Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 27, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document period end date | Dec. 31, 2017 | ||
Amendment flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current fiscal year end date | --12-31 | ||
Entity central index key | 1,260,968 | ||
Entity current reporting status | Yes | ||
Entity filer category | Accelerated Filer | ||
Entity registrant name | MARLIN BUSINESS SERVICES CORP. | ||
Entity voluntary filers | No | ||
Entity well known seasoned issuer | No | ||
Entity common stock shares outstanding | 12,433,527 | ||
Entity public float | $ 214,444,267 | ||
Trading Symbol | MRLN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 3,544,000 | $ 4,055,000 |
Interest-earning deposits with banks | 63,602,000 | 57,702,000 |
Total cash and cash equivalents | 67,146,000 | 61,757,000 |
Time deposits with banks | 8,110,000 | 9,605,000 |
Restricted interest-earning deposits with banks | 0 | 0 |
Securities available for sale (amortized cost of $11.7 million and $6.1 million at December 31, 2017 and 2016, respectively) | 11,533,000 | 5,880,000 |
Net investment in leases and loans, excluding allowance for credit losses | 929,271,000 | 807,654,000 |
Allowance for Credit Losses | (14,851,000) | (10,937,000) |
Net investment in leases and loans | 914,420,000 | 796,717,000 |
Intangible assets | 1,128,000 | 0 |
Goodwill | 1,160,000 | 0 |
Property and equipment, Net | 4,204,000 | 3,495,000 |
Property tax receivables | 6,292,000 | 5,296,000 |
Other assets | 26,167,000 | 9,408,000 |
Total assets | 1,040,160,000 | 892,158,000 |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Deposits | 809,315,000 | 697,357,000 |
Other liabilities: | ||
Sales and property taxes payable | 2,963,000 | 2,586,000 |
Accounts payable and accrued expenses | 31,492,000 | 14,809,000 |
Net Deferred Income Tax Liability | 16,741,000 | 15,117,000 |
Total liabilities | 860,511,000 | 729,869,000 |
Stockholders' equity: | ||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,449,458 and 12,572,114 shares issued and outstanding at December 31, 2017 and 2016, respectively | 124,000 | 126,000 |
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 82,588,000 | 83,505,000 |
Stock subscription receivable | (2,000) | (2,000) |
Accumulated other comprehensive income | (96,000) | (138,000) |
Retained earnings | 97,035,000 | 78,798,000 |
Total stockholders' equity | 179,649,000 | 162,289,000 |
Total liabilities and stockholders' equity | $ 1,040,160,000 | $ 892,158,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Available-for-sale securities, amortized cost | $ 11,690 | $ 6,104 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 12,449,458 | 12,572,114 |
Common stock shares outstanding | 12,449,458 | 12,572,114 |
Preferred stock - par or stated value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Operations | |||
Interest income | $ 87,455 | $ 74,709 | $ 66,662 |
Fee income | 14,864 | 15,543 | 15,291 |
Interest and fee income | 102,319 | 90,252 | 81,953 |
Interest expense | 11,180 | 7,778 | 5,696 |
Net interest and fee income | 91,139 | 82,474 | 76,257 |
Provision for credit losses | 18,394 | 12,414 | 9,995 |
Net interest and fee income after provision for credit losses | 72,745 | 70,060 | 66,262 |
Other income: | |||
Insurance premiums written and earned | 7,155 | 6,398 | 5,940 |
Other income | 9,577 | 3,360 | 1,869 |
Other income, total | 16,732 | 9,758 | 7,809 |
Other expense: | |||
Salaries and benefits | 37,569 | 31,912 | 31,174 |
General and administrative | 28,272 | 19,523 | 17,451 |
Financing related costs | 0 | 85 | 218 |
Other expense | 65,841 | 51,520 | 48,843 |
Income before income taxes | 23,636 | 28,298 | 25,228 |
Income tax expense | (1,656) | 11,019 | 9,262 |
Net income | $ 25,292 | $ 17,279 | $ 15,966 |
Basic earnings per share | $ 2.02 | $ 1.38 | $ 1.25 |
Diluted earnings per share | $ 2.01 | $ 1.38 | $ 1.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income | |||||||||||
Net income | $ 15,894 | $ 3,305 | $ 4,553 | $ 1,540 | $ 4,815 | $ 4,345 | $ 4,468 | $ 3,651 | $ 25,292 | $ 17,279 | $ 15,966 |
Other Comprehensive Income | |||||||||||
Increase (decrease) in fair value of securities available for sale | 68 | (15) | (181) | ||||||||
Tax effect | (26) | 6 | 69 | ||||||||
Total other comprehensive income | 42 | (9) | (112) | ||||||||
Comprehensive Income | $ 25,334 | $ 17,270 | $ 15,854 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Stock Subscription Receivable [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2014 | $ 173,964,000 | $ 128,000 | $ 89,130,000 | $ (2,000) | $ (17,000) | $ 84,725,000 |
Balance, Shares at Dec. 31, 2014 | 12,838,449 | |||||
Issuance of common stock | 234,000 | $ 0 | 234,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 14,929 | |||||
Repurchase of common stock | (11,320,000) | $ (7,000) | (11,313,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (659,903) | |||||
Exercise of stock options | $ 586,000 | $ 1,000 | 585,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 61,937 | 61,937 | ||||
Excess tax benefits from stock-based payment arrangements | $ 333,000 | $ 0 | 333,000 | 0 | 0 | 0 |
Stock option compensation recognized | 0 | 0 | 0 | 0 | 0 | 0 |
Payment of receivables | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock grant, net of forfeitures | 0 | $ 2,000 | (2,000) | 0 | 0 | 0 |
Restricted stock grant, shares | 155,487 | |||||
Restricted stock compensation recognized | 2,736,000 | $ 0 | 2,736,000 | 0 | 0 | 0 |
Net change related to derivatives, net of tax | 0 | 0 | 0 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | (112,000) | 0 | 0 | 0 | (112,000) | 0 |
Net income | 15,966,000 | 0 | 0 | 0 | 0 | 15,966,000 |
Cash dividends paid | (32,249,000) | (32,249,000) | ||||
Balance at Dec. 31, 2015 | 150,138,000 | $ 124,000 | 81,703,000 | (2,000) | (129,000) | 68,442,000 |
Balance, Shares at Dec. 31, 2015 | 12,410,899 | |||||
Issuance of common stock | 259,000 | $ 0 | 259,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 16,813 | |||||
Repurchase of common stock | (345,000) | $ 0 | (345,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (23,409) | |||||
Exercise of stock options | $ 77,000 | $ 0 | 77,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 7,380 | 7,380 | ||||
Excess tax benefits from stock-based payment arrangements | $ (24,000) | $ 0 | (24,000) | 0 | 0 | 0 |
Stock option compensation recognized | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock grant, net of forfeitures | 0 | $ 2,000 | (2,000) | 0 | 0 | 0 |
Restricted stock grant, shares | 160,431 | |||||
Restricted stock compensation recognized | 1,837,000 | $ 0 | 1,837,000 | 0 | 0 | 0 |
Net change related to derivatives, net of tax | 0 | 0 | 0 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | (9,000) | 0 | 0 | 0 | (9,000) | 0 |
Net income | 17,279,000 | 0 | 0 | 0 | 0 | 17,279,000 |
Cash dividends paid | (6,923,000) | 0 | 0 | 0 | 0 | (6,923,000) |
Balance at Dec. 31, 2016 | $ 162,289,000 | $ 126,000 | 83,505,000 | (2,000) | (138,000) | 78,798,000 |
Balance, Shares at Dec. 31, 2016 | 12,572,114 | 12,572,114 | ||||
Issuance of common stock | $ 356,000 | $ 0 | 356,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 18,890 | |||||
Repurchase of common stock | (4,501,000) | $ (2,000) | (4,499,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (184,263) | |||||
Exercise of stock options | $ 488,000 | $ 0 | 488,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 39,416 | 39,416 | ||||
Excess tax benefits from stock-based payment arrangements | $ 0 | $ 0 | 0 | 0 | 0 | 0 |
Stock option compensation recognized | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock grant, net of forfeitures | 0 | $ 0 | 0 | 0 | 0 | 0 |
Restricted stock grant, shares | 3,301 | |||||
Restricted stock compensation recognized | 2,738,000 | $ 0 | 2,738,000 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | 42,000 | 0 | 0 | 0 | 42,000 | 0 |
Net income | 25,292,000 | 0 | 0 | 0 | 0 | 25,292,000 |
Cash dividends paid | (7,055,000) | 0 | 0 | 0 | 0 | (7,055,000) |
Balance at Dec. 31, 2017 | $ 179,649,000 | $ 124,000 | $ 82,588,000 | $ (2,000) | $ (96,000) | $ 97,035,000 |
Balance, Shares at Dec. 31, 2017 | 12,449,458 | 12,449,458 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements Of Stockholders Equity [Abstract] | |||||||||||
Cash dividends declared and paid per share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.56 | $ 0.56 | $ 2.53 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 25,292 | $ 17,279 | $ 15,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,964 | 1,823 | 1,684 |
Stock-based compensation | 2,738 | 1,837 | 2,736 |
Excess tax (benefits) deficit from stock-based payment arrangements | 0 | 24 | (333) |
Provision for credit losses | 18,394 | 12,414 | 9,995 |
Net deferred income taxes | 1,598 | (1,746) | (382) |
Amortization of deferred initial direct costs and fees | 11,375 | 8,694 | 7,530 |
Deferred initial direct costs and fees | 0 | 0 | 0 |
Loss on equipment disposed | 1,070 | 846 | 537 |
Gain on Leases Sold | (2,876) | (473) | (76) |
Leases originated for sale | (4,669) | (1,226) | (3,589) |
Proceeds from sale of leases originated for sale | 4,727 | 1,234 | 3,665 |
Effect of changes in other operating items: | |||
Other assets | (19,026) | (2,657) | (3,598) |
Other liabilities | 11,284 | (587) | 1,001 |
Net cash provided by (used in) operating activities | 52,871 | 37,462 | 35,136 |
Cash flows from investing activities: | |||
Net change in time deposits with banks | 1,495 | (2,237) | (7,368) |
Purchases of equipment for direct financing lease contracts and funds used to originate loans | (634,709) | (515,237) | (389,810) |
Principal collections on leases and loans | 426,482 | 359,273 | 315,847 |
Proceeds from sale of leases originated for investment | 64,895 | 17,371 | 0 |
Security deposits collected, net of refunds | (448) | (715) | (392) |
Proceeds from the sale of equipment | 3,415 | 3,533 | 3,368 |
Acquisitions of property and equipment | (1,854) | (1,019) | (2,350) |
Payments to acquire businesses net of cash acquired | (2,500) | 0 | 0 |
Change in restricted interest-earning deposits with banks | 0 | 216 | 495 |
Purchases of securities available for sale | (5,601) | (858) | |
Proceeds of securities available for sale | 504 | ||
Net cash provided by (used in) investing activities | (148,825) | (138,311) | (81,068) |
Cash flows from financing activities: | |||
Increase in deposits | 111,958 | 109,417 | 37,821 |
Issuances of common stock | 356 | 259 | 234 |
Repurchases of common stock | (4,501) | (345) | (11,320) |
Dividends paid | (6,958) | (6,907) | (32,249) |
Exercise of stock options | 488 | 77 | 586 |
Excess tax benefit (deficit) from stock-based payment arrangements | 0 | (24) | 333 |
Net cash provided by (used in) financing activities | 101,343 | 102,477 | (4,595) |
Net increase (decrease) in total cash and cash equivalents | 5,389 | 1,628 | (50,527) |
Total cash and cash equivalents, beginning of period | 61,757 | 60,129 | 110,656 |
Total cash and cash equivalents, end of period | 67,146 | 61,757 | 60,129 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest on deposits and borrowings | 10,329 | 7,145 | 5,118 |
Net cash paid for income taxes | 10,195 | 8,185 | 13,309 |
Transfer of leases to held-for-sale | 62,077 | 16,884 | 0 |
Supplemental disclosures of noncash investing activities: | |||
Acquisition of property and equipment through capital lease arrangements | 385 | 0 | 0 |
Purchases of equipment for direct financing lease contracts and loans originated | $ 10,681 | $ 0 | $ 0 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2017 | |
The Company [Abstract] | |
The Company | NOTE 1 - The Company Marlin Business Services Corp. (the “Company”) is a nationwide provider of credit products and services to small and mid-sized businesses. The products and services we provide to our customers include loans and leases for the acquisition of commercial equipment (including Transportation Finance Group (“TFG”) assets) and working capital loans. The Company was incorporated in the C ommonwealth of Pennsylvania on August 5, 2003. In May 2000, we established AssuranceOne, Ltd., a Bermuda-based, wholly-owned captive insurance subsidiary (“Assurance One”), which enables us to reinsure the property insurance coverage for the equipment fina nced by Marlin Leasing Corporation (“MLC”) and Marlin Business Bank (“MBB”) for our small business customers. Effective March 12, 2008, the Company opened MBB, a commercial bank chartered by the State of Utah and a member of the Federal Reserve System. MBB serves as the Company’s primary funding source through its issuance of Federal Deposit Insurance Corporation (“FDIC”)-insured deposits. On January 4, 2017, the Company completed the acquisition of Horizon Keystone Financial (“HKF”), an equipment leasin g company which primarily identifies and sources lease and loan contracts for investor partners for a fee. With this acquisition, the Company will expand the current leasing business, grow annual originations and increase its presence in certain industry sectors. Additionally, the Company expects to leverage HKF’s valuable relationships with lenders and equipment vendors. The Company paid $2.5 million in cash for HKF and incurred an immaterial amount of acquisition-related cost for the acquisition. Cash settlement occurred on the date of acquisition. The Company performed an allocation of the purchase price with $1.2 million recorded to goodwill and $1.3 million recorded to intangible assets for vendor relationships, customer relationships, and the corp orate trade name. See Note 7 for additional information regarding the identified intangible assets acquired. References to the “Company,” “Marlin,” “Registrant,” “we,” “us” and “our” herein refer to Marlin Business Services Corp. and its wholly-owned s ubsidiaries, unless the context otherwise requires. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - Summary of Significant Accounting Policies Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. MLC and MBB are managed together as a single business segment and are aggregated for financial reporting purposes as they exhibit similar economic characteristics, share the same leasing and loan portfolio and have the same product offerings. All intercompany accounts and transactions have been eliminated in consolidation. During the second quarter of 2017, the Company identified that the sale of certain leases had been reported as cash flows from operating activities that should have been presented as investing activities. In addition, the Company also identified that the deferral of certain expenses associated with the cost of originating leases had been reported as an adjustment to operating cash flow rather than as an investing activity. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2016 was adjusted to de crease net cash flows from operating activities by $5.4 million and in crease net cash flows used in investing activities by the same amount. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2015 was adjusted to in crease net cash flows from operating activities by $8.5 million and de crease net cash flows used in investing activities by the same amount. During the fourth quarter of 2017, the Company identified that the Company’s equipment finance agreements should have been presented as loans rather than as part of minimum lease payments receivable. The Company corrected the previously presented disclosures within the Net Investment in Leases and Loans footnote for this item and in doing so, the minimum lease payments receivable as of December 31, 2016 was adjusted to decrease the balance by $221.7 million and increase the equipment loans by $187.7 million and TFG by $34.0 million . The Company also adjusted the unearned lease income, net of initial direct costs and fees incurred to decrease the balance by $26.3 million and decrease the Equipment Loans by $21.6 million and TFG by $4.7 million. Additionally, the Company corrected the previously presented disclosures within the Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments footnote for this item and in doing so, the carrying amount and fair value of loans, net of allowance as of December 31, 2016 increased by $192.7 million and $186.7 million, respectively. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it is immaterial to previously filed consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“ U.S. GAAP ”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used when accounting for income recognition, the residual values of leased equipment, the allowance for credit losses, deferred initial direct costs and fees, late fee receivables, the fair value of financial instruments , self-insurance reserves, and income taxes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and interest-bearing money market funds. For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Time Deposits with Banks Time deposits with banks are composed of FDIC-insured certificates of deposits that generally have original maturity dates of greater than 90 days. These deposits are held on the balance sheet at amortized cost. Generally, the certificates of deposits issued directly have the ability to redeem early; however early redemption penalties may be incurred. The certificates of deposit issued through deposit brokers generally do not have the ability to redeem early. Net Investment in Leases and Loans As required by U.S. GAAP, the Company uses the direct finance method of accounting to record its direct financing leases and related interest income. At the inception of a lease, the Company records as an asset, the aggregate future minimum lease payments receivable, plus the estimated residual value of the leased equipment, less unearned lease income. Residual values are established at lease inception based on our estimate of the expected fair value of the equipment at the end of the lease term. Residual values may be realized at lease termination from lease extensions, sales or other dispositions of leased equipment. Estimates are based on industry data, management’s experience, and historical performance. The Company records an estimated residual value at lease inception for all fair market value and fixed purchase option leases based on a percentage of the equipment cost of the asset being leased. The percentages used depend on equipment type and term. In setting estimated residual values, the Company focuses its analysis primarily on the Company’s total historical and expected realization statistics pertaining to sales of equipment. In subsequent evaluations for the impairment of the booked residual values, the Company reviews historical realization statistics including lease renewals and equipment sales. Anticipated renewal income is not included in the determination of fair value; however, it is one of the ways that fair value may be realized at the end of the lease term. At the end of an original lease term, lessees may choose to purchase the equipment, renew the lease or return the equipment to the Company. The Company receives income from lease renewals when the lessee elects to retain the equipment longer than the original term of the lease. This income, net of appropriate periodic reductions in the estimated residual values of the related equipment, is included in fee income as net residual income. When a lessee elects to return equipment at lease termination, the equipment is transferred to other assets at the lower of its basis or fair market value. The Company generally sells returned equipment to independent third parties, rather than leasing the equipment a second time. The Company generally charges off the value of equipment within other assets once it has been aged greater than 120 days. Any loss recognized on transferring equipment to other assets and any gain or loss realized on the sale or disposal of equipment to a lessee or to others is included in fee income as net residual income. Based on the Company’s experience, the amount of ultimate realization of the residual value tends to relate more to the customer’s election at the end of the lease term to enter into a renewal period, to purchase the leased equipment or to return the leased equipment than it does to the equipment type. Management performs reviews of the estimated residual values and historic realization statistics no less frequently than quarterly and any impairment, if other than temporary, is recognized in the current period. Loans are stated at principal balance, net of deferred fees and costs. Loan origination fees, commitment fees and direct loan origination costs are deferred and recognized over the life of the related loans using an effective yield method over the period to maturity. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. Unearned lease income is the amount by which the total lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income, net of initial direct costs and fees, is recognized as revenue over the lease term using the effective interest method. Allowance for Credit Losses In accordance with the Contingencies Topic of the Financial Accounting Standards Board (the “FASB”) ASC, we maintain an allowance for credit losses at an amount sufficient to absorb losses inherent in our existing lease and loan portfolios as of the reporting dates based on our projection of probable net credit losses. We identify portfolio segments, which represent the level at which we develop and document a systematic methodology to determine the allowance for credit losses. As of December 31, 2017, we have identified four segments, which consist of equipment lease and loan, Funding Stream, TFG, and Community Reinvestment Act (“CRA”) loans, of which all methodologies are evaluated on a pooled basis, due to their composition of similar accounts with similar general credit risk characteristics, diversified among industry, geography, equipment type (if applicable), obligor and vendor (if applicable). The Company has determined there to be one class of financing receivable within each portfolio segment as finance receivables of each segment contain the same initial measurement attributes, risk characteristics, and has the same method for monitoring and assessing credit risk within the segment. Each segment generally considers both quantitative and qualitative factors in determining the allowance for credit losses. Quantitative factors for the equipment lease and loan segment include a migration analysis stratified by industry classification, historic delinquencies and charge-offs, and a static pool analysis of historic recoveries. A migration analysis is a technique used to estimate the likelihood that an account will progress through the various delinquency stages and ultimately charge off. A loss emergence period (LEP), which is the period of time between an event that triggers the probability of a loss and the confirmation of loss, is applied to the migration results to develop an estimate of losses inherent in the portfolio at the reporting period. Quantitative factors for the TFG and Funding Stream segments include establishing a loss curve based on historical analysis of net charge-offs. The loss curve technique is used to estimate the likelihood and timing of when an account will charge-off relative to the month in which it was funded. An LEP is applied to the loss curve results to develop an estimate of losses inherent in the portfolio at the reporting period. The TFG and Funding Stream segments utilize different assumptions for the historical charge-offs and loss emergence which is based on analysis specific to each segment. The CRA loan segment quantitative factor includes the analysis of historical losses that are used in conjunction with an LEP to develop a quantitative allowance for credit losses. As part of all of our quantitative analyses for each segment we may also consider specifically identified pools of equipment leases or loans separately from the quantitative analysis, whenever certain identified pools are not expected to perform consistently with their credit characteristics or the portfolio segment as a whole. These lease and loan pools may be analyzed for impairment separately quantitative analysis and a specific reserve established. Qualitative factors that may result in further adjustments to the quantitative analyses include items such as changes in the composition of our lease and loan portfolio segments (including geography, industry, equipment type and vendor source), seasonality, economic or business conditions and other external factors, business practices or policies at the reporting date that are different from the periods used in the quantitative analyses and changes in experience and ability of leasing and lending management and other relevant staff. The various factors used in the analysis are reviewed periodically, and no less frequently than quarterly. We then establish an allowance for credit losses for the projected probable net credit losses inherent in the portfolio based on this analysis. A provision is charged against earnings to maintain the allowance for credit losses at the appropriate level. Our policy is to generally charge-off against the allowance the estimated unrecoverable portion of accounts once they reach 120 or more days delinquent. Our projections of probable net credit losses are inherently uncertain, and as a result we cannot predict with certainty the amount of such losses. Changes in economic conditions, the risk characteristics and composition of the portfolio, bankruptcy laws, and other factors could impact our actual and projected net credit losses and the related allowance for credit losses Actual losses may vary from current estimates. Property and Equipment The Company records property and equipment at cost. Equipment capitalized under capital leases is recorded at the present value of the minimum lease payments due over the lease term. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or lease term, whichever is shorter. The Company generally uses depreciable lives that range from three to seven years based on equipment type. Other Asset s Included in other assets on the Consolidated Balance Sheets are income taxes receivable, prepaid expenses, ac crued fee income , progress payments on equipment purchased to lease and Federal Reserve Bank stock. Interest I ncome Interest income is recognized under the effective interest method. The effective interest method of income recognition applies a constant rate of interest equal to the internal rate of return on each lease at inception. Based on the historical payment behavior of the Company’s equipment finance lease and loan portfolio as a whole, payments are considered reasonably assured when a lease or loan’s delinquency status is less than 90 days. Therefore, when a lease or loan is 90 days or more delinquent, the contract is classified as non-accrual and interest income recognition is discontinued. Interest income recognition resumes when the borrower makes payments sufficient to bring the status to less than 90 days delinquent. Funding Stream loans are generally placed in non-accrual status when they are 30 days past due and charged-off at 60 days past due . The loan is removed from non-accrual status once sufficient payments are made to bring the loan current and reviewed by management. Modifications resulting in renegotiated leases may include reductions in payment and extensions in term. However, such renegotiated leases are not granted concessions regarding implicit rates or reductions in total amounts due. Modifications may be granted on a one-time basis in situations that indicate the lessee is experiencing a temporary, timing issue and has a high likelihood of success with a revised payment plan. After a modification, a lease or loan’s accrual status is based on compliance with the modified terms. Fee Income Fee income consists of fees for delinquent lease and loan payments, cash collected on early termination of leases and net residual income. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of a lease’s term. Residual income is recognized as earned. Fee income from delinquent lease payments is recognized on an accrual basis based on anticipated collection rates. At a minimum of every quarter, an analysis of anticipated collection rates is performed based on updates to collection history. Adjustments in the anticipated collection rate assumptions are made as needed based on this analysis. Other fees are recognized when received. Other Income Other income includes various administrative transaction fees, insurance policy fees , fees received from referral of leases to third parties, and gain on sale of leases and servicing fee s , recognized as earned. Effective third quarter 2016, on a prospective basis, the insurance policy fees are recognized in the Consolidated Statements of Operations in “Other income” and for all previous annual and interim periods are recorded net in “ Insurance premiums written and earned .” Selected major components of other income for the year ended December 31, 2017 included $2.5 million of referral income, $1.8 million of insurance policy fees, and $3.7 million gain on the sale of leases and servicing fee income. Selected major components of other income for the year ended December 31, 2016 included $0.5 million of referral income, $0.8 million of insurance policy fees, and $0.7 million gain on the sale of leases and servicing fee income. Selected major components of other income for the year ended December 31, 2015 included $0.4 million of referral income and $0.1 million gain on the sale of leases and servicing fee income. Securities A vailable for S ale Securities available for sale consist of asset-backed securities (“ABS”), mutual funds and municipal bonds that are measured at fair value on a recurring basis. Unrealized holding gains or losses of all securities available for sale, net of related deferred income taxes, are reported in accumulated other comprehensive income. Fair value measurement is based upon quoted prices in active markets, if available. If quoted prices in active markets are not available, fair values are based on prices obtained from third-party pricing vendors . See Note 12 for more information on fair value measurement of securities . Securities are evaluated on a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether declines in their value are other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline and whether management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to an anticipated recovery of the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value for a debt security is determined to be other-than-temporary, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the Company, including goodwill, exceeds the fair value of the Company. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the Company’s goodwill. Currently, the Company does not have any intangible assets with indefinite useful lives. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. Impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. Initial D irect C osts and F ees We defer initial direct costs incurred and fees received to originate our leases and loans in accordance with the Receivables Topic and the Nonrefundable Fees and Other Costs Subtopic of the FASB ASC . The initial direct costs and fees we defer are part of the net investment in leases and loans and are amortized to interest income using the effective interest method. We defer third - party commission costs , as well as certain internal costs directly related to the origination activity. C osts subject to deferral include evaluating each prospective customer’s financial condition, evaluating and recording guarantees and other security arrangements, negotiating terms, preparing and processing documents and closing each transaction. The fees we defer are documentation fees collected at inception. The realization of the initial direct costs, net of fees deferred, is predicated on the net future cash flows generated by our lease and loan portfolios. Common Stock and Equity On July 29, 2014, the Company’s Board of Directors approved a stock repurchase plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock (the “2014 Repurchase Plan”). On May 30, 2017, the Company’s Board of Directors approved a new stock repurchase plan to replace the 2014 Repurchase Plan (the “2017 Repurchase Plan”). Under the 2017 Repurchase Plan, the Company is authorized to repurchase up to $10 million in value of its outstanding shares of common stock on the open market. The par value of the shares repurchased is charged to common stock with the excess of the purchase price over par charged against any available additional paid-in capital. Financing Related Costs Financing related costs primarily consi st of bank commitment fees paid to our financing sources on the unused portion of our loan facility. These fees are recognized as incurred . Stock-Based Compensation The Compensation—Stock Compensation Topic of the FASB ASC establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees and non-employees , except for equity instruments held by employee share ownership plans. The Company measures stock-based compensation cost at grant date, based on the fair value of the awards ultimately expected to vest. Stock-based co mpensation expense is recognized on a straight-line basis over the service period . We generally use the Black-Scholes valuation model to measure the fair value of our stock options and the Monte Carlo simulation valuation model to measure the fair value of our restricted stock units utilizing various assumptions with respect to expected holding period, risk-free interest rates, stock price volatility, and dividend yield . The assumptions are based on management’s judgment concerning future events. Based on the October 28, 2009 amendment to the 2003 Equity Compensation Plan, the fair value calculations for the one-time stock option exchange program were based on a binomial valuation model which considered many variables, such as the volatility of our stock and the expected term of an option, including consideration of the ratio of stock price to the exercise price at which exercise is expected to occur. The binomial valuation model was used for both the surrendered stock options and the new replacement options under the stock option exchange program. As required by U.S. GAAP, the Company uses its judgment in estimating the amount of awards that are expected to be forfeited, with subsequent revisions to the assumptions if actual forfeitures differ from those estimates. The vesting of certain restricted shares may be accelerated to a minimum of three years based on achievement of various individual performance measures. Acceleration of expense for awards based on individual performance factors occurs when the achievement of the performance criteria is determined. Non-forfeitable dividends paid on shares of restricted stock are recorded to retained earnings for shares that are expected to vest and to compensation expense for shares that are not expected to vest. Self-Insurance Beginning in 2014, the Company assumed financial risk for providing health care benefits to its employees through a self-insured group health plan. The estimate of our self-insurance liability contains uncertainty since we must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. Liabilities associated with the risk that we retain are estimated by considering historical claims experience, including frequency, severity, demographic factors and other actuarial assumptions. In calculating our liability, we analyze our historical trends, including loss development, and apply appropriate loss development factors to the incurred costs associated with the claims made against our self-insured program. The estimated accruals for these liabilities could be significantly affected if future occurrences or loss development differ from these assumptions. Income Taxes The Income Taxes Topic of the FASB ASC requires the use of the asset and liability method under which deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities, given the provisions of the enacted tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax liabilities and projected future taxable income, the level of historical taxable income, projections for future taxable income over the periods which the deferred tax assets are deductible and available tax planning strategies . M anagement judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items, such as leases , for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the Consolidated Balance Sheets. M anagement then assess es the likelihood that deferred tax assets will be recovered from future taxable income or tax carry-back availability and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish a valuation allowance in a period, an expense is recorded within the tax provision in the Consolidated Statement s of Operations. The periods subject to examination for the Company’s federal return include the 201 4 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 201 4 through the present are subject to examination. The Company records penalties and accrued interest related to taxes in income tax expense. Uncertain tax positions are recognized when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on merits of the position. The Company records penalties and accrued interest related to taxes in income tax expense. Uncertain tax positions are recognized when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on merits of the position. As of December 31, 2017 and 2016, there are no unrecognized tax benefits, and we did not have any accrued interest and penalties Earnings Per Share The Company’s restricted stock awards are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, earnings per share (“EPS”) is calculated using the two-class method, under which earnings are allocated to both common shares and participating securities. All shares of restricted stock are deducted from the weighted average shares outstanding for the computation of basic EPS. Diluted EPS is computed based on the weighted average number of common shares outstanding for the period including the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, into shares of common stock as if those securities were exercised or converted. Insurance Premiums Written and Earned Insurance premiums written and earned are recognized on an accrual basis over the term of the policy, which is month to month. Generally, insurance payments that are 120 days or more past due are charged against income. Since the policy’s premiums are recognized month to month, there is no unearned premium on the Consolidated Balance Sheets as these are fully recognized through the Consolidated Statements of Operations in the month written. For all annual and interim periods, second quarter 2016 and prior, income and expense related to insurance premiums written and earned, insurance policy fees, deferred acquisition costs, premium taxes and provision for losses and loss adjustment expenses is recorded within the “Insurance premiums written and earned” line on the Consolidated Statement of Operations. Effective third quarter 2016, on a prospective basis, only insurance premium written and earned was recorded to that line. Effective third quarter 2016, on a prospective basis, insurance policy fees were recorded to “Other income” and deferred acquisition costs, premium taxes and provision for losses and loss adjustment expenses were recorded in “General and administrative” expense. For the years ended December 31, 2017, 2016, and 2015, insurance premiums written and earned were $ 7 . 2 million, $ 6 . 2 million, and $5. 5 million respectively. Insurance Program Deferred Acquisition Costs Deferred acquisitions costs represent the fees paid to a third-party insurance company. Effective third quarter 2016, on a prospective basis, the costs are recognized on the Consolidated Statements of Operations in “General and administrative” expense and for all previous interim and annual periods are recognized net in “Insurance premiums written and earned.” For the years ended December 31, 2017, 2016, and 2015, the Company recognized deferred acquisition costs of $0. 9 million , $0. 7 million , and $0. 8 million , respectively. Since the policy’s premiums are recognized on a month to month basis, there is no deferred acquisition costs on the Consolidated Balance Sheet as these are fully recognized through the Consolidated Statements of Operations in the month written. Provision for Unpaid Losses and Loss Adjustment Expenses The Company records a provision for insurance losses and loss adjustment expenses. Effective third quarter 2016, on a prospective basis, the expense was recorded in “General and administrative” expense on the Consolidated Statements of Operations and for all previous annual and interim periods is recorded net in “Insurance premiums written and earned .” The liability for losses and loss adjustment expenses includes an amount determined from loss reports and individual cases and an amount, based on historical loss experience and industry statistics, for losses incurred but not reported (“IBNR”). These estimates are continually reviewed and are subject to the impact of future changes in such factors as claim severity and frequency. Loss and loss expenses are paid when advised by the third-party insurance company. Outstanding losses comprise estimates of the amount of reported losses and loss expenses received from the third-party insurance company plus a provision for losses IBNR. IBNR is determined with the assistance of a third-party actuary. For the years e |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | Note 3 - Investments Available for sale investments are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders’ equity unless management determines that an investment is other-than-temporarily impaired (OTTI). The amortized cost and estimated fair value of investments, with gross unrealized gains and losses, were as follows as of December 31, 2017 and December 31, 2016 : December 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale: ABS $ 5,717 $ 27 $ (39) $ 5,705 Municipal securities $ 2,420 $ 18 $ (36) $ 2,402 Mutual fund $ 3,553 $ - $ (127) $ 3,426 Total securities available for sale $ 11,690 $ 45 $ (202) $ 11,533 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - Municipal securities $ 2,625 $ - $ (97) $ 2,528 Mutual fund $ 3,479 $ - $ (127) $ 3,352 Total securities available for sale $ 6,104 $ - $ (224) $ 5,880 The following tables present the aggregate amount of unrealized losses on securities in the Company’s available-for-sale investment portfolios classified according to the amount of time those securities have been in a continuous loss position as of December 31, 2017 and December 31, 2016 : December 31, 2017 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ (39) $ 3,703 $ - $ - $ (39) $ 3,703 Municipal securities $ - $ - $ (36) $ 2,402 $ (36) $ 2,402 Mutual fund $ - $ - $ (127) $ 3,426 $ (127) $ 3,426 Total debt securities available for sale $ (39) $ 3,703 $ (163) $ 5,828 $ (202) $ 9,531 December 31, 2016 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - $ - $ - Municipal securities $ (97) $ 2,528 $ - $ - $ (97) $ 2,528 Mutual fund $ - $ - $ (127) $ 3,352 $ (127) $ 3,352 Total debt securities available for sale $ (97) $ 2,528 $ (127) $ 3,352 $ (224) $ 5,880 Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 31, 2017 securities in a gross unrealized loss position in the table above are not indicative of the ultimate collectability of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The following table presents the amortized cost, fa ir value, and weighted average yield of investments in debt securities available for sale at December 31, 2017 , by remaining contractual maturity, with the exception of ABS and municipal securities, which are based on estimated average life. Receipt of cash f lows may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties: Distribution of Maturities 1 Year 1-5 5-10 After 10 or Less Years Years Years Total (Dollars in thousands) Amortized Cost: Available for Sale: ABS $ - $ 3,710 $ 1,006 $ 1,001 $ 5,717 Municipal securities $ - $ 20 $ 1,442 $ 958 $ 2,420 Total debt securities available for sale $ - $ 3,730 $ 2,448 $ 1,959 $ 8,137 Estimated fair value $ - $ 3,683 $ 2,550 $ 1,920 $ 8,153 Weighted-average yield, GAAP basis - 1.91% 2.41% 2.09% 2.10% OTTI The Company evaluates all investment securities in an unrealized loss position for OTTI on at least a quarterly basis. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. The OTTI assessment is a subjective process requiring the use of judgments and assumptions. During the securities-level assessments, consideration is given to (1) the intent not to sell and probability that the Company will not be required to sell the security befo re recovery of its cost basis to allow for any anticipated recovery in fair value, (2) the financial condition and near-term prospects of the issuer, as well as company news and current events, and (3) the ability to collect the future expected cash flows. Key assumptions utilized to forecast expected cash flows may include loss severity, expected cumulative loss percentage, cumulative loss percentage to date, weighted average Fair Isaac Corporation ("FICO®") scores and weighted average LTV ratio, rating or scoring, credit ratings and market spreads, as applicable. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securit ies in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary i mpairment into two components: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to facto rs other than credit losses is recorded in other comprehensive income, net of taxes. The Company did not recognize any OTTI in earnings related to its investment securities for each of the years ended December 31, 2017 and December 31, 2016 . |
Net Investment in Leases and Lo
Net Investment in Leases and Loans | 12 Months Ended |
Dec. 31, 2017 | |
Net Investment in Leases and Loans [Abstract] | |
Net Investment in Leases and Loans | NOTE 4 - Net Investment in Leases and Loans Net investment in leases and loans consists of the following: December 31, 2017 2016 (Dollars in thousands) Minimum lease payments receivable $ 607,736 $ 646,127 Estimated residual value of equipment 26,922 26,790 Unearned lease income, net of initial direct costs and fees deferred (81,769) (88,853) Security deposits (1,046) (1,493) Total leases 551,843 582,571 Commercial loans, net of origination costs and fees deferred Funding Stream 28,128 19,870 CRA (1) 1,222 1,098 Equipment Loans (2) 291,333 174,870 TFG 56,745 29,245 Total commercial loans 377,428 225,083 Allowance for credit losses (14,851) (10,937) $ 914,420 $ 796,717 __________________ CRA loans are comprised of loans originated under a line of credit to satisfy its obligations under the Community Reinvestment Act of 1977. ( 2) E quipment loans are comprised of Equipment Finance Agreements, Install Purchase Agreements, and other loans. At December 31, 2017 , $ 3 7 . 8 million in net investment in leases are pledged as collateral for the secured borrowing capacity at the Federal Reserve Discount Window. Initial direct costs net of fees deferred were $1 7 . 2 million and $1 3 . 9 mil lion as of December 31, 2017 and December 31, 2016 , respectively. Initial direct costs are netted in unearned income and are amortized to income using the effective interest method. Origination costs net of fees deferred were $0. 8 million and $0. 4 million as of December 31, 2017 and December 31, 2016 , respectively. Origination costs are netted in commercial loans and are amortized to income using the effective interest method. At December 31, 2017 and December 31, 2016 , $22.8 million and $22.5 million, respect ively, of the estimated residual value of equipment retained on our Consolidated Balance Sheets was related to copiers. Minimum lease payments receivable under lease contracts and the amortization of unearned lease income, including initial direct costs and fees deferred, are as follows as of December 31, 2017: Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2018 $ 249,107 $ 42,090 2019 173,458 23,383 2020 107,523 11,194 2021 55,876 4,200 2022 20,224 841 Thereafter 1,548 61 $ 607,736 $ 81,769 As of December 31, 2017 and December 31, 2016 , the Company maintained total finance receivables which were on a non-accrual basis of $3.2 million and $2.2 million, respectively . As of December 31, 2017 and December 31, 2016 , the Company had total finance receivables in which the terms of the original agreements had been renegotiated in the amount of $4.5 million and $0.8 million, respectively. (See Note 6 for additional asset quality information) |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2017 | |
Concentrations of Risk [Abstract] | |
Concentrations of Risk | NOTE 5 - Concentrations of Risk As of December 31, 2017, leases approximating 13%, 12% and 10% of the net investment balance of leases by the Company were located in the states of California, Texas and Florida, respectively. As of December 31, 2016, leases approximating 13%, 10% and 10% of the net investment balance of leases by the Company were located in the states of California, Texas and Florida, respectively. No other state accounted for more than 7% of the net investment balance of leases owned and serviced by the Company as of December 31, 2017 and December 31, 2016. As of December 31, 2017 and December 31, 2016 , no single vendor source accounted for more than 2% of the net investment balance of leases owned by the Company. The largest single obligor accounted for less than 1% of the net investment balance of leases owned by the Company as of December 31, 2017 and December 31, 2016. Although the Company’s portfolio of leases includes lessees located throughout the United States , such lessees’ ability to honor their contracts may be substantially dependent on economic conditions in these states. All such contracts are collateralized by the related equipment. The Company leases to a variety of different industries, including the medical, retail, service, manufacturing and restaurant industries, among others. To the extent that the economic or regulatory conditions prevalent in such industries change, the lessees’ ability to honor their lease obligations may be adversely impacted. As of December 31, 2017 and December 31, 2016, copiers comprised 84.8% and 83.8%, respectively, of the estimated residual value of leased equipment. No other group of equipment represented more than 10% of equipment residuals as of December 31, 2017 and December 31, 2016. Improvements and other changes in technology could adversely impact the Company’s ability to realize the recorded value of this equipment. There were no impairments of estimated residual value recorded during the years ended December 31, 2017, 2016 or 2015. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 6 - Allowance for Credit Losses In accordance with the Contingencies Topic of the FASB ASC, we maintain an allowance for credit losses at an amount sufficient to absorb losses inherent in our existing lease and loan portfolios as of the reporting dates based on our estimate of probable net credit losses. The following tables provides activity in the allowance for credit losses and asset quality statistics for each of the years ended December 31, 2017, 2016 and 2015. December 31, 2017 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ 760 $ - $ 9,808 $ 369 $ 10,937 Charge-offs (1,219) - (14,343) (1,154) (16,716) Recoveries 121 - 2,066 49 2,236 Net charge-offs (1,098) - (12,277) (1,105) (14,480) Provision for credit losses 1,374 - 15,132 1,888 18,394 Allowance for credit losses, end of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Ending lease or loan balance (1) $ 27,810 $ 1,222 $ 826,880 $ 55,330 $ 911,242 December 31, 2016 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ 174 $ - $ 8,217 $ 22 $ 8,413 Charge-offs (455) - (11,893) (39) (12,387) Recoveries 93 - 2,404 - 2,497 Net charge-offs (362) - (9,489) (39) (9,890) Provision for credit losses 948 - 11,080 386 12,414 Allowance for credit losses, end of period $ 760 $ - $ 9,808 $ 369 $ 10,937 Ending lease or loan balance (1) $ 19,676 $ 1,098 $ 744,103 $ 28,408 $ 793,285 December 31, 2015 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ - $ - $ 8,537 $ - $ 8,537 Charge-offs (14) - (12,439) - (12,453) Recoveries - - 2,334 - 2,334 Net charge-offs (14) - (10,105) - (10,119) Provision for credit losses 188 - 9,785 22 9,995 Allowance for credit losses, end of period $ 174 $ - $ 8,217 $ 22 $ 8,413 Ending lease or loan balance (1) $ 4,991 $ 1,115 $ 671,922 $ 1,710 $ 679,738 __________________ (1) For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. (2 ) Equipment Finance consists of Equipment Finance Agreements, Install Purchase Agreements, and other leases and loans. As of December 31, 2017, 2016, and 2015 all leases and loans were collectively evaluated for impairment. As of December 31, 2017 and 2016, sales of leases and loans were $62.1 million and $16.9 million, respectively. No leases or loans have been acquired with deteriorated credit quality. Credit Quality Indicators The Company’s credit review process includes a risk classification of all leases and loans that includes pass, special mention, substandard, doubtful, and loss. The classification of a lease or loan may change based on changes in the creditworthiness of the borrower. The description of the risk classifications are as follows: Pass: A lease or loan is classified as pass when payments are current and it is performing under the original contractual terms. Special Mention: A leas e or loan is classified as special mention when the borrower exhibits potential credit weakness or a downward trend which, if not checked or corrected, will weaken the asset or inadequately protect the Company’s position. While potentially weak, the borrow er is currently marginally acceptable; no loss of principal or interest is envisioned. Substandard: A lease or loan is classified as substandard when the borrower has a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the deb t. A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, normal repayment from this borrower is in jeopardy, and there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Doubtful: A lease or loan is classified as doubtful when a borrower has all weaknesses inherent in a loan classified as substandard with the added provision that: (1) the weaknesses make collection of debt in full o n the basis of currently existing facts, conditions and values highly questionable and improbable; (2) serious problems exist to the point where a partial loss of principal is likely; and (3) the possibility of loss is extremely high, but because of certai n important, reasonably specific pending factors which may work to the advantage and strengthening of the assets, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, ac quisition, or liquidation procedures, capital injection, perfecting liens and additional refinancing plans. Loss: A lease or loan is classified as loss when uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. T he Company charges-off the collateral or discounted cash flow deficiency on all loans on non-accrual status. In all cases, leases and loans are placed on non-accrual when 90 days past due or earlier if collection of principal or interest is considered doub tful. The following tables present the segments of the loan portfolio in which a formal risk weighting system is utilized summarized by the categories of “pass” and “special mention”, and the classified categories of “substandard”, “doubtful”, and “loss” within the Bank’s risk rating system at December 31, 2017 and December 31, 2016 . The data within the tables reflect net investment, excluding deferred fees and cost and allowance : December 31, 2017 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (1) TFG Total Pass $ 27,405 $ 1,222 $ 801,894 $ 50,342 $ 880,863 Special Mention 56 - 15,141 4,906 20,103 Substandard 47 - 6,428 44 6,519 Doubtful 163 - 2,995 38 3,196 Loss 139 - 422 - 561 Total $ 27,810 $ 1,222 $ 826,880 $ 55,330 $ 911,242 December 31, 2016 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (1) TFG Total Pass $ 19,304 $ 1,098 $ 729,769 $ 23,573 $ 773,744 Special Mention 67 - 9,772 4,666 14,505 Substandard 169 - 1,651 169 1,989 Doubtful 136 - 2,649 - 2,785 Loss - - 262 - 262 Total $ 19,676 $ 1,098 $ 744,103 $ 28,408 $ 793,285 Loan Delinquencies and Non-accrual Leases and Loans Net investments in leases and loans are generally charged-off when they are contractually past due for 120 days or more. Income recognition is discontinued on leases or loans when a default on monthly payment exists for a period of 90 days or more. Income recognition resumes when a lease or loan becomes less than 90 days delinquent. At December 31, 2017 and December 31, 2016 , there were no finance receivables past due 90 days or more and still accruing. Funding Stream loans are generally placed in non-accrual status when they are 30 days past due and charged-off at 60 days past due . The loan is removed from non-accrual status once sufficient payments are made to bring the loan current and reviewed by management. There were no Funding Stream loans past due 30 days or more and still accruing. Management further monitors the performance and credit quality of the loan portfolio as determined by the length of time a recorded payment is due. The following tables provide information about delinquent and non-accrual leases and loans in the Company’s portfolio each of the years ended December 31, 2017 and December 31, 2016. 30-59 60-89 >90 Days Days Days Total Total December 31, 2017 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Commercial Loans: Funding Stream $ 119 $ - $ - $ 119 $ 27,691 $ 27,810 $ 118 CRA - - - - 1,222 1,222 - Equipment Finance (1) 4,621 2,532 3,023 10,176 928,963 939,139 3,023 TFG 178 50 42 270 64,499 64,769 42 Total Leases and Loans (2) $ 4,918 $ 2,582 $ 3,065 $ 10,565 $ 1,022,375 $ 1,032,940 $ 3,183 30-59 60-89 >90 Days Days Days Total Total December 31, 2016 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Commercial Loans: Funding Stream $ - $ - $ - $ - $ 19,676 $ 19,676 $ 66 CRA - - - - 1,098 1,098 - Equipment Finance (1) 2,999 1,768 2,176 6,943 835,506 842,449 2,176 TFG 90 193 - 283 33,673 33,956 - Total Leases and Loans (2) $ 3,089 $ 1,961 $ 2,176 $ 7,226 $ 889,953 $ 897,179 $ 2,242 __________________ (1 ) Equipment Finance consists of Equipment Finance Agreements, Install Purchase Agreements, and other leases and loans. (2) Represents total minimum lease and loan payments receivable for Equ ipment Finance and TFG and as a percentage of principal outstanding for Funding Stream and CRA. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | NOTE 7 - Goodwill and Intangible Assets Goodwill As a result of the HKF acquisition on January 4, 2017, the Company recorded goodwill of $1.2 million as of December 31, 2017 , which represents the excess purchase price over the Company’s fair value of the assets acquired. The recorded goodwill is not amortizable but is deductible for tax purposes. The purchase price allocation was finalized in the third quarter of 2017 and no changes made to the preliminary valuations were recorded. Impairment testing will be performed in the fourth quarter of each year and more frequently as warranted in accordance with the applicable accounting guidance. There was no impairment recorded during the twelve-month period ended December 31, 2017 . The changes in the carrying amount of goodwill for the twelve-month period ended December 31, 2017 are as follows: (Dollars in thousands) Total Company Balance at December 31, 2016 $ — Acquisition of HKF on January 4, 2017 1,160 Balance at December 31, 2017 $ 1,160 Intangible assets The Company had no intangible assets at December 31, 2016 . During the first quarter of 2017, in connection with the acquisition of HKF, the Company acquired certain definite-lived intangible assets with a total cost of $1.3 million and a weighted average amortization period of 8.7 years. The Company had no indefinite-lived intangible assets at December 31, 2017 . The following table presents details of the Company’s intangible assets as of December 31, 2017 : (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 years $ 360 $ 120 $ 240 Vendor relationships 11 years 920 84 836 Corporate trade name 7 years 60 8 52 $ 1,340 $ 212 $ 1,128 There was no impairment of these assets in 2017. Amortization related to the Company’s definite lived intangible assets was $0.2 million for the twelve-month period ended December 31, 2017 . The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) Amortization Expense 2018 $ 212 2019 212 2020 92 2021 92 2022 92 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment Disclosure | NOTE 8 - Property and Equipment, N et Property and equipment , net consist of the following: December 31, 2017 2016 Depreciable Life (Dollars in thousands) Furniture and equipment $ 2,859 $ 2,831 7 years Computer systems and equipment 15,619 13,804 3-5 years Leasehold improvements 1,194 1,194 Shorter of estimated useful life or remaining lease term Total property and equipment 19,672 17,829 Less - Accumulated depreciation and amortization (15,468) (14,334) Property and equipment, net $ 4,204 $ 3,495 Depreciation and amortization expense was $1.5 million, $1.3 million and $1.2 million for each of the years ended December 31, 2017, 2016 and 2015, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | NOTE 9 - Other Assets Other assets are comprised of the following: December 31, 2017 2016 (Dollars in thousands) Accrued fees receivable $ 3,052 $ 2,762 Prepaid expenses 2,026 2,201 Income taxes receivable (See Note 13 for further discussion) 13,306 — Federal Reserve bank stock 1,711 1,711 Other 6,072 2,734 $ 26,167 $ 9,408 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 10 - Commitments and Contingencies MBB is a member bank in a non-profit, multi-financial institution Community Development Financial Institution (“CDFI”) organization. The CDFI serves as a catalyst for community development by offering flexible financing for affordable, quality housing to low- and moderate-income residents, helping the Bank meet its CRA obligations. Currently, MBB receives approximately 1.2 % participation in each funded loan which is collateral for the loan issued to the CDFI und er the program. MBB records loans in its financial statements when they have been funded or become payable. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. At December 31, 2017 and 201 6 , MBB had an unfunded commitment of $0.8 million and $0.9 million , respectively, for this activity. Unless renewed prior to termination, MBB’s membership in the consortium will expire in September 201 8 . The Company is involved in legal proceedings, which include claims, litigation and suits arising in the ordinary cou rse of business. In the opinion of management, these actions will not have a material effect on the Company’s consolidated balance sheet, statement of operations or cash flows. Banking institutions are subject to periodic reviews and examinations from ban king regulators. In the first quarter of 2017, one of MBB’s regulatory agencies communicated preliminary findings in connection with the timing of certain aspects of payment application process in effect prior to February 2016 related to the assessment of late fees. The Company believes that the resolution of this matter will require the Company to pay restitution to customers. The Company estimated such restitution at $4.2 million, which was expensed and related liability was recorded in the first quart er of 2017. However, the ultimate resolution of this matter could be materially different from the current estimate, including with respect to the timing, the exact amount of any required restitution or the possible imposition of any fines and penalties. As of December 31, 2017 , the Company leases all eight of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Atlanta, Georgia; Salt Lake City, Utah; Portsmouth, New Hampshire; Highlands Ranch, Colorado; De nver, Colorado; Plymouth, Michigan; and Philadelphia , Pennsylvania. These lease commitments are accounted for as operating leases. The Company has entered into several capital leases to finance corporate property and equipment. The following is a schedul e of future minimum lease payments for capital and operating leases as of December 31, 2017 : Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2018 $ 112 $ 1,596 $ 1,708 2019 112 1,527 1,639 2020 112 687 799 2021 65 — 65 2022 — — — Total minimum lease payments $ 401 $ 3,810 $ 4,211 Less: amount representing interest (16) Present value of minimum lease payments $ 385 Rent expense was $1.1 million for each of the years ended December 31, 2017 , 2016 , and 2015 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | NOTE 11 - Deposits MBB serves as the Company’s primary funding source. MBB issues fixed-rate FDIC-insured certificates of deposit raised nationally through various brokered deposit relationships and fixed-rate FDIC-insured deposits received from direct sources. MBB offers FDIC-insured money market deposit accounts (the “MMDA Product”) through participation in a partner bank’s insured savings account product. This brokered deposit product has a variable rate, no maturity date and is offered to the clients of the partner bank and recorded as a single deposit account at MBB. As of December 31, 2017 , money market deposit accounts totaled $ 38 . 6 million. As of December 31, 2017 , the remaining scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2018 $ 334,366 2019 215,867 2020 120,966 2021 71,424 2022 28,087 $ 770,710 Certificates of deposits issued by MBB are time deposits and are generally issued in denominations of $250,000 or less. The MMDA Product is also issued to customers in amounts less than $250,000. The FDIC insures deposits up to $250,000 per depositor. The weighted average all-in interest rate of deposits outstanding at December 31, 2017 was 1.60% . |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | NOTE 12 - Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments Fair Value Measurements The Fair Value Measurements and Disclosures Topic of the FASB ASC establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. Its provisions do not apply to fair value measurements for purposes of lease classification and measurement, which is addressed in the Leases Topic of the FASB ASC. Fair value is defined in GAAP as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date. GAAP focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. A three-level valuation hierarchy is required for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels are defined as follows: Level 1 – Inputs to the valuation are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs to the valuation may include quoted prices for similar assets and liabilities in active or inactive markets, and inputs other than quoted prices, such as interest rates and yield curves, which are observable for the asset or liability for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation are unobservable and significant to the fair value measurement. Level 3 inputs shall be used to measure fair value only to the extent that observable inputs are not available. The Company characterizes active markets as those where transaction volumes are sufficient to provide objective pricing information, such as an exchange traded price. Inactive markets are typically characterized by low transaction volumes, and price quotations that vary substantially among market participants or are not based on current information. The Company’s balances measured at fair value on a recurring basis include the following as of December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets ABS — 5,705 — — Municipal securities $ — $ 2,402 $ — $ 2,528 Mutual fund $ 3,426 $ — $ 3,352 $ — At this time, the Company has not elected to report any assets and liabilities using the fair value option available under the Financial Instruments Topic of the FASB ASC. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy. Disclosures about the Fair Value of Financial Instruments The Financial Instruments Topic of the FASB ASC requires the disclosure of the estimated fair value of financial instruments including those financial instruments not measured at fair value on a recurring basis. This requirement excludes certain instruments, such as the net investment in leases and all nonfinancial instruments. The fair values shown below have been derived, in part, by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates. Valuation techniques involve uncertainties and require assumptions and judgments regarding prepayments, credit risk and discount rates. Changes in these assumptions will result in different valuation estimates. The fair values presented would not necessarily be realized in an immediate sale. Derived fair value estimates cannot necessarily be substantiated by comparison to independent markets or to other companies’ fair value information. The following summarizes the carrying amount and estimated fair value of the Company’s financial instruments: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Assets Cash and cash equivalents $ 67,146 $ 67,146 $ 61,757 $ 61,757 Time deposits with banks 8,110 7,843 9,605 9,614 Loans, net of allowance 370,865 358,089 221,690 215,843 Federal Reserve Bank Stock 1,711 1,711 0 0 Servicing Rights 2,518 2,554 0 0 Liabilities Deposits $ 809,315 $ 803,470 $ 697,357 $ 694,721 The paragraphs which follow describe the methods and assumptions used in estimating the fair values of financial instruments. Cash and Cash Equivalents The carrying amounts of the Company’s cash and cash equivalents approximate fair value as of December 31, 2017 and December 31, 2016 , because they bear interest at market rates and had maturities of less than 90 days at the time of purchase. This fair value measurement is classified as Level 1. Time Deposits with Banks Fair value of time deposits is estima ted by discounting cash flows of current rates paid by market participants for similar time deposits of the same or similar remaining maturities. This fair value measurement is classified as Level 2. Securities Available for Sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon various sources of market pricing. Securities are classified within the fa ir value hierarchy after giving consideration to the activity level in the market for the security type and the observability of the inputs used to determine the fair value. When available, the Company uses quoted prices in active markets and classifies such instruments within Level 1 of the fair value hierarchy. Level 1 securities include mutu al funds. When instruments are traded in secondary markets and quoted market prices do not exist for such securities, the Company relies on prices obtained from third-party pricing vendors and classifies these instruments within Level 2 of the fair value h ierarchy. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. Level 2 securitie s include municipal bonds. Loans The loan balances are comprised of three types of loans. Loans made as a member bank in a non-profit, multi-financial institution CDFI serve as a catalyst for community development by offering financing for affordable, quality housing to low- and moderate-income residents. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. The fair value of these loans approximates the carrying amount at December 31, 2017 and December 31, 2016 a s it is based on recent comparable sales transactions with consideration of current market rates. This fair value measurement is classified as Level 2. The Company also invests in a small business loan product tailored to the small business market. Fair va lue for these loans is estimated by discounting cash flows at an imputed market rate for similar loan products with similar characteristics. This fair value measurement is classified as Level 2. The Company also invests in Equipment Finance loans. These lo ans may be secured by equipment being acquired, blanket liens on personal property, or specific equipment already owned by the customer. The fair value of loans is estimated by discounting the future cash flows using the current rate at which similar loans would be made to borrowers with similar credit, collateral, and for the same remaining maturities. This fair value measurement is classified as Level 2. Federal Reserve B ank Stock Federal Reserve Bank Stock are non-marketable equitable equity securities and are reported at their redeemable carrying amounts, which approximates fair value. This fair value measurement is classified as Level 1. Servicing Rights Fair value is based on market prices for comparable service rights contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. This fair value measurement is classified as L evel 2. Deposits Deposit liabilities with no defined maturity such as MMDA deposits have a fair value equal to the amount payable on demand at the reporting date ( i.e., their carrying amount). Fair value for certificates of deposits is estimated by discounting cash f lows at current rates paid by the Company for similar certificates of deposit of the same or similar remaining maturities. This fair value measurement is classified as Level 2. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 13 - Income Taxes The Company’s income tax provision consisted of the following components: Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Current: Federal $ (4,591) $ 11,073 $ 7,983 State 1,419 1,722 1,582 Total current (3,172) 12,795 9,565 Deferred Federal 986 (1,742) 475 State 530 (34) (778) Total deferred 1,516 (1,776) (303) Total income tax expense (benefit) $ (1,656) $ 11,019 $ 9,262 In accordance with U.S. GAAP, uncertain tax positions taken or expected to be taken in a tax return are subject to potential financial statement recognition based on prescribed recognition and measurement criteria. Based on our evaluation, there are no unrecognized tax benefits, and we did not have any accrued interest and penalties as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015. We do not expect our unrecognized tax positions to change significantly over the next 12 months. The periods subject to examination for the Company’s federal return include the 201 4 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 201 4 through the present are subject to examination. No material income tax interest or penalties were incurred for the years ended December 31, 2017, 2016 or 2015. Deferred income tax expense results principally from the use of different revenue and expense recognition methods for tax and financial accounting purposes, primarily related to lease accounting. The Company estimates these differences and adjusts to actual upon preparation of the income tax returns. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. Consequently, we have recorded a decrease related to deferred tax assets and deferred tax liabilities of $4.5 million and $14.7 million, respectively, with a corresponding net adjustment to deferred income tax benefit of $10.2 million for the year ended December 31, 2017. The Company will continue to analyze the TCJA as additional information becomes available to determine the full effects the new law has on its financial statements . While we have substantially completed our provisional analysis of the income tax effects of the TCJA and recorded a reasonable estimate of such effects, the net one-time charge related to the TCJA may differ, possibly materially, due to, among other things, further refinement of our calculations, changes in interpretations and assumptions that we have made, additional guidance that may be issued by the U.S. Government, actions and related accounting policy decisions we may take as a result of the TCJA. We will complete our analysis over a one-year measurement period ending December 22, 2018, and any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. The sources of these temporary differences and the related tax effects were as follows: December 31, 2017 2016 (Dollars in thousands) Deferred income tax assets: Allowance for credit losses $ 4,143 $ 4,656 Accrued expenses 1,977 1,109 Deferred income 1,548 2,027 Deferred compensation 945 1,072 Other comprehensive income 60 86 Other 399 354 Total deferred income tax assets 9,072 9,304 Deferred income tax liabilities: Lease accounting (23,077) (21,049) Deferred acquisition costs (2,338) (3,113) Depreciation (398) (259) Total deferred income tax liabilities (25,813) (24,421) Net deferred income tax liability $ (16,741) $ (15,117) The company has a gross state income tax net operating loss carryforward in that amount of $ 6 . 7 million and $8. 0 million for years ending December 31, 2017 and December 31, 2016, respectively. Most of these net operating loss carryforwards are set to expire between 20 28 and 203 4 . The deferred tax asset related to this carryforward item, net of federal benefit, is included in “Other deferred income tax assets.” The following is a reconciliation of the statutory federal income tax rate to the effective income tax rate: Year Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.7 % 4.1 % 3.2 % Other permanent differences (0.1) % (0.3) % (0.6) % Excess stock based compensation (1.5) % — % — % Tax benefit due to TCJA (43.4) % — % — % Other 0.3 % 0.1 % (0.9) % Effective rate (7.0) % 38.9 % 36.7 % |
Earnings Per Common Share ("EPS
Earnings Per Common Share ("EPS") | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Earnings Per Common Share ("EPS") | NOTE 14 - Earnings Per Share The Company’s restricted stock awards are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, earnings per share (“ EPS ”) has been calculated using the two-class method , under which earnings are allocated to both common stock and participating securities . Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares used in computing basic EPS. For the computation of basic EPS, all shares of restricted stock have been deducted from the weighted average shares outstanding. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted by including the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, into shares of common stock as if those securities were exercised or converted. The following table provides net income and shares used in computing basic and diluted EPS : Year Ended December 31, 2017 2016 2015 (Dollars in thousands, except per-share data) Basic EPS Net income $ 25,292 $ 17,279 $ 15,966 Less: net income allocated to participating securities (628) (518) (465) Net income allocated to common stock $ 24,664 $ 16,761 $ 15,501 Weighted average common shares outstanding 12,528,195 12,521,962 12,722,234 Less: Unvested restricted stock awards considered participating securities (312,175) (380,367) (357,361) Adjusted weighted average common shares used in computing basic EPS 12,216,020 12,141,595 12,364,873 Basic EPS $ 2.02 $ 1.38 $ 1.25 Diluted EPS Net income allocated to common stock $ 24,664 $ 16,761 $ 15,501 Adjusted weighted average common shares used in computing basic EPS 12,216,020 12,141,595 12,364,873 Add: Effect of dilutive stock-based compensation awards 33,603 9,102 16,679 Adjusted weighted average common shares used in computing diluted EPS 12,249,623 12,150,697 12,381,552 Diluted EPS $ 2.01 $ 1.38 $ 1.25 For the years ended December 31, 2017, 2016 and 2015, outstanding stock-based compensation awards in the amount of 101,157, 37,333 and 5,203, respectively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 15 - Stockholders’ Equity Stockholders’ Equity On July 29, 2014, the Company’s Board of Directors approved the 2014 Repurchase Plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock. On May 30, 2017, the Company’s Board of Directors approved the 2017 Repurchase Plan to replace the 2014 Repurchase Plan. Under the 2017 Repurchase Plan, the Company is authorized to repurchase up to $10 million in value of its outstanding shares of common stock. This authority may be exercised from time to time and in such amounts as market conditions warrant. Any shares purchased under this plan are returned to the status of authori zed but unissued shares of common stock. The repurchases may be made on the open market or in block trades. The program may be suspended or discontinued at any time. The repurchases are funded using the Company’s working capital. During the year ended December 31, 2017 , the Company purchase d 87,210 shares of its common stock in the open market under the 201 7 Repurchase Plan at an average cost of $ 24 . 05 per share and 58,914 shares of its common stock under the 2014 Repurchase Plan at an average cost of $ 25 . 09 per share . During the year ended December 31, 2016 , the Company did not repurchase any of its common stock under the 2014 Repurchase Plan in the open market. The Company purchased 594,760 shares of its common stock in the open market under the 2014 Repurchase Plan at an average cost of $17.09 per share during the year ended December 31, 2015 . At December 31, 2017 , the Company had $ 7.9 million remaining in the 201 7 Repurchase Plan. In addition to the repurchases described above, participants in the Com pany’s 2003 Equity Compensation Plan, as amended (the “2003 Plan”) and the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan” and, together with the 2003 Plan, the “Equity Plans”) may have shar es withheld to cover income taxes. There were 38,139 , 23,409 and 65,143 shares repurchased to cover income tax withholding in connection with shares granted under the Equity Plans during the years ended December 31, 2017 , 2016 and 2015 , respectively, at average per-share costs of $24.27 , $14.73 and $17.74 , respectively. Regulatory Capital Requirements Through its issuance of FDIC-insured deposits, MBB serves as the Company’s primary funding source. Over time, MBB may offer other products and services to the Company’s customer base. MBB operates as a Utah state-chartered, Federal Reserve member commercial bank, insured by the FDIC. As a state-chartered Federal Reserve member bank, MBB is supervised by both the Federal Reserve Bank of San Francisco and the Utah Department of Financial Institutions. The Comp any and MBB are subject to capital adequacy regulations issued jointly by the federal bank regulatory agencies. These risk-based capital and leverage guidelines make regulatory capital requirements more sensitive to differences in risk profiles among banki ng organizations and consider off-balance sheet exposures in determining capital adequacy. The federal bank regulatory agencies and/or the U.S. Congress may determine to increase capital requirements in the future due to the current economic environment. U nder the capital adequacy regulation, at least half of a banking organization’s total capital is required to be "Tier 1 Capital" as defined in the regulations, comprised of common equity, retained earnings and a limited amount of non-cumulative perpetual p referred stock. The remaining capital, "Tier 2 Capital," as defined in the regulations, may consist of other preferred stock, a limited amount of term subordinated debt or a limited amount of the reserve for possible credit losses. The regulations establis h minimum leverage ratios for banking organizations, which are calculated by dividing Tier 1 Capital by total quarterly average assets. Recognizing that the risk-based capital standards principally address credit risk rather than interest rate, liquidity, operational or other risks, many banking organizations are expected to maintain capital in excess of the minimum standards. The Company and MBB operate under the Basel III rules. The se standards require a minimum for Tier 1 leverage ratio of 4%, minimum T ier 1 risk-based ratio of 6% , and a t otal risk-based capital ratio of 8%. The Basel III adequacy standards establish ed a new common equity Tier 1 risk-based capital ratio with a required 4.5% minimum (6.5% to be considered well-capitalized). The Company is required to have a level of regulatory capital in excess of the regulatory minimum and to have a capital buffer above 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. If a banking organization does not maintain capital above the minimum pl us the capital conservation buffer it may be subject to restrictions on dividends, share buybacks, and certain discretionary payments such as bonus payments. The Company plans to provide the necessary capital to maintain MBB at “well-capitalized” status as defined by banking regulations and as required by an agreement entered into by and among MBB, MLC, Marlin Business Services Corp. and the FDIC in conjunction with the opening of MBB (the “FDIC Agreement”). MBB’s Tier 1 Capital balance at December 31, 2017 w as $145.3 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At December 31, 2017 , the Company also exceeded its regulatory capital requirements and was considered “well-capitalized” a s defined by federal banking regulations and as required by the FDIC Agreement. The following table sets forth the Tier 1 leverage ratio, common equity Tier 1 risk-based capital ratio , Tier 1 risk-based capital ratio and total risk-based capital ratio for Marlin Business Services Corp. and MBB at December 31, 2017 . Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio (1) Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 17.25% $ 177,605 4% $ 41,175 5% $ 51,468 Marlin Business Bank 14.81% $ 145,269 5% $ 49,058 5% $ 49,058 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 18.22% $ 177,605 4.5% $ 43,877 6.5% $ 63,378 Marlin Business Bank 15.21% $ 145,269 6.5% $ 62,088 6.5% $ 62,088 Tier 1 Risk-based Capital Marlin Business Services Corp. 18.22% $ 177,605 6% $ 58,503 8% $ 78,003 Marlin Business Bank 15.21% $ 145,269 8% $ 76,416 8% $ 76,416 Total Risk-based Capital Marlin Business Services Corp. 19.47% $ 189,826 8% $ 78,003 10% $ 97,504 Marlin Business Bank 16.46% $ 157,244 15% $ 143,280 10% (1) $ 95,520 (1) MBB is required to maintain “well-capitalized” status and must also maintain a total risk-based capital ratio greater than 15% pursuant to the FDIC Agreement. Prompt Corrective Action. The Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) requires the federal regulators to take prompt corrective action against any undercapitalized institution. F ive capital categories have been established under federal banking regulations : well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Well-capitalized institutions significantly exceed the required minimum level for each relevant capital measure. Adequately capitalized institutions include depository institutions that meet but do not significantly exceed the required minimum level for each relevant capital measure. Undercapitalized institutions consist of those that fail to meet the required minimum level for one or more relevant capital measures. Significantly undercapitalized characterizes depository institutions with capital levels significantly below the minimum requirements for any relevant capital measure. Critically undercapitalized refers to depository institutions with minimal capital and at serious risk for government seizure. Under certain circumstances, a well-capitalized, adequately capitalized or undercapitalized institution may be treated as if the institution were in the next lower capital category. A depository institution is generally prohibited from making capital distributions, including paying dividends, or paying management fees to a holding company if the institution would thereafter be undercapitalized. Institutions that are adequately capitalized but not well-capitalized cannot accept, renew or roll over brokered deposits except with a waiver from the FDIC and are subject to restrictions on the interest rates that can be paid on such deposits. Undercapitalized institutions may not accept, renew or roll over brokered deposits. The federal bank regulatory agencies are permitted or, in certain cases, required to take certain actions with respect to institutions falling within one of the three undercapitalized categories. Depending on the level of an institution’s capital, the agency’s corrective powers include, among other things: • prohibiting the payment of principal and interest on subordinated debt; • prohibiting the holding company from making distributions without prior regulatory approval; • placing limits on asset growth and restrictions on activities; • placing additional restrictions on transactions with affiliates; • restricting the interest rate the institution may pay on deposits; • prohibiting the institution from accepting deposits from correspondent banks; and • in the most severe cases, appointing a conservator or receiver for the institution. A banking institution that is undercapitalized is required to submit a capital restoration plan, and such a plan will not be accepted unless, among other things, the banking institution’s holding company guarantees the plan up to a certain specified amount. Any such guarantee from a depository institution’s holding company is entitled to a priority of payment in bankruptcy. Pursuant to the FDIC Agreement entered into in conjunction with the opening of MBB , MBB must keep its total risk-based capital ratio above 15%. MBB’s total risk-based capital ratio of 16.46% at December 31, 2017 exceeded the threshold for “well capitalized” status under the applicable laws and regulations, and also exceeded the 15% minimum total risk-based capital ratio required in the FDIC Agreement. Dividends . The Federal Reserve Board has issued policy statements requiring insured banks and bank holding companies to have an established assessment process for maintaining capital commensurate with their overall risk profile. Such assessment process may affect the ability of the organizations to pay dividends. Although generally organizations may pay dividends only out of current operating earnings, dividends may be paid if the distribution is prudent relative to the organization’s financial position and risk profile, after consideration of current and prospective economic conditions. In addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 14, 2015. The special dividend was paid on October 5, 2015 to shareholders of record on the close of business on September 24, 2015, which resulted in a dividend payment of approximately $25.5 million. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 16 - Stock-Based Compensation Under the terms of the Company’s 2014 Plan, employees, certain consultants and advisors and non-employee members of the Company’s Board of Directors have the opportunity to receive incentive and nonqualified grants of stock options, stock appreciation rights, restricted stock and other equity-based awards as approved by the Company’s Board of Directors. These award programs are used to attract, retai n and motivate employees and to encourage individuals in key management roles to retain stock. The Company has a policy of issuing new shares to satisfy awards under the 2014 Plan. The aggregate number of shares under the 2014 Plan that may be issued purs uant to stock options, stock units , stock awards , and other equity awards is 1,200,000 with not more than 1,000,000 of such shares shall be available for issuance as stock units , stock awards , and other equity awards . There were 472,913 sh ares available for future awards under the 2014 Plan as of December 31, 2017 , of which 369,898 shares were available to be issued as stock units , stock awards , and other equity awards . Total stock-based compensation expense was $ 2.8 million, $ 1.9 million and $ 2.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Excess tax benefits from stock-based payment arrangements was $ 0.4 million for the year en ded December 31, 2017. An e xcess tax deficit from stock-based payment arrangements decreased cash provided by financing activities and increased cash provided by operating activities by less than $0.1 million for the year ended December 31, 2016 . Excess tax b enefits from stock-based payment arrangements increased cash provided by financing activities and decreased cash provided by operating activities by $0.3 million for the year ended December 31, 2015 . Stock Options Option awards were generally granted with an exercise price equal to the market price of the Company’s stock at the date of the grant and have 7- to 10-year contractual terms. All options issued contain service conditions based on the participant’s continued service with t he Company, and provide for accelerated vesting if there is a change in control as defined in the 2014 Plan. Employee stock options generally vest over four years. In previous years, the Company also issued stock options to independent directors. These o ptions generally vest in one year. There were 115,883 stock options granted during the year ended December 31, 2017 . There were no stock options granted during the years ended 2016 and 2015 . The fair value of stock options granted during the year ended December 31, 2017 was $6.56 and was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: Assumptions Weighted Averages: Risk-free interest rate 1.82% Expected life (years) 4.50 Expected volatility 34.62% Expected dividends 2.17% The expected life for options is estimated based on their vesting and contractual terms and was determined by applying the simplified method as defined by the SEC’s Staff Accounting Bulletin No. 107 (“SAB 107”). The risk-free interest rate reflected the yield on zero-coupon Treasury securities with a term approximating the expected life of the stock options. The expected volatility was determined using historical volatilities based on historical stock prices. A summary of option activity for the each of the three years in the period ended December 31, 2017 follows : Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2014 193,351 $ 10.23 Granted — — Exercised (61,937) 9.48 Forfeited (80,728) 9.64 Expired — — Outstanding, December 31, 2015 50,686 $ 12.09 Granted — — Exercised (7,380) 10.44 Forfeited (1,666) 12.41 Expired — — Outstanding, December 31, 2016 41,640 $ 12.37 Granted 115,883 25.75 Exercised (39,416) 12.37 Forfeited (21,122) 24.35 Expired — — Outstanding, December 31, 2017 96,985 $ 25.75 During the year ended December 31, 2017, the Company recognized total compensation expense related to options of $0.2 million. During the year ended December 31, 2016 the Company did not recognize any compensation expense related to options. During the year ended December 31, 2015, the Company recognized total compensation expense related to options of $0.1 million. There were 39,416, 7,380 and 61,937 stock options exercised during the years ended December 31, 2017, 2016 and 2015, respectively. The total pretax intrinsic value of stock options exercised was $0.4 million, $0.1 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. The following table summarizes information about the stock options outstanding and exercisable as of December 31, 2017: Options Outstanding Options Exercisable Weighted Weighted Aggregate Weighted Weighted Aggregate Average Average Intrinsic Average Average Intrinsic Range of Number Remaining Exercise Value Number Remaining Exercise Value Exercise Prices Outstanding Life (Years ) Price (In thousands) Exercisable Life (Years ) Price (In thousands) $ 25.75 96,985 6.2 25.75 — 0 0.0 - — 96,985 6.2 25.75 $ — 0 0.0 - $ — The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $22.40 as of December 31, 2017, which would have been received by the option holders had all option holders exercised their options as of that date. As of December 31, 2017, there was $ 0.5 million of unrecognized compensation cost related to non-vested stock options not yet recognized in the Consolidated Statements of Operations scheduled to be recognized over a weighted average period of 1.6 years. Restricted Stock Awards Restricted stock awards provide that, during the applicable vesting periods, the shares awarded may not be sold or transferred by the participant. The vesting period for restricted stock awards generally ranges from three to seven years. All awards issued contain service conditions based on the participant’s continued service with the Company, and provide for accelerated vesting if there is a change in control as defined in the 2014 Plan. The vesting of certain restricted shares m ay be accelerated to a minimum of three years based on achievement of various individual p erformance measures. Acceleration of expense for awards based on individual performance factors occurs when the achievement of the performance criteria is determined. Of the total restricted stock awards granted during the year ended December 31, 2017 , no shares may be subject to accelerated vesting based on individual performance factors; no shares have vesting contingent upon performance factors. Vest ing was accelerated in 201 7 , 201 6 and 201 5 on certain awards based on the achievement of certain performance criteria determined annually, as described below. The Company also issues restricted stock to non-employee independent directors. These shares ge nerally vest in seven years from the grant date or six months following the director’s termination from Board of Directors service. The following table summarizes the activity of the non-vested restricted stock during the each of the three years in the pe riod ended December 31, 2017 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2014 346,036 $ 15.99 Granted 179,162 16.87 Vested (188,287) 15.41 Forfeited (23,675) 18.53 Outstanding at December 31, 2015 313,236 $ 16.65 Granted 183,506 15.31 Vested (77,149) 16.11 Forfeited (23,075) 17.73 Outstanding at December 31, 2016 396,518 $ 16.07 Granted 44,758 25.36 Vested (122,202) 16.19 Forfeited (41,457) 16.07 Outstanding at December 31, 2017 277,617 $ 17.51 During the years ended December 31, 2017, 2016 and 2015, the Company granted restricted stock awards with grant date fair values totaling $1.1 million, $2.8 million and $3.0 million, respectively. The grant date fair value per share was equivalent to the Company’s closing stock price on the date of the grant. As vesting occurs, or is deemed likely to occur, compensation expense is recognized over the requisite service period and additional paid-in capital is increased. The Company recognized $1.7 million, $1.9 million and $2.7 million of compensation expense related to restricted stock for the years ended December 31, 2017, 2016 and 2015, respectively. Of the $1.7 million total compensation expense related to restricted stock for the year ended December 31, 2017, approximately $0.5 million related to accelerated vesting during the first quarter of 2017, based on the achievement of certain performance criteria determined annually. Of the $1.9 million total compensation expense related to restricted stock for the year ended December 31, 2016, approximately $0.4 million related to accelerated vesting during the first quarter of 2016, which was also based on the achievement of certain performance criteria determined annually. As of December 31, 2017, there was $3.0 million of unrecognized compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 3.6 years. In the event individual performance targets are achieved, $0.5 million of the unrecognized compensation cost would accelerate to be recognized over a weighted average period of 0.6 years. In addition, certain of the awards granted may result in the issuance of 24,023 additional shares of stock if achievement of certain targets is greater than 100%. The expense related to the additional shares awarded will be dependent on the Company’s stock price when the achievement level is determined. The fair values of shares that vested during the years ended December 31, 2017, 2016 and 2015 were $3.0 million, $1.2 million and $3.4 million, respectively. Restricted Stock Units Restricted stock units (“RSUs”) are granted with vesting conditions based on fulfillment of a service condition (generally three to four years from the grant date), and may also require achievement of certain operating performance criteria or achievement of certain market-based targets associated with the Company’s stock price. The market based target measurement period begins one year from the grant date and ends three years from the grant date. Expense for equity based awards with market and service conditions is recognized over the service period based on the grant-date fair value of the award. The following tables summarize market restricted stock unit activity for the twelve-month period ended December 31, 2017 : Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2015 — $ — Granted 120,000 9.47 Forfeited — — Converted — — Outstanding at December 31, 2016 120,000 $ 9.47 Granted 72,180 24.06 Forfeited (33,627) 14.13 Converted — — Outstanding at December 31, 2017 158,553 15.13 Service-based RSUs Outstanding at December 31, 2016 — $ — Granted 30,653 25.65 Forfeited (4,813) 25.75 Converted — — Cancelled due to non-achievement of market condition — — Outstanding at December 31, 2017 25,840 25.63 The weighted average grant-date fair value of RSUs with market based vesting conditions granted during the twelve -month period ended December 31, 2017 was $13.32 per unit . The weighted average grant-date fair value of RSUs with market based vesting conditions granted during the twelve -month period ended December 31, 2016 was $ 9.47 per unit . The weighted average grant date fair value of these market based RSUs was estimated using a Monte Carlo simulation valuation model with the following assumptions: Year Ended December 31, 2017 2016 2015 Grant date stock price $ 25.75 18.24 — Risk-free interest rate 1.72 % 1.06 % — Expected volatility 33.42 % 35.16 % — Dividend yield — — — The risk free interest rate reflected the yield on zero coupon Treasury securities with a term approximating the expected life of the RSUs. The expected volatility was based on historical volatility of the Company’s common stock. Dividend yield was assumed at zero as the grant assumes dividends distributed during the performance period are reinvested. When valuing the grant, we have assumed a dividend yield of zero, which is mathematically equivalent to reinvesting dividends in the issuing entity. D uring the years ended December 31, 2017 and 2016 , the Company granted RSUs with grant-date fair values totaling $2. 5 million and $1.1 million, respectiv ely. The Company recognized $0.9 million and less than $0.1 million of compensation expense related to RSUs for the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , there was $2.8 million of unrecognized compensation cost related to RSUs scheduled to be recognized over a weighted average period of 2. 2 years and based on th e most probable performance assumptions , would result in the conversion of 26,748 additional units into shares of common stock. In the event maximum performance targets are achieved, an additional $ 0.7 million of compensation cost would be recognized over a weighted average period of 2.0 years and may result in the conversion of 26,748 additional units into shares of common stock. Employee Stock Purchase Plan In May 2012, the Company’s shareholders approved the adoption of the Company’s 201 2 Employee Stock Purchase Plan (the “2012 ESPP” ). Under the terms of the 2012 ESPP, employees have the opportunity to set aside up to 10% of their compensation (subject to certain maximums) and to purchase shares of common stock during designated offering periods at a price equal to the lesser of 95% of the fair market value per share on the first day of the offering period or the fair market value per share on the purchase date. The aggregate number of shares that may be issued under the 2012 ESPP is 140,0 00. During the years ended 2017 and 2016 , 18,890 and 16,813 shares, respectively, of common stock were sold for $0. 4 million and $0. 3 million, respectively, pursuant to the terms of the 2012 ESPP. As of December 31, 2017 , there were 51,425 shares remaining available for issuance under the 2012 ESPP. During the year ended December 31, 2017, the Company recognized total compensation expense of $0.1 million related to the 2012 ESPP. During the years ended December 31, 2016 and December 31, 2015, the Company did not recognize any compensation expense related to the 2012 ESPP. |
Employee 401(k) Plan
Employee 401(k) Plan | 12 Months Ended |
Dec. 31, 2017 | |
Employee 401 K Plan [Abstract] | |
Employee 401(k) Plan | NOTE 17 - Employee 401(k) Plan The Company adopted a 401(k) plan (the “401(k) Plan”) which originally became effective as of January 1, 1997. The Company’s employees are entitled to participate in the 401(k) Plan, which provides savings and investment opportunities. Employees can contribute up to the maximum annual amount allowable per Internal Revenue Service guidelines. Effective July 1, 2007, the 401(k) Plan provides for Company contributions equal to 25% of an employee’s contribution percentage up to a maximum employee contribution of 6%. The Company’s contributions to the 401(k) Plan for the years ended December 31, 2017, 2016 and 2015 were approximately $0.3 million, $0.2 million and $0.2 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 18 - Related Party Transactions The Company previously obtain ed all of its commercial, healthcare and other insurance coverage through The Selzer Company, an insurance broker located in Warrington , Pennsylvania . Richard Dyer, the brother of Daniel P. Dyer, the Company’s former Chief Executive Officer, is the President of The Selzer Company. The Company does not have any contractual arrangement with The Selzer Group or Richard Dyer, nor does it pay either of them any direct fees. There were no insurance premiums paid to The Selzer Company during each of the year s ended December 31, 2017 and December 31, 2016. Insurance premiums paid to The Selzer Company were $0.4 million for the year ended December 31, 2015. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | NOTE 1 9 – Parent Company Summarized financial information of the parent company is as follows: Parent Company – Balance Sheet December 31, 2017 2016 (Dollars in thousands, except per-share data) ASSETS Investment in and advances to subsidiaries: Bank subsidiary $ 145,249 $ 130,636 Nonbank subsidiaries 34,400 31,653 Total assets $ 179,649 $ 162,289 LIABILITIES AND STOCKHOLDERS’ EQUITY Total liabilities - - 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; 12,449,458 and 12,572,114 shares issued and outstanding at December 31, 2017 and 2016, respectively 124 126 Additional paid-in capital 82,588 83,505 Stock subscription receivable (2) (2) Accumulated other comprehensive loss (96) (138) Retained earnings 97,035 78,798 Total stockholders’ equity 179,649 162,289 Total liabilities and stockholders’ equity $ 179,649 $ 162,289 Parent Company – Income Statement Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Income: Dividends from nonbank subsidiaries $ 11,556 $ 7,268 $ 43,569 Dividends from bank subsidiary 6,000 7,600 13,000 Total revenue 17,556 14,868 56,569 Total expense - - - Income before income taxes and equity in undistributed net income of subsidiaries 17,556 14,868 56,569 Income tax (benefit) expense - - - Equity in undistributed income (loss): Bank subsidiary 14,571 7,247 7,532 Nonbank subsidiaries (6,835) (4,836) (48,135) Net Income $ 25,292 $ 17,279 $ 15,966 Other comprehensive income: Amortization of net deferred losses on Increase (decrease) in fair value of securities available for sale 68 (15) (181) Tax effect (26) 6 69 Total other comprehensive income (loss) 42 (9) (112) Comprehensive income $ 25,334 $ 17,270 $ 15,854 Parent Company – Statement of Cash Flows Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities: Net income $ 25,292 $ 17,279 $ 15,966 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net (income) losses of subsidiaries (19,292) (9,679) (2,966) Net cash provided by operating activities 6,000 7,600 13,000 Cash flows from investing activities: Capital returned from nonbank subsidiaries 11,556 7,268 43,569 Capital contributed to subsidiaries (6,941) (7,952) (13,820) Net cash provided by (used in) investing activities 4,615 (684) 29,749 Cash flows from financing activities: Issuances of common stock 356 259 234 Repurchases of common stock (4,501) (345) (11,320) Dividends paid to common stockholders (6,958) (6,907) (32,249) Exercise of stock options 488 77 586 Net cash used in financing activities (10,615) (6,916) (42,749) Net increase in total cash and cash equivalents - - - Total cash and cash equivalents, beginning of period - - - Total cash and cash equivalents, end of period $ - $ - $ - |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 20 - Events Subsequent to Year-End The Company declared a dividend of $0.14 per share on February 1, 2018 . The quarterly dividend, which amounted to a dividend payment of approximately $1.7 million, was paid on February 22, 2018 to shareholders of record on the close of business on February 12, 2018 . It represented the Company’s twenty-sixth consecutive quarterly cash dividend. The payment of future dividends will be subject to approva l by the Company’s Board of Directors. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Fiscal Year Quarters First Second Third Fourth (Dollars in thousands, except per-share data) Year ended December 31, 2017 Interest income $ 20,531 $ 21,567 $ 22,363 $ 22,994 Fee income 3,530 3,745 3,780 3,809 Interest and fee income 24,061 25,312 26,143 26,803 Interest expense 2,340 2,612 3,000 3,228 Provision for credit losses 3,884 4,314 5,680 4,516 Other Income 3,753 4,079 3,602 5,298 Income tax expense (benefit) 489 2,732 2,049 (6,926) Net income 1,540 4,553 3,305 15,894 Basic earnings per share 0.12 0.36 0.26 1.27 Diluted earnings per share 0.12 0.36 0.26 1.27 Cash dividends declared per share 0.14 0.14 0.14 0.14 Net investment in leases and loans 828,840 862,703 886,430 914,420 Total assets 944,492 985,082 1,013,017 1,040,160 Year ended December 31, 2016 Interest income $ 17,531 $ 18,187 $ 18,803 $ 20,188 Fee income 3,834 3,969 3,944 3,796 Interest and fee income 21,365 22,156 22,747 23,984 Interest expense 1,692 1,857 2,055 2,174 Provision for credit losses 3,075 2,668 3,137 3,534 Other Income 2,077 2,063 2,632 2,986 Income tax expense 2,325 2,752 3,028 2,914 Net income 3,651 4,468 4,345 4,815 Basic earnings per share 0.29 0.36 0.35 0.38 Diluted earnings per share 0.29 0.36 0.35 0.38 Cash dividends declared per share 0.14 0.14 0.14 0.14 Net investment in leases and loans 702,126 703,750 759,422 796,717 Total assets 801,106 841,791 869,001 892,158 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Financial Statement Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. MLC and MBB are managed together as a single business segment and are aggregated for financial reporting purposes as they exhibit similar economic characteristics, share the same leasing and loan portfolio and have the same product offerings. All intercompany accounts and transactions have been eliminated in consolidation. During the second quarter of 2017, the Company identified that the sale of certain leases had been reported as cash flows from operating activities that should have been presented as investing activities. In addition, the Company also identified that the deferral of certain expenses associated with the cost of originating leases had been reported as an adjustment to operating cash flow rather than as an investing activity. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2016 was adjusted to de crease net cash flows from operating activities by $5.4 million and in crease net cash flows used in investing activities by the same amount. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2015 was adjusted to in crease net cash flows from operating activities by $8.5 million and de crease net cash flows used in investing activities by the same amount. During the fourth quarter of 2017, the Company identified that the Company’s equipment finance agreements should have been presented as loans rather than as part of minimum lease payments receivable. The Company corrected the previously presented disclosures within the Net Investment in Leases and Loans footnote for this item and in doing so, the minimum lease payments receivable as of December 31, 2016 was adjusted to decrease the balance by $221.7 million and increase the equipment loans by $187.7 million and TFG by $34.0 million . The Company also adjusted the unearned lease income, net of initial direct costs and fees incurred to decrease the balance by $26.3 million and decrease the Equipment Loans by $21.6 million and TFG by $4.7 million. Additionally, the Company corrected the previously presented disclosures within the Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments footnote for this item and in doing so, the carrying amount and fair value of loans, net of allowance as of December 31, 2016 increased by $192.7 million and $186.7 million, respectively. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it is immaterial to previously filed consolidated financial statements. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“ U.S. GAAP ”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used when accounting for income recognition, the residual values of leased equipment, the allowance for credit losses, deferred initial direct costs and fees, late fee receivables, the fair value of financial instruments , self-insurance reserves, and income taxes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash and interest-bearing money market funds. For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Time Deposits with Banks, Policy [Policy Text Block] | Time Deposits with Banks Time deposits with banks are composed of FDIC-insured certificates of deposits that generally have original maturity dates of greater than 90 days. These deposits are held on the balance sheet at amortized cost. Generally, the certificates of deposits issued directly have the ability to redeem early; however early redemption penalties may be incurred. The certificates of deposit issued through deposit brokers generally do not have the ability to redeem early. |
Net Investment in Leases and Loans, Policy [Policy Text Block] | Net Investment in Leases and Loans As required by U.S. GAAP, the Company uses the direct finance method of accounting to record its direct financing leases and related interest income. At the inception of a lease, the Company records as an asset, the aggregate future minimum lease payments receivable, plus the estimated residual value of the leased equipment, less unearned lease income. Residual values are established at lease inception based on our estimate of the expected fair value of the equipment at the end of the lease term. Residual values may be realized at lease termination from lease extensions, sales or other dispositions of leased equipment. Estimates are based on industry data, management’s experience, and historical performance. The Company records an estimated residual value at lease inception for all fair market value and fixed purchase option leases based on a percentage of the equipment cost of the asset being leased. The percentages used depend on equipment type and term. In setting estimated residual values, the Company focuses its analysis primarily on the Company’s total historical and expected realization statistics pertaining to sales of equipment. In subsequent evaluations for the impairment of the booked residual values, the Company reviews historical realization statistics including lease renewals and equipment sales. Anticipated renewal income is not included in the determination of fair value; however, it is one of the ways that fair value may be realized at the end of the lease term. At the end of an original lease term, lessees may choose to purchase the equipment, renew the lease or return the equipment to the Company. The Company receives income from lease renewals when the lessee elects to retain the equipment longer than the original term of the lease. This income, net of appropriate periodic reductions in the estimated residual values of the related equipment, is included in fee income as net residual income. When a lessee elects to return equipment at lease termination, the equipment is transferred to other assets at the lower of its basis or fair market value. The Company generally sells returned equipment to independent third parties, rather than leasing the equipment a second time. The Company generally charges off the value of equipment within other assets once it has been aged greater than 120 days. Any loss recognized on transferring equipment to other assets and any gain or loss realized on the sale or disposal of equipment to a lessee or to others is included in fee income as net residual income. Based on the Company’s experience, the amount of ultimate realization of the residual value tends to relate more to the customer’s election at the end of the lease term to enter into a renewal period, to purchase the leased equipment or to return the leased equipment than it does to the equipment type. Management performs reviews of the estimated residual values and historic realization statistics no less frequently than quarterly and any impairment, if other than temporary, is recognized in the current period. Loans are stated at principal balance, net of deferred fees and costs. Loan origination fees, commitment fees and direct loan origination costs are deferred and recognized over the life of the related loans using an effective yield method over the period to maturity. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. Unearned lease income is the amount by which the total lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income, net of initial direct costs and fees, is recognized as revenue over the lease term using the effective interest method. |
Allowance for Credit Losses, Policy [Policy Text Block] | Allowance for Credit Losses |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The Company records property and equipment at cost. Equipment capitalized under capital leases is recorded at the present value of the minimum lease payments due over the lease term. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or lease term, whichever is shorter. The Company generally uses depreciable lives that range from three to seven years based on equipment type. |
Other Assets, Policy [Policy Text Block] | Other Asset s Included in other assets on the Consolidated Balance Sheets are income taxes receivable, prepaid expenses, ac crued fee income , progress payments on equipment purchased to lease and Federal Reserve Bank stock. |
Interest Income Recognition, Policy [Policy Text Block] | Interest I ncome |
Fee Income and Other Income, Policy [Policy Text Block] | Fee Income Fee income consists of fees for delinquent lease and loan payments, cash collected on early termination of leases and net residual income. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of a lease’s term. Residual income is recognized as earned. Fee income from delinquent lease payments is recognized on an accrual basis based on anticipated collection rates. At a minimum of every quarter, an analysis of anticipated collection rates is performed based on updates to collection history. Adjustments in the anticipated collection rate assumptions are made as needed based on this analysis. Other fees are recognized when received. Other Income Other income includes various administrative transaction fees, insurance policy fees , fees received from referral of leases to third parties, and gain on sale of leases and servicing fee s , recognized as earned. Effective third quarter 2016, on a prospective basis, the insurance policy fees are recognized in the Consolidated Statements of Operations in “Other income” and for all previous annual and interim periods are recorded net in “ Insurance premiums written and earned .” Selected major components of other income for the year ended December 31, 2017 included $2.5 million of referral income, $1.8 million of insurance policy fees, and $3.7 million gain on the sale of leases and servicing fee income. Selected major components of other income for the year ended December 31, 2016 included $0.5 million of referral income, $0.8 million of insurance policy fees, and $0.7 million gain on the sale of leases and servicing fee income. Selected major components of other income for the year ended December 31, 2015 included $0.4 million of referral income and $0.1 million gain on the sale of leases and servicing fee income. |
Insurance Income Recognition, Policy [Policy Text Block] | Insurance Premiums Written and Earned Insurance premiums written and earned are recognized on an accrual basis over the term of the policy, which is month to month. Generally, insurance payments that are 120 days or more past due are charged against income. Since the policy’s premiums are recognized month to month, there is no unearned premium on the Consolidated Balance Sheets as these are fully recognized through the Consolidated Statements of Operations in the month written. For all annual and interim periods, second quarter 2016 and prior, income and expense related to insurance premiums written and earned, insurance policy fees, deferred acquisition costs, premium taxes and provision for losses and loss adjustment expenses is recorded within the “Insurance premiums written and earned” line on the Consolidated Statement of Operations. Effective third quarter 2016, on a prospective basis, only insurance premium written and earned was recorded to that line. Effective third quarter 2016, on a prospective basis, insurance policy fees were recorded to “Other income” and deferred acquisition costs, premium taxes and provision for losses and loss adjustment expenses were recorded in “General and administrative” expense. For the years ended December 31, 2017, 2016, and 2015, insurance premiums written and earned were $ 7 . 2 million, $ 6 . 2 million, and $5. 5 million respectively. |
Securities Available for Sale, Policy [Policy Text Block] | Securities A vailable for S ale Securities available for sale consist of asset-backed securities (“ABS”), mutual funds and municipal bonds that are measured at fair value on a recurring basis. Unrealized holding gains or losses of all securities available for sale, net of related deferred income taxes, are reported in accumulated other comprehensive income. Fair value measurement is based upon quoted prices in active markets, if available. If quoted prices in active markets are not available, fair values are based on prices obtained from third-party pricing vendors . See Note 12 for more information on fair value measurement of securities . Securities are evaluated on a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether declines in their value are other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline and whether management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to an anticipated recovery of the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value for a debt security is determined to be other-than-temporary, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. |
Initial Direct Costs and Fees, Policy [Policy Text Block] | Initial D irect C osts and F ees We defer initial direct costs incurred and fees received to originate our leases and loans in accordance with the Receivables Topic and the Nonrefundable Fees and Other Costs Subtopic of the FASB ASC . The initial direct costs and fees we defer are part of the net investment in leases and loans and are amortized to interest income using the effective interest method. We defer third - party commission costs , as well as certain internal costs directly related to the origination activity. C osts subject to deferral include evaluating each prospective customer’s financial condition, evaluating and recording guarantees and other security arrangements, negotiating terms, preparing and processing documents and closing each transaction. The fees we defer are documentation fees collected at inception. The realization of the initial direct costs, net of fees deferred, is predicated on the net future cash flows generated by our lease and loan portfolios. |
Common Stock and Equity, Policy [Policy Text Block] | Common Stock and Equity On July 29, 2014, the Company’s Board of Directors approved a stock repurchase plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock (the “2014 Repurchase Plan”). On May 30, 2017, the Company’s Board of Directors approved a new stock repurchase plan to replace the 2014 Repurchase Plan (the “2017 Repurchase Plan”). Under the 2017 Repurchase Plan, the Company is authorized to repurchase up to $10 million in value of its outstanding shares of common stock on the open market. The par value of the shares repurchased is charged to common stock with the excess of the purchase price over par charged against any available additional paid-in capital. |
Financing Related Costs, Policy [Policy Text Block] | Financing Related Costs Financing related costs primarily consi st of bank commitment fees paid to our financing sources on the unused portion of our loan facility. These fees are recognized as incurred . |
Stock-based Compensation, Policy [Policy Text Block] | Stock-Based Compensation The Compensation—Stock Compensation Topic of the FASB ASC establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees and non-employees , except for equity instruments held by employee share ownership plans. The Company measures stock-based compensation cost at grant date, based on the fair value of the awards ultimately expected to vest. Stock-based co mpensation expense is recognized on a straight-line basis over the service period . We generally use the Black-Scholes valuation model to measure the fair value of our stock options and the Monte Carlo simulation valuation model to measure the fair value of our restricted stock units utilizing various assumptions with respect to expected holding period, risk-free interest rates, stock price volatility, and dividend yield . The assumptions are based on management’s judgment concerning future events. Based on the October 28, 2009 amendment to the 2003 Equity Compensation Plan, the fair value calculations for the one-time stock option exchange program were based on a binomial valuation model which considered many variables, such as the volatility of our stock and the expected term of an option, including consideration of the ratio of stock price to the exercise price at which exercise is expected to occur. The binomial valuation model was used for both the surrendered stock options and the new replacement options under the stock option exchange program. As required by U.S. GAAP, the Company uses its judgment in estimating the amount of awards that are expected to be forfeited, with subsequent revisions to the assumptions if actual forfeitures differ from those estimates. The vesting of certain restricted shares may be accelerated to a minimum of three years based on achievement of various individual performance measures. Acceleration of expense for awards based on individual performance factors occurs when the achievement of the performance criteria is determined. Non-forfeitable dividends paid on shares of restricted stock are recorded to retained earnings for shares that are expected to vest and to compensation expense for shares that are not expected to vest. |
Income Taxes, Policy [Policy Text Block] | Income Taxes The Income Taxes Topic of the FASB ASC requires the use of the asset and liability method under which deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities, given the provisions of the enacted tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax liabilities and projected future taxable income, the level of historical taxable income, projections for future taxable income over the periods which the deferred tax assets are deductible and available tax planning strategies . M anagement judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items, such as leases , for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the Consolidated Balance Sheets. M anagement then assess es the likelihood that deferred tax assets will be recovered from future taxable income or tax carry-back availability and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish a valuation allowance in a period, an expense is recorded within the tax provision in the Consolidated Statement s of Operations. The periods subject to examination for the Company’s federal return include the 201 4 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 201 4 through the present are subject to examination. The Company records penalties and accrued interest related to taxes in income tax expense. Uncertain tax positions are recognized when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on merits of the position. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share The Company’s restricted stock awards are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, earnings per share (“EPS”) is calculated using the two-class method, under which earnings are allocated to both common shares and participating securities. All shares of restricted stock are deducted from the weighted average shares outstanding for the computation of basic EPS. Diluted EPS is computed based on the weighted average number of common shares outstanding for the period including the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, into shares of common stock as if those securities were exercised or converted. |
New Accounting Pronouncements, Policy [Policy Text Block] | Income Statement. In February 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “TCJA”) . Consequently, the amendments eliminate the stranded tax effects resulting from the TCJA and will improve the usefulness of information reported to financial statement users. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. The Company intends to comply with the amendments in this Update and will reclassify the amount stranded in accumulated other comprehensive income to retained earnings in the first quarter of 2018. Stock-Based Compensation. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of modifications unless all the following are met: 1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified; 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU. The amendments in this ASU are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted these changes effective January 1, 2018 on a prospective basis . Adoption of this ASU did not have a material impact on our results of operations or financial position. Other Income. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . The amendments in this ASU clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term in substance nonfinancial asset, in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. The amendments in this ASU also clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted these changes effective January 1, 2018 on a prospective basis . Adoption of this ASU did not have a material impact on our results of operations or financial position. Business Combinations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments in this Update provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted these changes effective January 1, 2018 on a prospective basis . Adoption of this ASU did not have a material impact on our results of operations or financial position. Intangibles . In January 2017, the FASB issued ASU 2017-04 , Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect to early adopt these changes. The Company will apply the amendments in this Update prospectively to each period presented. The Company is evaluating the impact of this new requirement on the financial position, results of operations, and cash flows of the Company. Statement of Cash Flows . In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) . The amendments in this Update provide guidance on eight specific cash flow issues. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years . The Company elected to adopt these changes effective January 1, 2018 . Adoption of this ASU did not have a material impact on our results of operations or financial position. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) . The amendments in this Update require that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company elected to adopt these changes effective January 1, 2018 . Adoption of this ASU did not have a material impact on our results of operations or financial position. Financial Instruments . In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company does not expect to early adopt these changes. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. Leases . In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) . The update requires lessees to recognize, as of the lease commencement date, assets and liabilities for all such leases with lease terms of more than 12 months, which is a change from the current GAAP requirement to recognize only capital leases on the balance sheet. Pursuant to the new standard, the liability initially recognized for the lease obligation is equal to the present value of the lease payments not yet made, discounted over the lease term at the implicit interest rate of the lease, if available, or otherwise at the lessee’s incremental borrowing rate. The lessee is also required to recognize an asset for its right to use the underlying asset for the lease term, based on the liability subject to certain adjustments, such as for initial direct costs. Leases are required to be classified as either operating or finance, with expense on operating leases recorded as a single lease cost on a straight-line basis. For finance leases, interest expense on the lease liability is required to be recognized separately from the straight-line amortization of the right-of-use asset. Quantitative disclosures are required for certain items, including the cost of leases, the weighted-average remaining lease term, the weighted-average discount rate and a maturity analysis of lease liabilities. Additional qualitative disclosures are also required regarding the nature of the leases, such as basis, terms and conditions of: (i) variable interest payments; (ii) extension and termination options; and (iii) residual value guarantees. For lessors, the standard modifies classification criteria and accounting for sales-type and direct financing leases and requires a lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a lessee and record a lease receivable and residual asset (“receivable and residual” approach). This update is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect to early adopt this standard. The new standard must be adopted by applying the new guidance as of the beginning of the earliest comparative period presented, using a modified retrospective transition approach with certain optional practical expedients. T he Company is still evaluating the impact of this new guidance. Financial Instruments . In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this Update require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted these changes effective January 1, 2018 on a prospective basis . Adoption of this ASU did not have a material impact on our results of operations or financial position. Revenue Recognition . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard) . The ASU’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this ASU specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This ASU is effective, as a result of ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the revenue recognition guidance on January 1, 2018 using the modified retrospective approach. A significant amount of the Company’s revenues is excluded from the scope of the amended guidance, including interest income, fee income, and insurance premiums written and earned, as seen on the Consolidated Statements of Operations. Revenue streams that will be subject to the new revenue recognition guidance includes certain revenues associated with lease and loan contracts including property tax administrative fees, fees billed to customers for the convenience of paying through ACH, and insurance administrative fees. In addition, referral fee income generated from referring lease and loan customers to third parties was deemed to be in scope of the amended guidance. The Company analyzed the in scope contracts and determined there were no material changes in the timing of revenue recognition when considering the amended guidance. The adoption of this ASU did not have a material impact on our results of operations, financial position or disclosure to the notes of the consolidated financial statements |
Self Insurance Reserve, Policy [Policy Text Block] | Self-Insurance Beginning in 2014, the Company assumed financial risk for providing health care benefits to its employees through a self-insured group health plan. The estimate of our self-insurance liability contains uncertainty since we must use judgment to estimate the ultimate cost that will be incurred to settle reported claims and unreported claims for incidents incurred but not reported as of the balance sheet date. Liabilities associated with the risk that we retain are estimated by considering historical claims experience, including frequency, severity, demographic factors and other actuarial assumptions. In calculating our liability, we analyze our historical trends, including loss development, and apply appropriate loss development factors to the incurred costs associated with the claims made against our self-insured program. The estimated accruals for these liabilities could be significantly affected if future occurrences or loss development differ from these assumptions. |
Provision for Unpaid Losses and Loss Adjustment Expenses, Policy [Policy Text Block] | Provision for Unpaid Losses and Loss Adjustment Expenses The Company records a provision for insurance losses and loss adjustment expenses. Effective third quarter 2016, on a prospective basis, the expense was recorded in “General and administrative” expense on the Consolidated Statements of Operations and for all previous annual and interim periods is recorded net in “Insurance premiums written and earned .” The liability for losses and loss adjustment expenses includes an amount determined from loss reports and individual cases and an amount, based on historical loss experience and industry statistics, for losses incurred but not reported (“IBNR”). These estimates are continually reviewed and are subject to the impact of future changes in such factors as claim severity and frequency. Loss and loss expenses are paid when advised by the third-party insurance company. Outstanding losses comprise estimates of the amount of reported losses and loss expenses received from the third-party insurance company plus a provision for losses IBNR. IBNR is determined with the assistance of a third-party actuary. For the years ended December 31, 2017 , 2016, and 2015, the Company recognized provision for unpaid losses and loss adjustment expenses of $0. 8 million , $0. 6 million , and $0. 4 million , respectively. |
Insurance Program Deferred Acquisition Costs, Policy [Policy Text Block] | Insurance Program Deferred Acquisition Costs Deferred acquisitions costs represent the fees paid to a third-party insurance company. Effective third quarter 2016, on a prospective basis, the costs are recognized on the Consolidated Statements of Operations in “General and administrative” expense and for all previous interim and annual periods are recognized net in “Insurance premiums written and earned.” For the years ended December 31, 2017, 2016, and 2015, the Company recognized deferred acquisition costs of $0. 9 million , $0. 7 million , and $0. 8 million , respectively. Since the policy’s premiums are recognized on a month to month basis, there is no deferred acquisition costs on the Consolidated Balance Sheet as these are fully recognized through the Consolidated Statements of Operations in the month written. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the Company, including goodwill, exceeds the fair value of the Company. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the Company’s goodwill. Currently, the Company does not have any intangible assets with indefinite useful lives. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. The carrying amounts of intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in excess of its undiscounted projected cash flows. Impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investment Securities Summary [Table Text Block] | December 31, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale: ABS $ 5,717 $ 27 $ (39) $ 5,705 Municipal securities $ 2,420 $ 18 $ (36) $ 2,402 Mutual fund $ 3,553 $ - $ (127) $ 3,426 Total securities available for sale $ 11,690 $ 45 $ (202) $ 11,533 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - Municipal securities $ 2,625 $ - $ (97) $ 2,528 Mutual fund $ 3,479 $ - $ (127) $ 3,352 Total securities available for sale $ 6,104 $ - $ (224) $ 5,880 |
Schedule of Unrealized Loss on Investments [Table Text Block] | December 31, 2017 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ (39) $ 3,703 $ - $ - $ (39) $ 3,703 Municipal securities $ - $ - $ (36) $ 2,402 $ (36) $ 2,402 Mutual fund $ - $ - $ (127) $ 3,426 $ (127) $ 3,426 Total debt securities available for sale $ (39) $ 3,703 $ (163) $ 5,828 $ (202) $ 9,531 December 31, 2016 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - $ - $ - Municipal securities $ (97) $ 2,528 $ - $ - $ (97) $ 2,528 Mutual fund $ - $ - $ (127) $ 3,352 $ (127) $ 3,352 Total debt securities available for sale $ (97) $ 2,528 $ (127) $ 3,352 $ (224) $ 5,880 |
Investments Classified By Contractual Maturity Date [Table Text Block] | Distribution of Maturities 1 Year 1-5 5-10 After 10 or Less Years Years Years Total (Dollars in thousands) Amortized Cost: Available for Sale: ABS $ - $ 3,710 $ 1,006 $ 1,001 $ 5,717 Municipal securities $ - $ 20 $ 1,442 $ 958 $ 2,420 Total debt securities available for sale $ - $ 3,730 $ 2,448 $ 1,959 $ 8,137 Estimated fair value $ - $ 3,683 $ 2,550 $ 1,920 $ 8,153 Weighted-average yield, GAAP basis - 1.91% 2.41% 2.09% 2.10% |
Net Investment in Leases and 32
Net Investment in Leases and Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Investment in Leases and Loans [Abstract] | |
Components of Net Investment in Leases and Loans [Table Text Block] | December 31, 2017 2016 (Dollars in thousands) Minimum lease payments receivable $ 607,736 $ 646,127 Estimated residual value of equipment 26,922 26,790 Unearned lease income, net of initial direct costs and fees deferred (81,769) (88,853) Security deposits (1,046) (1,493) Total leases 551,843 582,571 Commercial loans, net of origination costs and fees deferred Funding Stream 28,128 19,870 CRA (1) 1,222 1,098 Equipment Loans (2) 291,333 174,870 TFG 56,745 29,245 Total commercial loans 377,428 225,083 Allowance for credit losses (14,851) (10,937) $ 914,420 $ 796,717 |
Schedule of Future Minimum Lease Payments Receivable and Amortization of Unearned Lease Income [Table Text Block] | Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2018 $ 249,107 $ 42,090 2019 173,458 23,383 2020 107,523 11,194 2021 55,876 4,200 2022 20,224 841 Thereafter 1,548 61 $ 607,736 $ 81,769 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Allowance For Credit Losses [Abstract] | |
Allowance for Credit Losses on Finance Receivables [Table Text Block] | December 31, 2017 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ 760 $ - $ 9,808 $ 369 $ 10,937 Charge-offs (1,219) - (14,343) (1,154) (16,716) Recoveries 121 - 2,066 49 2,236 Net charge-offs (1,098) - (12,277) (1,105) (14,480) Provision for credit losses 1,374 - 15,132 1,888 18,394 Allowance for credit losses, end of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Ending lease or loan balance (1) $ 27,810 $ 1,222 $ 826,880 $ 55,330 $ 911,242 December 31, 2016 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ 174 $ - $ 8,217 $ 22 $ 8,413 Charge-offs (455) - (11,893) (39) (12,387) Recoveries 93 - 2,404 - 2,497 Net charge-offs (362) - (9,489) (39) (9,890) Provision for credit losses 948 - 11,080 386 12,414 Allowance for credit losses, end of period $ 760 $ - $ 9,808 $ 369 $ 10,937 Ending lease or loan balance (1) $ 19,676 $ 1,098 $ 744,103 $ 28,408 $ 793,285 December 31, 2015 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (2) TFG Total Allowance for credit losses, beginning of period $ - $ - $ 8,537 $ - $ 8,537 Charge-offs (14) - (12,439) - (12,453) Recoveries - - 2,334 - 2,334 Net charge-offs (14) - (10,105) - (10,119) Provision for credit losses 188 - 9,785 22 9,995 Allowance for credit losses, end of period $ 174 $ - $ 8,217 $ 22 $ 8,413 Ending lease or loan balance (1) $ 4,991 $ 1,115 $ 671,922 $ 1,710 $ 679,738 |
Financing Receivable Credit Quality Indicators [Table Text Block] | December 31, 2017 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (1) TFG Total Pass $ 27,405 $ 1,222 $ 801,894 $ 50,342 $ 880,863 Special Mention 56 - 15,141 4,906 20,103 Substandard 47 - 6,428 44 6,519 Doubtful 163 - 2,995 38 3,196 Loss 139 - 422 - 561 Total $ 27,810 $ 1,222 $ 826,880 $ 55,330 $ 911,242 December 31, 2016 Commercial Loans (Dollars in thousands) Funding Stream CRA Equipment Finance (1) TFG Total Pass $ 19,304 $ 1,098 $ 729,769 $ 23,573 $ 773,744 Special Mention 67 - 9,772 4,666 14,505 Substandard 169 - 1,651 169 1,989 Doubtful 136 - 2,649 - 2,785 Loss - - 262 - 262 Total $ 19,676 $ 1,098 $ 744,103 $ 28,408 $ 793,285 |
Past Due Financing Receivables [Table Text Block] | 30-59 60-89 >90 Days Days Days Total Total December 31, 2017 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Commercial Loans: Funding Stream $ 119 $ - $ - $ 119 $ 27,691 $ 27,810 $ 118 CRA - - - - 1,222 1,222 - Equipment Finance (1) 4,621 2,532 3,023 10,176 928,963 939,139 3,023 TFG 178 50 42 270 64,499 64,769 42 Total Leases and Loans (2) $ 4,918 $ 2,582 $ 3,065 $ 10,565 $ 1,022,375 $ 1,032,940 $ 3,183 30-59 60-89 >90 Days Days Days Total Total December 31, 2016 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Commercial Loans: Funding Stream $ - $ - $ - $ - $ 19,676 $ 19,676 $ 66 CRA - - - - 1,098 1,098 - Equipment Finance (1) 2,999 1,768 2,176 6,943 835,506 842,449 2,176 TFG 90 193 - 283 33,673 33,956 - Total Leases and Loans (2) $ 3,089 $ 1,961 $ 2,176 $ 7,226 $ 889,953 $ 897,179 $ 2,242 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill [Table Text Block] | (Dollars in thousands) Total Company Balance at December 31, 2016 $ — Acquisition of HKF on January 4, 2017 1,160 Balance at December 31, 2017 $ 1,160 |
Schedule Of Finite Lived Intangible Assets [Table Text Block] | (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 years $ 360 $ 120 $ 240 Vendor relationships 11 years 920 84 836 Corporate trade name 7 years 60 8 52 $ 1,340 $ 212 $ 1,128 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net [Table Text Block] | December 31, 2017 2016 Depreciable Life (Dollars in thousands) Furniture and equipment $ 2,859 $ 2,831 7 years Computer systems and equipment 15,619 13,804 3-5 years Leasehold improvements 1,194 1,194 Shorter of estimated useful life or remaining lease term Total property and equipment 19,672 17,829 Less - Accumulated depreciation and amortization (15,468) (14,334) Property and equipment, net $ 4,204 $ 3,495 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | December 31, 2017 2016 (Dollars in thousands) Accrued fees receivable $ 3,052 $ 2,762 Prepaid expenses 2,026 2,201 Income taxes receivable (See Note 13 for further discussion) 13,306 — Federal Reserve bank stock 1,711 1,711 Other 6,072 2,734 $ 26,167 $ 9,408 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
Schedule Of Future Minimum Rental Payments For Capital And Operating Leases Table [Text Block] | Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2018 $ 112 $ 1,596 $ 1,708 2019 112 1,527 1,639 2020 112 687 799 2021 65 — 65 2022 — — — Total minimum lease payments $ 401 $ 3,810 $ 4,211 Less: amount representing interest (16) Present value of minimum lease payments $ 385 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contractual Maturities of Time Deposits [Abstract] | |
Contractual Maturities Of Time Deposits [Table Text Block] | Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2018 $ 334,366 2019 215,867 2020 120,966 2021 71,424 2022 28,087 $ 770,710 |
Fair Value Measurements and D39
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis [Table Text Block] | December 31, 2017 December 31, 2016 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets ABS — 5,705 — — Municipal securities $ — $ 2,402 $ — $ 2,528 Mutual fund $ 3,426 $ — $ 3,352 $ — |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments [Table Text Block] | December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Assets Cash and cash equivalents $ 67,146 $ 67,146 $ 61,757 $ 61,757 Time deposits with banks 8,110 7,843 9,605 9,614 Loans, net of allowance 370,865 358,089 221,690 215,843 Federal Reserve Bank Stock 1,711 1,711 0 0 Servicing Rights 2,518 2,554 0 0 Liabilities Deposits $ 809,315 $ 803,470 $ 697,357 $ 694,721 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Current: Federal $ (4,591) $ 11,073 $ 7,983 State 1,419 1,722 1,582 Total current (3,172) 12,795 9,565 Deferred Federal 986 (1,742) 475 State 530 (34) (778) Total deferred 1,516 (1,776) (303) Total income tax expense (benefit) $ (1,656) $ 11,019 $ 9,262 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2017 2016 (Dollars in thousands) Deferred income tax assets: Allowance for credit losses $ 4,143 $ 4,656 Accrued expenses 1,977 1,109 Deferred income 1,548 2,027 Deferred compensation 945 1,072 Other comprehensive income 60 86 Other 399 354 Total deferred income tax assets 9,072 9,304 Deferred income tax liabilities: Lease accounting (23,077) (21,049) Deferred acquisition costs (2,338) (3,113) Depreciation (398) (259) Total deferred income tax liabilities (25,813) (24,421) Net deferred income tax liability $ (16,741) $ (15,117) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.7 % 4.1 % 3.2 % Other permanent differences (0.1) % (0.3) % (0.6) % Excess stock based compensation (1.5) % — % — % Tax benefit due to TCJA (43.4) % — % — % Other 0.3 % 0.1 % (0.9) % Effective rate (7.0) % 38.9 % 36.7 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2017 2016 2015 (Dollars in thousands, except per-share data) Basic EPS Net income $ 25,292 $ 17,279 $ 15,966 Less: net income allocated to participating securities (628) (518) (465) Net income allocated to common stock $ 24,664 $ 16,761 $ 15,501 Weighted average common shares outstanding 12,528,195 12,521,962 12,722,234 Less: Unvested restricted stock awards considered participating securities (312,175) (380,367) (357,361) Adjusted weighted average common shares used in computing basic EPS 12,216,020 12,141,595 12,364,873 Basic EPS $ 2.02 $ 1.38 $ 1.25 Diluted EPS Net income allocated to common stock $ 24,664 $ 16,761 $ 15,501 Adjusted weighted average common shares used in computing basic EPS 12,216,020 12,141,595 12,364,873 Add: Effect of dilutive stock-based compensation awards 33,603 9,102 16,679 Adjusted weighted average common shares used in computing diluted EPS 12,249,623 12,150,697 12,381,552 Diluted EPS $ 2.01 $ 1.38 $ 1.25 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio (1) Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 17.25% $ 177,605 4% $ 41,175 5% $ 51,468 Marlin Business Bank 14.81% $ 145,269 5% $ 49,058 5% $ 49,058 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 18.22% $ 177,605 4.5% $ 43,877 6.5% $ 63,378 Marlin Business Bank 15.21% $ 145,269 6.5% $ 62,088 6.5% $ 62,088 Tier 1 Risk-based Capital Marlin Business Services Corp. 18.22% $ 177,605 6% $ 58,503 8% $ 78,003 Marlin Business Bank 15.21% $ 145,269 8% $ 76,416 8% $ 76,416 Total Risk-based Capital Marlin Business Services Corp. 19.47% $ 189,826 8% $ 78,003 10% $ 97,504 Marlin Business Bank 16.46% $ 157,244 15% $ 143,280 10% (1) $ 95,520 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-based Compensation, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions Weighted Averages: Risk-free interest rate 1.82% Expected life (years) 4.50 Expected volatility 34.62% Expected dividends 2.17% |
Schedule of Stock-based Compensation, Stock Options Activity [Table Text Block] | Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2014 193,351 $ 10.23 Granted — — Exercised (61,937) 9.48 Forfeited (80,728) 9.64 Expired — — Outstanding, December 31, 2015 50,686 $ 12.09 Granted — — Exercised (7,380) 10.44 Forfeited (1,666) 12.41 Expired — — Outstanding, December 31, 2016 41,640 $ 12.37 Granted 115,883 25.75 Exercised (39,416) 12.37 Forfeited (21,122) 24.35 Expired — — Outstanding, December 31, 2017 96,985 $ 25.75 |
Schedule of Stock-based Compensation, Options Outstanding and Exercisable under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Weighted Weighted Aggregate Weighted Weighted Aggregate Average Average Intrinsic Average Average Intrinsic Range of Number Remaining Exercise Value Number Remaining Exercise Value Exercise Prices Outstanding Life (Years ) Price (In thousands) Exercisable Life (Years ) Price (In thousands) $ 25.75 96,985 6.2 25.75 — 0 0.0 - — 96,985 6.2 25.75 $ — 0 0.0 - $ — |
Schedule of Stock-based Compensation, Restricted Stock Activity [Table Text Block] | Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2014 346,036 $ 15.99 Granted 179,162 16.87 Vested (188,287) 15.41 Forfeited (23,675) 18.53 Outstanding at December 31, 2015 313,236 $ 16.65 Granted 183,506 15.31 Vested (77,149) 16.11 Forfeited (23,075) 17.73 Outstanding at December 31, 2016 396,518 $ 16.07 Granted 44,758 25.36 Vested (122,202) 16.19 Forfeited (41,457) 16.07 Outstanding at December 31, 2017 277,617 $ 17.51 |
Schedule of Stock-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2015 — $ — Granted 120,000 9.47 Forfeited — — Converted — — Outstanding at December 31, 2016 120,000 $ 9.47 Granted 72,180 24.06 Forfeited (33,627) 14.13 Converted — — Outstanding at December 31, 2017 158,553 15.13 Service-based RSUs Outstanding at December 31, 2016 — $ — Granted 30,653 25.65 Forfeited (4,813) 25.75 Converted — — Cancelled due to non-achievement of market condition — — Outstanding at December 31, 2017 25,840 25.63 |
Schedule of Stock-based Payment Award, Restricted Stock Units Valuation Assumptions [Table Text Block] | Year Ended December 31, 2017 2016 2015 Grant date stock price $ 25.75 18.24 — Risk-free interest rate 1.72 % 1.06 % — Expected volatility 33.42 % 35.16 % — Dividend yield — — — |
Condensed Financial Informati44
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent [Abstract] | |
Schedule Of Condensed Balance Sheet | December 31, 2017 2016 (Dollars in thousands, except per-share data) ASSETS Investment in and advances to subsidiaries: Bank subsidiary $ 145,249 $ 130,636 Nonbank subsidiaries 34,400 31,653 Total assets $ 179,649 $ 162,289 LIABILITIES AND STOCKHOLDERS’ EQUITY Total liabilities - - 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; 12,449,458 and 12,572,114 shares issued and outstanding at December 31, 2017 and 2016, respectively 124 126 Additional paid-in capital 82,588 83,505 Stock subscription receivable (2) (2) Accumulated other comprehensive loss (96) (138) Retained earnings 97,035 78,798 Total stockholders’ equity 179,649 162,289 Total liabilities and stockholders’ equity $ 179,649 $ 162,289 |
Schedule Of Condensed Income Statement | Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Income: Dividends from nonbank subsidiaries $ 11,556 $ 7,268 $ 43,569 Dividends from bank subsidiary 6,000 7,600 13,000 Total revenue 17,556 14,868 56,569 Total expense - - - Income before income taxes and equity in undistributed net income of subsidiaries 17,556 14,868 56,569 Income tax (benefit) expense - - - Equity in undistributed income (loss): Bank subsidiary 14,571 7,247 7,532 Nonbank subsidiaries (6,835) (4,836) (48,135) Net Income $ 25,292 $ 17,279 $ 15,966 Other comprehensive income: Amortization of net deferred losses on Increase (decrease) in fair value of securities available for sale 68 (15) (181) Tax effect (26) 6 69 Total other comprehensive income (loss) 42 (9) (112) Comprehensive income $ 25,334 $ 17,270 $ 15,854 |
Schedule Of Condensed Cash Flow Statement | Year Ended December 31, 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities: Net income $ 25,292 $ 17,279 $ 15,966 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net (income) losses of subsidiaries (19,292) (9,679) (2,966) Net cash provided by operating activities 6,000 7,600 13,000 Cash flows from investing activities: Capital returned from nonbank subsidiaries 11,556 7,268 43,569 Capital contributed to subsidiaries (6,941) (7,952) (13,820) Net cash provided by (used in) investing activities 4,615 (684) 29,749 Cash flows from financing activities: Issuances of common stock 356 259 234 Repurchases of common stock (4,501) (345) (11,320) Dividends paid to common stockholders (6,958) (6,907) (32,249) Exercise of stock options 488 77 586 Net cash used in financing activities (10,615) (6,916) (42,749) Net increase in total cash and cash equivalents - - - Total cash and cash equivalents, beginning of period - - - Total cash and cash equivalents, end of period $ - $ - $ - |
Selected Quarterly Finacial Dat
Selected Quarterly Finacial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal Year Quarters First Second Third Fourth (Dollars in thousands, except per-share data) Year ended December 31, 2017 Interest income $ 20,531 $ 21,567 $ 22,363 $ 22,994 Fee income 3,530 3,745 3,780 3,809 Interest and fee income 24,061 25,312 26,143 26,803 Interest expense 2,340 2,612 3,000 3,228 Provision for credit losses 3,884 4,314 5,680 4,516 Other Income 3,753 4,079 3,602 5,298 Income tax expense (benefit) 489 2,732 2,049 (6,926) Net income 1,540 4,553 3,305 15,894 Basic earnings per share 0.12 0.36 0.26 1.27 Diluted earnings per share 0.12 0.36 0.26 1.27 Cash dividends declared per share 0.14 0.14 0.14 0.14 Net investment in leases and loans 828,840 862,703 886,430 914,420 Total assets 944,492 985,082 1,013,017 1,040,160 Year ended December 31, 2016 Interest income $ 17,531 $ 18,187 $ 18,803 $ 20,188 Fee income 3,834 3,969 3,944 3,796 Interest and fee income 21,365 22,156 22,747 23,984 Interest expense 1,692 1,857 2,055 2,174 Provision for credit losses 3,075 2,668 3,137 3,534 Other Income 2,077 2,063 2,632 2,986 Income tax expense 2,325 2,752 3,028 2,914 Net income 3,651 4,468 4,345 4,815 Basic earnings per share 0.29 0.36 0.35 0.38 Diluted earnings per share 0.29 0.36 0.35 0.38 Cash dividends declared per share 0.14 0.14 0.14 0.14 Net investment in leases and loans 702,126 703,750 759,422 796,717 Total assets 801,106 841,791 869,001 892,158 |
The Company (Details)
The Company (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,160 | $ 0 |
Finite Lived Intangible Assets Acquired | $ 1,300 | |
Business Acquisition, Date Of Acquisition Agreement | Jan. 4, 2017 | |
Assurance One Ltd Member [Member] | ||
Entity Information [Line Items] | ||
Entity Incorporation, State Country Name | Bermuda | |
Entity Incorporation, Date of Incorporation | May 31, 2000 | |
Marlin Business Bank [Member] | ||
Entity Information [Line Items] | ||
Entity Incorporation, State Country Name | Utah | |
Entity Incorporation, Date of Incorporation | Mar. 12, 2008 | |
Marlin Business Services Corp [Member] | ||
Entity Information [Line Items] | ||
Entity Incorporation, State Country Name | Pennsylvania | |
Entity Incorporation, Date of Incorporation | Aug. 5, 2003 | |
Horizon Keystone Financial [Member] | ||
Business Acquisition [Line Items] | ||
Payments To Acquire Businesses, Gross | $ 2,500 | |
Goodwill | 1,200 | |
Finite Lived Intangible Assets Acquired | $ 1,300 | |
Business Acquisition, Date Of Acquisition Agreement | Jan. 4, 2017 |
Summary of Signicant Accounting
Summary of Signicant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 30, 2017 | Jul. 29, 2014 | |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||||
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | ||||
Revenue Recognition [Abstract] | |||||
Threshold Period Past Due For Recognition Of Insurance Income | 120 days | ||||
Net Premiums Written And Earned | $ 7.2 | $ 6.2 | $ 5.5 | ||
Deferred Policy Acquisition Costs | 0.9 | 0.7 | 0.8 | ||
Liability For Unpaid Claims And Claims Adjustment Expense Incurred But Not Reported IBNR Claims Amount | $ 0.8 | $ 0.6 | $ 0.4 | ||
Stock Repurchase [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 10 | $ 15 | |||
Returned Equipment [Abstract] | |||||
Threshold to hold returned equipment | 120 days | ||||
Other Investments Abstract | |||||
Threshold Original Maturity Time Deposits | 90 days | ||||
Quantifying Prior Year Misstatements Corrected In Current Year Financial Statements [Abstract] | |||||
Immaterial Error Correction | During the second quarter of 2017, the Company identified that the sale of certain leases had been reported as cash flows from operating activities that should have been presented as investing activities. In addition, the Company also identified that the deferral of certain expenses associated with the cost of originating leases had been reported as an adjustment to operating cash flow rather than as an investing activity. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2016 was adjusted to decrease net cash flows from operating activities by $5.4 million and increase net cash flows used in investing activities by the same amount. The Company corrected the previously presented cash flows for these items and in doing so, the consolidated statement of cash flow for the year ended December 31, 2015 was adjusted to increase net cash flows from operating activities by $8.5 million and decrease net cash flows used in investing activities by the same amount. During the fourth quarter of 2017, the Company identified that the Company’s equipment finance agreements should have been presented as loans rather than as part of minimum lease payments receivable. The Company corrected the previously presented disclosures within the Net Investment in Leases and Loans footnote for this item and in doing so, the minimum lease payments receivable as of December 31, 2016 was adjusted to decrease the balance by $221.7 million and increase the equipment loans by $187.7 million and TFG by $34.0 million. The Company also adjusted the unearned lease income, net of initial direct costs and fees incurred to decrease the balance by $26.3 million and decrease the Equipment Loans by $21.6 million and TFG by $4.7 million. Additionally, the Company corrected the previously presented disclosures within the Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments footnote for this item and in doing so, the carrying amount and fair value of loans, net of allowance as of December 31, 2016 increased by $192.7 million and $186.7 million, respectively. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it is immaterial to previously filed consolidated financial statements. |
Summary of Signicant Accounti48
Summary of Signicant Accounting Policies (Income Tax) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,014 |
Minimum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,014 |
Maximum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,017 |
Maximum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,017 |
Summary of Signicant Accounti49
Summary of Signicant Accounting Policies (Interest Income) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Threshold Period Past Due For Recognition Of Interest Income | 90 days |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 11,690 | $ 6,104 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain Before Tax | 45 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (202) | (224) |
Available-for-sale Securities, fair value | 11,533 | 5,880 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 5,717 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain Before Tax | 27 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (39) | 0 |
Available-for-sale Securities, fair value | 5,705 | 0 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 2,420 | 2,625 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain Before Tax | 18 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (36) | (97) |
Available-for-sale Securities, fair value | 2,402 | 2,528 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,553 | 3,479 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain Before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (127) | (127) |
Available-for-sale Securities, fair value | $ 3,426 | $ 3,352 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Loss and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | $ (39) | $ (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 3,703 | 2,528 |
Available-for-sale Securities, Continuous Unrealized Loss Position 12 Months or Longer, Accumulated Loss | (163) | (127) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 5,828 | 3,352 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (202) | (224) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 9,531 | 5,880 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | (39) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 3,703 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (39) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 3,703 | 0 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | 0 | (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 2,528 |
Available-for-sale Securities, Continuous Unrealized Loss Position 12 Months or Longer, Accumulated Loss | (36) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,402 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (36) | (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 2,402 | 2,528 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position 12 Months or Longer, Accumulated Loss | (127) | (127) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,426 | 3,352 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (127) | (127) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 3,426 | $ 3,352 |
Investment Securuties (Contract
Investment Securuties (Contractual Maturity of Debt Securities)(Details) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 3,730 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 2,448 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 1,959 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 8,137 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 3,683 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 2,550 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 1,920 |
Available-for-sale Securities, Debt Securities, Fair Value, Total | $ 8,153 |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.10% |
One Year or Less [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 0.00% |
After One Year Through Five Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 1.91% |
After Five Years Through Ten Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.41% |
After Ten Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.09% |
Asset Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 3,710 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 1,006 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 1,001 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 5,717 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 20 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 1,442 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 958 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | $ 2,420 |
Net Investment in Leases and 53
Net Investment in Leases and Loans (Narratives) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Net Investment in Leases and Loans [Abstract] | ||
Net Investment in Leases, Initial Direct Costs | $ 17,200 | $ 13,900 |
Net Investment in Loans, Origination Costs | 800 | 400 |
Product Information [Line Items] | ||
Estimated Residual Value of Equipment | 26,922 | 26,790 |
Non-accrual leases and loans, end of period | 3,183 | 2,242 |
Renegotiated leases and loans, end of period | 4,500 | 800 |
Copier Product [Member] | ||
Product Information [Line Items] | ||
Estimated Residual Value of Equipment | 22,600 | $ 22,500 |
Leases Pledged as Collateral [Member] | ||
Borrowings [Line Items] | ||
Loans and Leases Receivable, Collateral for Long-term Borrowings | $ 37,800 |
Net Investment in Leases and 54
Net Investment in Leases and Loans (Net Investment Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment in Leases and Loans [Abstract] | |||||||||||
Minimum lease payments receivable | $ 607,736 | $ 646,127 | |||||||||
Estimated Residual Value of Equipment | 26,922 | 26,790 | |||||||||
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | (81,769) | (88,853) | |||||||||
Security Deposits | (1,046) | (1,493) | |||||||||
Total leases | 551,843 | 582,571 | |||||||||
Funding Stream loans | 28,128 | 19,870 | |||||||||
Community Reinvestment Act loans | 1,222 | [1] | 1,098 | ||||||||
Equipment loans | 291,333 | [2] | 174,870 | ||||||||
Transportation Finance Group loans | 56,745 | 29,245 | |||||||||
Total commercial loans,net of origination costs and fees deferred | 377,428 | 225,083 | |||||||||
Allowance for Credit Losses | (14,851) | (10,937) | $ (8,413) | $ (8,537) | |||||||
Net investment in leases and loans | $ 914,420 | $ 886,430 | $ 862,703 | $ 828,840 | $ 796,717 | $ 759,422 | $ 703,750 | $ 702,126 | |||
[1] | CRA loans are comprised of loans originated under a line of credit to satisfy its obligations under the Community Reinvestment Act of 1977. | ||||||||||
[2] | E quipment loans are comprised of Equipment Finance Agreements, Install Purchase Agreements, and other loans. |
Net Investment in Leases and 55
Net Investment in Leases and Loans (Future Minimum Lease Payments Receivable Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
2,018 | $ 249,107 | |
2,019 | 173,458 | |
2,020 | 107,523 | |
2,021 | 55,876 | |
2,022 | 20,224 | |
Thereafter | 1,548 | |
Minimum Lease Payments Receivable | 607,736 | $ 646,127 |
Future Scheduled Income Amortization [Abstract] | ||
2,018 | 42,090 | |
2,019 | 23,383 | |
2,020 | 11,194 | |
2,021 | 4,200 | |
2,022 | 841 | |
Thereafter | 61 | |
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | $ 81,769 | $ 88,853 |
Concentrations of Risk (Narrati
Concentrations of Risk (Narratives)(Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Impairment of Value Recorded in Period | $ 0 | $ 0 | $ 0 |
Single Vendor Source [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 2.00% | 2.00% | |
Single Obligor [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 1.00% | 1.00% | |
Copier Product [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 83.90% | 83.80% | |
Other Products [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
California [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 13.00% | |
Texas [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 10.00% | |
All Other Individual Member [Member] | Geographic Concentration Risk [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 7.00% | 7.00% | |
Florida [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Credit Losses [Line Items] | ||||
Loans and Leases Receivable, Allowance | $ 14,851 | $ 10,937 | $ 8,413 | $ 8,537 |
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | |||
Threshold Period Past Due For Recognition Of Interest Income | 90 days | |||
Finance Receivables 90 Days or More Past Due and Still Accruing | $ 0 | 0 | ||
Transfer of leases to held-for-sale | 62,077 | 16,884 | 0 | |
Funding Stream Loan [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Loans and Leases Receivable, Allowance | $ 1,036 | $ 760 | $ 174 | |
Threshold Period Past Due for Write-off of Financing Receivable | 60 days | |||
Threshold Period Past Due For Recognition Of Interest Income | 30 days | |||
Financing Receivable, Recorded Investment, 30 Days Past Due and Still Accruing | $ 0 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | $ 10,937 | $ 8,413 | $ 10,937 | $ 8,413 | $ 8,537 | |||||||||||
Charge-offs | (16,716) | (12,387) | (12,453) | |||||||||||||
Recoveries | 2,236 | 2,497 | 2,334 | |||||||||||||
Net charge-offs | (14,480) | (9,890) | (10,119) | |||||||||||||
Provision for credit losses | $ 4,516 | $ 5,680 | $ 4,314 | 3,884 | $ 3,534 | $ 3,137 | $ 2,668 | 3,075 | 18,394 | 12,414 | 9,995 | |||||
Allowance for credit losses, end of period | 14,851 | 10,937 | 14,851 | 10,937 | 8,413 | |||||||||||
Total net finance receivables, end of period | [1] | 911,242 | 793,285 | 911,242 | 793,285 | 679,738 | ||||||||||
Average total finance receivables | 846,743 | 720,060 | 636,790 | |||||||||||||
Non-accrual leases and loans, end of period | 3,183 | 2,242 | 3,183 | 2,242 | ||||||||||||
Renegotiated leases and loans, end of period | 4,500 | 800 | 4,500 | 800 | ||||||||||||
Funding Stream Loan [Member] | ||||||||||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | 760 | 174 | 760 | 174 | ||||||||||||
Charge-offs | (1,219) | (455) | (14) | |||||||||||||
Recoveries | 121 | 93 | 0 | |||||||||||||
Net charge-offs | (1,098) | (362) | (14) | |||||||||||||
Provision for credit losses | 1,374 | 948 | 188 | |||||||||||||
Allowance for credit losses, end of period | 1,036 | 760 | 1,036 | 760 | 174 | |||||||||||
Total net finance receivables, end of period | 27,810 | 19,676 | 27,810 | 19,676 | 4,991 | |||||||||||
Non-accrual leases and loans, end of period | 118 | 66 | 118 | 66 | ||||||||||||
Community Reinvestment Act [Member] | ||||||||||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | 0 | 0 | 0 | 0 | ||||||||||||
Charge-offs | 0 | 0 | 0 | |||||||||||||
Recoveries | 0 | 0 | 0 | |||||||||||||
Net charge-offs | 0 | 0 | 0 | |||||||||||||
Provision for credit losses | 0 | 0 | 0 | |||||||||||||
Allowance for credit losses, end of period | 0 | 0 | 0 | 0 | 0 | |||||||||||
Total net finance receivables, end of period | 1,222 | 1,098 | 1,222 | 1,098 | 1,115 | |||||||||||
Non-accrual leases and loans, end of period | 0 | 0 | 0 | 0 | ||||||||||||
Equipment Finance [Member] | ||||||||||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | [2] | 9,808 | 8,217 | 9,808 | 8,217 | |||||||||||
Charge-offs | (14,343) | (11,893) | (12,439) | |||||||||||||
Recoveries | 2,066 | 2,404 | 2,334 | |||||||||||||
Net charge-offs | (12,277) | (9,489) | (10,105) | |||||||||||||
Provision for credit losses | 15,132 | 11,080 | 9,785 | |||||||||||||
Allowance for credit losses, end of period | [2] | 12,663 | 9,808 | 12,663 | 9,808 | 8,217 | ||||||||||
Total net finance receivables, end of period | 826,880 | [2] | 744,103 | [2] | 826,880 | [2] | 744,103 | [2] | 671,922 | |||||||
Non-accrual leases and loans, end of period | 3,023 | 2,176 | 3,023 | 2,176 | ||||||||||||
Transportation Finance Group [Member] | ||||||||||||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | $ 369 | $ 22 | 369 | 22 | ||||||||||||
Charge-offs | (1,154) | (39) | 0 | |||||||||||||
Recoveries | 49 | 0 | 0 | |||||||||||||
Net charge-offs | (1,105) | (39) | 0 | |||||||||||||
Provision for credit losses | 1,888 | 386 | 22 | |||||||||||||
Allowance for credit losses, end of period | 1,152 | 369 | 1,152 | 369 | 22 | |||||||||||
Total net finance receivables, end of period | 55,330 | 28,408 | 55,330 | 28,408 | $ 1,710 | |||||||||||
Non-accrual leases and loans, end of period | $ 42 | $ 0 | $ 42 | $ 0 | ||||||||||||
[1] | (1) For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. | |||||||||||||||
[2] | (2 ) Equipment Finance consists of Equipment Finance Agreements, Install Purchase Agreements, and other leases and loans. |
Allowance for Credit Losses (Po
Allowance for Credit Losses (Portfolio Amounts by Classification) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | [1] | $ 911,242 | $ 793,285 | $ 679,738 | ||
Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 27,810 | 19,676 | 4,991 | |||
Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 1,222 | 1,098 | 1,115 | |||
Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 826,880 | [2] | 744,103 | [2] | 671,922 | |
Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 55,330 | 28,408 | $ 1,710 | |||
Pass [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 880,863 | 773,744 | ||||
Pass [Member] | Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 27,405 | 19,304 | ||||
Pass [Member] | Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 1,222 | 1,098 | ||||
Pass [Member] | Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 801,894 | 729,769 | ||||
Pass [Member] | Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 50,342 | 23,573 | ||||
Special Mention [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 20,103 | 14,505 | ||||
Special Mention [Member] | Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 56 | 67 | ||||
Special Mention [Member] | Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 0 | 0 | ||||
Special Mention [Member] | Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 15,141 | 9,772 | ||||
Special Mention [Member] | Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 4,906 | 4,666 | ||||
Substandard [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 6,519 | 1,989 | ||||
Substandard [Member] | Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 47 | 169 | ||||
Substandard [Member] | Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 0 | 0 | ||||
Substandard [Member] | Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 6,428 | 1,651 | ||||
Substandard [Member] | Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 44 | 169 | ||||
Doubtful [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 3,196 | 2,785 | ||||
Doubtful [Member] | Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 163 | 136 | ||||
Doubtful [Member] | Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 0 | 0 | ||||
Doubtful [Member] | Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 2,995 | 2,649 | ||||
Doubtful [Member] | Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 38 | 0 | ||||
Loss [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 561 | 262 | ||||
Loss [Member] | Funding Stream Loan [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 139 | 0 | ||||
Loss [Member] | Community Reinvestment Act [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 0 | 0 | ||||
Loss [Member] | Equipment Finance [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | 422 | 262 | ||||
Loss [Member] | Transportation Finance Group [Member] | ||||||
Amount of portfolio [Line Items] | ||||||
Total net finance receivables, end of period | $ 0 | $ 0 | ||||
[1] | (1) For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. | |||||
[2] | (2 ) Equipment Finance consists of Equipment Finance Agreements, Install Purchase Agreements, and other leases and loans. |
Allowance for Credit Losses (60
Allowance for Credit Losses (Delinquencies and Non-accrual) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | $ 10,565 | $ 7,226 | ||||
Financing Receivable, Recorded Investment, Current | 1,022,375 | 889,953 | ||||
Total gross finance receivables, end of period | [1] | 1,032,940 | 897,179 | |||
Total net finance receivables, end of period | [2] | 911,242 | 793,285 | $ 679,738 | ||
Non-accrual leases and loans, end of period | 3,183 | 2,242 | ||||
Funding Stream Loan [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 119 | 0 | ||||
Financing Receivable, Recorded Investment, Current | 27,691 | 19,676 | ||||
Total net finance receivables, end of period | 27,810 | 19,676 | 4,991 | |||
Non-accrual leases and loans, end of period | 118 | 66 | ||||
Community Reinvestment Act [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivable, Recorded Investment, Current | 1,222 | 1,098 | ||||
Total net finance receivables, end of period | 1,222 | 1,098 | 1,115 | |||
Non-accrual leases and loans, end of period | 0 | 0 | ||||
Equipment Finance [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 10,176 | 6,943 | ||||
Financing Receivable, Recorded Investment, Current | 928,963 | 835,506 | ||||
Total gross finance receivables, end of period | [3] | 939,139 | 842,449 | |||
Total net finance receivables, end of period | 826,880 | [3] | 744,103 | [3] | 671,922 | |
Non-accrual leases and loans, end of period | 3,023 | 2,176 | ||||
Transportation Finance Group [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 270 | 283 | ||||
Financing Receivable, Recorded Investment, Current | 64,499 | 33,673 | ||||
Total gross finance receivables, end of period | 64,769 | 33,956 | ||||
Total net finance receivables, end of period | 55,330 | 28,408 | $ 1,710 | |||
Non-accrual leases and loans, end of period | 42 | 0 | ||||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 4,918 | 3,089 | ||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Funding Stream Loan [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 119 | 0 | ||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Community Reinvestment Act [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Equipment Finance [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 4,621 | 2,999 | ||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Transportation Finance Group [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 178 | 90 | ||||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 2,582 | 1,961 | ||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Funding Stream Loan [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Community Reinvestment Act [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Equipment Finance [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 2,532 | 1,768 | ||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Transportation Finance Group [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 50 | 193 | ||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 3,065 | 2,176 | ||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Funding Stream Loan [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Community Reinvestment Act [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | ||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Equipment Finance [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | 3,023 | 2,176 | ||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Transportation Finance Group [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Financing Receivable, Recorded Investment, Past Due | $ 42 | $ 0 | ||||
[1] | (2) Represents total minimum lease and loan payments receivable for Equ ipment Finance and TFG and as a percentage of principal outstanding for Funding Stream and CRA. | |||||
[2] | (1) For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. | |||||
[3] | (2 ) Equipment Finance consists of Equipment Finance Agreements, Install Purchase Agreements, and other leases and loans. |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 1,160 | $ 0 |
Goodwill Impairment Loss | 0 | |
Finite Lived Intangible Assets Acquired | $ 1,300 | |
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 8 years 8 months | |
Amortization of Intangible Assets | $ 200 | |
Estimated amortization expense in 2018 | 212 | |
Estimated amortization expense in 2019 | 212 | |
Estimated amortization expense in 2020 | 92 | |
Estimated amortization expense in 2021 | 92 | |
Estimated amortization expense in 2022 | 92 | |
Impairment Of Intangible Assets, Finite-lived | $ 0 | |
Business Acquisition, Date Of Acquisition Agreement | Jan. 4, 2017 |
Summary of Changes In Carrying
Summary of Changes In Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 0 |
Acquisition of Horizon Keystone Financial on January 4, 2017 | 1,160 |
Goodwill, Ending Balance | $ 1,160 |
Intangible Assets (Detail)
Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Cost | $ 1,340 |
Accumulated Amortization | 212 |
Net Value | $ 1,128 |
Lender Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Cost | $ 360 |
Accumulated Amortization | 120 |
Net Value | $ 240 |
Vendor Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 11 years |
Cost | $ 920 |
Accumulated Amortization | 84 |
Net Value | $ 836 |
Trade Names [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 7 years |
Cost | $ 60 |
Accumulated Amortization | 8 |
Net Value | $ 52 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation and Amortization Expense [Abstract] | |||
Depreciation and Amortization Expense | $ 1,500 | $ 1,300 | $ 1,200 |
Furniture and Equipment | 2,859 | 2,831 | |
Computer Systems and Equipment | 15,619 | 13,804 | |
Leasehold Improvements | 1,194 | 1,194 | |
Total Property and Equipment | 19,672 | 17,829 | |
Accumulated Depreciation and Amortization | (15,468) | (14,334) | |
Property and equipment, Net, Total | $ 4,204 | $ 3,495 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P7Y | ||
Computer Systems and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P3Y | ||
Computer Systems and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P5Y | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | Shorter of estimated useful life or remaining lease term |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets [Abstract] | ||
Accrued fees receivable | $ 3,052 | $ 2,762 |
Prepaid expenses | 2,026 | 2,201 |
Income taxes receivable | 13,306 | 0 |
Federal Reserve Bank Stock | 1,711 | 1,711 |
Other assets, miscellaneous | 6,072 | 2,734 |
Other assets, total | $ 26,167 | $ 9,408 |
Commitments and Contingencies66
Commitments and Contingencies (Narratives) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Number | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies [Abstract] | |||
Loan Participation Ownership Percentage | 1.20% | ||
Unfunded Loan Commitments | $ 0.8 | $ 0.9 | |
Membership Expiration Date | Sep. 30, 2018 | ||
Number of Offices | Number | 8 | ||
Operating Leases, Rent Expense | $ 1.1 | $ 1.1 | $ 1.1 |
Commitments and Contingencies67
Commitments and Contingencies (Future Lease Payment Obligations) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments [Abstract] | |
2018, capital lease payments due | $ 112 |
2019, capital lease payments due | 112 |
2020, capital lease payments due | 112 |
2021, capital lease payments due | 65 |
2022, capital lease payments due | 0 |
Thereafter, capital lease payments due | 0 |
Total minimum lease payments due, capital leases | 401 |
Less: amount representing interest | (16) |
Present value of minimum lease payments, capital leases | 385 |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2018, operating lease payments due | 1,596 |
2019, operating lease payments due | 1,527 |
2020, operating lease payments due | 687 |
2021, operating lease payments due | 0 |
2022, operating lease payments due | 0 |
Thereafter, operating lease payments due | 0 |
Total minimum lease payments due, operating leases | 3,810 |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
2017, total lease payments due | 1,708 |
2018, total lease payments due | 1,639 |
2019, total lease payments due | 799 |
2020, total lease payments due | 65 |
2021, total lease payments due | 0 |
Thereafter, total lease payments due | 0 |
Total minimum lease payments due | $ 4,211 |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Contractual Maturities of Time Deposits [Abstract] | ||
Deposits, Total | $ 809,315,000 | $ 697,357,000 |
Marlin Business Bank [Member] | ||
Contractual Maturities of Time Deposits [Abstract] | ||
2,018 | 334,366,000 | |
2,019 | 215,867,000 | |
2,020 | 120,966,000 | |
2,021 | 71,424,000 | |
2,022 | 28,087,000 | |
Deposits, Total | 770,710,000 | |
Maximum time deposit liability denomination | 250,000 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of deposit liabilities outstanding | 1.60% | |
Money market deposit accounts | $ 38,600,000 |
Fair Value Measurements and D69
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Balances Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 11,533 | $ 5,880 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,426 | 3,352 |
Fair Value, Inputs, Level 2 [Member] | Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 5,705 | |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,402 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,402 | |
Interest-rate caps purchased | $ 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,528 |
Fair Value Measurements and D70
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Estimated Fair Values and Carrying Amounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | $ 67,146 | $ 61,757 | $ 60,129 | $ 110,656 |
Time deposits | 8,110 | 9,605 | ||
Restricted interest-earning deposits with banks | 0 | 0 | ||
Total commercial loans,net of origination costs and fees deferred | 377,428 | 225,083 | ||
Federal Reserve Bank Stock | 1,711 | 1,711 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 809,315 | 697,357 | ||
Accounts payable and accrued expenses | 31,492 | 0 | ||
Sales And Property Taxes Payable | 2,963 | 0 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 67,146 | 61,757 | ||
Time deposits | 8,110 | 9,605 | ||
Restricted interest-earning deposits with banks | 0 | 0 | ||
Loans, net of allowance | 370,865 | 221,690 | ||
Federal Reserve Bank Stock | 1,711 | 0 | ||
Servicing Rights | 2,518 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 809,315 | 697,357 | ||
Accounts payable and accrued expenses | 31,492 | 0 | ||
Sales And Property Taxes Payable | 2,963 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 67,146 | 61,757 | ||
Restricted interest-earning deposits with banks | 0 | 0 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Time deposits | 7,843 | 9,614 | ||
Loans, net of allowance | 358,089 | 215,843 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | $ 803,470 | $ 694,721 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ 1,516,000 | $ (1,776,000) | $ (303,000) |
Deferred Tax Asset | 9,072,000 | 9,304,000 | |
Deferred Tax Liability | $ 25,813,000 | $ 24,421,000 | |
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State [Member] | |||
Income Tax Examination [Line Items] | |||
Operating Loss Carryforwards | $ 6,700,000 | $ 8,000,000 | |
TCJA [Member] | |||
Income Tax Examination [Line Items] | |||
Deferred Income Tax Expense (Benefit) | 10,200,000 | ||
Deferred Tax Asset | 4,500,000 | ||
Deferred Tax Liability | $ 14,700,000 | ||
Statutory Federal Income Tax Rate | 21.00% | ||
Minimum [Member] | Federal [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Year under Examination | 2,014 | ||
Minimum [Member] | State [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Year under Examination | 2,014 | ||
Maximum [Member] | Federal [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Year under Examination | 2,017 | ||
Maximum [Member] | State [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Year under Examination | 2,017 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||||||||||
Current Federal Tax Expense (Benefit) | $ (4,591,000) | $ 11,073,000 | $ 7,983,000 | ||||||||
Current State and Local Tax Expense (Benefit) | 1,419,000 | 1,722,000 | 1,582,000 | ||||||||
Current Income Tax Expense (Benefit), Total | (3,172,000) | 12,795,000 | 9,565,000 | ||||||||
Deferred Federal Income Tax Expense (Benefit) | 986,000 | (1,742,000) | 475,000 | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | 530,000 | (34,000) | (778,000) | ||||||||
Deferred Income Tax Expense (Benefit), Total | 1,516,000 | (1,776,000) | (303,000) | ||||||||
Income Tax Expense (Benefit), Total | $ (6,926,000) | $ 2,049,000 | $ 2,732,000 | $ 489,000 | $ 2,914,000 | $ 3,028,000 | $ 2,752,000 | $ 2,325,000 | $ (1,656,000) | $ 11,019,000 | $ 9,262,000 |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Liability Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Deferred Tax Assets [Abstract] | ||
Deferred Tax Asset, Allowance for Credit Losses | $ 4,143 | $ 4,656 |
Deferred Tax Asset, Accrued Expenses | 1,977 | 1,109 |
Deferred Tax Asset, Deferred Income | 1,548 | 2,027 |
Deferred Tax Asset, Deferred Compensation | 945 | 1,072 |
Deferred Tax Asset, Other Comprehensive Income | 60 | 86 |
Deferred Tax Asset, Other | 399 | 354 |
Total Deferred Income Tax Assets | 9,072 | 9,304 |
Components of Deferred Tax Liabilities [Abstract] | ||
Deferred Tax Liability, Lease Accounting | (23,077) | (21,049) |
Deferred Tax Liability, Deferred Acquisition Costs | (2,338) | (3,113) |
Deferred Tax Liability, Depreciation | (398) | (259) |
Total Deferred Income Tax Liabilities | (25,813) | (24,421) |
Net Deferred Income Tax Liability | $ (16,741) | $ (15,117) |
Income Taxes (Statutory Rate Re
Income Taxes (Statutory Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State Taxes, Net of Federal Benefit | 2.70% | 4.10% | 3.20% |
Other Permanent Differences | (0.10%) | (0.30%) | (0.60%) |
Interest on Amended Returns | 0.00% | 0.00% | 0.00% |
Excess stock based compensation | (1.50%) | 0.00% | 0.00% |
Tax benefit due to TCJA | (43.40%) | 0.00% | 0.00% |
Other Adjustments | 0.30% | 0.10% | (0.90%) |
Effective Income Tax Rate | (7.00%) | 38.90% | 36.70% |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS Basic) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic [Abstract] | |||||||||||
Net Income | $ 15,894,000 | $ 3,305,000 | $ 4,553,000 | $ 1,540,000 | $ 4,815,000 | $ 4,345,000 | $ 4,468,000 | $ 3,651,000 | $ 25,292,000 | $ 17,279,000 | $ 15,966,000 |
Less: net income allocated to participating securities | (628,000) | (518,000) | (465,000) | ||||||||
Net income allocated to common stock | $ 24,664,000 | $ 16,761,000 | $ 15,501,000 | ||||||||
Weighted average common shares outstanding | 12,528,195 | 12,521,962.4153005 | 12,722,234 | ||||||||
Less: Unvested restricted stock awards considered participating securities | (312,175) | (380,367) | (357,361) | ||||||||
Adjusted weighted average common shares used in computing basic EPS | 12,216,020 | 12,141,595.4153005 | 12,364,873 | ||||||||
Basic earnings per share | $ 1.27 | $ 0.26 | $ 0.36 | $ 0.12 | $ 0.38 | $ 0.35 | $ 0.36 | $ 0.29 | $ 2.02 | $ 1.38 | $ 1.25 |
Earnings Per Common Share (EP76
Earnings Per Common Share (EPS Diluted) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income allocated to common stock | $ 24,664,000 | $ 16,761,000 | $ 15,501,000 | ||||||||
Adjusted weighted average common shares used in computing basic EPS | 12,216,020 | 12,141,595.4153005 | 12,364,873 | ||||||||
Add: Effect of dilutive stock options | 33,603 | 9,102 | 16,679 | ||||||||
Adjusted weighted average common shares used in computing diluted EPS | 12,249,623 | 12,150,697.4153005 | 12,381,552 | ||||||||
Diluted earnings per share | $ 1.27 | $ 0.26 | $ 0.36 | $ 0.12 | $ 0.38 | $ 0.35 | $ 0.36 | $ 0.29 | $ 2.01 | $ 1.38 | $ 1.25 |
Antidilutive securities excluded from computation of earnings per share amount | 101,157 | 37,333 | 5,203 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 30, 2017 | Jul. 29, 2014 | |
Stock Repurchase [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | $ 15,000 | ||||||
Marlin Business Services Corp. [Member] | ||||||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | ||||||||
Total stockholders equity (regulatory) | $ 177,605 | |||||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |||||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | |||||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |||||||
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||||||
New Capital Conservation Buffer | 1.25% | 2.50% | 2.50% | 1.875% | ||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | |||||||
Total Risk Based Capital to Risk Weighted Assets | 19.47% | |||||||
MBB [Member] | ||||||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | ||||||||
Total stockholders equity (regulatory) | $ 145,269 | |||||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | |||||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 5.00% | |||||||
FDIC Agreement Capital Required To Be Well Capitalized To Risk Weighted Assets | 15.00% | |||||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | |||||||
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |||||||
Total Risk Based Capital to Risk Weighted Assets | 16.46% | |||||||
Instrument Stock 2014 Repurchase Plan [Member] | ||||||||
Stock Repurchase [Line Items] | ||||||||
Stock Repurchased During Period, Shares | 58,914 | 0 | 594,760 | |||||
Stock Repurchased During Period, Average Cost Per Share | $ 25.09 | $ 0 | $ 17.09 | |||||
Instrument Equity Compensation Plan [Member] | ||||||||
Stock Repurchase [Line Items] | ||||||||
Stock Repurchased During Period, Shares | 38,139 | 23,409 | 65,143 | |||||
Stock Repurchased During Period, Average Cost Per Share | $ 24.27 | $ 14.73 | $ 17.74 | |||||
Instrument Stock 2017 Repurchase Plan [Member] | ||||||||
Stock Repurchase [Line Items] | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 7,900 | |||||||
Stock Repurchased During Period, Shares | 87,210 | |||||||
Stock Repurchased During Period, Average Cost Per Share | $ 24.05 |
Stockholders's Equity (Dividend
Stockholders's Equity (Dividends) (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends Payable [Line Items] | |||
Cash dividends paid | $ 7,055,000 | $ 6,923,000 | $ 32,249,000 |
2015 Special Cash Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per share | $ 2 | ||
Cash dividends paid | $ 25,500,000 | ||
Cash dividend declared on common stock, date declared | Sep. 14, 2015 | ||
Date that dividend was paid | Oct. 5, 2015 | ||
Cash dividend declared on common stock, date of record | Sep. 24, 2015 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Ratios) (Details) $ in Thousands | Dec. 31, 2017USD ($) | |
Marlin Business Services Corp. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 177,605 | |
Tier One Leverage Capital Required for Capital Adequacy | 41,175 | |
Tier One Leverage Capital Required to be Well Capitalized | 51,468 | |
Common Equity Tier One Risk Based Capital | 177,605 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 43,877 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 63,378 | |
Tier One Risk Based Capital | 177,605 | |
Tier One Risk Based Capital Required for Capital Adequacy | 58,503 | |
Tier One Risk Based Capital Required to be Well Capitalized | 78,003 | |
Total Risk Based Capital | 189,826 | |
Total Risk Based Capital Required for Capital Adequacy | 78,003 | |
Total Risk Based Capital Required to be Well Capitalized | $ 97,504 | |
Tier One Leverage Capital to Average Assets | 17.25% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | |
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 18.22% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 18.22% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |
Total Risk Based Capital to Risk Weighted Assets | 19.47% | |
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |
Total Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |
MBB [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 145,269 | |
Tier One Leverage Capital Required for Capital Adequacy | 49,058 | |
Tier One Leverage Capital Required to be Well Capitalized | 49,058 | |
Common Equity Tier One Risk Based Capital | 145,269 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 62,088 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 62,088 | |
Tier One Risk Based Capital | 145,269 | |
Tier One Risk Based Capital Required for Capital Adequacy | 76,416 | |
Tier One Risk Based Capital Required to be Well Capitalized | 76,416 | |
Total Risk Based Capital | 157,244 | |
Total Risk Based Capital Required for Capital Adequacy | 143,280 | |
Total Risk Based Capital Required to be Well Capitalized | $ 95,520 | |
Tier One Leverage Capital to Average Assets | 14.81% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 5.00% | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | |
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 15.21% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | |
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 15.21% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |
Total Risk Based Capital to Risk Weighted Assets | 16.46% | |
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | |
Total Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | [1] |
[1] | (1) MBB is required to maintain “well-capitalized” status and must also maintain a total risk-based capital ratio greater than 15% pursuant to the FDIC Agreement. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,200,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 472,913 | ||
Number of Shares, Stock Options Granted | 115,883 | 0 | 0 |
Stock-based Compensation Expense | $ 2,800 | $ 1,900 | $ 2,800 |
Stock Options Exercised, Number of Shares | 39,416 | 7,380 | 61,937 |
Stock Options Exercised, Total Intrinsic Value | $ 400 | $ 100 | $ 600 |
Number of Shares, Stock Options Forfeited | 21,122 | 1,666 | 80,728 |
Weighted Average Exercise Price Per Share, Option Forfeitures | $ 24.35 | $ 12.41 | $ 9.64 |
Weighted Average Exercise Price Per Share, Options Granted | 25.75 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 25.36 | $ 15.31 | $ 16.87 |
Tax Benefit from Stock-Based Compensation | $ 400 | ||
Excess tax benefits from stock-based payment arrangements | $ 0 | $ (24) | $ 333 |
Common Stock Closing Price Per Share | $ 22.4 | ||
Stock Options [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Number of Shares, Stock Options Granted | 115,883 | 0 | 0 |
Stock-based Compensation Expense | $ 100 | $ 100 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Incremental Cost at Maximum Performance | $ 100 | ||
Stock-based Awards, Vesting Period in Years | 4 years | ||
Stock Options [Member] | Director [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 1 year | ||
Restricted Stock [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,000,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 369,898 | ||
Stock-based Compensation Expense | $ 2,800 | 1,900 | 2,700 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 3,000 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 4 years | ||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | ||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 1,100 | 2,800 | 3,000 |
Stock-based Compensation Expense Due to Performance Acceleration | 500 | 400 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | $ 500 | ||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 24,023 | ||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable Achievement Threshold | 100.00% | ||
Stock-based Awards Other than Options, Vested in Period, Total Fair Value | $ 3,000 | $ 1,200 | $ 3,400 |
Restricted Stock [Member] | Minimum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 3 years | ||
Restricted Stock [Member] | Minimum [Member] | Director [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 6 months | ||
Restricted Stock [Member] | Maximum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 10 years | ||
Restricted Stock [Member] | Maximum [Member] | Director [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 7 years | ||
Stock Option Exchange [Member] | Minimum [Member] | Director [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Grant Original Contractual Term in Years | 7 years | ||
Stock Option Exchange [Member] | Maximum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Grant Original Contractual Term in Years | 10 years | ||
Employee Stock Purchase Plan 2012 [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 140,000 | ||
Employee Stock Purchase Plan, Maximum Employee Compensation Contribution Percentage | 10.00% | ||
Employee Stock Purchase Plan, Purchase Price Per Share as Percent of Fair Market Value | 95.00% | ||
Employee Stock Purchase Plan, Issuance of Common Stock, Shares | 18,890 | 16,813 | |
Employee Stock Purchase Plan, Issuance of Common Stock, Value | $ 400 | $ 300 | |
Employee Stock Purchase Plan, Number Of Shares Available For Issuance | 51,425 | ||
Performance-Based and Market-Based RSUs [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Compensation Expense | $ 100 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 1,100 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 3 years 8 months | ||
Stock-based Awards, Vesting Period in Years | 4 years | ||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 1,100 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.06 | ||
Performance-Based and Market-Based RSUs [Member] | Minimum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 1 year | ||
Performance-Based and Market-Based RSUs [Member] | Maximum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 3 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | |||
Number of Shares Outstanding, Beginning of Period | 41,640 | 50,686 | 193,351 |
Number of Shares, Stock Options Granted | 115,883 | 0 | 0 |
Number of Shares, Stock Options Exercised | (39,416) | (7,380) | (61,937) |
Number of Shares, Stock Options Forfeited | (21,122) | (1,666) | (80,728) |
Number of Shares, Stock Options Expired | 0 | 0 | 0 |
Number of Shares Outstanding, End of Period | 96,985 | 41,640 | 50,686 |
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ 12.37 | $ 12.09 | $ 10.23 |
Weighted Average Exercise Price Per Share, Options Granted | 25.75 | 0 | 0 |
Weighted Average Exercise Price Per Share, Options Exercised | 12.37 | 10.44 | 9.48 |
Weighted Average Exercise Price Per Share, Option Forfeitures | 24.35 | 12.41 | 9.64 |
Weighted Average Exercise Price Per Share, Options Expired | 0 | 0 | 0 |
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ 25.75 | $ 12.37 | $ 12.09 |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 1.82% | ||
Expected option life | 4 years 6 months | ||
Expected volatility | 34.62% | ||
Dividend yield | 2.17% |
Stock-Based Compensation (Sum82
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Shares | 96,985 | 41,640 | 50,686 | 193,351 |
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 2 months | |||
Options Outstanding, Weighted Average Exercise Price | $ 25.75 | $ 12.37 | $ 12.09 | $ 10.23 |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |||
Options Exercisable, Number of Shares | 0 | |||
Options Exercisable, Weighted Average Exercise Price | $ 0 | |||
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |||
$12.08 - 12.41 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 12.08 | |||
Options Outstanding and Exercisable, Upper Price in Range Category | $ 12.41 | |||
Options Outstanding, Number of Shares | 0 | |||
Options Outstanding, Weighted Average Exercise Price | $ 0 | |||
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |||
Options Exercisable, Number of Shares | 0 | |||
Options Exercisable, Weighted Average Exercise Price | $ 0 | |||
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |||
Price Range E [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 2 months |
Stock-Based Compensation (Sum83
Stock-Based Compensation (Summary of Non-Vested Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |||
Shares Outstanding, Beginning of Period | 396,518 | 313,236 | 346,036 |
Shares, Granted | 44,758 | 183,506 | 179,162 |
Shares, Vested | (122,202) | (77,149) | (188,287) |
Shares, Forfeited | (41,457) | (23,075) | (23,675) |
Shares Outstanding, End of Period | 277,617 | 396,518 | 313,236 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 16.07 | $ 16.65 | $ 15.99 |
Weighted Average Grant-Date Fair Value, Granted | 25.36 | 15.31 | 16.87 |
Weighted Average Grant-Date Fair Value, Vested | 16.19 | 16.11 | 15.41 |
Weighted Average Grant-Date Fair Value, Forfeited | 16.07 | 17.73 | 18.53 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ 17.51 | $ 16.07 | $ 16.65 |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 1.82% | ||
Expected volatility | 34.62% | ||
Dividend yield | 2.17% | ||
Performance-Based and Market-Based RSUs [Member] | |||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |||
Shares Outstanding, Beginning of Period | 120,000 | ||
Shares, Granted | 72,180 | ||
Shares, Forfeited | (33,627,000) | ||
Shares Outstanding, End of Period | 158,553 | 120,000 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 9.47 | ||
Weighted Average Grant-Date Fair Value, Granted | 24.06 | ||
Weighted Average Grant-Date Fair Value, Forfeited | 14.13 | ||
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | 15.13 | $ 9.47 | |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Grant date stock price | $ 25.75 | ||
Risk-free interest rate | 1.72% | ||
Expected volatility | 33.42% | ||
Dividend yield | 0.00% | ||
Service-Based RSUs [Member] | |||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |||
Shares Outstanding, Beginning of Period | 0 | ||
Shares, Granted | 30,653,000 | ||
Shares, Forfeited | (4,813,000) | ||
Shares Outstanding, End of Period | 25,840,000 | 0 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 0 | ||
Weighted Average Grant-Date Fair Value, Granted | 25.65 | ||
Weighted Average Grant-Date Fair Value, Forfeited | 25.75 | ||
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ 25.63 | $ 0 |
Employee 401(k) Plan (Narrative
Employee 401(k) Plan (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee 401(k) Plan [Abstract] | |||
Description of 401(k) Plan | The Company adopted a 401(k) plan (the “401(k) Plan”) which originally became effective as of January 1, 1997. The Company’s employees are entitled to participate in the 401(k) Plan, which provides savings and investment opportunities. Employees can contribute up to the maximum annual amount allowable per Internal Revenue Service guidelines. Effective July 1, 2007, the 401(k) Plan provides for Company contributions equal to 25% of an employee’s contribution percentage up to a maximum employee contribution of 6%. | ||
Company Contributions to Employee 401(k) Plan | $ 0.3 | $ 0.2 | $ 0.2 |
Maximum Employee Contribution for Company Matching | 25.00% | ||
Employer Contribution per Dollar of Employee Contribution | 6.00% |
Related Party Transactions (Nar
Related Party Transactions (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 0 | $ 0.4 |
Parent Company (Balance Sheet)
Parent Company (Balance Sheet) (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Total assets | $ 1,040,160,000 | $ 1,013,017,000 | $ 985,082,000 | $ 944,492,000 | $ 892,158,000 | $ 869,001,000 | $ 841,791,000 | $ 801,106,000 | ||
Total liabilities | 860,511,000 | 729,869,000 | ||||||||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,449,458 and 12,572,114 shares issued and outstanding at December 31, 2017 and 2016, respectively | 124,000 | 126,000 | ||||||||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 | ||||||||
Additional paid-in capital | 82,588,000 | 83,505,000 | ||||||||
Stock subscription receivable | (2,000) | (2,000) | ||||||||
Accumulated other comprehensive income | (96,000) | (138,000) | ||||||||
Retained earnings | 97,035,000 | 78,798,000 | ||||||||
Total stockholders' equity | 179,649,000 | 162,289,000 | $ 150,138,000 | $ 173,964,000 | ||||||
Total liabilities and stockholders' equity | 1,040,160,000 | 892,158,000 | ||||||||
Marlin Business Services Corp. [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Investments in bank subsidiary | 145,249,000 | 130,636,000 | ||||||||
Investments in non bank subsidiaries | 34,400,000 | 31,653,000 | ||||||||
Total assets | 179,649,000 | 162,289,000 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,449,458 and 12,572,114 shares issued and outstanding at December 31, 2017 and 2016, respectively | 124,000 | 126,000 | ||||||||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 | ||||||||
Additional paid-in capital | 82,588,000 | 83,505,000 | ||||||||
Stock subscription receivable | (2,000) | (2,000) | ||||||||
Accumulated other comprehensive income | (96,000) | (138,000) | ||||||||
Retained earnings | 97,035,000 | 78,798,000 | ||||||||
Total stockholders' equity | 179,649,000 | 162,289,000 | ||||||||
Total liabilities and stockholders' equity | $ 179,649,000 | $ 162,289,000 |
Parent Company (Income Statemen
Parent Company (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Expenses [Abstract[ | |||||||||||
Income tax expense | $ (6,926) | $ 2,049 | $ 2,732 | $ 489 | $ 2,914 | $ 3,028 | $ 2,752 | $ 2,325 | $ (1,656) | $ 11,019 | $ 9,262 |
Comprehensive Income | |||||||||||
Increase (decrease) in fair value of securities available for sale | 68 | (15) | (181) | ||||||||
Tax effect | (26) | 6 | 69 | ||||||||
Total other comprehensive income | 42 | (9) | (112) | ||||||||
Comprehensive Income | 25,334 | 17,270 | 15,854 | ||||||||
Marlin Business Services Corp. [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Total revenue | 17,556 | 14,868 | 56,569 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Total expense | 0 | 0 | 0 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 17,556 | 14,868 | 56,569 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income of parent | 25,292 | 17,279 | 15,966 | ||||||||
Comprehensive Income | |||||||||||
Increase (decrease) in fair value of securities available for sale | 68 | (15) | (181) | ||||||||
Tax effect | (26) | 6 | 69 | ||||||||
Total other comprehensive income | 42 | (9) | (112) | ||||||||
Comprehensive Income | 25,334 | 17,270 | 15,854 | ||||||||
Marlin Business Services Corp. [Member] | Bank Subsidiary [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Dividend Income Operating | 6,000 | 7,600 | 13,000 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Equity in undistributed net (income) losses of subsidiaries | 14,571 | 7,247 | 7,532 | ||||||||
Marlin Business Services Corp. [Member] | Non Bank Subsidiaries [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Dividend Income Operating | 11,556 | 7,268 | 43,569 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Equity in undistributed net (income) losses of subsidiaries | $ (6,835) | $ (4,836) | $ (48,135) |
Parent Company (Statement of Ca
Parent Company (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by (used in) operating activities | $ 52,871 | $ 37,462 | $ 35,136 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | (148,825) | (138,311) | (81,068) |
Cash flows from financing activities: | |||
Issuances of common stock | 356 | 259 | 234 |
Repurchases of common stock | (4,501) | (345) | (11,320) |
Dividends paid | (6,958) | (6,907) | (32,249) |
Proceeds from Stock Options Exercised | 488 | 77 | 586 |
Net cash provided by (used in) financing activities | 101,343 | 102,477 | (4,595) |
Marlin Business Services Corp. [Member] | |||
Cash flows from operating activities: | |||
Net income of parent | 25,292 | 17,279 | 15,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net (income) losses of subsidiaries | (19,292) | (9,679) | (2,966) |
Net cash provided by (used in) operating activities | 6,000 | 7,600 | 13,000 |
Cash flows from investing activities: | |||
Capital returned from nonbank subsidiaries | 11,556 | 7,268 | 43,569 |
Capital contributed to subsidiaries | (6,941) | (7,952) | (13,820) |
Net cash provided by (used in) investing activities | 4,615 | (684) | 29,749 |
Cash flows from financing activities: | |||
Issuances of common stock | 356 | 259 | 234 |
Repurchases of common stock | (4,501) | (345) | (11,320) |
Dividends paid | (6,958) | (6,907) | (32,249) |
Proceeds from Stock Options Exercised | 488 | 77 | 586 |
Net cash provided by (used in) financing activities | $ (10,615) | $ (6,916) | $ (42,749) |
Subsequent Events (Narratives)
Subsequent Events (Narratives) (Details) | Feb. 01, 2018USD ($)Number$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | ||||
Cash dividends declared | $ 7,055,000 | $ 6,923,000 | $ 32,249,000 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share | $ / shares | $ 0.14 | |||
Cash dividends declared | $ 1,700,000 | |||
Cash dividend declared on common stock, date declared | Feb. 1, 2018 | |||
Cash dividend declared on common stock, payable date | Feb. 22, 2018 | |||
Cash dividend declared on common stock, date of record | Feb. 12, 2018 | |||
Number of consecutive cash dividends declared on common stock | Number | 26 |
Selected Quaterly Finacial Data
Selected Quaterly Finacial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Interest income | $ 22,994 | $ 22,363 | $ 21,567 | $ 20,531 | $ 20,188 | $ 18,803 | $ 18,187 | $ 17,531 | $ 87,455 | $ 74,709 | $ 66,662 |
Fee income | 3,809 | 3,780 | 3,745 | 3,530 | 3,796 | 3,944 | 3,969 | 3,834 | 14,864 | 15,543 | 15,291 |
Interest and fee income | 26,803 | 26,143 | 25,312 | 24,061 | 23,984 | 22,747 | 22,156 | 21,365 | 102,319 | 90,252 | 81,953 |
Interest expense | 3,228 | 3,000 | 2,612 | 2,340 | 2,174 | 2,055 | 1,857 | 1,692 | 11,180 | 7,778 | 5,696 |
Provision for credit losses | 4,516 | 5,680 | 4,314 | 3,884 | 3,534 | 3,137 | 2,668 | 3,075 | 18,394 | 12,414 | 9,995 |
Income tax expense | (6,926) | 2,049 | 2,732 | 489 | 2,914 | 3,028 | 2,752 | 2,325 | (1,656) | 11,019 | 9,262 |
Net income | $ 15,894 | $ 3,305 | $ 4,553 | $ 1,540 | $ 4,815 | $ 4,345 | $ 4,468 | $ 3,651 | $ 25,292 | $ 17,279 | $ 15,966 |
Basic earnings per share | $ 1.27 | $ 0.26 | $ 0.36 | $ 0.12 | $ 0.38 | $ 0.35 | $ 0.36 | $ 0.29 | $ 2.02 | $ 1.38 | $ 1.25 |
Diluted earnings per share | 1.27 | 0.26 | 0.36 | 0.12 | 0.38 | 0.35 | 0.36 | 0.29 | 2.01 | 1.38 | 1.25 |
Cash dividends declared and paid per share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.56 | $ 0.56 | $ 2.53 |
Net investment in leases and loans | $ 914,420 | $ 886,430 | $ 862,703 | $ 828,840 | $ 796,717 | $ 759,422 | $ 703,750 | $ 702,126 | $ 914,420 | $ 796,717 | |
Total assets | $ 1,040,160 | $ 1,013,017 | $ 985,082 | $ 944,492 | $ 892,158 | $ 869,001 | $ 841,791 | $ 801,106 | $ 1,040,160 | $ 892,158 |