Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K FILING DOCUMENT - MARLIN BUSINESS SERVICES CORP | document.htm |
EXHIBIT 99.1
Marlin Business Services Corp. Reports First Quarter 2012 Results and Declares a Quarterly Cash Dividend of $0.06 Per Share
First Quarter Highlights:
- Net income of $1.6 million, up 119% year-over-year
- New lease originations of $72.4 million, up 54% year-over-year
- Risk adjusted net interest and fee margin of 12.22%, an increase of 127 basis points year-over-year
- Insured deposit growth of 20% quarter-over-quarter, up 149% year-over-year
- 30+ day lease delinquencies of 0.94%, an improvement of 73 basis points year-over-year
- Strong capital position, equity to assets ratio of 32.4%
- Total risk-based capital of 37.2%
MOUNT LAUREL, N.J., April 30, 2012 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (Nasdaq:MRLN) today reported first quarter 2012 net income of $1.6 million, or $0.13 per diluted share.
"Results for the quarter demonstrate the solid performance track of our business," says Daniel P. Dyer, Marlin's co-founder and Chief Executive Officer. "Our value-added service proposition to customers has proven to be a key part of our winning strategy, driving the delivery of sustainable asset growth at attractive risk adjusted margins. Looking ahead, we see plenty of opportunities for profitable growth by serving the equipment financing needs of customers and small businesses across the country," says Dyer.
First quarter 2012 lease production was $72.4 million based on initial equipment cost, up 6% from $68.4 million for the fourth quarter of 2011 and 54% higher than the first quarter of 2011. The average number of monthly originating sources reached 1,016, up 12% from 911 for the fourth quarter of 2011 and an increase of 37% from the first quarter a year ago.
Net interest and fee margin increased 31 basis points in the first quarter of 2012, to 13.35% from 13.04% in the fourth quarter of 2011, and has increased 105 basis points from the first quarter a year ago.
Driving the margin improvement is the Company's cost of funds, which improved 34 basis points from the fourth quarter of 2011 and 159 basis points from the first quarter of 2011. The improvement resulted from the Company's shift in funding mix from term funding to lower-cost insured deposits issued by the Company's subsidiary, Marlin Business Bank.
Reflecting positive credit trends, the allowance for credit losses as a percentage of total finance receivables stands at 1.28% as of March 31, 2012, compared to 1.39% as of December 31, 2011. The allowance for credit losses as of March 31, 2012 represents 275% of total 60+ day delinquencies.
Leases over 30 days delinquent were 0.94% of Marlin's lease portfolio as of March 31, 2012, which is 8 basis points lower than the fourth quarter of 2011 and 73 basis points lower than a year ago. Leases over 60 days delinquent were 0.41% of Marlin's lease portfolio as of March 31, 2012, up slightly from 0.38% at December 31, 2011 but 34 basis points lower than a year ago.
First quarter net lease charge-offs were 1.23% of average net investment, representing an improvement of 17 basis points from the fourth quarter of 2011 and an improvement of 107 basis points from the first quarter of 2011.
First quarter total operating expenses were $10.4 million, up $1.5 million, or 17%, from the fourth quarter of December 31, 2011. The increase in operating expenses is due primarily to the first quarter seasonal impact of withholding taxes, accruals and restricted stock.
The Company maintains strong capital ratios with a consolidated equity to assets ratio of 32.4%.
In conjunction with this release, static pool loss statistics and vintage delinquency analysis have been updated as supplemental information on the Investor Relations section of the Company's website at www.marlincorp.com.
The Board of Directors of Marlin Business Services Corp. declared a $0.06 per share quarterly dividend, payable May 21, 2012 to shareholders of record on May 10, 2012. Based on the closing stock price on April 30, 2012, the annualized dividend yield on the Company's common stock is 1.63%
Conference Call and Webcast
We will host a conference call on Tuesday May 1, 2012 at 9:00 a.m. ET to discuss the Company's first quarter 2012 results. If you wish to participate, please call 877-312-5414 approximately 10 minutes in advance of the call time. The conference ID will be: "Marlin." The call will also be webcast on the Investor Relations page of the Company's website, www.marlincorp.com. An audio replay will also be available on the Investor Relations section of Marlin's website for approximately 45 days.
About Marlin Business Services Corp.
Marlin Business Services Corp. is a nationwide provider of equipment leasing solutions primarily to small and mid-sized businesses. The Company's principal operating subsidiary, Marlin Leasing Corporation, finances over 100 equipment categories in a segment of the market generally referred to as "small-ticket" leasing (i.e., leasing transactions less than $250,000). The Company was founded in 1997 and completed its initial public offering of common stock on November 12, 2003. For more information, visit www.marlincorp.com or call toll free at (888) 479-9111.
The Marlin Business Services Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4087
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," "may," "intend" and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others, affecting our business are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors is contained in our filings with the Securities and Exchange Commission, including the sections captioned "Risk Factors" and "Business" in the Company's Form 10-K filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
|
MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) |
||
| March 31, | December 31, | |
| 2012 | 2011 | |
| (Dollars in thousands, except per- share data) | ||
| ASSETS | ||
| Cash and due from banks | $145 | $1,035 |
| Interest-earning deposits with banks | 39,455 | 41,250 |
| Total cash and cash equivalents | 39,600 | 42,285 |
| Restricted interest-earning deposits with banks (includes $24.8 million and $24.3 million at March 31, 2012 and December 31, 2011, respectively, related to consolidated variable interest entities ("VIEs")) | 28,487 | 28,637 |
| Securities available for sale (amortized cost of $3.2 million and $1.7 million at March 31, 2012 and December 31, 2011, respectively) | 3,287 | 1,780 |
| Net investment in leases and loans (includes $46.4 million and $60.0 million at March 31, 2012 and December 31, 2011, respectively, related to consolidated VIEs) | 412,553 | 387,840 |
| Property and equipment, net | 2,076 | 2,052 |
| Property tax receivables | 3,624 | 265 |
| Other assets | 23,044 | 23,110 |
| Total assets | $512,671 | $485,969 |
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits | $238,760 | $198,579 |
| Long-term borrowings (includes $32.8 million and $45.1 million at March 31, 2012 and December 31, 2011, respectively, related to consolidated VIEs) | 73,692 | 92,004 |
| Other liabilities: | ||
| Sales and property taxes payable | 4,953 | 2,169 |
| Accounts payable and accrued expenses | 8,715 | 8,791 |
| Net deferred income tax liability | 20,710 | 20,325 |
| Total liabilities | 346,830 | 321,868 |
| Stockholders' equity: | ||
| Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,716,445 and 12,760,266 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively | 127 | 128 |
| Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | — | — |
| Additional paid-in capital | 86,396 | 85,544 |
| Stock subscription receivable | (2) | (2) |
| Accumulated other comprehensive loss | 1 | 1 |
| Retained earnings | 79,319 | 78,430 |
| Total stockholders' equity | 165,841 | 164,101 |
| Total liabilities and stockholders' equity | $512,671 | $485,969 |
|
MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) |
||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (Dollars in thousands, except per-share data) | ||
| Interest income | $12,052 | $10,900 |
| Fee income | 3,114 | 3,132 |
| Interest and fee income | 15,166 | 14,032 |
| Interest expense | 2,129 | 3,292 |
| Net interest and fee income | 13,037 | 10,740 |
| Provision for credit losses | 1,102 | 1,179 |
| Net interest and fee income after provision for credit losses | 11,935 | 9,561 |
| Other income: | ||
| Insurance income | 1,009 | 977 |
| Loss on derivatives | (4) | (5) |
| Other income | 304 | 282 |
| Other income | 1,309 | 1,254 |
| Other expense: | ||
| Salaries and benefits | 7,062 | 5,937 |
| General and administrative | 3,294 | 3,471 |
| Financing related costs | 201 | 189 |
| Other expense | 10,557 | 9,597 |
| Income before income taxes | 2,687 | 1,218 |
| Income tax expense | 1,038 | 464 |
| Net income | $1,649 | $754 |
| Basic earnings per share | $0.13 | $0.06 |
| Diluted earnings per share | $0.13 | $0.06 |
| Cash dividends declared per share | $0.06 | $— |
| SUPPLEMENTAL QUARTERLY DATA | |||||
| (Dollars in thousands, except share amounts) | |||||
| (Unaudited) | |||||
| Quarter Ended: | 3/31/2011 | 6/30/2011 | 9/30/2011 | 12/31/2011 | 3/31/2012 |
| New Asset Production: | |||||
| # of Sales Reps | 94 | 97 | 95 | 93 | 99 |
| # of Leases | 3,984 | 4,522 | 4,580 | 5,016 | 5,658 |
| Leased Equipment Volume | $47,024 | $53,889 | $59,674 | $68,427 | $72,362 |
| Approval Percentage | 56% | 60% | 60% | 64% | 66% |
| Average Monthly Sources | 740 | 826 | 831 | 911 | 1,016 |
| Implicit Yield on New Leases | 13.39% | 13.04% | 12.55% | 12.57% | 12.71% |
| Net Interest and Fee Margin: | |||||
| Interest Income Yield | 12.48% | 12.37% | 12.32% | 12.25% | 12.34% |
| Fee Income Yield | 3.59% | 3.33% | 3.46% | 3.31% | 3.19% |
| Interest and Fee Income Yield | 16.07% | 15.70% | 15.78% | 15.56% | 15.53% |
| Cost of Funds | 3.77% | 3.49% | 3.01% | 2.52% | 2.18% |
| Net Interest and Fee Margin | 12.30% | 12.21% | 12.77% | 13.04% | 13.35% |
| Average Total Finance Receivables | $349,203 | $351,389 | $359,451 | $373,260 | $390,608 |
| Average Net Investment in Leases | $348,276 | $350,662 | $358,753 | $372,676 | $390,150 |
| End of Period Net Investment in Leases | $347,254 | $353,839 | $366,293 | $387,377 | $412,099 |
| Portfolio Asset Quality: | |||||
| Leasing | |||||
| 30+ Days Past Due Delinquencies | 1.67% | 1.31% | 1.18% | 1.02% | 0.94% |
| 30+ Days Past Due Delinquencies | $6,475 | $5,188 | $4,844 | $4,452 | $4,362 |
| 60+ Days Past Due Delinquencies | 0.75% | 0.56% | 0.47% | 0.38% | 0.41% |
| 60+ Days Past Due Delinquencies | $2,891 | $2,220 | $1,934 | $1,663 | $1,911 |
| Total Finance Receivables | |||||
| 30+ Days Past Due Delinquencies | 1.68% | 1.31% | 1.18% | 1.02% | 0.93% |
| 30+ Days Past Due Delinquencies | $6,514 | $5,190 | $4,844 | $4,452 | $4,362 |
| 60+ Days Past Due Delinquencies | 0.75% | 0.56% | 0.47% | 0.38% | 0.41% |
| 60+ Days Past Due Delinquencies | $2,914 | $2,221 | $1,934 | $1,663 | $1,911 |
| Net Charge-offs - Leasing | $2,002 | $1,631 | $1,556 | $1,305 | $1,203 |
| % on Average Net Investment in | |||||
| Leases Annualized | 2.30% | 1.86% | 1.73% | 1.40% | 1.23% |
| Net Charge-offs - Total Finance Receivables | $2,010 | $1,636 | $1,553 | $1,300 | $1,199 |
| % on Average Total Finance Receivables | |||||
| Annualized | 2.30% | 1.86% | 1.73% | 1.39% | 1.23% |
| Allowance for Credit Losses | $6,887 | $6,175 | $5,459 | $5,353 | $5,256 |
| % of 60+ Delinquencies | 236.34% | 278.03% | 282.26% | 321.89% | 275.04% |
|
90+ Day Delinquencies (Non-earning total finance receivables) |
$1,407 | $1,197 | $1,151 | $829 | $842 |
| Balance Sheet: | |||||
| Assets | |||||
| Investment in Leases and Loans | $348,290 | $354,014 | $365,610 | $385,984 | $409,960 |
| Initial Direct Costs and Fees | 6,616 | 6,686 | 6,849 | 7,209 | 7,849 |
| Reserve for Credit Losses | (6,887) | (6,175) | (5,459) | (5,353) | (5,256) |
| Net Investment in Leases and Loans | $348,019 | $354,525 | $367,000 | $387,840 | $412,553 |
| Cash and Cash Equivalents | 40,064 | 51,904 | 48,345 | 42,285 | 39,600 |
| Restricted Cash | 51,212 | 30,910 | 29,419 | 28,637 | 28,487 |
| Other Assets | 34,972 | 29,909 | 28,618 | 27,207 | 32,031 |
| Total Assets | $474,267 | $467,248 | $473,382 | $485,969 | $512,671 |
| Liabilities | |||||
| Deposits | 95,731 | 124,522 | 157,398 | 198,579 | 238,760 |
| Total Debt | $178,323 | $143,794 | $115,089 | $92,004 | $73,692 |
| Other Liabilities | 38,845 | 37,361 | 38,488 | 31,285 | 34,378 |
| Total Liabilities | $312,899 | $305,677 | $310,975 | $321,868 | $346,830 |
| Stockholders' Equity | |||||
| Common Stock | $130 | $129 | $128 | $128 | $127 |
| Paid-in Capital, net | 87,563 | 86,197 | 85,157 | 85,542 | 86,394 |
| Other Comprehensive Income | (100) | (60) | (14) | 1 | 1 |
| Retained Earnings | 73,775 | 75,305 | 77,136 | 78,430 | 79,319 |
| Total Stockholders' Equity | $161,368 | $161,571 | $162,407 | $164,101 | $165,841 |
| Total Liabilities and | |||||
| Stockholders' Equity | $474,267 | $467,248 | $473,382 | $485,969 | $512,671 |
| Capital and Leverage: | |||||
| Equity | $161,368 | $161,571 | $162,407 | $164,101 | $165,841 |
| Debt to Equity | 1.70 | 1.66 | 1.68 | 1.77 | 1.88 |
| Equity to Assets | 34.02% | 34.58% | 34.31% | 33.77% | 32.36% |
| Regulatory Capital Ratios: | |||||
| Tier 1 Leverage Capital | 34.30% | 34.35% | 34.46% | 33.74% | 33.36% |
| Tier 1 Risk-based Capital | 39.88% | 40.10% | 39.23% | 37.94% | 36.06% |
| Total Risk-based Capital | 41.14% | 41.35% | 40.48% | 39.19% | 37.20% |
| Expense Ratios: | |||||
| Salaries and Benefits Expense | $5,937 | $5,384 | $5,559 | $5,659 | $7,062 |
| Salaries and Benefits Expense | |||||
| Annualized % of Avg. Fin. Recbl. | 6.80% | 6.13% | 6.19% | 6.06% | 7.23% |
| Total personnel end of quarter | 243 | 251 | 247 | 242 | 246 |
| General and Administrative Expense | $3,471 | $3,145 | $3,226 | $3,202 | $3,294 |
| General and Administrative Expense | |||||
| Annualized % of Avg. Fin. Recbl. | 3.98% | 3.58% | 3.59% | 3.43% | 3.37% |
| Efficiency Ratio | 78.41% | 70.42% | 68.60% | 63.78% | 72.17% |
| Net Income: | |||||
| Net Income | $754 | $1,530 | $1,831 | $2,060 | $1,649 |
| Annualized Performance Measures: | |||||
| Return on Average Assets | 0.65% | 1.31% | 1.56% | 1.71% | 1.34% |
| Return on Average Stockholders' Equity | 1.88% | 3.78% | 4.53% | 5.04% | 4.02% |
| EPS Data: | |||||
| Net Income Allocated to Common Stock | $696 | $1,411 | $1,699 | $1,916 | $1,576 |
| Number of Shares - Basic | 11,934,525 | 11,979,787 | 11,880,834 | 11,900,351 | 12,106,865 |
| Basic Earnings per Share | $0.06 | $0.12 | $0.14 | $0.16 | $0.13 |
| Number of Shares - Diluted | 12,012,930 | 12,055,312 | 11,946,231 | 11,949,505 | 12,173,522 |
| Diluted Earnings per Share | $0.06 | $0.12 | $0.14 | $0.16 | $0.13 |
| Cash Dividends Declared per share | $0.00 | $0.00 | $0.00 | $0.06 | $0.06 |
| Notes: | |||||
| Net investment in total finance receivables includes net investment in direct financing leases and loans. | |||||
| Average balances from January 1, 2012 forward were calculated using average daily balances. Average balances before January 1, 2012 were generally calculated using beginning and ending balances for each month to approximate average daily balances. The average balance of total finance receivables for the three-month period ended March 31, 2012 was decreased by approximately $5.5 million, from $396.1 million to $390.6 million, as a result of this calculation change. | |||||
CONTACT: Marlin Business Services Corp.
Lynne C. Wilson, CFO
+1-888-479-9111 x4108