Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Jun. 30, 2017 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 12,525,198 | |
Trading Symbol | MRLN |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 4,827,000 | $ 4,055,000 | |
Interest-earning deposits with banks | 72,489,000 | 57,702,000 | |
Total cash and cash equivalents | 77,316,000 | 61,757,000 | |
Time deposits | 8,360,000 | 9,605,000 | |
Securities available for sale (amortized cost of $10.2 million and $6.1 million at June 30, 2017 and December 31, 2016, respectively) | 10,040,000 | 5,880,000 | |
Net investment in leases and loans, excluding allowance for credit losses | 875,262,000 | 807,654,000 | |
Allowance for Credit Losses | [1] | (12,559,000) | (10,937,000) |
Net investment in leases and loans | 862,703,000 | 796,717,000 | |
Intangible assets | 1,234,000 | 0 | |
Goodwill | 1,160,000 | 0 | |
Property and equipment, net | 4,411,000 | 3,495,000 | |
Property tax receivable | 10,251,000 | 5,296,000 | |
Other assets | 9,607,000 | 9,408,000 | |
Total assets | 985,082,000 | 892,158,000 | |
LIABILITIES AND STOCKHOLDERS EQUITY | |||
Deposits | 780,838,000 | 697,357,000 | |
Other liabilities: | |||
Sales and property taxes payable | 7,151,000 | 2,586,000 | |
Accounts payable and accrued expenses | 21,000,000 | 14,809,000 | |
Net deferred income tax liability | 11,910,000 | 15,117,000 | |
Total liabilities | 820,899,000 | 729,869,000 | |
Stockholders equity: | |||
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,525,617 and 12,572,114 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 125,000 | 126,000 | |
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 | |
Additional paid-in capital | 82,827,000 | 83,505,000 | |
Stock subscription receivable | (2,000) | (2,000) | |
Accumulated other comprehensive income (loss) | (106,000) | (138,000) | |
Retained earnings | 81,339,000 | 78,798,000 | |
Total stockholders equity | 164,183,000 | 162,289,000 | |
Total liabilities and stockholders equity | $ 985,082,000 | $ 892,158,000 | |
[1] | (1) At June 30, 2017 , December 31, 2016 , and June 30, 2016 the allowance for credit losses allocated to loans was $ 1 . 0 million, $0. 8 million, and $0. 5 million , respectively. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Available-for-sale securities, amortized cost | $ 10,212 | $ 6,104 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 12,525,617 | 12,572,114 |
Common stock shares outstanding | 12,525,617 | 12,572,114 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
Interest income | $ 21,567 | $ 18,187 | $ 42,098 | $ 35,718 |
Fee income | 3,745 | 3,969 | 7,275 | 7,803 |
Interest and fee income | 25,312 | 22,156 | 49,373 | 43,521 |
Interest expense | 2,612 | 1,857 | 4,952 | 3,549 |
Net interest and fee income | 22,700 | 20,299 | 44,421 | 39,972 |
Provision for credit losses | 4,314 | 2,668 | 8,198 | 5,743 |
Net interest and fee income after provision for credit losses | 18,386 | 17,631 | 36,223 | 34,229 |
Other income: | ||||
Insurance premiums written and earned | 1,751 | 1,570 | 3,457 | 3,192 |
Other income | 2,328 | 493 | 4,375 | 948 |
Other income | 4,079 | 2,063 | 7,832 | 4,140 |
Other expense: | ||||
Salaries and benefits | 9,070 | 7,812 | 18,461 | 16,012 |
General and administrative | 6,110 | 4,628 | 16,280 | 9,093 |
Financing related costs | 0 | 34 | 0 | 68 |
Other expense | 15,180 | 12,474 | 34,741 | 25,173 |
Income before income taxes | 7,285 | 7,220 | 9,314 | 13,196 |
Income tax expense | 2,732 | 2,752 | 3,221 | 5,077 |
Net income | $ 4,553 | $ 4,468 | $ 6,093 | $ 8,119 |
Basic earnings per share | $ 0.36 | $ 0.36 | $ 0.49 | $ 0.65 |
Diluted earnings per share | 0.36 | 0.36 | 0.48 | 0.65 |
Cash dividends declared and paid per share | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Comprehensive Income | ||||
Net income | $ 4,553 | $ 4,468 | $ 6,093 | $ 8,119 |
Other Comprehensive Income (Loss) | ||||
Increase (decrease) in fair value of securities available for sale | 4 | 42 | 52 | 172 |
Tax effect | (1) | (15) | (20) | (65) |
Total other comprehensive income (loss) | 3 | 27 | 32 | 107 |
Comprehensive Income | $ 4,556 | $ 4,495 | $ 6,125 | $ 8,226 |
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, 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 | $ 122 | 122 | ||||
Issuance of common stock, shares | 7,981 | |||||
Repurchase of common stock | (317) | (317) | ||||
Repurchase of common stock, shares | (21,938) | |||||
Exercise of stock options | 39 | 39 | ||||
Exercise of stock options, shares | 3,455 | |||||
Excess tax benefits from stock-based payment arrangements | (90) | (90) | ||||
Restricted stock grant, net of forfeitures | $ 1 | (1) | ||||
Restricted stock grant, shares, net of forfeitures | 139,184 | |||||
Stock-based Compensation Expense | 1,062 | 1,062 | ||||
Net change in unrealized gain/loss on securities available for sale, net of tax | 107 | 107 | ||||
Net income | 8,119 | 8,119 | ||||
Cash dividends paid | (3,495) | (3,495) | ||||
Balance at Jun. 30, 2016 | $ 155,685 | $ 125 | 82,518 | (2) | (22) | 73,066 |
Balance, Shares at Jun. 30, 2016 | 12,539,581 | 12,539,581 | ||||
Balance at Dec. 31, 2016 | $ 162,289 | $ 126 | 83,505 | (2) | (138) | 78,798 |
Balance, Shares at Dec. 31, 2016 | 12,572,114 | 12,572,114 | ||||
Issuance of common stock | $ 169 | 169 | ||||
Issuance of common stock, shares | 9,876 | |||||
Repurchase of common stock | (2,884) | $ (1) | (2,883) | |||
Repurchase of common stock, shares | (116,012) | |||||
Exercise of stock options | $ 487 | $ 0 | 487 | |||
Exercise of stock options, shares | 39,416 | 39,416 | ||||
Excess tax benefits from stock-based payment arrangements | $ 0 | 0 | ||||
Restricted stock grant, net of forfeitures | $ 0 | 0 | ||||
Restricted stock grant, shares, net of forfeitures | 20,223 | |||||
Stock-based Compensation Expense | 1,549 | 1,549 | ||||
Net change in unrealized gain/loss on securities available for sale, net of tax | 32 | 32 | ||||
Net income | 6,093 | 6,093 | ||||
Cash dividends paid | (3,552) | (3,552) | ||||
Balance at Jun. 30, 2017 | $ 164,183 | $ 125 | $ 82,827 | $ (2) | $ (106) | $ 81,339 |
Balance, Shares at Jun. 30, 2017 | 12,525,617 | 12,525,617 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 6,093 | $ 8,119 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,395 | 893 |
Stock-based compensation | 1,549 | 1,062 |
Excess tax (benefits) deficit from stock-based payment arrangements | 0 | 90 |
Provision for credit losses | 8,198 | 5,743 |
Net deferred income taxes | (3,227) | (1,974) |
Amortization of deferred initial direct costs and fees | 5,297 | 4,102 |
Loss on equipment disposed | 538 | 387 |
Gain on leases sold | (674) | (72) |
Leases originated for sale | (1,597) | (378) |
Proceeds from sale of leases originated for sale | 1,615 | 378 |
Effect of changes in other operating items: | ||
Other assets | (5,759) | (738) |
Other liabilities | 10,360 | 2,637 |
Net cash provided by operating activities | 23,788 | 20,249 |
Cash flows from investing activities: | ||
Net change in time deposits with banks | 1,245 | (1,740) |
Purchases of equipment for direct financing lease contracts and funds used to originate loans | (308,022) | (235,069) |
Principal collections on leases and loans | 206,996 | 172,817 |
Proceeds from sale of leases originated for investment | 20,119 | 2,401 |
Security deposits collected, net of refunds | (209) | (382) |
Proceeds from the sale of equipment | 1,742 | 1,755 |
Acquisitions of property and equipment | (1,238) | (566) |
Payments to acquire businesses, net of cash acquired | (2,500) | 0 |
Change in restricted interest-earning deposits with banks | 0 | 190 |
Purchases of securities available for sale | (4,108) | 235 |
Net cash provided by (used in) investing activities | (85,975) | (60,359) |
Cash flows from financing activities: | ||
Net change in deposits | 83,481 | 62,489 |
Issuances of common stock | 169 | 122 |
Repurchases of common stock | (2,884) | (317) |
Dividends paid | (3,507) | (3,495) |
Exercise of stock options | 487 | 39 |
Excess tax benefit (deficit) from stock-based payment arrangements | 0 | (90) |
Net cash provided by (used in) financing activities | 77,746 | 58,748 |
Net increase (decrease) in total cash and cash equivalents | 15,559 | 18,638 |
Total cash and cash equivalents, beginning of period | 61,757 | 60,129 |
Total cash and cash equivalents, end of period | 77,316 | 78,767 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest on deposits and borrowings | 4,553 | 3,249 |
Net cash paid (received) for income taxes | 5,387 | 2,632 |
Transfer of leases to held-for-sale | $ 19,463 | $ 2,329 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2017 | |
The Company [Abstract] | |
Organization | NOTE 1 – The Company Description Marlin Business Services Corp. (the “Company”) is a nationwide provider of credit products and services to small businesses. The products and services we provide to our customers include loans and leases for the acquisition of commercial equipment, working capital loans and insurance products. The Company was incorporated in the Commonwealth of Penn sylvania on August 5, 2003. In May 2000, we established AssuranceOne, Ltd., a Bermuda-based, wholly-owned captive insurance subsidiary (“Assurance One”), which enables us to reinsure the property insurance coverage for the equipment financed by Marlin Leas ing Corporation (“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”)-insured deposits. On January 4, 2017, the Company completed the acquisition of Horizon Keystone Financial (“HKF”), an equipment leasing company which primarily identifies and sources lease and loan contracts for investor partners for a fee. With this acquisition, the Company will expand the current leasing business, grow annual originations and increase its presence in certain industry sectors. Additionally, t he Company expects to leverage HKF’s valuable relationships with lenders and equipment vendors. The Company paid $2.5 million in cash for HKF and incurred an immaterial amount of acquisition-related cost for the acquisition. Cash settlement occurred on t he date of acquisition. The Company performed a preliminary allocation of the purchase price with $1.2 million recorded to goodwill and $1.3 million recorded to intangible assets for vendor relationships, customer relationships, and the corporate trade na me. See Note 6 for additional information regarding the identified intangible assets acquired. References to the “Company,” “Marlin,” “Registrant,” “we,” “us” and “our” herein refer to Marlin Business Services Corp. and its wholly-owned subsidiaries, u nless the context otherwise requires. |
Summary of Critical Accounting
Summary of Critical Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 one product offering. All intercompany accounts and transactions have been eliminated in consolidation. During the second quarter of 2017, the Company identified that the sale of certain leases had been reported as cash flows from operating activities that should have been presented as investing activities. In addition , the Company also identified that the deferral of certain expenses associated with the cost of originating leases had been reported as an adjustment to operating cash flow rather than as an investing activity. The Company corrected the previously presente d cash flows for these items and in doing so, the consolidated statement of cash flow for the six-month period ended June 30, 2016 were adjusted to increase net cash flows from operating activities by $3.1 million and to increase net cash flows used in investing activities by the sa me amount. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it is immaterial to previously filed consolidated financial statements. The accompanying unaudited condensed consolida ted financial statements present the Company’s financial position at June 30, 2017 and the results of operations for the three-and six- month periods ended June 30, 2017 and 2016 , and cash flows for the six -month periods ended June 30, 2017 and 2016 . In Management’s opinion, the unaudited Condensed Consolidated Financial Statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of op erations for the interim periods presented. These unaudited condensed 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 Securi ties and Exchange Commission (“SEC”) on March 13 , 201 7 . The consolidated results of operations for the three-and six- month periods ended June 30, 2017 and 2016 and the consolidated statements of cash flows for the six -month periods ended June 30, 2017 and 2016 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. Goodwill and Intangible Assets. The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the Company, including goodwill, exceeds the fair value of the Company. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the Company’s goodwill. Currently, the Company does not have any intangible assets with indefinite useful lives. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated use ful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in ex cess of its undiscounted projected cash flows. Impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. There have been no other significant changes to our Critical Accounting Policies as described i n our 2016 Annual Report on Form 10-K. Recently Issued Accounting Standards. Stock-Based Compensation. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of m o dication s unless all the following are met: 1) The fair value (or calculated value or int rinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the or iginal award is modified; 2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; 3) The classification of the modified award as an equity instrument o r a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification acc ounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply the amendments in this Update prospectively to each period presented. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. Other Income. In February 2017, the FASB issued Accounting Standards Update 2 017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in this Update clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term in substance nonfinancial asset, in part, as a financial asset promised to a counterparty in a contrac t if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. The amendments in this Update also clarify that nonf inancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the amendments in this Update prospectively to each period presented. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The ASU’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this ASU specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This ASU is effective, as a result of ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company expects to adopt the revenue recognition guidance on January 1, 2018 using the modified retrospective approach. A significant amount of the Company’s revenues is derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. With respect to noninterest income, the Company is in its preliminary stages of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is expecting to begin developing processes and procedures during the second half of 2017 to ensure it is fully compliant with these amendments. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to the January 1, 2018 implementation date. Recently Adopted Accounting Standards . In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Emp loyee Share-Based Payment Accounting . This ASU, which was adopted by the Company on January 1, 2017, simplifies the accounting for several aspects of share-based payment transactions, including income tax consequences, classification of awards as either eq uity or liabilities, and classification on the statement of cash flows. The changes which impacted the Company included a requirement that all excess tax benefits and deficiencies that pertain to share-based payment arrangements be recognized within income tax expense line instead of Capital surplus – common stock and other. The Company elected to adopt these changes on a prospective basis. Additionally, the ASU no longer requires a presentation of excess tax benefits and deficiencies related to the vesting and exercise of share-based compensation as both an operating outflow and financing inflow on the statement of cash flows. Adoption of this ASU did not have a material impact on our results of operations or financial position |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments [Text Block] | NOTE 3 – Investments Available for sale investments are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders’ equity unless management determines that an investment is other-than-temporarily impaired (OTTI). The amortized cost and estimated fair value of investments, with gross unrealized gains and losses, were as follows as of June 30, 2017 and December 31, 2016 : June 30, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale Asset-backed securities ("ABS") $ 4,037 $ 2 $ (39) $ 4,000 Municipal securities $ 2,660 $ - $ (28) $ 2,632 Mutual fund $ 3,515 $ - $ (107) $ 3,408 Total securities available for sale $ 10,212 $ 2 $ (174) $ 10,040 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale ABS $ - $ - $ - $ - Municipal securities $ 2,625 $ - $ (97) $ 2,528 Mutual fund $ 3,479 $ - $ (127) $ 3,352 Total securities available for sale $ 6,104 $ - $ (224) $ 5,880 The following tables present the aggregate amount of unrealized losses on securities in the Company’s available-for-sale investment portfolios classified according to the amount of time those securities have been in a continuous loss position as of June 30, 2017 and December 31, 2016 : June 30, 2017 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ (39) $ 2,994 $ - $ - $ (39) $ 2,994 Municipal securities $ (28) $ 2,632 $ - $ - $ (28) $ 2,632 Mutual fund $ - $ - $ (107) $ 3,408 $ (107) $ 3,408 Total debt securities available for sale $ (67) $ 5,626 $ (107) $ 3,408 $ (174) $ 9,034 December 31, 2016 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - $ - $ - Municipal securities $ (97) $ 2,528 $ - $ - $ (97) $ 2,528 Mutual fund $ - $ - $ (127) $ 3,352 $ (127) $ 3,352 Total debt securities available for sale $ (97) $ 2,528 $ (127) $ 3,352 $ (224) $ 5,880 The following table presents the amortized cost, fair value, and weighted average yield of investments in debt securities available for sale at June 30, 2017 , by remaining contractual maturity, with the exception of ABS and municipal securities, which are based on estimated average life. Receipt of cash flows may differ from contractual maturities because borrowers may have the right to call or prepay obligations with our without penalties : 1 Year After 1 Year After 5 Years After 10 or Less through 5 Years through 10 Years Years Total (Dollars in thousands) Amortized Cost: Available for Sale: ABS $ - $ 2,008 $ 1,023 $ 1,003 $ 4,037 Municipal securities $ - $ - $ 2,660 $ - $ 2,660 Total debt securities available for sale $ - $ 2,008 $ 3,683 $ 1,003 $ 6,697 Estimated fair value $ - $ 2,004 $ 3,628 $ 1,000 $ 6,632 Weighted-average yield, GAAP basis - 2.05% 2.27% 1.64% 2.11% OTTI The Company evaluates all investment securities in an unrealized loss position for OTTI on at least a quarterly basis. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. The OTTI assessment is a subj ective process requiring the use of judgments and assumptions. During the securities-level assessments, consideration is given to (1) the intent not to sell and probability that the Company will not be required to sell the security before recovery of its c ost basis to allow for any anticipated recovery in fair value, (2) the financial condition and near-term prospects of the issuer, as well as company news and current events, and (3) the ability to collect the future expected cash flows. Key assumptions uti lized to forecast expected cash flows may include loss severity, expected cumulative loss percentage, cumulative loss percentage to date, weighted average Fair Isaac Corporation ("FICO®") scores and weighted average LTV ratio, rating or scoring, credit rat ings and market spreads, as applicable. According to accounting guidance for debt securities in an unrealized loss position, the Company is required to assess whether it has the intent to sell the debt security or more likely than not will be required to sell the debt security before the anticipated recovery. If either of these conditions is met the Company must recognize an other than temporary impairment with the entire unrealized loss being recorded through earnings. For debt securities in an unrealized loss position not meeting these conditions, the Company assesses whether the impairment of a security is other than temporary. If the impairment is deemed to be other than temporary, the Company must separate the other than temporary impairment into two c omponents: the amount representing the credit loss and the amount related to all other factors, such as changes in interest rates. The credit loss represents the portion of the amortized book value in excess of the net present value of the projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. The credit loss component of the other than temporary impairment is recorded through earnings, whereas the amount relating to factors other than credit losses is recorded in other comprehensive income, net of taxes. The Company did not reco gnize any OTTI in earnings related to its investment securities for the three and six months ended June 30, 2017 and June 30 , 2016. |
Net Investment in Leases and Lo
Net Investment in Leases and Loans | 6 Months Ended |
Jun. 30, 2017 | |
Net Investment in Leases and Loans [Abstract] | |
Net Investment in Leases and Loans | NOTE 4 – Net Investment in Leases and Loans Net investment in leases and loans consists of the following: June 30, December 31, 2017 2016 (Dollars in thousands) Minimum lease payments receivable $ 931,160 $ 867,806 Estimated residual value of equipment 26,659 26,790 Unearned lease income, net of initial direct costs and fees deferred (123,789) (115,158) Security deposits (1,284) (1,493) Commercial loans, net of origination costs and fees deferred Funding Stream 26,228 19,870 Other (1) 16,288 9,839 Total commercial loans 42,516 29,709 Allowance for credit losses (12,559) (10,937) $ 862,703 $ 796,717 ________________________ Other loans are comprised of commercial loans and other loans by MBB to satisfy its obligations under the Community Reinvestment Act of 1977. At June 30, 2017 , $ 29 . 8 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 $1 5 . 9 million and $1 3 . 9 million as of June 30, 2017 and December 31, 2016 , respectively. Initial direct costs are netted in unearned income and are amortized to income using the effective interest method. Origination costs net of fees deferred were $0. 7 million and $0. 4 million as of June 30, 2017 and December 31, 2016 , respectively. Origination costs are ne tted in commercial loans and are amortized to income using the effective interest method. At June 30, 2017 and December 31, 2016 , $22.5 million of the estimated residual value of equipment retained on our Condensed Cons olidated Balance Sheets was related to copiers. Minimum lease payments receivable under lease contracts and the amortization of unearned lease income, including initial direct costs and fees deferred, are as follows as of June 30, 2017 : Minimum Lease Payments Income Receivable Amortization (Dollars in thousands) Period Ending December 31, 2017 $ 197,534 $ 35,373 2018 316,419 47,642 2019 214,321 25,522 2020 126,347 11,307 2021 61,863 3,516 Thereafter 14,676 429 $ 931,160 $ 123,789 As of June 30, 2017 and December 31, 2016 , the Company maintained total finance receivables which were on a non-accrual basis of $2.6 million and $2.2 million, respectively. As of June 30, 2017 and December 31, 2016 , there were $0.1 million of commercial loans on a non-accrual basis . As of June 30, 2017 and December 31, 2016 , the Company had total finance receivables in which the terms of the original agreements had been renegotiated in the a mount of $0.9 million and $0.8 million, respectively. As of June 30, 2017 and December 31, 2016 there were $0. 2 million and $0.1 million of commercial loans that had been renegotiated , respectively . (See Note 5 for income recogn ition on leases and loans and additional asset quality information.) |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2017 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 5 – Allowance for Credit Losses In accordance with the Contingencies and Receivables Topics 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 Six Months Ended Year Ended June 30, June 30, December 31, 2017 2016 2017 2016 2016 (Dollars in thousands) Allowance for credit losses, beginning of period $ 11,687 $ 9,191 $ 10,937 $ 8,413 $ 8,413 Charge-offs (4,069) (3,180) (7,743) (5,999) (12,387) Recoveries 627 751 1,167 1,273 2,497 Net charge-offs (3,442) (2,429) (6,576) (4,726) (9,890) Provision for credit losses 4,314 2,668 8,198 5,743 12,414 Allowance for credit losses, end of period (1) $ 12,559 $ 9,430 $ 12,559 $ 9,430 $ 10,937 Annualized net charge-offs to average total finance receivables (2) 1.65% 1.38% 1.61% 1.36% 1.37% Allowance for credit losses to total finance receivables, end of period (2) 1.46% 1.30% 1.46% 1.30% 1.38% Average total finance receivables (2) $ 835,516 $ 706,039 $ 816,218 $ 692,645 $ 720,060 Total finance receivables, end of period (2) $ 858,671 $ 727,707 $ 858,671 $ 727,707 $ 793,285 Delinquencies greater than 60 days past due $ 5,108 $ 3,548 $ 5,108 $ 3,548 $ 4,137 Delinquencies greater than 60 days past due (3) 0.52% 0.43% 0.52% 0.43% 0.46% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 245.87% 265.78% 245.87% 265.78% 264.37% Non-accrual leases and loans, end of period $ 2,621 $ 1,771 $ 2,621 $ 1,771 $ 2,242 Renegotiated leases and loans, end of period $ 878 $ 450 $ 878 $ 450 $ 769 __________________ (1) At June 30, 2017 , December 31, 2016 , and June 30, 2016 the allowance for credit losses allocated to loans was $ 1 . 0 million, $0. 8 million, and $0. 5 million , respectively. (2) Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. (3) Calculated as a percent 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 June 30, 2017 , December 31, 2016 and June 30, 2016 , there were no f inance receivables past due 90 days or more and still accruing. Net charge-offs for the three-month period ended June 30, 2017 were $3.4 million ( 1.65% of average total finance receivables on an annualized basis), compared to $3.1 m illion ( 1.57% of average total finance receivables on an annualized basis) for the three-month period ended March 31, 2017 and $2.4 million ( 1.38% of average total finance receivables on an annualized basis) for the three-month period e nded June 30, 2016 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6 - Goodwill and Intangible Assets Goodwill As a result of the HKF acquisition on January 4, 2017, the Company recorded goodwill of $1.2 million as of June 30, 2017 , which represents the excess purchase price over the Company’s preliminary fair value of the assets acquired. The recorded goodwill is not amortizable but is deductible for tax purposes. The purchase price allocation is preliminary as the Company is in the process of finalizing the valuation of the assets and is subject to change, but will be finalized by December 31, 2017. Impairment testing will be performed in the fourth quarter of each year and more frequently as warranted in accordance with the applicable accounting guidance. There was no impairment recorded during the six months ended June 30, 2017 . The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows: (Dollars in thousands) Total Company Balance at December 31, 2016 $ — Acquisition of HKF on January 4, 2017 1,160 Balance at June 30, 2017 $ 1,160 Intangible assets The Company had no intangible assets at December 31, 2016 . During the first quarter of 2017, in connection with the acquisition of HKF, the Company acquired certain definite lived intangible assets with a total cost of $1.3 million and a weighted average amortization period of 8.7 years. The Company had no indefi nite lived intangible assets at June 30, 2017 . The following table presents details of the Company’s intangible assets as of June 30, 2017 : (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 years $ 360 $ 60 $ 300 Vendor relationships 11 years 920 42 878 Corporate trade name 7 years 60 4 56 $ 1,340 $ 106 $ 1,234 There was no impairment of these assets in 2017. Amortization related to the Company’s definite lived intangible assets was $0.1 million for the six -month period ended June 30, 2017 . The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) 2018 $ 212 2019 212 2020 92 2021 92 2022 92 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets | NOTE 7 – Other Assets Other assets are comprised of the following: June 30, December 31, 2017 2016 (Dollars in thousands) Accrued fees receivable $ 2,939 $ 2,762 Prepaid expenses 1,875 2,201 Other 4,793 4,445 $ 9,607 $ 9,408 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 8 – Commitments and Contingencies MBB is a member bank in a non-profit, multi-financial institution Community Development Financial Institution (“CDFI”) organization. The CDFI serves as a catalyst for community development by offering flexible financing for affordable, quality housing to low- and moderate-income residents, helping the Bank meet its Community Reinvestment Act (“CRA”) obligations. Currently, MBB receives approximately 1.2 % participation in each funded loan which is collateral for the loan issued to the CDFI under the program. MBB records loans in its financial statements when they have been funded or become payable. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. At June 30, 2017 , MBB had a n unfunded commitment of $ 0.9 million for this activity. Unless renewed prior to termination, MBB’s one-year commitment to the CDFI will expire in September 201 7. The Company is involved in legal proceedings, which include claims, litigation and suits ar ising 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, results of operations or cash flows. Banking institutions are subject to periodic revie ws and examinations from banking regulators. In the first quarter of 2017, one of MBB’s regulatory agencies communicated preliminary findings in connection with the timing of certain aspects of payment application process in effect prior to February 2016 related to the assessment of late fees. The Company believes that the resolution of this matter will require the Company to pay restitution to customers. The Company estimated such restitution at $4.2 million, which was expensed and related liability est ablished in the first quarter of 2017. However, the ultimate resolution of this matter could be materially different from the current estimate, including with respect to the timing, the exact amount of any required restitution or the possible imposition of any fines and penalties. As of June 30, 2017 , the Company leases all eight of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Atlanta, Georgia; Salt Lake City, Utah; Portsmouth, New Hampshire; Hi ghlands Ranch, Colorado; Denver, Colorado; Plymouth, Michigan; and Philadelphia, Pennsylvania. These lease commitments are accounted for as operating leases. The Company has entered into several capital leases to finance corporate property and equipment. The following is a schedule of future minimum lease payments for capital and operating leases as of June 30, 2017 : Future Minimum Lease Payment Obligations Capital Operating Period Ending December 31, Leases Leases Total (Dollars in thousands) 2017 $ 56 $ 804 $ 860 2018 112 1,484 1,596 2019 112 1,447 1,559 2020 112 686 798 2021 56 — 56 Total minimum lease payments $ 448 $ 4,421 $ 4,869 Less: amount representing interest (19) Present value of minimum lease payments $ 429 Rent expense was $0.6 million and $0.5 million for of the six-month period ended June 30, 2017 and June 30, 2016 , respectively . |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2017 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – Deposits MBB serves as the Company’s primary funding source. MBB issues fixed-rate FDIC-insured certificates of deposit raised nationally through various brokered deposit relationships and fixed-rate FDIC-insured deposits received from direct sources. MBB offers FDIC-insured money market deposit accounts (the “MMDA Product”) through participation in a partner bank’s insured savings account product. This brokered deposit product has a variable rate, no maturity dat e and is offered to the clients of the partner bank and recorded as a single deposit account at MBB. As of June 30, 2017 , money market deposit accounts totaled $ 42 . 5 million. As of June 30, 2017 , the remaining scheduled maturities of certificates of depos its are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2017 $ 156,695 2018 250,698 2019 167,815 2020 89,303 2021 54,818 Thereafter 18,988 Total $ 738,317 Certificates of deposits issued by MBB are time deposits and are generally issued in denominations of $250,000 or less. The MMDA Product is also issued to customers in amounts less than $250,000. The FDIC insures deposits up to $250,000 per depositor. The weighted average all-in interest rate of deposits at June 30, 2017 was 1.44% . |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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 10 – 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 in GAAP as the pr ice that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date. GAAP focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction be tween market participants. 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 th e highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels are defined as follows: Level 1 – Inputs to the valuation are unadjusted quoted prices in active markets for identical a ssets or liabilities. Level 2 – Inputs to the valuation may include quoted prices for similar assets and liabilities in active or inactive markets, and inputs other than quoted prices, such as interest rates and yield curves, which are observable for the asset or liability for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation are unobservable and significant to the fair value measurement. Level 3 inputs shall be used to measure fair value only to the extent that obs ervable inputs are not available. The Company characterizes active markets as those where transaction volumes are sufficient to provide objective pricing information, such as an exchange traded price. Inactive markets are typically characterized by low tr ansaction volumes, and price quotations that vary substantially among market participants or are not based on current information. The Company’s balances measured at fair value on a recurring basis include the following as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets ABS $ — $ 4,000 $ — $ — Municipal securities — 2,632 — 2,528 Mutual fund 3,408 — 3,352 — At this time, the Company has not elected to report any assets or 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 that are not recorded on the consolidated balance sheet at fair value as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 77,316 $ 77,316 $ 61,757 $ 61,757 Time deposits with banks 8,360 8,337 9,605 9,614 Loans, net of allowance 41,471 41,674 28,949 29,128 Financial Liabilities Deposits $ 780,838 $ 773,088 $ 697,357 $ 694,721 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 June 30, 2017 and December 31, 2016 , 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. Securities Available for Sale Securities available 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 m arket 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 securitie s include mutual funds. When instruments are traded in secondary markets and quoted market prices do not exist for such securities, the Company relies on prices obtained from third-party pricing vendors and classifies these instruments within Level 2 of th e fair value hierarchy. The third-party vendors use a variety of methods when pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. Lev el 2 securities include ABS and municipal bonds. Loans The loan balances are comprised of three types of loans. Loans made as a member bank in a non-profit, multi-financial institution CDFI serving as a catalyst for community development by offering financing for affordable, quality housing to low- and moderate-income residents. Such loans help MBB satisfy its obligations under the Community Reinvestment Act of 1977. The fair value of these loans approximates the carrying amount at March 31, 2017 and December 3 1, 2016 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 flows 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 th e franchise finance channel. These loans may be secured by equipment 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 th e 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 a s 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 cer tificates 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") | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Earnings Per Common Share ("EPS") | NOTE 11 – 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands, except per-share data) Basic EPS Net income $ 4,553 $ 4,468 $ 6,093 $ 8,119 Less: net income allocated to participating securities (109) (129) (161) (231) Net income allocated to common stock $ 4,444 $ 4,339 $ 5,932 $ 7,888 Weighted average common shares outstanding 12,547,821 12,506,900 12,563,608 12,489,741 Less: Unvested restricted stock awards considered participating securities (305,016) (370,240) (335,392) (360,944) Adjusted weighted average common shares used in computing basic EPS 12,242,805 12,136,660 12,228,216 12,128,797 Basic EPS $ 0.36 $ 0.36 $ 0.49 $ 0.65 Diluted EPS Net income allocated to common stock $ 4,444 $ 4,339 $ 5,932 $ 7,888 Adjusted weighted average common shares used in computing basic EPS 12,242,805 12,136,660 12,228,216 12,128,797 Add: Effect of dilutive stock options 6,725 6,521 6,550 6,237 Adjusted weighted average common shares used in computing diluted EPS 12,249,530 12,143,181 12,234,766 12,135,034 Diluted EPS $ 0.36 $ 0.36 $ 0.48 $ 0.65 For the three-month periods ended June 30, 2017 and June 30, 2016 , outstanding stock - based compensation awards in the amount of 132,214 and 2,224 , respectively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS . For the six -month periods ended June 30, 2017 and June 30, 2016 , outstanding stock - based compensation awards in the amount of 136,828 and 2,279 , respec tively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 12 – Stockholders’ Equity Stockholders’ Equity On July 29 , 201 4 , the Company’s Board of Directors approved a stock repurchase plan , under which, the Company was authorized to repurchase up to $15 million in value of its outstanding shares of common stock (the “201 4 Repurchase Plan”). On May 30 , 201 7 , the Company’s Board of Directors approved a new stock repurchase plan to replace the 20 14 Repurchase Plan (the “201 7 Repurchase Plan”). Under the 201 7 Repurchase Plan, the Company is authorized to repurchase up to $1 0 million in value of its outstanding shares of common stock. This authority may be exercised from time to time and in such amounts as market conditions warrant. Any shares purchased under this plan are returned to the status of authori zed but unissued shares of common stock. The repurchases may be made on the open market or in block trades. The program may be suspended or discontinued at any time. The repurchases are funded using the Company’s working capital. During the three- and six -month periods ended June 30, 2017 , the Company purchased 58,914 shares of its common stock under the 2014 Repurchase Plan at an average cost of $ 25.09 . During the three- and six -month periods ended June 30, 2017 , t he Company purchased 23,490 shares of its common stock under the 2017 Repurchase Plan at an average cost of $ 25.54 . During the three- and six -month periods ended June 30, 2016 , the Company did not repurchase any of its common stock under the 2014 Repurchase Plan in the open market . At June 30, 2017 , the Company had $ 9.4 million remaining in the 201 7 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 have shares withheld to cover income taxes. There were 636 and 33,608 shares repurchased to cover income tax withholding in conne ction with shares granted under the 2014 Plan during each of the three- and six -month periods ended June 30, 2017 , at average per-share costs of $ 25.11 and $ 23.99 , respectively. There were 490 and 21,938 shares repurchased to cover income tax withholding in connection with shares granted under the 2014 Plan during the three- and six -month periods ended June 30, 2016 , at average per-share costs of $ 14.89 and $ 14.45 , respectively. Regulatory Capital Requirements Through its issuance of FDIC-insured deposits, MBB serves as the Company’s primary funding source. Over time, MBB may offer other products and services to the Company’s customer base. MBB operates as a Utah state-chartered, Federal Reserve member commercial bank, insured by the FDIC. As a state-chartered Federal Reserve member bank, MBB is supervised by both the Federal Reserve Bank of San Francisco and the Utah Department of Financial Institutions. The Company and MBB are subject to capital adequacy regulations issued jointly by the federal bank regulatory agencies. These risk-based capital and leverage guidelines make regulatory capital requirements more sensitive to differences in risk profiles among banking organizations and consider off-balance sheet exposures in determining capital adequacy. The federal bank regulatory agencies and/or the U.S. Congress may determine to increase capital requirements in the future due to the current economic environment. Under the capital adequacy regulation, at least half of a banking organization’s total capital is required to be "Tier 1 Capital" as defined in the regulations, comprised of common equity, retained earnings and a limited amount of non-cumulative perpetual preferred stock. The remaining capital, "Tier 2 Capital," as defined in the regulations, may consist of other preferred stock, a limited amount of term subordinated debt or a limited amount of the reserve for possible credit losses. The regulations establish minimum leverage ratios for banking organizations, which are calculated by dividing Tier 1 Capital by total average assets. Recognizing that the risk-based capital standards principally address credit risk rather than interest rate, liquidity, operational o r other risks, many banking organizations are expected to maintain capital in excess of the minimum standards. The Company and MBB operate under the Basel III capital adequacy standards. These standards require a minimum for Tier 1 leverage ratio of 4%, minimum Tier 1 risk-based ratio of 6%, and a total risk-based capital ratio of 8%. The Basel III capital adequacy standards established a new common equity Tier 1 risk-based capital ratio with a required 4.5% minimum (6.5% to be considered well-capitalized). The Company is required to have a level of regulatory capital in excess of the regulatory minimum and to have a capital buffer above 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. 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. T he Company plans to provide the necessary capital to maintain MBB at “well-capitalized” status as defined by banking regulations and as required by an agreement entered into by and among MBB, MLC, Marlin Business Services Corp. and the FDIC in conjunction wi th the opening of MBB (the “FDIC Agreement”). MBB’s Tier 1 Capital balance at June 30, 2017 was $131.2 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At June 30, 2017 , the Compa ny 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 June 30, 2017 . 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. 16.81% $ 162,075 4% $ 38,557 5% $ 48,196 Marlin Business Bank 14.36% $ 131,199 5% $ 45,697 5% $ 45,697 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 17.80% $ 162,075 4.5% $ 40,970 6.5% $ 59,178 Marlin Business Bank 14.79% $ 131,199 6.5% $ 57,672 6.5% $ 57,672 Tier 1 Risk-based Capital Marlin Business Services Corp. 17.80% $ 162,075 6% $ 54,626 8% $ 72,835 Marlin Business Bank 14.79% $ 131,199 8% $ 70,980 8% $ 70,980 Total Risk-based Capital Marlin Business Services Corp. 19.05% $ 173,470 8% $ 72,835 10% $ 91,044 Marlin Business Bank 16.04% $ 142,307 15% $ 133,088 10% (1) $ 88,726 __________________ (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 16.04% at June 30, 2017 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 | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 13 – 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, restricted stock units or restricted stock awards is 1,200,000 with not more than 1,000,000 of such shares available for issuance as restricted stock awards. There were 413,744 shares available for future awards under the 2014 Plan as of June 30, 2017 , of which 325,829 shares were available to be issued as restricted stock awards. Total stock-based compensation expense was $ 0.6 million and $ 0.3 million for the three-month periods en ded June 30, 2017 and June 30, 2016 , respectively . Total stock-based compensation expense was $ 1.6 million and $ 1.1 million for the six -month periods ended June 30, 2017 and June 30, 2016 , respectively. Excess ta x benefits from stock-based payment arrangements was $0. 4 million for the six -month period ended June 30, 201 7 . An excess tax deficit from stock-based payment arrangements increased cash provided by operating activities and decreased cash provided by finan cing activities by $0.1 million for the six-month period ended June 30, 2016. 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 year contractual terms. All options 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 Compensation Plans. Employee stock options generally vest over three to four years. The Company may also issue s stock options to non-employee independent directors. There were no stock options and 115,883 stock options granted during the three-month and six -month periods ended June 30, 2017 , resepctively. There were no stock opt ions granted during the three-month and six-month periods ended June 30, 2016 . The fair value of stock options granted during the six -month period ended June 3 0 , 2017 was $6.56 and was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: Assumption Risk-free interest rate 1.82 % Expected life (years) 4.50 Expected volatility 34.62 % Expected dividends 2.17 % The expected life for options is estimated based on their vesting and contractual terms and was determined by applying the simplified method as defined by the SEC’s Staff Accounting Bulletin No. 107 (“SAB 107”). The risk-free interest rate reflected the yield on zero-coupon Treasury securities with a term approximating the expected life of the stock options. The expected volatility was determined using historical volatilities based on historical stock prices. A summary of option activity for the six -month period ended June 30, 2017 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2016 41,640 $ 12.37 Granted 115,883 25.75 Exercised (39,416) 12.37 Forfeited (6,022) 20.82 Expired — — Outstanding, June 30, 2017 112,085 25.75 The Company recognized $0.1 million of compensation expense related to options d uring the three-month period ended June 30, 2017 . T he Company did not recognize compensation expense related to options during the three-month period ended June 30, 2016 . The Company recognized $0.1 million of compensation expense related to options d uring the six -month period ended June 30, 2017 . T he Company did not recognize compensation expense related to options during the six -month period ended June 30, 2016 . There were 9,163 and 3,455 stock options exercised during the three-month periods ended June 30, 2017 and June 30, 2016 , respectively. The total pretax intrinsic values of stock options exercised were $ 0.1 million and l ess than $0.1 million for t he three-month periods ended June 30, 2017 and June 30, 2016 , respectively. The total pretax intrinsic values of stock options exercised were $ 0.4 million and $ 0.1 million for the six -month periods ended June 30, 2017 and June 30, 2016 , respectively. The following table summarizes information about the stock options outstanding and exercisable as of June 30, 2017 : 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) $ 25.75 112,085 6.8 $ 25.75 $ — 0 0.0 $ 0.00 $ — 112,085 6.8 $ 25.75 $ — 0 0.0 $ 0.00 $ — The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $25.15 as of June 30, 2017 , which would have been received by the option holders had all option holders exercised their options as of that date. As of June 30, 2017 , the total future compensation cost related to non-vested stock options not yet recognized in the Consolidated Statements of Operations was $0.7 million . 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 seven 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 Compensation Plans. The vesting of certain restricted shares may be accelerated to a minimum of three years based on achievement of various individual performance measures. Acceleration of expense for awards based on individual performance factors occurs when the achievement of the performance criteria is determined. Of the total restricted stock awards granted during the six -month period ended June 30, 2017 , no shares may be subject to accelerated vesting based on individual performance factors; no shares have vesting contingent upon performance factors. Vesting was accelerated in 201 6 and 201 7 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 grant date or six months following the director’s termination from Board of Directors service. The follow ing table summarizes the activity of the non-vested restricted stock during the six - month period ended June 30, 2017 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2016 396,518 $ 16.07 Granted 32,408 24.92 Vested (109,517) 15.95 Forfeited (12,185) 15.86 Outstanding at June 30, 2017 307,224 17.05 During th e three-month periods ended June 30, 2017 and June 30, 2016 , the Company granted restricted stock awards with grant-date fair values totaling $ 0.7 million and $ 0.6 , respectively . During the six -month periods ended June 30, 2017 and June 30, 2016 , the Company granted restricted stock awards with grant-date fair values totaling $ 0.8 million and $ 2.3 million, respectively. As vesting occurs, or is deemed likely to occur, compensation expense is re cognized over the requisite service period and additional paid-in capital is increased. The Company recognized $ 0.3 million of compensation expense related to restricted stock for both three-month periods ended June 30, 2017 and June 30, 2016 , respectively. The Company recognized $ 1.2 million and $ 1.1 million of compensation expense related to restricted stock for the six -month periods ended June 30, 2017 and June 30, 2016 , respect ively. Of the $ 1.2 million total compensation expense related to restricted stock for the six -month period ended June 30, 2017 , approximately $ 0.6 million related to accelerated vesting during the first quarter of 2017 , based on achievement of certain performance criteria determined annually. Of the $ 1.1 million total compensation expense related to restricted stock for the six -month period ended June 30, 2016 , approximately $ 0.5 million related to accelerated vesting during the first quarter of 2016 , which was also based on the achievement of certain performance criteria determined annually. As of June 30, 2017 , there was $ 3.6 million of unrecogniz ed compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 3.9 years. In the event individual performance targets are achieved, $ 0.7 million of the unrecogn ized compensation cost would accelerate to be recognized over a weighted average period of 1.1 years. In addition, certain of the awards granted may result in the issuance of 30,513 additional shares of stock if achievement of ce rtain 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 three-month periods e nded June 30, 2017 and June 30, 2016 was $ 0.4 million and $ 0.1 , respectively. The fair value of shares that vested during the six -month periods ended June 30, 2017 and June 30, 2016 was $ 2.6 million and $ 0.8 million, respectively. Restricted Stock Units Restricted stock units (“RSUs”) are granted with vesting conditions based on fulfillment of a service condition (generally three to four years from the grant date), and may also require achievement of certain operating performance criteria or achievement of certain market-based targets associated with the Company’s stock price. The market based target measurement period begins one year from the grant date and ends three years from the grant date. Expense for equity based awards with market and service conditions is recognized over the service period based on the grant-date fair value of the award. The following tables summarize restricted stock unit activity for the six -month period ended June 30, 2017 : Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2016 120,000 $ 9.47 Granted 71,032 23.65 Forfeited (7,934) 13.44 Converted — — Cancelled due to non-achievement of market condition — — Outstanding at June 30, 2017 183,098 14.80 Service-based RSUs Outstanding at December 31, 2016 — $ — Granted 29,504 25.75 Forfeited (967) 25.75 Converted — — Outstanding at June 30, 2017 28,537 25.75 The weighted average grant-date fair value of RSUs with market based vesting conditions granted during the six -month period ended June 30, 2017 was $13.32 per unit. The weighte d average grant date fair value of these market based RSUs was estimated using a Monte Carlo simulation valuation model with the following assumptions: Six Months Ended June 30, 2017 2016 Grant date stock price $ 25.75 — Risk-free interest rate 1.72 % — Expected volatility 33.42 % — Dividend yield — — The risk free interest rate reflected the yield on zero coupon Treasury securities with a term approximating the expected life of the RSUs. The expected volatility was based on historical volatility of the Company’s common stock. Dividend yield was assumed at zero as the grant assumes dividends distributed during the performance period are reinvested. When valuing the grant, we have assumed a dividend yield of zero, which is mathematically equivalent to reinvesting dividends in the issuing entity. T here were no RSUs granted during the three-month periods ended June 30, 2017 and June 30, 2016, respectively. There were no RSUs granted during the six-month period ended June 30, 2016. During the six - month period ended June 3 0 , 2017, the Company granted R SUs with grant-date fair values totaling $2.4 million. The Company recognized $ 0. 2 million and $0.3 million of compensation e xpense related to RSUs for the three-month and s ix - month period s ended June 3 0 , 2017 , respectively . As of June 3 0 , 2017, there was $3. 1 million of unrecognized compensation cost related to RSUs scheduled to be recognized over a weighted average period of 2. 6 years based on the most probable performance assumptions. In the event maximum performance targets are achieved, an additional $1.5 million of compensation cost would be recognized over a weighted average period of 2.5 years and may result in the conversion of 57,098 additional units into shares of common stock. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 14 – Subsequent Events The Company declared a dividend of $0.140 per share on July 27, 2017 . The quarterly dividend, which is expected to result in a dividend payment of approximately $1.8 million, is scheduled to be paid on August 17, 2017 to shareholders of record on the close of business on August 7, 2017 . It represents the Company’s twenty-fourth 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 Accountin22
Summary of Critical Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 one product offering. All intercompany accounts and transactions have been eliminated in consolidation. During the second quarter of 2017, the Company identified that the sale of certain leases had been reported as cash flows from operating activities that should have been presented as investing activities. In addition , the Company also identified that the deferral of certain expenses associated with the cost of originating leases had been reported as an adjustment to operating cash flow rather than as an investing activity. The Company corrected the previously presente d cash flows for these items and in doing so, the consolidated statement of cash flow for the six-month period ended June 30, 2016 were adjusted to increase net cash flows from operating activities by $3.1 million and to increase net cash flows used in investing activities by the sa me amount. The Company has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it is immaterial to previously filed consolidated financial statements. The accompanying unaudited condensed consolida ted financial statements present the Company’s financial position at June 30, 2017 and the results of operations for the three-and six- month periods ended June 30, 2017 and 2016 , and cash flows for the six -month periods ended June 30, 2017 and 2016 . In Management’s opinion, the unaudited Condensed Consolidated Financial Statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of op erations for the interim periods presented. These unaudited condensed 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 Securi ties and Exchange Commission (“SEC”) on March 13 , 201 7 . The consolidated results of operations for the three-and six- month periods ended June 30, 2017 and 2016 and the consolidated statements of cash flows for the six -month periods ended June 30, 2017 and 2016 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. |
Recent Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards. Stock-Based Compensation. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting . The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of m o dication s unless all the following are met: 1) The fair value (or calculated value or int rinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the or iginal award is modified; 2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; 3) The classification of the modified award as an equity instrument o r a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification acc ounting under the amendments in this Update. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply the amendments in this Update prospectively to each period presented. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. Other Income. In February 2017, the FASB issued Accounting Standards Update 2 017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in this Update clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term in substance nonfinancial asset, in part, as a financial asset promised to a counterparty in a contrac t if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. The amendments in this Update also clarify that nonf inancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the amendments in this Update prospectively to each period presented. The Company is evaluating the impact of this new requirement on the consolidated earnings, financial position and cash flows of the Company. Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The ASU’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this ASU specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This ASU is effective, as a result of ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company expects to adopt the revenue recognition guidance on January 1, 2018 using the modified retrospective approach. A significant amount of the Company’s revenues is derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. With respect to noninterest income, the Company is in its preliminary stages of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is expecting to begin developing processes and procedures during the second half of 2017 to ensure it is fully compliant with these amendments. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to the January 1, 2018 implementation date. Recently Adopted Accounting Standards . In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Emp loyee Share-Based Payment Accounting . This ASU, which was adopted by the Company on January 1, 2017, simplifies the accounting for several aspects of share-based payment transactions, including income tax consequences, classification of awards as either eq uity or liabilities, and classification on the statement of cash flows. The changes which impacted the Company included a requirement that all excess tax benefits and deficiencies that pertain to share-based payment arrangements be recognized within income tax expense line instead of Capital surplus – common stock and other. The Company elected to adopt these changes on a prospective basis. Additionally, the ASU no longer requires a presentation of excess tax benefits and deficiencies related to the vesting and exercise of share-based compensation as both an operating outflow and financing inflow on the statement of cash flows. Adoption of this ASU did not have a material impact on our results of operations or financial position |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets. The Company tests for impairment of goodwill at least annually and more frequently as circumstances warrant in accordance with applicable accounting guidance. Accounting guidance allows for the testing of goodwill for impairment using both qualitative and quantitative factors. Impairment of goodwill is recognized only if the carrying amount of the Company, including goodwill, exceeds the fair value of the Company. The amount of the impairment loss would be equal to the excess carrying value of the goodwill over the implied fair value of the Company’s goodwill. Currently, the Company does not have any intangible assets with indefinite useful lives. Intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated use ful lives. The carrying amounts of definite lived intangible assets are regularly reviewed for indicators of impairment in accordance with applicable accounting guidance. Impairment is recognized only if the carrying amount of the intangible asset is in ex cess of its undiscounted projected cash flows. Impairment is measured as the difference between the carrying amount and the estimated fair value of the asset. |
Investment Securties (Tables)
Investment Securties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investment Securities Summary [Table Text Block] | June 30, 2017 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale Asset-backed securities ("ABS") $ 4,037 $ 2 $ (39) $ 4,000 Municipal securities $ 2,660 $ - $ (28) $ 2,632 Mutual fund $ 3,515 $ - $ (107) $ 3,408 Total securities available for sale $ 10,212 $ 2 $ (174) $ 10,040 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Securities Available for Sale ABS $ - $ - $ - $ - Municipal securities $ 2,625 $ - $ (97) $ 2,528 Mutual fund $ 3,479 $ - $ (127) $ 3,352 Total securities available for sale $ 6,104 $ - $ (224) $ 5,880 |
Schedule of Unrealized Loss on Investments [Table Text Block] | June 30, 2017 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ (39) $ 2,994 $ - $ - $ (39) $ 2,994 Municipal securities $ (28) $ 2,632 $ - $ - $ (28) $ 2,632 Mutual fund $ - $ - $ (107) $ 3,408 $ (107) $ 3,408 Total debt securities available for sale $ (67) $ 5,626 $ (107) $ 3,408 $ (174) $ 9,034 December 31, 2016 Less than 12 months 12 months or longer Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in thousands) Securities Available for Sale: ABS $ - $ - $ - $ - $ - $ - Municipal securities $ (97) $ 2,528 $ - $ - $ (97) $ 2,528 Mutual fund $ - $ - $ (127) $ 3,352 $ (127) $ 3,352 Total debt securities available for sale $ (97) $ 2,528 $ (127) $ 3,352 $ (224) $ 5,880 |
Investments Classified By Contractual Maturity Date [Table Text Block] | 1 Year After 1 Year After 5 Years After 10 or Less through 5 Years through 10 Years Years Total (Dollars in thousands) Amortized Cost: Available for Sale: ABS $ - $ 2,008 $ 1,023 $ 1,003 $ 4,037 Municipal securities $ - $ - $ 2,660 $ - $ 2,660 Total debt securities available for sale $ - $ 2,008 $ 3,683 $ 1,003 $ 6,697 Estimated fair value $ - $ 2,004 $ 3,628 $ 1,000 $ 6,632 Weighted-average yield, GAAP basis - 2.05% 2.27% 1.64% 2.11% |
Net Investment in Leases and 24
Net Investment in Leases and Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Net Investment in Leases and Loans [Abstract] | |
Components of Net Investment in Leases and Loans [Table Text Block] | June 30, December 31, 2017 2016 (Dollars in thousands) Minimum lease payments receivable $ 931,160 $ 867,806 Estimated residual value of equipment 26,659 26,790 Unearned lease income, net of initial direct costs and fees deferred (123,789) (115,158) Security deposits (1,284) (1,493) Commercial loans, net of origination costs and fees deferred Funding Stream 26,228 19,870 Other (1) 16,288 9,839 Total commercial loans 42,516 29,709 Allowance for credit losses (12,559) (10,937) $ 862,703 $ 796,717 |
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, 2017 $ 197,534 $ 35,373 2018 316,419 47,642 2019 214,321 25,522 2020 126,347 11,307 2021 61,863 3,516 Thereafter 14,676 429 $ 931,160 $ 123,789 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Allowance For Credit Losses [Abstract] | |
Allowance for Credit Losses on Finance Receivables [Table Text Block] | Three Months Ended Six Months Ended Year Ended June 30, June 30, December 31, 2017 2016 2017 2016 2016 (Dollars in thousands) Allowance for credit losses, beginning of period $ 11,687 $ 9,191 $ 10,937 $ 8,413 $ 8,413 Charge-offs (4,069) (3,180) (7,743) (5,999) (12,387) Recoveries 627 751 1,167 1,273 2,497 Net charge-offs (3,442) (2,429) (6,576) (4,726) (9,890) Provision for credit losses 4,314 2,668 8,198 5,743 12,414 Allowance for credit losses, end of period (1) $ 12,559 $ 9,430 $ 12,559 $ 9,430 $ 10,937 Annualized net charge-offs to average total finance receivables (2) 1.65% 1.38% 1.61% 1.36% 1.37% Allowance for credit losses to total finance receivables, end of period (2) 1.46% 1.30% 1.46% 1.30% 1.38% Average total finance receivables (2) $ 835,516 $ 706,039 $ 816,218 $ 692,645 $ 720,060 Total finance receivables, end of period (2) $ 858,671 $ 727,707 $ 858,671 $ 727,707 $ 793,285 Delinquencies greater than 60 days past due $ 5,108 $ 3,548 $ 5,108 $ 3,548 $ 4,137 Delinquencies greater than 60 days past due (3) 0.52% 0.43% 0.52% 0.43% 0.46% Allowance for credit losses to delinquent accounts greater than 60 days past due (3) 245.87% 265.78% 245.87% 265.78% 264.37% Non-accrual leases and loans, end of period $ 2,621 $ 1,771 $ 2,621 $ 1,771 $ 2,242 Renegotiated leases and loans, end of period $ 878 $ 450 $ 878 $ 450 $ 769 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill [Table Text Block] | (Dollars in thousands) Total Company Balance at December 31, 2016 $ — Acquisition of HKF on January 4, 2017 1,160 Balance at June 30, 2017 $ 1,160 |
Schedule of Finite Lived Intangible Assets [Table Text Block] | (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 years $ 360 $ 60 $ 300 Vendor relationships 11 years 920 42 878 Corporate trade name 7 years 60 4 56 $ 1,340 $ 106 $ 1,234 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | June 30, December 31, 2017 2016 (Dollars in thousands) Accrued fees receivable $ 2,939 $ 2,762 Prepaid expenses 1,875 2,201 Other 4,793 4,445 $ 9,607 $ 9,408 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 $ 56 $ 804 $ 860 2018 112 1,484 1,596 2019 112 1,447 1,559 2020 112 686 798 2021 56 — 56 Total minimum lease payments $ 448 $ 4,421 $ 4,869 Less: amount representing interest (19) Present value of minimum lease payments $ 429 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Contractual Maturities of Time Deposits [Abstract] | |
Contractual Maturities Of Time Deposits [Table Text Block] | Scheduled Maturities (Dollars in thousands) Period Ending December 31, 2017 $ 156,695 2018 250,698 2019 167,815 2020 89,303 2021 54,818 Thereafter 18,988 Total $ 738,317 |
Fair Value Measurements and D30
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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] | June 30, 2017 December 31, 2016 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 1 Level 2 (Dollars in thousands) Assets ABS $ — $ 4,000 $ — $ — Municipal securities — 2,632 — 2,528 Mutual fund 3,408 — 3,352 — |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments [Table Text Block] | June 30, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 77,316 $ 77,316 $ 61,757 $ 61,757 Time deposits with banks 8,360 8,337 9,605 9,614 Loans, net of allowance 41,471 41,674 28,949 29,128 Financial Liabilities Deposits $ 780,838 $ 773,088 $ 697,357 $ 694,721 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Common Share ("EPS") [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Dollars in thousands, except per-share data) Basic EPS Net income $ 4,553 $ 4,468 $ 6,093 $ 8,119 Less: net income allocated to participating securities (109) (129) (161) (231) Net income allocated to common stock $ 4,444 $ 4,339 $ 5,932 $ 7,888 Weighted average common shares outstanding 12,547,821 12,506,900 12,563,608 12,489,741 Less: Unvested restricted stock awards considered participating securities (305,016) (370,240) (335,392) (360,944) Adjusted weighted average common shares used in computing basic EPS 12,242,805 12,136,660 12,228,216 12,128,797 Basic EPS $ 0.36 $ 0.36 $ 0.49 $ 0.65 Diluted EPS Net income allocated to common stock $ 4,444 $ 4,339 $ 5,932 $ 7,888 Adjusted weighted average common shares used in computing basic EPS 12,242,805 12,136,660 12,228,216 12,128,797 Add: Effect of dilutive stock options 6,725 6,521 6,550 6,237 Adjusted weighted average common shares used in computing diluted EPS 12,249,530 12,143,181 12,234,766 12,135,034 Diluted EPS $ 0.36 $ 0.36 $ 0.48 $ 0.65 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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. 16.81% $ 162,075 4% $ 38,557 5% $ 48,196 Marlin Business Bank 14.36% $ 131,199 5% $ 45,697 5% $ 45,697 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 17.80% $ 162,075 4.5% $ 40,970 6.5% $ 59,178 Marlin Business Bank 14.79% $ 131,199 6.5% $ 57,672 6.5% $ 57,672 Tier 1 Risk-based Capital Marlin Business Services Corp. 17.80% $ 162,075 6% $ 54,626 8% $ 72,835 Marlin Business Bank 14.79% $ 131,199 8% $ 70,980 8% $ 70,980 Total Risk-based Capital Marlin Business Services Corp. 19.05% $ 173,470 8% $ 72,835 10% $ 91,044 Marlin Business Bank 16.04% $ 142,307 15% $ 133,088 10% (1) $ 88,726 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-based Payment Award Stock Options Valuation Assumptions [Table Text Block] | Assumption Risk-free interest rate 1.82 % Expected life (years) 4.50 Expected volatility 34.62 % Expected dividends 2.17 % |
Schedule of Stock-based Compensation, Stock Options Activity [Table Text Block] | Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2016 41,640 $ 12.37 Granted 115,883 25.75 Exercised (39,416) 12.37 Forfeited (6,022) 20.82 Expired — — Outstanding, June 30, 2017 112,085 25.75 |
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) $ 25.75 112,085 6.8 $ 25.75 $ — 0 0.0 $ 0.00 $ — 112,085 6.8 $ 25.75 $ — 0 0.0 $ 0.00 $ — |
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, 2016 396,518 $ 16.07 Granted 32,408 24.92 Vested (109,517) 15.95 Forfeited (12,185) 15.86 Outstanding at June 30, 2017 307,224 17.05 |
Schedule of Stock-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2016 120,000 $ 9.47 Granted 71,032 23.65 Forfeited (7,934) 13.44 Converted — — Cancelled due to non-achievement of market condition — — Outstanding at June 30, 2017 183,098 14.80 Service-based RSUs Outstanding at December 31, 2016 — $ — Granted 29,504 25.75 Forfeited (967) 25.75 Converted — — Outstanding at June 30, 2017 28,537 25.75 |
Schedule of Stock-Based Payment Award, Restricted Stock Units Valuation Assumptions [Table Text Block[ | Six Months Ended June 30, 2017 2016 Grant date stock price $ 25.75 — Risk-free interest rate 1.72 % — Expected volatility 33.42 % — Dividend yield — — |
The Company (Narrative) (Detail
The Company (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Payments To Acquire Businesses, Gross | $ 2,500 | ||
Goodwill | $ 1,160 | $ 0 | |
Finite Lived Intangible Assets Acquired | $ 1,300 | ||
Business Acquisition, Date Of Acquisition Agreement | Jan. 4, 2017 | ||
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 |
Accounting Policies (Narratives
Accounting Policies (Narratives) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Interest Income [Abstract] | |
Increase in net cash flows from operating activities | $ 3.1 |
Increase in net cash flows from investing activities | $ 3.1 |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 10,212 | $ 6,104 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (174) | (224) |
Available-for-sale Securities, fair value | 10,040 | 5,880 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 4,037 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (39) | 0 |
Available-for-sale Securities, fair value | 4,000 | 0 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 2,660 | 2,625 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (28) | (97) |
Available-for-sale Securities, fair value | 2,632 | 2,528 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,515 | 3,479 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (107) | (127) |
Available-for-sale Securities, fair value | $ 3,408 | $ 3,352 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Loss and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (67) | $ (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | (5,626) | (2,528) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (107) | (127) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | (3,408) | (3,352) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | 174 | 224 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 9,034 | 5,880 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (39) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | (2,994) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | 39 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 2,994 | 0 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (28) | (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | (2,632) | (2,528) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | 28 | 97 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 2,632 | 2,528 |
Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (107) | (127) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | (3,408) | (3,352) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | 107 | 127 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 3,408 | $ 3,352 |
Investment Securities (Contract
Investment Securities (Contractual Maturity of Debt Securities) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 2,008 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 3,683 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 1,003 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 6,697 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 2,004 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 3,628 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 1,000 |
Available-for-sale Securities, Debt Securities, Fair Value, Total | $ 6,632 |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.11% |
One Year or Less [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 0.00% |
After One Year Through Five Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.05% |
After Five Years Through Ten Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.27% |
After Ten Years [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 1.64% |
Asset Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 2,008 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 1,023 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 1,003 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 4,037 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 0 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 2,660 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 0 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | $ 2,660 |
Net Investment in Leases and 39
Net Investment in Leases and Loans (Narratives) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Net Investment in Leases and Loans [Abstract] | |||
Net Investment in Leases, Initial Direct Costs | $ 15,900 | $ 13,900 | |
Net Investment in Loans, Origination Costs | 700 | 400 | |
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | 26,659 | 26,790 | |
Non-accrual leases and loans, end of period | 2,621 | 2,242 | $ 1,771 |
Renegotiated leases and loans, end of period | 878 | 769 | $ 450 |
Leases Pledged as Collateral [Member] | |||
Product Information [Line Items] | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 29,800 | ||
Commercial Loan [Member] | |||
Product Information [Line Items] | |||
Non-accrual leases and loans, end of period | 100 | 100 | |
Renegotiated leases and loans, end of period | 200 | 100 | |
Copier Product [Member] | |||
Product Information [Line Items] | |||
Estimated Residual Value of Equipment | $ 22,500 | $ 22,500 |
Net Investment in Leases and 40
Net Investment in Leases and Loans (Net Investment Components) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | [2] | Dec. 31, 2016 | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2015 | |||
Net Investment in Leases and Loans [Abstract] | ||||||||||||
Minimum lease payments receivable | $ 931,160 | $ 867,806 | ||||||||||
Estimated Residual Value of Equipment | 26,659 | 26,790 | ||||||||||
Unearned Lease Income, Net Of Initial Direct Costs and Fees Deferred | (123,789) | (115,158) | ||||||||||
Security Deposits | (1,284) | (1,493) | ||||||||||
Funding Stream loans | 26,228 | 19,870 | ||||||||||
Other commercial loans | [1] | 16,288 | 9,839 | |||||||||
Total commercial loans, net of origination costs and fees deferred | 42,516 | 29,709 | ||||||||||
Allowance for Credit Losses | (12,559) | [2] | $ (11,687) | (10,937) | [2] | $ (9,430) | $ (9,191) | $ (8,413) | ||||
Net investment in leases and loans | $ 862,703 | $ 796,717 | ||||||||||
[1] | Other loans are comprised of commercial loans and other loans by MBB to satisfy its obligations under the Community Reinvestment Act of 1977. | |||||||||||
[2] | (1) At June 30, 2017 , December 31, 2016 , and June 30, 2016 the allowance for credit losses allocated to loans was $ 1 . 0 million, $0. 8 million, and $0. 5 million , respectively. |
Net Investment in Leases and 41
Net Investment in Leases and Loans (Future Minimum Lease Payments Receivable Schedule) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
2,017 | $ 197,534 | |
2,018 | 316,419 | |
2,019 | 214,321 | |
2,020 | 126,347 | |
2,021 | 61,863 | |
Thereafter | 14,676 | |
Minimum Lease Payments Receivable | 931,160 | $ 867,806 |
Future Scheduled Income Amortization [Abstract] | ||
2,017 | 35,373 | |
2,018 | 47,642 | |
2,019 | 25,522 | |
2,020 | 11,307 | |
2,021 | 3,516 | |
Thereafter | 429 | |
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | $ 123,789 | $ 115,158 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | [1] | Dec. 31, 2015 | ||||||||
Allowance for Credit Losses [Line Items] | ||||||||||||||||
Loans and Leases Receivable, Allowance | $ 12,559 | [1] | $ 11,687 | [1] | $ 9,430 | [1] | $ 12,559 | [1] | $ 9,430 | [1] | $ 10,937 | [1] | $ 9,191 | $ 8,413 | ||
Net charge-offs | $ (3,442) | $ (3,134) | $ (2,429) | $ (6,576) | $ (4,726) | $ (9,890) | ||||||||||
Annualized net charge-offs to average total finance receivables | [2] | 1.65% | 1.57% | 1.38% | 1.61% | 1.36% | 1.37% | |||||||||
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 | $ 1,000 | $ 500 | $ 1,000 | $ 500 | $ 800 | |||||||||||
[1] | (1) At June 30, 2017 , December 31, 2016 , and June 30, 2016 the allowance for credit losses allocated to loans was $ 1 . 0 million, $0. 8 million, and $0. 5 million , respectively. | |||||||||||||||
[2] | (2) Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for credit losses, beginning of period | $ 11,687 | [1] | $ 10,937 | [1] | $ 9,191 | [1] | $ 10,937 | [1] | $ 8,413 | $ 8,413 | |
Charge-offs | (4,069) | (3,180) | (7,743) | (5,999) | (12,387) | ||||||
Recoveries | 627 | 751 | 1,167 | 1,273 | 2,497 | ||||||
Net charge-offs | (3,442) | (3,134) | (2,429) | (6,576) | (4,726) | (9,890) | |||||
Provision for credit losses | 4,314 | 2,668 | 8,198 | 5,743 | 12,414 | ||||||
Allowance for credit losses, end of period | [1] | $ 12,559 | $ 11,687 | $ 9,430 | $ 12,559 | $ 9,430 | $ 10,937 | ||||
Annualized net charge-offs to average total finance receivables | [2] | 1.65% | 1.57% | 1.38% | 1.61% | 1.36% | 1.37% | ||||
Allowance for credit losses to total finance receivables, end of period | [2] | 1.46% | 1.30% | 1.46% | 1.30% | 1.38% | |||||
Average total finance receivables | [2] | $ 835,516 | $ 706,039 | $ 816,218 | $ 692,645 | $ 720,060 | |||||
Total finance receivables, end of period | [2] | 858,671 | 727,707 | 858,671 | 727,707 | 793,285 | |||||
Delinquencies greater than 60 days past due | $ 5,108 | $ 3,548 | $ 5,108 | $ 3,548 | $ 4,137 | ||||||
Delinquencies greater than 60 days past due as a percentage of total finance receivables | [3] | 0.52% | 0.43% | 0.52% | 0.43% | 0.46% | |||||
Allowance for credit losses to delinquent accounts greater than 60 days past due | [3] | 245.87% | 265.78% | 245.87% | 265.78% | 264.37% | |||||
Non-accrual leases and loans, end of period | $ 2,621 | $ 1,771 | $ 2,621 | $ 1,771 | $ 2,242 | ||||||
Renegotiated leases and loans, end of period | $ 878 | $ 450 | $ 878 | $ 450 | $ 769 | ||||||
[1] | (1) At June 30, 2017 , December 31, 2016 , and June 30, 2016 the allowance for credit losses allocated to loans was $ 1 . 0 million, $0. 8 million, and $0. 5 million , respectively. | ||||||||||
[2] | (2) Total finance receivables include net investment in direct financing leases and loans. For purposes of asset quality and allowance calculations, the effects of (i) the allowance for credit losses and (ii) initial direct costs and fees deferred are excluded. | ||||||||||
[3] | (3) Calculated as a percent o f total minimum lease payments receivable for leases and as a percent of principal outstanding for loans. |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,160 | $ 0 | |
Goodwill Impairment Loss | 0 | ||
Finite Lived Intangible Assets Acquired | $ 1,300 | ||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 8 years 8 months | ||
Amortization of Intangible Assets | 100 | ||
Estimated amortization expense in 2018 | 212 | ||
Estimated amortization expense in 2019 | 212 | ||
Estimated amortization expense in 2020 | 92 | ||
Estimated amortization expense in 2021 | 92 | ||
Estimated amortization expense in 2022 | 92 | ||
Impairment Of Intangible Assets, Finite-lived | $ 0 | ||
Business Acquisition, Date Of Acquisition Agreement | Jan. 4, 2017 |
Summary of Changes In Carrying
Summary of Changes In Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 0 |
Acquisition of Horizon Keystone Financial on January 4, 2017 | 1,160 |
Goodwill, Ending Balance | $ 1,160 |
Intangible Assets (Detail)
Intangible Assets (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Cost | $ 1,340 |
Accumulated Amortization | 106 |
Net Value | $ 1,234 |
Lender Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Cost | $ 360 |
Accumulated Amortization | 60 |
Net Value | $ 300 |
Vendor Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 11 years |
Cost | $ 920 |
Accumulated Amortization | 42 |
Net Value | $ 878 |
Trade Names [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 7 years |
Cost | $ 60 |
Accumulated Amortization | 4 |
Net Value | $ 56 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets [Abstract] | ||
Accrued fees receivable | $ 2,939 | $ 2,762 |
Prepaid expenses | 1,875 | 2,201 |
Other assets, miscellaneous | 4,793 | 4,445 |
Other assets, total | $ 9,607 | $ 9,408 |
Commitments and Contingencies48
Commitments and Contingencies (Narratives) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017USD ($)Number | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | |
Entity Location [Line Items] | |||
Number Of Offices | Number | 8 | ||
Operating Leases, Rent Expense | $ 0.6 | $ 0.5 | |
Membership Expiration Date, Extended | Sep. 30, 2017 | ||
Restitution Due To Customers | $ 4.2 | ||
Marlin Business Bank [Member] | |||
Entity Location [Line Items] | |||
Loan Participation Ownership Percentage | 1.20% | ||
Unfunded Loan Commitments | $ 0.9 |
Commitments and Contingencies49
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments [Abstract] | |
2017, capital lease payments due | $ 56 |
2018, capital lease payments due | 112 |
2019, capital lease payments due | 112 |
2020, capital lease payments due | 112 |
2021, capital lease payments due | 56 |
Thereafter, capital lease payments due | 0 |
Total minimum lease payments due, capital leases | 448 |
Less: amount representing interest | (19) |
Present value of minimum lease payments, capital leases | 429 |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2017, operating lease payments due | 804 |
2018, operating lease payments due | 1,484 |
2019, operating lease payments due | 1,447 |
2020, operating lease payments due | 686 |
2021, operating lease payments due | 0 |
Thereafter, operating lease payments due | 0 |
Total minimum lease payments due, operating leases | 4,421 |
Capital And Operating Leases Future Minimum Payments Due [Abstract] | |
2017, total lease payments due | 860 |
2018, total lease payments due | 1,596 |
2019, total lease payments due | 1,559 |
2020, total lease payments due | 798 |
2021, total lease payments due | 56 |
Thereafter, total lease payments due | 0 |
Total minimum lease payments due | $ 4,869 |
Deposits (Details)
Deposits (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Contractual Maturities of Time Deposits [Abstract] | ||
2,017 | $ 156,695,000 | |
2,018 | 250,698,000 | |
2,019 | 167,815,000 | |
2,020 | 89,303,000 | |
2,021 | 54,818,000 | |
Thereafter | 18,988,000 | |
Total | 738,317,000 | $ 697,357,000 |
Maximum time deposit liability denomination | 250,000 | |
Cash FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of all deposit liabilities outstanding | 1.44% | |
Marlin Business Bank [Member] | ||
Contractual Maturities of Time Deposits [Abstract] | ||
Money market deposit accounts | $ 42,500,000 |
Fair Value Measurements and D51
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 10,040 | $ 5,880 |
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] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 3,408 | 3,352 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,000 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 2,632 | $ 2,528 |
Fair Value Measurements and D52
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Estimated Fair Values and Carrying Amounts) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | $ 77,316 | $ 61,757 | $ 78,767 | $ 60,129 |
Securities available for sale | 10,040 | 5,880 | ||
Time deposits with banks | 8,360 | 9,605 | ||
Total commercial loans, net of origination costs and fees deferred | 42,516 | 29,709 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 780,838 | 697,357 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 77,316 | 61,757 | ||
Time deposits with banks | 8,360 | 9,605 | ||
Loans, net of allowance | 41,471 | 28,949 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | 780,838 | 697,357 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total cash and cash equivalents | 77,316 | 61,757 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Time deposits with banks | 8,337 | 9,614 | ||
Loans, net of allowance | 41,674 | 29,128 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Deposits | $ 773,088 | $ 694,721 |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS Basic) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Basic [Abstract] | ||||
Net Income | $ 4,553 | $ 4,468 | $ 6,093 | $ 8,119 |
Less: net income allocated to participating securities | (109) | (129) | (161) | (231) |
Net income allocated to common stock | $ 4,444 | $ 4,339 | $ 5,932 | $ 7,888 |
Weighted average common shares outstanding | 12,547,821 | 12,506,900 | 12,563,608 | 12,489,741 |
Less: Unvested restricted stock awards considered participating securities | (305,016) | (370,240) | (335,392) | (360,944) |
Adjusted weighted average common shares used in computing basic EPS | 12,242,805 | 12,136,660 | 12,228,216 | 12,128,797 |
Basic earnings per share | $ 0.36 | $ 0.36 | $ 0.49 | $ 0.65 |
Earnings Per Common Share (EP54
Earnings Per Common Share (EPS Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Diluted [Abstract] | ||||
Net income allocated to common stock | $ 4,444 | $ 4,339 | $ 5,932 | $ 7,888 |
Adjusted weighted average common shares used in computing basic EPS | 12,242,805 | 12,136,660 | 12,228,216 | 12,128,797 |
Add: Effect of dilutive stock options | 6,725 | 6,521 | 6,550 | 6,237 |
Adjusted weighted average common shares used in computing diluted EPS | 12,249,530 | 12,143,181 | 12,234,766 | 12,135,034 |
Diluted earnings per share | $ 0.36 | $ 0.36 | $ 0.48 | $ 0.65 |
Antidilutive securities excluded from computation of earnings per share amount | 132,214 | 2,224 | 136,828 | 2,279 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 30, 2017 | Jul. 29, 2014 | |
Dividends Paid [Line Items] | |||||||||
Cash dividends paid | $ 3,552 | $ 3,495 | |||||||
Stock Repurchase [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | $ 15,000 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 9,400 | 9,400 | |||||||
Marlin Business Services Corp. [Member] | |||||||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | |||||||||
Total stockholders equity (regulatory) | $ 162,075 | $ 162,075 | |||||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | |||||||
Tier One Risk Based Capital to Risk Weighted Assets | 17.80% | 17.80% | |||||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |||||||
Total Risk Based Capital to Risk Weighted Assets | 19.05% | 19.05% | |||||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% | |||||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 4.50% | 4.50% | |||||||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% | |||||||
New Capital Conservation Buffer | 1.25% | 1.25% | 2.50% | 1.875% | 1.25% | ||||
Marlin Business Bank [Member] | |||||||||
Regulatory Capital Requirements Miscellaneous Information [Line Items] | |||||||||
Total stockholders equity (regulatory) | $ 131,199 | $ 131,199 | |||||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | 15.00% | |||||||
Tier One Risk Based Capital to Risk Weighted Assets | 14.79% | 14.79% | |||||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 5.00% | 5.00% | |||||||
FDIC Agreement Capital Required To Be Well Capitalized To Risk Weighted Assets | 15.00% | 15.00% | |||||||
Total Risk Based Capital to Risk Weighted Assets | 16.04% | 16.04% | |||||||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | |||||||
Common Equity Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 6.50% | 6.50% | |||||||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% | |||||||
New Capital Conservation Buffer | 1.25% | 1.25% | 2.50% | 1.875% | 1.25% | ||||
Instrument Equity Compensation Plan [Member] | |||||||||
Stock Repurchase [Line Items] | |||||||||
Stock Repurchased During Period, Shares | 636 | 490 | 33,608 | 21,938 | |||||
Stock Repurchased During Period, Average Cost Per Share | $ 25.11 | $ 14.89 | $ 23.99 | $ 14.45 | |||||
2017 Stock Repurchase Plan [Member] | |||||||||
Stock Repurchase [Line Items] | |||||||||
Stock Repurchased During Period, Shares | 23,490 | 23,490 | |||||||
Stock Repurchased During Period, Average Cost Per Share | $ 25.54 | $ 25.54 | |||||||
2014 Stock Repurchase Plan [Member] | |||||||||
Stock Repurchase [Line Items] | |||||||||
Stock Repurchased During Period, Shares | 58,914 | 0 | 58,914 | 0 | |||||
Stock Repurchased During Period, Average Cost Per Share | $ 25.09 | $ 0 | $ 25.09 | $ 0 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Ratios) (Details) | Jun. 30, 2017USD ($) | |
Marlin Business Services Corp. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 162,075,000 | |
Tier One Leverage Capital Required for Capital Adequacy | 38,557,000 | |
Tier One Leverage Capital Required to be Well Capitalized | 48,196,000 | |
Common Equity Tier One Risk Based Capital | 162,075,000 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 40,969,710 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 59,178,470 | |
Tier One Risk Based Capital | 162,075,000 | |
Tier One Risk Based Capital Required for Capital Adequacy | 54,626,000 | |
Tier One Risk Based Capital Required to be Well Capitalized | 72,835,000 | |
Total Risk Based Capital | 173,470,000 | |
Total Risk Based Capital Required for Capital Adequacy | 72,835,000 | |
Total Risk Based Capital Required to be Well Capitalized | $ 91,044,000 | |
Tier One Leverage Capital to Average Assets | 16.81% | |
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 | 17.80% | |
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 | 17.80% | |
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 | 19.05% | |
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 | $ 131,199,000 | |
Tier One Leverage Capital Required for Capital Adequacy | 45,697,000 | |
Tier One Leverage Capital Required to be Well Capitalized | 45,697,000 | |
Common Equity Tier One Risk Based Capital | 131,199,000 | |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 57,672,000 | |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 57,672,000 | |
Tier One Risk Based Capital | 131,199,000 | |
Tier One Risk Based Capital Required for Capital Adequacy | 70,980,000 | |
Tier One Risk Based Capital Required to be Well Capitalized | 70,980,000 | |
Total Risk Based Capital | 142,307,000 | |
Total Risk Based Capital Required for Capital Adequacy | 133,088,000 | |
Total Risk Based Capital Required to be Well Capitalized | $ 88,726,000 | |
Tier One Leverage Capital to Average Assets | 14.36% | |
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 | 14.79% | |
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 | 14.79% | |
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 | 16.04% | |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based Compensation Arrangements [Line Items] | ||||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,200,000 | 1,200,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 413,744 | 413,744 | ||
Number of Shares, Stock Options Granted | 115,883 | |||
Stock-based Compensation Expense | $ 600,000 | $ 300,000 | $ 1,549,000 | $ 1,062,000 |
Stock Options Exercised, Number of Shares | 39,416 | |||
Tax Benefit from Stock-based Compensation | $ 400,000 | |||
Excess Tax Deficit Stock Based Payment Arrangements | $ 100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.92 | |||
Common Stock Closing Price Per Share | $ 25.15 | $ 25.15 | ||
Stock Options [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Equity Compensation Plan, Grant Original Contractual Term in Years | 7 years | |||
Number of Shares, Stock Options Granted | 0 | 0 | 115,883 | 0 |
Stock-based Compensation Expense | $ 100,000 | $ 0 | $ 100,000 | $ 0 |
Stock Options Exercised, Number of Shares | 9,163 | 3,455 | ||
Stock Options Exercised, Total Intrinsic Value | $ 100,000 | $ 100,000 | 400,000 | 100,000 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | 700,000 | 700,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Incremental Cost at Maximum Performance | $ 0 | $ 0 | ||
Stock-based Awards, Vesting Period in Years | 3 years | |||
Weighted average fair value of options granted | $ 6.56 | |||
Stock Options [Member] | Maximum [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 4 years | |||
Restricted Stock [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 1,000,000 | 1,000,000 | ||
Equity Compensation Plan, Number of Shares Available for Grant | 325,829 | 325,829 | ||
Stock-based Compensation Expense | $ 300,000 | 300,000 | $ 1,200,000 | 1,100,000 |
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | 3,600,000 | $ 3,600,000 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 3 years 11 months | |||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | |||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | 700,000 | 600,000 | $ 800,000 | 2,300,000 |
Stock-based Compensation Expense Due to Performance Acceleration | 600,000 | 466,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | 700,000 | $ 700,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration, Period for Recognition, in Years | 1 year 1 month | |||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 30,513 | |||
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 | 400,000 | $ 100,000 | $ 2,600,000 | $ 800,000 |
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 | 7 years | |||
Restricted Stock [Member] | Maximum [Member] | Director [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 7 years | |||
Performance-Based and Market-Based RSUs [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Compensation Expense | 200,000 | $ 300,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | 3,100,000 | $ 3,100,000 | ||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 2 years 7 months | |||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 2,400,000 | |||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | $ 1,500,000 | $ 1,500,000 | ||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration, Period for Recognition, in Years | 2 years 6 months | |||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 57,098 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 23.65 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments RSUs Grants In Period Weighted Average Grant Date Fair Value | $ 13.32 | |||
Performance-Based and Market-Based RSUs [Member] | Minimum [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 1 year | |||
Performance-Based and Market-Based RSUs [Member] | Maximum [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 3 years | |||
Service-Based RSUs [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 25.75 | |||
Service-Based RSUs [Member] | Minimum [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 3 years | |||
Service-Based RSUs [Member] | Maximum [Member] | ||||
Stock-based Compensation Arrangements [Line Items] | ||||
Stock-based Awards, Vesting Period in Years | 4 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | |
Number of Shares Outstanding, Beginning of Period | shares | 41,640 |
Number of Shares, Stock Options Granted | shares | 115,883 |
Number of Shares, Stock Options Exercised | shares | (39,416) |
Number of Shares, Forfeited | shares | (6,022) |
Number of Shares, Expired | shares | 0 |
Number of Shares Outstanding, End of Period | shares | 112,085 |
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ / shares | $ 12.37 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 25.75 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 12.37 |
Weighted Average Exercise Price Per Share, Forfeitures | $ / shares | 20.82 |
Weighted Average Exercise Price Per Share, Expired | $ / shares | 0 |
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ / shares | $ 25.75 |
Stock-based Compensation Arrangements [Line Items] | |
Risk-free interest rate | 1.82% |
Expected option life | 4 years 6 months |
Expected volatility | 34.62% |
Dividend yield | 2.17% |
Stock-Based Compensation (Sum59
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 112,085 | 41,640 |
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 10 months | |
Options Outstanding, Weighted Average Exercise Price | $ 25.75 | $ 12.37 |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 0 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 0 years | |
Options Exercisable, Weighted Average Exercise Price | $ 0 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |
$25.75 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 25.75 | |
Options Outstanding and Exercisable, Upper Price in Range Category | $ 25.75 | |
Options Outstanding, Number of Shares | 112,085 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 10 months | |
Options Outstanding, Weighted Average Exercise Price | $ 25.75 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 0 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 0 years | |
Options Exercisable, Weighted Average Exercise Price | $ 0 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation (Sum60
Stock-Based Compensation (Summary of Non-Vested Restricted Stock Activity) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |
Shares Outstanding, Beginning of Period | shares | 396,518 |
Shares, Granted | shares | 32,408 |
Shares, Vested | shares | (109,517) |
Shares, Forfeited | shares | (12,185) |
Shares Outstanding, End of Period | shares | 307,224 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 16.07 |
Weighted Average Grant-Date Fair Value, Granted | 24.92 |
Weighted Average Grant-Date Fair Value, Vested | 15.95 |
Weighted Average Grant-Date Fair Value, Forfeited | 15.86 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ 17.05 |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |
Risk-free interest rate | 1.82% |
Expected volatility | 34.62% |
Dividend yield | 2.17% |
Performance-Based and Market-Based RSUs [Member] | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |
Shares Outstanding, Beginning of Period | shares | 120,000 |
Shares, Granted | shares | 71,032 |
Shares, Forfeited | shares | (7,934) |
Shares Outstanding, End of Period | shares | 183,098 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 9.47 |
Weighted Average Grant-Date Fair Value, Granted | 23.65 |
Weighted Average Grant-Date Fair Value, Forfeited | 13.44 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | 14.8 |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |
Grant date stock price | $ 25.75 |
Risk-free interest rate | 1.72% |
Expected volatility | 33.42% |
Dividend yield | 0.00% |
Service-Based RSUs [Member] | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | |
Shares Outstanding, Beginning of Period | shares | 0 |
Shares, Granted | shares | 29,504 |
Shares, Forfeited | shares | (967) |
Shares Outstanding, End of Period | shares | 28,537 |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 0 |
Weighted Average Grant-Date Fair Value, Granted | 25.75 |
Weighted Average Grant-Date Fair Value, Forfeited | 25.75 |
Weighted Average Grant-Date Fair Value, Outstanding at End of Period | $ 25.75 |
Subsequent Events (Narratives)(
Subsequent Events (Narratives)(Details) $ / shares in Units, $ in Thousands | Jul. 27, 2017USD ($)Number$ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | |||
Cash dividends declared | $ 3,552 | $ 3,495 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Cash dividends declared per share | $ / shares | $ 0.14 | ||
Cash dividends declared | $ 1,800 | ||
Cash dividend declared on common stock, date declared | Jul. 27, 2017 | ||
Cash dividend declared on common stock, payable date | Aug. 17, 2017 | ||
Cash dividend declared on common stock, date of record | Aug. 7, 2017 | ||
Number of consecutive quartely cash dividends declared. | Number | 24 |