Margins, Volume Drive Marlin’s Q2 Earnings 95% Higher
Marlin Business Services reported second quarter 2012 net income of $3.0 million was up from $1.53 million, or 95% higher than one year earlier. For the six-month period ended June 30, 2012, net income was $4.6 million, up from $2.3 million for the same period in 2011.
Marlin said second quarter 2012 lease production was $80.4 million based on initial equipment cost, up 11% from $72.4 million for the first quarter of 2012 and 49% higher than the second quarter of 2011.
The average number of monthly originating sources reached 1,128, up 11% from 1,016 for the first quarter of 2012 and an increase of 37% from the second quarter a year ago.
Net interest and fee margin declined slightly in the second quarter of 2012, to 13.22% from 13.35% in the first quarter of 2012, and has increased 101 basis points from the second quarter a year ago.
Marlin said driving the attractive margin is the company’s cost of funds, which improved to 1.72%, a decrease of 46 basis points from the first quarter of 2012 and 177 basis points from the second quarter of 2011. The improvement resulted from the company’s continuing shift in funding mix to lower-cost insured deposits issued by the company’s subsidiary, Marlin Business Bank.
“We’re delighted with the solid profit momentum and strong operating fundamentals of our business,” says Daniel P. Dyer, Marlin’s co-founder and chief executive officer. Dyer added, “Reflecting our favorable outlook for the business, we have increased the quarterly cash dividend to $0.08 per share.”
“The continued expansion of our base of customers, combined with the ongoing growth and development of the sales force, are key drivers of our sales momentum,” says Ed Siciliano, Marlin’s chief sales officer.
“Asset quality remains strong with lower delinquencies and charge-offs reported for the quarter,” says George Pelose, Marlin’s chief operating officer.
To read Marlin Business Services’ news release click here.