EXHIBIT 99.1
Marlin Business Services Corp. Reports Third Quarter 2016 Earnings and Declares a Cash Dividend of $0.14 Per Share
Third Quarter Highlights:
- Total third quarter origination volume of $128.3 million, a record for a single quarter and up 25.9% year-over-year
- Total Funding Stream loan origination volume of $10.3 million, up 31.0% from the prior quarter and 4.6 times higher than a year ago
- Net income of $4.3 million with EPS of $0.35 per share
- ROE increased 15 basis points from prior year to 11.10%
- Total new origination loan and lease yield of 11.69% decreased 9 basis points from prior quarter and increased 70 basis points year-over-year
- Credit quality remained strong with 30+ and 60+ day delinquencies at 78 basis points and 45 basis points, respectively
- Investment in leases and loans (before deferred costs and loss allowance) ended the quarter at $756.1 million, an all-time record and up 15.1% year-over-year
- Strong capital position with equity to assets ratio of 18.26%
MOUNT LAUREL, N.J., Oct. 27, 2016 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (NASDAQ:MRLN) today reported third quarter 2016 net income of $4.3 million, or $0.35 per diluted share, compared to $4.8 million, or $0.38 per diluted share, for the third quarter last year. Included in Marlin’s third quarter 2016 net income are income tax charges of $0.1 million relating to a true-up of state tax apportionments along with $0.2 million of additional expenses related to the Company’s ‘Marlin 2.0’ initiative. Return on equity for the quarter was 11.10%, up from 10.95% a year ago.
“The third quarter was a very productive period for Marlin highlighted by record origination volume and portfolio size, continued strong credit quality and significant progress on key strategic initiatives to drive sustained profitable growth,” commented Jeffrey Hilzinger, Marlin’s President and Chief Executive Officer. “Total origination volume of $128.3 million was an all-time record, up nearly 6% compared to the previous quarter and nearly 26% from a year ago. Our origination growth was broad-based and driven by increased applications in our Equipment Finance business, including solid contributions from our new Franchise and Transportation platforms. In addition, Funding Stream, our working capital loan business, continues to gain traction and comprised $10.3 million, or 8%, of total originations in the quarter, up from $7.9 million, or 6%, of total originations in the prior quarter. Our Investment in Leases and Loans also reached an all-time record during the quarter, increasing to $756.1 million, up almost 4% compared to the previous quarter and up 15% from a year ago. Further, we achieved the record origination volume while adhering to our strict underwriting standards as evidenced by the portfolio’s credit performance, which remained excellent.”
Mr. Hilzinger continued, “In addition to our solid operational performance, during the quarter we kicked-off our ‘Marlin 2.0’ initiative, which is designed to transform the Company from primarily a micro-ticket equipment lessor into a broader provider of credit products and services to small businesses. As a result of this strategic re-visioning process, we expect to better scale our origination platforms, evaluate and renew our operating processes and better leverage our structural costs to drive sustainable growth and improved returns. Overall, I am pleased with our early progress with the Marlin 2.0 initiative and look forward to providing updates in future quarters.”
Results of Operations
Combined Equipment Finance and Funding Stream origination volume for the third quarter ended September 30, 2016 of $128.3 million was the fourth consecutive quarter of record origination volume for the Company. Equipment Finance origination volume of $117.9 million in the third quarter was up 3.8% compared to $113.6 million in the prior quarter and increased 18.4% from $99.7 million in the third quarter of 2015. The Company also experienced solid Funding Stream origination volume in the third quarter of 2016 totaling $10.3 million, up from $7.9 million in the second quarter of 2016 and $2.2 million in the same period a year ago.
Net interest and fee margin as a percentage of average finance receivables was 11.30% for the third quarter ended September 30, 2016, down 20 basis points from the second quarter of 2016 and down 66 basis points from a year ago. The decrease in margin percentage from the prior quarter and year ago periods was primarily a result of the roll-off of higher yielding assets, growth in lower yielding Equipment Finance channels, a decline in late fees and a slight increase in the Company’s cost of funds. The Company’s cost of funds increased to 112 basis points, compared to 105 basis points for the second quarter of 2016 and 89 basis points for the third quarter of 2015.
On an absolute basis, net interest and fee margin increased to $20.7 million for the quarter ended September 30, 2016, compared to $20.3 million for the prior quarter and $19.2 million for the third quarter last year.
Other income was $2.6 million for the third quarter of 2016, compared to $2.1 million in the prior quarter and $2.0 million in the third quarter last year. The increase in other income compared to the third quarter last year was partially due to a $0.2 million increase in gains-on-sale and servicing fee income from asset sales related to the Company’s emerging Capital Markets activities.
Other expenses were $12.8 million for the third quarter of 2016, compared to $12.5 million in the prior quarter and $11.4 million in the third quarter last year. The increase in other expenses compared to the prior quarter was primarily related to expenses associated with the ‘Marlin 2.0’ strategic initiative and prospective changes to where the Company reports its insurance program related expenses. Effective during the third quarter, the Company is reporting its insurance program related expenses in “other expense – general and administrative” on a prospective application. Related expenses incurred prior to the third quarter are reported net in “other income - insurance premiums written and earned”. The increase in other expenses compared to the third quarter last year was largely a result of higher salaries and benefits due to an increase in personnel from the build-out of the Transportation and Franchise platforms and Marlin’s senior leadership team. To a lesser extent, the Company also incurred higher general and administrative expense in the current quarter associated with increased marketing activities, professional consulting and the aforementioned reporting changes.
The Company’s efficiency ratio for the third quarter was 54.87% compared to 55.63% for the prior quarter and 53.81% in the third quarter last year.
Marlin recorded a provision for income taxes of $3.0 million for the third quarter of 2016, representing an effective tax rate of 41.1%, compared with $2.8 million or 38.1% for the preceding quarter and $3.0 million or 38.3% for the third quarter of 2015. During the third quarter, the Company recognized $0.1 million of additional tax expense related to a true up of tax on its state apportionments.
Credit Quality
Allowance for credit losses as a percentage of total finance receivables was 1.33% at September 30, 2016 versus 1.31% at September 30, 2015. Coverage of total 60+ day delinquencies was 259.28% at September 30, 2016 versus 269.55% at September 30, 2015.
Credit quality remained strong as finance receivables over 30 days delinquent were 0.78% of the Company’s total finance receivables portfolio as of September 30, 2016, up 3 basis points from September 30, 2015. Finance receivables over 60 days delinquent were 0.45% of the Company’s total finance receivables portfolio as of September 30, 2016, up 2 basis points from 0.43% at September 30, 2015. Third quarter net charge-offs were 1.36% of average total finance receivables versus 1.23% a year ago.
As of September 30, 2016 and 2015, the Company’s consolidated equity to assets ratio was 18.26% and 19.14%, respectively.
Corporate Developments
During the quarter, the Company announced the promotion of David Lafferty to Vice President of Capital Markets and the promotion of Richard Irwin to Treasurer. Mr. Lafferty has been Marlin’s Vice President of Commercial Credit since 1998 and has nearly 25 years of experience in equipment finance. Mr. Irwin joined Marlin in January 2016 with over 18 years of experience and most recently held various positions in CIT’s Treasury and Corporate Development functions.
The Board of Directors of Marlin Business Services Corp. today declared a $0.14 per share quarterly dividend. The dividend is payable November 17, 2016, to shareholders of record on November 7, 2016. Based on the closing stock price on October 26, 2016, the annualized dividend yield on the Company’s common stock is 2.95%.
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.
Business Outlook
The Company is updating its business outlook for the full year ending December 31, 2016 as follows:
- Full year origination volume outlook (including both loans and leases) has increased and is now expected to be in the range of $480 million to $490 million, (up from its previous guidance of $460 million to $480 million).
- Credit quality is anticipated to remain strong and within the Company’s expected range.
- Net interest margin is expected to move slightly lower in 2016 with the roll-off of higher yielding legacy leases and continued growth in lower yielding Equipment Finance channels, partially offset by expected growth in the Company’s higher yielding Funding Stream loan business.
- Full year ROE is expected to grow as strategic initiatives gain traction and the Company continues to scale.
Conference Call and Webcast
Marlin will host a conference call on Friday, October 28, 2016 at 9:00 a.m. ET to discuss the Company’s third quarter 2016 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 commercial lending solutions for small and mid-size businesses. Through its wholly-owned operating subsidiary, Marlin Business Bank, Marlin provides innovative commercial financing programs. Our equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which includes manufacturers, distributors, independent dealers and brokers. Since its inception in 1997, Marlin has extended credit to over a quarter of a million business customers. Our mission is to offer convenient financing products while providing the highest level of personalized customer service. Marlin is publicly traded (MRLN). For more information about Marlin, visit www.marlincorp.com or call toll free at (888) 479-9111.
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) | ||||||||||||
September 30, | December 31, | |||||||||||
2016 | 2015 | |||||||||||
(Dollars in thousands, except per-share data) | ||||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 3,850 | $ | 4,946 | ||||||||
Interest-earning deposits with banks | 73,775 | 55,183 | ||||||||||
Total cash and cash equivalents | 77,625 | 60,129 | ||||||||||
Time deposits with banks | 9,107 | 7,368 | ||||||||||
Restricted interest-earning deposits with banks | — | 216 | ||||||||||
Securities available for sale (amortized cost of $6.1 million and $6.6 million at | ||||||||||||
September 30, 2016 and December 31, 2015, respectively) | 6,075 | 6,399 | ||||||||||
Net investment in leases and loans: | ||||||||||||
Net investment in leases and loans, excluding allowance for credit losses | 769,495 | 690,845 | ||||||||||
Allowance for credit losses | (10,073 | ) | (8,413 | ) | ||||||||
Total net investment in leases and loans | 759,422 | 682,432 | ||||||||||
Property and equipment, net | 3,624 | 3,872 | ||||||||||
Property tax receivables | 5,415 | 47 | ||||||||||
Other assets | 7,733 | 12,521 | ||||||||||
Total assets | $ | 869,001 | $ | 772,984 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Deposits | $ | 676,920 | $ | 587,940 | ||||||||
Other liabilities: | ||||||||||||
Sales and property taxes payable | 5,137 | 2,686 | ||||||||||
Accounts payable and accrued expenses | 13,814 | 15,371 | ||||||||||
Net deferred income tax liability | 14,462 | 16,849 | ||||||||||
Total liabilities | 710,333 | 622,846 | ||||||||||
Stockholders’ equity: | ||||||||||||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | — | — | ||||||||||
Common Stock, $0.01 par value; 75,000,000 shares authorized; | ||||||||||||
12,564,761 and 12,410,899 shares issued and outstanding at September 30, 2016 | ||||||||||||
and December 31, 2015, respectively | 126 | 124 | ||||||||||
Additional paid-in capital | 82,892 | 81,703 | ||||||||||
Stock subscription receivable | (2 | ) | (2 | ) | ||||||||
Accumulated other comprehensive loss | (5 | ) | (129 | ) | ||||||||
Retained earnings | 75,657 | 68,442 | ||||||||||
Total stockholders’ equity | 158,668 | 150,138 | ||||||||||
Total liabilities and stockholders’ equity | $ | 869,001 | $ | 772,984 | ||||||||
MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
(Dollars in thousands, except per-share data) | ||||||||||||||
Interest income | $ | 18,803 | $ | 16,690 | $ | 54,521 | $ | 49,665 | ||||||
Fee income | 3,944 | 3,915 | 11,747 | 11,762 | ||||||||||
Interest and fee income | 22,747 | 20,605 | 66,268 | 61,427 | ||||||||||
Interest expense | 2,055 | 1,433 | 5,604 | 4,087 | ||||||||||
Net interest and fee income | 20,692 | 19,172 | 60,664 | 57,340 | ||||||||||
Provision for credit losses | 3,137 | 1,986 | 8,880 | 7,542 | ||||||||||
Net interest and fee income after provision for credit losses | 17,555 | 17,186 | 51,784 | 49,798 | ||||||||||
Other income: | ||||||||||||||
Insurance premiums written and earned | 1,567 | 1,470 | 4,759 | 4,294 | ||||||||||
Other income | 1,065 | 572 | 2,013 | 1,336 | ||||||||||
Other income | 2,632 | 2,042 | 6,772 | 5,630 | ||||||||||
Other expense: | ||||||||||||||
Salaries and benefits | 7,817 | 7,058 | 23,829 | 21,290 | ||||||||||
General and administrative | 4,980 | 4,357 | 14,073 | 12,780 | ||||||||||
Financing related costs | 17 | 34 | 85 | 184 | ||||||||||
Other expenses | 12,814 | 11,449 | 37,987 | 34,254 | ||||||||||
Income before income taxes | 7,373 | 7,779 | 20,569 | 21,174 | ||||||||||
Income tax expense | 3,028 | 2,982 | 8,105 | 8,173 | ||||||||||
Net income | $ | 4,345 | $ | 4,797 | $ | 12,464 | $ | 13,001 | ||||||
Basic earnings per share | $ | 0.35 | $ | 0.38 | $ | 1.00 | $ | 1.01 | ||||||
Diluted earnings per share | $ | 0.35 | $ | 0.38 | $ | 1.00 | $ | 1.01 | ||||||
Cash dividends declared per share | $ | 0.14 | $ | 2.14 | $ | 0.42 | $ | 2.39 |
SUPPLEMENTAL QUARTERLY DATA | |||||||||||||||
(Dollars in thousands, except share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter Ended: | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | 9/30/2016 | ||||||||||
Net Income: | |||||||||||||||
Net Income | $ | 4,797 | $ | 2,965 | $ | 3,651 | $ | 4,468 | $ | 4,345 | |||||
Annualized Performance Measures: | |||||||||||||||
Return on Average Assets | 2.51 | % | 1.56 | % | 1.88 | % | 2.19 | % | 2.05 | % | |||||
Return on Average Stockholders' Equity | 10.95 | % | 7.96 | % | 9.74 | % | 11.66 | % | 11.10 | % | |||||
EPS Data: | |||||||||||||||
Net Income Allocated to Common Stock | $ | 4,661 | $ | 2,891 | $ | 3,548 | $ | 4,339 | $ | 4,209 | |||||
Number of Shares - Basic | 12,406,767 | 12,118,789 | 12,120,934 | 12,136,660 | 12,146,727 | ||||||||||
Basic Earnings per Share | $ | 0.38 | $ | 0.24 | $ | 0.29 | $ | 0.36 | $ | 0.35 | |||||
Number of Shares - Diluted | 12,413,497 | 12,128,613 | 12,126,812 | 12,143,181 | 12,157,356 | ||||||||||
Diluted Earnings per Share | $ | 0.38 | $ | 0.24 | $ | 0.29 | $ | 0.36 | $ | 0.35 | |||||
Cash Dividends Declared per share | $ | 2.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | |||||
New Asset Production: | |||||||||||||||
Equipment Finance | $ | 99,653 | $ | 104,263 | $ | 102,092 | $ | 113,615 | $ | 117,945 | |||||
Funding Stream Loans | $ | 2,242 | $ | 3,670 | $ | 6,301 | $ | 7,873 | $ | 10,316 | |||||
Total New Originations | $ | 101,895 | $ | 107,933 | $ | 108,393 | $ | 121,488 | $ | 128,261 | |||||
Implicit Yield on Equipment Finance Originations | 10.43 | % | 10.64 | % | 10.30 | % | 10.20 | % | 9.78 | % | |||||
Implicit Yield on Funding Stream Loan Originations | 36.19 | % | 32.15 | % | 34.17 | % | 34.72 | % | 33.50 | % | |||||
Total Implicit Yield on New Originations | 10.99 | % | 11.37 | % | 11.69 | % | 11.78 | % | 11.69 | % | |||||
Assets sold in the period | $ | 1,394 | $ | 317 | $ | 0 | $ | 2,707 | $ | 3,871 | |||||
# of Sales Reps - Total | 131 | 136 | 136 | 139 | 136 | ||||||||||
# of Leases / Loans Equipment Finance | 6,476 | 6,625 | 6,316 | 6,681 | 6,606 | ||||||||||
Equipment Finance Approval Percentage | 66 | % | 62 | % | 62 | % | 58 | % | 56 | % | |||||
Average Monthly Equipment Finance Sources | 1,106 | 1,109 | 1,075 | 1,138 | 1,118 | ||||||||||
Net Interest and Fee Margin: | |||||||||||||||
Interest Income Equipment Finance | $ | 16,489 | $ | 16,598 | $ | 16,808 | $ | 17,152 | $ | 17,368 | |||||
Interest Income Funding Stream Loans | $ | 123 | $ | 316 | $ | 618 | $ | 930 | $ | 1,254 | |||||
Interest Income Yield | 10.41 | % | 10.35 | % | 10.32 | % | 10.30 | % | 10.27 | % | |||||
Fee Income Yield | 2.44 | % | 2.15 | % | 2.26 | % | 2.25 | % | 2.15 | % | |||||
Interest and Fee Income Yield | 12.85 | % | 12.50 | % | 12.58 | % | 12.55 | % | 12.42 | % | |||||
Cost of Funds | 0.89 | % | 0.98 | % | 1.00 | % | 1.05 | % | 1.12 | % | |||||
Net Interest and Fee Margin | 11.96 | % | 11.52 | % | 11.58 | % | 11.50 | % | 11.30 | % | |||||
Average Total Finance Receivables | $ | 641,020 | $ | 656,942 | $ | 679,252 | $ | 706,039 | $ | 732,346 | |||||
Average Net Investment Equipment Finance | $ | 639,713 | $ | 653,497 | $ | 672,198 | $ | 695,683 | $ | 718,601 | |||||
Average Funding Stream Loans | $ | 1,307 | $ | 3,445 | $ | 7,054 | $ | 10,356 | $ | 13,745 | |||||
End of Period Net Investment Equipment Finance | $ | 656,796 | $ | 677,491 | $ | 693,510 | $ | 718,631 | $ | 743,914 | |||||
End of Period Funding Stream Loans | $ | 2,457 | $ | 4,941 | $ | 8,616 | $ | 12,119 | $ | 15,508 | |||||
Portfolio Asset Quality: | |||||||||||||||
Total Finance Receivables | |||||||||||||||
30+ Days Past Due Delinquencies | 0.75 | % | 0.73 | % | 0.85 | % | 0.71 | % | 0.78 | % | |||||
30+ Days Past Due Delinquencies | $ | 5,562 | $ | 5,618 | $ | 6,698 | $ | 5,850 | $ | 6,751 | |||||
60+ Days Past Due Delinquencies | 0.43 | % | 0.41 | % | 0.52 | % | 0.43 | % | 0.45 | % | |||||
60+ Days Past Due Delinquencies | $ | 3,186 | $ | 3,163 | $ | 4,114 | $ | 3,548 | $ | 3,885 | |||||
Equipment Finance | |||||||||||||||
30+ Days Past Due Delinquencies | 0.75 | % | 0.74 | % | 0.86 | % | 0.72 | % | 0.80 | % | |||||
30+ Days Past Due Delinquencies | $ | 5,562 | $ | 5,618 | $ | 6,698 | $ | 5,850 | $ | 6,751 | |||||
60+ Days Past Due Delinquencies | 0.43 | % | 0.41 | % | 0.53 | % | 0.44 | % | 0.46 | % | |||||
60+ Days Past Due Delinquencies | $ | 3,186 | $ | 3,163 | $ | 4,114 | $ | 3,548 | $ | 3,885 | |||||
Funding Stream Loans | |||||||||||||||
15+ Days Past Due Delinquencies | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 44 | |||||
15+ Days Past Due Delinquencies | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.27 | % | |||||
30+ Days Past Due Delinquencies | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||
30+ Days Past Due Delinquencies | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||
Net Charge-offs - Total Finance Receivables | $ | 1,965 | $ | 2,628 | $ | 2,297 | $ | 2,429 | $ | 2,494 | |||||
% on Average Total Finance Receivables | |||||||||||||||
Annualized | 1.23 | % | 1.60 | % | 1.35 | % | 1.38 | % | 1.36 | % | |||||
Net Charge-offs - Equipment Finance | $ | 1,952 | $ | 2,628 | $ | 2,220 | $ | 2,331 | $ | 2,456 | |||||
% on Average Net Investment in Equipment Finance | |||||||||||||||
Annualized | 1.22 | % | 1.61 | % | 1.32 | % | 1.34 | % | 1.37 | % | |||||
Net Charge-offs - Funding Stream Loans | $ | 13 | $ | 0 | $ | 77 | $ | 98 | $ | 38 | |||||
% of Average Funding Stream Loans | |||||||||||||||
Annualized | 4.11 | % | n/a | 4.39 | % | 3.77 | % | 1.11 | % | ||||||
Total Allowance for Credit Losses | $ | 8,588 | $ | 8,413 | $ | 9,191 | $ | 9,430 | $ | 10,073 | |||||
% of Total Finance Receivables | 1.31 | % | 1.24 | % | 1.31 | % | 1.30 | % | 1.33 | % | |||||
% of 60+ Delinquencies | 269.55 | % | 265.98 | % | 223.41 | % | 265.78 | % | 259.28 | % | |||||
Allowance for Credit Losses - Equipment Finance | $ | 8,518 | $ | 8,239 | $ | 8,906 | $ | 8,926 | $ | 9,328 | |||||
% of Net Investment Equipment Finance | 1.30 | % | 1.22 | % | 1.29 | % | 1.25 | % | 1.26 | % | |||||
% of 60+ Delinquencies | 267.37 | % | 260.49 | % | 216.47 | % | 251.58 | % | 240.10 | % | |||||
Allowance for Credit Losses - Funding Stream Loans | $ | 69 | $ | 174 | $ | 285 | $ | 503 | $ | 745 | |||||
% of Total Funding Stream Loans | 2.80 | % | 3.49 | % | 3.26 | % | 4.03 | % | 4.63 | % | |||||
% of 60+ Delinquencies | n/a | n/a | n/a | n/a | n/a | ||||||||||
90+ Day Delinquencies (Non-earning total finance receivables) | $ | 1,684 | $ | 1,677 | $ | 2,352 | $ | 1,771 | $ | 2,022 | |||||
Expense Ratios: | |||||||||||||||
Salaries and Benefits Expense | $ | 7,058 | $ | 9,884 | $ | 8,200 | $ | 7,812 | $ | 7,817 | |||||
Salaries and Benefits Expense | |||||||||||||||
Annualized % of Avg. Fin. Recbl. | 4.40 | % | 6.02 | % | 4.83 | % | 4.43 | % | 4.27 | % | |||||
Total personnel end of quarter | 307 | 314 | 309 | 315 | 318 | ||||||||||
General and Administrative Expense | $ | 4,357 | $ | 4,671 | $ | 4,465 | $ | 4,628 | $ | 4,980 | |||||
General and Administrative Expense | |||||||||||||||
Annualized % of Avg. Fin. Recbl. | 2.72 | % | 2.84 | % | 2.63 | % | 2.62 | % | 2.72 | % | |||||
Efficiency Ratio | 53.81 | % | 68.99 | % | 58.23 | % | 55.63 | % | 54.87 | % | |||||
Balance Sheet: | |||||||||||||||
Assets | |||||||||||||||
Investment in Leases and Loans | $ | 657,143 | $ | 679,737 | $ | 699,672 | $ | 727,707 | $ | 756,144 | |||||
Initial Direct Costs and Fees | 10,697 | 11,108 | 11,645 | 12,473 | 13,351 | ||||||||||
Reserve for Credit Losses | (8,588 | ) | (8,413 | ) | (9,191 | ) | (9,430 | ) | (10,073 | ) | |||||
Net Investment in Leases and Loans | $ | 659,252 | $ | 682,432 | $ | 702,126 | $ | 730,750 | $ | 759,422 | |||||
Cash and Cash Equivalents | 105,218 | 60,129 | 65,093 | 78,767 | 77,625 | ||||||||||
Restricted Cash | 389 | 216 | 112 | 26 | - | ||||||||||
Other Assets | 25,595 | 30,207 | 33,775 | 32,248 | 31,954 | ||||||||||
Total Assets | $ | 790,454 | $ | 772,984 | $ | 801,106 | $ | 841,791 | $ | 869,001 | |||||
Liabilities | |||||||||||||||
Deposits | 579,625 | 587,940 | 612,721 | 650,429 | 676,920 | ||||||||||
Other Liabilities | 59,515 | 34,906 | 35,909 | 35,677 | 33,413 | ||||||||||
Total Liabilities | $ | 639,140 | $ | 622,846 | $ | 648,630 | $ | 686,106 | $ | 710,333 | |||||
Stockholders' Equity | |||||||||||||||
Common Stock | $ | 126 | $ | 124 | $ | 125 | $ | 125 | $ | 126 | |||||
Paid-in Capital, net | 84,002 | 81,701 | 82,054 | 82,516 | 82,890 | ||||||||||
Other Comprehensive Income (Loss) | (27 | ) | (129 | ) | (49 | ) | (22 | ) | (5 | ) | |||||
Retained Earnings | 67,213 | 68,442 | 70,346 | 73,066 | 75,657 | ||||||||||
Total Stockholders' Equity | $ | 151,314 | $ | 150,138 | $ | 152,476 | $ | 155,685 | $ | 158,668 | |||||
Total Liabilities and | |||||||||||||||
Stockholders' Equity | $ | 790,454 | $ | 772,984 | $ | 801,106 | $ | 841,791 | $ | 869,001 | |||||
Capital and Leverage: | |||||||||||||||
Equity | $ | 151,314 | $ | 150,138 | $ | 152,476 | $ | 155,685 | $ | 158,668 | |||||
Debt to Equity | 3.83 | 3.92 | 4.02 | 4.18 | 4.27 | ||||||||||
Equity to Assets | 19.14 | % | 19.42 | % | 19.03 | % | 18.49 | % | 18.26 | % | |||||
Regulatory Capital Ratios: | |||||||||||||||
Tier 1 Leverage Capital | 19.72 | % | 19.63 | % | 19.39 | % | 18.90 | % | 18.53 | % | |||||
Common Equity Tier 1 Risk-based Capital | 21.54 | % | 20.86 | % | 20.51 | % | 20.14 | % | 19.77 | % | |||||
Tier 1 Risk-based Capital | 21.54 | % | 20.86 | % | 20.51 | % | 20.14 | % | 19.77 | % | |||||
Total Risk-based Capital | 22.76 | % | 22.02 | % | 21.74 | % | 21.36 | % | 21.02 | % | |||||
Notes: | |||||||||||||||
Net investment in total finance receivables includes net investment in direct financing leases and loans. | |||||||||||||||
Equipment Finance consists of equipment leases and loans. | |||||||||||||||
Funding Stream Loans consist of small business loans. |
Investor Contacts:
Taylor Kamp
Senior Vice President & Chief Financial Officer
856-505-4108
Lasse Glassen
Addo Investor Relations
lglassen@addoir.com
424-238-6249