Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Mar. 31, 2020 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current fiscal year end date | --12-31 | |
Address Line 1 | 300 Fellowship Road | |
Name of the City or Town | Mount Laurel | |
Entity Address, State or Province | NJ | |
Postal or zip code | 08054 | |
Entity central index key | 0001260968 | |
Entity current reporting status | Yes | |
Entity filer category | Accelerated Filer | |
Entity registrant name | MARLIN BUSINESS SERVICES CORP. | |
Entity common stock shares outstanding | 11,884,174 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 5,261,000 | $ 4,701,000 |
Interest-earning deposits with banks | 205,809,000 | 118,395,000 |
Total cash and cash equivalents | 211,070,000 | 123,096,000 |
Time deposits with banks | 13,664,000 | 12,927,000 |
Restricted interest-earning deposits (includes $6.5 million and $6.9 million at March 31, 2020 and December 31, 2019, respectively related to consolidated VIEs) | 6,474,000 | 6,931,000 |
Investment securities (amortized cost of $10.6 million and $11.1 million at March 31, 2020 and December 31, 2019, respectively | 10,480,000 | 11,076,000 |
Net investment in leases and loans [abstract] | ||
Leases | 407,148,000 | 426,608,000 |
Loans | 614,988,000 | 601,607,000 |
Net investment in leases and loans, excluding allowance for credit losses (includes $62.0 million and $76.1 million at March 31, 2020 and December 31, 2019, respectively, related to consolidated VIEs) | 1,022,136,000 | 1,028,215,000 |
Allowance for Credit Losses | (52,060,000) | (21,695,000) |
Total net investment in leases and loans | 970,076,000 | 1,006,520,000 |
Intangible assets | 7,261,000 | 7,461,000 |
Goodwill | 0 | 6,735,000 |
Operating lease right-of-use assets | 8,618,000 | 8,863,000 |
Property and equipment, net | 8,138,000 | 7,888,000 |
Property tax receivable, net of allowance | 10,291,000 | 5,493,000 |
Other assets | 17,465,000 | 10,453,000 |
Total assets | 1,263,537,000 | 1,207,443,000 |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Deposits | 941,996,000 | 839,132,000 |
Operating lease liabilities | 9,487,000 | 9,730,000 |
Other liabilities: | ||
Sales and property taxes payable | 7,267,000 | 2,678,000 |
Accounts payable and accrued expenses | 28,427,000 | 34,028,000 |
Net deferred income tax liability | 25,677,000 | 30,828,000 |
Total liabilities | 1,075,047,000 | 992,487,000 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common Stock, $0.01 par value; 75,000,000 shares authorized; 11,884,473 and 12,113,585 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 119,000 | 121,000 |
Additional paid-in capital | 75,647,000 | 79,665,000 |
Accumulated other comprehensive income (loss) | 20,000 | 58,000 |
Retained earnings | 112,704,000 | 135,112,000 |
Total stockholders equity | 188,490,000 | 214,956,000 |
Total liabilities and stockholders equity | 1,263,537,000 | 1,207,443,000 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Restricted interest-earning deposits (includes $6.5 million and $6.9 million at March 31, 2020 and December 31, 2019, respectively related to consolidated VIEs) | 6,500,000 | 6,900,000 |
Net investment in leases and loans [abstract] | ||
Net investment in leases and loans, excluding allowance for credit losses (includes $62.0 million and $76.1 million at March 31, 2020 and December 31, 2019, respectively, related to consolidated VIEs) | 62,000,000 | 76,100,000 |
Long-term borrowings related to consolidated VIEs | $ 62,193,000 | $ 76,091,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock - par or stated value | $ 0.01 | $ 0.01 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares outstanding | 11,884,473 | 12,113,585 |
Common stock shares issued | 11,884,473 | 12,113,585 |
Variable Interest Entity [Line Items] | ||
Restricted interest-earning deposits with banks | $ 6,474 | $ 6,931 |
Amortized cost | 6,738 | |
Net investment in leases and loans, excluding allowance for credit losses | 1,022,136 | 1,028,215 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted interest-earning deposits with banks | 6,500 | 6,900 |
Amortized cost | 10,600 | 11,100 |
Net investment in leases and loans, excluding allowance for credit losses | $ 62,000 | $ 76,100 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Operations (Unaudited) | ||
Interest income | $ 26,465 | $ 25,883 |
Fee income | 2,766 | 4,042 |
Interest and fee income | 29,231 | 29,925 |
Interest expense | 5,680 | 5,962 |
Net interest and fee income | 23,551 | 23,963 |
Provision for credit losses | 25,150 | 5,363 |
Net interest and fee income after provision for credit losses | (1,599) | 18,600 |
Non-interest income: | ||
Gain on sale of leases and loans sold | 2,282 | 3,612 |
Insurance premiums written and earned | 2,282 | 2,132 |
Other income | 7,639 | 7,204 |
Non-interest income | 12,203 | 12,948 |
Non-interest expense: | ||
Salaries and benefits | 9,519 | 11,451 |
General and administrative | 13,605 | 13,354 |
Goodwill impairment | 6,735 | 0 |
Non-interest expense | 29,859 | 24,805 |
(Loss) income before income taxes | (19,255) | 6,743 |
Income tax (benefit) expense | (7,434) | 1,602 |
Net (loss) income | $ (11,821) | $ 5,141 |
Basic (loss) earnings per share | $ (1) | $ 0.42 |
Diluted (loss) earnings per share | $ (1) | $ 0.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Comprehensive Income | ||
Net (loss) income | $ (11,821) | $ 5,141 |
Other Comprehensive Income (Loss) | ||
(Decrease) increase in fair value of debt securities available for sale | (51) | 54 |
Tax effect | 13 | (14) |
Total other comprehensive income (loss) | (38) | 40 |
Comprehensive Income | $ (11,859) | $ 5,181 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Revision of Prior Period, Accounting Standards Update, Adjustment [Member} | Common Stock [Member] | Common Stock [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member} | Additional Paid In Capital [Member] | Additional Paid In Capital [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member} | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Retained Earnings [Member]Revision of Prior Period, Accounting Standards Update, Adjustment [Member} | |
Balance at Dec. 31, 2018 | $ 198,511 | $ 124 | $ 83,496 | $ (44) | $ 114,935 | |||||
Issuance of common stock | 0 | 0 | 0 | 0 | 0 | |||||
Repurchase of common stock | (1,145) | (1) | (1,144) | 0 | 0 | |||||
Exercise of stock options | 0 | 0 | 0 | 0 | 0 | |||||
Stock-based compensation recognized | 861 | 861 | ||||||||
Net change in unrealized gain/loss on securities available for sale, net of tax | 40 | 40 | ||||||||
Net (loss) income | 5,141 | 5,141 | ||||||||
Impact of adopting of new accounting standards | 0 | 0 | 0 | 0 | 0 | |||||
Cash dividends paid ($0.14 per share) | (1,758) | 0 | 0 | 0 | (1,758) | |||||
Balance at Mar. 31, 2019 | $ 201,650 | $ 123 | 83,213 | (4) | 118,318 | |||||
Balance, Shares at Dec. 31, 2018 | 12,367,724 | 12,367,724 | ||||||||
Issuance of common stock, shares | 0 | 0 | ||||||||
Repurchase of common stock, shares | (48,857) | (48,857) | ||||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 30,209 | 30,209 | ||||||||
Exercise of stock options, shares | 0 | 0 | ||||||||
Balance, Shares at Mar. 31, 2019 | 12,349,076 | 12,349,076 | ||||||||
Balance at Dec. 31, 2019 | $ 214,956 | $ 121 | 79,665 | 58 | 135,112 | |||||
Issuance of common stock | 0 | 0 | 0 | 0 | 0 | |||||
Repurchase of common stock | (4,538) | (3) | (4,535) | 0 | 0 | |||||
Stock issued in connection with restricted stock and RSUs, net of forfeitures | 0 | 1 | (1) | 0 | 0 | |||||
Stock-based compensation recognized | 518 | 0 | 518 | 0 | 0 | |||||
Net change in unrealized gain/loss on securities available for sale, net of tax | (38) | 0 | 0 | (38) | 0 | |||||
Net (loss) income | (11,821) | 0 | 0 | 0 | (11,821) | |||||
Impact of adopting of new accounting standards | [1] | $ (8,877) | $ 0 | $ 0 | $ (8,877) | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||
Cash dividends paid ($0.14 per share) | (1,710) | 0 | 0 | 0 | (1,710) | |||||
Balance at Mar. 31, 2020 | $ 188,490 | $ 119 | $ 75,647 | $ 20 | $ 112,704 | |||||
Balance, Shares at Dec. 31, 2019 | 12,113,585 | 12,113,585 | ||||||||
Issuance of common stock, shares | 0 | 0 | ||||||||
Repurchase of common stock, shares | (285,593) | 285,593 | ||||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 56,481 | 56,481 | ||||||||
Exercise of stock options, shares | 0 | |||||||||
Balance, Shares at Mar. 31, 2020 | 11,884,473 | 11,884,473 | ||||||||
[1] | (1) Represents the impact of Accounting Standards Update ("ASU") 2016-13 and related ASUs collectively referred to as "CECL". See Note 2. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statements Of Stockholders Equity [Abstract] | ||
Cash dividends declared and paid per share | $ 0.14 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (11,821) | $ 5,141 |
Adjustments to reconcile Net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,057 | 1,209 |
Stock-based compensation | 518 | 861 |
Goodwill impairment | 6,735 | 0 |
Change in fair value of equity securities | (58) | (43) |
Provision for credit losses | 25,150 | 5,363 |
Change in net deferred income tax liability | (2,107) | 1,364 |
Amortization of deferred initial direct costs and fees | 3,413 | 3,563 |
Loss on equipment disposed | 0 | 389 |
Gain on leases sold | (2,282) | (3,612) |
Leases originated for sale | (3,693) | (10,675) |
Proceeds from sale of leases originated for sale | 3,874 | 11,052 |
Noncash lease expense | 324 | 275 |
Effect of changes in other operating items: | ||
Other assets | (12,002) | (4,982) |
Other liabilities | 1,083 | 2,559 |
Net cash provided by operating activities | 10,191 | 12,464 |
Cash flows from investing activities: | ||
Net change in time deposits with banks | (737) | (1,580) |
Purchases of equipment for lease contracts and funds used to originate loans | (156,145) | (197,168) |
Principal collections on leases and loans | 129,810 | 122,871 |
Proceeds from sale of leases originated for investment | 21,337 | 45,428 |
Security deposits collected, net of refunds | (78) | (76) |
Proceeds from the sale of equipment | 840 | 696 |
Acquisitions of property and equipment | (796) | (376) |
Principle payments received on securities available for sale | 594 | 372 |
Net cash (used in) investing activities | (5,175) | (29,833) |
Cash flows from financing activities: | ||
Net change in deposits | 102,864 | 84,391 |
Term securitization repayments | (14,008) | (21,104) |
Business combinations earn-out consideration payments | (132) | (121) |
Repurchases of common stock | (4,538) | (1,145) |
Dividends paid | (1,685) | (1,727) |
Net cash provided by financing activities | 82,501 | 60,294 |
Net increase in total cash, cash equivalents and restricted cash | 87,517 | 42,925 |
Total cash, cash equivalents and restricted cash, beginning of period | 130,027 | 111,201 |
Total cash, cash equivalents and restricted cash, end of period | 217,544 | 154,126 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest on deposits and borrowings | 5,420 | 5,204 |
Net cash paid (refunds received) for income taxes | 1,797 | 1,371 |
Leases transferred into held for sale from investment | 19,235 | 42,193 |
Supplemental disclosures of non cash investing activities: | ||
Business combinations assets acquired | 0 | 146 |
Purchase of equipment for lease contracts and loans originated | 3,773 | 6,979 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets | ||
Cash and Cash Equivalents | 211,070 | 140,952 |
Restricted interest-earning deposits | 6,474 | 13,174 |
Total cash, cash equivalents and restricted cash, end of period | $ 217,544 | $ 154,126 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2020 | |
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 businesses. The products and services we provide to our customers include loans and leases for the acquisition of commercial equipment (including Commercial Vehicle Group (“CVG”) assets which now incorporates Transportation Finance Group (“TFG”)) and worki ng capital loans. The Company was incorporated in the Commonwealth 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 financed 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 September 19, 2018, the Company completed the acquisition of Fleet Financing Resources (“FFR”) , a leading provider of equipment finance credit products specializing in the leasing and financing of both new and used commercial vehicles, with an emphasis on livery equipment and other types of commercial vehicles us ed by small businesses. References to the “Company,” “Marlin,” “Registrant,” “we,” “us ” and “our” herein refer to Marlin Business Services Corp. and its wholly-owned subsidiaries, unless the context otherwise requires. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – Summary of Significant Accounting Policies Basis of financial statement presentation. The unaudited 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 simil ar economic characteristics, share the same leasing and loan portfolio and have a single consolidated product offering platform . All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated fina ncial statements present the Company’s financial position at March 31, 2020 and the results of operations for the three- month periods ended March 31, 2020 and 2019 , and cash flows for the three -month periods ended March 31, 2020 and 2019 . In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations for the i nterim periods presented. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K for the year ended December 31, 201 9 , filed with the Securities and Exchange Commission (“SEC”) on March 13 , 20 20 . The consolidated results and statements of cash flows for the se interim financial statements are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. Use of Estimates. These unaudited consolidated financial statement s require management to make estimates and assumptions that aff ect 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, estimated losses from insurance program, and income ta xes. Actual results could differ from those estimates. Provision for income taxes. Income tax benefit of $ 7.4 million was recorded for the three-month period ended March 31, 2020 , compared to expense of $1.6 million for the t hree-month period ended March 31, 2019 . For the three-month period ended March 31, 2020 , the income tax benefit includes a $ 3.2 million discrete benefit, related to remeasuring our federal net operating losses, driven by certain provisions in the CARES Act. Our statutory tax rate, which is a combination of federal and state income tax rates, was approximately 23.9 % for both periods. However, our effective tax rate was 38.6% for the three-month period ended March 31, 2020 , driven by the recognition of t he discrete benefit. Significant Accounting Policies. There have been no sig nificant changes to our Significant Accounting P olicies as described in our 2019 Annual Report on Form 10-K other than the adoption of ASU 2016-13 as described below . Recently Adopted Accounting Standards . Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Ins truments , which changes the methodology for evaluating impairment of most financial instruments. This guidance was subsequently amended by ASU 2018-19, Codification Improvements, ASU 2019-04, Codification Improvements , ASU 2019-05, Targeted Transition Relief, ASU 2019-10, Effective Dates, and ASU 2019-11, Codification Improvements . These ASUs are refe rred to collectively as “CECL”. CECL replaces the probable, incurred loss model with a measurement of expected credit losses for the contractual term of the Company’s current portfolio of loans and leases. After the adoption of CECL, a n allowance, or estimate of credit losses, will be recognized immediately upon the origination of a loan or lease, and will be adjusted in each subseque nt reporting period. This estimate of credit losses takes into consideration all cashflows the Company expects to receive or derive from the pools of contracts, including recoveries after charge-off, amounts related to initial direct cost and origination costs net of fees deferred, accrued interest receivable and certain future cashflows from residual assets. The Company had previously recognized residual income within Fee Income in its Consolidated Statement s of Operations; the adoption of CECL results in such residual income being captured as a component of the activity of the allowance. The Company’s policy for charging off contracts against the allowance, and non-accrual policy are not impacted by the adoption of CECL. The provision for credit losses recognized in the Consolidated S tatement s of Operations under CECL will be primarily driven by originations, offset by the reversal of the allowance for any contracts sold, plus any amounts of realized cashflows, such as charge - offs, above or below our modeled estimates, plus adjustments for changes in estimate each subsequent reporting period. Estimating an allowance under CECL requires the Company to develop and maintain a consistent systematic methodology to measure the estimated credit losses inherent in its current portfolio, over the entire life of the contracts. The Company assesses the appropriate collective, or pool, basis to use to aggregate its portfolio based on the existence of similar risk characteristics and determined that i ts measurement begins by separately considering segments of financing receivables, which is similar to how it has historically analyzed its allowance for credit losses: (i) equipment finance lease and loan; (ii) working capital loans; (iii) commercial vehi cles “CVG”; and (iv) Community Reinvestment Act. However, these classes of receivables are further disaggregated into pools of loans based on risk characteristics that may include: lease or loan type, origination channel, and internal credit score (which is a measurement that combines many risk characteristics, including loan size, external credit scores, existence of a guarantee, and various characteristics of the borrower’s business). As part of our analysis of expected credit losses, we may analyze c ontracts on an individual basis, or create additional pools of contracts, in situations where such loans exhibit unique risk characteristics and are no longer expected to experience similar losses to the rest of their pool. As part of its estimate of ex pected credit losses, specific to each measurement date, management considers relevant qualitative and quantitative factors to assess whether the historical loss experience being referenced should be adjusted to better reflect the risk characteristics of t he current portfolio and the expected future loss experience for the life of these contracts. This assessment incorporates all available information relevant to considering the collectability of its current portfolio, including considering economic and bu siness conditions, default trends, changes in its portfolio composition, changes in its lending policies and practices, among other internal and external factors. The Company adopted the guidance in these ASUs, effective January 1, 2020, applying changes resulting from the application of the new standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The adopt ion of this standard resulted in the following adjustment to the Company’s Consolidated Balance Sheets: Balance as of Balance as of December 31, Adoption January 1, 2019 Impact 2020 (Dollars in thousands) Assets: Net investment in leases and loans $ 1,028,215 $ — $ 1,028,215 Allowance for credit losses (21,695) (11,908) (33,603) Total net investment in leases and loans 1,006,520 994,612 Liabilities: Net deferred income tax liability 30,828 (3,031) 27,797 Stockholders' Equity: Retained Earnings 135,112 (8,877) 126,235 See Note 6 – Allowance for Credit Losses , for further discussion of the January 1, 2020 measurement of allowance under CECL, as well as discussion of the Company’s new Accounting Policy governing its Allowance. See Note 13 – Stockholders’ Equity , for discussion of the Company’s election to de lay for two-years the effect of CECL on regulatory capital, followed by a three-year phase-in for a five-year total transition. In addition, as a result of adoption this standard, future measurements of the impairment of our investment securities will i ncorporate the guidance in these ASUs, including analyzing any decline in fair value between credit quality-driven factors versus other factors. There was no impact as of the adoption date to our investment securities. |
Non-Interest Income
Non-Interest Income | 3 Months Ended |
Mar. 31, 2020 | |
Noninterest Income [Abstract] | |
Noninterest Income [Text Block] | NOTE 3 – Non-Interest Income The following table summarizes non-interest income for the periods presented: Three Months Ended March 31, (dollars in thousands) 2020 2019 Insurance premiums written and earned $ 2,282 $ 2,132 Gain on sale of leases and loans 2,282 3,612 Other income: Property tax income 5,504 5,643 Servicing income 566 287 Net gain (loss) recognized on equity securities 58 43 Non-interest income within the scope of other GAAP topics 10,692 11,717 Other income: Insurance policy fees 918 668 Property tax administrative fees on leases 234 268 ACH payment fees 72 86 Referral fees 94 155 Other 193 54 Non-interest income from contracts with customers 1,511 1,231 Total non-interest income $ 12,203 $ 12,948 |
Investments securities
Investments securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment securities [Abstract] | |
Investment securities [Text Block] | NOTE 4 - Investment Securities The Company has the following investment securities as of the periods presented : March 31, December 31, 2020 2019 (Dollars in thousands) Equity Securities Mutual fund $ 3,692 $ 3,615 Debt Securities, Available for Sale: Asset-backed securities ("ABS") 4,135 4,332 Municipal securities 2,653 3,129 Total investment securities $ 10,480 $ 11,076 The following schedule summarizes changes in fair value of e quity securities and the portion of unrealized gains and losses for each period presented : Three months ended (Dollars in thousands) March 31, 2020 March 31, 2019 Net gains and (losses) recognized during the period on equity securities $ 58 $ 43 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — — Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 58 $ 43 Available for Sale The following schedule is a summary of available for sale investments for the periods presented: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) ABS $ 4,074 $ 61 $ — $ 4,135 Municipal securities 2,664 14 (25) 2,653 Total Debt Securities, Available for Sale $ 6,738 $ 75 $ (25) $ 6,788 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) ABS $ 4,302 $ 33 $ (3) $ 4,332 Municipal securities 3,058 71 — 3,129 Total Debt Securities, Available for Sale $ 7,360 $ 104 $ (3) $ 7,461 The Company evaluates its available for sale securities in an unrealized loss position for other than temporary impairment on at least a quarterly basis. The company did not recognize any other than temporary impairment to earnings for each of the periods ended March 31, 2020 and March 31, 2019 . The following tables present the aggregate amount of unrealized losses on available for sale securities in the Company’s investment securities classified according to the amount of time those securities have been in a continuous loss position as of March 31, 2019 and December 31, 2019 : March 31, 2020 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) Municipal securities $ (25) $ 1,834 $ — $ — $ (25) $ 1,834 Total available for sale investment securities $ (25) $ 1,834 $ — $ — $ (25) $ 1,834 December 31, 2019 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) ABS $ — $ — $ (3) $ 430 $ (3) $ 430 Total available for sale investment securities $ — $ — $ (3) $ 430 $ (3) $ 430 The following table presents the amortized cost, fair value, and weighted average yield of available for sale investments at March 31, 2020 , based on estimated average life. Receipt of cash flows may differ from those estimated maturities because borrowers may have the right to call or pre pay obligations with or without penalties: Distribution of Maturities 1 Year Over 1 to Over 5 to Over 10 or Less 5 Years 10 Years Years Total (Dollars in thousands) Amortized Cost: ABS $ — $ 2,427 $ 1,647 $ — $ 4,074 Municipal securities 15 34 756 1,859 2,664 Total available for sale investments $ 15 $ 2,461 $ 2,403 $ 1,859 $ 6,738 Estimated fair value $ 15 $ 2,501 $ 2,413 $ 1,859 $ 6,788 Weighted-average yield, GAAP basis 4.75% 2.02% 1.81% 2.58% 2.42% |
Net Investment in Leases and Lo
Net Investment in Leases and Loans | 3 Months Ended |
Mar. 31, 2020 | |
Net Investment in Leases and Loans [Abstract] | |
Net Investment in Leases and Loans | NOTE 5 – Net Investment in Leases and Loans Net investment in leases and loans consists of the following: March 31, 2020 December 31, 2019 (Dollars in thousands) Minimum lease payments receivable $ 434,841 $ 457,602 Estimated residual value of equipment 29,464 29,342 Unearned lease income, net of initial direct costs and fees deferred (56,645) (59,746) Security deposits (512) (590) Total leases 407,148 426,608 Commercial loans, net of origination costs and fees deferred Working Capital Loans 59,012 60,942 CRA (1) 1,410 1,398 Equipment loans (2) 481,000 464,655 CVG 73,566 74,612 Total commercial loans 614,988 601,607 Net investment in leases and loans, excluding allowance 1,022,136 1,028,215 Allowance for credit losses (52,060) (21,695) $ 970,076 $ 1,006,520 ________________________ (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) Equipment loans are comprised of Equipment Finance Agreements, Installment Purchase Agreements and other loans. At March 31, 2020 , $ 62.0 million in net investment in leases were pledged as collateral for the Company’s outstanding asset-backed securitization balance and $ 55.1 million in net investment in leases were pledged as co llateral for the secured borrowing capacity at the Federal Reserve Discount Window. The amount of deferred i nitial direct costs and origination costs net of fees deferred were $ 19.5 million and $ 20.5 million as of March 31, 2020 and December 3 1, 2019 , respectively. Initial direct costs are netted in unearned income and are amortized to income using the effective interest method. ASU 2016-02 limited the types of costs that qualify for deferral as initial direct costs for leases, which r educed the deferral of unit lease costs and resulted in an increase in current period expense. Origination costs are netted in commercial loans and are amortized to income using the effective interest method. At March 31, 2020 and December 31, 2019 , $23.5 million and $23.4 million, respectively, of the estimated residual value of equipment retained on our Consolidated Balance Sheets was related to copiers. Maturities of lease receivable s under lease contracts and the amortization o f unearned lease income, including initial direct costs and fees deferred, were as follows as of March 31, 2020 : Minimum Lease Payments Net Income Receivable (1) Amortization (2) (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 132,867 $ 22,664 2021 137,907 18,737 2022 90,158 9,728 2023 49,519 4,107 2024 20,660 1,140 Thereafter 3,730 269 $ 434,841 $ 56,645 ________________________ (1) Represents the undiscounted cash flows of the lease payments receivable. (2) Represents the difference between the undiscounted cash flows and the discounted cash flows Portfolio Sales The Company originates certain lease and loans for sale to third parties, based on their underwriting criteria and specifications. In addition, the Company may periodically enter into agreements to sell certain leases and loans that were originated for investment to third parties. For agreements that qualify as a sale where the Company has continuing involvement through servicing, the Company recognizes a servicing liability at its initial fair value, and then amortizes the liabili ty over the expected servicing period based on the effective yield method, within Other income in the Consolidated Statements of Operations. The Company’s sale agreements typically do not contain a stated servicing fee, so the initial value recognized as a servicing liability is a reduction of the proceeds received and is based on an estimate of the fair value attributable to that obligation. The Company’s servicing liability is $ 2. 3 million and $ 2.5 million as of March 31, 2020 and December 31, 2019, resp ectively, and is recognized within Accounts payable and accrued expenses in the Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, the portfolio of leases and loans serviced for others was $ 328 million and $340 million, respectively. In addition, the Company may have continuing involvement in contracts sold through any recourse obligations that may include customary representations and warranties or specific recourse provisions. The Company’s expected losses from recourse obligations is $1. 2 million as of March 31, 2020 and was $ 0.4 million as of December 31, 2019 . The following table summarizes information related to portfolio sales for the periods presented: Three Months Ended March 31, 2020 2019 (Dollars in thousands) Sales of leases and loans $ 22,929 $ 52,867 Gain on sale of leases and loans 2,282 3,612 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 6 – Allowance for Credit Losses For 2019 and prior, we maintained 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 incurred net credit losses in accordance with the Contingencies Topic of the FASB ASC . Effective January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) , which changed our accounting policy and estimated allowance. CECL replaces the probable, incurred loss model with a measuremen t of expected credit losses for the contractual term of the Company’s current portfolio of loans and leases. After the adoption of CECL, an allowance, or estimate of credit losses, will be recognized immediately upon the origination of a loan or lease, an d will be adjusted in each subsequent reporting period. See further discussion of the adoption of this accounting standard and a summary of the Company’s revised Accounting Policy for Allowance for Credit L osses in Note 2, Summary of Significant Accountin g Policies. Detailed discussion of our measurement of allowance under CECL as of the adoption date and March 31, 2020 is below. The following tables summarize activity in the allowance for credit losses Three Months Ended March 31, 2020 Commercial Leases and Loans (Dollars in thousands) Equipment Finance Working Capital Loans CVG CRA Total Allowance for credit losses, December 31, 2019 $ 18,334 $ 1,899 $ 1,462 $ — $ 21,695 Adoption of ASU 2016-13 (CECL) (1) 9,264 (3) 2,647 — 11,908 Allowance for credit losses, January 1, 2020 $ 27,598 $ 1,896 $ 4,109 $ — $ 33,603 Charge-offs (6,490) (1,279) (729) — (8,498) Recoveries 525 38 89 — 652 Net chargeoffs (5,965) (1,241) (640) — (7,846) Realized cashflows from Residual Income 1,153 - - — 1,153 Provision for credit losses 14,988 6,545 3,617 — 25,150 Allowance for credit losses, end of period $ 37,774 $ 7,200 $ 7,086 $ — $ 52,060 Net investment in leases and loans, before allowance $ 877,199 $ 59,012 $ 84,515 $ 1,410 $ 1,022,136 Three Months Ended March 31, 2019 Commercial Leases and Loans (Dollars in thousands) Equipment Finance Working Capital Loans CVG CRA Total Allowance for credit losses, beginning of period $ 13,531 $ 1,467 $ 1,102 $ — $ 16,100 Charge-offs (4,333) (673) (328) — (5,334) Recoveries 734 19 — — 753 Net charge-offs (3,599) (654) (328) — (4,581) Provision for credit losses 4,043 871 449 — 5,363 Allowance for credit losses, end of period $ 13,975 $ 1,684 $ 1,223 $ — $ 16,882 Net investment in leases and loans, before allowance $ 915,556 $ 43,210 $ 79,830 $ 1,476 $ 1,040,072 __________________ (1) The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed our accounting policy and estimated allowance, effective January 1, 2020. See further discussion in Note 2, Summary of Significant Accounting Policies, and below. Estimate of Current Expected Credit Losses (CECL) Starting with the January 1, 2020 adoption of CECL, the Company recognizes an allowance, or estimate of credit losses, immediately upon the origination of a loan or lease, and that estimate will be reassessed in each subsequent reporting period. This esti mate of credit losses takes into consideration all cashflows the Company expects to receive or derive from the pools of contracts, including recoveries after charge-off, amounts related to initial direct cost and origination costs net of fees deferred, accrued interest receivable and certain future cashflows from residual assets. As part of its estimate of expected credit losses, specific to each measurement date, management considers relevant qualitative and quantitative factors to assess whether the his torical loss experience being referenced should be adjusted to better reflect the risk characteristics of the current portfolio and the expected future loss experience for the life of these contracts. This assessment incorporates all available information relevant to considering the collectability of its current portfolio, including considering economic and business conditions, default trends, changes in its portfolio composition, changes in its lending policies and practices, among other internal and exte rnal factors. Current Measurement The Company selected a vintage loss model as the approach to estimate and measure its expected credit losses for all portfolio segments and for all pools, primarily because the timing of the losses realized has been cons istent across historical vintages, such that the company is able to develop a predictable and reliable loss curve for each separate portfolio segment. The vintage model assigns loans to vintages by origination date, measures our historical average actual loss and recovery experience within that vintage, develops a loss curve based on the averages of all vintages, and predicts (or forecasts) the remaining expected net losses of the current portfolio by applying the expected net loss rates to the remaining l ife of each open vintage. Additional detail specific to the measurement of each portfolio segment under CECL as of January 1, 2020 and March 31, 2020 is summarized below . Equipment Finance: Equipment Finance consists of Equipment Finance Agreements, Ins tallment Purchase Agreements and other leases and loans. The risk characteristics referenced to develop pools of Equipment F inance leases and loans are based on internally developed credit score ratings, which is a measurement that combines many risk char acteristics, including loan size, external credit scores, existence of a guarantee, and various characteristics of the borrower’s business. In addition, the Company separately measured a pool of true leases so that any future cashflows from residuals coul d be used to partially offset the allowance for that pool. The Company’s measurement of Equipment F inance pools is based on its own historical loss experience. The Company analyzed the correlation of its own loss data from 2004 to 2019 against various economic variables in order to determine an approach for reasonable and supportable forecast. The Company then selected certain economic variables to reference for its forecast about the future , specifically the unemployment rate and growth in business b ankruptcy. The Company’s methodology reverts from the forecast data to its own loss data adjusted for the long-term average of the referenced economic variables, on a straight-line basis. At each reporting date, the Company considers current conditions, i ncluding changes in portfolio composition or the business environment, when determining the appropriate measurement of current expected credit losses for the remaining life of its portfolio. As of the January 1, 2020 adoption date, the Company utilized a 12 - month forecast period and 12 - month straight-line reversion period, based on its initial assessment of the appropriate timing. However, for its March 31, 2020 measurement , the Company adjusted its model to reference a 6 - month forecast period and 12 - month straight line reversion period. The change in the length of the reasonable and supportable forecast was based on observed market volatility in late March and uncertainty o f the duration and level of impact of the COVID-19 virus on the macroeconomic environment and the Company’s portfolio, including uncertainty about the forecasted impact of COVID-19 that w as underlying its economic forecasted variables beyond a 6-month period. The forecast adjustment to the Equipment Finance portfolio segment resulted in a $ 10.8 million increase to the provision for the three months ended March 31, 2020. The Company qualitatively assessed the output of the Equipment Finance calculated allo wance after adjusting the forecast period, and determined the resulting credit loss estimate to properly reflect its estimate of expected net cashflows of this portfolio segment over the remaining contract term . Working Capital: The risk characteristi cs referenced to develop pools of Working Capital loans is based on origination channel, separately considering an estimation of loss for direct-sourced loans versus loans that were sourced from a broker. The Company’s historical relationship with its dire ct-sourced customers typically results in a lower level of credit risk than loans sourced from brokers where the Company has no prior credit relationship with the customer. The Company’s measurement of Working Capital pools is based on its own historic al loss experience. The Company’s Working Capital loans typically range from 6 – 12 months of duration. For this portfolio segment, due to the short contract duration, the Company did not define a standard methodology to adjust its loss estimate based on a forecast of economic condition s . However, the Company will continually assess through a qualitative adjustment whether there are changes in conditions and the environment that will impact the performance of these loans that should be considered for qual itative adjustment. At each reporting date, the Company considers current conditions, including changes in portfolio composition or the business environment, when determining the appropriate measurement of current expected credit losses for the remaining l ife of its portfolio. As of the January 1, 2020 adoption date, there w as no qualitative adjustment to the Working Capital portfolio. However, for the March 31, 2020 measurement, driven by the elevated risk of credit loss driven by market conditions due t o COVID-19, the Company developed alternate scenarios for credit loss based on an analysis of the characteristics of its portfolio , considering different timing and magnitudes of potential exposures . The Company determined its most likely expectation for credit losses for the Working Capital segment for the remaining nine months of 2020 , based on the increased risk to its borrowers and increased risk to the collectability of its portfolio from COVID-19, and increased the reserve by a $ 5.5 million qualitative adjustment for that loss estimate. Commercial Vehicle Group (CVG): Transportation-related equipment leases and loans are analyzed as a single pool, as the Company did not consider any risk characteristics to be significant enough to warrant disaggregating this population. The Company’s measurement of CVG pools is based on a combination of its own historical loss experience and industry loss data from an external source. The Company has limited history of this product, and therefore the Company determined it was appropriate to develop an estimate based on a combination of data. Due to the Company’s limited history of performance of this segment, and the limited size of the portfolio, the Company did not develop a standard methodology to adjust its loss estimate based on a forecast of economic conditions. However, the Company will continually assess through a qualitative adjustment whether there are changes in conditions and the environment that will impact the performance of these loans that should be considered for qualitat ive adjustment. At each reporting date, the Company considers current conditions, including changes in portfolio composition or the business environment, when determining the appropriate measurement of for the remaining life of the current portfolio. As o f the January 1, 2020 adoption date, there were no qualitative adjustment to the CVG portfolio. However, for the March 31, 2020 measurement, driven by the elevated risk of credit loss driven by market conditions due to COVID-19, the Company developed alte rnate scenarios for expected credit loss for this segmen t , considering different timing and magnitudes of potential exposures . The Company determined its most likely expectation for credit losses for the CVG segment for the remaining nine months of 2020 based on the increased risk to its borrowers and increased risk to the collectability of its portfolio from COVID-19, and increased the reserve by a $ 2.9 million qualitative adjustment for that loss estim a te. Community Reinvestment Act (CRA): CRA loans ar e comprised of loans originated under a line of credit to satisfy the Company’s obligations under the Community Reinvestment Act of 1977. The Company does not measure an allowance specific to this portfolio segment because the exposure to credit loss is n ominal. In response to COVID-19, starting in mid-March 2020, the Company instituted a payment deferral program in order to assist its small-business customers that request relief who are current under their existing obligations and can demonstrate that their ability to repay has been impacted by the COVID-19 crisis . Through March 31, 2020, the Company had processed payment deferral mo difications for 520 contracts , or $ 19.5 million net investment in leases and loans, where the typical mo dification included a 60-day deferral of payments for Working Capital loans and 90-day deferral of payments for other customers , with such payments added to the end of the contract term. The modifications for each portfolio segment were $ 8.5 million of Eq uipment Finance, $ 7.0 million of Working Capital, and $ 4.0 million of CVG net investment in leases and loans. The Company did not adjust its estimate of credit losses for any portfolio segment based on whether or not contracts were modified; the Company’s allowance estimate assesses the risk of credit loss for modified loans to be equal to loans that were not modified as of March 31, 2020 . Subsequent to quarter-end, through April 24, 2020, the Company has approved the payment deferral modification applicat ion for contracts representing an additional $ 134.5 million net investment in leases and loans. A portion of these modifications are subject to the completion of final processing and documentation . Troubled debt restructurings are restructurings of leases and loans in which, due to the borrower's financial difficulties, a lender grants a concession that it would not otherwise consider for borrowers of similar credit quality. In accordance with the interagency guidance issued in March 2020, that the Financial Accounting Standards Board concurred with, loans modified under the Company’s payment deferral program are not considered troubled debt restructurings. As of March 31, 2020 and December 31, 201 9, the Company did no t have any troubled debt restructurings. As part of our analysis of expected credit losses, we may analyze contracts on an individual basis, or create additional pools of contracts, in situations where such loans exhibit unique risk ch aracteristics and are no longer expected to experience similar losses to the rest of their pool. As of March 31, 2020 and January 1, 2020, there were no contracts subject to specific analysis outside of the portfolio segments and pools that are outlined a bove. Credit Quality At origination, the Company utilizes an internally developed credit score ratings as part of its underwriting assessment and pricing decisions for new contracts. The internal credit score is a measurement that combines many risk characteristics, including loan size, external credit scores, exis tence of a guarantee, and various characteristics of the borrower’s business . The internal credit score is used to create pools of loans for analysis in the Company’s Equipment Finance portfolio segment, as discussed further above. We believe this segmentation allows our loss modeling to properly reflect changes in portfolio mix driven by sales activity and adjustments to underwriting standards. However, this score is not updated after origination date for analyzing the Company’s provision. On an ongoin g basis, t o monitor the credit quality of its portfolio, t he Company primarily reviews the current delinquency of the portfolio and delinquency migration to monitor risk and default trends . We believe that delinquency is the best factor to use to monitor t he credit quality of our portfolio on an ongoing basis because it reflects the current condition of the portfolio, and is a good predictor of near term charge-offs and can help with identifying trends and emerging risks to the portfolio. The following t ables provide information about delinquent leases and loans in the Company’s portfolio based on the contract’s status as-of the dates presented: Portfolio by Origination Year as of March 31, 2020 Total 2020 2019 2018 2017 2016 Prior Receivables (Dollars in thousands) Equipment Finance 30-59 $ 179 $ 2,952 $ 1,803 $ 1,368 $ 512 $ 167 $ 6,981 60-89 — 1,428 1,304 767 319 73 3,891 90+ — 2,157 1,629 1,046 387 138 5,357 Total Past Due 179 6,537 4,736 3,181 1,218 378 16,229 Current (1) 110,762 372,522 207,521 114,189 44,511 11,465 860,970 Total 110,941 379,059 212,257 117,370 45,729 11,843 877,199 Working Capital 30-59 — 609 — — — — 609 60-89 — 16 — — — — 16 90+ — 23 26 — — — 49 Total Past Due — 648 26 — — — 674 Current (1) 21,388 35,947 965 38 — — 58,338 Total 21,388 36,595 991 38 — — 59,012 CVG 30-59 — 126 178 106 30 — 440 60-89 — 182 84 49 — — 315 90+ — 276 75 211 31 — 593 Total Past Due — 584 337 366 61 — 1,348 Current (1) 8,755 39,679 19,750 11,054 3,833 96 83,167 Total 8,755 40,263 20,087 11,420 3,894 96 84,515 CRA Total Past Due — — — — — — — Current 1,410 — — — — — 1,410 Total 1,410 — — — — — 1,410 Net investment in leases and loans, before allowance $ 142,494 $ 455,917 $ 233,335 $ 128,828 $ 49,623 $ 11,939 $ 1,022,136 Portfolio by Origination Year as of December 31, 2019 Total 2019 2018 2017 2016 2015 Prior Receivables (Dollars in thousands) Equipment Finance 30-59 $ 1,420 $ 1,755 $ 935 $ 454 $ 169 $ 17 $ 4,750 60-89 1,023 1,055 685 366 80 4 3,213 90+ 947 1,522 1,090 527 163 7 4,256 Total Past Due 3,390 4,332 2,710 1,347 412 28 12,219 Current 424,559 236,068 135,419 55,119 16,461 1,407 869,033 Total 427,949 240,400 138,129 56,466 16,873 1,435 881,252 Working Capital 30-59 566 18 — — — — 584 60-89 16 52 — — — — 68 90+ 203 — — — — — 203 Total Past Due 785 70 — — — — 855 Current 57,706 2,343 38 — — — 60,087 Total 58,491 2,413 38 — — — 60,942 CVG 30-59 50 126 90 99 — — 365 60-89 5 15 188 46 — — 254 90+ — 178 158 53 — — 389 Total Past Due 55 319 436 198 — — 1,008 Current 42,536 22,531 13,442 4,976 130 — 83,615 Total 42,591 22,850 13,878 5,174 130 — 84,623 CRA Total Past Due — — — — — — — Current 1,398 — — — — — 1,398 Total 1,398 — — — — — 1,398 Net investment in leases and loans, before allowance $ 530,429 $ 265,663 $ 152,045 $ 61,640 $ 17,003 $ 1,435 $ 1,028,215 _________________ (1) Current receivables include leases and loans that are in payment deferral status as part of the Company’s COVID-19 modification program. See further discussion above. Net investments in Equipment Finance and CVG leases and loans are generally charged-off when they are contractually past due for 120 days or more. Income recognition is discontinued when a default on monthly payment exists for a period of 90 d ays or more. Income recognition resumes when a lease or loan becomes less than 90 days delinquent. At March 31, 2020 and December 31, 2019 , there were no finance receivables past due 90 days or more and still accruing. Working Capital Loans are generally place d in non-accrual status when they are 30 days past due and generally 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. At March 31, 2020 and December 31, 2019 , there were no Working Capital Loans past due 30 days or more and still accruing. The following tables provide information about non-accrual leases and loans : March 31, December 31, (Dollars in thousands) 2020 2019 Equipment Finance $ 5,357 $ 4,256 Working Capital Loans 755 946 CVG 593 389 Total Non-Accrual $ 6,705 $ 5,591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets [Text Block] | NOTE 7 - Goodwill and Intangible Assets Goodwill The Company’s goodwill balance of $ 6.7 million at December 31, 201 9 included $1.2 million from the Company’s acquisition of Horizon Keystone Financial, an equipment company (‘ HKF ”), in January 2017 , and $5.5 million from the September 2018 acquisition of FFR. The goodwill balance represents the excess purchase price over the Company’s fair value of the assets acquired and is not amortizable but is deductible for tax purposes. Impair ment testing will be performed in the fourth quarter of each year and more frequently as warranted in accordance with the applicable accounting guidance . The Company assigns its goodwill to a single, consolidated reporting unit, Marlin Business Services C orp. In the first quarter of 2020, events or circumstances indicated that it was more likely than not that the fair value of its reporting unit was less than its carrying amount, driven in part by market capitalization of the Company falling below its book value, and negative current events that impact the Company related to the COVID-19 economic shutdown. The Company calculated the fair value of the reporting unit, by taking the average stock price over a reasonable period of time multiplied by shares out standing as of March 31, 2020 and then further applying a control premium, and compared it to its carrying amount, including goodwill. The Company concluded that the implied fair value of goodwill was less than its carrying amount, and recognized impairme nt equal to the $6.7 million balance in General and administrative expense in the Consolidated Statements of Operations. The changes in the carrying amount of goodwill for the three- month period ended March 31, 2020 are as follows: (Dollars in thousands) Total Company Balance at December 31, 2019 $ 6,735 Impairment of Goodwill (6,735) Balance at March 31, 2020 $ — Intangible assets The Company’s intangible assets consist of $1.3 million of definite-lived assets with a weighted-average amortization period of 8.7 years that were recognized in connection with the January 2017 acquisition of HKF, and $7.6 million of definite-lived intangible assets with a weighted-average amortization period of 10.8 years that were recognized in connection with the September 2018 acquisition of FFR. The Company has no indefinite-lived intangible assets . The f ollowing table presents details of the Company’s intangible assets as of March 31, 2020 : (Dollars in thousands) Gross Carrying Accumulated Net Description Useful Life Amount Amortization Value Lender relationships 3 to 10 years $ 1,630 $ 551 $ 1,079 Vendor relationships 11 years 7,290 1,140 6,150 Corporate trade name 7 years 60 28 32 $ 8,980 $ 1,719 $ 7,261 There was no impairment of these assets in the first quarter of 2020 or 2019 . Amortization related to the Company’s definite lived intangible assets was $ 0. 2 million and $ 0 .2 million for the three -month periods ended March 31, 2020 and March 31, 2019 , respectively . The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) Remainder of 2020 $ 599 2021 798 2022 798 2023 798 2024 790 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | NOTE 8 – Other Assets Other assets are comprised of the following: March 31, December 31, 2020 2019 (Dollars in thousands) Accrued fees receivable $ 3,683 $ 3,509 Prepaid expenses 2,853 2,872 Income taxes receivable (1) 6,877 — Federal Reserve Bank Stock 1,711 1,711 Other 2,341 2,361 $ 17,465 $ 10,453 _______________________ (1) See Note 2 – Summary of Significant Accounting Policies, for discussion of the Provision for income taxes. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – 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 FD IC-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 a nd recorded as a single deposit account at MBB. As of March 31, 2020 , money market deposit accounts totaled $ 51.6 million. As of March 31, 2020 , the scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 387,922 2021 265,743 2022 134,233 2023 66,915 2024 28,046 Thereafter 6,927 Total $ 889,786 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 at March 31, 2020 was 2.15% . |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt and Financing Arrangements [Abstract] | |
Debt and Financing Arrangements [Text Block] | NOTE 10 – Debt and Financing Arrangements Short -Term Borrowings T he Company has a secured, variable rate revolving line of credit in the amount of $ 5.0 million that expires on November 20, 2020 . As of March 31, 2020 , the Company was in compliance with all debt covenants required under this line of credit and there were no outstanding balances on this line of credit as of March 31, 2020 and December 31, 2019 . Long-term Borrowings On July 27, 2018, the Company completed a $201.7 million asset-backed term securitization. Each tranche of the term note securitization has a fixed term, fixed interest rate and fixed principal amount. At March 31, 2020 , outstanding term securitizations amou nted to $ 62.6 million and are collateralized by $ 68.5 million of minimum lease and loan payments receivable and $ 6.5 million of restricted interest-earning deposits. The Company’s term note securitizations are classified as l ong-term borrowings. The balance of long-term borrowings consisted of the following: March 31, December 31, 2020 2019 (Dollars in thousands) Term securitization 2018-1 $ 62,555 $ 76,563 Unamortized debt issuance costs (362) (472) $ 62,193 $ 76,091 The term note securitization is summarized below: Outstanding Balance as of Notes Final Original March 31, December 31, Originally Maturity Coupon 2020 2019 Issued Date Rate (Dollars in thousands) 2018 — 1 Class A-1 $ — $ — $ 77,400 July, 2019 2.55 % Class A-2 — 8,013 55,700 October, 2020 3.05 Class A-3 30,915 36,910 36,910 April, 2023 3.36 Class B 10,400 10,400 10,400 May, 2023 3.54 Class C 11,390 11,390 11,390 June, 2023 3.70 Class D 5,470 5,470 5,470 July, 2023 3.99 Class E 4,380 4,380 4,380 May, 2025 5.02 Total Term Note Securitizations $ 62,555 $ 76,563 $ 201,650 3.05 % (1)(2) (1) Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. ( 2 ) The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.62 % over the remaining term of the borrowing. Scheduled principal and interest payments on outstanding borrowings as of March 31, 2020 are as follows: Principal Interest (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 30,344 $ 1,342 2021 23,629 813 2022 8,582 159 $ 62,555 $ 2,314 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements And Disclosures About Fair Value Of Financial Instruments [Abstract] | |
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | NOTE 11 – Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments Fair Value Measurements 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. GAA P 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 th e 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 Company’s balances measured at fair value on a recurring basis include the following as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (Dollars in thousands) Assets ABS $ — $ 4,135 $ — $ — $ 4,332 $ — Municipal securities — 2,653 — — 3,129 — Mutual fund 3,692 — — 3,615 — — At this time, the Company has not elected to report any assets and liabilities using the fair value option. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy for any of the periods presented. Non-Recurring Measurements Non-recurring fair value measurements include assets and liabilities that are periodically remeasured or assessed for impairment using Fair value measurements. Non-recurring measurements include the Company’s evaluation of goodwill and residual assets for impairment, and the Company’s remeasurement of contingent consideration and assessment of the carrying amount of its servicing liability. For the three months ended March 31, 2020, the Company recognized $ 6.7 million for the impairment of goodwill in Ge neral and administrative expense in the Consolidated Statements of Operations, as discussed further in Note 7, Goodwill and Intangible Assets. For the three months ended March 31, 2019, there were no significant amounts recognized in the Consolidated Stat ements of Operations in connection with non-recurring fair value measurements. Fair Value of Other Financial Instruments The following summarizes the carrying amount and estimated fair value of the Company’s other financial instruments, including those not measured at fair value on a recurring basis: March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 211,070 $ 211,070 $ 123,096 $ 123,096 Time deposits with banks 13,664 13,094 12,927 12,970 Restricted interest-earning deposits with banks 6,474 6,474 6,931 6,931 Loans, net of allowance 580,244 558,584 588,688 593,406 Federal Reserve Bank Stock 1,711 1,711 1,711 1,711 Financial Liabilities Deposits $ 941,996 $ 952,958 $ 839,132 $ 846,304 Long-term borrowings 62,193 62,841 76,091 76,781 The re have been no significant changes in the methods and assumptions used in estimating the fair values of financial instruments , as outlined in our consolidated financial statements and note disclosures in the Company’s Form 10-K for the year ended December 31, 2019. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 – 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 or loss 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 or loss allocated to common stock by the weighted aver age 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 o r converted. The following table provides net income and shares used in computing basic and diluted EPS: Three Months Ended March 31, 2020 2019 (Dollars in thousands, except per-share data) Basic EPS Net (loss) income $ (11,821) $ 5,141 Less: net income allocated to participating securities — (72) Net (loss) income allocated to common stock $ (11,821) $ 5,069 Weighted average common shares outstanding 12,014,396 12,337,730 Less: Unvested restricted stock awards considered participating securities (138,249) (172,084) Adjusted weighted average common shares used in computing basic EPS 11,876,147 12,165,646 Basic (loss) earnings per share $ (1.00) $ 0.42 Diluted EPS Net (loss) income allocated to common stock $ (11,821) $ 5,069 Adjusted weighted average common shares used in computing basic EPS 11,876,147 12,165,646 Add: Effect of dilutive stock-based compensation awards — 86,470 Adjusted weighted average common shares used in computing diluted EPS 11,876,147 12,252,116 Diluted (loss) earnings per share $ (1.00) $ 0.41 For each of the three-month periods ended March 31, 2020 and March 31, 2019 , outstanding stock based compensation awards in the amount of 359,035 and 188,583 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 13 – Stockholders’ Equity Share Repurchases During the three - month period ended March 31, 2020 , the Company purchased 264,470 shares of its common stock i n the open market under the 2019 Repurchase Plan at an average cost of $ 16.09 per share. D uring the three -month period ended March 31, 2019 , the Company purchase d 29,947 shares of its common stock in the open market under the 2017 Repurchase Plan at an average cost of $ 23.86 per share . At March 31, 2020 , the Company had $ 4.7 million remaining in the 20 19 Repurchase Plan . In addition to the repurchases described above, participants in the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan”) may have shares withheld to cover income taxes. D uring the three-month period s ended March 31, 2020 and March 31, 2019 , there were 21,123 shares and 18,910 shares repurchased to cover income tax withholding under the 2014 Plan at an aver age cost of $ 13.38 per share and $ 22.74 per share, 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 commercia l 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 Company and MBB are subject to capital adequacy regul ations 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 banking organizations and consider off-balance sheet e xposures 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. Under the capital adequacy regulation, at least ha lf 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 preferred stock. The remaining capital, "Tier 2 Ca pital," 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 establish minimum leverage ratios for banking organizatio ns, which are calculated by dividing Tier 1 Capital by total 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 capital adequacy standards. These standards require a minimum for Tier 1 leverage ratio of 4 %, minimum Tier 1 risk-based ratio of 6 %, and a to tal risk-based capital ratio of 8 %. The Basel III capital adequacy standards established 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 1.875 % for 2018, and 2.5 % for 2019 and thereafter. If a banking organization does not maintain capital above the minimum plus the capital conservation buffer it may b e subject to restrictions on dividends, share buybacks, and certain discretionary payments such as bonus payments. CMLA Agreement. On March 25, 2020, MBB received notice from the FDIC that it had approved MBB ’s request to rescind certain nonstandard conditions in the FDIC’s order granting federal deposit insurance issued on March 20, 2007. Furthermore, effective March 26, 2020, the FDIC, the Company and certain of the Company’s subsidiaries terminated the Capital Maintenance and Liquidity Agreement (the “CMLA Agreement”) and the Parent Company Agreement, each entered into by and among the Company, certain of its subsidiaries and the FDIC in conjunction with the opening of MBB . A s a result of these actions, MBB is no longer required pursuant to the CMLA Agreement to maintain a total risk-based capital ratio above 15 %. Rather, MBB must continue to maintain a total risk-based capital ratio above 10% in order to maintain “well-capitalized” status as defined by banking regulations, while the Company must continue to maintain a total risk-based capital ratio as discussed in the immediately preceding paragraph . The additional capital released by the termination of the CMLA Agreement is held at MBB and is subject to the restrictions outlined in Title 12 part 208 of the Code of Federal Regulations (12 CFR 208.5), which places limitations o n bank dividends, including restricting dividends for any year to the earnings from the current and prior two calendar years. Any divid ends declared above that amount and any return of permanent capital would require prior approval of the Federal Reserve Board of Governors. MBB’s Tier 1 Capital balance at March 31, 2020 was $139.2 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At March 31, 2020 , the Company also exceeded its regulatory capital requirements and was considered “well-capitalized” as defined by federal banking regulations and as required by the FDIC Agreement. CECL Capital Transition. The Company adopted CECL, or a new measurement methodology for the allowance estimate, on January 1, 2020, as discussed further in Note 2—Summary of Significant Account ing Policies. Rules governing the Company’s regulatory capital requirements give entities the option of delaying for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of capital benefit, or a five-year transition in total. The Company has elected to avail itself of the five - year transition. For measurements of regulatory capital in 2020 and 2021 , under the two year delay the Company shall prepare: (i) a measurement of its estimated allowance for credit losses under CECL, as reported in its balance sheets; and (ii) a measurement of its estimated allowance under the historical incurred loss methodo logy, as prescribed by the regulatory calculation. A ny amount of provisions under CECL that is in excess of the incurred estimate will be a n adjustment the Company’s capital during the two-year delay. The three-year transition, starting in 2022, will pha se in that adjustment straight-line, such that 25 percent of the transitional amounts will be included in the first year, and an additional 25 % over each of the next two years, such that we will have phased in 75 % of the adjustment during year three. At t he beginning of year 6 (2025 ) the Company will have completely reflected the effects of CECL in its regulatory capital. 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 March 31, 2020 . Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 16.18% $ 194,700 4% $ 48,137 5% $ 60,171 Marlin Business Bank 13.27% $ 139,242 4% $ 41,961 5% $ 52,451 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 18.64% $ 194,700 4.5% $ 47,004 6.5% $ 67,894 Marlin Business Bank 14.86% $ 139,242 4.5% $ 42,163 6.5% $ 60,902 Tier 1 Risk-based Capital Marlin Business Services Corp. 18.64% $ 194,700 6% $ 62,672 8% $ 83,562 Marlin Business Bank 14.86% $ 139,242 6% $ 56,217 8% $ 74,957 Total Risk-based Capital Marlin Business Services Corp. 19.94% $ 208,238 8% $ 83,562 10% $ 104,453 Marlin Business Bank 16.16% $ 151,425 8% $ 74,957 10% $ 93,696 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. Five 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. Adeq uately 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 le vel 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 d epository 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 cap ital 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 a dequately 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. Dependi ng 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 r egulatory 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. MBB’s total risk-based capital ratio of 16.16% at March 31, 2020 exceeded the threshold for “well ca pitalized” status under the applicable laws and regulations . 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 ma y 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 14 – Stock-Based Compensation Awards for Stock-Based Compensation are governed by the Company’s 2003 Equity Compensation Plan, as amended (the “2003 Plan”), the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan”) and the Co mpany’s 2019 Equity Compensation Plan (approved by the Company’s shareholders on May 30, 2019) (the “2019 Plan” and, together with the 2014 Plan and the 2003 Plan, the “Equity Compensation Plans”). Under the terms of the Equity Compensation Plans, employee s, 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 a s approved by the Company’s Board of Directors. These award programs are used to attract, retain 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 Equity Compensation Plans. The aggregate number of shares under the 2019 Plan that may be issued for Grants is 826,036 . There were 573,981 shares available for future grants under the 201 9 Plan as of March 31, 2020 . Total stock-based compensation expense was $ 0.5 million and $ 0.9 million for the three -month periods ended March 31, 2020 and March 31, 2019 , respectively. Excess tax deficit for the three -month period ended March 31, 2020 was $0.4 million. Excess tax benefits for the three -month period ended March 31, 2019 was less than $0.1 million. Stock Options Option awards are 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 year contractual terms. All options issued contain service conditions based on the participant’s continued serv ice with the Company and provide for accelerated vesting if there is a change in control as defined in the Equity Compensation Plans . Employee stock options generally vest over three to four years. There were no stock options granted duri ng the three-month periods ended March 31, 2020 and March 31, 2019 , respectively. A summary of option activity for the three-month period ended March 31, 2020 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2019 135,159 $ 26.79 Granted — — Exercised — — Forfeited (3,929) 27.31 Expired (7,097) 26.36 Outstanding, March 31, 2020 124,133 26.80 During each three -month period ended March 31, 2020 and March 31, 2019 , the Company recognize d compensation expense related to options of $ 0.1 million . There were no stock options exercised during the three-month periods ended March 31, 2020 and March 31, 2019 . The following table summarizes information about the stock options outstanding and exercisable as of March 31, 2020 . 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 71,766 4.0 $ 25.75 $ — 71,766 4.0 $ 25.75 — $ 28.25 52,367 5.0 $ 28.25 $ — 35,317 5.0 $ 28.25 $ — 124,133 4.4 $ 26.80 $ — 107,083 4.3 $ 26.57 $ — The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $11.17 as of March 31, 2020 , which would have been received by the option holders had all option holders exercised their options as of that date. As of March 31, 2020 , the re was $ 0.1 million of unrecognized compensation cost related to non-vested stock options not yet recognized in the Consolidated Statements of Operations scheduled to be recogniz ed over a weighted average period of 1.0 year . Restricted Stock Awards The Company’s r estricted 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. A ll awards issued contain service conditions based on the participant’s continued service with the Company and may provide for accelerated vesting if there is a change in control as defined in the Equity Compensation Plans. The vesting of certain restric ted 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. Vesting was accelerated in 2019 on certain awards based on the achievement of certain performance criteria determined annually, as described below. The Company also issues restricted stock to non-em ployee independent directors. These shares generally 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 three - month period ended March 31, 2020 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2019 143,935 $ 21.88 Granted — 0.00 Vested (11,973) 18.83 Forfeited (550) 25.88 Outstanding at March 31, 2020 131,412 22.14 During the three-month period ended March 31, 2020 there were no restricted stock awards granted. During the three-month period ended March 31, 2019 , the Company granted restricted stock awards with a grant date fair values totaling less than $ 0.1 million. 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 $ 0.1 million and $ 0.3 million of compensation expense related to restricted stock for the three-month periods ended March 31, 2020 and March 31, 2019 , respectively. Of the $ 0.1 million total compensation expense related to restricted stock for the three -month period ended March 31, 2020 , no expense was related to accelerated vesting based on achievement of certain performance criteria determined annually. Of the $ 0.3 million total compensation expense related to restricted stock for the three -month period ended March 31, 2019 , approximately $ 0.1 million related to accelerated vesting based on the achievement of certain performance criteria determined annually. As of March 31, 2020 , there was $ 1.3 million of unrecognized compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 4.3 years. The fair value of shares that vested during the three -month periods ended March 31, 2020 and March 31, 2019 was $ 0.2 million and $ 0.7 m illion, 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. For those awards subject to achievement of certain market performance criteria, the market based target measurement period begins one year from the grant date and ends three years fro m 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 restricted stock unit activity for the three -mo nth period ended March 31, 2020 : Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2019 257,476 $ 18.00 Granted 95,758 17.55 Forfeited (5,081) 23.99 Converted (13,810) 25.75 Cancelled due to non-achievement of performance condition (30,390) 25.65 Outstanding at March 31, 2020 303,953 16.64 Service-based RSUs Outstanding at December 31, 2019 99,951 $ 23.59 Granted 69,422 20.43 Forfeited (4,480) 23.69 Converted (39,879) 24.30 Outstanding at March 31, 2020 125,014 21.61 There were no RSUs with vesting conditions based solely on market conditions granted during the three-month periods ended March 31, 2020 and March 31, 2019, respectively . The weighted average grant-date fair value of RSUs with both performance and market based vesting conditions granted during the three -month period s ended March 31, 2020 and March 31, 2019 was $ 12.90 and 12.9 1 per unit, respectively . 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: Three Months Ended March 31, 2020 2019 Grant date stock price $ 20.43 $ 21.50 Risk-free interest rate 1.40 % 2.16 % Expected volatility 26.18 % 26.68 % 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. During t he three month periods ended March 31, 2020 and March 31, 2019 , the Company granted RSUs with grant-date fair values totaling $ 3 . 1 million and $3.4 million, respectively. The Company recognized $ 0.3 million and $ 0. 5 million of compensation expense relat ed to RSUs for the three month periods ended March 31, 2020 and March 31, 2019 , respectively . The fair value of restricted stock units that converted to shares of common stock during both the three month periods ended March 31, 2020 and March 31, 2019 was $0. 6 million, respectively. As of March 31, 2020 , there was $ 4. 7 million of unrecognized compensation cost related to RSUs scheduled to be recognized over a weighted average period of 1 . 9 years based on the most probable performance assump tions . In the event maximum performance targets are achieved, an additional $ 5.0 million of compensation cost would be recognized over a weighted average period of 2.3 years. As of March 31, 20 20 182,181 performance units are expected to convert to shares of common stock based on the most probable performance assumptions. In the event maximum performance targets are achieved 514,957 perf or ma n ce units would convert to shares of common stock. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 15 – Subsequent Events The Company declared a dividend of $0.14 per share on April 30, 2020 . The quarterly dividend, which is expected to result in a dividend payment of approximately $1.7 million, is scheduled to be paid on May 21, 2020 to shareholders of record on the close of business on May 11, 2020 . It r epresents the Company’s thirty-fifth consecutive quarterly cash dividend. The payment of future dividends will be subject to approval by the Company’s Board of Directors . In addition, see Note 6— Allowanc e for Credit Losses for discussion of the v olume of payment deferral contract modification requests approved subsequent to March 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of financial statement presentation | Basis of financial statement presentation. The unaudited 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 simil ar economic characteristics, share the same leasing and loan portfolio and have a single consolidated product offering platform . All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated fina ncial statements present the Company’s financial position at March 31, 2020 and the results of operations for the three- month periods ended March 31, 2020 and 2019 , and cash flows for the three -month periods ended March 31, 2020 and 2019 . In management’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations for the i nterim periods presented. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K for the year ended December 31, 201 9 , filed with the Securities and Exchange Commission (“SEC”) on March 13 , 20 20 . The consolidated results and statements of cash flows for the se interim financial statements are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. |
Use of Estimates | Use of Estimates. These unaudited consolidated financial statement s require management to make estimates and assumptions that aff ect 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, estimated losses from insurance program, and income ta xes. Actual results could differ from those estimates. |
Provision for income taxes | Provision for income taxes. Income tax benefit of $ 7.4 million was recorded for the three-month period ended March 31, 2020 , compared to expense of $1.6 million for the t hree-month period ended March 31, 2019 . For the three-month period ended March 31, 2020 , the income tax benefit includes a $ 3.2 million discrete benefit, related to remeasuring our federal net operating losses, driven by certain provisions in the CARES Act. Our statutory tax rate, which is a combination of federal and state income tax rates, was approximately 23.9 % for both periods. However, our effective tax rate was 38.6% for the three-month period ended March 31, 2020 , driven by the recognition of t he discrete benefit. |
Credit Losses | Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Ins truments , which changes the methodology for evaluating impairment of most financial instruments. This guidance was subsequently amended by ASU 2018-19, Codification Improvements, ASU 2019-04, Codification Improvements , ASU 2019-05, Targeted Transition Relief, ASU 2019-10, Effective Dates, and ASU 2019-11, Codification Improvements . These ASUs are refe rred to collectively as “CECL”. CECL replaces the probable, incurred loss model with a measurement of expected credit losses for the contractual term of the Company’s current portfolio of loans and leases. After the adoption of CECL, a n allowance, or estimate of credit losses, will be recognized immediately upon the origination of a loan or lease, and will be adjusted in each subseque nt reporting period. This estimate of credit losses takes into consideration all cashflows the Company expects to receive or derive from the pools of contracts, including recoveries after charge-off, amounts related to initial direct cost and origination costs net of fees deferred, accrued interest receivable and certain future cashflows from residual assets. The Company had previously recognized residual income within Fee Income in its Consolidated Statement s of Operations; the adoption of CECL results in such residual income being captured as a component of the activity of the allowance. The Company’s policy for charging off contracts against the allowance, and non-accrual policy are not impacted by the adoption of CECL. The provision for credit losses recognized in the Consolidated S tatement s of Operations under CECL will be primarily driven by originations, offset by the reversal of the allowance for any contracts sold, plus any amounts of realized cashflows, such as charge - offs, above or below our modeled estimates, plus adjustments for changes in estimate each subsequent reporting period. Estimating an allowance under CECL requires the Company to develop and maintain a consistent systematic methodology to measure the estimated credit losses inherent in its current portfolio, over the entire life of the contracts. The Company assesses the appropriate collective, or pool, basis to use to aggregate its portfolio based on the existence of similar risk characteristics and determined that i ts measurement begins by separately considering segments of financing receivables, which is similar to how it has historically analyzed its allowance for credit losses: (i) equipment finance lease and loan; (ii) working capital loans; (iii) commercial vehi cles “CVG”; and (iv) Community Reinvestment Act. However, these classes of receivables are further disaggregated into pools of loans based on risk characteristics that may include: lease or loan type, origination channel, and internal credit score (which is a measurement that combines many risk characteristics, including loan size, external credit scores, existence of a guarantee, and various characteristics of the borrower’s business). As part of our analysis of expected credit losses, we may analyze c ontracts on an individual basis, or create additional pools of contracts, in situations where such loans exhibit unique risk characteristics and are no longer expected to experience similar losses to the rest of their pool. As part of its estimate of ex pected credit losses, specific to each measurement date, management considers relevant qualitative and quantitative factors to assess whether the historical loss experience being referenced should be adjusted to better reflect the risk characteristics of t he current portfolio and the expected future loss experience for the life of these contracts. This assessment incorporates all available information relevant to considering the collectability of its current portfolio, including considering economic and bu siness conditions, default trends, changes in its portfolio composition, changes in its lending policies and practices, among other internal and external factors. The Company adopted the guidance in these ASUs, effective January 1, 2020, applying changes resulting from the application of the new standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The adopt ion of this standard resulted in the following adjustment to the Company’s Consolidated Balance Sheets: Balance as of Balance as of December 31, Adoption January 1, 2019 Impact 2020 (Dollars in thousands) Assets: Net investment in leases and loans $ 1,028,215 $ — $ 1,028,215 Allowance for credit losses (21,695) (11,908) (33,603) Total net investment in leases and loans 1,006,520 994,612 Liabilities: Net deferred income tax liability 30,828 (3,031) 27,797 Stockholders' Equity: Retained Earnings 135,112 (8,877) 126,235 See Note 6 – Allowance for Credit Losses , for further discussion of the January 1, 2020 measurement of allowance under CECL, as well as discussion of the Company’s new Accounting Policy governing its Allowance. See Note 13 – Stockholders’ Equity , for discussion of the Company’s election to de lay for two-years the effect of CECL on regulatory capital, followed by a three-year phase-in for a five-year total transition. In addition, as a result of adoption this standard, future measurements of the impairment of our investment securities will i ncorporate the guidance in these ASUs, including analyzing any decline in fair value between credit quality-driven factors versus other factors. There was no impact as of the adoption date to our investment securities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Standards Update 2016-13 [Member] | |
Adoption of standard resulted in adjustment to Company's Balance Sheets | Balance as of Balance as of December 31, Adoption January 1, 2019 Impact 2020 (Dollars in thousands) Assets: Net investment in leases and loans $ 1,028,215 $ — $ 1,028,215 Allowance for credit losses (21,695) (11,908) (33,603) Total net investment in leases and loans 1,006,520 994,612 Liabilities: Net deferred income tax liability 30,828 (3,031) 27,797 Stockholders' Equity: Retained Earnings 135,112 (8,877) 126,235 |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Noninterest Income [Abstract] | |
Summary of non-interest income | Three Months Ended March 31, (dollars in thousands) 2020 2019 Insurance premiums written and earned $ 2,282 $ 2,132 Gain on sale of leases and loans 2,282 3,612 Other income: Property tax income 5,504 5,643 Servicing income 566 287 Net gain (loss) recognized on equity securities 58 43 Non-interest income within the scope of other GAAP topics 10,692 11,717 Other income: Insurance policy fees 918 668 Property tax administrative fees on leases 234 268 ACH payment fees 72 86 Referral fees 94 155 Other 193 54 Non-interest income from contracts with customers 1,511 1,231 Total non-interest income $ 12,203 $ 12,948 |
Investment Securties (Tables)
Investment Securties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment securities [Abstract] | |
Investment Securities Summary [Table Text Block] | March 31, December 31, 2020 2019 (Dollars in thousands) Equity Securities Mutual fund $ 3,692 $ 3,615 Debt Securities, Available for Sale: Asset-backed securities ("ABS") 4,135 4,332 Municipal securities 2,653 3,129 Total investment securities $ 10,480 $ 11,076 |
Equity Securities, FV-NI [Table Text Block] | Three months ended (Dollars in thousands) March 31, 2020 March 31, 2019 Net gains and (losses) recognized during the period on equity securities $ 58 $ 43 Less: Net gains and (losses) recognized during the period on equity securities sold during the period — — Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ 58 $ 43 |
Summary of available for sale investments [Table Text Block] | March 31, 2020 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) ABS $ 4,074 $ 61 $ — $ 4,135 Municipal securities 2,664 14 (25) 2,653 Total Debt Securities, Available for Sale $ 6,738 $ 75 $ (25) $ 6,788 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) ABS $ 4,302 $ 33 $ (3) $ 4,332 Municipal securities 3,058 71 — 3,129 Total Debt Securities, Available for Sale $ 7,360 $ 104 $ (3) $ 7,461 |
Schedule of Unrealized Loss on Investments [Table Text Block] | March 31, 2020 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) Municipal securities $ (25) $ 1,834 $ — $ — $ (25) $ 1,834 Total available for sale investment securities $ (25) $ 1,834 $ — $ — $ (25) $ 1,834 December 31, 2019 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) ABS $ — $ — $ (3) $ 430 $ (3) $ 430 Total available for sale investment securities $ — $ — $ (3) $ 430 $ (3) $ 430 |
Investments Classified By Contractual Maturity Date [Table Text Block] | Distribution of Maturities 1 Year Over 1 to Over 5 to Over 10 or Less 5 Years 10 Years Years Total (Dollars in thousands) Amortized Cost: ABS $ — $ 2,427 $ 1,647 $ — $ 4,074 Municipal securities 15 34 756 1,859 2,664 Total available for sale investments $ 15 $ 2,461 $ 2,403 $ 1,859 $ 6,738 Estimated fair value $ 15 $ 2,501 $ 2,413 $ 1,859 $ 6,788 Weighted-average yield, GAAP basis 4.75% 2.02% 1.81% 2.58% 2.42% |
Net Investment in Leases and _2
Net Investment in Leases and Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Net Investment in Leases and Loans [Abstract] | |
Net investment in leases and loans | March 31, 2020 December 31, 2019 (Dollars in thousands) Minimum lease payments receivable $ 434,841 $ 457,602 Estimated residual value of equipment 29,464 29,342 Unearned lease income, net of initial direct costs and fees deferred (56,645) (59,746) Security deposits (512) (590) Total leases 407,148 426,608 Commercial loans, net of origination costs and fees deferred Working Capital Loans 59,012 60,942 CRA (1) 1,410 1,398 Equipment loans (2) 481,000 464,655 CVG 73,566 74,612 Total commercial loans 614,988 601,607 Net investment in leases and loans, excluding allowance 1,022,136 1,028,215 Allowance for credit losses (52,060) (21,695) $ 970,076 $ 1,006,520 ________________________ (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) Equipment loans are comprised of Equipment Finance Agreements, Installment Purchase Agreements and other loans. |
Maturities of lease receivables under lease contracts and the amortization of unearned lease income | Minimum Lease Payments Net Income Receivable (1) Amortization (2) (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 132,867 $ 22,664 2021 137,907 18,737 2022 90,158 9,728 2023 49,519 4,107 2024 20,660 1,140 Thereafter 3,730 269 $ 434,841 $ 56,645 ________________________ (1) Represents the undiscounted cash flows of the lease payments receivable. (2) Represents the difference between the undiscounted cash flows and the discounted cash flows . |
Summary of information related to portfolio sales | Three Months Ended March 31, 2020 2019 (Dollars in thousands) Sales of leases and loans $ 22,929 $ 52,867 Gain on sale of leases and loans 2,282 3,612 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Credit Losses [Abstract] | |
Summary of activity in the allowance for credit losses | Three Months Ended March 31, 2020 Commercial Leases and Loans (Dollars in thousands) Equipment Finance Working Capital Loans CVG CRA Total Allowance for credit losses, December 31, 2019 $ 18,334 $ 1,899 $ 1,462 $ — $ 21,695 Adoption of ASU 2016-13 (CECL) (1) 9,264 (3) 2,647 — 11,908 Allowance for credit losses, January 1, 2020 $ 27,598 $ 1,896 $ 4,109 $ — $ 33,603 Charge-offs (6,490) (1,279) (729) — (8,498) Recoveries 525 38 89 — 652 Net chargeoffs (5,965) (1,241) (640) — (7,846) Realized cashflows from Residual Income 1,153 - - — 1,153 Provision for credit losses 14,988 6,545 3,617 — 25,150 Allowance for credit losses, end of period $ 37,774 $ 7,200 $ 7,086 $ — $ 52,060 Net investment in leases and loans, before allowance $ 877,199 $ 59,012 $ 84,515 $ 1,410 $ 1,022,136 Three Months Ended March 31, 2019 Commercial Leases and Loans (Dollars in thousands) Equipment Finance Working Capital Loans CVG CRA Total Allowance for credit losses, beginning of period $ 13,531 $ 1,467 $ 1,102 $ — $ 16,100 Charge-offs (4,333) (673) (328) — (5,334) Recoveries 734 19 — — 753 Net charge-offs (3,599) (654) (328) — (4,581) Provision for credit losses 4,043 871 449 — 5,363 Allowance for credit losses, end of period $ 13,975 $ 1,684 $ 1,223 $ — $ 16,882 Net investment in leases and loans, before allowance $ 915,556 $ 43,210 $ 79,830 $ 1,476 $ 1,040,072 __________________ (1) The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changed our accounting policy and estimated allowance, effective January 1, 2020. See further discussion in Note 2, Summary of Significant Accounting Policies, and below. |
Information about delinquent leases and loans in the Company's portfolio | Portfolio by Origination Year as of March 31, 2020 Total 2020 2019 2018 2017 2016 Prior Receivables (Dollars in thousands) Equipment Finance 30-59 $ 179 $ 2,952 $ 1,803 $ 1,368 $ 512 $ 167 $ 6,981 60-89 — 1,428 1,304 767 319 73 3,891 90+ — 2,157 1,629 1,046 387 138 5,357 Total Past Due 179 6,537 4,736 3,181 1,218 378 16,229 Current (1) 110,762 372,522 207,521 114,189 44,511 11,465 860,970 Total 110,941 379,059 212,257 117,370 45,729 11,843 877,199 Working Capital 30-59 — 609 — — — — 609 60-89 — 16 — — — — 16 90+ — 23 26 — — — 49 Total Past Due — 648 26 — — — 674 Current (1) 21,388 35,947 965 38 — — 58,338 Total 21,388 36,595 991 38 — — 59,012 CVG 30-59 — 126 178 106 30 — 440 60-89 — 182 84 49 — — 315 90+ — 276 75 211 31 — 593 Total Past Due — 584 337 366 61 — 1,348 Current (1) 8,755 39,679 19,750 11,054 3,833 96 83,167 Total 8,755 40,263 20,087 11,420 3,894 96 84,515 CRA Total Past Due — — — — — — — Current 1,410 — — — — — 1,410 Total 1,410 — — — — — 1,410 Net investment in leases and loans, before allowance $ 142,494 $ 455,917 $ 233,335 $ 128,828 $ 49,623 $ 11,939 $ 1,022,136 Portfolio by Origination Year as of December 31, 2019 Total 2019 2018 2017 2016 2015 Prior Receivables (Dollars in thousands) Equipment Finance 30-59 $ 1,420 $ 1,755 $ 935 $ 454 $ 169 $ 17 $ 4,750 60-89 1,023 1,055 685 366 80 4 3,213 90+ 947 1,522 1,090 527 163 7 4,256 Total Past Due 3,390 4,332 2,710 1,347 412 28 12,219 Current 424,559 236,068 135,419 55,119 16,461 1,407 869,033 Total 427,949 240,400 138,129 56,466 16,873 1,435 881,252 Working Capital 30-59 566 18 — — — — 584 60-89 16 52 — — — — 68 90+ 203 — — — — — 203 Total Past Due 785 70 — — — — 855 Current 57,706 2,343 38 — — — 60,087 Total 58,491 2,413 38 — — — 60,942 CVG 30-59 50 126 90 99 — — 365 60-89 5 15 188 46 — — 254 90+ — 178 158 53 — — 389 Total Past Due 55 319 436 198 — — 1,008 Current 42,536 22,531 13,442 4,976 130 — 83,615 Total 42,591 22,850 13,878 5,174 130 — 84,623 CRA Total Past Due — — — — — — — Current 1,398 — — — — — 1,398 Total 1,398 — — — — — 1,398 Net investment in leases and loans, before allowance $ 530,429 $ 265,663 $ 152,045 $ 61,640 $ 17,003 $ 1,435 $ 1,028,215 _________________ (1) Current receivables include leases and loans that are in payment deferral status as part of the Company’s COVID-19 modification program. See further discussion above. |
Information about non-accrual leases and loans | March 31, December 31, (Dollars in thousands) 2020 2019 Equipment Finance $ 5,357 $ 4,256 Working Capital Loans 755 946 CVG 593 389 Total Non-Accrual $ 6,705 $ 5,591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule Of Goodwill | (Dollars in thousands) Total Company Balance at December 31, 2019 $ 6,735 Impairment of Goodwill (6,735) Balance at March 31, 2020 $ — |
Schedule of Finite Lived Intangible Assets | (Dollars in thousands) Gross Carrying Accumulated Net Description Useful Life Amount Amortization Value Lender relationships 3 to 10 years $ 1,630 $ 551 $ 1,079 Vendor relationships 11 years 7,290 1,140 6,150 Corporate trade name 7 years 60 28 32 $ 8,980 $ 1,719 $ 7,261 |
Schedule of amortization expense for the next five years | The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) Remainder of 2020 $ 599 2021 798 2022 798 2023 798 2024 790 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets | March 31, December 31, 2020 2019 (Dollars in thousands) Accrued fees receivable $ 3,683 $ 3,509 Prepaid expenses 2,853 2,872 Income taxes receivable (1) 6,877 — Federal Reserve Bank Stock 1,711 1,711 Other 2,341 2,361 $ 17,465 $ 10,453 _______________________ (1) See Note 2 – Summary of Significant Accounting Policies, for discussion of the Provision for income taxes. |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Schedule of maturities of certificates of deposits | Scheduled Maturities (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 387,922 2021 265,743 2022 134,233 2023 66,915 2024 28,046 Thereafter 6,927 Total $ 889,786 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt and Financing Arrangements [Abstract] | |
Schedule of balance of long-term borrowings | March 31, December 31, 2020 2019 (Dollars in thousands) Term securitization 2018-1 $ 62,555 $ 76,563 Unamortized debt issuance costs (362) (472) $ 62,193 $ 76,091 |
Schedule of term note securitization | The term note securitization is summarized below: Outstanding Balance as of Notes Final Original March 31, December 31, Originally Maturity Coupon 2020 2019 Issued Date Rate (Dollars in thousands) 2018 — 1 Class A-1 $ — $ — $ 77,400 July, 2019 2.55 % Class A-2 — 8,013 55,700 October, 2020 3.05 Class A-3 30,915 36,910 36,910 April, 2023 3.36 Class B 10,400 10,400 10,400 May, 2023 3.54 Class C 11,390 11,390 11,390 June, 2023 3.70 Class D 5,470 5,470 5,470 July, 2023 3.99 Class E 4,380 4,380 4,380 May, 2025 5.02 Total Term Note Securitizations $ 62,555 $ 76,563 $ 201,650 3.05 % (1)(2) (1) Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. ( 2 ) The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.62 % over the remaining term of the borrowing. |
Scheduled principal and interest payments on outstanding borrowings | Scheduled principal and interest payments on outstanding borrowings as of March 31, 2020 are as follows: Principal Interest (Dollars in thousands) Period Ending December 31, Remainder of 2020 $ 30,344 $ 1,342 2021 23,629 813 2022 8,582 159 $ 62,555 $ 2,314 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements And Disclosures About Fair Value Of Financial Instruments [Abstract] | |
Schedule of balances measured at fair value on a recurring basis | March 31, 2020 December 31, 2019 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (Dollars in thousands) Assets ABS $ — $ 4,135 $ — $ — $ 4,332 $ — Municipal securities — 2,653 — — 3,129 — Mutual fund 3,692 — — 3,615 — — |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments | March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 211,070 $ 211,070 $ 123,096 $ 123,096 Time deposits with banks 13,664 13,094 12,927 12,970 Restricted interest-earning deposits with banks 6,474 6,474 6,931 6,931 Loans, net of allowance 580,244 558,584 588,688 593,406 Federal Reserve Bank Stock 1,711 1,711 1,711 1,711 Financial Liabilities Deposits $ 941,996 $ 952,958 $ 839,132 $ 846,304 Long-term borrowings 62,193 62,841 76,091 76,781 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of net income and shares used in computing basic and diluted EPS | Three Months Ended March 31, 2020 2019 (Dollars in thousands, except per-share data) Basic EPS Net (loss) income $ (11,821) $ 5,141 Less: net income allocated to participating securities — (72) Net (loss) income allocated to common stock $ (11,821) $ 5,069 Weighted average common shares outstanding 12,014,396 12,337,730 Less: Unvested restricted stock awards considered participating securities (138,249) (172,084) Adjusted weighted average common shares used in computing basic EPS 11,876,147 12,165,646 Basic (loss) earnings per share $ (1.00) $ 0.42 Diluted EPS Net (loss) income allocated to common stock $ (11,821) $ 5,069 Adjusted weighted average common shares used in computing basic EPS 11,876,147 12,165,646 Add: Effect of dilutive stock-based compensation awards — 86,470 Adjusted weighted average common shares used in computing diluted EPS 11,876,147 12,252,116 Diluted (loss) earnings per share $ (1.00) $ 0.41 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity [Abstract] | |
Schedule of Tier 1 leverage ratio, common equity Tier 1 risk-based capital ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio | Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 16.18% $ 194,700 4% $ 48,137 5% $ 60,171 Marlin Business Bank 13.27% $ 139,242 4% $ 41,961 5% $ 52,451 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 18.64% $ 194,700 4.5% $ 47,004 6.5% $ 67,894 Marlin Business Bank 14.86% $ 139,242 4.5% $ 42,163 6.5% $ 60,902 Tier 1 Risk-based Capital Marlin Business Services Corp. 18.64% $ 194,700 6% $ 62,672 8% $ 83,562 Marlin Business Bank 14.86% $ 139,242 6% $ 56,217 8% $ 74,957 Total Risk-based Capital Marlin Business Services Corp. 19.94% $ 208,238 8% $ 83,562 10% $ 104,453 Marlin Business Bank 16.16% $ 151,425 8% $ 74,957 10% $ 93,696 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock Options Activity | A summary of option activity for the three-month period ended March 31, 2020 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2019 135,159 $ 26.79 Granted — — Exercised — — Forfeited (3,929) 27.31 Expired (7,097) 26.36 Outstanding, March 31, 2020 124,133 26.80 |
Schedule of information about the stock options outstanding and exercisable | 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 71,766 4.0 $ 25.75 $ — 71,766 4.0 $ 25.75 — $ 28.25 52,367 5.0 $ 28.25 $ — 35,317 5.0 $ 28.25 $ — 124,133 4.4 $ 26.80 $ — 107,083 4.3 $ 26.57 $ — |
Schedule of activity of non-vested restricted stock | Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2019 143,935 $ 21.88 Granted — 0.00 Vested (11,973) 18.83 Forfeited (550) 25.88 Outstanding at March 31, 2020 131,412 22.14 |
Schedule of restricted stock unit activity | Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2019 257,476 $ 18.00 Granted 95,758 17.55 Forfeited (5,081) 23.99 Converted (13,810) 25.75 Cancelled due to non-achievement of performance condition (30,390) 25.65 Outstanding at March 31, 2020 303,953 16.64 Service-based RSUs Outstanding at December 31, 2019 99,951 $ 23.59 Granted 69,422 20.43 Forfeited (4,480) 23.69 Converted (39,879) 24.30 Outstanding at March 31, 2020 125,014 21.61 |
Schedule of Monte Carlo Valuation Assumptions | Three Months Ended March 31, 2020 2019 Grant date stock price $ 20.43 $ 21.50 Risk-free interest rate 1.40 % 2.16 % Expected volatility 26.18 % 26.68 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | ||
Income tax (benefit) expense | $ (7,434) | $ 1,602 |
Other income tax (benefit) | $ (3,200) | |
Statutory tax rate | 23.90% | 23.90% |
Effective Income Tax Rate Reconciliation, Percent | 38.60% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment in leases and loans | $ 1,022,136 | $ 1,028,215 | $ 1,040,072 | |
Allowance for Credit Losses | (52,060) | (21,695) | $ (16,882) | $ (16,100) |
Total net investment in leases and loans | 970,076 | 1,006,520 | ||
Net deferred income tax liability | 25,677 | 30,828 | ||
Retained earnings | $ 112,704 | 135,112 | ||
Accounting Standards Update 2016-13 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment in leases and loans | 1,028,215 | |||
Allowance for Credit Losses | (33,603) | |||
Total net investment in leases and loans | 994,612 | |||
Net deferred income tax liability | 27,797 | |||
Retained earnings | 126,235 | |||
Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net investment in leases and loans | 0 | |||
Allowance for Credit Losses | (11,908) | |||
Net deferred income tax liability | (3,031) | |||
Retained earnings | $ (8,877) |
Non-Interest Income (Details)
Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Noninterest Income [Abstract] | ||
Insurance premiums written and earned | $ 2,282 | $ 2,132 |
Gain on sale of leases and loans | 2,282 | 3,612 |
Property tax income | 5,504 | 5,643 |
Servicing income | 566 | 287 |
Net gains and (losses) recognized during the period on equity securities | 58 | 43 |
Non-interest income within the scope of other GAAP topics | 10,692 | 11,717 |
Insurance policy fees | 918 | 668 |
Property tax administrative fees on leases | 234 | 268 |
ACH payment fees | 72 | 86 |
Referral fees | 94 | 155 |
Other | 193 | 54 |
Non-interest income from contracts with customers | 1,511 | 1,231 |
Non-interest income | $ 12,203 | $ 12,948 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available-for-sale [Line Items] | ||
Investment securities | $ 10,480 | $ 11,076 |
Mutual Fund [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Investment securities | 3,692 | 3,615 |
Asset Backed Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Investment securities | 4,135 | 4,332 |
Municipal Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Investment securities | $ 2,653 | $ 3,129 |
Investment Securities - Schedul
Investment Securities - Schedule of changes in fair value of Equity securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||
Net gains and (losses) recognized during the period on equity securities | $ 58 | $ 43 |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 58 | $ 43 |
Investment Securities - Sched_2
Investment Securities - Schedule of available for sale investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost | $ 6,738 | |
Estimated Fair Value | 10,480 | $ 11,076 |
Debt Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost | 6,738 | 7,360 |
Gross Unrealized Gains | 75 | 104 |
Gross Unrealized Loss | (25) | (3) |
Estimated Fair Value | 6,788 | 7,461 |
ABS [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost | 4,074 | 4,302 |
Gross Unrealized Gains | 61 | 33 |
Gross Unrealized Loss | 0 | (3) |
Estimated Fair Value | 4,135 | 4,332 |
Municipal Bonds [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost | 2,664 | 3,058 |
Gross Unrealized Gains | 14 | 71 |
Gross Unrealized Loss | (25) | 0 |
Estimated Fair Value | $ 2,653 | $ 3,129 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Loss and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than 12 months | $ (25) | $ 0 |
Fair Value, Less than 12 months | 1,834 | 0 |
Gross Unrealized Losses, 12 months or longer | 0 | (3) |
Fair Value, 12 months or longer | 0 | 430 |
Gross Unrealized Losses, Total | (25) | (3) |
Fair Value, Total | 1,834 | 430 |
ABS [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than 12 months | 0 | |
Fair Value, Less than 12 months | 0 | |
Gross Unrealized Losses, 12 months or longer | (3) | |
Fair Value, 12 months or longer | 430 | |
Gross Unrealized Losses, Total | (3) | |
Fair Value, Total | $ 430 | |
Municipal Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than 12 months | (25) | |
Fair Value, Less than 12 months | 1,834 | |
Gross Unrealized Losses, 12 months or longer | 0 | |
Fair Value, 12 months or longer | 0 | |
Gross Unrealized Losses, Total | (25) | |
Fair Value, Total | $ 1,834 |
Investment Securities - Contrac
Investment Securities - Contractual Maturity of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost, 1 year or less | $ 15 | |
Amortized Cost, Over 1 to 5 Years | 2,461 | |
Amortized Cost, Over 5 to 10 Years | 2,403 | |
Amortized Cost, Over 10 Years | 1,859 | |
Amortized Cost Basis, Total | 6,738 | |
Estimated fair value, 1 Year or Less | 15 | |
Estimated fair value, Over 1 to 5 Years | 2,501 | |
Estimated fair value, Over 5 to 10 Years | 2,413 | |
Estimated fair value, Over 10 Years | 1,859 | |
Estimated Fair Value, Total | $ 6,788 | |
Weighted-average yield, GAAP basis, 1 Year or Less | 4.75% | |
Weighted-average yield, GAAP basis, Over 1 to 5 years | 2.02% | |
Weighted-average yield, GAAP basis, Over 5 to10 Years | 1.81% | |
Weighted-average yield, GAAP basis, Over 10 Years | 2.58% | |
Weighted-average yield, GAAP basis, Total | 2.42% | |
Debt Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized Cost Basis, Total | $ 6,738 | $ 7,360 |
ABS [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost, 1 year or less | 0 | |
Amortized Cost, Over 1 to 5 Years | 2,427 | |
Amortized Cost, Over 5 to 10 Years | 1,647 | |
Amortized Cost, Over 10 Years | 0 | |
Amortized Cost Basis, Total | 4,074 | 4,302 |
Municipal Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Amortized cost, 1 year or less | 15 | |
Amortized Cost, Over 1 to 5 Years | 34 | |
Amortized Cost, Over 5 to 10 Years | 756 | |
Amortized Cost, Over 10 Years | 1,859 | |
Amortized Cost Basis, Total | $ 2,664 | $ 3,058 |
Net Investment in Leases and _3
Net Investment in Leases and Loans - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Net Investment in Leases and Loans [Abstract] | ||
Initial direct costs and origination costs | $ 19,500 | $ 20,500 |
Servicing liability | 2,300 | 2,500 |
Portfolio of leases and loans serviced for others | 328,000 | 340,000 |
(Losses) from recourse obligations | (1,200) | (400) |
Net investments [Line Items] | ||
Estimated Residual Value of Equipment | 29,464 | 29,342 |
Asset Backed Securities [Member] | ||
Net investments [Line Items] | ||
Net investment in leases are pledged as collateral | 62,000 | |
Secured borrowing capacity at the Federal Reserve Discount Window [Member] | ||
Net investments [Line Items] | ||
Net investment in leases are pledged as collateral | 55,100 | |
Copier Product [Member] | ||
Net investments [Line Items] | ||
Estimated Residual Value of Equipment | $ 23,500 | $ 23,400 |
Net Investment in Leases and _4
Net Investment in Leases and Loans - Net investment in leases and loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Net Investment in Leases and Loans [Abstract] | ||||
Minimum lease payments receivable | $ 434,841 | $ 457,602 | ||
Estimated Residual Value of Equipment | 29,464 | 29,342 | ||
Unearned Lease Income, Net Of Initial Direct Costs and Fees Deferred | (56,645) | (59,746) | ||
Security Deposits | (512) | (590) | ||
Total leases | 407,148 | 426,608 | ||
Working Capital Loans | 59,012 | 60,942 | ||
CRA | 1,410 | 1,398 | ||
Equipment loans | 481,000 | 464,655 | ||
CVG | 73,566 | 74,612 | ||
Total commercial loans | 614,988 | 601,607 | ||
Net investment in leases and loans, excluding allowance for credit losses | 1,022,136 | 1,028,215 | $ 1,040,072 | |
Allowance for Credit Losses | (52,060) | (21,695) | $ (16,882) | $ (16,100) |
Total net investment in leases and loans | $ 970,076 | $ 1,006,520 |
Net Investment in Leases and _5
Net Investment in Leases and Loans - Maturities of lease receivables under lease contracts and the amortization of unearned lease income (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
Remaining part of 2020 | $ 132,867 | |
2021 | 137,907 | |
2022 | 90,158 | |
2023 | 49,519 | |
2024 | 20,660 | |
Thereafter | 3,730 | |
Minimum Lease Payments Receivable | 434,841 | $ 457,602 |
Future Scheduled Income Amortization [Abstract] | ||
Remaing part of 2020 | 22,664 | |
2021 | 18,737 | |
2022 | 9,728 | |
2023 | 4,107 | |
2024 | 1,140 | |
Thereafter | 269 | |
Net income amortization | $ 56,645 | $ 59,746 |
Net Investment in Leases and _6
Net Investment in Leases and Loans - Summary of information related to portfolio sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales of leases and loans | $ 22,929 | $ 52,867 |
Gain on sale of leases and loans | $ 2,282 | $ 3,612 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narratives (Details) | Apr. 28, 2020USD ($) | Mar. 31, 2020USD ($)Contracts | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) |
Allowance For Credit Losses [Abstract] | ||||
Finance Receivables 90 Days or More Past Due and Still Accruing | $ 0 | |||
Financing Receivable, Troubled Debt Restructuring | 0 | $ 0 | ||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 25,150,000 | $ 5,363,000 | ||
Net investment in leases and loans | $ 970,076,000 | $ 1,006,520,000 | ||
Payment Deferral Due to Covid-19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Number of contracts with payment deferral modifications | Contracts | 520 | |||
Net investment in leases and loans | $ 19,500,000 | |||
Net investment in leases and loans increase (decrease) | $ 134,500,000 | |||
Equipment Finance [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 14,988,000 | 4,043,000 | ||
Equipment Finance [Member] | Payment Deferral Due to Covid-19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Net investment in leases and loans | 8,500,000 | |||
Equipment Finance [Member] | Adjustments related to Covid 19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 10,800,000 | |||
Working capital Loans [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 6,545,000 | 871,000 | ||
Working capital Loans [Member] | Payment Deferral Due to Covid-19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Net investment in leases and loans | 7,000,000 | |||
Working capital Loans [Member] | Adjustments related to Covid 19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 5,500,000 | |||
CVG [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 3,617,000 | 449,000 | ||
CVG [Member] | Payment Deferral Due to Covid-19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Net investment in leases and loans | 4,000,000 | |||
CVG [Member] | Adjustments related to Covid 19 [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 2,900,000 | |||
CRA [Member] | ||||
Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ 0 | $ 0 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | $ 21,695 | $ 16,100 | |
Charge-offs | (8,498) | (5,334) | |
Recoveries | 652 | 753 | |
Net charge-offs | (7,846) | (4,581) | |
Realized cashflows from Residual Income | 1,153 | ||
Provision for credit losses | 25,150 | 5,363 | |
Allowance for credit losses, end of period | 52,060 | 16,882 | |
Net investment in leases and loans, before allowance | 1,022,136 | 1,040,072 | $ 1,028,215 |
Accounting Standards Update 2016-13 [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 33,603 | ||
Net investment in leases and loans, before allowance | 1,028,215 | ||
Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 11,908 | ||
Net investment in leases and loans, before allowance | $ 0 | ||
Equipment Finance [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 18,334 | 13,531 | |
Charge-offs | (6,490) | (4,333) | |
Recoveries | 525 | 734 | |
Net charge-offs | (5,965) | (3,599) | |
Realized cashflows from Residual Income | 1,153 | ||
Provision for credit losses | 14,988 | 4,043 | |
Allowance for credit losses, end of period | 37,774 | 13,975 | |
Net investment in leases and loans, before allowance | 877,199 | 915,556 | |
Equipment Finance [Member] | Accounting Standards Update 2016-13 [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 27,598 | ||
Equipment Finance [Member] | Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 9,264 | ||
Working capital Loans [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 1,899 | 1,467 | |
Charge-offs | (1,279) | (673) | |
Recoveries | 38 | 19 | |
Net charge-offs | (1,241) | (654) | |
Realized cashflows from Residual Income | 0 | ||
Provision for credit losses | 6,545 | 871 | |
Allowance for credit losses, end of period | 7,200 | 1,684 | |
Net investment in leases and loans, before allowance | 59,012 | 43,210 | |
Working capital Loans [Member] | Accounting Standards Update 2016-13 [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 1,896 | ||
Working capital Loans [Member] | Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | (3) | ||
CVG [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 1,462 | 1,102 | |
Charge-offs | (729) | (328) | |
Recoveries | 89 | 0 | |
Net charge-offs | (640) | (328) | |
Realized cashflows from Residual Income | 0 | ||
Provision for credit losses | 3,617 | 449 | |
Allowance for credit losses, end of period | 7,086 | 1,223 | |
Net investment in leases and loans, before allowance | 84,515 | 79,830 | |
CVG [Member] | Accounting Standards Update 2016-13 [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 4,109 | ||
CVG [Member] | Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 2,647 | ||
CRA [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 0 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Realized cashflows from Residual Income | 0 | ||
Provision for credit losses | 0 | 0 | |
Allowance for credit losses, end of period | 0 | 0 | |
Net investment in leases and loans, before allowance | 1,410 | $ 1,476 | |
CRA [Member] | Accounting Standards Update 2016-13 [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | 0 | ||
CRA [Member] | Accounting Standards Update 2016-13 [Member] | Adoption Impact [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Allowance for credit losses, beginning of period | $ 0 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Portfolio by Origination Year- Current year (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amount of portfolio [Line Items] | ||
2020 | $ 142,494 | $ 530,429 |
2019 | 455,917 | 265,663 |
2018 | 233,335 | 152,045 |
2017 | 128,828 | 61,640 |
2016 | 49,623 | 17,003 |
Prior | 11,939 | 1,435 |
Total Receivables | 1,022,136 | 1,028,215 |
Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 110,941 | 427,949 |
2019 | 379,059 | 240,400 |
2018 | 212,257 | 138,129 |
2017 | 117,370 | 56,466 |
2016 | 45,729 | 16,873 |
Prior | 11,843 | 1,435 |
Total Receivables | 877,199 | 881,252 |
Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 21,388 | 58,491 |
2019 | 36,595 | 2,413 |
2018 | 991 | 38 |
2017 | 38 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 59,012 | 60,942 |
CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 8,755 | 42,591 |
2019 | 40,263 | 22,850 |
2018 | 20,087 | 13,878 |
2017 | 11,420 | 5,174 |
2016 | 3,894 | 130 |
Prior | 96 | 0 |
Total Receivables | 84,515 | 84,623 |
CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 1,410 | 1,398 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 1,410 | 1,398 |
30-59 [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 179 | 1,420 |
2019 | 2,952 | 1,755 |
2018 | 1,803 | 935 |
2017 | 1,368 | 454 |
2016 | 512 | 169 |
Prior | 167 | 17 |
Total Receivables | 6,981 | 4,750 |
30-59 [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 566 |
2019 | 609 | 18 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 609 | 584 |
30-59 [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 50 |
2019 | 126 | 126 |
2018 | 178 | 90 |
2017 | 106 | 99 |
2016 | 30 | 0 |
Prior | 0 | 0 |
Total Receivables | 440 | 365 |
60-89 [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 1,023 |
2019 | 1,428 | 1,055 |
2018 | 1,304 | 685 |
2017 | 767 | 366 |
2016 | 319 | 80 |
Prior | 73 | 4 |
Total Receivables | 3,891 | 3,213 |
60-89 [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 16 |
2019 | 16 | 52 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 16 | 68 |
60-89 [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 5 |
2019 | 182 | 15 |
2018 | 84 | 188 |
2017 | 49 | 46 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 315 | 254 |
90+ [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 947 |
2019 | 2,157 | 1,522 |
2018 | 1,629 | 1,090 |
2017 | 1,046 | 527 |
2016 | 387 | 163 |
Prior | 138 | 7 |
Total Receivables | 5,357 | 4,256 |
90+ [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 203 |
2019 | 23 | 0 |
2018 | 26 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 49 | 203 |
90+ [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 0 |
2019 | 276 | 178 |
2018 | 75 | 158 |
2017 | 211 | 53 |
2016 | 31 | 0 |
Prior | 0 | 0 |
Total Receivables | 593 | 389 |
Total Past Due [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 179 | 3,390 |
2019 | 6,537 | 4,332 |
2018 | 4,736 | 2,710 |
2017 | 3,181 | 1,347 |
2016 | 1,218 | 412 |
Prior | 378 | 28 |
Total Receivables | 16,229 | 12,219 |
Total Past Due [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 785 |
2019 | 648 | 70 |
2018 | 26 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 674 | 855 |
Total Past Due [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 55 |
2019 | 584 | 319 |
2018 | 337 | 436 |
2017 | 366 | 198 |
2016 | 61 | 0 |
Prior | 0 | 0 |
Total Receivables | 1,348 | 1,008 |
Total Past Due [Member] | CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 0 | 0 |
Current [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 110,762 | 424,559 |
2019 | 372,522 | 236,068 |
2018 | 207,521 | 135,419 |
2017 | 114,189 | 55,119 |
2016 | 44,511 | 16,461 |
Prior | 11,465 | 1,407 |
Total Receivables | 860,970 | 869,033 |
Current [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 21,388 | 57,706 |
2019 | 35,947 | 2,343 |
2018 | 965 | 38 |
2017 | 38 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 58,338 | 60,087 |
Current [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 8,755 | 42,536 |
2019 | 39,679 | 22,531 |
2018 | 19,750 | 13,442 |
2017 | 11,054 | 4,976 |
2016 | 3,833 | 130 |
Prior | 96 | 0 |
Total Receivables | 83,167 | 83,615 |
Current [Member] | CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2020 | 1,410 | 1,398 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | $ 1,410 | $ 1,398 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Portfolio by Origination Year - Previous year (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amount of portfolio [Line Items] | ||
2019 | $ 142,494 | $ 530,429 |
2018 | 455,917 | 265,663 |
2017 | 233,335 | 152,045 |
2016 | 128,828 | 61,640 |
2015 | 49,623 | 17,003 |
Prior | 11,939 | 1,435 |
Total Receivables | 1,022,136 | 1,028,215 |
Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 110,941 | 427,949 |
2018 | 379,059 | 240,400 |
2017 | 212,257 | 138,129 |
2016 | 117,370 | 56,466 |
2015 | 45,729 | 16,873 |
Prior | 11,843 | 1,435 |
Total Receivables | 877,199 | 881,252 |
Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 21,388 | 58,491 |
2018 | 36,595 | 2,413 |
2017 | 991 | 38 |
2016 | 38 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 59,012 | 60,942 |
CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 8,755 | 42,591 |
2018 | 40,263 | 22,850 |
2017 | 20,087 | 13,878 |
2016 | 11,420 | 5,174 |
2015 | 3,894 | 130 |
Prior | 96 | 0 |
Total Receivables | 84,515 | 84,623 |
CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 1,410 | 1,398 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 1,410 | 1,398 |
30-59 [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 179 | 1,420 |
2018 | 2,952 | 1,755 |
2017 | 1,803 | 935 |
2016 | 1,368 | 454 |
2015 | 512 | 169 |
Prior | 167 | 17 |
Total Receivables | 6,981 | 4,750 |
30-59 [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 566 |
2018 | 609 | 18 |
2017 | 0 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 609 | 584 |
30-59 [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 50 |
2018 | 126 | 126 |
2017 | 178 | 90 |
2016 | 106 | 99 |
2015 | 30 | 0 |
Prior | 0 | 0 |
Total Receivables | 440 | 365 |
60-89 [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 1,023 |
2018 | 1,428 | 1,055 |
2017 | 1,304 | 685 |
2016 | 767 | 366 |
2015 | 319 | 80 |
Prior | 73 | 4 |
Total Receivables | 3,891 | 3,213 |
60-89 [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 16 |
2018 | 16 | 52 |
2017 | 0 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 16 | 68 |
60-89 [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 5 |
2018 | 182 | 15 |
2017 | 84 | 188 |
2016 | 49 | 46 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 315 | 254 |
90+ [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 947 |
2018 | 2,157 | 1,522 |
2017 | 1,629 | 1,090 |
2016 | 1,046 | 527 |
2015 | 387 | 163 |
Prior | 138 | 7 |
Total Receivables | 5,357 | 4,256 |
90+ [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 203 |
2018 | 23 | 0 |
2017 | 26 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 49 | 203 |
90+ [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 0 |
2018 | 276 | 178 |
2017 | 75 | 158 |
2016 | 211 | 53 |
2015 | 31 | 0 |
Prior | 0 | 0 |
Total Receivables | 593 | 389 |
Total Past Due [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 179 | 3,390 |
2018 | 6,537 | 4,332 |
2017 | 4,736 | 2,710 |
2016 | 3,181 | 1,347 |
2015 | 1,218 | 412 |
Prior | 378 | 28 |
Total Receivables | 16,229 | 12,219 |
Total Past Due [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 785 |
2018 | 648 | 70 |
2017 | 26 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 674 | 855 |
Total Past Due [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 55 |
2018 | 584 | 319 |
2017 | 337 | 436 |
2016 | 366 | 198 |
2015 | 61 | 0 |
Prior | 0 | 0 |
Total Receivables | 1,348 | 1,008 |
Total Past Due [Member] | CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 0 | 0 |
Current [Member] | Equipment Finance [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 110,762 | 424,559 |
2018 | 372,522 | 236,068 |
2017 | 207,521 | 135,419 |
2016 | 114,189 | 55,119 |
2015 | 44,511 | 16,461 |
Prior | 11,465 | 1,407 |
Total Receivables | 860,970 | 869,033 |
Current [Member] | Working capital Loans [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 21,388 | 57,706 |
2018 | 35,947 | 2,343 |
2017 | 965 | 38 |
2016 | 38 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | 58,338 | 60,087 |
Current [Member] | CVG [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 8,755 | 42,536 |
2018 | 39,679 | 22,531 |
2017 | 19,750 | 13,442 |
2016 | 11,054 | 4,976 |
2015 | 3,833 | 130 |
Prior | 96 | 0 |
Total Receivables | 83,167 | 83,615 |
Current [Member] | CRA [Member] | ||
Amount of portfolio [Line Items] | ||
2019 | 1,410 | 1,398 |
2018 | 0 | 0 |
2017 | 0 | 0 |
2016 | 0 | 0 |
2015 | 0 | 0 |
Prior | 0 | 0 |
Total Receivables | $ 1,410 | $ 1,398 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Non-accrual leases and loans in the Company's portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual leases and loans, end of period | $ 6,705 | $ 5,591 |
Equipment Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual leases and loans, end of period | 5,357 | 4,256 |
Working capital Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual leases and loans, end of period | 755 | 946 |
CVG [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual leases and loans, end of period | $ 593 | $ 389 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 0 | $ 6,735 | |||
Amortization of Intangible Assets | 200 | $ 200 | |||
Goodwill Impairment Loss | 6,735 | 0 | |||
Impairment Of Intangible Assets, Finite-lived | $ 0 | $ 0 | |||
HKF [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets Acquired | $ 1,300 | ||||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 8 years 8 months 12 days | ||||
Goodwill | $ 1,200 | ||||
FFR [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets Acquired | $ 7,600 | $ 7,200 | |||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 10 years 9 months 18 days | ||||
Goodwill | $ 5,500 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Changes In Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | ||
Goodwill, Beginning Balance | $ 6,735 | |
Impairment of Goodwill | (6,735) | $ 0 |
Goodwill, Ending Balance | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 8,980 |
Accumulated Amortization | 1,719 |
Net Value | 7,261 |
Lender Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 1,630 |
Accumulated Amortization | 551 |
Net Value | $ 1,079 |
Lender Relationships [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Lender Relationships [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 10 years |
Vendor Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 11 years |
Gross Carrying Amount | $ 7,290 |
Accumulated Amortization | 1,140 |
Net Value | $ 6,150 |
Corporate Trade Name [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 7 years |
Gross Carrying Amount | $ 60 |
Accumulated Amortization | 28 |
Net Value | $ 32 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Amortization expense for the next five years y [Abstract] | |
Remainder of 2020 | $ 599 |
2021 | 798 |
2022 | 798 |
2023 | 798 |
2024 | $ 790 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Accrued fees receivable | $ 3,683 | $ 3,509 |
Prepaid expenses | 2,853 | 2,872 |
Income taxes receivable | 6,877 | 0 |
Federal Reserve Bank Stock | 1,711 | 1,711 |
Other | 2,341 | 2,361 |
Other assets, total | $ 17,465 | $ 10,453 |
Deposits (Details)
Deposits (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Contractual Maturities of Time Deposits [Abstract] | ||
Remainder of 2020 | $ 387,922,000 | |
2021 | 265,743,000 | |
2022 | 134,233,000 | |
2023 | 66,915,000 | |
2024 | 28,046,000 | |
Thereafter | 6,927,000 | |
Total | 889,786,000 | $ 839,132,000 |
Cash and Cash Equivalents [Line Items] | ||
Money market deposit accounts | 51,600,000 | |
Cash FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of all deposit liabilities outstanding | 2.15% | |
Remainder of 2020 | $ 387,922,000 | |
2021 | 265,743,000 | |
2022 | 134,233,000 | |
2023 | 66,915,000 | |
2024 | 28,046,000 | |
Thereafter | 6,927,000 | |
Total | 889,786,000 | $ 839,132,000 |
MBB Certificate of Deposit [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maximum time deposit liability denomination | 250,000,000 | |
MMDA [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maximum time deposit liability denomination | $ 250,000,000 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narratives (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Jul. 27, 2018 | |
Debt and Financing Arrangements [Abstract] | |||
Term note securitization 2018-1 | $ 62,555,000 | $ 76,563,000 | $ 201,650,000 |
Debt collateralized | 68,500,000 | ||
Debt instrument collateralized by restricted deposits | $ 6,500,000 | ||
Weighted average coupon rate | 3.62% | ||
Revolving line of credit [Member] | |||
Debt Instrument Terms [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||
Final maturity date | Nov. 20, 2020 | ||
Line of credit | $ 0 | $ 0 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Long-term borrowings (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Jul. 27, 2018 |
Variable Interest Entity [Line Items] | |||
Term note securitization 2018-1 | $ 62,555,000 | $ 76,563,000 | $ 201,650,000 |
Unamortized debt issuance costs | (362,000) | (472,000) | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Liabilities noncurrent | $ 62,193,000 | $ 76,091,000 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Term note securitization (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jul. 27, 2018 | ||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 62,555 | $ 76,563 | $ 201,650 | |
Original coupon rate | [1],[2] | 3.05% | ||
Weighted average coupon rate | 3.62% | |||
Class A-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 0 | 0 | 77,400 | |
Final maturity date | Jul. 31, 2019 | |||
Original coupon rate | 2.55% | |||
Class A-2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 0 | 8,013 | 55,700 | |
Final maturity date | Oct. 31, 2020 | |||
Original coupon rate | 3.05% | |||
Class A-3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 30,915 | 36,910 | 36,910 | |
Final maturity date | Apr. 30, 2023 | |||
Original coupon rate | 3.36% | |||
Class B [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 10,400 | 10,400 | 10,400 | |
Final maturity date | May 31, 2023 | |||
Original coupon rate | 3.54% | |||
Class C [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 11,390 | 11,390 | 11,390 | |
Final maturity date | Jun. 30, 2023 | |||
Original coupon rate | 3.70% | |||
Class D [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 5,470 | 5,470 | 5,470 | |
Final maturity date | Jul. 31, 2023 | |||
Original coupon rate | 3.99% | |||
Class E [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 4,380 | $ 4,380 | $ 4,380 | |
Final maturity date | May 31, 2025 | |||
Original coupon rate | 5.02% | |||
[1] | Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. | |||
[2] | The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.62 % over the remaining term of the borrowing. |
Debt and Financing Arrangemen_6
Debt and Financing Arrangements - Scheduled principal and interest payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jul. 27, 2018 |
Scheduled principal and interest payments on outstanding borrowings [Abstract] | |||
Principal, Remainder of 2020 | $ 30,344 | ||
Principal, 2021 | 23,629 | ||
Principal, 2022 | 8,582 | ||
Long-term borrowings, total | 62,555 | $ 76,563 | $ 201,650 |
Interest, Remainder of 2020 | 1,342 | ||
Interest, 2021 | 813 | ||
Interest, 2022 | 159 | ||
Total interest portion on long-term debt | $ 2,314 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total cash and cash equivalents | $ 211,070 | $ 140,952 | $ 123,096 |
Goodwill Impairment Loss | $ 6,735 | $ 0 |
Fair Value Measurements and D_4
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 10,480 | $ 11,076 |
Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,135 | 4,332 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,653 | 3,129 |
Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,692 | 3,615 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Level 1 [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 | 0 | 0 |
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 | 3,692 | 3,615 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,135 | 4,332 |
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 | 2,653 | 3,129 |
Level 2 [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 | 0 | 0 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Level 3 [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 | 0 | 0 |
Level 3 [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 | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments - Carrying amount and estimated fair value (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Jul. 27, 2018 |
Assets, Fair Value Disclosure [Abstract] | ||||
Cash and Cash Equivalents | $ 211,070,000 | $ 123,096,000 | $ 140,952,000 | |
Time deposits with banks | 13,664,000 | 12,927,000 | ||
Restricted interest-earning deposits with banks | 6,474,000 | 6,931,000 | $ 13,174,000 | |
Loans, net of allowance | 614,988,000 | 601,607,000 | ||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 941,996,000 | 839,132,000 | ||
Long-term borrowings | 62,555,000 | 76,563,000 | $ 201,650,000 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash and Cash Equivalents | 211,070,000 | 123,096,000 | ||
Time deposits with banks | 13,664,000 | 12,927,000 | ||
Restricted interest-earning deposits with banks | 6,474,000 | 6,931,000 | ||
Loans, net of allowance | 580,244,000 | 588,688,000 | ||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 941,996,000 | 839,132,000 | ||
Long-term borrowings | 62,193,000 | 76,091,000 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash and Cash Equivalents | 211,070,000 | 123,096,000 | ||
Time deposits with banks | 13,094,000 | 12,970,000 | ||
Restricted interest-earning deposits with banks | 6,474,000 | 6,931,000 | ||
Loans, net of allowance | 558,584,000 | 593,406,000 | ||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 952,958,000 | 846,304,000 | ||
Long-term borrowings | $ 62,841,000 | $ 76,781,000 |
Earnings Per Common Share - EPS
Earnings Per Common Share - EPS Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share, Basic [Abstract] | ||
Net (loss) income | $ (11,821) | $ 5,141 |
Less: net income allocated to participating securities | 0 | (72) |
Net (loss) income allocated to common stock | $ (11,821) | $ 5,069 |
Weighted average common shares outstanding | 12,014,396 | 12,337,730 |
Less: Unvested restricted stock awards considered participating securities | (138,249) | (172,084) |
Adjusted weighted average common shares used in computing basic EPS | 11,876,147 | 12,165,646 |
Basic (loss) earnings per share | $ (1) | $ 0.42 |
Earnings Per Share, Diluted [Abstract] | ||
Net (loss) income allocated to common stock | $ (11,821) | $ 5,069 |
Adjusted weighted average common shares used in computing basic EPS | 11,876,147 | 12,165,646 |
Add: Effect of dilutive stock-based compensation awards | 0 | 86,470 |
Adjusted weighted average common shares used in computing diluted EPS | 11,876,147 | 12,252,116 |
Diluted (loss) earnings per share | $ (1) | $ 0.41 |
Antidilutive securities excluded from computation of earnings per share amount | 359,035 | 188,583 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory Capital Requirements Miscellaneous Information [Abstract] | ||||
Percentage of transitional amounts for measurment of estimated allowance year one | 25.00% | |||
Percentage of transitional amounts for measurment of estimated allowance next two years | 25.00% | |||
Percentage of transitional amounts for measurment of estimated allowance during year three | 75.00% | |||
Marlin Business Services Corp. [Member] | ||||
Regulatory Capital Requirements Miscellaneous Information [Abstract] | ||||
Total stockholders equity (regulatory) | $ 194,700 | |||
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% | |||
Total Risk Based Capital to Risk Weighted Assets | 19.94% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | |||
Total Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||
Marlin Business Bank [Member] | ||||
Regulatory Capital Requirements Miscellaneous Information [Abstract] | ||||
Total stockholders equity (regulatory) | $ 139,242 | |||
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% | |||
FDIC Agreement Capital Required To Be Well Capitalized To Risk Weighted Assets | 15.00% | |||
Total Risk Based Capital to Risk Weighted Assets | 16.16% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | |||
Total Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||
New Capital Conservation Buffer | 2.50% | 1.875% | ||
2014 Stock Repurchase Plan [Member] | ||||
Stock Repurchase [Abstract] | ||||
Stock Repurchased During Period, Average Cost Per Share | $ 13.38 | $ 22.74 | ||
Stock Repurchased During Period, Shares | 21,123 | 18,910 | ||
2019 Stock Repurchase Plan [Member] | ||||
Stock Repurchase [Abstract] | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 4,700 | |||
Stock Repurchased During Period, Average Cost Per Share | $ 16.09 | $ 23.86 | ||
Stock Repurchased During Period, Shares | 264,470 | 29,947 |
Stockholders' Equity - Regulato
Stockholders' Equity - Regulatory Capital Ratios (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Marlin Business Services Corp. [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Tier One Leverage Capital | $ 194,700 |
Tier One Leverage Capital Required for Capital Adequacy | 48,137 |
Tier One Leverage Capital Required to be Well Capitalized | 60,171 |
Common Equity Tier One Risk Based Capital | 194,700 |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 47,004 |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 67,894 |
Tier One Risk Based Capital | 194,700 |
Tier One Risk Based Capital Required for Capital Adequacy | 62,672 |
Tier One Risk Based Capital Required to be Well Capitalized | 83,562 |
Total Risk Based Capital | 208,238 |
Total Risk Based Capital Required for Capital Adequacy | 83,562 |
Total Risk Based Capital Required to be Well Capitalized | $ 104,453 |
Tier One Leverage Capital to Average Assets | 16.18% |
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 | 18.64% |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% |
Tier One Risk Based Capital to Risk Weighted Assets | 18.64% |
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 | 19.94% |
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% |
Marlin Business Bank [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Tier One Leverage Capital | $ 139,242 |
Tier One Leverage Capital Required for Capital Adequacy | 41,961 |
Tier One Leverage Capital Required to be Well Capitalized | 52,451 |
Common Equity Tier One Risk Based Capital | 139,242 |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 42,163 |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 60,902 |
Tier One Risk Based Capital | 139,242 |
Tier One Risk Based Capital Required for Capital Adequacy | 56,217 |
Tier One Risk Based Capital Required to be Well Capitalized | 74,957 |
Total Risk Based Capital | 151,425 |
Total Risk Based Capital Required for Capital Adequacy | 74,957 |
Total Risk Based Capital Required to be Well Capitalized | $ 93,696 |
Tier One Leverage Capital to Average Assets | 13.27% |
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 | 14.86% |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% |
Tier One Risk Based Capital to Risk Weighted Assets | 14.86% |
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 | 16.16% |
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% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based Compensation Arrangements [Line Items] | ||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 826,036 | |
Equity Compensation Plan, Number of Shares Available for Grant | 573,981 | |
Number of Shares, Stock Options Granted | 0 | |
Stock-based compensation recognized | $ 518 | $ 861 |
Stock Options Exercised, Number of Shares | 0 | 0 |
2019 Plan [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 826,036 | |
Equity Compensation Plan, Number of Shares Available for Grant | 573,981 | |
Stock-based compensation recognized | $ 500 | $ 900 |
Excess tax benefits from stock-based payment arrangements | 400 | 100 |
Stock Options [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based compensation recognized | $ 100 | $ 100 |
Stock Options Exercised, Number of Shares | 0 | 0 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 100 | |
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 1 year | |
Stock-based Awards, Vesting Period in Years | 7 years | |
Common Stock Closing Price Per Share | $ 11.17 | |
Stock Options [Member] | Director [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 1 year | |
Stock Options [Member] | Minimum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 3 years | |
Stock Options [Member] | Maximum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 4 years | |
Restricted Stock [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based compensation recognized | $ 100 | $ 300 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 1,300 | |
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 4 years 3 months 18 days | |
Stock-based Awards, Accelerated Vesting Period in Years | 3 years | |
Stock-based Awards Other Than Options, Subject to Performance Acceleration, Grants in Period | 0 | |
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | |
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | 100 | |
Stock-based Compensation Expense Due to Performance Acceleration | $ 0 | 100 |
Stock-based Awards Other than Options, Vested in Period, Total Fair Value | 200 | 700 |
Fair value of stock converted to shares of common stock | $ 600 | 600 |
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 | 7 years | |
Restricted Stock [Member] | Maximum [Member] | Director [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 7 years | |
Performance-Based and Market-Based RSUs [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based compensation recognized | $ 300 | $ 500 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 4,700 | |
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 1 year 10 months 24 days | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Incremental Cost at Maximum Performance | $ 5,000 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition of Incremental Cost at Maximum Performance in Years | 2 years 3 months 18 days | |
Stock-based Awards, Vesting Period in Years | 4 years | |
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 514,957 | |
Share-based Awards, Grants in Period, Weighted Average Grant Date Fair Value Per Share | $ 12.9 | $ 12.91 |
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 3,100 | $ 3,400 |
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 182,181 | |
Performance-Based and Market-Based RSUs [Member] | Minimum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 3 years | |
Performance-Based and Market-Based RSUs [Member] | Maximum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 4 years | |
Market Based RSUs [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | 0 |
Market Based RSUs [Member] | Minimum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 1 year | |
Market Based RSUs [Member] | Maximum [Member] | ||
Stock-based Compensation Arrangements [Line Items] | ||
Stock-based Awards, Vesting Period in Years | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | ||
Number of Shares Outstanding, Beginning of Period | 135,159 | |
Number of Shares, Stock Options Granted | 0 | |
Number of Shares, Stock Options Exercised | 0 | 0 |
Number of Shares, Forfeited | (3,929) | |
Number of Shares, Expired | (7,097) | |
Number of Shares Outstanding, End of Period | 124,133 | |
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ 26.79 | |
Weighted Average Exercise Price Per Share, Granted | 0 | |
Weighted Average Exercise Price Per Share, Exercised | 0 | |
Weighted Average Exercise Price Per Share, Forfeitures | 27.31 | |
Weighted Average Exercise Price Per Share, Expired | 26.36 | |
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ 26.8 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options Outstanding and Exercisable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 124,133 | 135,159 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 5 months | |
Options Outstanding, Weighted Average Exercise Price | $ 26.8 | $ 26.79 |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 107,083 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 4 years 4 months | |
Options Exercisable, Weighted Average Exercise Price | $ 26.57 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |
$25.75 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 25.75 | |
Options Outstanding and Exercisable, Upper Price in Range Category | $ 25.75 | |
Options Outstanding, Number of Shares | 71,766 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years | |
Options Outstanding, Weighted Average Exercise Price | $ 25.75 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 71,766 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 4 years | |
Options Exercisable, Weighted Average Exercise Price | $ 25.75 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |
$28.25 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 28.25 | |
Options Outstanding and Exercisable, Upper Price in Range Category | $ 28.25 | |
Options Outstanding, Number of Shares | 52,367 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 5 years | |
Options Outstanding, Weighted Average Exercise Price | $ 28.25 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 35,317 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 5 years | |
Options Exercisable, Weighted Average Exercise Price | $ 28.25 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Non-Vested Restricted Stock Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 143,935 | |
Shares, Granted | 0 | |
Shares, Vested | (11,973) | |
Shares, Forfeited | (550) | |
Shares Outstanding, End of Period | 131,412 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 21.88 | |
Weighted Average Grant-Date Fair Value, Granted | 0 | |
Weighted Average Grant-Date Fair Value, Vested | 18.83 | |
Weighted Average Grant-Date Fair Value, Forfeited | 25.88 | |
Outstanding at End of Period | $ 22.14 | |
Performance-Based and Market-Based RSUs [Member] | ||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 257,476 | |
Shares, Granted | 95,758 | |
Shares, Forfeited | (5,081) | |
Shares, Converted | (13,810) | |
Cancelled due to non-achievement of market condition | (30,390) | |
Shares Outstanding, End of Period | 303,953 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 18 | |
Weighted Average Grant-Date Fair Value, Granted | 17.55 | |
Weighted Average Grant-Date Fair Value, Forfeited | 23.99 | |
Weighted Average Grant-Date Fair Value, Converted | 25.75 | |
Weighted Average Grant-Date Fair Value, Cancelled due to non-achievement of market condition | 25.65 | |
Outstanding at End of Period | 16.64 | |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Grant date stock price | $ 20.43 | $ 21.5 |
Risk-free interest rate | 1.40% | 2.16% |
Expected volatility | 26.18% | 26.68% |
Service-Based RSUs [Member] | ||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 99,951 | |
Shares, Granted | 69,422 | |
Shares, Forfeited | (4,480) | |
Shares, Converted | (39,879) | |
Shares Outstanding, End of Period | 125,014 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 23.59 | |
Weighted Average Grant-Date Fair Value, Granted | 20.43 | |
Weighted Average Grant-Date Fair Value, Forfeited | 23.69 | |
Weighted Average Grant-Date Fair Value, Converted | 24.3 | |
Outstanding at End of Period | $ 21.61 |
Subsequent Events - Narratives
Subsequent Events - Narratives (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Apr. 28, 2020USD ($)$ / shares |
Subsequent Event [Line Items] | |
Cash dividend declared on common stock, payable date | May 21, 2020 |
Cash dividend declared on common stock, date of record | May 11, 2020 |
Dividends Payable, Amount Per Share | $ / shares | $ 0.14 |
Dividends Payable | $ | $ 1.7 |