First Investors Financial Services Group, Inc. (FIFS.PK), a consumer finance provider, Friday announced a surge in profits for its first quarter due to an increase in net interest income.
Net income for the first quarter was $2.4 million or $0.35 per share, compared to $1.9 million or $0.34 per share in the prior year.Results reflect an increase in interest income, partly offset by higher interest expense and loan-loss provision, as well as lower servicing revenue.
Net interest income for the first quarter increased 22.7% to $14.0 million from $11.4 million last year, helped by an increase in the average portfolio of receivables held for investment.
Provision for credit losses for the quarter increased 19.4% from last year to $4.0 million, primarily due to an increase in the outstanding balance of the portfolio of receivables held for investment and a slight increase in net charge-offs.
Total operating expenses increased 15.3% during the quarter, compared to the year ago period, partly on additional headcount and an increase in expenses related to new loan origination volume.
Shares of First Investors Financial Services last traded at $10.0 on the OTC Markets.
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by RTT Staff Writer
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