Marlin Business Services (NASDAQ: MRLN) reported Q2 EPS of ($0.43), $0.02 worse than the analyst estimate of ($0.41).

Second Quarter Summary:

• Net loss of $5.9 million, or $0.50 per diluted share, compared with net income of $6.1 million, or $0.49 per diluted share a year ago and net loss of $11.8 million, or $1.00 per diluted share last quarter. Net loss on an adjusted basis* of $5.1 million, or $0.43 per diluted share, compared with net income on an adjusted basis of $6.3 million, or $0.51 per diluted share a year ago
• Ended the quarter with total stockholders’ equity of $181.0 million, book value per share of $15.16 and a consolidated equity-to-assets ratio of 15.13%
• Assisted our customers by restructuring over 5,000 contracts totaling $133.8 million, or 13.7%, of net investment through payment deferrals
• Total sourced origination volume of $67.2 million, down 71.0% year-over-year. Average total finance receivables were $979.3 million, down 5% year-over-year
• Total allowance for credit losses of $63.6 million; allowance as a percentage of receivables was 5.97% for equipment finance and 18.92% for working capital
• Annualized net charge-offs of 3.47%, compared with 3.11% in the prior quarter and 1.88% in the second quarter last year

Commenting on the Company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “We, along with the entire financial services industry, continue to operate in a challenging and uncertain environment arising from the unprecedented impact of the COVID-19 health crisis on our business. Our $5.9 million net loss during the quarter was driven by a significant increase in the allowance for loan losses, as our provision for credit losses was $18.8 million. Despite the loss for the quarter, our capital and liquidity positions remain very strong which enabled us to provide payment deferral contract modifications for a select group of customers. We also maintained our second quarter dividend and took steps to significantly reduce costs and re-align our organizational structure to take advantage of emerging opportunities that we believe will accelerate as the current economic uncertainty dissipates.”

Mr. Hilzinger concluded, “As we manage the business through this challenging environment, we remain focused on our core fundamentals: protecting our employees and our portfolio, helping our customers, maintaining strong liquidity, reducing costs and proactively preparing for the future. I am extremely proud of our employees’ dedication to both our business and our customers during these challenging times. We are thankful for the support of our shareholders, and we look forward to continuing to serve our customers and communities during this time of need and emerging from this crisis in an even stronger competitive position.”

For earnings history and earnings-related data on Marlin Business Services (MRLN) click here.