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Marlin Reports Second Quarter 2018 Earnings and Declares a Cash Dividend of $0.14 Per Share

August 2, 2018 5:00 PM

Second Quarter Summary:

MOUNT LAUREL, N.J., Aug. 02, 2018 (GLOBE NEWSWIRE) -- Marlin (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), today reported second quarter 2018 net income of $6.5 million, or $0.52 per diluted share, compared with net income of $4.6 million, or $0.36 per share a year ago. Second quarter net income on an adjusted basis was $6.5 million, or $0.52 per diluted share, compared with $4.8 million or $0.38 per diluted share a year ago.

Commenting on the Company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “Marlin delivered another strong performance this past quarter highlighted by solid growth in origination volume, stable credit quality and expanding profitability. Excluding referral volume, total origination volume was $172.2 million for the quarter compared with $155.5 million last year, resulting in a year-over-year increase of 11%. Growth in the quarter was driven by continued traction in our Direct origination channel which focuses on providing financing to our existing customers. During the quarter, Direct origination volume increased to $36.3 million compared with $23.6 million last year, resulting in a year-over-year increase of 54%. Our Investment in Leases and Loans increased to $963.1 million during the quarter, up 12% from a year ago, and our total managed portfolio grew to $1.1 billion, up 18% from a year ago. We also remained keenly focused on maintaining our disciplined underwriting standards as evidenced by our portfolio performance which remained stable and within expectations during the quarter.”

Mr. Hilzinger continued, “Subsequent to the end of the quarter, we successfully completed a $201.7 million asset-backed term securitization which both increases and diversifies our funding capabilities. Most importantly, the transaction substantially improved our capital efficiency by releasing approximately $25 million of capital through a deeper advance rate against the financed assets which will ultimately lead to higher returns on equity by allowing us to continue to grow and scale within our existing capital base.”

Results of OperationsTotal origination volume (excluding referral volume) for the second quarter of $172.2 million was up 11% from a year ago. Direct origination volume of $36.3 million in the second quarter was up 54% from $23.6 million in the second quarter of 2017. Indirect origination volume in the second quarter of 2018 was $135.9 million, up slightly from $131.8 million in the same period a year ago. Referral volume totaled $5.6 million, down from $12.3 million in the second quarter last year, largely due to the transition of leases originated by Marlin’s Horizon Keystone Financial division to Marlin’s balance sheet over the past year.

Net interest and fee margin as a percentage of average finance receivables was 10.31% for the second quarter, down 12 basis points from the first quarter of 2018 and down 56 basis points from a year ago. With the execution of the ABS transaction, the Company expects the margin to compress slightly. The Company’s interest expense as a percent of average finance receivables increased to 159 basis points compared with 149 basis points for the previous quarter and 125 basis points for the second quarter of 2017, primarily because of the rising interest rate environment.

On an absolute basis, net interest and fee income was $24.1 million for the second quarter of 2018 compared with $22.7 million for the second quarter last year. The increase continues to reflect the strong growth in the portfolio and the underlying earnings power of the business as the Company continues to grow and scale.

Non-interest income was $4.6 million for the second quarter of 2018, compared with $5.2 million in the prior quarter and $4.1 million in the prior year period. The decrease in Non-interest income compared to the prior quarter was primarily due to a $0.8 million decrease in gains-on-sale and referral fee income from the Company’s capital markets activities due to lower asset sales, partially offset by an increase of $0.2 million in servicing fee income. The year-over-year increase in non-interest income is primarily due to a $0.5 million increase in gains-on-sale, $0.3 million increase in Insurance related income and a $0.4 million increase in servicing fee income, partially offset by a decrease of $0.6 million in referral income.

Non-interest expense was $16.0 million for the second quarter of 2018, compared with $16.6 million in the prior quarter and $15.2 million in the second quarter last year. The decrease in Non-interest expense compared to the prior quarter was primarily due to long term incentives and other benefit related expense as well as decreases in marketing and legal fees partially offset by increases in the servicing asset expense. The year-over-year increase in non-interest expense is primarily due to employee related expense increases and an increase in commissions tied to originations and acquisitions as well as an increase in servicing asset expense.

The Company’s efficiency ratio for the second quarter was 55.6% compared with 56.7% in the second quarter last year. Excluding acquisition related sales commissions and intangible amortization, the efficiency ratio in the second quarter of 2018 was 54.3% as compared to 55.2% in the second quarter last year. Marlin expects its efficiency ratio to continue to improve as the Company leverages its fixed costs through continued portfolio growth and from continued operational efficiencies generated by its various process renewal initiatives.

Marlin recorded an income tax expense of $2.1 million, representing an effective tax rate of 24.1% for the second quarter of 2018, compared with an income tax expense of $2.7 million, representing an effective tax rate of 37.5% for the second quarter of 2017.

Portfolio PerformanceAllowance for credit losses as a percentage of total finance receivables was 1.62% at June 30, 2018 compared with 1.68% at March 31, 2018 and 1.46% at June 30, 2017, with the year-over-year increase driven by generally higher portfolio delinquency and net charge-offs.

Finance receivables over 30 days delinquent were 0.96% of the Company’s total finance receivables portfolio as of June 30, 2018, down 9 basis points from March 31, 2018 and up 4 basis points from June 30, 2017. Finance receivables over 60 days delinquent were 0.55% of the Company’s total finance receivables portfolio as of June 30, 2018, down 9 basis points from March 31, 2018 and up 3 basis points from June 30, 2017. Annualized second quarter net charge-offs were 1.84% of average total finance receivables versus 1.68% in the first quarter of 2018 and 1.65% a year ago. The overall increase in delinquency and charge-offs year-over-year is attributed to a return to a more normal credit environment.

As of June 30, 2018, the Company’s consolidated equity to assets ratio was 17.03%. This compares to 17.17% and 16.67%, in the prior quarter and year ago quarter, respectively.

Corporate DevelopmentsMarlin’s Board of Directors today declared a $0.14 per share quarterly dividend. The dividend is payable August 23, 2018, to shareholders of record on August 13, 2018. Based on the closing stock price on August 1, 2018, the annualized dividend yield on the Company’s common stock is 1.82%.

Subsequent to the end of the quarter, Marlin announced that it completed a $201.7 million asset-backed notes (“Notes”) term securitization. This transaction was Marlin's eleventh term securitization and its first since 2010. As with all prior term securitizations, this financing provides the Company with fixed-cost borrowing and will be recorded on its balance sheet as a financing transaction. The Notes, which were issued in seven classes, have fixed interest rates ranging from 2.55% to 5.02% (with a weighted averaged fixed interest rate of 3.41%) and legal final maturity dates ranging from July 22, 2019 to May 20, 2025. Marlin intends to use proceeds from the transaction to fund the growth of its portfolio of loans and leases and for general corporate purposes.

Business OutlookThe Company is maintaining guidance for the full year ending December 31, 2018 as follows:

Commenting on Marlin’s business outlook for the full year, Mr. Hilzinger said, “Given our origination volume through the first half of 2018, we’ve updated our original guidance of 20% growth to a range of 15% to 20% growth. The primary driver underlying this change is the near-term impact of open sales positions resulting from several restructuring initiatives that we’ve implemented within our salesforce to better position it for future growth. In addition, due to the lag we are experiencing in passing through increases in base interest rates, our decision to upsize the recent securitization due to better-than-expected execution and updated assumptions regarding product mix, we’ve adjusted our net interest margin guidance from a range of 10.00% to 10.25% to a range of 9.75% to 10.00%. And, finally, as a result of our strong EPS performance during the first half of the year, we have increased the bottom of our guidance range by $0.05 and we now expect full year earnings in a range of $2.00 to $2.10 per share. Overall, we are pleased with our recent performance and anticipate that our continued focus on execution will help drive profitable growth in 2018 and beyond.”

Conference Call and Webcast Marlin will host a conference call on Friday, August 3, 2018 at 9:00 a.m. ET to discuss the Company’s second quarter 2018 results. If you wish to participate, please call 877-407-0792 approximately 10 minutes in advance of the call time. The conference ID will be: “Marlin.” The call will also be webcast on the Investor Relations page of the Company’s website, www.marlinfinance.com. An audio replay will also be available on the Investor Relations section of Marlin’s website for 45 days.

About Marlin Business Services Corp.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. Marlin Business Services Corp. is publicly traded (NASDAQ: MRLN). For more information about Marlin, visit www.marlinfinance.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. All forward-looking statements (including statements regarding 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,” “intend” and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others, 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 in our filings with the Securities and Exchange Commission, including the sections captioned “Risk Factors” and “Business” in the Company’s Form 10-K filed with the Securities and Exchange Commission. 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.

Regulation G – Non-GAAP Financial Measures In this release 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 an after-tax charge related to a reserve for restitution in connection with certain payment processing practices in effect prior to February 2016 and charges for associated legal and consulting fees, the after-tax hurricane credit and insurance loss reserves, the after-tax executive severance (Chief Operating Officer), and the net tax benefit from the tax cut and jobs act, as applicable. 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 the reserve for restitution in connection with certain payment processing practices in effect prior to February 2016, hurricane insurance loss reserves, and executive severance, as applicable. The Company believes that these non-GAAP measures are useful performance metrics for management, investors and lenders, because it 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:Taylor KampSenior Vice President & Chief Financial Officer856-505-4108

Lasse GlassenAddo Investor Relations[email protected] 424-238-6249

MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2018 2017
(Dollars in thousands, except per-share data)
ASSETS
Cash and due from banks$4,435 $3,544
Interest-earning deposits with banks 94,792 63,602
Total cash and cash equivalents 99,227 67,146
Time deposits with banks 8,414 8,110
Securities available for sale (amortized cost of $11.0 million and $11.7 million at
June 30, 2018 and December 31, 2017, respectively) 10,757 11,533
Net investment in leases and loans:
Net investment in leases and loans, excluding allowance for credit losses 978,679 929,271
Allowance for credit losses (15,570) (14,851)
Total net investment in leases and loans 963,109 914,420
Intangible assets 1,022 1,128
Goodwill 1,160 1,160
Property and equipment, net 3,915 4,204
Property tax receivables 7,175 6,292
Other assets 18,532 26,167
Total assets$1,113,311 $1,040,160
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits$863,568 $809,315
Other liabilities:
Sales and property taxes payable 7,624 2,963
Accounts payable and accrued expenses 31,880 31,492
Net deferred income tax liability 20,597 16,741
Total liabilities 923,669 860,511
Stockholders’ equity:
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued — —
Common Stock, $0.01 par value; 75,000,000 shares authorized;
12,438,931 and 12,449,458 shares issued and outstanding at June 30, 2018 and 124 124
December 31, 2017, respectively
Additional paid-in capital 83,474 82,588
Stock subscription receivable (2) (2)
Accumulated other comprehensive loss (73) (96)
Retained earnings 106,119 97,035
Total stockholders’ equity 189,642 179,649
Total liabilities and stockholders’ equity$1,113,311 $1,040,160

MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2018 2017 2018 2017
(Dollars in thousands, except per-share data)
Interest income$23,964 $21,567 $47,243 $42,098
Fee income 3,876 3,745 7,835 7,275
Interest and fee income 27,840 25,312 55,078 49,373
Interest expense 3,711 2,612 7,110 4,952
Net interest and fee income 24,129 22,700 47,968 44,421
Provision for credit losses 4,256 4,314 8,868 8,198
Net interest and fee income after provision for credit losses 19,873 18,386 39,100 36,223
Non-interest income:
Insurance premiums written and earned 1,993 1,751 3,932 3,457
Other income 2,634 2,328 5,929 4,375
Non-interest income 4,627 4,079 9,861 7,832
Non-interest expense:
Salaries and benefits 9,527 9,070 19,550 18,461
General and administrative 6,449 6,110 13,020 16,280
Non-interest expense 15,976 15,180 32,570 34,741
Income before income taxes 8,524 7,285 16,391 9,314
Income tax expense 2,057 2,732 3,739 3,221
Net income$6,467 $4,553 $12,652 $6,093
Basic earnings per share$0.52 $0.36 $1.02 $0.49
Diluted earnings per share$0.52 $0.36 $1.01 $0.48
Cash dividends declared per share$0.14 $0.14 $0.28 $0.28

MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Three Months Ended June 30, Six Months Ended June 30,
2018 2017 2018 2017
(Dollars in thousands, except per-share data) (Dollars in thousands, except per-share data)
(Unaudited) (Unaudited)
Net income as reported$6,467 $4,553 $12,652 $6,093
Deduct:
Charge in connection with regulatory matters - (405) - (4,816)
Tax effect - 155 - 1,849
Charge in connection with regulatory matters, net of tax - (250) - (2,967)
Net Income on an adjusted basis$6,467 $4,803 $12,652 $9,060
Diluted earnings per share as reported $0.52 $0.36 $1.01 $0.48
Diluted earnings per share on an adjusted basis $0.52 $0.38 $1.01 $0.72
Return on Average Assets as reported 2.41% 1.90% 2.39% 1.30%
Return on Average Assets on an adjusted basis 2.41% 2.01% 2.39% 1.94%
Return on Average Equity as reported 13.93% 11.19% 13.81% 7.48%
Return on Average Equity on an adjusted basis 13.93% 11.80% 13.81% 11.12%
Efficiency Ratio as reported 55.56% 56.69% 56.32% 66.49%
Efficiency Ratio on an adjusted basis 55.56% 55.17% 56.32% 57.27%
Net Income on an Adjusted Basis is defined as net income excluding a first quarter 2017 $4.2 million charge associated with recent regulatory matters and charges for associated legal and consulting fees in the amounts of $0.3 million and $0.4 million for the first quarter and second quarter 2017, respectively. 2018 did not have any reconciling items reported on an adjusted basis.

SUPPLEMENTAL QUARTERLY DATA
(Dollars in thousands, except share amounts)
(Unaudited)
Quarter Ended:6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018
Net Income:
Net Income$4,553 $3,305 $15,894 $6,185 $6,467
Annualized Performance Measures:
Return on Average Assets1.90% 1.31% 6.21% 2.37% 2.41%
Return on Average Stockholders' Equity11.19% 8.01% 38.08% 13.69% 13.93%
EPS Data:
Net Income Allocated to Common Stock$4,444 $3,225 $15,532 $6,065 $6,352
Number of Shares - Basic12,242,805 12,220,381 12,187,666 12,188,906 12,199,089
Basic Earnings per Share$0.36 $0.26 $1.27 $0.50 $0.52
Number of Shares - Diluted12,249,530 12,257,922 12,230,858 12,245,019 12,269,989
Diluted Earnings per Share$0.36 $0.26 $1.27 $0.50 $0.52
Cash Dividends Declared per share$0.14 $0.14 $0.14 $0.14 $0.14
New Asset Production:
Direct Originations$23,648 $23,444 $31,610 $30,869 $36,338
Indirect Originations$131,812 $123,977 $148,468 $128,833 $135,865
Total Originations$155,460 $147,421 $180,078 $159,702 $172,203
Equipment Finance Originations$140,656 $133,646 $163,562 $141,646 $155,385
Funding Stream Loans Originations$14,804 $13,775 $16,516 $18,056 $16,818
Total Originations$155,460 $147,421 $180,078 $159,702 $172,203
Assets originated for sale in the period$0 $0 $0 $0 $1,801
Assets referred in the period$12,324 $13,024 $6,466 $4,201 $5,638
Assets sold in the period$12,364 $9,649 $36,037 $22,981 $16,890
Implicit Yield on Direct Originations21.81% 21.44% 19.22% 19.47% 18.59%
Implicit Yield on Indirect Originations10.44% 10.43% 9.93% 10.75% 10.54%
Total Implicit Yield on Total Originations12.21% 12.18% 11.59% 12.44% 12.24%
Implicit Yield on Equipment Finance Originations9.96% 9.99% 9.46% 9.99% 9.94%
Implicit Yield on Funding Stream Loans Originations33.62% 33.51% 32.73% 31.68% 33.52%
# of Leases / Loans Equipment Finance7,704 7,447 8,346 7,764 8,238
Equipment Finance Approval Percentage55% 56% 56% 56% 56%
Average Monthly Equipment Finance Sources1,247 1,185 1,244 1,190 1,240
Net Interest and Fee Margin (NIM)
Percent of Average Total Finance Receivables:
Interest Income10.33% 10.37% 10.31% 10.19% 10.24%
Fee Income1.79% 1.75% 1.71% 1.73% 1.66%
Interest and Fee Income12.12% 12.12% 12.02% 11.92% 11.90%
Interest Expense1.25% 1.39% 1.45% 1.49% 1.59%
Net Interest and Fee Margin (NIM)10.87% 10.73% 10.57% 10.43% 10.31%
Risk Adjusted NIM (1)9.22% 9.00% 8.70% 8.74% 8.47%
Cost of Funds (2)1.37% 1.49% 1.58% 1.63% 1.76%
Interest Income Equipment Finance$19,338 $19,840 $20,382 $20,639 $21,082
Interest Income Funding Stream Loans$2,039 $2,213 $2,322 $2,321 $2,463
Average Total Finance Receivables$835,516 $862,718 $891,819 $913,804 $936,007
Average Net Investment Equipment Finance$810,961 $836,713 $864,665 $884,946 $905,583
Average Funding Stream Loans$24,555 $26,005 $27,154 $28,858 $30,424
End of Period Net Investment Equipment Finance$837,520 $861,102 $887,328 $900,763 $933,261
End of Period Funding Stream Loans$25,183 $25,328 $27,092 $29,864 $29,848
Total Owned Net Investment in Leases and Loans (3)$862,703 $886,430 $914,420 $930,627 $963,109
Total Assets Serviced for Others$36,482 $42,657 $74,359 $90,701 $98,442
Total Managed Assets$899,185 $929,087 $988,779 $1,021,328 $1,061,551
Average Total Managed Assets$866,968 $902,288 $950,327 $996,334 $1,030,579
Portfolio Asset Quality:
Total Finance Receivables
30+ Days Past Due Delinquencies0.92% 1.13% 1.02% 1.05% 0.96%
30+ Days Past Due Delinquencies$8,978 $11,370 $10,565 $10,994 $10,438
60+ Days Past Due Delinquencies0.52% 0.61% 0.55% 0.64% 0.55%
60+ Days Past Due Delinquencies$5,108 $6,157 $5,647 $6,735 $6,007
Equipment Finance
30+ Days Past Due Delinquencies0.94% 1.15% 1.04% 1.07% 0.97%
30+ Days Past Due Delinquencies$8,887 $11,260 $10,446 $10,942 $10,286
60+ Days Past Due Delinquencies0.54% 0.63% 0.56% 0.66% 0.56%
60+ Days Past Due Delinquencies$5,108 $6,157 $5,647 $6,735 $5,952
Funding Stream Loans
15+ Days Past Due Delinquencies0.89% 0.77% 0.95% 0.53% 0.59%
15+ Days Past Due Delinquencies$230 $200 $264 $162 $183
30+ Days Past Due Delinquencies0.35% 0.42% 0.43% 0.17% 0.49%
30+ Days Past Due Delinquencies$91 $110 $119 $52 $152
Net Charge-offs - Total Finance Receivables$3,442 $3,735 $4,169 $3,843 $4,306
% on Average Total Finance Receivables
Annualized1.65% 1.73% 1.87% 1.68% 1.84%
Net Charge-offs - Equipment Finance$3,062 $3,537 $3,944 $3,618 $3,851
% on Average Net Investment in Equipment Finance
Annualized1.51% 1.69% 1.82% 1.64% 1.70%
Net Charge-offs - Funding Stream Loans$380 $198 $225 $224 $456
% of Average Funding Stream Loans
Annualized6.19% 3.05% 3.31% 3.10% 6.00%
Total Allowance for Credit Losses$12,559 $14,504 $14,851 $15,620 $15,570
% of Total Finance Receivables1.46% 1.64% 1.63% 1.68% 1.62%
% of 60+ Delinquencies245.87% 235.57% 262.99% 231.92% 259.19%
Allowance for Credit Losses - Equipment Finance$11,514 $13,422 $13,815 $14,310 $14,236
% of Net Investment Equipment Finance1.38% 1.56% 1.56% 1.60% 1.53%
% of 60+ Delinquencies225.40% 218.00% 244.64% 212.48% 239.18%
Allowance for Credit Losses - Funding Stream Loans$1,045 $1,082 $1,036 $1,310 $1,334
% of Total Funding Stream Loans4.04% 4.14% 3.73% 4.25% 4.32%
Non-accrual - Equipment Finance$2,560 $2,933 $3,065 $3,626 $3,211
Non-accrual - Equipment Finance0.27% 0.30% 0.30% 0.36% 0.30%
Non-accrual - Funding Stream Loans$61 $17 $118 $27 $147
Non-accrual - Funding Stream Loans0.24% 0.07% 0.42% 0.09% 0.48%
Non-accrual - Total Finance Receivables$2,621 $2,950 $3,183 $3,653 $3,358
Non-accrual - Total Finance Receivables0.27% 0.29% 0.31% 0.35% 0.31%
Restructured - Total Finance Receivables$878 $2,543 $4,489 $4,366 $3,747
Expense Ratios:
Salaries and Benefits Expense$9,070 $9,302 $9,806 $10,023 $9,527
Salaries and Benefits Expense
Annualized % of Avg. Fin. Recbl.4.34% 4.31% 4.40% 4.39% 4.07%
Total personnel end of quarter329 331 330 326 320
General and Administrative Expense$6,110 $6,409 $5,583 $6,571 $6,449
General and Administrative Expense
Annualized % of Avg. Fin. Recbl.2.93% 2.97% 2.50% 2.88% 2.76%
Non-Interest Expense/Average Total Managed Assets7.00% 6.96% 6.48% 6.66% 6.20%
Adjusted Non-Interest Expense/Average Total Managed Assets (4)6.76% 6.65% 6.16% 6.52% 6.06%
Efficiency Ratio56.69% 58.74% 53.30% 57.08% 55.56%
Balance Sheet:
Assets
Investment in Leases and Loans$858,671 $883,778 $911,242 $927,752 $959,452
Initial Direct Costs and Fees16,591 17,156 18,029 18,495 19,227
Reserve for Credit Losses(12,559)(14,504)(14,851)(15,620)(15,570)
Net Investment in Leases and Loans$862,703 $886,430 $914,420 $930,627 $963,109
Cash and Cash Equivalents77,316 82,937 67,146 84,891 99,227
Restricted Cash- - - - -
Other Assets45,063 43,650 58,594 55,707 50,975
Total Assets$985,082 $1,013,017 $1,040,160 $1,071,225 $1,113,311
Liabilities
Deposits780,838 806,954 809,315 833,145 863,568
Other Liabilities40,061 39,768 51,196 54,153 60,101
Total Liabilities$820,899 $846,722 $860,511 $887,298 $923,669
Stockholders' Equity
Common Stock$125 $125 $124 $124 $124
Paid-in Capital, net82,825 83,391 82,586 82,507 83,472
Other Comprehensive Income (Loss)(106)(82)(96)(98)(73)
Retained Earnings81,339 82,861 97,035 101,394 106,119
Total Stockholders' Equity$164,183 $166,295 $179,649 $183,927 $189,642
Total Liabilities and
Stockholders' Equity$985,082 $1,013,017 $1,040,160 $1,071,225 $1,113,311
Capital and Leverage:
Equity$164,183 $166,295 $179,649 $183,927 $189,642
Debt to Equity4.76 4.85 4.50 4.53 4.55
Equity to Assets16.67% 16.42% 17.27% 17.17% 17.03%
Regulatory Capital Ratios:
Tier 1 Leverage Capital16.81% 16.24% 17.25% 17.35% 17.04%
Common Equity Tier 1 Risk-based Capital17.80% 17.64% 18.22% 18.33% 18.07%
Tier 1 Risk-based Capital17.80% 17.64% 18.22% 18.33% 18.07%
Total Risk-based Capital19.05% 18.90% 19.47% 19.58% 19.33%
Notes and Footnotes:
(1) Risk Adjusted NIM is defined as NIM less net charge-offs
(2) COF is defined as interest expense for the period divided by average interest bearling liabilities, annualized
(3) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Funding Stream Loans.
(4) Adjusted non-interest expense excludes NON-GAAP non-interest expense items as defined in the reconciliation of GAAP to NON-GAAP financial measures and acquisition related sales commissions and intangible amortization.
Equipment Finance consists of equipment leases and loans.
Funding Stream Loans consist of small business loans.

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Source: Marlin Business Services Corp.

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