Marlin Business Services Corp. Reports Third Quarter 2012 Results and Declares a Quarterly Cash Dividend of $0.08 Per Share
Third Quarter Highlights:
Net income of $3.4 million, up 87% year-over-year New lease originations of $81.6 million, up 37% year-over-year Risk adjusted net interest and fee margin of 12.25%, an increase of 42 basis points year-over-year Insured deposit growth of 21% quarter-over-quarter, up 117% year-over-year Strong capital position, equity to assets ratio of 29.62% Total risk-based capital ratio of 34.40% Efficiency ratio of 56%, compared to 69% a year ago
MOUNT LAUREL, N.J., Oct. 29, 2012 (GLOBE NEWSWIRE) — Marlin Business Services Corp. (Nasdaq:MRLN) today reported third quarter 2012 net income of $3.4 million, or $0.27 per diluted share. For the nine-month period ended September 30, 2012, net income was $8.1 million, or $0.63 per diluted share.
“The business is well-positioned to grow and address the credit needs of small businesses,” says Daniel P. Dyer, Marlin’s co-founder and Chief Executive Officer. “Reflecting our favorable earnings, we have declared a quarterly cash dividend of $0.08 per share,” says Mr. Dyer.
Third quarter 2012 lease production was $81.6 million based on initial equipment cost, up from $80.4 million for the second quarter of 2012 and 37% higher than the third quarter of 2011.
Net interest and fee margin increased in the third quarter of 2012, to 13.51% from 13.22% in the second quarter of 2012, and has increased 74 basis points from the third quarter a year ago.
The Company’s cost of funds improved 39 basis points from the second quarter of 2012 and 168 basis points from the third quarter of 2011. The improvement resulted from the Company’s continuing shift in funding mix to lower-cost insured deposits issued by the Company’s subsidiary, Marlin Business Bank.
The allowance for credit losses as a percentage of total finance receivables stands at 1.20% as of September 30, 2012, compared to 1.18% as of June 30, 2012. The allowance for credit losses as of September 30, 2012 represents 258% of total 60+ day delinquencies.
Leases over 30 days delinquent were 0.87% of Marlin’s lease portfolio as of September 30, 2012, 17 basis points higher than the second quarter of 2012 and 31 basis points lower than a year ago. Leases over 60 days delinquent were 0.40% of Marlin’s lease portfolio as of September 30, 2012, up 13 basis points from 0.27% at June 30, 2012 and 7 basis points lower than a year ago.
Third quarter net lease charge-offs were 0.89% of average total finance receivables, representing an improvement of 15 basis points from the second quarter of 2012 and an improvement of 84 basis points from the third quarter of 2011.
Third quarter total operating expenses were $9.6 million, up $0.3 million, or 3%, from the second quarter of 2012. The increase in operating expenses is due primarily to variable costs associated with the increase in volume.
The Company maintains strong capital ratios with a consolidated equity to assets ratio of 29.62%. Our risk based capital ratio is 34.40%, which is well above regulatory requirements.
In conjunction with this release, static pool loss statistics and a 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 an $0.08 per share quarterly dividend. The dividend is payable November 26, 2012, to shareholders of record on November 12, 2012. Based on the closing stock price on October 26, 2012, the annualized dividend yield on the Company’s common stock is 1.51%.
Conference Call and Webcast
Due to weather conditions on the East Coast, we have rescheduled our conference call to Wednesday, October 31, 2012 at 3:00 p.m. ET to discuss the Company’s third 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 innovative equipment financing solutions for small and mid-size businesses. Since its inception in 1997, Marlin has financed a wide array of commercial equipment and software for a quarter of a million business customers. Marlin’s mission is to offer convenient and cost-effective financing products while providing the highest level of customer service. Marlin is publicly traded (Nasdaq:MRLN) and owns and operates a federally regulated commercial bank, Marlin Business Bank. 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
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.