Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document period end date | Dec. 31, 2015 | ||
Amendment flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current fiscal year end date | --12-31 | ||
Entity central index key | 1,260,968 | ||
Entity current reporting status | Yes | ||
Entity filer category | Accelerated Filer | ||
Entity registrant name | MARLIN BUSINESS SERVICES CORP. | ||
Entity voluntary filers | No | ||
Entity well known seasoned issuer | No | ||
Entity common stock shares outstanding | 12,492,262 | ||
Entity public float | $ 157,523,279 | ||
Trading Symbol | MRLN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 4,946,000 | $ 2,437,000 |
Interest-earning deposits with banks | 55,183,000 | 108,219,000 |
Total cash and cash equivalents | 60,129,000 | 110,656,000 |
Time deposits with banks | 7,368,000 | 0 |
Restricted interest-earning deposits with banks | 216,000 | 711,000 |
Securities available for sale (amortized cost of $6.6 million and $5.8 million at December 31, 2015 and 2014, respectively) | 6,399,000 | 5,722,000 |
Net investment in leases and loans | 682,432,000 | 629,507,000 |
Property and equipment, Net | 3,872,000 | 2,846,000 |
Property tax receivables | 47,000 | 690,000 |
Other assets | 12,521,000 | 8,317,000 |
Total assets | 772,984,000 | 758,449,000 |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Deposits | 587,940,000 | 550,119,000 |
Other liabilities: | ||
Sales and property taxes payable | 2,686,000 | 2,739,000 |
Accounts payable and accrued expenses | 15,371,000 | 14,406,000 |
Net Deferred Income Tax Liability | 16,849,000 | 17,221,000 |
Total liabilities | 622,846,000 | 584,485,000 |
Stockholders' equity: | ||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,410,899 and 12,838,449 shares issued and outstanding at December 31, 2015 and 2014, respectively | 124,000 | 128,000 |
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 81,703,000 | 89,130,000 |
Stock subscription receivable | (2,000) | (2,000) |
Accumulated other comprehensive income | (129,000) | (17,000) |
Retained earnings | 68,442,000 | 84,725,000 |
Total stockholders' equity | 150,138,000 | 173,964,000 |
Total liabilities and stockholders' equity | $ 772,984,000 | $ 758,449,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Available-for-sale securities, amortized cost | $ 6.6 | $ 5.8 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 12,410,899 | 12,838,449 |
Common stock shares outstanding | 12,410,899 | 12,838,449 |
Preferred stock - par or stated value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Operations | |||
Interest income | $ 66,662 | $ 66,764 | $ 63,685 |
Fee income | 15,291 | 14,920 | 13,390 |
Interest and fee income | 81,953 | 81,684 | 77,075 |
Interest expense | 5,696 | 4,965 | 4,545 |
Net interest and fee income | 76,257 | 76,719 | 72,530 |
Provision for credit losses | 9,995 | 9,116 | 9,617 |
Net interest and fee income after provision for credit losses | 66,262 | 67,603 | 62,913 |
Other income: | |||
Insurance income | 5,940 | 5,463 | 4,924 |
Gain (loss) on derivatives | 0 | 0 | (2) |
Other income | 1,869 | 1,614 | 1,676 |
Other income, total | 7,809 | 7,077 | 6,598 |
Other expense: | |||
Salaries and benefits | 31,174 | 26,628 | 27,680 |
General and administrative | 17,451 | 15,606 | 14,725 |
Financing related costs | 218 | 1,174 | 1,106 |
Other expense | 48,843 | 43,408 | 43,511 |
Income before income taxes | 25,228 | 31,272 | 26,000 |
Income tax expense | 9,262 | 11,922 | 9,769 |
Net income | $ 15,966 | $ 19,350 | $ 16,231 |
Basic earnings per share | $ 1.25 | $ 1.5 | $ 1.26 |
Diluted earnings per share | $ 1.25 | $ 1.49 | $ 1.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | Jun. 30, 2015 | [1] | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive Income | |||||||||||||
Net income | $ 2,965 | $ 4,797 | $ 4,149 | $ 4,055 | $ 4,867 | $ 4,904 | $ 4,936 | $ 4,643 | $ 15,966 | $ 19,350 | $ 16,231 | ||
Other Comprehensive Income | |||||||||||||
Increase (decrease) in fair value of securities available for sale | (181) | 388 | (506) | ||||||||||
Tax effect | 69 | (148) | 194 | ||||||||||
Total other comprehensive income | (112) | 240 | (312) | ||||||||||
Comprehensive Income | $ 15,854 | $ 19,590 | $ 15,919 | ||||||||||
[1] | Net income for the second quarter of 201 5 reflects an after-tax adjustment charge of approximately $0. 2 million, o r $0. 02 diluted earnings per share , due to the departure of the Company’s Chief Financial Officer. Net income for the fourth quarter of 201 5 reflects an after-tax adjustment charge of approximately $ 2.0 million, o r $0.1 6 diluted earnings per share , due to the departure of the Company’s Chief Executive Officer. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Stock Subscription Receivable [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2012 | $ 174,250,000 | $ 128,000 | $ 87,494,000 | $ (2,000) | $ 55,000 | $ 86,575,000 |
Balance, Shares at Dec. 31, 2012 | 12,774,829 | |||||
Issuance of common stock | 270,000 | $ 0 | 270,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 14,727 | |||||
Repurchase of common stock | (1,168,000) | $ (1,000) | (1,167,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (53,988) | |||||
Exercise of stock options | $ 1,524,000 | $ 1,000 | 1,523,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 127,957 | 127,957 | ||||
Excess tax benefits from stock-based payment arrangements | $ 1,052,000 | $ 0 | 1,052,000 | 0 | 0 | 0 |
Stock option compensation recognized | 188,000 | 0 | 188,000 | 0 | 0 | 0 |
Payment of receivables | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted stock grant | 0 | $ 2,000 | (2,000) | 0 | 0 | 0 |
Restricted stock grant, shares | 131,233 | |||||
Restricted stock compensation recognized | 2,372,000 | $ 0 | 2,372,000 | 0 | 0 | 0 |
Net change related to derivatives, net of tax | 0 | 0 | 0 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | (312,000) | 0 | 0 | 0 | (312,000) | 0 |
Net income | 16,231,000 | 0 | 0 | 0 | 0 | 16,231,000 |
Cash dividends paid | (31,369,000) | (31,369,000) | ||||
Balance at Dec. 31, 2013 | 163,038,000 | $ 130,000 | 91,730,000 | (2,000) | (257,000) | 71,437,000 |
Balance, Shares at Dec. 31, 2013 | 12,994,758 | |||||
Issuance of common stock | 253,000 | $ 0 | 253,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 14,428 | |||||
Repurchase of common stock | (5,727,000) | $ (3,000) | (5,724,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (283,064) | |||||
Exercise of stock options | $ 154,000 | $ 0 | 154,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 14,469 | 14,469 | ||||
Excess tax benefits from stock-based payment arrangements | $ 754,000 | $ 0 | 754,000 | 0 | 0 | 0 |
Stock option compensation recognized | 7,000 | 0 | 7,000 | 0 | 0 | 0 |
Restricted stock grant | 0 | $ 1,000 | (1,000) | 0 | 0 | 0 |
Restricted stock grant, shares | 97,858 | |||||
Restricted stock compensation recognized | 1,957,000 | $ 0 | 1,957,000 | 0 | 0 | 0 |
Net change related to derivatives, net of tax | 0 | 0 | 0 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | 240,000 | 0 | 0 | 0 | 240,000 | 0 |
Net income | 19,350,000 | 0 | 0 | 0 | 0 | 19,350,000 |
Cash dividends paid | (6,062,000) | 0 | 0 | 0 | 0 | (6,062,000) |
Balance at Dec. 31, 2014 | $ 173,964,000 | $ 128,000 | 89,130,000 | (2,000) | (17,000) | 84,725,000 |
Balance, Shares at Dec. 31, 2014 | 12,838,449 | 12,838,449 | ||||
Issuance of common stock | $ 234,000 | $ 0 | 234,000 | 0 | 0 | 0 |
Issuance of common stock, shares | 14,929 | |||||
Repurchase of common stock | (11,320,000) | $ (7,000) | (11,313,000) | 0 | 0 | 0 |
Repurchase of common stock, shares | (659,903) | |||||
Exercise of stock options | $ 586,000 | $ 1,000 | 585,000 | 0 | 0 | 0 |
Exercise of stock options, shares | 61,937 | 61,937 | ||||
Excess tax benefits from stock-based payment arrangements | $ 333,000 | $ 0 | 333,000 | 0 | 0 | 0 |
Stock option compensation recognized | 108,000 | 0 | 108,000 | 0 | 0 | 0 |
Restricted stock grant | 0 | $ 2,000 | (2,000) | 0 | 0 | 0 |
Restricted stock grant, shares | 155,487 | |||||
Restricted stock compensation recognized | 2,628,000 | $ 0 | 2,628,000 | 0 | 0 | 0 |
Net change in unrealized gain/loss on securities available for sale, net of tax | (112,000) | 0 | 0 | 0 | (112,000) | 0 |
Net income | 15,966,000 | 0 | 0 | 0 | 0 | 15,966,000 |
Cash dividends paid | (32,249,000) | 0 | 0 | 0 | 0 | (32,249,000) |
Balance at Dec. 31, 2015 | $ 150,138,000 | $ 124,000 | $ 81,703,000 | $ (2,000) | $ (129,000) | $ 68,442,000 |
Balance, Shares at Dec. 31, 2015 | 12,410,899 | 12,410,899 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statements Of Stockholders Equity [Abstract] | ||||||||||||
Cash dividends declared and paid per share | $ 0.14 | $ 2.14 | [1] | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.11 | $ 0.11 | $ 2.53 | $ 0.47 | $ 2.42 |
[1] | I n addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 1 4, 201 5 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 15,966 | $ 19,350 | $ 16,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,684 | 1,612 | 1,816 |
Stock-based compensation | 2,736 | 1,964 | 2,560 |
Excess tax benefits from stock-based payment arrangements | (333) | (754) | (1,052) |
Change in fair value of derivatives | 0 | 0 | 2 |
Provision for credit losses | 9,995 | 9,116 | 9,617 |
Net deferred income taxes | (382) | (848) | (57) |
Amortization of deferred initial direct costs and fees | 7,530 | 7,263 | 6,774 |
Deferred initial direct costs and fees | (8,515) | (7,096) | (7,762) |
Loss on equipment disposed | 537 | 1,405 | 2,384 |
Gain on Leases Sold | (76) | 0 | 0 |
Leases originated for sale | (3,589) | 0 | 0 |
Proceeds from sale of leases | 3,665 | 0 | 0 |
Effect of changes in other operating items: | |||
Other assets | (3,598) | 1,682 | 13,878 |
Other liabilities | 1,001 | (1,025) | 1,529 |
Net cash provided by (used in) operating activities | 26,621 | 32,669 | 45,920 |
Cash flows from investing activities: | |||
Net change in time deposits with banks | (7,368) | 0 | 0 |
Purchases of equipment for direct financing lease contracts and funds used to originate loans | (381,295) | (335,272) | (349,915) |
Principal collections on leases and loans | 315,847 | 288,864 | 241,538 |
Security deposits collected, net of refunds | (392) | (31) | (147) |
Proceeds from the sale of equipment | 3,368 | 3,319 | 3,453 |
Acquisitions of property and equipment | (2,350) | (1,614) | (1,011) |
Change in restricted interest-earning deposits with banks | 495 | 562 | 2,247 |
Purchases of securities available for sale | (858) | 53 | (1,047) |
Net cash provided by (used in) investing activities | (72,553) | (44,119) | (104,882) |
Cash flows from financing activities: | |||
Increase in deposits | 37,821 | 47,081 | 124,850 |
Warehouse and bank facility repayments | 0 | 0 | (15,514) |
Issuances of common stock | 234 | 253 | 270 |
Repurchases of common stock | (11,320) | (5,727) | (1,168) |
Dividends paid | (32,249) | (6,062) | (31,369) |
Exercise of stock options | 586 | 154 | 1,524 |
Excess tax benefits from stock-based payment arrangements | 333 | 754 | 1,052 |
Net cash provided by (used in) financing activities | (4,595) | 36,453 | 79,645 |
Net increase (decrease) in total cash and cash equivalents | (50,527) | 25,003 | 20,683 |
Total cash and cash equivalents, beginning of period | 110,656 | 85,653 | 64,970 |
Total cash and cash equivalents, end of period | 60,129 | 110,656 | 85,653 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest on deposits and borrowings | 5,118 | 4,258 | 3,474 |
Net cash paid for income taxes | $ 13,309 | $ 10,243 | $ (5,471) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2015 | |
The Company [Abstract] | |
The Company | NOTE 1 - The Company Marlin Business Services Corp. (the “Company”) is a bank holding company and a financial holding company regulated by the Federal Reserve Board under the Bank Holding Company Act. The Company was incorporated in the Commonwealth of Pennsylvania on August 5, 2003. Through its principal operating subsidiary, Marlin Leasing Corporation (“MLC”), the Company provides equipment financing solutions nationwide, primarily to small and mid-sized businesses in a segment of the equipment leasing market commonly referred to in the industry as the “small-ticket” segment. The Company finances over 100 categories of commercial equipment important to its end user customers including copiers, security systems, computers, telecommunications equipment an d certain commercial and industrial equipment . In May 2000, we established AssuranceOne , Ltd., a Bermuda -based, wholly-owned captive insurance subsidiary, which enables us to reinsure the property insurance coverage for the equipment financed by MLC and Ma rlin Business Bank (“MBB”) for our end user 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 . References to the “Company,” “Marlin,” “Registrant,” “we,” “us” and “o ur” 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 | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - Summary of Significant Accounting Policies Basis of Financial Statement Presentation The 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 similar economic characteristics, share the same leasing and loan portfolio and have the same product offerings. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“ U.S. GAAP ”) requires management to make estimates and assumptions that affect 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 , self-insurance reserves, and income taxes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and interest-bearing money market funds. For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Time Deposits with Banks Time deposits with banks are composed of FDIC-insured certificates of deposits that generally have original maturity dates of greater than 90 days. These deposits are held on the balance sheet at amortized cost. Generally, the certificates of deposits have the ability to redeem early; however early redemption penalties may be incurred. Restricted Interest- E arning Deposits with Banks Restricted interest-earning deposits with banks consist primarily of an interest-earning trust account related to the Company’s secured debt facilit y . The balance also includes amounts received from securitizations representing reimbursements of servicing fees and excess spread income. Net Investment in Leases and Loans As required by U.S. GAAP, the Company uses the direct finance method of accounting to record its direct financing leases and related interest income. At the inception of a lease, the Company records as an asset, the aggregate future minimum lease payments receivable, plus the estimated residual value of the leased equipment, less unearned lease income. Residual values are established at lease inception based on our estimate of the expected fair value of the equipment at the end of the lease term. Residual values may be realized at lease termination from lease extensions, sales or other dispositions of leased equipment. Estimates are based on industry data, management’s experience, and historical performance. The Company records an estimated residual value at lease inception for all fair market value and fixed purchase option leases based on a percentage of the equipment cost of the asset being leased. The percentages used depend on equipment type and term. In setting estimated residual values, the Company focuses its analysis primarily on the Company’s total historical and expected realization statistics pertaining to sales of equipment. In subsequent evaluations for the impairment of the booked residual values, the Company reviews historical realization statistics including lease renewals and equipment sales. Anticipated renewal income is not included in the determination of fair value; however, it is one of the ways that fair value may be realized at the end of the lease term. At the end of an original lease term, lessees may choose to purchase the equipment, renew the lease or return the equipment to the Company. The Company receives income from lease renewals when the lessee elects to retain the equipment longer than the original term of the lease. This income, net of appropriate periodic reductions in the estimated residual values of the related equipment, is included in fee income as net residual income. When a lessee elects to return equipment at lease termination, the equipment is transferred to other assets at the lower of its basis or fair market value. The Company generally sells returned equipment to independent third parties, rather than leasing the equipment a second time. The Company generally charges off the value of equipment in other assets for longer than 120 days. Any loss recognized on transferring equipment to other assets and any gain or loss realized on the sale or disposal of equipment to a lessee or to others is included in fee income as net residual income. Based on the Company’s experience, the amount of ultimate realization of the residual value tends to relate more to the customer’s election at the end of the lease term to enter into a renewal period, to purchase the leased equipment or to return the leased equipment than it does to the equipment type. Management performs reviews of the estimated residual values and historic realization statistics no less frequently than quarterly and any impairment, if other than temporary, is recognized in the current period. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. Unearned lease income is the amount by which the total lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income, net of initial direct costs and fees, is recognized as revenue over the lease term using the effective interest method. Allowance for Credit Losses In accordance with the Contingencies Topic of the FASB ASC, we maintain 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 projection of probable net credit losses. We evaluate our portfolios on a pooled basis, due to their composition of small balance, homogenous accounts with similar general credit risk characteristics, diversified among a large cross-section of variables including industry, geography, equipment type, obligor and vendor. We generally consider both quantitative and qualitative factors in determining the allowance for credit losses. Quantitative factors considered include a migration analysis stratified by industry classification , historic delinquencies and charge-offs, and a static pool analysis of historic recoveries. A migration analysis is a technique used to estimate the likelihood that an account will progress through the various delinquency stages and ultimately charge off . As part of our quantitative analysis we may also consider specifically identified pools of leases separately from the migration analysis, whenever certain identified pools are not expected to perform consistently with their credit characteristics or the portfolio as a whole. These lease pools may be analyzed for impairment separately from the migration analysis and a specific reserve established. Qualitative factors that may result in further adjustments to the quantitative analysis include items such as changes in the composition of our lease and loan portfolios (including geography, industry, equipment type and vendor source) , seasonality, economic or business conditions and other external factors, business practices or policies at the reporting date that are different from the periods used in the quantitative analysis and changes in experience and ability of leasing and lending management and other relevant staff. . The various factors used in the analysis are reviewed periodically, and no less frequently than quarterly. We then establish an allowance for credit losses for the projected probable net credit losses inherent in the portfolio based on this analysis. A provision is charged against earnings to maintain the allowance for credit losses at the appropriate level. Our policy is to generally charge-off against the allowance the estimated unrecoverable portion of accounts once they reach 12 0 or more days delinquent. Our projections of probable net credit losses are inherently uncertain, and as a result we cannot predict with certainty the amount of such losses. Changes in economic conditions, the risk characteristics and composition of the portfolio, bankruptcy laws, and other factors could impact our actual and projected net credit losses and the related allowance for credit losses. To the extent we add new leases and loans to our portfolios, or to the degree credit quality is worse than expected, we record expense to increase the allowance for credit losses to reflect the estimated net losses inherent in our portfolios. Actual losses may vary from current estimates. Property and Equipment The Company records property and equipment at cost. Equipment capitalized under capital leases is recorded at the present value of the minimum lease payments due over the lease term. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or lease term, whichever is shorter. The Company generally uses depreciable lives that range from three to seven years based on equipment type. Other Asset s Included in other assets on the Consolidated Balance Sheets are income taxes receivable, prepaid expenses, ac crued fee income , progress payments on equipment purchased to lease and Federal Reserve Bank stock. Interest I ncome Interest income is recognized under the effective interest method. The effective interest method of income recognition applies a constant rate of interest equal to the internal rate of return on each lease at inception. The Company’s lease portfolio consists of homogenous small balance accounts with an average balance less than $ 10,000 across a large cross section of credit variables such as state, equipment type, obligor, vendor and industry category. Based on the historical payment behavior of the Company’s lease portfolio as a whole, payments are considered reasonably assured when a lease’s delinquency status is less than 90 days. Therefore, when a lease or loan is 90 days or more delinquent, the contract is classified as non-accrual and interest income recognition is discontinued. Interest income recognition resumes on a contract when the lessee or borrower makes payments sufficient to bring the contract’s status to less than 90 days delinquent. Modifications resulting in renegotiated leases may include reductions in payment and extensions in term. However, such renegotiated leases are not granted concessions regarding implicit rates or reductions in total amounts due. Modifications may be granted on a one-time basis in situations that indicate the lessee is experiencing a temporary, timing issue and has a high likelihood of success with a revised payment plan. After a modification, a lease or loan’s accrual status is based on compliance with the modified terms. Fee Income Fee income consists of fees for delinquent lease and loan payments, cash collected on early termination of leases and net residual income. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of a lease’s term. Residual income is recognized as earned. Fee income from delinquent lease payments is recognized on an accrual basis based on anticipated collection rates. At a minimum of every quarter, an analysis of anticipated collection rates is performed based on updates to collection history. Adjustments in the anticipated collection rate assumptions are made as needed based on this analysis. Other fees are recognized when received. Insurance Income Insurance income is recognized on an accrual basis as earned over the term of each lease. Generally, insurance payments that are 120 days or more past due are charged against income. Ceding commissions, losses and loss adjustment expenses are recorded in the period incurred and netted against insurance income. Loss on Derivatives Changes in the fair value of derivative instruments are recognized immediately in loss on derivatives. Other Income Other income includes various administrative transaction fees and fees received from referral of leases to third parties and gain on sale of leases, recognized as earned. Securities A vailable for S ale Securities available for sale consist of mutual funds and municipal bonds that are measured at fair value on a recurring basis. Unrealized holding gains or losses of all securities available for sale, net of related deferred income taxes, are reported in accumulated other comprehensive income. Fair value measurement is based upon quoted prices in active markets, if available. If quoted prices in active markets are not available, fair values are based on prices obtained from third-party pricing vendors. See Note 11 for more information on fair value measurement of securities . Initial D irect C osts and F ees We defer initial direct costs incurred and fees received to originate our leases and loans in accordance with the Receivables Topic and the Nonrefundable Fees and Other Costs Subtopic of the FASB ASC . The initial direct costs and fees we defer are part of the net investment in leases and loans and are amortized to interest income using the effective interest method. We defer third - party commission costs , as well as certain internal costs directly related to the origination activity. C osts subject to deferral include evaluating each prospective customer’s financial condition, evaluating and recording guarantees and other security arrangements, negotiating terms, preparing and processing documents and closing each transaction. The fees we defer are documentation fees collected at inception. The realization of the initial direct costs, net of fees deferred, is predicated on the net future cash flows generated by our lease and loan portfolios. Common Stock and Equity On November 2, 2007, the Company’s Board of Directors approved the 2007 Repurchase Plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock. On July 29, 2014, the Company’s Board of Directors approved the 2014 Repurchase Plan to replace the 2007 Repurchase Plan. Under the 2014 Repurchase Plan, the Company is authorized to repurchase up to $15 million in value of its outstanding shares of common stock on the open market. The par value of the shares repurchased is charged to common stock with the excess of the purchase price over par charged against any available additional paid-in capital. Financing Related Costs Financing related costs primarily consi st of bank commitment fees paid to our financing sources on the unused portion of our loan facility. These fees are recognized as incurred . Stock-Based Compensation The Compensation—Stock Compensation Topic of the FASB ASC establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees and non-employees , except for equity instruments held by employee share ownership plans. The Company measures stock-based compensation cost at grant date, based on the fair value of the awards ultimately expected to vest. Stock-based co mpensation expense is recognized on a straight-line basis over the service period . We generally use the Black-Scholes valuation model to measure the fair value of our stock options utilizing various assumptions with respect to expected holding period, risk-free interest rates, stock price volatility, and dividend yield . The assumptions are based on management’s judgment concerning future events. Based on the October 28, 2009 amendment to the 2003 Equity Compensation Plan, the fair value calculations for the one-time stock option exchange program were based on a binomial valuation model which considered many variables, such as the volatility of our stock and the expected term of an option, including consideration of the ratio of stock price to the exercise price at which exercise is expected to occur. The binomial valuation model was used for both the surrendered stock options and the new replacement options under the stock option exchange program. As required by U.S. GAAP, the Company uses its judgment in estimating the amount of awards that are expected to be forfeited, with subsequent revisions to the assumptions if actual forfeitures differ from those estimates. The vesting of certain restricted 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. Non-forfeitable dividends paid on shares of restricted stock are recorded to retained earnings for shares that are expected to vest and to compensation expense for shares that are not expected to vest. Self-Insurance Beginning in 2014, t he Company assumed financial risk for providing health care benefits to its employees through a self-insured group health plan. We estimate the liabilities associated with this risk by considering historical claims experience. Income Taxes The Income Taxes Topic of the FASB ASC requires the use of the asset and liability method under which deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities, given the provisions of the enacted tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax liabilities and projected future taxable income, the level of historical taxable income, projections for future taxable income over the periods which the deferred tax assets are deductible and available tax planning strategies . Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items, such as leases , for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the Consolidated Balance Sheets. M anagement then assess es the likelihood that deferred tax assets will be recovered from future taxable income or tax carry-back availability and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish a valuation allowance in a period, an expense is recorded within the tax provision in the Consolidated Statement s of Operations. At December 31, 2015 and 2014 , there were no uncertain tax positions . The periods subject to examination for the Company’s federal return include the 20 12 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 20 12 through the present are subject to examination. As of December 31, 2015 , the Company has a net receiv able balance of $ 4.4 million , due to estimated payments exceeding the calculated liability . The Company records penalties and accrued interest related to taxes, including penalties and interest related to uncertain tax positions , in income tax expense. Uncertain tax positions are recognized when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on merits of the position. We concluded that there are no significant uncertain tax positions requiring recognition in our financial statements and we did not have any accrued interest or penalties associated with uncertain tax positions. 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”) is calculated using the two-class method, under which earnings are allocated to both common shares and participating securities. All shares of restricted stock are deducted from the weighted average shares outstanding for the computation of basic EPS. Diluted EPS is computed based on the weighted average number of common shares outstanding for the period 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 or converted. Recent Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date for ASU 2014-09, Revenue from Contracts with Customers . The amendments in this Update defer the effective date of Update 2014-09 by one year. The guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this Update require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) . The purpose of this Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. |
Net Investment in Leases and Lo
Net Investment in Leases and Loans | 12 Months Ended |
Dec. 31, 2015 | |
Net Investment in Leases and Loans [Abstract] | |
Net Investment in Leases and Loans | NOTE 3 - Net Investment in Leases and Loans Net investment in leases and loans consists of the following: December 31, 2015 2014 (Dollars in thousands) Minimum lease payments receivable $ 761,694 $ 710,801 Estimated residual value of equipment 27,364 27,458 Unearned lease income, net of initial direct costs and fees deferred (102,358) (98,738) Security deposits (2,208) (2,600) Loans, including unamortized deferred fees and costs 6,353 1,123 Allowance for credit losses (8,413) (8,537) $ 682,432 $ 629,507 At December 31, 2015 , a total of $0.2 million of minimum lease payments receivable is assigned as collateral for the borrowing facility. At December 31, 2015 , there is no amount outstanding under this borrowing facility and the unused borrowing capacity is $ 50 .0 million. In addition, $ 35.4 million in net investment in leases are pledged as collateral for the secured borrowing capacity at the Federal Reserve Disc ount Window. Initial direct costs, net of fees deferred, which were $11.1 million and $10.1 million as of December 31, 2015 and December 31, 2014 , respectively, are netted in unearned income and will be amortized to income using the effective interest method. A t December 31, 2015 and December 31, 2014 , $22.7 million and $22.0 million, respectively, of the estimated residual value of equipment retained on our Consolidated Balance Sheets was related to copiers. Minimum lease payments receivable under lease contracts and the amortization of unearned lease income, including initial direct costs and fees deferred, are as follows as of December 31, 2015 : Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2016 $ 320,040 $ 53,224 2017 218,593 29,029 2018 129,975 13,667 2019 66,325 5,267 2020 25,170 1,110 Thereafter 1,591 61 $ 761,694 $ 102,358 As of December 31, 2015 and December 31, 2014 , the Company maintained total finance receivables which were on a non-accrual basis of $1.7 million. As of December 31, 2015 and December 31, 2014 , the Company had total finance receivables in which the terms of the original agreements had been renegotiated in the amount of $0.5 million and $1.0 million, respectively. (See Note 5 for additional asset quality information ) |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentrations of Risk [Abstract] | |
Concentrations of Risk | NOTE 4 - Concentrations of Risk As of December 31, 2015 , leases approximating 12% , 10% and 9% of the net investment balance of leases by the Company were located in the states of California , Florida and Texas , respectively. No other state accounted for more than 8% of the net investment balance of leases owned and serviced by the Company as of December 31, 2015 . As of December 31, 2015 , no single vendor source accounted for more than 2% of the net investment balance of leases owned by the Company. The largest single obligor accounted for less than 1% of the net investment balance of leases owned by the Company as of December 31, 2015 . Although the Company’s portfolio of leases includes lessees located throughout the United States , such lessees’ ability to honor their contracts may be substantially dependent on economic conditions in these states. All such contracts are collateralized by the related equipment. The Company leases to a variety of different industries, including the medical, retail, service, manufacturing and restaurant industries, among others. To the extent that the economic or regulatory conditions prevalent in such industries change, the lessees’ ability to honor their lease obligations may be adversely impacted. A s of December 31, 2015 , copiers comprised 83.1% of the estimated residual value of leased equipment. No other group of equipment represented more than 10% of equipment residuals as of December 31, 2015 . Improvements and other changes in technology could adversely impact the Company’s ability to realize the recorded value of this equipment. There were no impairments of estimated residual value recorded during the years ended December 31, 2015 , 2014 or 2013 . |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2015 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 5 - Allowance for Credit Losses In accordance with the Contingencies Topic of the FASB ASC, we maintain 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 net credit losses. The table which follows provides activity in the allowance for credit losses and asset quality statistics for each of the years ended December 31, 2015 , 2014 and 2013 . Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Allowance for credit losses, beginning of period $ 8,537 $ 8,467 $ 6,488 Charge-offs (12,453) (11,463) (9,499) Recoveries 2,334 2,417 1,861 Net charge-offs (10,119) (9,046) (7,638) Provision for credit losses 9,995 9,116 9,617 Allowance for credit losses, end of period (1) $ 8,413 $ 8,537 $ 8,467 Net charge-offs to average total finance receivables (2) 1.59% 1.50% 1.41% Allowance for credit losses to total finance receivables, end of period (2) 1.24% 1.36% 1.42% Average total finance receivables (2) $ 636,790 $ 602,923 $ 540,717 Total finance receivables, end of period (2) $ 679,738 $ 627,922 $ 595,253 Delinquencies greater than 60 days past due $ 3,163 $ 3,602 $ 3,204 Delinquencies greater than 60 days past due (3) 0.41% 0.51% 0.47% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 265.98% 237.01% 264.26% Non-accrual leases and loans, end of period $ 1,677 $ 1,742 $ 1,665 Renegotiated leases and loans, end of period $ 535 $ 1,014 $ 815 __________________ (1) At December 31, 2015 , the allowance for credit losses allocated to loans was $0 .2 million. At December 31, 2014 and 2013 , there was no allowance for credit losses allocated to loans. (2) Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of ( i ) the allowance for credit losses and ( ii ) initial direct costs and fees deferred are excluded. (3) Calculated as a percent of total minimum lease payments receivable for leases and as a percent of principal outstanding for loans. Net investments in finance receivables are generally charged-off when they are contractually past due for 12 0 or more days. Income recognition is discontinued on leases or loans when a default on monthly payment exists for a period of 90 days or more. Income recognition resumes when a lease or loan becomes less than 90 days delinquent. At December 31, 2015 and 2014 , there were no finance receivables past due 90 days or more and still accruing. Net charge-offs for the year ended December 31, 2015 were $10.1 million, or 1.59% of average total finance receivables, compared to $9.0 million, or 1.50% of average total finance receivables, for the year ended December 31, 2014 . The increase in net charge-offs during year ended December 31, 2015 compared to recent years is primarily due to the growth in average total finance receivables, the ongoing seasoning of the portfolio as reflected in the mix of origination vintages, the mix of credit profiles, and a slight increase in average charge-offs. Our key credit quality indicator is delinquency status. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment Disclosure | NOTE 6 - Property and Equipment, N et Property and equipment , net consist of the following: December 31, 2015 2014 Depreciable Life (Dollars in thousands) Furniture and equipment $ 2,798 $ 2,784 7 years Computer systems and equipment 12,922 10,690 3-5 years Leasehold improvements 1,185 1,170 Shorter of estimated useful life or remaining lease term Total property and equipment 16,905 14,644 Less - Accumulated depreciation and amortization (13,033) (11,798) Property and equipment, net $ 3,872 $ 2,846 Depreciation and amortization expense was $1.2 million , $0.9 million and $0.9 million for each of the years ended December 31, 2015, 2014 and 2013 , respectively . |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets | NOTE 7 - Other Assets Other assets are comprised of the following: December 31, 2015 2014 (Dollars in thousands) Accrued fees receivable $ 2,500 $ 2,465 Prepaid expenses 2,120 1,748 Income taxes receivable (See Note 12 for further discussion) 4,427 854 Other 3,474 3,250 $ 12,521 $ 8,317 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 8 - Commitments and Contingencies MBB is a member bank in a non-profit, multi-financial institution consortium serving as a catalyst for community development by offering flexible financing for affordable, quality housing to low- and moderate-income residents. Currently, MBB receives approximately 1 .2 % participation in each funded loan under the program. MBB records loans in its financial statements when they have been funded or become payable. Such loans help MBB satisfy its obligatio ns under the Community Reinvestment Act of 1977. At December 31, 2015 and 2014 , MBB had an unfunded commitment of $ 0. 9 million and $ 0 . 8 million, respectively, for this activity. Unless renewed prior to termination, MBB’s membership in the consortium will expir e in September 201 6 . The Company is involved in legal proceedings, which include claims, litigation and suits arising in the ordinary course of business. In the opinion of management, these actions will not have a material effect on the Company’s consolid ated balance sheet, statement of operations or cash flows . As of December 31, 2015 , the Company leases all eight of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Atlanta, Georgia ; Philadelphia, Pe nnsylvania ; Salt Lake City, Utah ; Portsmouth, New Hampshire; Highlands Ranch, Colorado; Aurora, Colorado; and Denver, Colorado . These lease commitments are accounted for as operating leases. The Company has entered into several capital leases to finance corporate property and equipment. The following is a schedule o f future minimum lease payments for capital and operating leases as of December 31, 2015 : Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2016 $ 102 $ 1,582 $ 1,684 2017 77 1,533 1,610 2018 — 1,478 1,478 2019 — 1,441 1,441 2020 — 689 689 Total minimum lease payments $ 179 $ 6,723 $ 6,902 Less: amount representing interest (9) Present value of minimum lease payments $ 170 Rent expense was $1.1 million, $1.0 million and $1.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
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. On February 23, 2014, MBB began offering the FDIC-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 clie nts of the partner bank and recorded as a single deposit account at MBB. As of December 31, 2015 , money market deposit accounts totaled $ 52 .7 million. As of December 31, 2015 , the remaining scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2016 $ 232,132 2017 170,370 2018 80,996 2019 31,896 2020 19,816 $ 535,210 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 outstanding at December 31, 2015 was 1.10% . |
Long-term Borrowings
Long-term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Borrowings | NOTE 10 - Long-term Borrowings Borrowings with an original maturity of one year or more are classified as long-term borrowings. The Company’s long-term loan facility is classified as long-term borrowings. The funding facility has a variable rate based on the London Interbank Offered Rate (“LIBOR”). The Company did not have any outstanding long term borrowings at December 31, 2015 and December 31, 2014 . For the years ended December 31, 2015, 2014 and 2013 , the Company incurred commitment fees on the unused portion of loan facilities of $0.1 million, $1.1 million , and $1.0 million , respectively. The decrease in the commitment fees is primarily due to ren e g o tiated rates in the loan and security agreement. T he Company ’s long-term borrowings would be collateralized by certain of the Company’s direct financing leases. The Company is restricted from selling, transferring or assigning the se leases or placing liens or pledges on these leases. At the end of each period, the Company has the following minimum lease payments receivable assigned as collateral: December 31, 2015 2014 (Dollars in thousands) Pledged Assets in Long-term Loan Facilities $ 151 $ 4,569 Federal Funds Line of Credit with Correspondent Bank MBB has established a federal funds line of credit with a correspondent bank. This line allows for both selling and purchasing of federal funds. The amount that can be drawn against the line is limited to $23.0 million . As of December 31, 2015 and 2014 , there were no balances outstanding on this line of credit. Federal Reserve Discount Window In addition, MBB has received approval to borrow from the Federal Reserve Discount Window based on the amount of assets MBB chooses to pledge. MBB had $32.4 million in unused, secured borrowing capacity at the Federal Reserve Discount Windo w, b ased on $3 5 .4 million of net investment in leases pledged at December 31, 2015 . Long-term L oan F acilit ies On October 9, 2009, Marlin Business Services Corp.’s wholly-owned subsidiary, Marlin Receivables Corp. (“ MRC ”) , closed on a $75 .0 million , three-year committed loan facility with the l ender finance division of Wells Fargo Capital Finance . The facility is secured by a lien on MRC’s assets and is supported by guaranties from Marlin Business Services Corp. and MLC. Advances under the facility are made pursuant to a borrowing base formula, and the proceeds are used to fund lease originations. O n April 8, 2015, the facility was amended to change the amount under the loan facility from $75.0 million to $50.0 million. O n October 6, 2015, the facility was amended to extend the maturity date to February 4, 2016. On February 4, 2016 , the facility was further amended to extend the maturity date to May 4, 2016 . A n event of default , such as non-payment of amounts when due under the loan agreement or a breach of covenants , may accelerate the maturity date of the facility . On September 24, 2010, the Company’s subsidiary , Marlin Leasing Receivables XIII LLC (“MLR XIII”), closed on a $50 .0 million three-year committed loan facility with Key Equipment Finance Inc. The facility is secured by a lien on MLR XIII’s assets. Advances under the facility are made pursuant to a borrowing base formula, and the proceeds are used to fund lease originations. The maturity date of th e facility was September 23, 2013. On March 15, 2013, the Company elected to exercise its option to repay the remaining $ 1.3 million of the facility. Financial Covenants The Company’s secured borrowing arrangements contain numerous covenants, restrictions and default provisions that it must comply with in order to obtain funding through the facilit y and to avoid an event of default. Some of the critical financial and credit quality cov enants under the Company’s borrowing arrangements as of December 31, 2015 include: Actual (1) Requirement Debt-to-equity ratio maximum 3.92 to 1 5.5 to 1 Maximum servicer senior leverage ratio 0 to 1 5.0 to 1 Maximum portfolio delinquency ratio N/A 3.50% Maximum gross charge-off ratio 1.94% 7.00% __________________ (1) Calculations are based on specific contractual definitions and subsidiaries per the applicable debt agreements, which may differ from ratios or amounts presented elsewhere in this document. (2) As of February 3, 2016, this covenant was waived effective December 31, 2015. A change in certain executive officers as described in the loan documents is an event of default under our long-term loan facility with Wells Fargo Capital Finance, unless we hire a replacement with skills and experience appropriate for performing the duties of the applicable positions within 120 days. On April 30, 2015, the Company announced the resignation of Lynne C. Wilson from her role as Senior Vice President and Chief Financial Officer, effective May 31, 2015. The change did not have a material adverse effect on our financing arrangement with Wells Fargo Capital Finance because we hired a replacement, effective August 4, 2015, with similar skills and experience. On October 20, 2015, the Company announced the retirement of Daniel P. Dyer from his role as Chief Executive Officer and director of Marlin Business Services Corp., effective October 20, 2015. This change did not have a material adverse effect on our financing arrangement with Wells Fargo Capital Finance because Mr. Dyer’s duties have been assumed by someone with similar skills and experience. A merger or consolidation with another company in which the Company is not the surviving entity is also an event of defaul t under the financing facility . The Company’s long-term loan facilit y contain s acceleration clause s allowing the creditor to accelerate the scheduled maturities of the obligation under certain conditions that may not be objectively determinable (for example, “if a material adverse change occurs”). An event of default under our facilit y could result in an acceleration of amounts outstanding under the facilit y , foreclosure on all or a portion of the leases financed by the facilit y and/or the removal of the Company as servicer of the leases financed by the facility. As of December 31, 2015 , the Company believes it was in compliance with the terms of its secured borrowing arrangements. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [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 The Fair Value Measurements and Disclosures Topic of the FASB ASC establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. Its provisions do not apply to fair value measurements for purposes of lease classification and measurement, which is addressed in the Leases Topic of the FASB ASC. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the measurement date (exit price). A three-level valuation hierarchy is required for disclosure of fair value measurements based upon the 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 three levels are defined as follows: Level 1 – Inputs to the valuation are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs to the valuation may include quoted prices for similar assets and liabilities in active or inactive markets, and inputs other than quoted prices, such as interest rates and yield curves, which are observable for the asset or liability for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation are unobservable and significant to the fair value measurement. Level 3 inputs shall be used to measure fair value only to the extent that observable inputs are not available. The Company characterizes active markets as those where transaction volumes are sufficient to provide objective pricing information, such as an exchange traded price. Inactive markets are typically characterized by low transaction volumes, and price quotations that vary substantially among market participants or are not based on current information. The Company’s balances measured at fair value on a recurring basis include the following as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets Securities available for sale $ 3,332 $ 3,067 $ 3,281 $ 2,441 At this time, the Company has not elected to report any assets and liabilities using the fair value option available under the Financial Instruments Topic of the FASB ASC. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy. Disclosures about the Fair Value of Financial Instruments The Financial Instruments Topic of the FASB ASC requires the disclosure of the estimated fair value of financial instruments including those financial instruments not measured at fair value on a recurring basis. This requirement excludes certain instruments, such as the net investment in leases and all nonfinancial instruments. The fair values shown below have been derived, in part, by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates. Valuation techniques involve uncertainties and require assumptions and judgments regarding prepayments, credit risk and discount rates. Changes in these assumptions will result in different valuation estimates. The fair values presented would not necessarily be realized in an immediate sale. Derived fair value estimates cannot necessarily be substantiated by comparison to independent markets or to other companies’ fair value information. The following summarizes the carrying amount and estimated fair value of the Company’s financial instruments: December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Assets Cash and cash equivalents $ 60,129 $ 60,129 $ 110,656 $ 110,656 Time deposits with banks 7,368 7,356 0 0 Restricted interest-earning deposits with banks 216 216 711 711 Loans, net of allowance 6,179 6,152 1,123 1,123 Liabilities Deposits $ 587,940 $ 586,898 $ 550,119 $ 549,578 The paragraphs which follow describe the methods and assumptions used in estimating the fair values of financial instruments. Cash and Cash Equivalents The carrying amounts of the Company’s cash and cash equivalents approximate fair value as of December 31, 2015 and December 31, 2014 , because they bear interest at market rates and had maturities of less than 90 days at the time of purchase. This fair value measurement is classified as Level 1. Time Deposits with Banks Fair value of time deposits is estima ted by discounting cash flows of current rates paid by market participants for similar time deposits of the same or similar remaining maturities. This fair value measurement is classified as Level 2. Restricted Interest-Earning Deposits with Banks The Company maintains an interest-earning trust account related to our secured debt facility. The book value of such accounts is included in restricted interest-earning deposits with banks on the accompanying Consolidated Balance Sheet. These accounts earn a f loating market rate of interest which results in a fair value approximating the carrying amount at December 31, 2015 and December 31, 2014 . This fair value measurement is classified as Level 1. Securities Available for Sale Securities available for sale are reco rded at fair value on a recurring basis. Fair value measurement is based upon various sources of market pricing. Securities are classified within the fa ir value hierarchy after giving consideration to the activity level in the market for the security type and the observability of the inputs used to determine the fair value. When available, the Company uses quoted prices in active markets and classifies such instruments within Level 1 of the fair value hierarchy. Level 1 securities include mutual funds. When instruments are traded in secondary markets and quoted market prices do not exist for such securities, the Company relies on prices obtained from third-party pricing vendors and classifies these instruments within Level 2 of the fair value hierarchy. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. Level 2 securities include muni cipal bonds. Loans Two types of loans make up the loan balances. P articipating interests acquired through membership in a non-profit, multi-financial institution consortium serving as a catalyst for community development by offering financing for affordable, quality housing to low- and moderate-income residents. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. The fair value of the Company’s loans approximates the carrying amount at December 31, 2015 and December 31, 2014 . This estimate was based on recent comparable sales transactions with consideration of current market rates. This fair value measurement is classified as Level 2. The Company also originates and invests in small business loans tailored to the small business ma rket. Fair value for these loans are estimated by discounting cash flows at an imputed market rate for similar loan products with similar characteristics. This fair value measurement is classified as Level 2. Deposits Deposit liabilities with no defined maturity such as MMDA deposits have a fair value equal to the amount payable on demand at the reporting date ( i.e ., their carrying amount). Fair value for certificates of deposits is estimated by discounting cash f lows at current rates paid by the Company for similar certificates of deposit of the same or similar remaining maturities. This fair value measurement is classified as Level 2. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 12 - I ncome T axes The Company’s income tax provision consisted of the following components: Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current: Federal $ 7,983 $ 10,212 $ 9,112 State 1,582 1,764 1,325 Total current 9,565 11,976 10,437 Deferred Federal 475 91 (811) State (778) (145) 143 Total deferred (303) (54) (668) Total income tax expense $ 9,262 $ 11,922 $ 9,769 In accordance with U.S. GAAP, uncertain tax positions taken or expected to be taken in a tax return are subject to potential financial statement recognition based on prescribed recognition and measurement criteria. Based on our evaluation, we concluded that there are no significant uncertain tax positions requiring recognition in our financial statements. For the years ended December 31, 2015 , 2014 and 2013 , there were no uncertain tax positions . We do not expect our unrecognized tax positions to change significantly over the next 12 months. The periods subject to examination for the Company’s federal return include the 20 1 2 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 20 1 2 through the present are subject to examination. No material income tax interest or penalties were incurred for the years ended December 31, 2015 , 2014 or 2013 . Deferred income tax expense results principally from the use of different revenue and expense recognition methods for tax and financial accounting purposes , pri marily related to lease accounting. The Company estimates these differences and adjusts to actual upon preparation of the income tax returns. The sources of these temporary differences and the related tax effects were as follows: December 31, 2015 2014 (Dollars in thousands) Deferred income tax assets: Allowance for credit losses $ 3,532 $ 3,730 Accrued expenses 757 1,092 Deferred income 1,774 1,788 Deferred compensation 820 958 Other comprehensive income 80 11 Other 403 190 Total deferred income tax assets 7,366 7,769 Deferred income tax liabilities: Lease accounting (21,180) (21,950) Deferred acquisition costs (2,908) (2,889) Depreciation (127) (151) Total deferred income tax liabilities (24,215) (24,990) Net deferred income tax liability $ (16,849) $ (17,221) As of December 31, 2015 , the Company has a net receivable balance of $ 4 . 4 million , due to estimated payments exceeding the calculated liability . As of December 31, 2015, the Company has utilized all of its federal net operating loss carryforwards generated in prior tax years. The following is a reconciliation of the statutory federal income tax rate to the effective income tax rate: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 3.2 % 3.4 % 3.7 % Other permanent differences (0.6) % (0.4) % (0.5) % Interest on amended returns — % — % (0.6) % Other (0.9) % 0.1 % — % Effective rate 36.7 % 38.1 % 37.6 % |
Earnings Per Common Share ("EPS
Earnings Per Common Share ("EPS") | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Earnings Per Common Share ("EPS") | NOTE 13 - Earnings Per Common Share The Company’s restricted stock awards are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, 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 allocated to common stock by the weighted average common shares used in computing basic EPS. For the computation of basic EPS, a ll shares of restricted stock have been deducted from the weighted average shares outstanding. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average 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 or converted. The following table provides net income and shares used in computing basic and diluted EPS : Year Ended December 31, 2015 2014 2013 (Dollars in thousands, except per-share data) Basic EPS Net income $ 15,966 $ 19,350 $ 16,231 Less: net income allocated to participating securities (465) (552) (593) Net income allocated to common stock $ 15,501 $ 18,798 $ 15,638 Weighted average common shares outstanding 12,722,234 12,887,643 12,905,110 Less: Unvested restricted stock awards considered participating securities (357,361) (367,147) (506,985) Adjusted weighted average common shares used in computing basic EPS 12,364,873 12,520,496 12,398,125 Basic EPS $ 1.25 $ 1.50 $ 1.26 Diluted EPS Net income allocated to common stock $ 15,501 $ 18,798 $ 15,638 Adjusted weighted average common shares used in computing basic EPS 12,364,873 12,520,496 12,398,125 Add: Effect of dilutive stock options 16,679 55,442 87,096 Adjusted weighted average common shares used in computing diluted EPS 12,381,552 12,575,938 12,485,221 Diluted EPS $ 1.25 $ 1.49 $ 1.25 For the years ended December 31, 2015 , 2014 and 2013, options to purchase 5,203 , 15,698 and 23,036 shares of common stock were not considered in the computation of potential common shares for purposes of diluted EPS, since the exercise prices of the options were greater than the average market price of the Company’s common stock for the respective periods. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 14 - Stockholders’ Equity Stockholders’ Equity On November 2, 2007, the Company’s Board of Directors approved a stock repurchase plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock (the “2007 Repurchase Plan”). On July 29, 2014, the Company’s Board of Directors approved a new stock repurchase plan to replace the 2007 Repurchase Plan (the “2014 Repurchase Plan”). Under the 2014 Repurchase Plan, the Company is authorized to repurchase up to $15 million in value of its outstanding shares of common stock. This authority may be exercised from time to time and in such amounts as market conditions warrant. Any shares purchased under this plan are returned to the status of auth orized but unissued shares of common stock. The repurchases may be made on the open market, in block trades or otherwise. The program may be suspended or discontinued at any time. The repurchases are funded using the Company’s working capital. During the year ended December 31, 2015 , the Company purchased 594,760 shares of its common stock in the open market at an average cost of $17.09 per share under the 2014 Repurchase Plan . The Company purchased 113,884 shares of its common stock in the open market under the 2007 Repurchase Plan at an average cost of $19.66 per share and 97,507 shares of its common stock in the open market under the 2014 Repurchase Plan at an average cost of $19.08 per share during the year ended December 31, 2014 . The Company purchased 231 shares of its common stock at an average cost of $18.52 per share during the year ended December 31, 2013 under the 2007 Repurchase Plan . At December 31, 2015 , the Company had $ 3.2 million remain ing in the 2014 R epurchase P lan. In addition to the repurchases described above, participants in the Company’s 2003 Equity Compensation Plan, as amended (the “2003 Plan”) and the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan” and, together with the 2003 Plan, the “Equity Plans”) may have shares withheld to cover income taxes. There were 65,143 , 71,673 and 53,757 shares repurchased to cover income tax withholding in connection with shares granted under the Equity Plans during the years ended December 31, 2015 , 2014 and 2013 , respectively , at average per-share cost s of $17.74 , $22.64 and $21.65 , 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 commercial 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 regulations 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 exposures 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 half 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 Capital," 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 organizations, which are calculated by dividing Tier 1 Capital by total quarterly 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. On January 1, 2015, the Company and MBB became subject to new capital adequacy standards under the Basel III rules. The new standards require a minimum for Tier 1 leverage ratio of 4%; previously certain banking organizations were allowed to maintain a 3% minimum Tier 1 leverage ratio subject to certain requirements. The new standards raised the required minimum Tier 1 risk-based ratio from 4% to 6%. The Total risk-based capital ratio of 8% did not change. The new capital adequacy standards establish a new common equity Tier 1 risk-based capital ratio with a required 4.5% minimum (6.5% to be considered well-capitalized). There is also a new capital conservation buffer which is phased in from 2015 to 2019. When added to the minimum capital ratios and fully phased in, the capital conservation buffer will require banking organizations to hold an additional 2.5% of capital above the minimum requirements. If a banking organization does not maintain capital above the minimum plus the capital conservation buffer it may be subject to restrictions on dividends, share buybacks, and certain discretionary payments such as bonus payments. The Company plans to provide the necessary capital to maintain MBB at “well-capitalized” status as defined by banking regulations and as required by an agreement entered into by and among MBB, MLC, Marlin Business Services Corp. and the FDIC in conjunction with the opening of MBB (the “FDIC Agreement”). MBB’s Tier 1 Capital balance at December 31, 2015 was $123.5 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At December 31, 2015 , 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. 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 December 31, 2015 . Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio (1) Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 19.63% $ 150,222 4% $ 30,603 5% $ 38,254 Marlin Business Bank 16.90% $ 123,483 5% $ 36,542 5% $ 36,542 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 20.86% $ 150,222 4.5% $ 32,414 6.5% $ 46,820 Marlin Business Bank 17.54% $ 123,483 6.5% $ 45,769 6.5% $ 45,769 Tier 1 Risk-based Capital Marlin Business Services Corp. 20.86% $ 150,222 6% $ 43,219 8% $ 57,625 Marlin Business Bank 17.54% $ 123,483 8% $ 56,331 8% $ 56,331 Total Risk-based Capital Marlin Business Services Corp. 22.02% $ 158,635 8% $ 57,625 10% $ 72,031 Marlin Business Bank 18.71% $ 131,758 15% $ 105,620 10% (1) $ 70,413 (1) MBB is required to maintain “well-capitalized” status and must also maintain a total risk-based capital ratio greater than 15% pursuant to the FDIC Agreement. 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. F ive 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. Adequately 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 level 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 depository 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 capital 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 adequately 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. Depending 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 regulatory 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. Pursuant to the FDIC Agreement entered into in conjunction with the opening of MBB , MBB must keep its total risk-based capital ratio above 15%. MBB’s total risk-based capital ratio of 18.71% at December 31, 2015 exceeded the threshold for “well capitalized” status under the applicable laws and regulations, and also exceeded the 15% minimum total risk-based capital ratio required in the FDIC Agreement. 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 may 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. In addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 14, 2015. The special dividend was paid on October 5, 2015 to shareholders of record on the close of business on September 24, 2015, which resulted in a dividend payment of approximately $25.5 million. In addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 4, 2013. The special dividend was paid on September 26, 2013 to shareholders of record on the close of business on September 16, 2013, which resulted in a dividend payment of approximately $26.0 million |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 15 - Stock-Based Compensation Under the terms of the Company’s 2014 Plan , employees, 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 as approved by the Company’s Board of Directors . These award program s 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 2014 Plan. The aggregate number of shares under the 2014 Plan that may be issued pursuant to stock options or restricted stock grants is 1,200,000 with n ot more than 1,000,000 of such shares shall be available for issuance as restricted stock grants. There were 921,936 shares available for futur e grants under the 20 14 Plan as of December 31, 2015 , of which 721,936 shares were available to be issued as restricted stock grants . Total stock-based compensation expense was $ 2.8 million , $ 2.0 million and $ 2.6 for the years ended December 31, 2015 , 2014 and 2013 , respectively . Excess tax benefits from stock-based payment arrangements increased cash provided by financing activities and decreased cash provided by operating activ ities by $0.3 million, $0.8 million and $1.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Stock Options In previous years, stock option awards were issued as part of the Company’s overall compensation strategy. Option awards were 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- to 10-year contractual terms. All options issued contain service conditions based on the participant’s continued service with t he Company, and provide for accelerated vesting if there is a change in control as defined in the 2014 Plan. Employee stock options generally vest over four years. In previous years, the Company also issued stock options to independent directors. These o ptions generally vest in one year. T here were no stock options granted during the years ended December 31, 2015 , 2014 and 2013 . A summary of option activity for the each of the three years in the period ended December 31, 2015 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2012 363,519 $ 11.21 Granted — — Exercised (127,957) 11.91 Forfeited (4,229) 10.38 Expired (12,416) 18.48 Outstanding, December 31, 2013 218,917 $ 10.40 Granted — — Exercised (14,469) 10.66 Forfeited — — Expired (11,097) 13.10 Outstanding, December 31, 2014 193,351 $ 10.23 Granted — — Exercised (61,937) 9.48 Forfeited (80,728) 9.64 Expired — — Outstanding, December 31, 2015 50,686 $ 12.09 During the years ended December 31, 2015 , 2014 and 2013, the Company recognized total compensation expense related to options of $ 0.1 million, $ 0.1 million and $ 0.2 million, respectively. There were 61,937 , 14,469 and 127,957 stock options exercised during the years ended December 31, 2015 , 2014 and 2013 , respectively. The total pretax intrinsic value of stock options exercised w as $0.6 million, $0.1 million and $1.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The following table summarizes information about the stock options outstanding and exercisable as of December 31, 2015 : 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) $ 7.17 - 7.79 2,878 0.8 7.35 25 2,878 0.8 7.35 25 $ 12.08 - 12.41 47,808 1.4 12.38 176 43,918 1.4 12.37 162 50,686 1.4 12.09 $ 201 46,796 1.4 12.06 $ 187 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $16.06 as of December 31, 2015 , which would have been received by the option holders had all option holders exercised their options as of that date. As of December 31, 2015 , there was no future compensation cost related to non-vested stock options not yet recognized in the Consolidated Statements of Operations based on the most probable performance assumptions. As of December 31, 2015 , less than $0.1 million $ 0.0 million of additional potential compensation cost related to non-vested stock options has not been recognized due to performance targets not being achieved. However, in certain circumstances, these options may be subject to vesting prior to their expiration dates. The weighted average remaining term of these options is approximately 1.4 years. Restricted Stock Awards Restricted 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 10 years. All awards issued contain service conditions based on the participant’s continued service with the Company, and provide for accelerated vesting if there is a change in control as defined in the 2014 Plan. The vesting of certain restricted sh ares may be accelerated to a minimum of three years based on achievement of various individual p erformance measures. Acceleration of expense for awards based on individual performance factors occurs when the achievement of the performance criteria is deter mined. In addition, the Company has issued certain shares under a Management Stock Ownership Program. Under this program, restrictions on the shares lapse at the end of 10 years but may lapse (vest) in a minimum of three years if the employee continues in service at the Company and owns a matching number of other common shares in addition to the restricted shares. Of the total restricted stock awards granted during the year ended December 31, 2015 , 77,342 shares may be subject to accelerated v esting based on individual performance factors ; n o shares have vesting contingent upon performance factors. V esting was accelerated in 2015 , 2014 and 2013 on certain awards based on the achievement of certain performance criteria determined annually , as de scribed below. The Company also issues restricted stock to non-employee 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 each of the three years in the period ended December 31, 2015 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2012 523,967 $ 11.94 Granted 163,417 20.29 Vested (160,738) 11.05 Forfeited (32,184) 16.83 Outstanding at December 31, 2013 494,462 $ 14.67 Granted 118,293 18.72 Vested (246,284) 14.36 Forfeited (20,435) 19.46 Outstanding at December 31, 2014 346,036 $ 15.99 Granted 179,162 16.87 Vested (188,287) 15.41 Forfeited (23,675) 18.53 Outstanding at December 31, 2015 313,236 $ 16.65 During the years ended December 31, 2015 , 2014 and 2013 , the Company granted restricted stock awards with grant date fair values totaling $ 3.0 million, $ 2.2 million and $3.3 million, respectively. 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 $ 2.7 million, $ 2.0 million and $ 2.4 million of compensation expense related to restricted stock for the years ended December 31, 2015 , 2014 and 2013 , respectively. Of the $ 2.7 million total compensation expense related to restricted stock for the year ended December 31, 2015 , approximately $ 0.5 million related to accelerated vesting during the first quarter of 2015 , based on the achievement of certain performance criteria determined annually. Of the $ 2.0 million total compensation expense related to restricted stock for the year ended December 31, 2014 , approximately $ 0.6 million related to accelerated vesting during the first quarter of 2014 , which was also based on the achievement of certain performance criteria determined annually. As of December 31, 2015 , there was $ 3.6 million of unrecognized compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 4.0 years. In the event individual performance targets are achieved, $ 1.2 million of the unrecognized compensation cost would accelerate to be recognized over a weighted average period of 0.9 years. In addition, certain of the awards granted may result in the issuance of 43,764 additional shares of stock if achievement of certain targets is greater than 100%. The expense related to the additional shares awarded will be dependent on the Company’s stock price when the achievement level is determined. The fair values of shares that vested during the years ended December 31, 2015 , 2014 and 2013 were $ 3.4 million, $ 5.4 million and $ 3.5 million, respectively. Employee Stock Purchase Plan In May 2012, the Company’s shareholders approved the adoption of the Company’s 2012 Employee Stock Purchase Plan (the “2012 ESPP”). Under the terms of the 2012 ESPP, employees have the opportunity to set aside up to 10% of their compensation (subject to certain maximums) and to purchase shares of common stock during designated offering periods at a price equal to the lesser of 95% of the fair market value per share on the first day of the offering period or the fair market value per share on the purchase date. The aggregate number of shares that may be issued under the 2012 ESPP is 140,000. During the years ended 2015 and 2014 14, 929 and 14, 428 shares, respectively, of common stock were sold for $0. 2 million and $0.3 million, respectively, pursuant to the terms of the 2012 ESPP. As of December 31, 2015 , there were 87,128 shares remaining available for issuance under the 2012 ESPP . |
Employee 401(k) Plan
Employee 401(k) Plan | 12 Months Ended |
Dec. 31, 2015 | |
Employee 401 K Plan [Abstract] | |
Employee 401(k) Plan | NOTE 16 - Employee 401(k) Plan The Company adopted a 401(k) plan (the “401(k) Plan”) which originally became effective as of January 1, 1997. The Company’s employees are entitled to participate in the 401(k) Plan, which provides savings and investment opportunities. Employees can contribute up to the maximum annual amount allowable per Internal Revenue Service guidelines. Effective July 1, 2007, the 401(k) Plan provides for Company contributions equal to 25% of an employee’s contribution percentage up to a maximum employee contribution of 6%. The Company’s Board of Directors voted to authorize the doubling of the required match for the calendar year 2012. The Company’s contributions to the 401(k) Plan for the years ended December 31, 2015 , 2014 and 2013 were approximately $0.2 million, $0.1 million and $0.4 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 17 - Related Party Transactions The Company obtains all of its commercial, healthcare and other insurance coverage through The Selzer Company, an insurance broker located in Warrington , Pennsylvania . Richard Dyer, the brother of Daniel P. Dyer, the Company’s former Chief Executive Officer, is the President of The Selzer Company. The Company does not have any contractual arrangement with The Selzer Group or Richard Dyer, nor does it pay either of them any direct fees. Insurance premiums paid to The Selzer Company were $0.4 million, $0.4 million and $0.5 million during the years ended December 31, 2015 , 2014 and 2013, respectively. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | NOTE 1 8 – Parent Company Summarized financial information of the parent company is as follows: Parent Company – Balance Sheet December 31, 2015 2014 (Dollars in thousands, except per-share data) ASSETS Investment in and advances to subsidiaries: Bank subsidiary $ 123,398 $ 115,978 Nonbank subsidiaries 26,740 57,986 Total assets $ 150,138 $ 173,964 LIABILITIES AND STOCKHOLDERS’ EQUITY Total liabilities - - Stockholders’ equity: Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,410,899 and 12,838,449 shares issued and outstanding at December 31, 2015 and 2014, respectively 124 128 Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued - - Additional paid-in capital 81,703 89,130 Stock subscription receivable (2) (2) Accumulated other comprehensive loss (129) (17) Retained earnings 68,442 84,725 Total stockholders’ equity 150,138 173,964 Total liabilities and stockholders’ equity $ 150,138 $ 173,964 Parent Company – Income Statement Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income: Dividends from nonbank subsidiaries $ 43,569 $ 11,789 $ 42,537 Dividends from bank subsidiary 13,000 - - Total revenue 56,569 11,789 42,537 Total expense - - - Income before income taxes and equity in undistributed net income of subsidiaries 56,569 11,789 42,537 Income tax (benefit) expense - - - Equity in undistributed income (loss): Bank subsidiary 7,532 20,484 16,167 Nonbank subsidiaries (48,135) (12,923) (42,473) Net Income $ 15,966 $ 19,350 $ 16,231 Other comprehensive income: Amortization of net deferred losses on cash flow hedge derivatives - - - Increase (decrease) in fair value of securities available for sale (181) 388 (506) Tax effect 69 (148) 194 Total other comprehensive income (loss) (112) 240 (312) Comprehensive income $ 15,854 $ 19,590 $ 15,919 Parent Company – Statement of Cash Flows Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Cash flows from operating activities: Net income $ 15,966 $ 19,350 $ 16,321 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net (income) losses of subsidiaries (2,966) (19,350) (424) Net cash provided by operating activities 13,000 - 15,807 Cash flows from investing activities: Capital returned from nonbank subsidiaries 43,569 11,789 26,730 Capital contributed to subsidiaries (13,820) (407) (11,794) Net cash provided by (used in) investing activities 29,749 11,382 14,936 Cash flows from financing activities: Issuances of common stock 234 253 270 Repurchases of common stock (11,320) (5,727) (1,168) Dividends paid to common stockholders (32,249) (6,062) (31,369) Exercise of stock options 586 154 1,524 Net cash used in financing activities (42,749) (11,382) (30,743) Net increase in total cash and cash equivalents - - - Total cash and cash equivalents, beginning of period - - - Total cash and cash equivalents, end of period $ - $ - $ - |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 19 - Events Subsequent to Year-End The Company declared a dividend of $0.14 per share on February 1, 2016 . The quarterly dividend, which amounted to a dividend payment of approximately $1.7 million, was paid on February 22, 2016 to shareholders of record on the close of business on February 12, 2016 . It represented the Company’s eighteenth consecutive quarterly cash dividend. The payment of future dividends will be subject to approva l by the Company’s Board of Directors. On February 4 , 2016, the Company’s affiliate, MRC, amended its $50.0 million borrowing facility. The amendment changed the maturity date of the facility from February 4, 2016 to May 4 , 2016. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Supplementary Data The selected unaudited quarterly financial data presented below should be read in conjunction with the Consolidated Financial Statements and related notes. Selected Quarterly Financial Data (Unaudited) Fiscal Year Quarters First Second Third Fourth (Dollars in thousands, except per-share data) Year ended December 31, 2015 Interest income $ 16,487 $ 16,488 $ 16,690 $ 16,997 Fee income 4,120 3,727 3,915 3,529 Interest and fee income 20,607 20,215 20,605 20,526 Interest expense 1,318 1,336 1,433 1,609 Provision for credit losses 3,340 2,216 1,986 2,453 Income tax expense 2,557 2,634 2,982 1,089 Net income (1) 4,055 4,149 4,797 2,965 Basic earnings per share 0.31 0.32 0.38 0.24 Diluted earnings per share 0.31 0.32 0.38 0.24 Cash dividends declared per share (2) 0.125 0.125 2.14 0.14 Net investment in leases and loans 628,019 641,082 659,253 682,432 Total assets 769,229 764,972 790,454 772,984 Year ended December 31, 2014 Interest income $ 16,737 $ 16,740 $ 16,705 $ 16,582 Fee income 3,685 3,450 3,881 3,904 Interest and fee income 20,422 20,190 20,586 20,486 Interest expense 1,181 1,216 1,250 1,318 Provision for credit losses 1,732 2,124 2,706 2,554 Income tax expense 2,900 2,921 3,039 3,062 Net income 4,643 4,936 4,904 4,867 Basic earnings per share 0.36 0.38 0.38 0.38 Diluted earnings per share 0.36 0.38 0.38 0.38 Cash dividends declared per share 0.11 0.11 0.125 0.125 Net investment in leases and loans 600,516 615,132 618,691 629,507 Total assets 741,036 736,245 740,185 758,449 Net income for the second quarter of 201 5 reflects an after-tax adjustment charge of approximately $0. 2 million, o r $0. 02 diluted earnings per share , due to the departure of the Company’s Chief Financial Officer. Net income for the fourth quarter of 201 5 reflects an after-tax adjustment charge of approximately $ 2.0 million, o r $0.1 6 diluted earnings per share , due to the departure of the Company’s Chief Executive Officer. I n addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 1 4, 201 5 . |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Financial Statement Presentation The 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 similar economic characteristics, share the same leasing and loan portfolio and have the same product offerings. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“ U.S. GAAP ”) requires management to make estimates and assumptions that affect 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 , self-insurance reserves, and income taxes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash and interest-bearing money market funds. For purposes of the consolidated statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Interest- E arning Deposits with Banks Restricted interest-earning deposits with banks consist primarily of an interest-earning trust account related to the Company’s secured debt facilit y . The balance also includes amounts received from securitizations representing reimbursements of servicing fees and excess spread income. |
Time Deposits with Banks, Policy [Policy Text Block] | Time Deposits with Banks Time deposits with banks are composed of FDIC-insured certificates of deposits that generally have original maturity dates of greater than 90 days. These deposits are held on the balance sheet at amortized cost. Generally, the certificates of deposits have the ability to redeem early; however early redemption penalties may be incurred. |
Net Investment in Leases and Loans, Policy [Policy Text Block] | Net Investment in Leases and Loans As required by U.S. GAAP, the Company uses the direct finance method of accounting to record its direct financing leases and related interest income. At the inception of a lease, the Company records as an asset, the aggregate future minimum lease payments receivable, plus the estimated residual value of the leased equipment, less unearned lease income. Residual values are established at lease inception based on our estimate of the expected fair value of the equipment at the end of the lease term. Residual values may be realized at lease termination from lease extensions, sales or other dispositions of leased equipment. Estimates are based on industry data, management’s experience, and historical performance. The Company records an estimated residual value at lease inception for all fair market value and fixed purchase option leases based on a percentage of the equipment cost of the asset being leased. The percentages used depend on equipment type and term. In setting estimated residual values, the Company focuses its analysis primarily on the Company’s total historical and expected realization statistics pertaining to sales of equipment. In subsequent evaluations for the impairment of the booked residual values, the Company reviews historical realization statistics including lease renewals and equipment sales. Anticipated renewal income is not included in the determination of fair value; however, it is one of the ways that fair value may be realized at the end of the lease term. At the end of an original lease term, lessees may choose to purchase the equipment, renew the lease or return the equipment to the Company. The Company receives income from lease renewals when the lessee elects to retain the equipment longer than the original term of the lease. This income, net of appropriate periodic reductions in the estimated residual values of the related equipment, is included in fee income as net residual income. When a lessee elects to return equipment at lease termination, the equipment is transferred to other assets at the lower of its basis or fair market value. The Company generally sells returned equipment to independent third parties, rather than leasing the equipment a second time. The Company generally charges off the value of equipment in other assets for longer than 120 days. Any loss recognized on transferring equipment to other assets and any gain or loss realized on the sale or disposal of equipment to a lessee or to others is included in fee income as net residual income. Based on the Company’s experience, the amount of ultimate realization of the residual value tends to relate more to the customer’s election at the end of the lease term to enter into a renewal period, to purchase the leased equipment or to return the leased equipment than it does to the equipment type. Management performs reviews of the estimated residual values and historic realization statistics no less frequently than quarterly and any impairment, if other than temporary, is recognized in the current period. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. Unearned lease income is the amount by which the total lease receivable plus the estimated residual value exceeds the cost of the equipment. Unearned lease income, net of initial direct costs and fees, is recognized as revenue over the lease term using the effective interest method. |
Allowance for Credit Losses, Policy [Policy Text Block] | Allowance for Credit Losses In accordance with the Contingencies Topic of the FASB ASC, we maintain 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 projection of probable net credit losses. We evaluate our portfolios on a pooled basis, due to their composition of small balance, homogenous accounts with similar general credit risk characteristics, diversified among a large cross-section of variables including industry, geography, equipment type, obligor and vendor. We generally consider both quantitative and qualitative factors in determining the allowance for credit losses. Quantitative factors considered include a migration analysis stratified by industry classification , historic delinquencies and charge-offs, and a static pool analysis of historic recoveries. A migration analysis is a technique used to estimate the likelihood that an account will progress through the various delinquency stages and ultimately charge off . As part of our quantitative analysis we may also consider specifically identified pools of leases separately from the migration analysis, whenever certain identified pools are not expected to perform consistently with their credit characteristics or the portfolio as a whole. These lease pools may be analyzed for impairment separately from the migration analysis and a specific reserve established. Qualitative factors that may result in further adjustments to the quantitative analysis include items such as changes in the composition of our lease and loan portfolios (including geography, industry, equipment type and vendor source) , seasonality, economic or business conditions and other external factors, business practices or policies at the reporting date that are different from the periods used in the quantitative analysis and changes in experience and ability of leasing and lending management and other relevant staff. . The various factors used in the analysis are reviewed periodically, and no less frequently than quarterly. We then establish an allowance for credit losses for the projected probable net credit losses inherent in the portfolio based on this analysis. A provision is charged against earnings to maintain the allowance for credit losses at the appropriate level. Our policy is to generally charge-off against the allowance the estimated unrecoverable portion of accounts once they reach 12 0 or more days delinquent. Our projections of probable net credit losses are inherently uncertain, and as a result we cannot predict with certainty the amount of such losses. Changes in economic conditions, the risk characteristics and composition of the portfolio, bankruptcy laws, and other factors could impact our actual and projected net credit losses and the related allowance for credit losses. To the extent we add new leases and loans to our portfolios, or to the degree credit quality is worse than expected, we record expense to increase the allowance for credit losses to reflect the estimated net losses inherent in our portfolios. Actual losses may vary from current estimates. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The Company records property and equipment at cost. Equipment capitalized under capital leases is recorded at the present value of the minimum lease payments due over the lease term. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or lease term, whichever is shorter. The Company generally uses depreciable lives that range from three to seven years based on equipment type. |
Other Assets, Policy [Policy Text Block] | Other Asset s Included in other assets on the Consolidated Balance Sheets are income taxes receivable, prepaid expenses, ac crued fee income , progress payments on equipment purchased to lease and Federal Reserve Bank stock. |
Interest Income Recognition, Policy [Policy Text Block] | Interest I ncome Interest income is recognized under the effective interest method. The effective interest method of income recognition applies a constant rate of interest equal to the internal rate of return on each lease at inception. The Company’s lease portfolio consists of homogenous small balance accounts with an average balance less than $ 10,000 across a large cross section of credit variables such as state, equipment type, obligor, vendor and industry category. Based on the historical payment behavior of the Company’s lease portfolio as a whole, payments are considered reasonably assured when a lease’s delinquency status is less than 90 days. Therefore, when a lease or loan is 90 days or more delinquent, the contract is classified as non-accrual and interest income recognition is discontinued. Interest income recognition resumes on a contract when the lessee or borrower makes payments sufficient to bring the contract’s status to less than 90 days delinquent. Modifications resulting in renegotiated leases may include reductions in payment and extensions in term. However, such renegotiated leases are not granted concessions regarding implicit rates or reductions in total amounts due. Modifications may be granted on a one-time basis in situations that indicate the lessee is experiencing a temporary, timing issue and has a high likelihood of success with a revised payment plan. After a modification, a lease or loan’s accrual status is based on compliance with the modified terms. |
Fee Income and Other Income, Policy [Policy Text Block] | Fee Income Fee income consists of fees for delinquent lease and loan payments, cash collected on early termination of leases and net residual income. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of a lease’s term. Residual income is recognized as earned. Fee income from delinquent lease payments is recognized on an accrual basis based on anticipated collection rates. At a minimum of every quarter, an analysis of anticipated collection rates is performed based on updates to collection history. Adjustments in the anticipated collection rate assumptions are made as needed based on this analysis. Other fees are recognized when received. Other Income Other income includes various administrative transaction fees and fees received from referral of leases to third parties and gain on sale of leases, recognized as earned. |
Insurance Income Recognition, Policy [Policy Text Block] | Insurance Income Insurance income is recognized on an accrual basis as earned over the term of each lease. Generally, insurance payments that are 120 days or more past due are charged against income. Ceding commissions, losses and loss adjustment expenses are recorded in the period incurred and netted against insurance income. |
Derivatives, Policy [Policy Text Block] | Loss on Derivatives Changes in the fair value of derivative instruments are recognized immediately in loss on derivatives. |
Securities Available for Sale, Policy [Policy Text Block] | Securities A vailable for S ale Securities available for sale consist of mutual funds and municipal bonds that are measured at fair value on a recurring basis. Unrealized holding gains or losses of all securities available for sale, net of related deferred income taxes, are reported in accumulated other comprehensive income. Fair value measurement is based upon quoted prices in active markets, if available. If quoted prices in active markets are not available, fair values are based on prices obtained from third-party pricing vendors. See Note 11 for more information on fair value measurement of securities . |
Initial Direct Costs and Fees, Policy [Policy Text Block] | Initial D irect C osts and F ees We defer initial direct costs incurred and fees received to originate our leases and loans in accordance with the Receivables Topic and the Nonrefundable Fees and Other Costs Subtopic of the FASB ASC . The initial direct costs and fees we defer are part of the net investment in leases and loans and are amortized to interest income using the effective interest method. We defer third - party commission costs , as well as certain internal costs directly related to the origination activity. C osts subject to deferral include evaluating each prospective customer’s financial condition, evaluating and recording guarantees and other security arrangements, negotiating terms, preparing and processing documents and closing each transaction. The fees we defer are documentation fees collected at inception. The realization of the initial direct costs, net of fees deferred, is predicated on the net future cash flows generated by our lease and loan portfolios. |
Common Stock and Equity, Policy [Policy Text Block] | Common Stock and Equity On November 2, 2007, the Company’s Board of Directors approved the 2007 Repurchase Plan, under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock. On July 29, 2014, the Company’s Board of Directors approved the 2014 Repurchase Plan to replace the 2007 Repurchase Plan. Under the 2014 Repurchase Plan, the Company is authorized to repurchase up to $15 million in value of its outstanding shares of common stock on the open market. The par value of the shares repurchased is charged to common stock with the excess of the purchase price over par charged against any available additional paid-in capital. |
Financing Related Costs, Policy [Policy Text Block] | Financing Related Costs Financing related costs primarily consi st of bank commitment fees paid to our financing sources on the unused portion of our loan facility. These fees are recognized as incurred . |
Stock-based Compensation, Policy [Policy Text Block] | Stock-Based Compensation The Compensation—Stock Compensation Topic of the FASB ASC establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees and non-employees , except for equity instruments held by employee share ownership plans. The Company measures stock-based compensation cost at grant date, based on the fair value of the awards ultimately expected to vest. Stock-based co mpensation expense is recognized on a straight-line basis over the service period . We generally use the Black-Scholes valuation model to measure the fair value of our stock options utilizing various assumptions with respect to expected holding period, risk-free interest rates, stock price volatility, and dividend yield . The assumptions are based on management’s judgment concerning future events. Based on the October 28, 2009 amendment to the 2003 Equity Compensation Plan, the fair value calculations for the one-time stock option exchange program were based on a binomial valuation model which considered many variables, such as the volatility of our stock and the expected term of an option, including consideration of the ratio of stock price to the exercise price at which exercise is expected to occur. The binomial valuation model was used for both the surrendered stock options and the new replacement options under the stock option exchange program. As required by U.S. GAAP, the Company uses its judgment in estimating the amount of awards that are expected to be forfeited, with subsequent revisions to the assumptions if actual forfeitures differ from those estimates. The vesting of certain restricted 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. Non-forfeitable dividends paid on shares of restricted stock are recorded to retained earnings for shares that are expected to vest and to compensation expense for shares that are not expected to vest. |
Income Taxes, Policy [Policy Text Block] | Income Taxes The Income Taxes Topic of the FASB ASC requires the use of the asset and liability method under which deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax bases of assets and liabilities, given the provisions of the enacted tax laws. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, management considers the scheduled reversal of deferred tax liabilities and projected future taxable income, the level of historical taxable income, projections for future taxable income over the periods which the deferred tax assets are deductible and available tax planning strategies . Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any necessary valuation allowance recorded against net deferred tax assets. The process involves summarizing temporary differences resulting from the different treatment of items, such as leases , for tax and accounting purposes. These differences result in deferred tax assets and liabilities which are included within the Consolidated Balance Sheets. M anagement then assess es the likelihood that deferred tax assets will be recovered from future taxable income or tax carry-back availability and, to the extent our management believes recovery is not likely, a valuation allowance is established. To the extent that we establish a valuation allowance in a period, an expense is recorded within the tax provision in the Consolidated Statement s of Operations. At December 31, 2015 and 2014 , there were no uncertain tax positions . The periods subject to examination for the Company’s federal return include the 20 12 tax year to the present. The Company files state income tax returns in various states which may have different statutes of limitations. Generally, state income tax returns for the years 20 12 through the present are subject to examination. As of December 31, 2015 , the Company has a net receiv able balance of $ 4.4 million , due to estimated payments exceeding the calculated liability . The Company records penalties and accrued interest related to taxes, including penalties and interest related to uncertain tax positions , in income tax expense. Uncertain tax positions are recognized when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on merits of the position. We concluded that there are no significant uncertain tax positions requiring recognition in our financial statements and we did not have any accrued interest or penalties associated with uncertain tax positions. |
Earnings Per Share, Policy [Policy Text Block] | 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”) is calculated using the two-class method, under which earnings are allocated to both common shares and participating securities. All shares of restricted stock are deducted from the weighted average shares outstanding for the computation of basic EPS. Diluted EPS is computed based on the weighted average number of common shares outstanding for the period 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 or converted. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date for ASU 2014-09, Revenue from Contracts with Customers . The amendments in this Update defer the effective date of Update 2014-09 by one year. The guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this Update require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) . The purpose of this Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. |
Self Insurance Reserve, Policy [Policy Text Block] | Self-Insurance Beginning in 2014, t he Company assumed financial risk for providing health care benefits to its employees through a self-insured group health plan. We estimate the liabilities associated with this risk by considering historical claims experience. |
Net Investment in Leases and 30
Net Investment in Leases and Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Investment in Leases and Loans [Abstract] | |
Components of Net Investment in Leases and Loans [Table Text Block] | December 31, 2015 2014 (Dollars in thousands) Minimum lease payments receivable $ 761,694 $ 710,801 Estimated residual value of equipment 27,364 27,458 Unearned lease income, net of initial direct costs and fees deferred (102,358) (98,738) Security deposits (2,208) (2,600) Loans, including unamortized deferred fees and costs 6,353 1,123 Allowance for credit losses (8,413) (8,537) $ 682,432 $ 629,507 |
Schedule of Future Minimum Lease Payments Receivable and Amortization of Unearned Lease Income [Table Text Block] | Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2016 $ 320,040 $ 53,224 2017 218,593 29,029 2018 129,975 13,667 2019 66,325 5,267 2020 25,170 1,110 Thereafter 1,591 61 $ 761,694 $ 102,358 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Allowance For Credit Losses [Abstract] | |
Allowance for Credit Losses on Finance Receivables [Table Text Block] | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Allowance for credit losses, beginning of period $ 8,537 $ 8,467 $ 6,488 Charge-offs (12,453) (11,463) (9,499) Recoveries 2,334 2,417 1,861 Net charge-offs (10,119) (9,046) (7,638) Provision for credit losses 9,995 9,116 9,617 Allowance for credit losses, end of period (1) $ 8,413 $ 8,537 $ 8,467 Net charge-offs to average total finance receivables (2) 1.59% 1.50% 1.41% Allowance for credit losses to total finance receivables, end of period (2) 1.24% 1.36% 1.42% Average total finance receivables (2) $ 636,790 $ 602,923 $ 540,717 Total finance receivables, end of period (2) $ 679,738 $ 627,922 $ 595,253 Delinquencies greater than 60 days past due $ 3,163 $ 3,602 $ 3,204 Delinquencies greater than 60 days past due (3) 0.41% 0.51% 0.47% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 265.98% 237.01% 264.26% Non-accrual leases and loans, end of period $ 1,677 $ 1,742 $ 1,665 Renegotiated leases and loans, end of period $ 535 $ 1,014 $ 815 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net [Table Text Block] | December 31, 2015 2014 Depreciable Life (Dollars in thousands) Furniture and equipment $ 2,798 $ 2,784 7 years Computer systems and equipment 12,922 10,690 3-5 years Leasehold improvements 1,185 1,170 Shorter of estimated useful life or remaining lease term Total property and equipment 16,905 14,644 Less - Accumulated depreciation and amortization (13,033) (11,798) Property and equipment, net $ 3,872 $ 2,846 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | December 31, 2015 2014 (Dollars in thousands) Accrued fees receivable $ 2,500 $ 2,465 Prepaid expenses 2,120 1,748 Income taxes receivable (See Note 12 for further discussion) 4,427 854 Other 3,474 3,250 $ 12,521 $ 8,317 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
Schedule Of Future Minimum Rental Payments For Capital And Operating Leases Table [Text Block] | Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2016 $ 102 $ 1,582 $ 1,684 2017 77 1,533 1,610 2018 — 1,478 1,478 2019 — 1,441 1,441 2020 — 689 689 Total minimum lease payments $ 179 $ 6,723 $ 6,902 Less: amount representing interest (9) Present value of minimum lease payments $ 170 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contractual Maturities of Time Deposits [Abstract] | |
Contractual Maturities Of Time Deposits [Table Text Block] | Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2016 $ 232,132 2017 170,370 2018 80,996 2019 31,896 2020 19,816 $ 535,210 |
Long-term Borrowings (Tables)
Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings [Abstract] | |
Schedule Of Debt Collateral [Table Text Block] | December 31, 2015 2014 (Dollars in thousands) Pledged Assets in Long-term Loan Facilities $ 151 $ 4,569 |
Schedule Of Compliance With Debt Covenant Requirements [Table Text Block] | Actual (1) Requirement Debt-to-equity ratio maximum 3.92 to 1 5.5 to 1 Maximum servicer senior leverage ratio 0 to 1 5.0 to 1 Maximum portfolio delinquency ratio N/A 3.50% Maximum gross charge-off ratio 1.94% 7.00% |
Fair Value Measurements and D37
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis [Table Text Block] | December 31, 2015 December 31, 2014 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets Securities available for sale $ 3,332 $ 3,067 $ 3,281 $ 2,441 |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments [Table Text Block] | December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Assets Cash and cash equivalents $ 60,129 $ 60,129 $ 110,656 $ 110,656 Time deposits with banks 7,368 7,356 0 0 Restricted interest-earning deposits with banks 216 216 711 711 Loans, net of allowance 6,179 6,152 1,123 1,123 Liabilities Deposits $ 587,940 $ 586,898 $ 550,119 $ 549,578 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current: Federal $ 7,983 $ 10,212 $ 9,112 State 1,582 1,764 1,325 Total current 9,565 11,976 10,437 Deferred Federal 475 91 (811) State (778) (145) 143 Total deferred (303) (54) (668) Total income tax expense $ 9,262 $ 11,922 $ 9,769 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 2014 (Dollars in thousands) Deferred income tax assets: Allowance for credit losses $ 3,532 $ 3,730 Accrued expenses 757 1,092 Deferred income 1,774 1,788 Deferred compensation 820 958 Other comprehensive income 80 11 Other 403 190 Total deferred income tax assets 7,366 7,769 Deferred income tax liabilities: Lease accounting (21,180) (21,950) Deferred acquisition costs (2,908) (2,889) Depreciation (127) (151) Total deferred income tax liabilities (24,215) (24,990) Net deferred income tax liability $ (16,849) $ (17,221) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 3.2 % 3.4 % 3.7 % Other permanent differences (0.6) % (0.4) % (0.5) % Interest on amended returns — % — % (0.6) % Other (0.9) % 0.1 % — % Effective rate 36.7 % 38.1 % 37.6 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2015 2014 2013 (Dollars in thousands, except per-share data) Basic EPS Net income $ 15,966 $ 19,350 $ 16,231 Less: net income allocated to participating securities (465) (552) (593) Net income allocated to common stock $ 15,501 $ 18,798 $ 15,638 Weighted average common shares outstanding 12,722,234 12,887,643 12,905,110 Less: Unvested restricted stock awards considered participating securities (357,361) (367,147) (506,985) Adjusted weighted average common shares used in computing basic EPS 12,364,873 12,520,496 12,398,125 Basic EPS $ 1.25 $ 1.50 $ 1.26 Diluted EPS Net income allocated to common stock $ 15,501 $ 18,798 $ 15,638 Adjusted weighted average common shares used in computing basic EPS 12,364,873 12,520,496 12,398,125 Add: Effect of dilutive stock options 16,679 55,442 87,096 Adjusted weighted average common shares used in computing diluted EPS 12,381,552 12,575,938 12,485,221 Diluted EPS $ 1.25 $ 1.49 $ 1.25 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Minimum Capital Well-Capitalized Capital Actual Requirement Requirement Ratio Amount Ratio (1) Amount Ratio Amount (Dollars in thousands) Tier 1 Leverage Capital Marlin Business Services Corp. 19.63% $ 150,222 4% $ 30,603 5% $ 38,254 Marlin Business Bank 16.90% $ 123,483 5% $ 36,542 5% $ 36,542 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 20.86% $ 150,222 4.5% $ 32,414 6.5% $ 46,820 Marlin Business Bank 17.54% $ 123,483 6.5% $ 45,769 6.5% $ 45,769 Tier 1 Risk-based Capital Marlin Business Services Corp. 20.86% $ 150,222 6% $ 43,219 8% $ 57,625 Marlin Business Bank 17.54% $ 123,483 8% $ 56,331 8% $ 56,331 Total Risk-based Capital Marlin Business Services Corp. 22.02% $ 158,635 8% $ 57,625 10% $ 72,031 Marlin Business Bank 18.71% $ 131,758 15% $ 105,620 10% (1) $ 70,413 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-based Compensation, Stock Options Activity [Table Text Block] | Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2012 363,519 $ 11.21 Granted — — Exercised (127,957) 11.91 Forfeited (4,229) 10.38 Expired (12,416) 18.48 Outstanding, December 31, 2013 218,917 $ 10.40 Granted — — Exercised (14,469) 10.66 Forfeited — — Expired (11,097) 13.10 Outstanding, December 31, 2014 193,351 $ 10.23 Granted — — Exercised (61,937) 9.48 Forfeited (80,728) 9.64 Expired — — Outstanding, December 31, 2015 50,686 $ 12.09 |
Schedule of Stock-based Compensation, Options Outstanding and Exercisable under Stock Option Plans, by Exercise Price Range [Table Text Block] | 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) $ 7.17 - 7.79 2,878 0.8 7.35 25 2,878 0.8 7.35 25 $ 12.08 - 12.41 47,808 1.4 12.38 176 43,918 1.4 12.37 162 50,686 1.4 12.09 $ 201 46,796 1.4 12.06 $ 187 |
Schedule of Stock-based Compensation, Restricted Stock Activity [Table Text Block] | Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2012 523,967 $ 11.94 Granted 163,417 20.29 Vested (160,738) 11.05 Forfeited (32,184) 16.83 Outstanding at December 31, 2013 494,462 $ 14.67 Granted 118,293 18.72 Vested (246,284) 14.36 Forfeited (20,435) 19.46 Outstanding at December 31, 2014 346,036 $ 15.99 Granted 179,162 16.87 Vested (188,287) 15.41 Forfeited (23,675) 18.53 Outstanding at December 31, 2015 313,236 $ 16.65 |
Condensed Financial Informati42
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent [Abstract] | |
Schedule Of Condensed Balance Sheet | December 31, 2015 2014 (Dollars in thousands, except per-share data) ASSETS Investment in and advances to subsidiaries: Bank subsidiary $ 123,398 $ 115,978 Nonbank subsidiaries 26,740 57,986 Total assets $ 150,138 $ 173,964 LIABILITIES AND STOCKHOLDERS’ EQUITY Total liabilities - - Stockholders’ equity: Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,410,899 and 12,838,449 shares issued and outstanding at December 31, 2015 and 2014, respectively 124 128 Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued - - Additional paid-in capital 81,703 89,130 Stock subscription receivable (2) (2) Accumulated other comprehensive loss (129) (17) Retained earnings 68,442 84,725 Total stockholders’ equity 150,138 173,964 Total liabilities and stockholders’ equity $ 150,138 $ 173,964 |
Schedule Of Condensed Income Statement | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income: Dividends from nonbank subsidiaries $ 43,569 $ 11,789 $ 42,537 Dividends from bank subsidiary 13,000 - - Total revenue 56,569 11,789 42,537 Total expense - - - Income before income taxes and equity in undistributed net income of subsidiaries 56,569 11,789 42,537 Income tax (benefit) expense - - - Equity in undistributed income (loss): Bank subsidiary 7,532 20,484 16,167 Nonbank subsidiaries (48,135) (12,923) (42,473) Net Income $ 15,966 $ 19,350 $ 16,231 Other comprehensive income: Amortization of net deferred losses on cash flow hedge derivatives - - - Increase (decrease) in fair value of securities available for sale (181) 388 (506) Tax effect 69 (148) 194 Total other comprehensive income (loss) (112) 240 (312) Comprehensive income $ 15,854 $ 19,590 $ 15,919 |
Schedule Of Condensed Cash Flow Statement | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Cash flows from operating activities: Net income $ 15,966 $ 19,350 $ 16,321 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net (income) losses of subsidiaries (2,966) (19,350) (424) Net cash provided by operating activities 13,000 - 15,807 Cash flows from investing activities: Capital returned from nonbank subsidiaries 43,569 11,789 26,730 Capital contributed to subsidiaries (13,820) (407) (11,794) Net cash provided by (used in) investing activities 29,749 11,382 14,936 Cash flows from financing activities: Issuances of common stock 234 253 270 Repurchases of common stock (11,320) (5,727) (1,168) Dividends paid to common stockholders (32,249) (6,062) (31,369) Exercise of stock options 586 154 1,524 Net cash used in financing activities (42,749) (11,382) (30,743) Net increase in total cash and cash equivalents - - - Total cash and cash equivalents, beginning of period - - - Total cash and cash equivalents, end of period $ - $ - $ - |
Selected Quarterly Finacial Dat
Selected Quarterly Finacial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal Year Quarters First Second Third Fourth (Dollars in thousands, except per-share data) Year ended December 31, 2015 Interest income $ 16,487 $ 16,488 $ 16,690 $ 16,997 Fee income 4,120 3,727 3,915 3,529 Interest and fee income 20,607 20,215 20,605 20,526 Interest expense 1,318 1,336 1,433 1,609 Provision for credit losses 3,340 2,216 1,986 2,453 Income tax expense 2,557 2,634 2,982 1,089 Net income (1) 4,055 4,149 4,797 2,965 Basic earnings per share 0.31 0.32 0.38 0.24 Diluted earnings per share 0.31 0.32 0.38 0.24 Cash dividends declared per share (2) 0.125 0.125 2.14 0.14 Net investment in leases and loans 628,019 641,082 659,253 682,432 Total assets 769,229 764,972 790,454 772,984 Year ended December 31, 2014 Interest income $ 16,737 $ 16,740 $ 16,705 $ 16,582 Fee income 3,685 3,450 3,881 3,904 Interest and fee income 20,422 20,190 20,586 20,486 Interest expense 1,181 1,216 1,250 1,318 Provision for credit losses 1,732 2,124 2,706 2,554 Income tax expense 2,900 2,921 3,039 3,062 Net income 4,643 4,936 4,904 4,867 Basic earnings per share 0.36 0.38 0.38 0.38 Diluted earnings per share 0.36 0.38 0.38 0.38 Cash dividends declared per share 0.11 0.11 0.125 0.125 Net investment in leases and loans 600,516 615,132 618,691 629,507 Total assets 741,036 736,245 740,185 758,449 |
The Company (Details)
The Company (Details) | 12 Months Ended |
Dec. 31, 2015Number | |
More than [Member] | |
Entity Information [Line Items] | |
Categories of commercial equipment | 100 |
Assurance One Ltd Member [Member] | |
Entity Information [Line Items] | |
Entity Incorporation, State Country Name | Bermuda |
Entity Incorporation, Date of Incorporation | May 31, 2000 |
Marlin Business Bank [Member] | |
Entity Information [Line Items] | |
Entity Incorporation, State Country Name | Utah |
Entity Incorporation, Date of Incorporation | Mar. 12, 2008 |
Marlin Business Services Corp [Member] | |
Entity Information [Line Items] | |
Entity Incorporation, State Country Name | Pennsylvania |
Entity Incorporation, Date of Incorporation | Aug. 5, 2003 |
Summary of Signicant Accounting
Summary of Signicant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jul. 29, 2014 | Nov. 02, 2007 | |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | ||
Revenue Recognition [Abstract] | |||
Threshold Period Past Due For Recognition Of Insurance Income | 120 days | ||
Stock Repurchase [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 15 | $ 15 | |
Returned Equipment [Abstract] | |||
Threshold to hold returned equipment | 120 days | ||
Other Investments Abstract | |||
Threshold Original Maturity Time Deposits | 90 days |
Summary of Signicant Accounti46
Summary of Signicant Accounting Policies (Income Tax) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Taxes [Abstract] | |
Net tax receivable | $ 4.4 |
Minimum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Minimum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Maximum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Maximum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Summary of Signicant Accounti47
Summary of Signicant Accounting Policies (Interest Income) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Average lease balance is less than: | $ 10,000 |
Threshold Period Past Due For Recognition Of Interest Income | 90 days |
Net Investment in Leases and 48
Net Investment in Leases and Loans (Narratives) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net Investment in Leases and Loans [Abstract] | |||
Net Investment in Leases, Initial Direct Costs | $ 11,100 | $ 10,100 | |
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | 27,364 | 27,458 | |
Non-accrual leases and loans, end of period | 1,677 | 1,742 | $ 1,665 |
Renegotiated leases and loans, end of period | 535 | 1,014 | $ 815 |
Copier Product [Member] | |||
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | 22,700 | 22,000 | |
Secured Debt Total Long Term Bank Loan Facilities [Member] | |||
Borrowings [Line Items] | |||
Loans and Leases Receivable, Collateral for Long-term Borrowings | 151 | $ 4,569 | |
Leases Pledged as Collateral [Member] | |||
Borrowings [Line Items] | |||
Loans and Leases Receivable, Collateral for Long-term Borrowings | $ 35,400 |
Net Investment in Leases and 49
Net Investment in Leases and Loans (Net Investment Components) (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | [1] | Dec. 31, 2012 | ||
Net Investment in Leases and Loans [Abstract] | |||||||||||||
Minimum lease payments receivable | $ 761,694,000 | $ 710,801,000 | |||||||||||
Estimated Residual Value of Equipment | 27,364,000 | 27,458,000 | |||||||||||
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | (102,358,000) | (98,738,000) | |||||||||||
Security Deposits | (2,208,000) | (2,600,000) | |||||||||||
Loans, including unamortized deferred fees and costs | 6,353,000 | 1,123,000 | |||||||||||
Allowance for Credit Losses | (8,413,000) | [1] | (8,537,000) | [1] | $ (8,467,000) | $ (6,488,000) | |||||||
Net investment in leases and loans | $ 682,432,000 | $ 659,253,000 | $ 641,082,000 | $ 628,019,000 | $ 629,507,000 | $ 618,691,000 | $ 615,132,000 | $ 600,516,000 | |||||
[1] | (1) At December 31, 2015 , the allowance for credit losses allocated to loans was $0 .2 million. At December 31, 2014 and 2013 , there was no allowance for credit losses allocated to loans. |
Net Investment in Leases and 50
Net Investment in Leases and Loans (Future Minimum Lease Payments Receivable Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
2,016 | $ 320,040 | |
2,017 | 218,593 | |
2,018 | 129,975 | |
2,019 | 66,325 | |
2,020 | 25,170 | |
Thereafter | 1,591 | |
Minimum Lease Payments Receivable | 761,694 | $ 710,801 |
Future Scheduled Income Amortization [Abstract] | ||
2,016 | 53,224 | |
2,017 | 29,029 | |
2,018 | 13,667 | |
2,019 | 5,267 | |
2,020 | 1,110 | |
Thereafter | 61 | |
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | $ 102,358 | $ 98,738 |
Concentrations of Risk (Narrati
Concentrations of Risk (Narratives)(Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Impairment of Value Recorded in Period | $ 0 | $ 0 | $ 0 |
Single Vendor Source [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 2.00% | ||
Single Obligor [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 1.00% | ||
Copier Product [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 83.10% | ||
Other Products [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
California [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.00% | ||
Texas [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 9.00% | ||
All Other Individual Member [Member] | Geographic Concentration Risk [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.00% | ||
Florida [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narratives) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Allowance for Credit Losses [Line Items] | ||||||||
Loans and Leases Receivable, Allowance | $ 8,413,000 | [1] | $ 8,537,000 | [1] | $ 8,467,000 | [1] | $ 6,488,000 | |
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | |||||||
Threshold Period Past Due For Recognition Of Interest Income | 90 days | |||||||
Net charge-offs | $ 10,119,000 | $ 9,046,000 | $ 7,638,000 | |||||
Net charge-offs to average total finance receivables | [2] | 1.59% | 1.50% | 1.41% | ||||
Finance Receivables 90 Days or More Past Due and Still Accruing | $ 0 | $ 0 | ||||||
Commercial Loan [Member] | ||||||||
Allowance for Credit Losses [Line Items] | ||||||||
Loans and Leases Receivable, Allowance | $ 200,000 | $ 0 | $ 0 | |||||
[1] | (1) At December 31, 2015 , the allowance for credit losses allocated to loans was $0 .2 million. At December 31, 2014 and 2013 , there was no allowance for credit losses allocated to loans. | |||||||
[2] | Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of ( i ) the allowance for credit losses and ( ii ) initial direct costs and fees deferred are excluded. |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Allowance for Credit Losses [Roll Forward] | ||||||||||||||||
Allowance for credit losses, beginning of period | $ 8,537 | [1] | $ 8,467 | [1] | $ 8,537 | [1] | $ 8,467 | [1] | $ 6,488 | |||||||
Charge-offs | (12,453) | (11,463) | (9,499) | |||||||||||||
Recoveries | 2,334 | 2,417 | 1,861 | |||||||||||||
Net charge-offs | (10,119) | (9,046) | (7,638) | |||||||||||||
Provision for credit losses | $ 2,453 | $ 1,986 | $ 2,216 | $ 3,340 | $ 2,554 | $ 2,706 | $ 2,124 | $ 1,732 | 9,995 | 9,116 | 9,617 | |||||
Allowance for credit losses, end of period | [1] | $ 8,413 | $ 8,537 | $ 8,413 | $ 8,537 | $ 8,467 | ||||||||||
Net charge-offs to average total finance receivables | [2] | 1.59% | 1.50% | 1.41% | ||||||||||||
Allowance for credit losses to total finance receivables, end of period | [2] | 1.24% | 1.36% | 1.24% | 1.36% | 1.42% | ||||||||||
Average total finance receivables | [2] | $ 636,790 | $ 602,923 | $ 540,717 | ||||||||||||
Total finance receivables, end of period | [2] | $ 679,738 | $ 627,922 | 679,738 | 627,922 | 595,253 | ||||||||||
Delinquencies greater than 60 days past due | $ 3,163 | $ 3,602 | $ 3,163 | $ 3,602 | $ 3,204 | |||||||||||
Delinquencies greater than 60 days past due as a percentage of total finance receivables | [3] | 0.41% | 0.51% | 0.41% | 0.51% | 0.47% | ||||||||||
Allowance for credit losses to delinquent accounts greater than 60 days past due | [3] | 265.98% | 237.01% | 265.98% | 237.01% | 264.26% | ||||||||||
Non-accrual leases and loans, end of period | $ 1,677 | $ 1,742 | $ 1,677 | $ 1,742 | $ 1,665 | |||||||||||
Renegotiated leases and loans, end of period | $ 535 | $ 1,014 | $ 535 | $ 1,014 | $ 815 | |||||||||||
[1] | (1) At December 31, 2015 , the allowance for credit losses allocated to loans was $0 .2 million. At December 31, 2014 and 2013 , there was no allowance for credit losses allocated to loans. | |||||||||||||||
[2] | Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of ( i ) the allowance for credit losses and ( ii ) initial direct costs and fees deferred are excluded. | |||||||||||||||
[3] | Calculated as a percent of total minimum lease payments receivable for leases and as a percent of principal outstanding for loans. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation and Amortization Expense [Abstract] | |||
Depreciation and Amortization Expense | $ 1,200 | $ 900 | $ 900 |
Furniture and Equipment | 2,798 | 2,784 | |
Computer Systems and Equipment | 12,922 | 10,690 | |
Leasehold Improvements | 1,185 | 1,170 | |
Total Property and Equipment | 16,905 | 14,644 | |
Accumulated Depreciation and Amortization | (13,033) | (11,798) | |
Property and equipment, Net, Total | $ 3,872 | $ 2,846 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P7Y | ||
Computer Systems and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P3Y | ||
Computer Systems and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | P5Y | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | Shorter of estimated useful life or remaining lease term |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets [Abstract] | ||
Accrued fees receivable | $ 2,500 | $ 2,465 |
Prepaid expenses | 2,120 | 1,748 |
Income taxes receivable | 4,427 | 854 |
Other assets, miscellaneous | 3,474 | 3,250 |
Other assets, total | $ 12,521 | $ 8,317 |
Commitments and Contingencies56
Commitments and Contingencies (Narratives) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments and Contingencies [Abstract] | |||
Loan Participation Ownership Percentage | 1.20% | ||
Unfunded Loan Commitments | $ 0.9 | $ 0.8 | |
Membership Expiration Date | Sep. 30, 2016 | ||
Number of Offices | Number | 8 | ||
Operating Leases, Rent Expense | $ 1.1 | $ 1 | $ 1 |
Commitments and Contingencies57
Commitments and Contingencies (Future Lease Payment Obligations) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments [Abstract] | |
2016, capital lease payments due | $ 102 |
2017, capital lease payments due | 77 |
2018, capital lease payments due | 0 |
2019, capital lease payments due | 0 |
2020, capital lease payments due | 0 |
Thereafter, capital lease payments due | 0 |
Total minimum lease payments due, capital leases | 179 |
Less: amount representing interest | (9) |
Present value of minimum lease payments, capital leases | 170 |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2016, operating lease payments due | 1,582 |
2017, operating lease payments due | 1,533 |
2018, operating lease payments due | 1,478 |
2019, operating lease payments due | 1,441 |
2020, operating lease payments due | 689 |
Thereafter, operating lease payments due | 0 |
Total minimum lease payments due, operating leases | 6,723 |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
2016, total lease payments due | 1,684 |
2017, total lease payments due | 1,610 |
2018, total lease payments due | 1,478 |
2019, total lease payments due | 1,441 |
2020, total lease payments due | 689 |
Thereafter, total lease payments due | 0 |
Total minimum lease payments due | $ 6,902 |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Contractual Maturities of Time Deposits [Abstract] | ||
Deposits, Total | $ 587,940,000 | $ 550,119,000 |
Marlin Business Bank [Member] | ||
Contractual Maturities of Time Deposits [Abstract] | ||
2,016 | 232,132,000 | |
2,017 | 170,370,000 | |
2,018 | 80,996,000 | |
2,019 | 31,896,000 | |
2,020 | 19,816,000 | |
Deposits, Total | 535,210,000 | |
Maximum time deposit liability denomination | 250,000 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of deposit liabilities outstanding | 1.10% | |
Money market deposit accounts | $ 52,700,000 |
Long-term Borrowings (Narrative
Long-term Borrowings (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Restrictive Covenants | An event of default under our facility could result in an acceleration of amounts outstanding under the facility, foreclosure on all or a portion of the leases financed by the facility and/or the removal of the Company as servicer of the leases financed by the facility. | ||
Long-term Borrowings [Abstract] | |||
Loan Facilities, Commitment Fees, Unused Borrowing Capacity, Fee | $ 0.1 | $ 1.1 | $ 1 |
Maximum Number Of Days Without Chief Officer | 120 days | ||
Federal Funds Purchased [Member] | |||
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Description | MBB has established a federal funds line of credit with a correspondent bank. This line allows for both selling and purchasing of federal funds. The amount that can be drawn against the line is limited to $23.0 million. | ||
Federal Funds Purchased [Member] | MBB [Member] | |||
Debt Instrument Terms [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 23 | ||
Federal Reserve Bank Advances [Member] | MBB [Member] | |||
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Description | In addition, MBB has received approval to borrow from the Federal Reserve Discount Window based on the amount of assets MBB chooses to pledge. MBB had $32.4 million in unused, secured borrowing capacity at the Federal Reserve Discount Window, based on $35.4 million of net investment in leases pledged at December 31, 2015. | ||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 32.4 | ||
Long-term Loan Facilities, Wells Fargo Capital Finance [Member] | MRC [Member] | |||
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Description | On October 9, 2009, Marlin Business Services Corp.’s wholly-owned subsidiary, Marlin Receivables Corp. (“MRC”), closed on a $75.0 million, three-year committed loan facility with the lender finance division of Wells Fargo Capital Finance. The facility is secured by a lien on MRC’s assets and is supported by guaranties from Marlin Business Services Corp. and MLC. Advances under the facility are made pursuant to a borrowing base formula, and the proceeds are used to fund lease originations. On April 8, 2015, the facility was amended to change the amount under the loan facility from $75.0 million to $50.0 million. On October 6, 2015, the facility was amended to extend the maturity date to February 4, 2016. On February 4, 2016, the facility was further amended to extend the maturity date to May 4, 2016. An event of default, such as non-payment of amounts when due under the loan agreement or a breach of covenants, may accelerate the maturity date of the facility | ||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 50 | ||
Debt Instrument, Issuance Date | Oct. 9, 2009 | ||
Debt Instrument, Face Amount | $ 50 | ||
Debt Instrument Extension Date | Oct. 6, 2015 | ||
Debt Instrument, Maturity Date | May 4, 2016 | ||
Long-term Borrowings [Abstract] | |||
Debt Instrument Further Extension Date | Feb. 4, 2016 | ||
Long-term Loan Facilities, Key Equipment Finance [Member] | MLR XIII [Member] | |||
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Description | On September 24, 2010, the Company’s subsidiary, Marlin Leasing Receivables XIII LLC (“MLR XIII”), closed on a $50.0 million three-year committed loan facility with Key Equipment Finance Inc. The facility is secured by a lien on MLR XIII’s assets. Advances under the facility are made pursuant to a borrowing base formula, and the proceeds are used to fund lease originations. The maturity date of the facility was September 23, 2013. On March 15, 2013, the Company elected to exercise its option to repay the remaining $1.3 million of the facility. | ||
Debt Instrument, Issuance Date | Sep. 24, 2010 | ||
Debt Instrument, Face Amount | $ 50 | ||
Debt Instrument, Maturity Date | Sep. 23, 2013 | ||
Debt Instrument, Decrease Due to Prepayment | $ 1.3 | ||
Long-term Loan Facilities, Total [Member] | |||
Debt Instrument Terms [Line Items] | |||
Debt Instrument, Subjective Acceleration Clause | The Company’s long-term loan facility contains acceleration clauses allowing the creditor to accelerate the scheduled maturities of the obligation under certain conditions that may not be objectively determinable (for example, “if a material adverse change occurs”). |
Long-term Borrowings (Component
Long-term Borrowings (Components and Collateral) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Loan Facilities, Total [Member] | ||
Borrowings [Line Items] | ||
Long-term borrowings | $ 0 | |
Loans and Leases Receivable, Collateral for Long-term Borrowings | 151 | $ 4,569 |
Leases Pledged as Collateral [Member] | ||
Borrowings [Line Items] | ||
Loans and Leases Receivable, Collateral for Long-term Borrowings | $ 35,400 |
Long-term Borrowings (Financial
Long-term Borrowings (Financial Covenants) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | ||
Compliance With Debt Covenant Requirements [Line Items] | |||
Employment Resignation Date | May 31, 2015 | ||
Employment Start Date | Aug. 4, 2015 | ||
Employment Retirement Date | Oct. 20, 2015 | ||
Charge, net of income taxes, related to resignation | $ 2 | $ 0.2 | |
Scenario, Actual [Member] | |||
Compliance With Debt Covenant Requirements [Line Items] | |||
Compliance with All Debt Covenant Requirements | Yes | ||
Scenario, Actual [Member] | Maximum [Member] | |||
Compliance With Debt Covenant Requirements [Line Items] | |||
Debt-to-Equity Ratio | [1] | 3.92 | |
Servicer Senior Leverage Ratio | [1] | 0 | |
Portfolio Delinquency Ratio | [2] | 0.00% | |
Gross Charge-off Ratio | [1] | 1.94% | |
Compliance with All Debt Covenant Requirements | Yes | ||
Scenario, Requirement [Member] | Maximum [Member] | |||
Compliance With Debt Covenant Requirements [Line Items] | |||
Debt-to-Equity Ratio | 5.5 | ||
Servicer Senior Leverage Ratio | 5 | ||
Portfolio Delinquency Ratio | 3.50% | ||
Gross Charge-off Ratio | 7.00% | ||
[1] | (1) Calculations are based on specific contractual definitions and subsidiaries per the applicable debt agreements, which may differ from ratios or amounts presented elsewhere in this document. | ||
[2] | (2) As of February 3, 2016, this covenant was waived effective December 31, 2015. |
Fair Value Measurements and D62
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 6,399 | $ 5,722 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,332 | 3,281 |
Interest-rate caps purchased | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,067 | 2,441 |
Interest-rate caps purchased | $ 0 | $ 0 |
Fair Value Measurements and D63
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Estimated Fair Values and Carrying Amounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | $ 60,129 | $ 110,656 | $ 85,653 | $ 64,970 |
Time deposits | 7,368 | 0 | ||
Restricted interest-earning deposits with banks | 216 | 711 | ||
Loans, including unamortized deferred fees and costs | 6,353 | 1,123 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 587,940 | 550,119 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 60,129 | 110,656 | ||
Time deposits | 7,368 | 0 | ||
Restricted interest-earning deposits with banks | 216 | 711 | ||
Loans, net of allowance | 6,179 | 1,123 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 587,940 | 550,119 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 60,129 | 110,656 | ||
Restricted interest-earning deposits with banks | 216 | 711 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Time deposits | 7,356 | 0 | ||
Loans, net of allowance | 6,152 | 1,123 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | $ 586,898 | $ 549,578 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Examination [Line Items] | |
Net tax receivable | $ 4.4 |
Minimum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Minimum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Maximum [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Maximum [Member] | State [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||||||||||
Current Federal Tax Expense (Benefit) | $ 7,983 | $ 10,212 | $ 9,112 | ||||||||
Current State and Local Tax Expense (Benefit) | 1,582 | 1,764 | 1,325 | ||||||||
Current Income Tax Expense (Benefit), Total | 9,565 | 11,976 | 10,437 | ||||||||
Deferred Federal Income Tax Expense (Benefit) | 475 | 91 | (811) | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | (778) | (145) | 143 | ||||||||
Deferred Income Tax Expense (Benefit), Total | (303) | (54) | (668) | ||||||||
Income Tax Expense (Benefit), Total | $ 1,089 | $ 2,982 | $ 2,634 | $ 2,557 | $ 3,062 | $ 3,039 | $ 2,921 | $ 2,900 | $ 9,262 | $ 11,922 | $ 9,769 |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Liability Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets [Abstract] | ||
Deferred Tax Asset, Allowance for Credit Losses | $ 3,532 | $ 3,730 |
Deferred Tax Asset, Accrued Expenses | 757 | 1,092 |
Deferred Tax Asset, Deferred Income | 1,774 | 1,788 |
Deferred Tax Asset, Deferred Compensation | 820 | 958 |
Deferred Tax Asset, Other Comprehensive Income | 80 | 11 |
Deferred Tax Asset, Other | 403 | 190 |
Total Deferred Income Tax Assets | 7,366 | 7,769 |
Components of Deferred Tax Liabilities [Abstract] | ||
Deferred Tax Liability, Lease Accounting | (21,180) | (21,950) |
Deferred Tax Liability, Deferred Acquisition Costs | (2,908) | (2,889) |
Deferred Tax Liability, Depreciation | (127) | (151) |
Total Deferred Income Tax Liabilities | (24,215) | (24,990) |
Net Deferred Income Tax Liability | $ (16,849) | $ (17,221) |
Income Taxes (Statutory Rate Re
Income Taxes (Statutory Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
State Taxes, Net of Federal Benefit | 3.20% | 3.40% | 3.70% |
Other Permanent Differences | (0.60%) | (0.40%) | (0.50%) |
Interest on Amended Returns | 0.00% | 0.00% | (0.60%) |
Other Adjustments | (0.90%) | 0.10% | 0.00% |
Effective Income Tax Rate | 36.70% | 38.10% | 37.60% |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS Basic) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings Per Share, Basic [Abstract] | |||||||||||||
Net Income | $ 2,965,000 | [1] | $ 4,797,000 | $ 4,149,000 | [1] | $ 4,055,000 | $ 4,867,000 | $ 4,904,000 | $ 4,936,000 | $ 4,643,000 | $ 15,966,000 | $ 19,350,000 | $ 16,231,000 |
Less: net income allocated to participating securities | (465,000) | (552,000) | (593,000) | ||||||||||
Net income allocated to common stock | $ 15,501,000 | $ 18,798,000 | $ 15,638,000 | ||||||||||
Weighted average common shares outstanding | 12,722,234 | 12,887,643 | 12,905,110 | ||||||||||
Less: Unvested restricted stock awards considered participating securities | (357,361) | (367,147) | (506,985) | ||||||||||
Adjusted weighted average common shares used in computing basic EPS | 12,364,873 | 12,520,496 | 12,398,125 | ||||||||||
Basic earnings per share | $ 0.24 | $ 0.38 | $ 0.32 | $ 0.31 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.36 | $ 1.25 | $ 1.5 | $ 1.26 | ||
[1] | Net income for the second quarter of 201 5 reflects an after-tax adjustment charge of approximately $0. 2 million, o r $0. 02 diluted earnings per share , due to the departure of the Company’s Chief Financial Officer. Net income for the fourth quarter of 201 5 reflects an after-tax adjustment charge of approximately $ 2.0 million, o r $0.1 6 diluted earnings per share , due to the departure of the Company’s Chief Executive Officer. |
Earnings Per Common Share (EP69
Earnings Per Common Share (EPS Diluted) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income allocated to common stock | $ 15,501,000 | $ 18,798,000 | $ 15,638,000 | ||||||||
Adjusted weighted average common shares used in computing basic EPS | 12,364,873 | 12,520,496 | 12,398,125 | ||||||||
Add: Effect of dilutive stock options | 16,679 | 55,442 | 87,096 | ||||||||
Adjusted weighted average common shares used in computing diluted EPS | 12,381,552 | 12,575,938 | 12,485,221 | ||||||||
Diluted earnings per share | $ 0.24 | $ 0.38 | $ 0.32 | $ 0.31 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.36 | $ 1.25 | $ 1.49 | $ 1.25 |
Antidilutive securities excluded from computation of earnings per share amount | 5,203 | 15,698 | 23,036 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 29, 2014 | Nov. 02, 2007 | |
Stock Repurchase [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 15,000 | $ 15,000 | |||
Marlin Business Services Corp. [Member] | |||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | |||||
Total stockholders equity (regulatory) | $ 150,222 | ||||
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% | ||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | ||||
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | ||||
New Capital Conservation Buffer | 2.50% | ||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ||||
Total Risk Based Capital to Risk Weighted Assets | 22.02% | ||||
MBB [Member] | |||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | |||||
Total stockholders equity (regulatory) | $ 123,483 | ||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | ||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 5.00% | ||||
FDIC Agreement Capital Required To Be Well Capitalized To Risk Weighted Assets | 15.00% | ||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | ||||
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | ||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | ||||
Total Risk Based Capital to Risk Weighted Assets | 18.71% | ||||
Instrument Stock 2007 Repurchase Plan [Member] | |||||
Stock Repurchase [Line Items] | |||||
Stock Repurchased During Period, Shares | 113,884 | 231 | |||
Stock Repurchased During Period, Average Cost Per Share | $ 19.66 | $ 18.52 | |||
Instrument Equity Compensation Plan [Member] | |||||
Stock Repurchase [Line Items] | |||||
Stock Repurchased During Period, Shares | 65,143 | 71,673 | 53,757 | ||
Stock Repurchased During Period, Average Cost Per Share | $ 17.74 | $ 22.64 | $ 21.65 | ||
Instrument Stock 2014 Repurchase Plan [Member] | |||||
Stock Repurchase [Line Items] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3,200 | ||||
Stock Repurchased During Period, Shares | 594,760 | 97,507 | |||
Stock Repurchased During Period, Average Cost Per Share | $ 17.09 | $ 19.08 |
Stockholders's Equity (Dividend
Stockholders's Equity (Dividends) (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends Payable [Line Items] | |||
Cash dividends paid | $ 32,249,000 | $ 6,062,000 | $ 31,369,000 |
2013 Special Cash Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per share | $ 2 | ||
Cash dividends paid | $ 26,000,000 | ||
Cash dividend declared on common stock, date declared | Sep. 4, 2013 | ||
Date that dividend was paid | Sep. 26, 2013 | ||
Cash dividend declared on common stock, date of record | Sep. 16, 2013 | ||
2015 Special Cash Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Cash dividends declared per share | $ 2 | ||
Cash dividends paid | $ 25,500,000 | ||
Cash dividend declared on common stock, date declared | Sep. 14, 2015 | ||
Date that dividend was paid | Oct. 5, 2015 | ||
Cash dividend declared on common stock, date of record | Sep. 24, 2015 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Ratios) (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Marlin Business Services Corp. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 150,222 | |
Tier One Leverage Capital Required for Capital Adequacy | 30,603 | |
Tier One Leverage Capital Required to be Well Capitalized | 38,254 | |
Common Equity Tier One Risk Based Capital | 150,222 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 32,414 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 46,820 | |
Tier One Risk Based Capital | 150,222 | |
Tier One Risk Based Capital Required for Capital Adequacy | 43,219 | |
Tier One Risk Based Capital Required to be Well Capitalized | 57,625 | |
Total Risk Based Capital | 158,635 | |
Total Risk Based Capital Required for Capital Adequacy | 57,625 | |
Total Risk Based Capital Required to be Well Capitalized | $ 72,031 | |
Tier One Leverage Capital to Average Assets | 19.63% | |
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 | 20.86% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 20.86% | |
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 | 22.02% | |
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% | |
MBB [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 123,483 | |
Tier One Leverage Capital Required for Capital Adequacy | 36,542 | |
Tier One Leverage Capital Required to be Well Capitalized | 36,542 | |
Common Equity Tier One Risk Based Capital | 123,483 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 45,769 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 45,769 | |
Tier One Risk Based Capital | 123,483 | |
Tier One Risk Based Capital Required for Capital Adequacy | 56,331 | |
Tier One Risk Based Capital Required to be Well Capitalized | 56,331 | |
Total Risk Based Capital | 131,758 | |
Total Risk Based Capital Required for Capital Adequacy | 105,620 | |
Total Risk Based Capital Required to be Well Capitalized | $ 70,413 | |
Tier One Leverage Capital to Average Assets | 16.90% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 5.00% | |
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 | 17.54% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | |
Common Equity Tier One Risk Base Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 17.54% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |
Total Risk Based Capital to Risk Weighted Assets | 18.71% | |
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | |
Total Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | [1] |
[1] | (1) MBB is required to maintain “well-capitalized” status and must also maintain a total risk-based capital ratio greater than 15% pursuant to the FDIC Agreement. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,200,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 921,936 | ||
Number of Shares, Stock Options Granted | 0 | 0 | 0 |
Stock-based Compensation Expense | $ 2,800,000 | $ 2,000,000 | $ 2,600,000 |
Stock Options Exercised, Number of Shares | 61,937 | 14,469 | 127,957 |
Stock Options Exercised, Total Intrinsic Value | $ 600,000 | $ 100,000 | $ 1,700,000 |
Number of Shares, Stock Options Forfeited | 80,728 | 0 | 4,229 |
Weighted Average Exercise Price Per Share, Option Forfeitures | $ 9.64 | $ 0 | $ 10.38 |
Weighted Average Exercise Price Per Share, Options Granted | $ 0 | $ 0 | $ 0 |
Excess tax benefits from stock-based payment arrangements | $ 333,000 | $ 754,000 | $ 1,052,000 |
Common Stock Closing Price Per Share | $ 16.06 | ||
Stock Options [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Number of Shares, Stock Options Granted | 0 | 0 | 0 |
Stock-based Compensation Expense | $ 108,000 | $ 100,000 | $ 200,000 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Incremental Cost at Maximum Performance | $ 100,000 | ||
Stock-based Awards, Vesting Period in Years | 4 years | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Pre-expiration Vesting | $ 0 | ||
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] | |||
Equity Compensation Plan, Grant Original Contractual Term in Years | 7 years | ||
Stock Options [Member] | Maximum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Grant Original Contractual Term in Years | 10 years | ||
Restricted Stock [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,000,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 721,936 | ||
Stock-based Compensation Expense | $ 2,700,000 | 2,000,000 | 2,400,000 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 3,600,000 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 4 years | ||
Stock-based Awards Other Than Options, Subject to Performance Acceleration, Grants in Period | 77,342 | ||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | ||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 3,000,000 | 2,200,000 | 3,300,000 |
Stock-based Compensation Expense Due to Performance Acceleration | 500,000 | 600,000 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | $ 1,200,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration, Period for Recognition, in Years | 11 months | ||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 43,764 | ||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable Achievement Threshold | 100.00% | ||
Stock-based Awards Other than Options, Vested in Period, Total Fair Value | $ 3,400,000 | $ 5,400,000 | $ 3,500,000 |
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 | 10 years | ||
Restricted Stock [Member] | Maximum [Member] | Director [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period in Years | 7 years | ||
Employee Stock Purchase Plan 2012 [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 140,000 | ||
Employee Stock Purchase Plan, Maximum Employee Compensation Contribution Percentage | 10.00% | ||
Employee Stock Purchase Plan, Purchase Price Per Share as Percent of Fair Market Value | 95.00% | ||
Employee Stock Purchase Plan, Issuance of Common Stock, Shares | 14,929 | 14,428 | 14,727 |
Employee Stock Purchase Plan, Issuance of Common Stock, Value | $ 200,000 | $ 300,000 | $ 300,000 |
Employee Stock Purchase Plan, Number Of Shares Available For Issuance | 87,128 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | |||
Number of Shares Outstanding, Beginning of Period | 193,351 | 218,917 | 363,519 |
Number of Shares, Stock Options Granted | 0 | 0 | 0 |
Number of Shares, Stock Options Exercised | (61,937) | (14,469) | (127,957) |
Number of Shares, Stock Options Forfeited | (80,728) | 0 | (4,229) |
Number of Shares, Stock Options Expired | 0 | (11,097) | (12,416) |
Number of Shares Outstanding, End of Period | 50,686 | 193,351 | 218,917 |
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ 10.23 | $ 10.4 | $ 11.21 |
Weighted Average Exercise Price Per Share, Options Granted | 0 | 0 | 0 |
Weighted Average Exercise Price Per Share, Options Exercised | 9.48 | 10.66 | 11.91 |
Weighted Average Exercise Price Per Share, Option Forfeitures | 9.64 | 0 | 10.38 |
Weighted Average Exercise Price Per Share, Options Expired | 0 | 13.1 | 18.48 |
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ 12.09 | $ 10.23 | $ 10.4 |
Stock-Based Compensation (Sum75
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Shares | 50,686 | 193,351 | 218,917 | 363,519 |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 5 months | |||
Options Outstanding, Weighted Average Exercise Price | $ 12.09 | $ 10.23 | $ 10.4 | $ 11.21 |
Options Outstanding, Aggregate Intrinsic Value | $ 201 | |||
Options Exercisable, Number of Shares | 46,796 | |||
Options Exercisable, Weighted Average Remaining Life (Years) | 1 year 5 months | |||
Options Exercisable, Weighted Average Exercise Price | $ 12.06 | |||
Options Exercisable, Aggregate Intrinsic Value | $ 187 | |||
$7.17 - 7.79 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 7.17 | |||
Options Outstanding and Exercisable, Upper Price in Range Category | $ 7.79 | |||
Options Outstanding, Number of Shares | 2,878 | |||
Options Outstanding, Weighted Average Remaining Life (Years) | 10 months | |||
Options Outstanding, Weighted Average Exercise Price | $ 7.35 | |||
Options Outstanding, Aggregate Intrinsic Value | $ 25 | |||
Options Exercisable, Number of Shares | 2,878 | |||
Options Exercisable, Weighted Average Remaining Life (Years) | 10 months | |||
Options Exercisable, Weighted Average Exercise Price | $ 7.35 | |||
Options Exercisable, Aggregate Intrinsic Value | $ 25 | |||
$12.08 - 12.41 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 12.08 | |||
Options Outstanding and Exercisable, Upper Price in Range Category | $ 12.41 | |||
Options Outstanding, Number of Shares | 47,808 | |||
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 5 months | |||
Options Outstanding, Weighted Average Exercise Price | $ 12.38 | |||
Options Outstanding, Aggregate Intrinsic Value | $ 176 | |||
Options Exercisable, Number of Shares | 43,918 | |||
Options Exercisable, Weighted Average Remaining Life (Years) | 1 year 5 months | |||
Options Exercisable, Weighted Average Exercise Price | $ 12.37 | |||
Options Exercisable, Aggregate Intrinsic Value | $ 162 |
Stock-Based Compensation (Sum76
Stock-Based Compensation (Summary of Non-Vested Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |||
Shares Outstanding, Beginning of Period | 346,036 | 494,462 | 523,967 |
Shares, Granted | 179,162 | 118,293 | 163,417 |
Shares, Vested | (188,287) | (246,284) | (160,738) |
Shares, Forfeited | (23,675) | (20,435) | (32,184) |
Shares Outstanding, End of Period | 313,236 | 346,036 | 494,462 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 15.99 | $ 14.67 | $ 11.94 |
Weighted Average Grant-Date Fair Value, Granted | 16.87 | 18.72 | 20.29 |
Weighted Average Grant-Date Fair Value, Vested | 15.41 | 14.36 | 11.05 |
Weighted Average Grant-Date Fair Value, Forfeited | 18.53 | 19.46 | 16.83 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ 16.65 | $ 15.99 | $ 14.67 |
Employee 401(k) Plan (Narrative
Employee 401(k) Plan (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee 401(k) Plan [Abstract] | |||
Description of 401(k) Plan | The Company adopted a 401(k) plan (the “401(k) Plan”) which originally became effective as of January 1, 1997. The Company’s employees are entitled to participate in the 401(k) Plan, which provides savings and investment opportunities. Employees can contribute up to the maximum annual amount allowable per Internal Revenue Service guidelines. Effective July 1, 2007, the 401(k) Plan provides for Company contributions equal to 25% of an employee’s contribution percentage up to a maximum employee contribution of 6%. The Company’s Board of Directors voted to authorize the doubling of the required match for the calendar year 2012. | ||
Company Contributions to Employee 401(k) Plan | $ 0.2 | $ 0.1 | $ 0.4 |
Maximum Employee Contribution for Company Matching | 25.00% | ||
Employer Contribution per Dollar of Employee Contribution | 6.00% |
Related Party Transactions (Nar
Related Party Transactions (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.4 | $ 0.4 | $ 0.5 |
Parent Company (Balance Sheet)
Parent Company (Balance Sheet) (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Total assets | $ 772,984,000 | $ 790,454,000 | $ 764,972,000 | $ 769,229,000 | $ 758,449,000 | $ 740,185,000 | $ 736,245,000 | $ 741,036,000 | ||
Total liabilities | 622,846,000 | 584,485,000 | ||||||||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,410,899 and 12,838,449 shares issued and outstanding at December 31, 2015 and 2014, respectively | 124,000 | 128,000 | ||||||||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 | ||||||||
Additional paid-in capital | 81,703,000 | 89,130,000 | ||||||||
Stock subscription receivable | (2,000) | (2,000) | ||||||||
Accumulated other comprehensive income | (129,000) | (17,000) | ||||||||
Retained earnings | 68,442,000 | 84,725,000 | ||||||||
Total stockholders' equity | 150,138,000 | 173,964,000 | $ 163,038,000 | $ 174,250,000 | ||||||
Total liabilities and stockholders' equity | 772,984,000 | 758,449,000 | ||||||||
Marlin Business Services Corp. [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Investments in bank subsidiary | 123,398,000 | 115,978,000 | ||||||||
Investments in non bank subsidiaries | 26,740,000 | 57,986,000 | ||||||||
Total assets | 150,138,000 | 173,964,000 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,410,899 and 12,838,449 shares issued and outstanding at December 31, 2015 and 2014, respectively | 124,000 | 128,000 | ||||||||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 | ||||||||
Additional paid-in capital | 81,703,000 | 89,130,000 | ||||||||
Stock subscription receivable | (2,000) | (2,000) | ||||||||
Accumulated other comprehensive income | (129,000) | (17,000) | ||||||||
Retained earnings | 68,442,000 | 84,725,000 | ||||||||
Total stockholders' equity | 150,138,000 | 173,964,000 | ||||||||
Total liabilities and stockholders' equity | $ 150,138,000 | $ 173,964,000 |
Parent Company (Income Statemen
Parent Company (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Expenses [Abstract[ | |||||||||||
Income tax expense | $ 1,089 | $ 2,982 | $ 2,634 | $ 2,557 | $ 3,062 | $ 3,039 | $ 2,921 | $ 2,900 | $ 9,262 | $ 11,922 | $ 9,769 |
Comprehensive Income | |||||||||||
Increase (decrease) in fair value of securities available for sale | (181) | 388 | (506) | ||||||||
Tax effect | 69 | (148) | 194 | ||||||||
Total other comprehensive income | (112) | 240 | (312) | ||||||||
Comprehensive Income | 15,854 | 19,590 | 15,919 | ||||||||
Marlin Business Services Corp. [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Total revenue | 56,569 | 11,789 | 42,537 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Total expense | 0 | 0 | 0 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 56,569 | 11,789 | 42,537 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income of parent | 15,966 | 19,350 | 16,231 | ||||||||
Comprehensive Income | |||||||||||
Increase (decrease) in fair value of securities available for sale | (181) | 388 | (506) | ||||||||
Tax effect | 69 | (148) | 194 | ||||||||
Total other comprehensive income | (112) | 240 | (312) | ||||||||
Comprehensive Income | 15,854 | 19,590 | 15,919 | ||||||||
Marlin Business Services Corp. [Member] | Bank Subsidiary [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Dividend Income Operating | 13,000 | 0 | 0 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Equity in undistributed net (income) losses of subsidiaries | 7,532 | 20,484 | 16,167 | ||||||||
Marlin Business Services Corp. [Member] | Non Bank Subsidiaries [Member] | |||||||||||
Operating Revenues [Abstract] | |||||||||||
Dividend Income Operating | 43,569 | 11,789 | 42,537 | ||||||||
Operating Expenses [Abstract[ | |||||||||||
Equity in undistributed net (income) losses of subsidiaries | $ (48,135) | $ (12,923) | $ (42,473) |
Parent Company (Statement of Ca
Parent Company (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by (used in) operating activities | $ 26,621 | $ 32,669 | $ 45,920 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | (72,553) | (44,119) | (104,882) |
Cash flows from financing activities: | |||
Issuances of common stock | 234 | 253 | 270 |
Repurchases of common stock | (11,320) | (5,727) | (1,168) |
Dividends paid | (32,249) | (6,062) | (31,369) |
Proceeds from Stock Options Exercised | 586 | 154 | 1,524 |
Net cash provided by (used in) financing activities | (4,595) | 36,453 | 79,645 |
Marlin Business Services Corp. [Member] | |||
Cash flows from operating activities: | |||
Net income of parent | 15,966 | 19,350 | 16,321 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net (income) losses of subsidiaries | (2,966) | (19,350) | (424) |
Net cash provided by (used in) operating activities | 13,000 | 0 | 15,807 |
Cash flows from investing activities: | |||
Capital returned from nonbank subsidiaries | 43,569 | 11,789 | 26,730 |
Capital contributed to subsidiaries | (13,820) | (407) | (11,794) |
Net cash provided by (used in) investing activities | 29,749 | 11,382 | 14,936 |
Cash flows from financing activities: | |||
Issuances of common stock | 234 | 253 | 270 |
Repurchases of common stock | (11,320) | (5,727) | (1,168) |
Dividends paid | (32,249) | (6,062) | (31,369) |
Proceeds from Stock Options Exercised | 586 | 154 | 1,524 |
Net cash provided by (used in) financing activities | $ (42,749) | $ (11,382) | $ (30,743) |
Subsequent Events (Narratives)
Subsequent Events (Narratives) (Details) | Feb. 22, 2016USD ($) | Feb. 12, 2016 | Feb. 04, 2016USD ($) | Feb. 01, 2016Number$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Subsequent Event [Line Items] | |||||||
Cash dividends declared | $ 32,249,000 | $ 6,062,000 | $ 31,369,000 | ||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared per share | $ / shares | $ 0.14 | ||||||
Cash dividends declared | $ 1,700,000 | ||||||
Cash dividend declared on common stock, date of record | Feb. 12, 2016 | ||||||
Number of consecutive cash dividends declared on common stock | Number | 18 | ||||||
Debt Instrument, Face Amount | $ 50,000,000 | ||||||
Debt Instrument, Maturity Date | May 4, 2016 |
Selected Quaterly Finacial Data
Selected Quaterly Finacial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Interest income | $ 16,997,000 | $ 16,690,000 | $ 16,488,000 | $ 16,487,000 | $ 16,582,000 | $ 16,705,000 | $ 16,740,000 | $ 16,737,000 | $ 66,662,000 | $ 66,764,000 | $ 63,685,000 | |||
Fee income | 3,529,000 | 3,915,000 | 3,727,000 | 4,120,000 | 3,904,000 | 3,881,000 | 3,450,000 | 3,685,000 | 15,291,000 | 14,920,000 | 13,390,000 | |||
Interest and fee income | 20,526,000 | 20,605,000 | 20,215,000 | 20,607,000 | 20,486,000 | 20,586,000 | 20,190,000 | 20,422,000 | 81,953,000 | 81,684,000 | 77,075,000 | |||
Interest expense | 1,609,000 | 1,433,000 | 1,336,000 | 1,318,000 | 1,318,000 | 1,250,000 | 1,216,000 | 1,181,000 | 5,696,000 | 4,965,000 | 4,545,000 | |||
Provision for credit losses | 2,453,000 | 1,986,000 | 2,216,000 | 3,340,000 | 2,554,000 | 2,706,000 | 2,124,000 | 1,732,000 | 9,995,000 | 9,116,000 | 9,617,000 | |||
Income tax expense | 1,089,000 | 2,982,000 | 2,634,000 | 2,557,000 | 3,062,000 | 3,039,000 | 2,921,000 | 2,900,000 | 9,262,000 | 11,922,000 | 9,769,000 | |||
Net income | $ 2,965,000 | [1] | $ 4,797,000 | $ 4,149,000 | [1] | $ 4,055,000 | $ 4,867,000 | $ 4,904,000 | $ 4,936,000 | $ 4,643,000 | $ 15,966,000 | $ 19,350,000 | $ 16,231,000 | |
Basic earnings per share | $ 0.24 | $ 0.38 | $ 0.32 | $ 0.31 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.36 | $ 1.25 | $ 1.5 | $ 1.26 | |||
Diluted earnings per share | 0.24 | 0.38 | 0.32 | 0.31 | 0.38 | 0.38 | 0.38 | 0.36 | 1.25 | 1.49 | 1.25 | |||
Cash dividends declared and paid per share | $ 0.14 | $ 2.14 | [2] | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.11 | $ 0.11 | $ 2.53 | $ 0.47 | $ 2.42 | ||
Net investment in leases and loans | $ 682,432,000 | $ 659,253,000 | $ 641,082,000 | $ 628,019,000 | $ 629,507,000 | $ 618,691,000 | $ 615,132,000 | $ 600,516,000 | $ 682,432,000 | $ 629,507,000 | ||||
Total assets | 772,984,000 | $ 790,454,000 | 764,972,000 | $ 769,229,000 | $ 758,449,000 | $ 740,185,000 | $ 736,245,000 | $ 741,036,000 | 772,984,000 | $ 758,449,000 | ||||
Charge, net of income taxes, related to resignation | $ 2,000,000 | $ 200,000 | $ 2,000,000 | |||||||||||
Charge, net of income taxes, related to resignation per diluted share | $ 0.16 | $ 0.02 | ||||||||||||
[1] | Net income for the second quarter of 201 5 reflects an after-tax adjustment charge of approximately $0. 2 million, o r $0. 02 diluted earnings per share , due to the departure of the Company’s Chief Financial Officer. Net income for the fourth quarter of 201 5 reflects an after-tax adjustment charge of approximately $ 2.0 million, o r $0.1 6 diluted earnings per share , due to the departure of the Company’s Chief Executive Officer. | |||||||||||||
[2] | I n addition to the Company’s regular quarterly dividend, the Company’s Board of Directors declared a special cash dividend of $2.00 per share on September 1 4, 201 5 . |