Chesswood Group announced its results for the three and nine-months ended September 30.

“We had another strong quarter of originations in all of our businesses, which, along with the strength of the U.S. dollar, drove the growth in our gross receivables to more than $550 million, from $500 million at June 30.” said Barry Shafran, Chesswood’s president and CEO. “In fact, both of our equipment finance businesses, Pawnee and Blue Chip, experienced record third quarter application flow and origination volumes.”

“Our adjusted EBITDA and operating income increased by almost 50% compared to Q3 last year, a reflection of our portfolio growth and the acquisition in March this year of Blue Chip and EcoHome, our Canadian finance businesses” said Shafran.

Net Income for the quarter was impacted by an increase in Chesswood’s non-cash allowance for doubtful accounts of $1.8 million as well as by a non-cash mark-to-market loss on interest rate swaps of $1.3 million. The company’s allowance on its U.S. based finance receivables is calculated according to a formula based largely on the change in 30-day past due delinquency, which increased during the quarter primarily in the start-up segment of the lease portfolio, one of the company’s highest yielding products.