In a news release, Chesswood Group said the third quarter 2012 was “another excellent one,” driven by “strong profitability” at Pawnee Leasing. Net income for the third quarter and year-to-date 2012 was $1.6 million and $5.8 million, respectively up from $1.1 million and $3.9 million for the same year-ago periods.

Chesswood said Pawnee’s portfolio growth was modest this quarter, as the summer proved to be a slower origination period than expected, but noted that early indications for the fall suggest that the summer origination levels may have been an anomaly. Portfolio performance continues to be strong, Chesswood said, and its growing portfolio, coupled with modest charge-off levels combined, once again, to generate excellent profitability for Pawnee.

Highlights from the news release on Pawnee included the following:

. Pawnee focuses on small businesses (with a particular focus in the start-up and “B” credit segment of the U.S. equipment finance market), servicing the lower 48 states through a network of approximately 550 independent brokers.

. As of September 30, 2012, Pawnee administered 8,701 leases and loans in its portfolio, with remaining scheduled payments of approximately $142.0 million (USD) over the next five years.

. Management believes that Pawnee is the leading micro- and small-ticket funding source available to equipment financing brokers and borrowers in the start-up equipment finance market in the U.S. and is a well-recognized player in the “B” credit market.

. Assessed as lower risk business than Pawnee’s traditional “B” business, “B+” borrowers receive funding based on rates that typically range from 14-26%. At September 30, 2012, approximately 57.1% of Pawnee’s lease and loan receivables consisted of the “B+” product. Pawnee expects its “B+” product to continue to grow.

To download Chesswood’s financial report click here.

To download Chesswood’s earnings news release click here.