Element Financial reported financial results for the three-month and six-month periods ended June 30, 2016. The company noted that pending approval by the company’s shareholders on September 20, 2016, Element will separate into two publicly traded companies effective October 3, 2016. The following report on ECN Capital was excerpted from the Element Financial news release which provided Q2/16 results for both the Fleet Management business and the Vendor Finance business (ECN Capital).

ECN Capital

Total earning assets at June 30, 2016 were $6.6 billion versus $6.6 billion on a currency neutral basis at the end of the previous three-month period and $5.4 billion at June 30, 2015. Originations for Q2/16 were $474.1 million versus $523.5 million for the previous three-month period and $980.4 million for the same period last year.

Net interest income and rental revenue, net of interest expense and provision for credit losses for Q2/16 was $51.2 million versus $60.7 million on a currency neutral basis for the previous three-month period ending March 31, 2016 and $44.6 million at the end of Q2/15.

Syndication and other income increased to $6.7 million for Q2/16 from $6.1 million on a currency neutral basis for the previous three-month period ending March 31, 2016 and decreased from $19.9 million for the same period last year when the company closed ECAF I, its inaugural asset management fund. Operating expenses for the three-month period ending June 30, 2016 decreased to $15.3 million from $17.9 million on a currency neutral basis for the previous three-month period ending March
31, 2016 and $16.6 million for the same period last year.

Before-tax adjusted operating income for the three-month period ending June 30, 2016 was $42.6 million ($0.11 per share) versus $48.9 million ($0.13 per share) on a currency neutral basis for the previous three- month period ending March 31, 2016 and $47.9 million ($0.15 per share) for the same period last year.

“ECN Capital’s Vendor Finance business had solid growth in originations in the U.S. and Canada as economic conditions improved in selected North American market segments which we continue to see reflected in our third quarter pipeline,” said Steven Hudson, ECN Capital’s CEO “This growth was moderated by the deliberate slowdown in the pace of new originations from our rail and aviation verticals together with the accelerated run-off in our civil aviation portfolio as we pivot ECN Capital to an asset management business model.”