Online lender OnDeck released its third quarter 2019 results. It reported net income of $8.7 million, adjusted net income of $7.8 million and gross revenue of $112.6 million. Additionally, during the third quarter OnDeck repurchased 3.2 million shares for $11.0 million under its $50 million common stock repurchase program announced July 29th.
“Our third quarter financial results reflect solid results from our core US lending business and included sequential improvements in origination volume, net interest margin, credit quality metrics and profitability,” said Noah Breslow, OnDeck CEO. “We remain focused on the fundamentals of the core business, and we are advancing our strategic priorities as we relaunched a combined OnDeck brand in Canada, commenced repurchasing shares under our $50 million buyback program and recently announced the signing of Investors Bank as the next ODX client. Additionally, we are making progress in our pursuit of a bank charter.”
Loans and finance receivables grew $20 million, or 2%, sequentially and $110 million, or 10%, from a year ago to $1.2 billion, reflecting growth in all loan types and the closing of the Evolocity transaction in April 2019. Origination volume was $629 million, up 6% from the prior quarter and down 3% from the year-ago quarter reflecting a tightening of underwriting criteria and market dynamics. Compared to the prior quarter, term loan unit volume increased 3%, average term loan size increased slightly to $56 thousand and the average term loan maturity increased to 13.5 months. Demand for lines of credit remained strong, and lines of credit now account for 21% of total loans and finance receivables at quarter-end, up from 15% a year ago.
Gross revenue of $112.6 million was up 2% from the prior quarter and 9% from the year-ago quarter, driven by higher Interest and finance income primarily resulting from portfolio growth. Portfolio Yield of 35.1% increased slightly from 35.0% in the prior quarter and decreased from 36.4% in the year-ago quarter reflecting a lower blended yield on new originations, higher past due balances and lower yields on the Canadian portfolio we acquired.
Total assets increased 2% from the prior quarter and 12% from a year ago to $1.3 billion driven by portfolio growth. Cash and cash equivalents were $59 million, essentially flat with the prior quarter and down from $71 million a year ago. Debt of $871 million increased from $842 million the prior quarter driven by the funding of portfolio growth and share repurchase and increased 7% from $812 million a year ago largely reflecting the funding of loan growth.
