Franklin Credit's 1stQ Earnings Rise by 51%
Franklin Credit Management, a specialty consumer finance company that acquires, originates, services and resolves performing and nonperforming mortgage loans, said that net income increased 51% in the first quarter to $3.1 million.
The company's earnings per share were $0.45, compared to $0.30 in the first quarter of last year. Total revenue increased 85% to $27.9 million, compared to $15.1 million a year earlier. The company's total assets increased 11.7% from a year earlier, totaling $996.1 million at the end of the first quarter.
Jeffrey Johnson, CEO of Franklin Credit Management, said in the company's earnings release that large acquisitions, principally related to the purchase of two large bulk portfolios of performing and nonperforming loans, and increased origination of nonprime mortgage loans through the company's Tribeca Lending Corp. subsidiary, accounted for a substantial increase in net interest income.
The company specializes in making and buying loans that involve an elevated credit risk, including the absence of income documentation, limited credit histories, high levels of consumer debt or past credit difficulties.
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