Marlin Q1 Volume Up Year/Year; Earnings Slip on Provision Charges

Marlin Business Services reported Q1/15 net income of $4.1 million compared to $4.6 million for Q1/14. Marlin said Q1/15 lease and loan production was $81.6 million, compared to $89.5 million in the fourth quarter of 2014 and $74.0 million in first quarter of 2014.

“Origination activity for the quarter is higher year over year on stronger dealer demand,” said Daniel P. Dyer, co-founder and chief executive officer. “The growth of our sales force this quarter is part of an active campaign to invest resources in the core business and our new initiatives. We are also excited about our recently announced small business working capital loan product and its long term growth potential,” said Dyer.

The following highlights were excerpted from the news release:

  • Total average finance receivables of $622 million, up 5% year-over-year
  • Net interest and fee margin as a percentage of average finance receivables was 12.40% for Q1/15, down 65 basis points from a year ago. The year-over-year decrease in margin percentage is a result of the competitively low interest rate environment and a slight increase in cost of funds.
  • The company’s cost of funds was 85 basis points, compared to 86 basis points for the fourth quarter of 2014 and 80 basis points for the first quarter of 2014.
  • The provision for credit losses in Q1/15 was $3.34 million, up 93% from $1.73 million a year earlier.

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

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