Can Financial Federal (NYSE:FIF) continue reporting solid results? The company has a niche, in that it focuses on small to mid-sized businesses with annual revenues below $25 million and primarily finances industrial commercial equipment. These companies -- because of their size and cyclical nature -- are usually the most vulnerable in down times. But even within our current uncertain market, Financial Federal has not increased its provision for loan losses, which is saying a lot.

For the quarter, net income rose 11%, to $12.7 million, but thanks to share buybacks, diluted earnings per share increased an even better 16%, to $0.50. On the flip side, finance receivables fell more than 9%, to $297 million, and net charge-offs for the quarter inched up 0.02%.

Financial Federal is child's play next to huge rivals such as General Electric (NYSE:GE) and Wells Fargo (NYSE:WFC). Despite such staunch competition, though, the company has been able to survive by focusing on smaller companies and emphasizing customer service and financial expertise -- a staple of smaller companies trying to compete with the big boys. Although the economic environment is uncertain, construction projects have remained strong so far. I look for the company's performance to follow suit.

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Fool contributor Larry Rothman is happy to receive feedback, and he promises to read it when he's not being wrestled by his three children. Feel free to email him at He doesn't have any positions in the companies mentioned. The Fool has a disclosure policy.