Marlin Business Services Corp. reported third quarter 2014 net income of $4.9 million compared to $4.7 million for third quarter 2013.
"We reported a solid earnings quarter," said Daniel P. Dyer, Co-Founder and Chief Executive Officer. "Our disciplined operating model continues to deliver profitable growth and attractive returns on capital. We remain well positioned to grow our core business and we are excited to launch our Franchise Finance Group," says Dyer.
Selected Highlights:
- Origination volume was $82.5 million, compared to $88.9 million for the quarter ended June 30, 2014. Third quarter origination volume was impacted by seasonal trends along with slack customer demand and slightly lower approval rates.
- Reflective of the current competitive low interest rate environment, the yield on new originations for the quarter was 11.06% compared to 11.35% for the second quarter ended June 30, 2014.
- Net interest and fee margin of 12.71% is up 5 basis points from the second quarter of 2014 due to higher fee income offsetting the impact of recent pricing on the portfolio resulting from the low interest rate environment.
- The Company's cost of funds remained stable at 82 basis points, compared to 81 basis points for the second quarter of 2014.
- The allowance for credit losses as a percentage of total finance receivables was 1.36% at September 30, 2014, and represents 254% of total 60+ day delinquencies.
- Finance receivables over 30 days delinquent were 0.81% of the Company's lease portfolio as of September 30, 2014, 2 basis points higher than the second quarter of 2014 and 2 basis points lower than third quarter 2013. Finance receivables over 60 days delinquent were 0.47% of the Company's lease portfolio as of September 30, 2014, versus 0.51% at June 30, 2014.
- Third quarter net charge-offs were 1.36% of total finance receivables down from 1.71% of total finance receivables for the second quarter ended June 30, 2014 and down slightly from 1.55% a year ago.
To read the full earnings release, click here.