Marlin Achieves Record Volume in 2019, Direct Originations Up 29% Y/Y

Marlin Business Services reported Q4/19 net income of $8.4 million with $7.4 million in the prior quarter, and $6.4 million a year ago.

Fourth Quarter Summary:

  • Net income of $8.4 million was up 31.0% from $6.4 million a year ago and up from $7.4 million, share last quarter.
  • Total sourced origination volume of $236.5 million, up 9.3% year-over-year; Direct origination volume of $50.4 million, up 24.9% year-over-year
  • Net investment in leases and loans totaled $1.0 billion, relatively flat from a year ago, and total managed assets ended the fourth quarter at $1.3 billion, up 15.7% from a year ago

Full Year 2019 Summary:

  • Net income of $27.1 million was up 8.6% from $25.0 million
  • Total sourced origination volume of $877.9 million, up 18.7% from a year ago; Direct origination volume of $184.6 million, up 29% year-over-year

Commenting on the company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “Marlin concluded 2019 with strong performance in the fourth quarter highlighted by record origination volume, disciplined expense management and excellent earnings growth. Total origination volume of $236.5 million increased 9.3% year-over-year, driven by increasing customer demand for both our equipment finance and working capital loan products, as well as solid growth in our direct origination channel.  For the full year, total origination volume of $877.9 million grew 18.7% year-over-year, more than double the prior year’s growth rate.  We also delivered solid earnings growth despite an increase in provisions for credit losses driven by higher delinquencies and charge-offs.  We continue to closely monitor the portfolio and are making appropriate adjustments to ensure optimal risk-adjusted portfolio performance.”

Hilzinger continued, “While the origination growth we experienced demonstrates the significant demand that exists for our financing products, market conditions during the quarter created both an increasingly competitive pricing environment and a favorable capital markets environment. These market conditions allowed us to offset continued yield compression with exceptionally strong capital markets execution. I also remain extremely pleased with our ability to carefully manage expenses as evidenced by decreases in our adjusted efficiency ratio, which improved on both a sequential quarter and year-over-year basis. As a result, fourth quarter net income expanded to $8.4 million, or $0.69 per diluted share, up 31% from a year ago.  For the full year net income of $27.1 million, or $2.20 per diluted share, was up 9% from a year ago. Overall, I believe that the fundamentals of our business remain strong as we enter 2020 and that Marlin is well-positioned for another year of profitable growth.”

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