Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Mar. 31, 2016 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 12,494,809 | |
Trading Symbol | MRLN |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 3,402 | $ 4,946 |
Interest-earning deposits with banks | 61,691 | 55,183 |
Total cash and cash equivalents | 65,093 | 60,129 |
Time deposits | 8,613 | 7,368 |
Restricted interest-earning deposits with banks | 112 | 216 |
Securities available for sale (amortized cost of $6.4 million and $6.6 million at March 31, 2016 and December 31, 2015, respectively) | 6,276 | 6,399 |
Net investment in leases and loans | 702,126 | 682,432 |
Property and equipment, net | 3,687 | 3,872 |
Property tax receivable | 5,866 | 47 |
Other assets | 9,333 | 12,521 |
Total assets | 801,106 | 772,984 |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Deposits | 612,721 | 587,940 |
Other liabilities: | ||
Sales and property taxes payable | 7,911 | 2,686 |
Accounts payable and accrued expenses | 11,709 | 15,371 |
Net deferred income tax liability | 16,289 | 16,849 |
Total liabilities | 648,630 | 622,846 |
Stockholders equity: | ||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,492,310 and 12,410,899 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 125 | 124 |
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 82,056 | 81,703 |
Stock subscription receivable | (2) | (2) |
Accumulated other comprehensive income (loss) | (49) | (129) |
Retained earnings | 70,346 | 68,442 |
Total stockholders equity | 152,476 | 150,138 |
Total liabilities and stockholders equity | $ 801,106 | $ 772,984 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Available-for-sale securities, amortized cost | $ 6.4 | $ 6.6 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 12,492,310 | 12,410,899 |
Common stock shares outstanding | 12,492,310 | 12,410,899 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||
Interest income | $ 17,531 | $ 16,487 |
Fee income | 3,834 | 4,120 |
Interest and fee income | 21,365 | 20,607 |
Interest expense | 1,692 | 1,318 |
Net interest and fee income | 19,673 | 19,289 |
Provision for credit losses | 3,075 | 3,340 |
Net interest and fee income after provision for credit losses | 16,598 | 15,949 |
Other income: | ||
Insurance income | 1,622 | 1,466 |
Other income | 455 | 365 |
Other income | 2,077 | 1,831 |
Other expense: | ||
Salaries and benefits | 8,200 | 6,967 |
General and administrative | 4,465 | 4,093 |
Financing related costs | 34 | 108 |
Other expense | 12,699 | 11,168 |
Income before income taxes | 5,976 | 6,612 |
Income tax expense | 2,325 | 2,557 |
Net income | $ 3,651 | $ 4,055 |
Basic earnings per share | $ 0.29 | $ 0.31 |
Diluted earnings per share | 0.29 | 0.31 |
Cash dividends declared and paid per share | $ 0.14 | $ 0.125 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive Income | ||
Net income | $ 3,651 | $ 4,055 |
Other Comprehensive Income (Loss) | ||
Increase (decrease) in fair value of securities available for sale | 130 | (29) |
Tax effect | (50) | 11 |
Total other comprehensive income (loss) | 80 | (18) |
Comprehensive Income | $ 3,731 | $ 4,037 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | 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, 2014 | $ 173,964 | $ 128 | $ 89,130 | $ (2) | $ (17) | $ 84,725 |
Balance, Shares at Dec. 31, 2014 | 12,838,449 | |||||
Issuance of common stock | 234 | 234 | ||||
Issuance of common stock, shares | 14,929 | |||||
Repurchase of common stock | (11,320) | $ (7) | (11,313) | |||
Repurchase of common stock, shares | (659,903) | |||||
Exercise of stock options | 586 | $ 1 | 585 | |||
Exercise of stock options, shares | 61,937 | |||||
Excess tax benefits from stock-based payment arrangements | 333 | 333 | ||||
Stock option compensation recognized | 108 | 108 | ||||
Restricted stock grant | $ 2 | (2) | ||||
Restricted stock grant, shares | 155,487 | |||||
Restricted stock compensation recognized | 2,628 | 2,628 | ||||
Net change in unrealized gain/loss on securities available for sale, net of tax | (112) | (112) | ||||
Net income | 15,966 | 15,966 | ||||
Cash dividends paid | (32,249) | (32,249) | ||||
Balance at Dec. 31, 2015 | $ 150,138 | $ 124 | 81,703 | (2) | (129) | 68,442 |
Balance, Shares at Dec. 31, 2015 | 12,410,899 | 12,410,899 | ||||
Issuance of common stock | $ 0 | 0 | ||||
Issuance of common stock, shares | 0 | |||||
Repurchase of common stock | (309) | $ 0 | (309) | |||
Repurchase of common stock, shares | (21,448) | |||||
Exercise of stock options | $ 0 | $ 0 | 0 | |||
Exercise of stock options, shares | 0 | 0 | ||||
Excess tax benefits from stock-based payment arrangements | $ (80) | (80) | ||||
Stock option compensation recognized | 0 | 0 | ||||
Restricted stock grant | $ 1 | (1) | ||||
Restricted stock grant, shares | 102,859 | |||||
Restricted stock compensation recognized | 743 | 743 | ||||
Net change in unrealized gain/loss on securities available for sale, net of tax | 80 | 80 | ||||
Net income | 3,651 | 3,651 | ||||
Cash dividends paid | (1,747) | (1,747) | ||||
Balance at Mar. 31, 2016 | $ 152,476 | $ 125 | $ 82,056 | $ (2) | $ (49) | $ 70,346 |
Balance, Shares at Mar. 31, 2016 | 12,492,310 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 3,651 | $ 4,055 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 448 | 393 |
Stock-based compensation | 743 | 909 |
Excess tax benefits from stock-based payment arrangements | 80 | (138) |
Provision for credit losses | 3,075 | 3,340 |
Net deferred income taxes | (610) | (378) |
Amortization of deferred initial direct costs and fees | 2,030 | 1,831 |
Deferred initial direct costs and fees | (2,567) | (1,792) |
Loss on equipment disposed | 254 | 137 |
Effect of changes in other operating items: | ||
Other assets | (2,824) | (5,444) |
Other liabilities | 1,587 | 2,487 |
Net cash provided by operating activities | 5,867 | 5,400 |
Cash flows from investing activities: | ||
Net change in time deposits with banks | (1,245) | (3,135) |
Purchases of equipment for direct financing lease contracts and funds used to originate loans | (108,393) | (81,667) |
Principal collections on leases and loans | 85,253 | 78,848 |
Security deposits collected, net of refunds | (148) | (42) |
Proceeds from the sale of equipment | 802 | 833 |
Acquisitions of property and equipment | (174) | (964) |
Change in restricted interest-earning deposits with banks | 104 | (834) |
Purchases of securities available for sale | 253 | 139 |
Net cash provided by (used in) investing activities | (23,548) | (6,822) |
Cash flows from financing activities: | ||
Net change in deposits | 24,781 | 7,716 |
Issuances of common stock | 0 | 0 |
Repurchases of common stock | (309) | (2,676) |
Dividends paid | (1,747) | (1,616) |
Exercise of stock options | 0 | 333 |
Excess tax benefit (deficit) from stock-based payment arrangements | (80) | 138 |
Net cash provided by (used in) financing activities | 22,645 | 3,895 |
Net increase (decrease) in total cash and cash equivalents | 4,964 | 2,473 |
Total cash and cash equivalents, beginning of period | 60,129 | 110,656 |
Total cash and cash equivalents, end of period | 65,093 | 113,129 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest on deposits and borrowings | 1,530 | 1,133 |
Net cash paid (received) for income taxes | $ 345 | $ 123 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2016 | |
The Company [Abstract] | |
Organization | NOTE 1 – The Company Description 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 subsidi ary, 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” segm ent. The Company finances over 100 categories of commercial equipment important to its end user customers, including copiers, security systems, computers, telecommunications equipment and certain commercial and industrial equipment. In May 2000, we establi shed 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 Marlin 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”)-insure d d eposit s . References to the “Company,” “Marlin,” “Registrant,” “we,” “us” and “our” herein refer to Marlin Business Services Corp. and its wholly-owned subsidiaries, unless the context otherwise requires. |
Summary of Critical Accounting
Summary of Critical Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Critical Accounting Policies [Abstract] | |
Summary of Critical Accounting Policies | NOTE 2 – Summary of Critical Accounting Policies Basis of financial statement presentation. The unaudited condensed 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 an d transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) necessary to present fairly the Compa ny’s financial position at March 31, 2016 , the results of operations for the three- month periods ended March 31, 2016 and 2015 , and cash flows for the three -month periods ended March 31, 2016 and 2015 . These unaudited condens ed consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 4 , 2 01 6 . The consolida ted results of operations for the three- month periods ended March 31, 2016 and 2015 and the consolidated statements of cash flows for the three -month periods ended March 31, 2016 and 2015 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2015 Annual Report on Form 10-K. Recent Accounting Pronouncements . In March 2016, the FASB issued Accounting Standards Update 2016-08 , Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts w ith Customers (Topic 606) , which is effective beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In March 2016, the FASB issued Accounting Standards Update 2016-09 , Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The areas for simplification in this Update involve several as pects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. T he guidance is e ffective for annual periods b eginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In April 2016, the FASB issued Accounting Standards Update 2016- 10, Revenue from Contracts with Customers (Topic 606 ): Identifying Performance Obligations and Licensing . The amendments in this Update clarify the following two aspects of Topic 606: identifying perf ormance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 60 6) , which is effective beginning after December 15, 2017, including interim periods within that reporting period. 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 | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, December 31, 2016 2015 (Dollars in thousands) Minimum lease payments receivable $ 778,995 $ 761,694 Estimated residual value of equipment 27,191 27,364 Unearned lease income, net of initial direct costs and fees deferred (104,377) (102,358) Security deposits (2,060) (2,208) Loans, including unamortized deferred fees and costs 11,568 6,353 Allowance for credit losses (9,191) (8,413) $ 702,126 $ 682,432 At March 31, 2016 , there were no minimum lease payments receivable assigned as collateral for the borrowing facility. At March 31, 2016 , there is no amount outstanding under this borrowing facility and the unused borrowing capacity is $ 50 .0 million. In addition, $ 35.6 million in net investment in leases are pledged as collateral for the secured borrowing capacity at the Federal Reserve Discount Window. Initial direct costs net of fees deferred were $ 11.6 million and $ 11.1 million as of March 31, 2016 and December 31, 2015 , respectively. Initial direct costs are netted in unearned income and are amortized to income using the effective interest method. At March 31, 2016 and December 31, 2015 , $22.7 million of the estimated residual value of equipment retained on our Condensed Consolidated Balance Sheets was related to copiers. Minimum lease payments receivable under lease contracts and the amortization of unearned le ase income, including initial direct costs and fees deferred, are as follows as of March 31, 2016 : Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2016 $ 252,247 $ 43,080 2017 248,056 34,679 2018 154,715 17,271 2019 82,521 7,214 2020 36,915 1,961 Thereafter 4,541 172 $ 778,995 $ 104,377 As of March 31, 2016 and December 31, 2015 , the Company maintained total finance receivables which were on a non-accrual basis of $2.4 million and $1.7 million, respectively. As of March 31, 2016 and December 31, 2015 , the Company had total finance receivables in which the terms of the original agreements had been renegotiated in the amount of $0.5 million . (See Note 4 for income recognition on leases and loans and additional asset quality information.) |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2016 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 4 – 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 i n the allowance for credit losses and asset quality statistics. Three Months Ended Year Ended March 31, December 31, 2016 2015 2015 (Dollars in thousands) Allowance for credit losses, beginning of period $ 8,413 $ 8,537 $ 8,537 Charge-offs (2,818) (3,143) (12,453) Recoveries 521 497 2,334 Net charge-offs (2,297) (2,646) (10,119) Provision for credit losses 3,075 3,340 9,995 Allowance for credit losses, end of period (1) $ 9,191 $ 9,231 $ 8,413 Annualized net charge-offs to average total finance receivables (2) 1.35% 1.70% 1.59% Allowance for credit losses to total finance receivables, end of period (2) 1.31% 1.47% 1.24% Average total finance receivables (2) $ 679,252 $ 622,120 $ 636,790 Total finance receivables, end of period (2) $ 699,672 $ 627,167 $ 679,738 Delinquencies greater than 60 days past due $ 4,114 $ 4,057 $ 3,163 Delinquencies greater than 60 days past due (3) 0.52% 0.57% 0.41% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 223.41% 227.53% 265.98% Non-accrual leases and loans, end of period $ 2,352 $ 1,975 $ 1,677 Renegotiated leases and loans, end of period $ 503 $ 774 $ 535 __________________ (1) At March 31, 2016 , December 31, 2015 and March 31, 2015 , the allowance for credit losses allocated to loans was $ 0 . 3 million, $0.2 million and $0.1 million, respectively. (2) Total finance r e ceivables 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 o f 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 120 days or more. Income recognition is d iscontinued 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 March 31, 2016 , December 31, 2015 and March 31, 2015 , there were no f inance receivables past due 90 days or more and still accruing. Net charge-offs for the three-month period ended March 31, 2016 were $2.3 million ( 1.35% of average total finance receivables on an annualized basis), compared to $2.6 million ( 1.60% of average total finance receivables on an annualized basis) for the three-month period ended December 31, 2015 and $2.6 million ( 1.70% of average total finance receivables on an annualized basis) for the three-month period ended March 31, 2015 . |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | NOTE 5 – Other Assets Other assets are comprised of the following: March 31, December 31, 2016 2015 (Dollars in thousands) Accrued fees receivable $ 2,458 $ 2,500 Prepaid expenses 1,873 2,120 Income taxes receivable 1,761 4,427 Other 3,241 3,474 $ 9,333 $ 12,521 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 6 – 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 obli gations under the Community Reinvestment Act of 1977. At March 31, 2016 , MBB had an unfunded commitment of $ 1 .0 million for this activity . Unless renewed prior to termination, MBB’s one-year commitment to the consortium will expire 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 consolidated financial position , r esults of operations or cash flows. As of March 31, 2016 , the Company leases all nine of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Atlanta, Georgia; Philadelphia, Pennsylvania; Salt Lake City, Utah; Portsmouth, New Hampshire; Highlands Ranch, Colorado; Aurora, Colorado; Denver, Colorado; and Plymouth, Michigan . These lease commitments are accounted for as operating leases. The Company has entered into several capital leases to finance corporate property and e quipment. The following is a schedule of future minimum lease payments for capital and operating leases as of March 31, 2016 : Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2016 $ 76 $ 1,189 $ 1,265 2017 77 1,528 1,605 2018 — 1,472 1,472 2019 — 1,435 1,435 2020 — 687 687 Total minimum lease payments $ 153 $ 6,311 $ 6,464 Less: amount representing interest (6) Present value of minimum lease payments $ 147 Rent expense was $ 0.3 million for each of the three -month periods ended March 31, 2016 and March 31, 2015 . |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2016 | |
Deposits [Abstract] | |
Deposits | NOTE 7 – 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 FDIC-insured m oney m arket d eposit a ccounts (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 clients of the partner bank and recorded as a single d eposit account at MBB. As of March 31, 2016 , money market deposit accounts totaled $ 52 .2 million. As of March 31, 2016 , the remaining scheduled matur ities of certificates of deposits are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2016 $ 196,882 2017 185,488 2018 92,762 2019 41,420 2020 35,401 Thereafter 8,544 Total $ 560,497 Certificates of deposits issued by MBB are time deposit s 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 at March 31, 2016 was 1.15% . |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements And Disclosures About Fair Value Of Financial Instruments [Abstract] | |
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | NOTE 8 – 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 le vel 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 valu ation 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 char acterizes 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 s ubstantially 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 March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets Securities available for sale $ 3,396 $ 2,880 $ 3,332 $ 3,067 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 tho se 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 man agement’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 the se 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: March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 65,093 $ 65,093 $ 60,129 $ 60,129 Time deposits with banks 8,613 8,628 7,368 7,356 Restricted interest-earning deposits with banks 112 112 216 216 Loans, net of allowance 11,283 11,141 6,179 6,152 Financial Liabilities Deposits $ 612,721 $ 613,446 $ 587,940 $ 586,898 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 March 31, 2016 and December 31, 2015 , 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 depos its is estimated 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 interest-earning trust accounts 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 floating market rate of interest which results in a fair value approximating the carrying amount at March 31, 2016 and December 31, 2015 . This fair value measurement is classified as Level 1. Securities Available for Sale Securities avai lable for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon various sources of market pricing. Securities are classified within the fair 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 inc lude 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 fai r 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 municipal bonds. Loans The loan balances are comprised of three types of loans. Participating 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 r esidents. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. The fair value of these loans approximates the carrying amount at March 31, 2016 and December 31, 2015 as it is based on recent comparable sales transactions with consideration of current market rates. This fair value measurement is classified as Level 2. The Company also invests in a small business loan product tailored to the small business market. Fair value for these loans are estimated by discounting cash flow s at an imputed market rate for similar loan products with similar characteristics. This fair value measurement is classified as Level 2. The Company invests in loans to our customers in the franchise finance channel. These loans may be secured by equipmen t being acquired, blanket liens on personal property, or specific equipment already owned by the customer. The fair value of loans is estimated by discounting the future cash flows using the current rate at which similar loans would be made to borrowers with similar credit, collateral, and for the same remaining maturities. 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 flows 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. |
Earnings Per Common Share ("EPS
Earnings Per Common Share ("EPS") | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Earnings Per Common Share ("EPS") | NOTE 9 – 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, 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 E PS, all 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 a nd shares used in computing basic and diluted EPS: Three Months Ended March 31, 2016 2015 (Dollars in thousands, except per-share data) Basic EPS Net income $ 3,651 $ 4,055 Less: net income allocated to participating securities (103) (123) Net income allocated to common stock $ 3,548 $ 3,932 Weighted average common shares outstanding 12,472,536 12,857,294 Less: Unvested restricted stock awards considered participating securities (351,602) (370,053) Adjusted weighted average common shares used in computing basic EPS 12,120,934 12,487,241 Basic EPS $ 0.29 $ 0.31 Diluted EPS Net income allocated to common stock $ 3,548 $ 3,932 Adjusted weighted average common shares used in computing basic EPS 12,120,934 12,487,241 Add: Effect of dilutive stock options 5,878 36,017 Adjusted weighted average common shares used in computing diluted EPS 12,126,812 12,523,258 Diluted EPS $ 0.29 $ 0.31 For the three-month periods ended March 31, 2016 and March 31, 2015 , options to purchase 2,334 shares and 15,698 shares of common stock, respectively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 10 – Stockholders’ Equity Stockholders’ Equity 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 s tatus of authorized 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 three months ended March 31, 2016 , the Company did not repurchase any of its common stock under the 2014 Repurchase Plan in the open market. T he Company purchased 112,129 shares of its common stock in the open market under the 2014 Repurchase Plan at an average cost of $ 18.45 per share during the three-month period ended March 31, 2015 . At March 31, 2016 , the Company had $ 3.2 million remaining in the 2014 Repurchase Plan . In addition to the repurchases described above, participants in the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan”) may ha ve shares withheld to cover income taxes. During the three-month period s ended March 31, 2016 and March 31, 2015 , t here were 21,448 shares and 33,186 shares repurchased to cover income tax withholding in connection with shares granted unde r the 2014 Plan at an average cost of $ 14.44 per share and $ 18.27 per share , respectively. Regulatory Capital Requirements Through its issuance of FDIC-insured deposit s , 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 Comp any 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 banki ng 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. U nder 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 p referred 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 establis h 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% . The new standards raised the required minimum Tier 1 risk-based ratio from 4% to 6%. The t otal 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-capitaliz ed). 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 capi tal 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 i n conjunction with the opening of MBB (the “FDIC Agreement”) . MBB’s Tier 1 Capital balance at March 31, 2016 was $128.1 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At March 31, 2016 , 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 March 31, 2016 . 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. 19.39% $ 152,509 4% $ 31,467 5% $ 39,333 Marlin Business Bank 17.03% $ 128,145 5% $ 37,629 5% $ 37,629 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 20.51% $ 152,509 4.5% $ 33,469 6.5% $ 48,344 Marlin Business Bank 17.73% $ 128,145 6.5% $ 46,970 6.5% $ 46,970 Tier 1 Risk-based Capital Marlin Business Services Corp. 20.51% $ 152,509 6% $ 44,625 8% $ 59,500 Marlin Business Bank 17.73% $ 128,145 8% $ 57,810 8% $ 57,810 Total Risk-based Capital Marlin Business Services Corp. 21.74% $ 161,700 8% $ 59,500 10% $ 74,375 Marlin Business Bank 18.98% $ 137,179 15% $ 108,393 10% (1) $ 72,262 __________________ (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. Five capital categories have been established under federal banking regulations : well-capitalized, adequately cap italized, undercapitalized, significantly undercapitalized and critically undercapitalized. Well-capitalized institutions significantly exceed the required minimum level for each relevant capital measure. Adequately capitalized institutions include depos itory 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 a nd 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 g enerally 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-capitalize d 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 depo sits. 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 in to 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 18.98% at March 31, 2016 exceeded the threshold for “well capitalized” status under the applicable laws a nd 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 a ssessment 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 e arnings, 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 11 – Stock-Based Compensation Under the terms of the 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 programs 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 not more than 1,000,000 of such shares available for issuance as restricted stock grants. There were 815,259 shares available for future grants under the 2014 Plan as of March 31, 2016 , of which 615,259 shares were available to be issued as restri cted stock grants. Total stock-based compensation expense was $ 0.7 million and $ 0.9 million for the three-month periods ended March 31, 2016 and March 31, 2015 , respectively. An e xcess tax deficit from stock-based payment arrangements increased cash provided by operating activities and decreased cash provided by financing activities by $0.1 million for the three-month period ended March 31, 2016 . Excess tax benefits from stock-based p ayment arrangements decreased cash provided by operating activities and increased cash provided by financing activities by $0.1 million for the three-month period ended March 31, 2015 . Stock Options Option awards are 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 the Company and provide for accelerated vesting if there is a change in control as defined in the Equity Compensation Plans . Employee stock options generally vest over four years. The Company also issues stock options to non-employee independent directors. These options generally vest in one year. There were no stock options granted during either of the three-month period s ended March 31, 2016 and March 31, 2015 . A summary of option activity for the three - month period ended March 31, 2016 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2015 50,686 $ 12.09 Granted — — Exercised — — Forfeited (1,666) 12.41 Expired — — Outstanding, March 31, 2016 49,020 12.08 During each of t he three-month period s ended March 31, 2016 and March 31, 2015 , the Company did not recognize compensation expense related to options . During the three-month period ended March 31, 2016 , there were no stock options exercised . There were 34,164 stock options exercised with a total pretax intrinsic value of $ 0.3 million during the three-month period ended March 31, 2015 . The following table summarizes information about the stock options outstanding and exercisable as of March 31, 2016 . 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 0.5 $ 7.35 $ 20 2,878 0.5 $ 7.35 $ 20 $ 12.08 - 12.41 46,142 1.1 12.37 90 43,918 1.1 12.37 85 49,020 1.1 12.08 $ 110 46,796 1.1 12.06 $ 105 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $14.31 as of March 31, 2016 , which would have been received by the option holders had all option holders exercised their options as of that date. As of March 31, 2016 , 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 assumpti ons. As of March 31, 2016 , $ 0.1 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 s ubject to vesting prior to their expiration dates. The weighted average remaining term of these options is approximately 1.1 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 may provide for accelerated vesting if there is a change in control as defined in the Equity Compensa tion Plan s . The vesting of certain restricted shares may be accelerated to a minimum of three years based on achievement of various in dividual performance measures. Acceleration of expense for awards based on individual performance factors occurs when t he achievement of the performance criteria is determined. 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 three - month period ended March 31, 2016 , 70,163 shares may be subject to accelerated vesting based on individual performance factors ; no shares have vesting contingent upon performance factors. Vesting was accelerated in 2015 and 20 16 on certain awards based on the achievement of certain performance criteria determined annually, as described below. The Company also issues restricted stock to non-employee independent directors. These shares generally vest in seven years from the gra nt 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 three months ended March 31, 2016 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2015 313,236 $ 16.65 Granted 120,291 14.74 Vested (56,904) 18.11 Forfeited (17,432) 18.08 Outstanding at March 31, 2016 359,191 15.71 During the three-month periods ended March 31, 2016 and March 31, 2015 , the Company granted restricted stock awards with a grant date fair value totaling $ 1.8 million and $ 2.1 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 $ 0.7 million and $ 0.9 million of comp ensation expense related to restricted stock for the three-month periods ended March 31, 2016 and March 31, 2015 , respectively. Of the $ 0.7 million total compensation expense related to restricted stock for the three-month period ended March 31, 2016 , approximately $ 0.4 million related to accelerated vesting based on achievement of certain performance criteria determined annually. Of the $ 0.9 million total compensation expense related to restricted stock for th e three-month period ended March 31, 2015 , approximately $ 0.6 million related to accelerated vesting, which was also based on the achievement of certain performance criteria determined annually. As of March 31, 2016 , there was $ 4.3 million of unrecognized compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 4.2 years. In the event individual performance targets are achieved, $ 1.6 million of the unrecognized compensation cost would accelerate to be recognized over a weighted average period of 1.8 years. In addition, certain of the awards granted may result in the issuance of 55,976 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 value of shares that vested during the thr ee-month periods ended March 31, 2016 and March 31, 2015 was $ 0.8 million and $ 1.7 million, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 12 – Subsequent Events The Company declared a dividend of $0.140 per share on April 28, 2016 . The quarterly dividend, which is expected to result in a dividend payment of approximately $1.7 million, is scheduled to be paid on May 19, 2016 to shareholders of record on the close of business on May 9, 2016 . It represents the Company’s nineteenth consecutive quarterly cash dividend. The payment of future dividends will be subj ect to approval by the Company’s Board of Directors. |
Summary of Critical Accountin20
Summary of Critical Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Critical Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of financial statement presentation. The unaudited condensed 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 an d transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) necessary to present fairly the Compa ny’s financial position at March 31, 2016 , the results of operations for the three- month periods ended March 31, 2016 and 2015 , and cash flows for the three -month periods ended March 31, 2016 and 2015 . These unaudited condens ed consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 4 , 2 01 6 . The consolida ted results of operations for the three- month periods ended March 31, 2016 and 2015 and the consolidated statements of cash flows for the three -month periods ended March 31, 2016 and 2015 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2015 Annual Report on Form 10-K. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements . In March 2016, the FASB issued Accounting Standards Update 2016-08 , Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts w ith Customers (Topic 606) , which is effective beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In March 2016, the FASB issued Accounting Standards Update 2016-09 , Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The areas for simplification in this Update involve several as pects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. T he guidance is e ffective for annual periods b eginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. In April 2016, the FASB issued Accounting Standards Update 2016- 10, Revenue from Contracts with Customers (Topic 606 ): Identifying Performance Obligations and Licensing . The amendments in this Update clarify the following two aspects of Topic 606: identifying perf ormance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 60 6) , which is effective beginning after December 15, 2017, including interim periods within that reporting period. 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 21
Net Investment in Leases and Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Net Investment in Leases and Loans [Abstract] | |
Components of Net Investment in Leases and Loans [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Minimum lease payments receivable $ 778,995 $ 761,694 Estimated residual value of equipment 27,191 27,364 Unearned lease income, net of initial direct costs and fees deferred (104,377) (102,358) Security deposits (2,060) (2,208) Loans, including unamortized deferred fees and costs 11,568 6,353 Allowance for credit losses (9,191) (8,413) $ 702,126 $ 682,432 |
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 $ 252,247 $ 43,080 2017 248,056 34,679 2018 154,715 17,271 2019 82,521 7,214 2020 36,915 1,961 Thereafter 4,541 172 $ 778,995 $ 104,377 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Allowance For Credit Losses [Abstract] | |
Allowance for Credit Losses on Finance Receivables [Table Text Block] | Three Months Ended Year Ended March 31, December 31, 2016 2015 2015 (Dollars in thousands) Allowance for credit losses, beginning of period $ 8,413 $ 8,537 $ 8,537 Charge-offs (2,818) (3,143) (12,453) Recoveries 521 497 2,334 Net charge-offs (2,297) (2,646) (10,119) Provision for credit losses 3,075 3,340 9,995 Allowance for credit losses, end of period (1) $ 9,191 $ 9,231 $ 8,413 Annualized net charge-offs to average total finance receivables (2) 1.35% 1.70% 1.59% Allowance for credit losses to total finance receivables, end of period (2) 1.31% 1.47% 1.24% Average total finance receivables (2) $ 679,252 $ 622,120 $ 636,790 Total finance receivables, end of period (2) $ 699,672 $ 627,167 $ 679,738 Delinquencies greater than 60 days past due $ 4,114 $ 4,057 $ 3,163 Delinquencies greater than 60 days past due (3) 0.52% 0.57% 0.41% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 223.41% 227.53% 265.98% Non-accrual leases and loans, end of period $ 2,352 $ 1,975 $ 1,677 Renegotiated leases and loans, end of period $ 503 $ 774 $ 535 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | March 31, December 31, 2016 2015 (Dollars in thousands) Accrued fees receivable $ 2,458 $ 2,500 Prepaid expenses 1,873 2,120 Income taxes receivable 1,761 4,427 Other 3,241 3,474 $ 9,333 $ 12,521 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Capital And Operating Leases Future Minimum Payments Due Table [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 $ 76 $ 1,189 $ 1,265 2017 77 1,528 1,605 2018 — 1,472 1,472 2019 — 1,435 1,435 2020 — 687 687 Total minimum lease payments $ 153 $ 6,311 $ 6,464 Less: amount representing interest (6) Present value of minimum lease payments $ 147 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Contractual Maturities of Time Deposits [Abstract] | |
Contractual Maturities Of Time Deposits [Table Text Block] | Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2016 $ 196,882 2017 185,488 2018 92,762 2019 41,420 2020 35,401 Thereafter 8,544 Total $ 560,497 |
Fair Value Measurements and D26
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements And Disclosures About Fair Value Of Financial Instruments [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis [Table Text Block] | March 31, 2016 December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets Securities available for sale $ 3,396 $ 2,880 $ 3,332 $ 3,067 |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments [Table Text Block] | March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 65,093 $ 65,093 $ 60,129 $ 60,129 Time deposits with banks 8,613 8,628 7,368 7,356 Restricted interest-earning deposits with banks 112 112 216 216 Loans, net of allowance 11,283 11,141 6,179 6,152 Financial Liabilities Deposits $ 612,721 $ 613,446 $ 587,940 $ 586,898 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2016 2015 (Dollars in thousands, except per-share data) Basic EPS Net income $ 3,651 $ 4,055 Less: net income allocated to participating securities (103) (123) Net income allocated to common stock $ 3,548 $ 3,932 Weighted average common shares outstanding 12,472,536 12,857,294 Less: Unvested restricted stock awards considered participating securities (351,602) (370,053) Adjusted weighted average common shares used in computing basic EPS 12,120,934 12,487,241 Basic EPS $ 0.29 $ 0.31 Diluted EPS Net income allocated to common stock $ 3,548 $ 3,932 Adjusted weighted average common shares used in computing basic EPS 12,120,934 12,487,241 Add: Effect of dilutive stock options 5,878 36,017 Adjusted weighted average common shares used in computing diluted EPS 12,126,812 12,523,258 Diluted EPS $ 0.29 $ 0.31 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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. 19.39% $ 152,509 4% $ 31,467 5% $ 39,333 Marlin Business Bank 17.03% $ 128,145 5% $ 37,629 5% $ 37,629 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 20.51% $ 152,509 4.5% $ 33,469 6.5% $ 48,344 Marlin Business Bank 17.73% $ 128,145 6.5% $ 46,970 6.5% $ 46,970 Tier 1 Risk-based Capital Marlin Business Services Corp. 20.51% $ 152,509 6% $ 44,625 8% $ 59,500 Marlin Business Bank 17.73% $ 128,145 8% $ 57,810 8% $ 57,810 Total Risk-based Capital Marlin Business Services Corp. 21.74% $ 161,700 8% $ 59,500 10% $ 74,375 Marlin Business Bank 18.98% $ 137,179 15% $ 108,393 10% (1) $ 72,262 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 50,686 $ 12.09 Granted — — Exercised — — Forfeited (1,666) 12.41 Expired — — Outstanding, March 31, 2016 49,020 12.08 |
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 0.5 $ 7.35 $ 20 2,878 0.5 $ 7.35 $ 20 $ 12.08 - 12.41 46,142 1.1 12.37 90 43,918 1.1 12.37 85 49,020 1.1 12.08 $ 110 46,796 1.1 12.06 $ 105 |
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, 2015 313,236 $ 16.65 Granted 120,291 14.74 Vested (56,904) 18.11 Forfeited (17,432) 18.08 Outstanding at March 31, 2016 359,191 15.71 |
The Company (Narrative) (Detail
The Company (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016Number | |
More than [Member] | |
Entity Information [Line Items] | |
Categories of commercial equipment | 100 |
Assurance One Ltd [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 |
Net Investment in Leases and 31
Net Investment in Leases and Loans (Narratives) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Net Investment in Leases and Loans [Abstract] | |||
Net Investment in Leases, Initial Direct Costs | $ 11,600,000 | $ 11,100,000 | |
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | 27,191,000 | 27,364,000 | |
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | ||
Non-accrual leases and loans, end of period | 2,352,000 | 1,677,000 | $ 1,975,000 |
Renegotiated leases and loans, end of period | 503,000 | 535,000 | $ 774,000 |
Debt Instrument, Unused Borrowing Capacity, Amount | 50,000,000 | ||
Debt Instrument, Debt Default, Amount | 0 | ||
Leases Pledged as Collateral [Member] | |||
Product Information [Line Items] | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 35,600,000 | ||
Copier Product [Member] | |||
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | $ 22,700,000 | $ 22,700,000 |
Net Investment in Leases and 32
Net Investment in Leases and Loans (Net Investment Components) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | [1] | Dec. 31, 2014 | ||
Net Investment in Leases and Loans [Abstract] | |||||||
Minimum lease payments receivable | $ 778,995 | $ 761,694 | |||||
Estimated Residual Value of Equipment | 27,191 | 27,364 | |||||
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | (104,377) | (102,358) | |||||
Security Deposits | (2,060) | (2,208) | |||||
Loans, including unamortized deferred fees and costs | 11,568 | 6,353 | |||||
Allowance for Credit Losses | (9,191) | [1] | (8,413) | [1] | $ (9,231) | $ (8,537) | |
Net investment in leases and loans | $ 702,126 | $ 682,432 | |||||
[1] | (1) At March 31, 2016 , December 31, 2015 and March 31, 2015 , the allowance for credit losses allocated to loans was $ 0 . 3 million, $0.2 million and $0.1 million, respectively. |
Net Investment in Leases and 33
Net Investment in Leases and Loans (Future Minimum Lease Payments Receivable Schedule) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
2,016 | $ 252,247 | |
2,017 | 248,056 | |
2,018 | 154,715 | |
2,019 | 82,521 | |
2,020 | 36,915 | |
Thereafter | 4,541 | |
Minimum Lease Payments Receivable | 778,995 | $ 761,694 |
Future Scheduled Income Amortization [Abstract] | ||
2,016 | 43,080 | |
2,017 | 34,679 | |
2,018 | 17,271 | |
2,019 | 7,214 | |
2,020 | 1,961 | |
Thereafter | 172 | |
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | $ 104,377 | $ 102,358 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Allowance for Credit Losses [Line Items] | |||||||||
Loans and Leases Receivable, Allowance | $ 9,191 | [1] | $ 8,413 | [1] | $ 9,231 | [1] | $ 8,413 | [1] | $ 8,537 |
Net charge-offs | $ (2,297) | $ (2,600) | $ (2,646) | $ (10,119) | |||||
Annualized net charge-offs to average total finance receivables | 1.35% | [2] | 1.60% | 1.70% | [2] | 1.59% | [2] | ||
Finance Receivables 90 Days or More Past Due and Still Accruing | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | ||||||||
Threshold Period Past Due For Recognition Of Interest Income | 90 days | ||||||||
Commercial Loan [Member] | |||||||||
Allowance for Credit Losses [Line Items] | |||||||||
Loans and Leases Receivable, Allowance | $ 300 | $ 200 | $ 100 | $ 200 | |||||
[1] | (1) At March 31, 2016 , December 31, 2015 and March 31, 2015 , the allowance for credit losses allocated to loans was $ 0 . 3 million, $0.2 million and $0.1 million, respectively. | ||||||||
[2] | (2) Total finance r e ceivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of ( i ) the allowance for credit losses and ( ii ) initial direct costs and fees deferred are excluded. |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |||||
Allowance for Credit Losses [Roll Forward] | ||||||||
Allowance for credit losses, beginning of period | $ 8,413 | [1] | $ 8,537 | $ 8,537 | ||||
Charge-offs | (2,818) | (3,143) | (12,453) | |||||
Recoveries | 521 | 497 | 2,334 | |||||
Net charge-offs | (2,297) | $ (2,600) | (2,646) | (10,119) | ||||
Provision for credit losses | 3,075 | 3,340 | 9,995 | |||||
Allowance for credit losses, end of period | [1] | $ 9,191 | $ 8,413 | $ 9,231 | $ 8,413 | |||
Annualized net charge-offs to average total finance receivables | 1.35% | [2] | 1.60% | 1.70% | [2] | 1.59% | [2] | |
Allowance for credit losses to total finance receivables, end of period | [2] | 1.31% | 1.24% | 1.47% | 1.24% | |||
Average total finance receivables | [2] | $ 679,252 | $ 622,120 | $ 636,790 | ||||
Total finance receivables, end of period | [2] | 699,672 | $ 679,738 | 627,167 | 679,738 | |||
Delinquencies greater than 60 days past due | $ 4,114 | $ 3,163 | $ 4,057 | $ 3,163 | ||||
Delinquencies greater than 60 days past due as a percentage of total finance receivables | [3] | 0.52% | 0.41% | 0.57% | 0.41% | |||
Allowance for credit losses to delinquent accounts greater than 60 days past due | [3] | 223.41% | 265.98% | 227.53% | 265.98% | |||
Non-accrual leases and loans, end of period | $ 2,352 | $ 1,677 | $ 1,975 | $ 1,677 | ||||
Renegotiated leases and loans, end of period | $ 503 | $ 535 | $ 774 | $ 535 | ||||
[1] | (1) At March 31, 2016 , December 31, 2015 and March 31, 2015 , the allowance for credit losses allocated to loans was $ 0 . 3 million, $0.2 million and $0.1 million, respectively. | |||||||
[2] | (2) Total finance r e ceivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of ( i ) the allowance for credit losses and ( ii ) initial direct costs and fees deferred are excluded. | |||||||
[3] | (3) Calculated as a percent o f total minimum lease payments receivable for leases and as a percent of principal outstanding for loans. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets [Abstract] | ||
Accrued fees receivable | $ 2,458 | $ 2,500 |
Prepaid expenses | 1,873 | 2,120 |
Income taxes receivable | 1,761 | 4,427 |
Other assets, miscellaneous | 3,241 | 3,474 |
Other assets, total | $ 9,333 | $ 12,521 |
Commitments and Contingencies37
Commitments and Contingencies (Narratives) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Number | Mar. 31, 2015USD ($) | |
Entity Location [Line Items] | ||
Number Of Offices | Number | 9 | |
Operating Leases, Rent Expense | $ 0.3 | $ 0.3 |
Membership Expiration Date, Extended | Sep. 30, 2016 | |
Marlin Business Bank [Member] | ||
Entity Location [Line Items] | ||
Loan Participation Ownership Percentage | 1.20% | |
Unfunded Loan Commitments | $ 1 |
Commitments and Contingencies38
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments [Abstract] | |
2016, capital lease payments due | $ 76 |
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 | 153 |
Less: amount representing interest | (6) |
Present value of minimum lease payments, capital leases | 147 |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2016, operating lease payments due | 1,189 |
2017, operating lease payments due | 1,528 |
2018, operating lease payments due | 1,472 |
2019, operating lease payments due | 1,435 |
2020, operating lease payments due | 687 |
Thereafter, operating lease payments due | 0 |
Total minimum lease payments due, operating leases | 6,311 |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
2016, total lease payments due | 1,265 |
2017, total lease payments due | 1,605 |
2018, total lease payments due | 1,472 |
2019, total lease payments due | 1,435 |
2020, total lease payments due | 687 |
Thereafter, total lease payments due | 0 |
Total minimum lease payments due | $ 6,464 |
Deposits (Details)
Deposits (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Contractual Maturities of Time Deposits [Abstract] | ||
2,016 | $ 196,882,000 | |
2,017 | 185,488,000 | |
2,018 | 92,762,000 | |
2,019 | 41,420,000 | |
2,020 | 35,401,000 | |
Thereafter | 8,544,000 | |
Total | 560,497,000 | $ 587,940,000 |
Maximum time deposit liability denomination | 250,000 | |
Cash FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of all deposit liabilities outstanding | 1.15% | |
Marlin Business Bank [Member] | ||
Contractual Maturities of Time Deposits [Abstract] | ||
Money market deposit accounts | $ 52,200,000 |
Fair Value Measurements and D40
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale (amortized cost of $6.4 million and $6.6 million at March 31, 2016 and December 31, 2015, respectively) | $ 6,276 | $ 6,399 |
Fair Value Assets Level 1 To Level 2 Transfers Amount | 0 | 0 |
Fair Value Assets Level 2 To Level 1 Transfers Amount | 0 | 0 |
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 (amortized cost of $6.4 million and $6.6 million at March 31, 2016 and December 31, 2015, respectively) | 3,396 | 3,332 |
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 (amortized cost of $6.4 million and $6.6 million at March 31, 2016 and December 31, 2015, respectively) | $ 2,880 | $ 3,067 |
Fair Value Measurements and D41
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Estimated Fair Values and Carrying Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | $ 65,093 | $ 60,129 | $ 113,129 | $ 110,656 |
Restricted interest-earning deposits with banks | 112 | 216 | ||
Securities available for sale (amortized cost of $6.4 million and $6.6 million at March 31, 2016 and December 31, 2015, respectively) | 6,276 | 6,399 | ||
Time deposits with banks | 8,613 | 7,368 | ||
Loans, including unamortized deferred fees and costs | 11,568 | 6,353 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 612,721 | 587,940 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 65,093 | 60,129 | ||
Restricted interest-earning deposits with banks | 112 | 216 | ||
Time deposits with banks | 8,613 | 7,368 | ||
Loans, net of allowance | 11,283 | 6,179 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 612,721 | 587,940 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 65,093 | 60,129 | ||
Restricted interest-earning deposits with banks | 112 | 216 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Time deposits with banks | 8,628 | 7,356 | ||
Loans, net of allowance | 11,141 | 6,152 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | $ 613,446 | $ 586,898 |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS Basic) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Earnings Per Share, Basic [Abstract] | |||
Net Income | $ 3,651 | $ 4,055 | $ 15,966 |
Less: net income allocated to participating securities | (103) | (123) | |
Net income allocated to common stock | $ 3,548 | $ 3,932 | |
Weighted average common shares outstanding | 12,472,536 | 12,857,294 | |
Less: Unvested restricted stock awards considered participating securities | (351,602) | (370,053) | |
Adjusted weighted average common shares used in computing basic EPS | 12,120,934 | 12,487,241 | |
Basic earnings per share | $ 0.29 | $ 0.31 |
Earnings Per Common Share (EP43
Earnings Per Common Share (EPS Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Diluted [Abstract] | ||
Net income allocated to common stock | $ 3,548 | $ 3,932 |
Adjusted weighted average common shares used in computing basic EPS | 12,120,934 | 12,487,241 |
Add: Effect of dilutive stock options | 5,878 | 36,017 |
Adjusted weighted average common shares used in computing diluted EPS | 12,126,812 | 12,523,258 |
Diluted earnings per share | $ 0.29 | $ 0.31 |
Antidilutive securities excluded from computation of earnings per share amount | 2,334 | 15,698 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Jul. 29, 2014 | |
Dividends Paid [Line Items] | ||||
Cash dividends paid | $ 1,747 | $ 32,249 | ||
Stock Repurchase [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 15,000 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 3,200 | |||
Marlin Business Services Corp. [Member] | ||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | ||||
Total stockholders equity (regulatory) | $ 152,509 | |||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |||
Tier One Risk Based Capital to Risk Weighted Assets | 20.51% | |||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | |||
Total Risk Based Capital to Risk Weighted Assets | 21.74% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | |||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||
New Capital Conservation Buffer | 2.50% | |||
Marlin Business Bank [Member] | ||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | ||||
Total stockholders equity (regulatory) | $ 128,145 | |||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | |||
Tier One Risk Based Capital to Risk Weighted Assets | 17.73% | |||
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% | |||
Total Risk Based Capital to Risk Weighted Assets | 18.98% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | |||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | |||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||
New Capital Conservation Buffer | 2.50% | |||
Instrument Stock Repurchase Plan [Member] | ||||
Stock Repurchase [Line Items] | ||||
Stock Repurchased During Period, Shares | 112,129 | |||
Stock Repurchased During Period, Average Cost Per Share | $ 18.45 | |||
Instrument Equity Compensation Plan [Member] | ||||
Stock Repurchase [Line Items] | ||||
Stock Repurchased During Period, Shares | 21,448 | 33,186 | ||
Stock Repurchased During Period, Average Cost Per Share | $ 14.44 | $ 18.27 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Ratios) (Details) | Mar. 31, 2016USD ($) | |
Marlin Business Services Corp. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 152,509,000 | |
Tier One Leverage Capital Required for Capital Adequacy | 31,467,000 | |
Tier One Leverage Capital Required to be Well Capitalized | 39,333,000 | |
Common Equity Tier One Risk Based Capital | 152,509,000 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 33,468,885 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 48,343,945 | |
Tier One Risk Based Capital | 152,509,000 | |
Tier One Risk Based Capital Required for Capital Adequacy | 44,625,000 | |
Tier One Risk Based Capital Required to be Well Capitalized | 59,500,000 | |
Total Risk Based Capital | 161,700,000 | |
Total Risk Based Capital Required for Capital Adequacy | 59,500,000 | |
Total Risk Based Capital Required to be Well Capitalized | $ 74,375,000 | |
Tier One Leverage Capital to Average Assets | 19.39% | |
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 | 20.51% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 20.51% | |
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 | 21.74% | |
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% | |
Marlin Business Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 128,145,000 | |
Tier One Leverage Capital Required for Capital Adequacy | 37,629,000 | |
Tier One Leverage Capital Required to be Well Capitalized | 37,629,000 | |
Common Equity Tier One Risk Based Capital | 128,145,000 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 46,970,000 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 46,970,000 | |
Tier One Risk Based Capital | 128,145,000 | |
Tier One Risk Based Capital Required for Capital Adequacy | 57,810,000 | |
Tier One Risk Based Capital Required to be Well Capitalized | 57,810,000 | |
Total Risk Based Capital | 137,179,000 | |
Total Risk Based Capital Required for Capital Adequacy | 108,393,000 | |
Total Risk Based Capital Required to be Well Capitalized | $ 72,262,000 | |
Tier One Leverage Capital to Average Assets | 17.03% | |
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 | 17.73% | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital to Risk Weighted Assets | 17.73% | |
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 | 18.98% | |
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 ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
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 | 815,259 | ||
Number of Shares, Stock Options Granted | 0 | ||
Stock-based Compensation Expense | $ 700,000 | $ 900,000 | |
Stock Options Exercised, Number of Shares | 0 | ||
Excess tax benefits from stock-based payment arrangements | $ (80,000) | $ 138,000 | $ 333,000 |
Common Stock Closing Price Per Share | $ 14.31 | ||
Stock Options [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Number of Shares, Stock Options Granted | 0 | 0 | |
Stock-based Compensation Expense | $ 0 | $ 0 | |
Stock Options Exercised, Number of Shares | 34,164 | ||
Stock Options Exercised, Total Intrinsic Value | 0 | $ 300,000 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Incremental Cost at Maximum Performance | $ 0 | ||
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 | $ 100,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Pre-expiration Vesting, Period for Recognition, in Years | 1 year 1 month | ||
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] | |||
Stock-based Awards, Vesting Period in Years | 7 years | ||
Stock Options [Member] | Maximum [Member] | |||
Stock-based Compensation Arrangements [Line Items] | |||
Stock-based Awards, Vesting Period 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 | 615,259 | ||
Stock-based Compensation Expense | $ 700,000 | 900,000 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 4,300,000 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 4 years 2 months | ||
Stock-based Awards Other Than Options, Subject to Performance Acceleration, Grants in Period | 70,163 | ||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | ||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 1,800,000 | 2,100,000 | |
Stock-based Compensation Expense Due to Performance Acceleration | 400,000 | 554,000 | |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | $ 1,600,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Pre-expiration Vesting, Period for Recognition, in Years | 1 year 10 months | ||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 55,976 | ||
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 | $ 800,000 | $ 1,700,000 | |
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 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity) (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | |
Number of Shares Outstanding, Beginning of Period | shares | 50,686 |
Number of Shares, Stock Options Granted | shares | 0 |
Number of Shares, Stock Options Exercised | shares | 0 |
Number of Shares, Forfeited | shares | (1,666) |
Number of Shares, Expired | shares | 0 |
Number of Shares Outstanding, End of Period | shares | 49,020 |
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ / shares | $ 12.09 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 0 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 0 |
Weighted Average Exercise Price Per Share, Forfeitures | $ / shares | 12.41 |
Weighted Average Exercise Price Per Share, Expired | $ / shares | 0 |
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ / shares | $ 12.08 |
Stock-Based Compensation (Sum48
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 49,020 | 50,686 |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 1 month | |
Options Outstanding, Weighted Average Exercise Price | $ 12.08 | $ 12.09 |
Options Outstanding, Aggregate Intrinsic Value | $ 110 | |
Options Exercisable, Number of Shares | 46,796 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 1 year 1 month | |
Options Exercisable, Weighted Average Exercise Price | $ 12.06 | |
Options Exercisable, Aggregate Intrinsic Value | $ 105 | |
$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) | 6 months | |
Options Outstanding, Weighted Average Exercise Price | $ 7.35 | |
Options Outstanding, Aggregate Intrinsic Value | $ 20 | |
Options Exercisable, Number of Shares | 2,878 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 6 months | |
Options Exercisable, Weighted Average Exercise Price | $ 7.35 | |
Options Exercisable, Aggregate Intrinsic Value | $ 20 | |
$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 | 46,142 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 1 month | |
Options Outstanding, Weighted Average Exercise Price | $ 12.37 | |
Options Outstanding, Aggregate Intrinsic Value | $ 90 | |
Options Exercisable, Number of Shares | 43,918 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 1 year 1 month | |
Options Exercisable, Weighted Average Exercise Price | $ 12.37 | |
Options Exercisable, Aggregate Intrinsic Value | $ 85 |
Stock-Based Compensation (Sum49
Stock-Based Compensation (Summary of Non-Vested Restricted Stock Activity) (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |
Shares Outstanding, Beginning of Period | shares | 313,236 |
Shares, Granted | shares | 120,291 |
Shares, Vested | shares | (56,904) |
Shares, Forfeited | shares | (17,432) |
Shares Outstanding, End of Period | shares | 359,191 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ / shares | $ 16.65 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 14.74 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 18.11 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 18.08 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ / shares | $ 15.71 |
Subsequent Events (Narratives)(
Subsequent Events (Narratives)(Details) $ / shares in Units, $ in Thousands | Apr. 28, 2016USD ($)Number$ / shares | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | |||
Cash dividends declared | $ 1,747 | $ 32,249 | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 50,000 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Cash dividends declared per share | $ / shares | $ 0.14 | ||
Cash dividends declared | $ 1,700 | ||
Cash dividend declared on common stock, date declared | Apr. 28, 2016 | ||
Cash dividend declared on common stock, payable date | May 19, 2016 | ||
Cash dividend declared on common stock, date of record | May 9, 2016 | ||
Number of consecutive quartely cash dividends declared. | Number | 19 |