Marlin Business Services Corp (MRLN) has reported a 62.39 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $4.82 million, or $0.38 a share in the quarter, compared with $2.96 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 14.05 percent to $21.26 million from $18.64 million in the previous year period. Net interest income for the quarter rose 15.29 percent over the prior year period to $21.81 million. Non-interest income for the quarter rose 37.04 percent over the last year period to $2.99 million.
Marlin Business Services Corp has made provision of $3.53 million for loan losses during the quarter, up 44.07 percent from $2.45 million in the same period last year.
Efficiency ratio for the quarter improved to 54.58 percent from 68.99 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We concluded 2016 with an outstanding fourth quarter driven by robust origination volume and stable credit quality that helped deliver solid earnings growth,” commented Jeffrey A. Hilzinger, Marlin’s president and chief executive officer. "Total origination volume of $146.1 million was a record for a single quarter, an increase of nearly 14% compared to the previous quarter and up more than 35% from the fourth quarter last year. While strong customer demand in our Equipment Finance business continued to drive overall growth, we also benefited from our strategy to transform Marlin from primarily a micro-ticket equipment lessor into a broader provider of credit products and services to small businesses. Funding Stream, our working capital loan business, also performed well and contributed $11.3 million, or 8%, of total originations in the quarter, and our Franchise Finance business, which caters to the unique financing needs of franchisees, comprised $5.1 million, or 4%, of total fourth quarter originations. Overall, 2016 was a very productive and transformative year for Marlin, and we look forward to building on our success in 2017."
Liabilities outpace assets growth
Total assets stood at $892.16 million as on Dec. 31, 2016, up 15.42 percent compared with $772.98 million on Dec. 31, 2015. On the other hand, total liabilities stood at $729.87 million as on Dec. 31, 2016, up 17.18 percent from $622.85 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $796.72 million as on Dec. 31, 2016, up 16.75 percent compared with $682.43 million on Dec. 31, 2015. Deposits stood at $697.36 million as on Dec. 31, 2016, up 18.61 percent compared with $587.94 million on Dec. 31, 2015.
Investments stood at $5.88 million as on Dec. 31, 2016, down 8.11 percent or $0.52 million from year-ago. Shareholders equity stood at $162.29 million as on Dec. 31, 2016, up 8.09 percent or $12.15 million from year-ago.
Return on average assets moved up 64 basis points to 2.20 percent in the quarter from 1.56 percent in the last year period. At the same time, return on average equity increased 410 basis points to 12.06 percent in the quarter from 7.96 percent in the last year period.
Capital ratios deteriorate
Marlin Business Services Corp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 18.36 percent for the quarter, down from 19.63 percent for the previous year quarter. Equity to assets ratio was 18.19 percent for the quarter, down from 19.42 percent for the previous year quarter. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
