Insurance and RISC Inc. (sold in 2007 to Hub International).

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AFS originates loans through a network of more than 1,300 independent insurance agencies to provide short-term, collateralized financing that facilitates the purchase of insurance for commercial property, casualty and liability risk. AFS has primary offices in downtown Dallas with an additional location in Newport Beach., Calif.

The company will maintain both office locations and a workforce of more than 50 employees.

“Among the leading mid-sized banks in the nation, MetaBank is a perfect partner to help us grow our business,” said AFS President John Holsan. Holsan will serve as president of MetaBank’s new insurance premium finance division that will continue to be known as AFS.

MetaBank, founded in 1954, is a federally chartered savings bank headquartered in Sioux Falls, South Dakota. MetaBank’s primary banking businesses are deposits, loans and other financial products for commercial, agricultural and retail customers. The company operates 11 bank offices in four market areas in central and northwest Iowa; Brookings, South Dakota; and Sioux Falls.

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MetaBank ranks fifth in the nation as a top-performing, mid-sized bank, according to the American Banking Association Journal, and ranks in the top 25 of the Top 200 Community Banks and Thrifts, according to American Banker Magazine.

AFS was advised by Colonnade Advisors LLC, Bracewell & Giuliani LLP and the law firm of Whitaker Chalk Swindle & Schwartz PLLC. MetaBank was advised by Sterne, Agee & Leach Inc. and the law firm of Katten Muchin Rosenman LLP.

Betty Dillard