Marlin Business Services Corp. reported third quarter 2015 net income of $4.8 million, or $0.38 per diluted share, compared to $4.9 million and $0.38 per share for third quarter 2014.
"We are pleased with our results across the board in the third quarter, in particular surpassing $100 million in new originations," said Edward Siciliano, Interim CEO and Chief Sales Officer. "We are well-positioned to continue to execute on our growth plan heading into the fourth quarter of 2015," said Siciliano.
Lease and loan origination volume was $100.5 million for the third quarter 2015, compared to $92.6 million for the quarter ended June 30, 2015. Third quarter lease origination volume was $98.2 million, an increase of $6.3 million compared to second quarter 2015 and $15.8 million compared to the comparable prior year period. Loan origination volume was $2.3 million for the third quarter, compared to $0.7 million for the quarter ended June 30, 2015.
The yield on new lease and loan originations for the quarter was 11.06%, compared to 11.16% for the second quarter ended June 30, 2015.
Net interest and fee margin of 11.96% was down 9 basis points from the second quarter of 2015 due, in part, to the competitive interest rate environment and a slight increase in cost of funds, partially offset by higher fee income. The Company's third quarter 2015 cost of funds was 89 basis points, compared to 85 basis points for second quarter 2015 and 82 basis points for the comparable 2014 period.
The allowance for credit losses as a percentage of total finance receivables was 1.31% at September 30, 2015, and represents 270% of total 60+ day delinquencies.
Finance receivables over 30 days delinquent were 0.75% of the Company's portfolio as of September 30, 2015, 5 basis points higher than the second quarter of 2015 and 6 basis points lower than third quarter 2014. Finance receivables over 60 days delinquent were 0.43% of the Company's portfolio as of September 30, 2015, versus 0.40% at June 30, 2015 and 0.47% at September 2014.
Third quarter net charge-offs were 1.23% of total finance receivables down from 1.84% of total finance receivables for the second quarter ended June 30, 2015 and down from 1.36% a year ago.