Marlin Business Services Corp. reported second quarter 2013 net income of $4.5 million. Net income improved 50% over second quarter 2012. For the six-month period ended June 30, 2013, net income was $8.1 million.
"Our performance results reflect upon the favorable growth trends and attractive operating metrics of our business," says Daniel P. Dyer, co-founder and Chief Executive Officer. "We continue to see attractive growth opportunities by focusing on serving small and midsize businesses and their credit financing needs by delivering quality products with exceptional service," says Dyer.
Second quarter 2013 lease production was $91.4 million based on initial equipment cost, 13% higher than first quarter 2013 and 14% higher than the second quarter of 2012.
Net interest and fee margin of 13.4% is down 14 basis points from the first quarter of 2013 and is up 14 basis points from the second quarter of 2012. The Company's cost of funds improved 12 basis points from the first quarter of 2013 and 84 basis points from the second quarter of 2012. The improvement resulted from the Company's use of lower-cost insured deposits issued by the Company's subsidiary, Marlin Business Bank, as its primary funding source.
The allowance for credit losses as a percentage of total finance receivables is 1.25% at June 30, 2013, and represents 218% of total 60+ day delinquencies.
Leases over 30 days delinquent were 0.95% of the Company's lease portfolio as of June 30, 2013, 4 basis points lower than the first quarter of 2013. Leases over 60 days delinquent were 0.50% of the Company's lease portfolio as of June 30, 2013, down 7 basis points from 0.57% at March 31, 2013. Second quarter net charge-offs were 1.55% of average total finance receivables versus 1.25% for the quarter ended March 31, 2013 and 1.04% a year ago.
The Company's efficiency ratio was 53.0% for the quarter ended June 30, 2013, compared to 54.7% at March 31, 2013 and 60.0% at June 30, 2012.
The Company's consolidated equity to assets ratio is 26.68%. Our risk based capital ratio is 30.86%, which is well above regulatory requirements.