LM Funding in Tampa, Fla., swung to a net loss from last year amidst ballooning expenses and lower interest income from delinquent association fees.
The company reported a $495,583 loss versus net income of $928,921 in the second quarter of 2015. Losses per share were 15 cents; LM Funding was not publicly traded in 2015.
LM Funding specializes in providing financial services to community associations, including purchasing delinquent accounts from condo associations.
Total revenue dipped 29% year-over-year to $1.44 million, on decreases in interest on delinquent association fees and administrative and late fees. Those decreases were mitigated in part by higher underwriting and origination fees and rental revenue.
Operating expenses more than doubled year-over-year to $2.07 million from $878,238, reflecting higher costs across the board including staff costs and professional fees.
Additionally, interest expenses fell 37% to $130,887.
"Our 2Q 2016 results were impacted by the slowing of traditional real estate transactions as well as foreclosure activity in our target markets," said Bruce Rodgers, LM Funding's chief executive and founder, in a news release Monday.
