OnDeck Profitable, Again
OnDeck posted a profit this morning, the 2nd time in the last 3 quarters. The company reported $5.8 million in net income for Q2. The average loan size decreased and the average effective interest rate increased (36.1%).
Although the Fed has been gradually raising interest rates, OnDeck’s costs of funds actually went down to 6.6% from 6.8% the prior quarter. This was due to favorable refinancing rates on the $225 million securitization and new $100 million revolving credit facility that closed in April, they said.
OnDeck originated $587 million in loans for the quarter, down slightly from $591 million in Q1.August 7, 2018