Marlin Business Services reported Q1/14 net income of $4.6 million was up 27% compared to $3.7 million for Q1/13. Leased equipment volume of $74.0 million was down 8.6% from $80.9 million for the same quarter in 2013.

“Overall results were favorable with a strong earnings quarter,” said Daniel P. Dyer, co-founder and chief executive officer. “During the early part of the quarter, the severe winter weather affecting most of the country did have a temporary impact on our business with many of our customers unable to conduct business as usual. This led to reduced sales activity as many businesses were unable to overcome the harsh conditions.”

Other Highlights: (Q1/14 versus Q1/13)

• New leases attributable to new asset production totaled 5,385, down 14% from new leases of 6,293 a year earlier. Approval percentage of 65% was down from 67%. The average monthly new business sources of 1,001 was off from 1,132 last year and the implicit yield from new leases of 11.27% was down from 12.29% in 2013.
• Net interest and fee margin of 13.05% was down 45 basis points from the first quarter of 2013. The decrease is due to downward pressure on origination yields due to the increasingly competitive low interest rate environment, as well as channel origination mix.
• Cost of funds improved 20 basis points from the first quarter of 2013. The improvement resulted from the company’s use of lower-cost insured deposits issued by the company’s subsidiary, Marlin Business Bank, its primary funding source. Insured deposits of $538.2 million was up 28% year-over-year.
• Provision for credit losses of $1.73 million was down from $2.16 million or 20% compared to a year earlier.

To view the full Marlin Business Services news release, click here.