Marlin Reports Third Quarter 2020 Results and Declares a Cash Dividend of $0.14 Per Share
Marlin Business Services Corp. (MRLN) reported a net income of $2.7 million, or $0.23 per diluted share, showing recovery from a $5.9 million loss last quarter. The company ended Q3 with $182.4 million in stockholders' equity and a book value of $15.23 per share. However, total sourced origination volume significantly declined by 66% year-over-year to $68.5 million. The company declared a $0.14 dividend, payable on November 19, 2020.
- Net income recovery from a loss of $5.9 million last quarter
- Increased stockholders' equity to $182.4 million
- Declared $0.14 per share dividend, yielding 8.24%
- 66% decline in total sourced origination volume year-over-year
- 11.8% decrease in average total finance receivables year-over-year
- Annualized net charge-offs increased to 4.54% from 1.99% last year
Third Quarter Summary:
- Net income of
$2.7 million , or$0.23 per diluted share, compared with net income of$7.4 million , or$0.60 per diluted share a year ago and net loss of$5.9 million , or$0.50 per diluted share last quarter. Net income on an adjusted basis* of$3.2 million , or$0.27 per diluted share, compared with net income on an adjusted basis of$7.4 million , or$0.60 per diluted share a year ago - Ended the quarter with total stockholders’ equity of
$182.4 million , book value per share of$15.23 and a consolidated equity-to-assets ratio of16.49% - Total 30+ day delinquencies were
2.15% , up from1.27% prior year, but down from3.83% in the second quarter - Expense reduction efforts resulted in a
$3.8 million (22% ) reduction in Salaries and General and Administrative expenses during the third quarter versus prior year - Total sourced origination volume of
$68.5 million , down66.0% year-over-year. Average total finance receivables were$924.6 million , down11.8% year-over-year - Total allowance for credit losses of
$61.3 million ; allowance as a percentage of receivables was6.57% for equipment finance and13.06% for working capital; annualized net charge-offs of4.54% , compared with3.47% in the prior quarter and1.99% in the third quarter last year
MOUNT LAUREL, N.J., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), today reported third quarter 2020 net income of
Commenting on the Company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “Given the significant challenges we faced in the first half of 2020 arising from the COVID-19 pandemic, I am very pleased with the resiliency of our business and our return to profitability in the third quarter. Due to significantly improving portfolio performance and outlook, coupled with the benefits from the cost reductions we implemented earlier in the year, we generated net income of
Mr. Hilzinger concluded, “Third quarter total sourced origination volume of
Results of Operations
Total sourced origination volume for the third quarter of
Net interest and fee margin as a percentage of average finance receivables was
On an absolute basis, net interest and fee income was
The provision for credit losses was
Non-interest income was
The Company’s efficiency ratio for the third quarter was
Marlin recorded a
Portfolio Performance
Allowance for credit losses as a percentage of total finance receivables was
For the three months ended September 30, 2020, the Company recorded a
As a result of the ongoing impact from COVID-19, through the end of the third quarter the Company has completed over 5,200 loan and lease restructure requests from customers who have been impacted by the pandemic. As of September 30, 2020, the Company had
Through the end of the third quarter,
We are closely monitoring the performance of the modified contracts as their deferral period expires. The following table outlines the delinquency status of the Company’s portfolio as of September 30, 2020, including information on restructured contracts in deferral, and restructured contracts that have resumed scheduled payment. Modified contracts are reported in our delinquency and non-accrual data based on their status with respect to their modified terms.
| Net Investment (in thousands) | Delinquency Rate by population | ||||||||||||||||||||
| 30 | 60 | 90+ | Current | Total | 30 | 60 | 90+ | Current | Total | ||||||||||||
| Equipment Finance | |||||||||||||||||||||
| Out of deferral period(1) | 1.41 | % | 1.65 | % | 1.68 | % | 95.26 | % | 100 | % | |||||||||||
| In deferral period | 371 | 733 | — | 16,943 | 18,047 | 2.06 | % | 4.06 | % | — | 93.88 | % | 100 | % | |||||||
| Restructured Portfolio | 1,773 | 2,379 | 1,672 | 111,848 | 117,672 | 1.51 | % | 2.02 | % | 1.42 | % | 95.05 | % | 100 | % | ||||||
| Non-Restructured | 4,430 | 3,348 | 5,148 | 749,869 | 762,795 | 0.58 | % | 0.44 | % | 0.67 | % | 98.31 | % | 100 | % | ||||||
| Total Equipment Finance | 0.70 | % | 0.65 | % | 0.77 | % | 97.87 | % | 100 | % | |||||||||||
| Net Investment (in thousands) | Delinquency Rate by population | ||||||||||||||||||||
| 15 | 30 | 60+ | Current | Total | 15 | 30 | 60+ | Current | Total | ||||||||||||
| Working Capital | |||||||||||||||||||||
| Out of deferral period(1) | 1.95 | % | 2.18 | % | 2.91 | % | 92.96 | % | 100 | % | |||||||||||
| In deferral period(1) | 38 | 65 | 34 | 2,585 | 2,722 | 1.40 | % | 2.39 | % | 1.25 | % | 94.96 | % | 100 | % | ||||||
| Restructured Portfolio | 223 | 272 | 310 | 11,405 | 12,210 | 1.83 | % | 2.23 | % | 2.54 | % | 93.40 | % | 100 | % | ||||||
| Non-Restructured | 41 | 127 | 68 | 14,026 | 14,262 | 0.29 | % | 0.89 | % | 0.48 | % | 98.34 | % | 100 | % | ||||||
| Total Working Capital | 1.00 | % | 1.51 | % | 1.43 | % | 96.06 | % | 100 | % | |||||||||||
________________
(1) Contracts out of modification period reflect those that are no longer in the full or partial deferral period on or prior to September 30, 2020. For the in-deferral population of Equipment Finance, approximately
Equipment Finance receivables over 30 days delinquent were 213 basis points as of September 30, 2020, down 177 basis points from June 30, 2020, and up 86 basis points from September 30, 2019. Working Capital receivables over 15 days delinquent were 393 basis points as of September 30, 2020, down 45 basis points from June 30, 2020, and up 204 basis points from September 30, 2019. Annualized third quarter total net charge-offs were
Portfolio Concentration
We have a well-diversified portfolio across industries and geographical areas for both Equipment Finance and Working Capital. As more municipalities across the U.S. have reduced lockdowns and we have begun to remove our underwriting restrictions on industries and geographical areas, we have included the total industry concentration of our portfolio, as opposed to the highly impacted concentration. The following table reflects our portfolio concentrations by industry where net investment is in excess of
| Equipment Finance | Working Capital | ||||
| Medical | 13.5 | % | 8.6 | % | |
| Miscellaneous Services(1) | 12.0 | % | 8.2 | % | |
| Retail | 10.2 | % | 13.6 | % | |
| Construction | 8.7 | % | 11.2 | % | |
| Restaurants | 7.1 | % | 7.8 | % | |
| Professional Services | 6.6 | % | 6.3 | % | |
| Manufacturing | 5.9 | % | 9.9 | % | |
| Transportation | 5.4 | % | 3.2 | % | |
| Auto Repair | 3.3 | % | 6.1 | % | |
________
(1) Miscellaneous Services is an amalgamation of service related SIC codes, the largest of which are Business Services, Repair Services, and Equipment Rental and Leasing.
Capital and Liquidity
As of September 30, 2020, the Company had
As of September 30, 2020, the Company’s consolidated equity to assets ratio was 16.49 %. This compares to 15.13 % and 16.74 %, in the prior quarter and year ago quarter, respectively. The Company’s Total Risk-based capital ratio was
Corporate Developments
On October 29, 2020, Marlin’s Board of Directors declared a
* Non-GAAP Financial Measures: Net income (loss) on an adjusted basis and adjusted efficiency ratio are financial measures that are not in accordance with U.S. generally accepted accounting principles (GAAP). See “Regulation G – Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures, in accordance with Regulation G.
Conference Call and Webcast
Marlin will host a conference call on Friday, October 30, 2020 at 9:00 a.m. ET to discuss the Company’s third quarter 2020 results. The conference call details are as follows:
Third Quarter 2020 Financial Results Conference Call
| Date: | Friday, October 30, 2020 |
| Time: | 9:00 a.m. Eastern Time / 6:00 a.m. Pacific Time |
| Dial-in: | 1-877-407-0792 (Domestic) |
| 1-201-689-8263 (International) | |
| Conference ID: | 13710845 |
| Webcast: | http://public.viavid.com/index.php?id=141614 |
For those unable to participate during the live broadcast, a replay of the call will also be available from 12:00 p.m. Eastern Time on October 30, 2020 through 11:59 p.m. Eastern Time on November 13, 2020 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13710845.
About Marlin
Marlin is a nationwide provider of capital solutions to small businesses with a mission of helping small businesses fulfill their American dream. Our products and services are offered directly to small businesses and through financing programs with independent equipment dealers and other intermediaries. For more information about Marlin, visit marlincapitalsolutions.com or call toll free at (888) 479-9111.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements represent only the company’s current beliefs regarding future events and are not guarantees of performance or results. All forward-looking statements (including statements regarding expectations of future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” “may,” “could”, “intend” and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others (including but not limited to the impact of the COVID-19 pandemic), affecting our business are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors is contained under the headings “Forward-Looking Statements” and “Risk Factors” in our periodic reports filed with the United States Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are also available in the “Investors” section of our website. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on such forward-looking statements.
Regulation G – Non-GAAP Financial Measures
The Company uses certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company defines net income on an adjusted basis as net income excluding after-tax income and expenses that are deemed to be unusual in nature or infrequent in occurrence and are not indicative of the underlying performance of the business for the period presented. The Company defines diluted earnings per share on an adjusted basis, return on average assets on an adjusted basis and return on average equity on an adjusted basis as the calculation used for the “as reported” number substituting net income as reported with net income on an adjusted basis while using the same denominator in the “as reported” number, where appropriate. The Company defines efficiency ratio on an adjusted basis as the calculation used for the “as reported” ratio adjusting the numerator for any discrete pre-tax adjustments used to present net income on an adjusted basis as well as the impact of pass-through lease expenses that are required to be presented on a gross basis in the income statement, acquisition related expense, and Rep and Warranty liability adjustments, as applicable. The Company adjusts the denominator in the “as reported” ratio for pass-through lease revenue that is required to be presented on a gross basis in the income statement, as applicable. The Company defines General and administrative annualized percent of average finance receivables, on an adjusted basis, as the calculation used for the “as reported” ratio, adjusting the numerator for any General and administrative discrete pre-tax adjustments used to present net income on an adjusted basis, acquisition related general and administrative expenses, Rep and Warranty liability adjustments, and pass-through lease expenses that are required to be presented on a gross basis in the income statement, as applicable. The adjusted ratio uses the same denominator as the “as reported” ratio. The Company defines Non-interest expense divided by average total managed assets, on an adjusted basis, as the calculation used for the “as reported” ratio adjusting the number for any non-interest expense discrete pre-tax adjustments used to present net income on an adjusted basis as well as the impact of pass-through lease expenses that are required to be presented on a gross basis in the income statement, acquisition related expenses, and Rep and Warranty liability adjustments, as applicable. The adjusted ratio uses the same denominator as the “as reported” ratio. The Company believes that these non-GAAP measures are useful performance metrics for management, investors and lenders, because it provides a means to evaluate period-to-period comparisons of the Company's financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance.
Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.
Investor Contacts:
Mike Bogansky, Senior Vice President & Chief Financial Officer
856-505-4108
Lasse Glassen, Addo Investor Relations
lglassen@addoir.com
424-238-6249
-Tables to Follow--
| Marlin Business Services Corp. and Subsidiaries Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except share amounts) | ||||||||
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 5,436 | $ | 4,701 | ||||
| Interest-earning deposits with banks | 189,696 | 118,395 | ||||||
| Total cash and cash equivalents | 195,132 | 123,096 | ||||||
| Time deposits with banks | 8,456 | 12,927 | ||||||
| Restricted interest-earning deposits | 5,771 | 6,931 | ||||||
| Investment securities | 10,761 | 11,076 | ||||||
| Net investment in leases and loans: | ||||||||
| Leases | 357,500 | 426,608 | ||||||
| Loans | 550,553 | 601,607 | ||||||
| Net investment in leases and loans, excluding allowance for credit losses | 908,053 | 1,028,215 | ||||||
| Allowance for credit losses | (61,325 | ) | (21,695 | ) | ||||
| Total net investment in leases and loans | 846,728 | 1,006,520 | ||||||
| Intangible assets | 5,846 | 7,461 | ||||||
| Goodwill | — | 6,735 | ||||||
| Operating lease right-of-use assets | 7,729 | 8,863 | ||||||
| Property and equipment, net | 8,422 | 7,888 | ||||||
| Property tax receivables, net of allowance | 8,580 | 5,493 | ||||||
| Other assets | 8,526 | 10,453 | ||||||
| Total assets | $ | 1,105,951 | $ | 1,207,443 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Deposits | $ | 823,707 | $ | 839,132 | ||||
| Long-term borrowings | 39,833 | 76,091 | ||||||
| Operating lease liabilities | 8,790 | 9,730 | ||||||
| Other liabilities: | ||||||||
| Sales and property taxes payable | 5,706 | 2,678 | ||||||
| Accounts payable and accrued expenses | 25,533 | 34,028 | ||||||
| Net deferred income tax liability | 20,032 | 30,828 | ||||||
| Total liabilities | 923,601 | 992,487 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred Stock, | — | — | ||||||
| Common Stock, | ||||||||
| 12,113,585 shares issued and outstanding at September 30, 2020 and December 31, 2019, | 120 | 121 | ||||||
| respectively | ||||||||
| Additional paid-in capital | 75,893 | 79,665 | ||||||
| Accumulated other comprehensive income (loss) | 93 | 58 | ||||||
| Retained earnings | 106,244 | 135,112 | ||||||
| Total stockholders’ equity | 182,350 | 214,956 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,105,951 | $ | 1,207,443 | ||||
| Marlin Business Services Corp. and Subsidiaries Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except share amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Interest income | $ | 22,398 | $ | 27,708 | $ | 73,111 | $ | 80,673 | |||||||
| Fee income | 2,803 | 3,869 | 8,019 | 11,418 | |||||||||||
| Interest and fee income | 25,201 | 31,577 | 81,130 | 92,091 | |||||||||||
| Interest expense | 4,694 | 6,561 | 15,802 | 18,931 | |||||||||||
| Net interest and fee income | 20,507 | 25,016 | 65,328 | 73,160 | |||||||||||
| Provision for credit losses | 7,204 | 7,662 | 51,160 | 17,781 | |||||||||||
| Net interest and fee income after provision for credit losses | 13,303 | 17,354 | 14,168 | 55,379 | |||||||||||
| Non-interest income: | |||||||||||||||
| Gain on leases and loans sold | 87 | 6,456 | 2,426 | 13,400 | |||||||||||
| Insurance premiums written and earned | 2,082 | 2,230 | 6,612 | 6,538 | |||||||||||
| Other income | 2,044 | 1,676 | 11,172 | 10,573 | |||||||||||
| Non-interest income | 4,213 | 10,362 | 20,210 | 30,511 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and benefits | 8,515 | 10,897 | 25,702 | 34,817 | |||||||||||
| General and administrative | 4,717 | 6,092 | 24,169 | 25,514 | |||||||||||
| Goodwill impairment | — | — | 6,735 | — | |||||||||||
| Intangible assets impairment | 1,016 | — | 1,016 | — | |||||||||||
| Non-interest expense | 14,248 | 16,989 | 57,622 | 60,331 | |||||||||||
| Income (loss) before income taxes | 3,268 | 10,727 | (23,244 | ) | 25,559 | ||||||||||
| Income tax expense (benefit) | 525 | 3,281 | (8,284 | ) | 6,857 | ||||||||||
| Net income (loss) | $ | 2,743 | 7,446 | (14,960 | ) | 18,702 | |||||||||
| Basic (loss) earnings per share | $ | 0.23 | $ | 0.61 | $ | (1.27 | ) | $ | 1.52 | ||||||
| Diluted (loss) earnings per share | $ | 0.23 | $ | 0.60 | $ | (1.27 | ) | $ | 1.51 | ||||||
| Marlin Business Services Corp. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (Dollars in thousands, except share amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net income (loss) as reported | |||||||||||||||
| Deduct: | |||||||||||||||
| Goodwill impairment | — | — | (6,735) | — | |||||||||||
| Intangible assets impairment | (1,016) | — | (1,016) | — | |||||||||||
| Charge in connection with workforce reorganization | (836) | — | (1,713) | (311) | |||||||||||
| Charge in connection with office lease termination | (190) | — | (414) | — | |||||||||||
| Acquisition earn out valuation adjustment | 1,435 | — | 1,435 | — | |||||||||||
| Reversal of charges in connection with executive separation | — | — | — | 218 | |||||||||||
| Tax effect | 152 | — | 2,108 | 24 | |||||||||||
| Total adjustments, net of tax | (455) | — | (6,335) | (69) | |||||||||||
| Net tax benefit resulting from the CARES Act of 2020 | — | — | 3,256 | — | |||||||||||
| Net income (loss) on an adjusted basis | |||||||||||||||
| Diluted earnings (loss) per share | |||||||||||||||
| As reported | ( | ) | |||||||||||||
| As adjusted | ( | ) | |||||||||||||
| Return on Average Assets | |||||||||||||||
| As reported | - | ||||||||||||||
| As adjusted | - | ||||||||||||||
| Return on Average Equity | |||||||||||||||
| As reported | - | ||||||||||||||
| As adjusted | - | ||||||||||||||
| Efficiency Ratio numerator as reported | |||||||||||||||
| Adjustments to Numerator: | |||||||||||||||
| Expense adjustments as seen in Net Income reconciliation | (607) | — | (8,443) | (93) | |||||||||||
| Acquisition related expenses | (286) | (670) | (957) | (2,142) | |||||||||||
| Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
| Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
| Efficiency ratio numerator on an adjusted basis | |||||||||||||||
| Efficiency Ratio denominator as reported | |||||||||||||||
| Adjustments to Denominator: | |||||||||||||||
| Pass-through revenue | (122) | 42 | (5,247) | (5,680) | |||||||||||
| Efficiency Ratio denominator on an adjusted basis | |||||||||||||||
| Efficiency Ratio | |||||||||||||||
| As reported | |||||||||||||||
| As adjusted | |||||||||||||||
| Marlin Business Services Corp. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (Dollars in thousands, except share amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Non-interest Expense / Average total managed assets numerator, as reported | $ | 14,248 | $ | 16,989 | $ | 57,622 | $ | 60,331 | |||||||
| Adjustments to Numerator: | |||||||||||||||
| Expense adjustments as seen in Net Income reconciliation | (607) | — | (8,443) | (93) | |||||||||||
| Acquisition related expenses | (286) | (670) | (957) | (2,142) | |||||||||||
| Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
| Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
| Non-interest Expense / Average total managed assets numerator, on an adjusted basis | $ | 13,131 | $ | 16,310 | $ | 41,177 | $ | 51,845 | |||||||
| Non-interest Expense / Average total managed assets | |||||||||||||||
| As reported | |||||||||||||||
| As adjusted | |||||||||||||||
| General and administrative expense Annualized % of | |||||||||||||||
| Avg. Fin. Receivables numerator, as reported | $ | 4,717 | $ | 6,092 | $ | 24,169 | $ | 25,514 | |||||||
| Adjustments to Numerator: | |||||||||||||||
| Expense adjustments as seen in Net Income reconciliation | 1,245 | — | 1,021 | — | |||||||||||
| Acquisition related expenses | (200) | (230) | (599) | (700) | |||||||||||
| Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
| Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
| General and administrative expense Annualized % of | |||||||||||||||
| Avg. Fin. Receivables numerator, as adjusted | $ | 5,538 | $ | 5,853 | $ | 17,546 | $ | 18,563 | |||||||
| General and administrative expense Annualized % of | |||||||||||||||
| Average Finance Receivables | |||||||||||||||
| As reported | |||||||||||||||
| As adjusted | |||||||||||||||
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
| Net Income (Loss) | ( | ( | ||||||||||||||||||||||
| Annualized Performance Measures: | ||||||||||||||||||||||||
| Return on Average Assets | - | - | ||||||||||||||||||||||
| Return on Average Stockholders' Equity | - | - | ||||||||||||||||||||||
| EPS Data: | ||||||||||||||||||||||||
| Net Income Allocated to Common Stock | ( | ( | ||||||||||||||||||||||
| Basic Earnings (loss) per Share | ( | ( | ||||||||||||||||||||||
| Diluted Earnings (loss) per Share | ( | ( | ||||||||||||||||||||||
| Number of Shares - Basic | 12,054,944 | 11,996,446 | 11,876,147 | 11,760,479 | 11,791,141 | |||||||||||||||||||
| Number of Shares - Diluted | 12,167,962 | 12,118,193 | 11,876,147 | 11,760,479 | 11,832,413 | |||||||||||||||||||
| Cash Dividends Declared per share | ||||||||||||||||||||||||
| New Asset Production: | ||||||||||||||||||||||||
| Direct Originations | ||||||||||||||||||||||||
| Indirect Originations | ||||||||||||||||||||||||
| Total Originations (1) | ||||||||||||||||||||||||
| Equipment Finance Originations | ||||||||||||||||||||||||
| Working Capital Loans Originations | ||||||||||||||||||||||||
| Total Originations (1) | ||||||||||||||||||||||||
| Assets originated for sale in the period | ||||||||||||||||||||||||
| Assets referred in the period | ||||||||||||||||||||||||
| Total Sourced Originations (1) | ||||||||||||||||||||||||
| Implicit Yield on Loans Originated: | ||||||||||||||||||||||||
| Total (1) | ||||||||||||||||||||||||
| Direct | ||||||||||||||||||||||||
| Indirect | ||||||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||||||
| Working Capital | ||||||||||||||||||||||||
| Paycheck Protection Program Loans Originated | — | — | — | |||||||||||||||||||||
| Implicit Yield on PPP Loans Originated | — | — | — | |||||||||||||||||||||
| Assets sold in the period | ||||||||||||||||||||||||
| # of Leases / Loans Equipment Finance | 6,836 | 7,279 | 5,863 | 3,178 | 3,410 | |||||||||||||||||||
| Equipment Finance Approval Percentage | ||||||||||||||||||||||||
| Average Monthly Equipment Finance Sources | 1,067 | 1,033 | 932 | 518 | 547 | |||||||||||||||||||
_________________
(1) Excludes Paycheck Protection Program (PPP) Loans Originated.
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||
| Net Interest and Fee Margin Percentage | ||||||||||||||||||||
| of Average Total Finance Receivables: | ||||||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Fee Income (4) | ||||||||||||||||||||
| Interest and Fee Income | ||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Net Interest and Fee Margin (NIM) | ||||||||||||||||||||
| Cost of Funds (2) | ||||||||||||||||||||
| Interest Income Equipment Finance | ||||||||||||||||||||
| Interest Income Working Capital | 4,389 | 4,545 | 4,932 | 4,095 | 2,526 | |||||||||||||||
| Average Total Finance Receivables | ||||||||||||||||||||
| Average Net Investment Equipment Finance | 995,346 | 977,225 | 947,696 | 928,210 | 886,990 | |||||||||||||||
| Average Working Capital Loans | 53,452 | 57,239 | 61,127 | 51,103 | 33,696 | |||||||||||||||
| End of Period Net Investment in leases and loans, | ||||||||||||||||||||
| net of allowance: | ||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||
| Working Capital | 53,699 | 59,043 | 51,812 | 34,116 | 23,016 | |||||||||||||||
| Total Owned Leases and Loans (3) | 1,034,498 | 1,006,520 | 970,076 | 911,035 | 846,728 | |||||||||||||||
| Assets Serviced for Others | 264,226 | 341,064 | 328,252 | 296,401 | 261,144 | |||||||||||||||
| Total Managed Assets | ||||||||||||||||||||
| Average Total Managed Assets | ||||||||||||||||||||
| Restructured Receivables: | ||||||||||||||||||||
| Payment Deferral Modification Program: | ||||||||||||||||||||
| Equipment Finance | — | — | ||||||||||||||||||
| Working Capital | — | — | 6,987 | 17,876 | 12,210 | |||||||||||||||
| Total - $ | — | — | ||||||||||||||||||
| Total - as a % of Ending Finance Receivables | — | — | ||||||||||||||||||
| Total - # of Active Modified Contracts | — | — | 520 | 5,017 | 5,237 | |||||||||||||||
| Other Restructured Contracts | $ | |||||||||||||||||||
_________________
(2) COF is defined as interest expense for the period divided by average interest-bearing liabilities, annualized
(3) Net investment in total finance receivables includes net investment in Equipment finance leases and loans and Working Capital loans.
(4) Effective January 1, 2020, in connection with the adoption of ASU 2016-13 “CECL”, residual income is no longer recorded as a component of fee income and instead is presented within the allowance for loan loss.
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
| Portfolio Asset Quality | ||||||||||||||||||||||||
| Allowance | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
| % of Total Finance Receivables | ||||||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||||||
| % of Net Investment Equipment Finance | ||||||||||||||||||||||||
| Working Capital | ||||||||||||||||||||||||
| % of Total Working Capital Loans | ||||||||||||||||||||||||
| Net Charge-Offs | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
| % on Avg. Finance Receivables, Annualized | ||||||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||||||
| % on Avg. Finance Receivables, Annualized | ||||||||||||||||||||||||
| Working Capital | ||||||||||||||||||||||||
| % on Avg. Finance Receivables, Annualized | ||||||||||||||||||||||||
| Delinquency | ||||||||||||||||||||||||
| Total Finance Receivables: | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| 60+ Days Past Due | ||||||||||||||||||||||||
| Equipment Finance: | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| 60+ Days Past Due | ||||||||||||||||||||||||
| Working Capital: | ||||||||||||||||||||||||
| 15+ Days Past Due | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
| Delinquency (continued) | ||||||||||||||||||||||||
| Total Finance Receivables: | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| 60+ Days Past Due | ||||||||||||||||||||||||
| Equipment Finance: | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| 60+ Days Past Due | ||||||||||||||||||||||||
| Working Capital: | ||||||||||||||||||||||||
| 15+ Days Past Due | ||||||||||||||||||||||||
| 30+ Days Past Due | ||||||||||||||||||||||||
| Non-Accrual | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||||||
| Working Capital | ||||||||||||||||||||||||
| Total (5) | ||||||||||||||||||||||||
| Equipment Finance | ||||||||||||||||||||||||
| Working Capital | ||||||||||||||||||||||||
_________________
(5) Non-Accrual as of September 30, 2020 includes
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
| Expense Ratios | ||||||||||||||||||||||||
| Salaries and Benefits Expense | ||||||||||||||||||||||||
| As a % of Avg. Fin. Receivables (annualized) | ||||||||||||||||||||||||
| Total personnel end of quarter | 348 | 348 | 339 | 240 | 247 | |||||||||||||||||||
| General and Administrative Expense | ||||||||||||||||||||||||
| As a % of Avg. Fin. Receivables (annualized) | ||||||||||||||||||||||||
| Adjusted General and Administrative Expense | ||||||||||||||||||||||||
| As a % of Avg. Fin. Receivables (annualized) (6) | ||||||||||||||||||||||||
| Non-Interest Expense / | ||||||||||||||||||||||||
| Average Total Managed Assets | ||||||||||||||||||||||||
| Adjusted Non-Interest Expense / | ||||||||||||||||||||||||
| Average Total Managed Assets (7) | ||||||||||||||||||||||||
| Efficiency Ratio | ||||||||||||||||||||||||
| Adjusted Efficiency Ratio (7) | ||||||||||||||||||||||||
_________________
(6) Adjusted general and administrative expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures. See schedule for details.
(7) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures. See schedule for details.
| Marlin Business Services Corp. and Subsidiaries Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
| Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
| Balance Sheet: | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment in Leases and Loans | ||||||||||||||||||||||||
| Initial Direct Costs and Fees | 20,841 | 20,508 | 19,525 | 17,698 | 16,113 | |||||||||||||||||||
| Reserve for Credit Losses | (19,211) | (21,695) | (52,060) | (63,644) | (61,325) | |||||||||||||||||||
| Net Investment in Leases and Loans | ||||||||||||||||||||||||
| Cash and Cash Equivalents | 132,461 | 123,096 | 211,070 | 211,706 | 195,132 | |||||||||||||||||||
| Restricted Cash | 7,576 | 6,931 | 6,474 | 6,072 | 5,771 | |||||||||||||||||||
| Other Assets | 72,881 | 70,896 | 75,917 | 67,402 | 58,320 | |||||||||||||||||||
| Total Assets | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Deposits | 869,257 | 839,132 | 941,996 | 902,191 | 823,707 | |||||||||||||||||||
| Total Debt | 91,739 | 76,091 | 62,193 | 50,890 | 39,833 | |||||||||||||||||||
| Other Liabilities | 77,633 | 77,264 | 70,858 | 62,130 | 60,061 | |||||||||||||||||||
| Total Liabilities | ||||||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||
| Paid-in Capital, net | 80,226 | 79,665 | 75,647 | 75,606 | 75,893 | |||||||||||||||||||
| Other Comprehensive Income (Loss) | 89 | 58 | 20 | 86 | 93 | |||||||||||||||||||
| Retained Earnings | 128,350 | 135,112 | 112,704 | 105,193 | 106,244 | |||||||||||||||||||
| Total Stockholders' Equity | ||||||||||||||||||||||||
| Total Liabilities and | ||||||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||
| Capital and Leverage: | ||||||||||||||||||||||||
| Equity | ||||||||||||||||||||||||
| Debt to Equity | 4.60 | 4.26 | 5.33 | 5.27 | 4.74 | |||||||||||||||||||
| Equity to Assets | ||||||||||||||||||||||||
| Regulatory Capital Ratios: | ||||||||||||||||||||||||
| Tier 1 Leverage Capital | ||||||||||||||||||||||||
| Common Equity Tier 1 Risk-based Capital | ||||||||||||||||||||||||
| Tier 1 Risk-based Capital | ||||||||||||||||||||||||
| Total Risk-based Capital | ||||||||||||||||||||||||
FAQ
What was Marlin's (MRLN) net income for Q3 2020?
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