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Marlin Reports 2014 Net Income Up 20%, $334.8MM Lease Originations

February 05, 2015, 07:00 AM
Filed Under: Corporate Earnings

Marlin Business Services Corp. reported fourth quarter 2014 net income of $4.9 million compared to $3.4 million  for fourth quarter 2013.

For the year ended December 31, 2014, net income is $19.4 million compared to $16.2 million for the year ended December 31, 2013.

"We had a solid year of performance," said Daniel P. Dyer, Co-founder and Chief Executive Officer. "Core earnings grew 19% and we delivered strong asset quality results. In 2015, our focus is to continue to grow our highly profitable lease business along with focusing on new value creating opportunities aimed to serve small businesses," said Dyer.

Fourth quarter 2014 lease production is $89.5 million based on initial equipment cost, compared to $82.5 million in the third quarter of 2014 and $90.9 million in fourth quarter of 2013. Full year lease origination volume is $334.8 million.

Net interest and fee margin as a percentage of average finance receivables is 12.48% for the fourth quarter ended December 31, 2014, down 23 basis points from the third quarter of 2014 and down 88 basis points from a year ago. The 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 increased slightly to 86 basis points, compared to 82 basis points for the third quarter of 2014 and 76 basis points for the fourth quarter of 2013.

On a dollar basis, net interest and fee margin increased 6% to $76.7 million for the year ended December 31, 2014 versus $72.5 million for the year ended December 31, 2013.

The allowance for credit losses as a percentage of total finance receivables is 1.36% at December 31, 2014, and represents 237% of total 60+ day delinquencies.

Finance receivables over 30 days delinquent are 0.85% of the Company's lease portfolio as of December 31, 2014.  Finance receivables over 60 days delinquent are 0.51% of the Company's lease portfolio as of December 31, 2014, up slightly 4 basis points from 0.47% at September 30, 2014.  Fourth quarter net charge-offs are 1.56% of average total finance receivables versus 1.36% for the third quarter ended September 30, 2014 and 1.30% a year ago.

To read the full earnings release, click here.

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