Capital solutions provider Marlin reported third quarter 2019 net income of $7.4 million, or $0.60 per diluted share, compared with $6.1 million, or $0.49 per diluted share, in the prior quarter and $5.9 million, or $0.47 per share, a year ago. Third quarter 2019 net income on an adjusted basis was $7.4 million, or $0.60 per diluted share, compared with $6.4 million or $0.51 per diluted share a year ago.

Commenting on the company’s results, Jeffrey A. Hilzinger, Marlin president and CEO, said, “While lease and loan application volume was up by more than 20%, growth in origination volume was below expectations in both the Equipment Finance and Working Capital Loan products as our approval and booking rates declined during the quarter. However, our capital markets execution was better than anticipated because we took advantage of favorable capital markets conditions and sold more loans and leases than expected given that our origination mix was skewed towards lower-yielding origination flows. As a result of these origination and capital markets activities, our net investment in leases and loans stood at $1.035 billion at quarter-end, up 6.6% from a year ago.”

Other highlights from the quarter included:

• Total sourced origination volume of $201.6 million, up 12.3% year-over-year; direct origination volume of $41.6 million, up 17.2% year-over-year; year-to-date through the end of the third quarter, with total sourced originations of $641.4 million up 22.6% from the same period last year
• Net investment in leases and loans totaled $1.0 billion, up 6.6% from a year ago, and total managed assets ended the third quarter at $1.3 billion, up 18.2% from a year ago
• Total origination yield of 13.38%, up 43 basis points from the prior quarter and up 61 basis points year-over-year
• Annualized net charge-offs of 1.99%, compared with 1.88% in the prior quarter and 1.90% in the third quarter last year
• Net interest and fee margin as a percentage of average finance receivables of 9.55%, up 17 basis points from the prior quarter and down 39 basis points year-over-year

During the quarter, the company also reached agreement with Ryan Melcher to become the company’s deputy general counsel effective November 1, 2019 and to become the company’s general counsel and corporate secretary effective January 1, 2020. Prior to joining Marlin, Melcher was deputy general counsel and corporate secretary of PHH Corporation.