Marlin Business Services Corp. reported third quarter 2011 net income of $1.8 million compared to net income of $1.4 million for the same period in 2010, representing a 28% increase. Net income for the nine months ended September 30, 2011 was $4.1 million compared to $4.2 million for the same period in 2010.
Third quarter 2011 lease production was $59.7 million, based on initial equipment cost, up 11% from $53.9 million for the second quarter of 2011 and 67% higher than the third quarter of 2010.
Credit quality continued to improve. Highlights for the third quarter of 2011 include:
• Leases over 30 days delinquent were 1.18% of Marlin’s lease portfolio, which is 13 basis points lower than the second quarter of 2011 and 117 basis points lower than the third quarter of 2010.
• Leases over 60 days delinquent were 0.47% of Marlin’s lease portfolio, which is 9 basis points lower than the second quarter of 2011 and 56 basis points lower than the third quarter of 2010.
• Net leasing charge-offs were 1.73% of average net investment, which is 13 basis points lower than the second quarter of 2011 and 127 basis points lower than the third quarter of 2010.
As of September 30, 2011, the allowance for credit losses as a percentage of total finance receivables was 1.49%, which represented 282% of total 60+ day delinquencies, compared to an allowance for credit losses of 1.74% as of June 30, 2011, which represented 278% of total 60+ day delinquencies.
“Performance this quarter reflects on the favorable growth and profit fundamentals of our business,” says Daniel P. Dyer, Marlin’s co-founder and CEO. “Our confidence in the future is driven by a firm belief that customers will continue to be attracted to Marlin’s quality products and service offerings and management’s proven ability to execute during the current business cycle. Looking ahead, we expect profit growth to be strengthened by the expanded use of low- cost deposit funding to fund balance sheet growth through our bank franchise, Marlin Business Bank,” says Dyer.