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MRLN Marlin Business Services

Filed: 30 Apr 21, 2:13pm
 
 
 
 
 
 
 
 
 
 
UNITED STATES
 
SECURITIES AND EXCHANGE
COMMISSION
 
 
WASHINGTON,
 
D.C. 20549
 
FORM
10-Q
 
 
QUARTERLY
 
REPORT PURSUANT TO SECTION
 
13 OR 15(d) OF THE SECURITIES
 
EXCHANGE ACT OF
1934
 
For the Quarterly Period Ended
March 31, 2021
or
 
 
 
 
TRANSITION REPORT PURSUANT TO
 
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from__________ to__________
 
Commission file number
000-50448
 
 
MARLIN BUSINESS SERVICES CORP.
 
 
(Exact name of registrant as specified in its charter)
 
Pennsylvania
38-3686388
(State of incorporation)
(I.R.S. Employer Identification Number)
 
 
300 Fellowship Road
,
Mount Laurel
,
NJ
08054
 
(Address of principal executive offices)
 
(Zip code)
 
(
888
)
479-9111
 
(Registrant’s telephone number,
 
including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $.01 per share
MRLN
NASDAQ
 
Global Select Market
 
Indicate by check mark whether the registrant (1) has filed all reports required
 
to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
 
period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes
 
 
No
 
 
Indicate by check mark whether the registrant has submitted electronically
 
every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
 
during the preceding 12 months (or for such shorter period that
registrant was required to submit such files.)
Yes
No
 
 
Indicate by check mark whether the registrant is a large accelerated
 
filer, an accelerated filer,
 
a non-accelerated filer, a smaller
reporting company or an emerging growth company.
 
See the definitions of "large accelerated filer,”
 
“accelerated filer", “smaller
reporting company” and “emerging growth
 
company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
 
Non-accelerated filer
 
Smaller reporting company
 
Emerging growth company
 
 
If an emerging growth company,
 
indicate by check mark if the registrant has elected not to use the extended transition
 
period for
complying with any new or revised financial accounting standards provided
 
pursuant to Section 13(a) of the Exchange Act.
 
 
Indicate by check mark whether the registrant is a shell company (as defined
 
in Rule 12b-2 of the Securities Exchange Act of 1934).
Yes
 
No
 
 
At April 23, 2021,
12,009,234
 
shares of Registrant’s common
 
stock, $.01 par value, were outstanding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARLIN BUSINESS SERVICES CORP.
 
AND SUBSIDIARIES
 
Quarterly Report on Form 10-Q
for the Quarter Ended March 31, 2021
 
 
TABLE OF CONTENTS
 
 
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-3-
 
PART
 
I. Financial Information
 
Item
 
1.
 
Consolidated
 
Financial
 
Statements
 
 
MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
 
 
 
March 31,
December 31,
 
2021
2020
(Dollars in thousands, except per-share
 
data)
ASSETS
Cash and due from banks
$
5,244
$
5,473
Interest-earning deposits with banks
 
105,378
130,218
 
Total cash and cash equivalents
110,622
135,691
Time deposits with banks
4,482
5,967
Restricted interest-earning deposits related to consolidated VIEs
4,358
4,719
Investment securities (amortized cost of $
12.6
 
million and $
11.5
 
million at
 
March 31, 2021 and December 31, 2020, respectively)
12,373
11,624
Net investment in leases and loans:
 
Leases
319,092
337,159
 
Loans
517,249
532,125
Net investment in leases and loans, excluding allowance for credit losses (includes $
23.2
 
million and
$
30.4
 
million at March 31, 2021 and December 31, 2020, respectively, related to consolidated VIEs)
836,341
869,284
Allowance for credit losses
(38,912)
(44,228)
 
Total net investment in leases and loans
797,429
825,056
Intangible assets
5,510
5,678
Operating lease right-of-use assets
7,648
7,623
Property and equipment, net
8,603
8,574
Property tax receivables, net of allowance
12,063
6,854
Other assets
9,776
10,212
 
Total assets
$
972,864
$
1,021,998
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
$
678,331
$
729,614
Long-term borrowings related to consolidated VIEs
23,670
30,665
Operating lease liabilities
8,517
8,700
Other liabilities:
 
Sales and property taxes payable
10,916
6,316
 
Accounts payable and accrued expenses
26,086
27,734
 
Net deferred income tax liability
23,642
22,604
 
Total liabilities
771,162
825,633
Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $
0.01
 
par value;
5,000,000
 
shares authorized;
NaN
 
issued
0
0
Common Stock, $
0.01
 
par value;
75,000,000
 
shares authorized;
12,009,323
 
and
11,974,530
 
shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively
120
120
 
Additional paid-in capital
76,682
76,323
 
Accumulated other comprehensive (loss) income
(115)
69
 
Retained earnings
125,015
119,853
 
Total stockholders’ equity
201,702
196,365
 
Total liabilities and stockholders’ equity
$
972,864
$
1,021,998
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the unaudited consolidated
 
financial statements.
 
-4-
MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
 
 
Three Months Ended March 31,
 
2021
2020
(Dollars in thousands, except per-share
data)
Interest income
$
18,288
$
26,465
Fee income
2,455
2,766
Interest and fee income
20,743
29,231
Interest expense
3,263
5,680
Net interest and fee income
17,480
23,551
Provision for credit losses
(2,936)
25,150
Net interest and fee income (loss) after provision for credit losses
20,416
(1,599)
Non-interest income:
 
Gain on leases and loans sold
0
 
2,282
 
Insurance premiums written and earned
1,998
2,282
 
Other income
 
6,574
7,639
 
Non-interest income
8,572
12,203
Non-interest expense:
 
Salaries and benefits
8,373
9,519
 
General and administrative
11,246
13,605
 
Goodwill impairment
0
 
6,735
 
Non-interest expense
19,619
29,859
 
Income (loss) before income taxes
9,369
(19,255)
Income tax expense (benefit)
2,518
(7,434)
 
Net income (loss)
$
6,851
$
(11,821)
Basic earnings (loss) per share
$
0.57
$
(1.00)
Diluted earnings (loss)
 
per share
$
0.57
$
(1.00)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of the unaudited consolidated
 
financial statements.
 
-5-
MARLIN BUSINESS SERVICES CORP.
AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
 
(Unaudited)
 
Three Months Ended March 31,
2021
2020
(Dollars in thousands)
 
Net income (loss)
$
6,851
$
(11,821)
Other comprehensive income (loss):
 
Decrease in fair value of debt securities available for sale
(246)
(51)
 
Tax effect
62
13
Total other comprehensive
 
loss
(184)
(38)
 
Comprehensive income (loss)
$
6,667
$
(11,859)