OnDeck announced a Q2/18 net income of $5.8 million, adjusted net income of $10 million and gross revenue of $95.6 million, up 10.3% from $86.7 million in Q2/17. The company had loan loss provision charges of $33.3 million in Q2/18 compared to $32.7 million a year earlier.
The following highlights were excerpted from the news release:
- Originations of $587 million were consistent with the prior quarter reflecting an increase in the number of loans funded and decrease in the average loan size. Originations increased 26% from a year ago with growth in both term loans and lines of credit.
- Net interest margin increased to 32.0% from 31.3% in the prior quarter and 29.3% in the year-ago quarter reflecting improvements in portfolio yield and sequential decrease in cost of funds rate.
- Total assets increased 3% sequentially and from a year ago to $1,072 million driven by loan growth.
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“We are pleased with our second quarter results that reflect continued execution of our strategy,” said Noah Breslow, CEO of OnDeck. “We delivered record net income driven by asset growth and margin expansion, and our investments in risk management continue to pay off as credit metrics remained strong. We also achieved key milestones on our second On-Deck-as-a-Service bank partnership, grew our international business, strengthened our funding profile by closing four significant financing facilities, and advanced the development of our next major lending product – all which position us well for the second half of the year and beyond.”
