Marlin Business Services reported Q2/17 net income of $4.6 million. Before charges related to a regulatory matter concerning certain payment processing practices in effect prior to February 2016, Q2/17 net income was $4.8 million compared to $4.5 million for Q2/16.

Combined Equipment Finance, Funding Stream and referral origination volume for the second quarter of $167.8 million was up 34.3% from a year ago. Equipment Finance origination volume of $140.7 million in the second quarter was up 23.8% from $113.6 million in Q2/16.

The company also experienced solid Funding Stream origination volume in Q2/17 totaling $14.8 million, up from $7.9 million in the same period a year ago. Referral volume totaled $12.3 million, up from $3.5 million in Q2/16, and included significant contributions from Horizon Keystone Financial which was acquired in Q1/17.

The following highlights were excerpted from the news release:

• Investment in leases and loans (before deferred costs and loss allowance) of $858.7 million, up 4.1% from the prior quarter and 18.0% from a year ago
• Total new origination loan and lease yield of 12.21%, up 35 basis points from the prior quarter and up 43 basis points year over year

Commenting on the company’s results, Jeffrey A. Hilzinger, Marlin’s president and CEO, said, “Marlin continued to deliver strong performance in the second quarter.  In addition to benefitting from robust customer demand, our results reflect solid execution of our Marlin 2.0 strategy that is leading to improvements in scale, enhanced operational efficiencies, sustained profitable growth and more attractive returns on equity.  Total second quarter sourced origination volume of $167.8 million was up more than 34% from a year ago and was a record for the second quarter. This growth was broad-based and driven by the strength of our Equipment Finance business. Production from Horizon Keystone Financial, which was acquired earlier in the year, also continues to exceed our expectations. In addition, origination volume for Funding Stream, our working capital loan business, increased to $14.8 million, or 9% of total sourced originations in the quarter, up from $7.9 million, or 6%, of total sourced originations a year ago. Thanks to this strong origination activity, Investment in Leases and Loans increased to $858.7 million, up more than 4% compared to the previous quarter and up 18% from a year ago. Further, we achieved this strong growth while adhering to our strict underwriting standards, and the portfolio performance remained within our targeted range.”

Hilzinger concluded, “During the quarter, the board of directors authorized a stock repurchase program of up to $10 million of Marlin common stock. Given our strong balance sheet and operating momentum, we believe this, in combination with our regular stock dividend and our continued investment in the Marlin 2.0 strategy, are appropriate uses of the company’s capital resources and underscores our confidence in our growth prospects.”