Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Sep. 30, 2019 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 0001260968 | |
Entity current reporting status | Yes | |
Entity filer category | Accelerated Filer | |
Entity registrant name | MARLIN BUSINESS SERVICES CORP. | |
Entity common stock shares outstanding | 12,154,555 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 5,929,000 | $ 5,088,000 |
Interest-earning deposits with banks | 126,532,000 | 92,068,000 |
Total cash and cash equivalents | 132,461,000 | 97,156,000 |
Time deposits with banks | 14,919,000 | 9,659,000 |
Restricted interest-earning deposits (includes $7.6 million and $10.0 million at September 30, 2019 and December 31, 2018, respectively related to consolidated VIEs) | 7,576,000 | 14,045,000 |
Investment securities (amortized cost of $10.2 million and $11.2 million at September 30, 2019 and December 31, 2018, respectively) | 10,222,000 | 10,956,000 |
Net investment in leases and loans [abstract] | ||
Leases | 456,528,000 | 489,299,000 |
Loans | 597,181,000 | 527,541,000 |
Net investment in leases and loans, excluding allowance for credit losses (includes $91.9 million and $150.2 million at September 30, 2019 and December 31, 2018, respectively, related to consolidated VIEs) | 1,053,709,000 | 1,016,840,000 |
Allowance for Credit Losses | (19,211,000) | (16,100,000) |
Total net investment in leases and loans | 1,034,498,000 | 1,000,740,000 |
Intangible assets | 7,690,000 | 7,912,000 |
Goodwill | 6,735,000 | 7,360,000 |
Operating lease right-of-use assets | 9,071,000 | 0 |
Property and equipment, net | 6,266,000 | 4,317,000 |
Property tax receivable, net of allowance | 5,889,000 | 5,245,000 |
Other assets | 12,089,000 | 9,656,000 |
Total assets | 1,247,416,000 | 1,167,046,000 |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Deposits | 869,257,000 | 755,776,000 |
Long-term borrowings related to consolidated VIEs | 91,739,000 | 150,055,000 |
Operating lease liabilities | 9,745,000 | 0 |
Other liabilities: | ||
Sales and property taxes payable | 6,104,000 | 3,775,000 |
Accounts payable and accrued expenses | 32,295,000 | 36,369,000 |
Net deferred income tax liability | 29,489,000 | 22,560,000 |
Total liabilities | 1,038,629,000 | 968,535,000 |
Commitments and contingencies (Note 10) | ||
Stockholders equity: | ||
Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common Stock, $0.01 par value; 75,000,000 shares authorized; 12,154,661 and 12,367,724 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 122,000 | 124,000 |
Additional paid-in capital | 80,228,000 | 83,498,000 |
Stock subscription receivable | (2,000) | (2,000) |
Accumulated other comprehensive income (loss) | 89,000 | (44,000) |
Retained earnings | 128,350,000 | 114,935,000 |
Total stockholders equity | 208,787,000 | 198,511,000 |
Total liabilities and stockholders equity | $ 1,247,416,000 | $ 1,167,046,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Amortized cost, investment securities | $ 10,160 | $ 11,194 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock - par or stated value | $ 0.01 | $ 0.01 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 12,154,661 | 12,367,724 |
Common stock shares outstanding | 12,154,661 | 12,367,724 |
Variable Interest Entity [Line Items] | ||
Restricted interest-earning deposits with banks | $ 7,576 | $ 14,045 |
Net investment in leases and loans, excluding allowance for credit losses | 1,053,709 | 1,016,840 |
Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Restricted interest-earning deposits with banks | 7,600 | 10,000 |
Net investment in leases and loans, excluding allowance for credit losses | $ 91,900 | $ 150,200 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
Interest income | $ 27,708 | $ 24,836 | $ 80,673 | $ 72,079 |
Fee income | 3,869 | 3,930 | 11,418 | 11,765 |
Interest and fee income | 31,577 | 28,766 | 92,091 | 83,844 |
Interest expense | 6,561 | 4,955 | 18,931 | 12,065 |
Net interest and fee income | 25,016 | 23,811 | 73,160 | 71,779 |
Provision for credit losses | 7,662 | 4,893 | 17,781 | 13,761 |
Net interest and fee income after provision for credit losses | 17,354 | 18,918 | 55,379 | 58,018 |
Non-interest income: | ||||
Insurance premiums written and earned | 2,230 | 2,047 | 6,538 | 5,979 |
Other income | 8,132 | 2,401 | 23,973 | 8,330 |
Total non-interest income | 10,362 | 4,448 | 30,511 | 14,309 |
Non-interest expense: | ||||
Salaries and benefits | 10,897 | 10,292 | 34,817 | 29,842 |
General and administrative | 6,092 | 5,445 | 25,514 | 18,465 |
Non-interest expense | 16,989 | 15,737 | 60,331 | 48,307 |
Income before income taxes | 10,727 | 7,629 | 25,559 | 24,020 |
Income tax expense | 3,281 | 1,723 | 6,857 | 5,462 |
Net income | $ 7,446 | $ 5,906 | $ 18,702 | $ 18,558 |
Basic earnings per share | $ 0.61 | $ 0.48 | $ 1.52 | $ 1.49 |
Diluted earnings per share | $ 0.6 | $ 0.47 | $ 1.51 | $ 1.49 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive Income | ||||
Net income | $ 7,446 | $ 5,906 | $ 18,702 | $ 18,558 |
Other Comprehensive Income (Loss) | ||||
Reclassification due to adoption of ASU 2016-01, ASU 2018-02 and ASU 2018-03 | 0 | 0 | 0 | 107 |
Increase (decrease) in fair value of securities available for sale | 55 | (102) | 179 | (148) |
Tax effect | (14) | 26 | (46) | (12) |
Total other comprehensive income (loss) | 41 | (76) | 133 | (53) |
Comprehensive Income | $ 7,487 | $ 5,830 | $ 18,835 | $ 18,505 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Stock Subscription Receivable [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | ||
Balance at Dec. 31, 2017 | $ 179,649,000 | $ 124,000 | $ 82,588,000 | $ (2,000) | $ (96,000) | $ 97,035,000 | ||
Repurchase of common stock | (1,000,000) | 0 | (1,000,000) | 0 | 0 | 0 | ||
Stock-based compensation recognized | 921,000 | 0 | 921,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | (59,000) | 0 | 0 | 0 | (59,000) | 0 | ||
Net income | 6,185,000 | 0 | 0 | 0 | 0 | 6,185,000 | ||
Impact of adopting of new accounting standards | 0 | 0 | 0 | 0 | 57,000 | [1] | (57,000) | [1] |
Cash dividends paid ($0.14 per share) | (1,769,000) | 0 | 0 | 0 | 0 | (1,769,000) | ||
Balance at Mar. 31, 2018 | $ 183,927,000 | $ 124,000 | 82,509,000 | (2,000) | (98,000) | 101,394,000 | ||
Balance, Shares at Dec. 31, 2017 | 12,449,458 | 12,449,458 | ||||||
Repurchase of common stock, shares | (37,026) | (37,026) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 6,065 | 6,065 | ||||||
Balance, Shares at Mar. 31, 2018 | 12,418,497 | 12,418,497 | ||||||
Balance at Dec. 31, 2017 | $ 179,649,000 | $ 124,000 | 82,588,000 | (2,000) | (96,000) | 97,035,000 | ||
Stock-based compensation recognized | 2,600,000 | |||||||
Net income | 18,558,000 | |||||||
Balance at Sep. 30, 2018 | $ 193,543,000 | $ 124,000 | 83,317,000 | (2,000) | (149,000) | 110,253,000 | ||
Balance, Shares at Dec. 31, 2017 | 12,449,458 | 12,449,458 | ||||||
Balance, Shares at Sep. 30, 2018 | 12,400,465 | 12,400,465 | ||||||
Balance at Mar. 31, 2018 | $ 183,927,000 | $ 124,000 | 82,509,000 | (2,000) | (98,000) | 101,394,000 | ||
Issuance of common stock | 211,000 | 0 | 211,000 | 0 | 0 | 0 | ||
Repurchase of common stock | (32,000) | 0 | (32,000) | 0 | 0 | 0 | ||
Exercise of stock options | 23,000 | 0 | 23,000 | 0 | 0 | 0 | ||
Stock-based compensation recognized | 763,000 | 0 | 763,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | 25,000 | 0 | 0 | 0 | 25,000 | 0 | ||
Net income | 6,467,000 | 0 | 0 | 0 | 0 | 6,467,000 | ||
Cash dividends paid ($0.14 per share) | (1,742,000) | 0 | 0 | 0 | 0 | (1,742,000) | ||
Balance at Jun. 30, 2018 | $ 189,642,000 | $ 124,000 | 83,474,000 | (2,000) | (73,000) | 106,119,000 | ||
Balance, Shares at Mar. 31, 2018 | 12,418,497 | 12,418,497 | ||||||
Issuance of common stock, shares | 9,101 | 9,101 | ||||||
Repurchase of common stock, shares | (1,121) | (1,121) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 11,545 | 11,545 | ||||||
Exercise of stock options, shares | 909 | 909 | ||||||
Balance, Shares at Jun. 30, 2018 | 12,438,931 | 12,438,931 | ||||||
Repurchase of common stock | $ (1,067,000) | $ 0 | (1,067,000) | 0 | 0 | 0 | ||
Stock-based compensation recognized | 910,000 | 0 | 910,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | (76,000) | 0 | 0 | 0 | (76,000) | 0 | ||
Net income | 5,906,000 | 0 | 0 | 0 | 0 | 5,906,000 | ||
Cash dividends paid ($0.14 per share) | (1,772,000) | 0 | 0 | 0 | 0 | (1,772,000) | ||
Balance at Sep. 30, 2018 | $ 193,543,000 | $ 124,000 | 83,317,000 | (2,000) | (149,000) | 110,253,000 | ||
Repurchase of common stock, shares | (37,566) | (37,566) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 900 | 900 | ||||||
Balance, Shares at Sep. 30, 2018 | 12,400,465 | 12,400,465 | ||||||
Balance at Dec. 31, 2018 | $ 198,511,000 | $ 124,000 | 83,498,000 | (2,000) | (44,000) | 114,935,000 | ||
Repurchase of common stock | (1,145,000) | (1,000) | (1,144,000) | 0 | 0 | 0 | ||
Stock-based compensation recognized | 861,000 | 0 | 861,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | 40,000 | 0 | 0 | 0 | 40,000 | 0 | ||
Net income | 5,141,000 | 0 | 0 | 0 | 0 | 5,141,000 | ||
Cash dividends paid ($0.14 per share) | (1,758,000) | 0 | 0 | 0 | 0 | (1,758,000) | ||
Balance at Mar. 31, 2019 | $ 201,650,000 | $ 123,000 | 83,215,000 | (2,000) | (4,000) | 118,318,000 | ||
Balance, Shares at Dec. 31, 2018 | 12,367,724 | |||||||
Repurchase of common stock, shares | (48,857) | (48,857,000) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 30,209 | 30,209 | ||||||
Balance, Shares at Mar. 31, 2019 | 12,349,076 | 12,349,076 | ||||||
Balance at Dec. 31, 2018 | $ 198,511,000 | $ 124,000 | 83,498,000 | (2,000) | (44,000) | 114,935,000 | ||
Stock-based compensation recognized | 2,800,000 | |||||||
Net income | 18,702,000 | |||||||
Balance at Sep. 30, 2019 | $ 208,787,000 | $ 122,000 | 80,228,000 | (2,000) | 89,000 | 128,350,000 | ||
Balance, Shares at Dec. 31, 2018 | 12,367,724 | |||||||
Exercise of stock options, shares | 0 | |||||||
Balance, Shares at Sep. 30, 2019 | 12,154,661 | 12,154,661 | ||||||
Balance at Mar. 31, 2019 | $ 201,650,000 | $ 123,000 | 83,215,000 | (2,000) | (4,000) | 118,318,000 | ||
Issuance of common stock | 240,000 | 0 | 240,000 | 0 | 0 | 0 | ||
Repurchase of common stock | (1,719,000) | 0 | (1,719,000) | 0 | 0 | 0 | ||
Stock-based compensation recognized | 990,000 | 0 | 990,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | 52,000 | 0 | 0 | 0 | 52,000 | 0 | ||
Net income | 6,115,000 | 0 | 0 | 0 | 0 | 6,115,000 | ||
Cash dividends paid ($0.14 per share) | (1,774,000) | 0 | 0 | 0 | 0 | (1,774,000) | ||
Balance at Jun. 30, 2019 | $ 205,554,000 | $ 123,000 | 82,726,000 | (2,000) | 48,000 | 122,659,000 | ||
Balance, Shares at Mar. 31, 2019 | 12,349,076 | 12,349,076 | ||||||
Issuance of common stock, shares | 10,298 | 10,298 | ||||||
Repurchase of common stock, shares | (73,360) | (73,360) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | (450) | (450) | ||||||
Balance, Shares at Jun. 30, 2019 | 12,285,564 | 12,285,564 | ||||||
Repurchase of common stock | $ (3,393,000) | $ (2,000) | (3,391,000) | 0 | 0 | 0 | ||
Stock issued in connection with restricted stock and RSUs, net of forfeitures | 0 | (1,000) | 1,000 | 0 | 0 | 0 | ||
Stock-based compensation recognized | 894,000 | 0 | 894,000 | 0 | 0 | 0 | ||
Net change in unrealized gain/loss on securities available for sale, net of tax | 41,000 | 0 | 0 | 0 | 41,000 | 0 | ||
Net income | 7,446,000 | 0 | 0 | 0 | 0 | 7,446,000 | ||
Cash dividends paid ($0.14 per share) | (1,755,000) | 0 | 0 | 0 | 0 | (1,755,000) | ||
Balance at Sep. 30, 2019 | $ 208,787,000 | $ 122,000 | $ 80,228,000 | $ (2,000) | $ 89,000 | $ 128,350,000 | ||
Repurchase of common stock, shares | (147,383) | (147,383) | ||||||
Stock issued in connection with restricted, stock and RSU's, net of forfeitures | 16,480 | 16,480 | ||||||
Balance, Shares at Sep. 30, 2019 | 12,154,661 | 12,154,661 | ||||||
[1] | (1) Represents the impact of Accounting Standards Update ("ASU") 2016-01, ASU 2018-02 and ASU 2018-03 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statements Of Stockholders Equity [Abstract] | ||||||
Cash dividends declared and paid per share | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||||
Net income | $ 7,446 | $ 5,141 | $ 5,906 | $ 6,185 | $ 18,702 | $ 18,558 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 3,632 | 2,060 | |||||
Stock-based compensation | 2,745 | 2,594 | |||||
Change in fair value of equity securities | (27) | 27 | (121) | 108 | |||
Provision for credit losses | 7,662 | 4,893 | 17,781 | 13,761 | $ 19,522 | ||
Net deferred income taxes | 6,883 | 1,028 | |||||
Amortization of deferred initial direct costs and fees | 11,008 | 9,915 | |||||
Loss on equipment disposed | 1,331 | 893 | |||||
Gain on leases sold | (6,456) | (2,243) | (13,400) | (4,859) | |||
Leases originated for sale | (46,038) | (5,722) | |||||
Proceeds from sale of leases originated for sale | 47,771 | 5,848 | |||||
Operating lease liability payments | (303) | 0 | |||||
Effect of changes in other operating items: | |||||||
Other assets | (3,465) | 15,432 | |||||
Other liabilities | (1,982) | 1,367 | |||||
Net cash provided by operating activities | 44,544 | 60,983 | |||||
Cash flows from investing activities: | |||||||
Net change in time deposits with banks | (5,260) | (1,300) | |||||
Funds used to originate leases and loans | (594,831) | (515,050) | |||||
Principal collections on leases and loans | 380,345 | 358,765 | |||||
Proceeds from sale of leases originated for investment | 161,566 | 79,868 | |||||
Security deposits collected, net of refunds | (175) | (210) | |||||
Proceeds from the sale of equipment | 2,065 | 2,437 | |||||
Acquisitions of property and equipment | (3,492) | (979) | |||||
Business combinations | 0 | (10,000) | |||||
Principle payments received on securities available for sale | 1,015 | 277 | |||||
Net cash provided by (used in) investing activities | (58,767) | (86,192) | |||||
Cash flows from financing activities: | |||||||
Net change in deposits | 113,481 | (109,208) | |||||
Term securitization advances | 0 | 201,650 | |||||
Term securitization repayments | (58,887) | (27,131) | |||||
Business combinations earn-out consideration payments | (349) | 0 | |||||
Issuances of common stock | 240 | 211 | |||||
Repurchases of common stock | (6,257) | (2,099) | |||||
Dividends paid | (5,169) | (5,220) | |||||
Exercise of stock options | 0 | 23 | |||||
Debt issuance costs | 0 | (1,666) | |||||
Net cash provided by (used in) financing activities | 43,059 | 56,560 | |||||
Net increase in total cash, cash equivalents and restricted cash | 28,836 | 31,351 | |||||
Total cash, cash equivalents and restricted cash, beginning of period | $ 111,201 | $ 67,146 | 111,201 | 67,146 | 67,146 | ||
Total cash, cash equivalents and restricted cash, end of period | 140,037 | 98,497 | 140,037 | 98,497 | 111,201 | ||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest on deposits and borrowings | 17,610 | 11,266 | |||||
Net cash paid (refunds received) for income taxes | 2,736 | (8,052) | |||||
Leases transferred into held for sale from investment | 149,895 | 75,138 | |||||
Supplemental disclosures of non cash investing activities: | |||||||
Business combinations assets acquired | 146 | 3,376 | |||||
Lease and loan originations | 8,432 | 10,993 | |||||
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets | |||||||
Cash and Cash Equivalents | 132,461 | 88,448 | 132,461 | 88,448 | 97,156 | ||
Restricted Cash | 7,576 | 10,049 | 7,576 | 10,049 | 14,045 | ||
Total cash, cash equivalents and restricted cash, end of period | $ 140,037 | $ 98,497 | $ 140,037 | $ 98,497 | $ 111,201 |
The Company
The Company | 9 Months Ended |
Sep. 30, 2019 | |
The Company [Abstract] | |
The company | NOTE 1 – The Company 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 (includi ng Commercial Vehicle Group (“CVG”) assets which now incorporates Transportation Finance Group (“TFG”)) and working capital loans. The Company was incorporated in the Commonwealth of Pennsylvania 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 Leasing Corporation (“MLC”) and Marlin Business Bank (“MBB”) for our small business 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 Insura nce Corporation (“FDIC”)-insured deposits. On September 19, 2018, the Company completed the acquisition of Fleet Financing Resources (“FFR”) , a leading provider of equipment finance credit products specializing in the leasing and financing of both new a nd used commercial vehicles, with an emphasis on livery equipment and other types of commercial vehicles used by small businesses. This acquisition is consistent with our strategy of augmenting organic growth with strategic acquisitions that extend our ex isting equipment finance business into new and attractive markets. The Company paid $10.0 million in cash for FFR and incurred an immaterial amount of acquisition-related cost. In addition, if FFR generates volume of up to $542 million from the closing date through September 30, 2026, we have agreed to pay the seller up to an additional $5.5 million in cash in earn-out consideration. This earn-out consideration will be calculated quarterly based on a sliding scale of percentage of revenue volume that inc reases as successively greater tiers of volume are attained, and if the maximum earn-out consideration is earned, the total consideration paid for FFR will be $15.5 million. The earn-out will be remeasured to fair value at each reporting period , and the di fference between the revised fair value estimate and the earn-out liability will be recorded in earnings. The Company completed the purchase price allocation in the first quarter of 2019 with $5.6 million recorded to goodwill and $7.6 million recorded to i ntangible assets for vendor relationships and lender relationships, offset by a contingent consideration liability of $3.2 million representing the estimated fair value of the earn-out. See Note 7 for additional information regarding the identified intang ible assets acquired. The acquisition has been accounted for using the acquisition method of accounting . The unaudited pro forma financial information disclosed in the following sentence is for informational purposes only and is not indicative of future op erations or results. If the acquisition had occurred at the beginning of 2018, the Company’s Interest and fee income, Non-interest income and net income for the nine - month period ending September 30, 2018 , would have been approximately $87.9 million, $14 .5 million and $ 1 9 . 6 million, respectively . References to the “Company,” “Marlin,” “Registrant,” “we,” “us” and “our” herein refer to Marlin Business Services Corp. and its wholly-owned subsidiaries, unless the context otherwise requires. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – Summary of Significant Accounting Policies Basis of financial statement presentation. The unaudited 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 simil ar economic characteristics, share the same leasing and loan portfolio and have one product offering. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements present th e Company’s financial position at September 30, 2019 and the results of operations for the three- and nine- month periods ended September 30, 2019 and 2018 , and cash flows for the nine -month periods ended September 30, 2019 and 2018 . In Managemen t’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 8, 2019 . The consolidated results of operations for the three- and nine- month periods ended September 30, 2019 and 2018 and the consolidated statements of cash flows for the nine -month periods ended September 30, 2019 and 2018 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. There have been no sig nificant changes to our Significant Accounting P olicies as described in our 2018 Annual Report on Form 10-K other t han the adoption of ASU 2016-02 as described below . Recently Issued Accounting Standards . Fair Value. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation process for Level 3 fair value measurements. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive inco me. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the C ompany . Intangibles - Goodwill . In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract to clarify the accounting treatment for implementation costs for cloud computing arrangements . The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the C ompany . Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the methodology for evaluating impairment of most financial instruments. The ASU replaces the currently used incurred loss model with a forward-looking current expected loss model which will generally result in more timely recognition of losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements , which provides guidance on accounting for credit losses on accrued interest receivable balances and guidance on including recoveries when estimating the a llowance. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, which allows entities with an option to elect fair value for certain instruments upon adoption of Topic 326. The Company will adopt the ASU effective January 1, 2020, and will apply any changes resulting from the application of the new standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). We are currently working with a third-party vendor on model development and validation and are working through other implementation steps including updating our allowance governance processes and related internal controls. Our cross-functional implementation team meets on a regular basis to oversee activities and monitor progress. The Company expects that the new guidance will result in an increase in its allowance for credit losses because the allowance will be required to cover credit losses over the full remaining expected life of its portfolio of leases and loans, rather than the incurred loss model under current U.S. GAAP. H owever, our methodologies are in the process of being finalized so the magnitude of the adjustment and the overall impact of the new standard on the Company’s financial condition or results of operations cannot yet be determined . Recently Adopted Accounting Standards . Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet. The ASU required lessees to recognize a right-of-use (ROU) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation for leases with terms of more than twelve months. Accounting by lessors remain ed largely unchanged from current U.S. GAAP. The ASU also require d expanded quantitative and qualitative disclosures for both lessees and lessors. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provided entities with an additional (and o ptional) transition method in which the entity applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company applied the new transition method upon adoption . In December 2018, t he FASB issued ASU 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors , which clarif ied the treatment of sales taxes and other taxes collected from lessees, lessor costs paid directly by lessees, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements , which aligned the new lease guidance with the existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers. It also clarified an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the board’s new lease accounting standard. The Company adopted the guidance in these ASUs on January 1, 2019. As a result , the Company recorded right-of-use assets of $ 9 . 1 million and lease liabilities of $ 9.1 million. At January 1, 2019, there was no adjustment to opening retained earnings. The Company, as a l essor, is record ing property tax income and expense associated with leasing on a gross basis in the Consolidated Statements of Operations. The property tax income and expense are recorded in the same period as earned and incurred, and the Company recog nizes a provision for uncollectible property tax revenue as contra-revenue when a loss is probable and collectability is not reasonably assured. In addition, ASU 2016-02 limits the types of direct lease origination costs that are able to be deferred, whic h will reduce prospective deferred lease origination costs on a unit basis. |
Non-Interest Income
Non-Interest Income | 9 Months Ended |
Sep. 30, 2019 | |
Noninterest Income [Abstract] | |
Noninterest Income [Text Block] | NOTE 3 – Non-Interest Income The Company earns revenue including interest and fees from customers as well as revenues from non-customer s. The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of the contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time related to the specific obligation . Revenue is recognized as the amount of consideration to which t he Company expects to be entitled in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the exte nt it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. Generally, the variability relating to the consideration is explicitly stated in the contracts, but may also arise from the Company’s customer business practice, for example, waiving certain fees. The Company’s contracts generally do not contain terms that require significant judg ment to determine the variability impacting the transaction price . The majority of the Company’s revenue-generating transactions are not subject to ASC 606, Revenue from Contracts with Customers , including revenue generated from financial instruments, such as our leases and loans, investment securities, as well as revenue related to our gain on sale of leases and loans, servicing income, and insurance premiums written and earned. Revenue-generating activities that the Company accounts for under ASC 606, which are presented in our income statements as components of non-int erest income, include certain fees such as property tax administrative fees on leases, ACH payment fees, insurance policy fees outside of the scope of ASC 944, broker fees earned for referring leases and loans to other funding partners, and other fees. The Company has included the following table regarding the Company’s non-interest income for the periods presented. Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Insurance premiums written and earned $ 2,230 $ 2,047 $ 6,538 $ 5,979 Gain on sale of leases and loans 6,456 2,243 13,400 4,859 Servicing income 395 (769) 1,021 404 Property tax income (42) — 5,680 — Net gains (losses) recognized during the period on equity securities 27 (27) 121 (108) Non-interest income within the scope of other GAAP topics 9,066 3,494 26,760 11,134 Property tax administrative fees on leases 272 176 801 557 ACH payment fees 78 84 238 253 Insurance policy fees 688 513 2,021 1,538 Referral fees 129 118 448 611 Other 129 63 243 216 Non-interest income from contracts with customers 1,296 954 3,751 3,175 Total non-interest income $ 10,362 $ 4,448 $ 30,511 $ 14,309 |
Investments securities
Investments securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment securities [Abstract] | |
Investment securities [Text Block] | NOTE 4 – Investment Securities Debt Securities, Available for Sale 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 (OT TI ). Equity securities are recorded at fair value and c hanges in fair value of equity securities are recorded through Other Income in the Con solidated Statements of Operations. The amortized cost and estimated fair value of investments, with gross unrealized gains and losses, were as follows as of September 30, 2019 and December 31, 2018 : September 30, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Debt Securities, Available for Sale: Asset-backed securities ("ABS") $ 4,409 $ 42 $ (18) $ 4,433 Municipal securities 2,058 119 — 2,177 Equity Securities Mutual fund 3,693 — (81) 3,612 Total investment securities $ 10,160 $ 161 $ (99) $ 10,222 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Debt Securities, Available for Sale: ABS $ 4,934 $ 20 $ (39) $ 4,915 Municipal securities 2,629 3 (20) 2,612 Equity Securities Mutual fund 3,631 — (202) 3,429 Total investment securities $ 11,194 $ 23 $ (261) $ 10,956 The Company had $ 3.6 million and $ 3.4 million in equity securities recorded at fair value at September 30, 2019 and December 31, 2018 , respectively. The following schedule is a summary of fair value changes recognized in net income on equity securities during the three- and nine- months ended September 30, 2019 and September 30, 2018 : Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Net gains (losses) recognized during the period on equity securities $ 27 $ (27) $ 121 $ (108) Less: Net gains (losses) recognized during the period on equity securities sold during the period — — — — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 27 $ (27) $ 121 $ (108) The following tables present the aggregate amount of unrealized losses on securities in the Company’s investment securities classified according to the amount of time those securities have been in a continuous loss position as of September 30, 2019 and December 31, 2018 : September 30, 2019 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) Debt Securities, Available for Sale: ABS $ — $ — $ (18) $ 1,283 $ (18) $ 1,283 Equity Securities Mutual fund — — (81) 3,612 (81) 3,612 Total investment securities $ — $ — $ (99) $ 4,895 $ (99) $ 4,895 December 31, 2018 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) Debt Securities, Available for Sale: ABS $ — $ — $ (39) $ 3,340 $ (39) $ 3,340 Municipal securities (16) 1,436 (4) 408 (20) 1,844 Equity Securities Mutual fund — — (202) 3,429 (202) 3,429 Total investment securities $ (16) $ 1,436 $ (245) $ 7,177 $ (261) $ 8,613 The following table presents the amortized cost, fair value, and weighted average yield of investments in debt securities available for sale at September 30, 2019 , 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 or without penalties: September 30, 2019 1 Year 1-5 5-10 After 10 or Less Years Years Years Total (Dollars in thousands) Amortized Cost: Debt Securities, Available for Sale: ABS $ — $ 2,618 $ 1,799 $ — $ 4,417 Municipal securities — 422 1,636 — 2,058 Total debt securities available for sale $ — $ 3,040 $ 3,435 $ — $ 6,475 Estimated fair value $ — $ 3,080 $ 3,537 $ — $ 6,617 Weighted-average yield, GAAP basis — 2.31% 2.85% — 2.60% OTTI The Company evaluates its debt securities in an unrealized loss position for OTTI on at least a quarterly basis. T he Company did not recognize any OTTI in earnings related to its investment securities for the nine months ended September 30, 2019 and September 30, 2018 . |
Net Investment in Leases and Lo
Net Investment in Leases and Loans | 9 Months Ended |
Sep. 30, 2019 | |
Net Investment in Leases and Loans [Abstract] | |
Net Investment in Leases and Loans | NOTE 5 – Net Investment in Leases and Loans The Company’s lease portfolio is comprised entirely of sales type leases whose terms generally range from 36 to 72 months. At the time of application, small business customers can select a purchase option that will allow them to purchase the equipment at the end of the contract term for either one dollar, the fair market value of the equipment or a specified percentage of the original equipment cost. Alternatively, the customers can continue leasing or return the equipment. We estimate the residual value of the equipment which is recorded as an asset on our balance sheet. Realization of residual values depends on numerous fact ors including: the general market conditions at the time of expiration of the lease; the customer’s election to enter into a renewal period; the cost of comparable new equipment; the obsolescence of the leased equipment; any unusual or excessive wear and t ear on or damage to the equipment; the effect of any additional or amended government regulations; and the foreclosure by a secured party of our interest in a defaulted lease. The Company’s loan portfolio is comprised of Working Capital loans, loans under the Community Reinvestment Act of 1977 (CRA), and Equipment loans. Working Capital loans generally have 6 to 24 month terms with repayment terms that can vary from daily, weekly or monthly . Equipment loans are comprised of Equipment Finance Agreements, Installment P urchase Agreements, and other loans. Net investment in leases and loans consists of the following: September 30, 2019 December 31, 2018 (Dollars in thousands) Minimum lease payments receivable $ 492,793 $ 530,867 Estimated residual value of equipment 29,122 27,646 Unearned lease income, net of initial direct costs and fees deferred (64,726) (68,376) Security deposits (661) (838) Total leases 456,528 489,299 Commercial loans, net of origination costs and fees deferred Working Capital Loans 55,794 36,856 CRA (1) 1,454 1,466 Equipment loans (2) 463,519 423,168 CVG 76,414 66,051 Total commercial loans 597,181 527,541 Allowance for credit losses (19,211) (16,100) $ 1,034,498 $ 1,000,740 ________________________ CRA loans are comprised of loans originated under a line of credit to satisfy its obligations under the Community Reinvestment Act of 1977. Equipment loans are comprised of Equipment Finance Agreements, Installment Purchase Agreements and other loans. At September 30, 2019 , $ 91.9 million in net investment in leases were pledged as collateral for the Company’s outstanding asset-backed securitization balance and $ 35.4 million in net investment in leases were pledged as collateral for the secured borrowing capacity at the Federal Reserve Discount Window. The amount of deferred i nitial direct costs and origination costs net of deferred fees deferred were $ 20.8 million and $ 20.5 million as of September 30, 2019 and December 31, 2018 , respectively. Initi al direct costs are netted in unearned income and are amortized to income using the effective interest method. ASU 2016-02 limited the types of costs that qualify for deferral as initial direct costs for leases, which reduced the deferral of unit lease cos ts and resulted in an increase in current period expense. Origination costs are netted in commercial loans and are amortized to income using the effective interest method. At September 30, 2019 and December 31, 2018 , $23.7 million and $23.6 milli on, respectively, of the estimated residual value of equipment retained on our Consolidated Balance Sheets was related to copiers. Maturities of lease receivable s under lease contracts and the amortization of unearned lease income, including initial dir ect costs and fees deferred, were as follows as of September 30, 2019 : Minimum Lease Payments Net Income Receivable (1) Amortization (2) (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 55,633 $ 9,916 2020 182,135 28,154 2021 125,925 15,651 2022 76,516 7,490 2023 39,218 2,792 Thereafter 13,366 723 $ 492,793 $ 64,726 ________________________ Represents the undiscounted cash flows of the lease payments receivable. Represents the difference between the undiscounted cash flows and the discounted cash flows. The lease income recognized wa s as follows : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Selling Profit (1) $ — $ — $ — $ — Interest Income $ 10,384 $ 11,992 $ 32,075 $ 37,470 ________________________ The Company does not derive income from the sale of the equipment. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 6 – 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 tables which follow provide activity in the allowance for credit losses and asset quality statistics. Three Months Ended September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,940 $ - $ 13,416 $ 1,421 $ 16,777 Charge-offs (417) - (5,023) (526) (5,966) Recoveries 227 - 457 54 738 Net charge-offs (190) - (4,566) (472) (5,228) Provision for credit losses 346 - 6,799 517 7,662 Allowance for credit losses, end of period $ 2,096 $ - $ 15,649 $ 1,466 $ 19,211 Ending balance: individually evaluated for impairment (3) $ - $ - $ 937 $ - $ 937 Ending balance: collectively evaluated for impairment $ 2,096 $ - $ 14,712 $ 1,466 $ 18,274 Ending lease or loan balance (1) $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 Ending balance: individually evaluated for impairment (3) $ - $ - $ 1,891 $ - $ 1,891 Ending balance: collectively evaluated for impairment $ 55,122 $ 1,454 $ 890,120 $ 84,281 $ 1,030,977 Three Months Ended September 30, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,334 $ - $ 13,012 $ 1,224 $ 15,570 Charge-offs (361) - (4,502) (202) (5,065) Recoveries 9 - 491 19 519 Net charge-offs (352) - (4,011) (183) (4,546) Provision for credit losses 437 - 4,230 226 4,893 Allowance for credit losses, end of period $ 1,419 $ - $ 13,231 $ 1,267 $ 15,917 Ending lease or loan balance (1,4) $ 33,631 $ 1,437 $ 872,027 $ 59,564 $ 966,659 Nine Months Ended September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,467 $ - $ 13,531 $ 1,102 $ 16,100 Charge-offs (1,692) - (13,863) (1,200) (16,755) Recoveries 298 - 1,671 116 2,085 Net charge-offs (1,394) - (12,192) (1,084) (14,670) Provision for credit losses 2,023 - 14,310 1,448 17,781 Allowance for credit losses, end of period $ 2,096 $ - $ 15,649 $ 1,466 $ 19,211 Ending balance: individually evaluated for impairment (3) $ - $ - $ 937 $ - $ 937 Ending balance: collectively evaluated for impairment $ 2,096 $ - $ 14,712 $ 1,466 $ 18,274 Ending lease or loan balance (1) $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 Ending balance: individually evaluated for impairment (3) $ - $ - $ 1,891 $ - $ 1,891 Ending balance: collectively evaluated for impairment $ 55,122 $ 1,454 $ 890,120 $ 84,281 $ 1,030,977 Nine Months Ended September 30, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Charge-offs (1,090) - (12,721) (601) (14,412) Recoveries 59 - 1,599 59 1,717 Net charge-offs (1,031) - (11,122) (542) (12,695) Provision for credit losses 1,414 - 11,690 657 13,761 Allowance for credit losses, end of period $ 1,419 $ - $ 13,231 $ 1,267 $ 15,917 Ending lease or loan balance (1,4) $ 33,631 $ 1,437 $ 872,027 $ 59,564 $ 966,659 Year ended December 31, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Charge-offs (1,537) - (18,149) (907) (20,593) Recoveries 60 - 2,199 61 2,320 Net charge-offs (1,477) - (15,950) (846) (18,273) Provision for credit losses 1,908 - 16,818 796 19,522 Allowance for credit losses, end of period $ 1,467 $ - $ 13,531 $ 1,102 $ 16,100 Ending lease or loan balance (1,4) $ 36,478 $ 1,466 $ 890,785 $ 67,654 $ 996,383 (1) 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. (2) Equipment Finance consists of Equipment Finance Agreements, Installment Pu rchase Agreements, and other leases and loans. (3) Our policy for estimating the allowance for credit losses includes analyzing specifically identified loans or leases separately from the pool, whenever such contracts are not expected to perform consisten t with the credit characteristics or the portfolio segment as a whole. In such cases, these loans or leases are analyzed for impairment under a separate quantitative analysis and a specific reserve established. In the three months ended September 30, 201 9, loans were individually evaluated for impairment related to fraudulent activities within a specific equipment dealer’s portfolio . (4) For the three and nine months ended September 30, 2018 and the year ended December 31, 2018 , all leases and loans were collectively evaluated. For the nine -month periods ended September 30, 2019 and September 30, 2018 , the Company sold $ 195.9 million of leases and loans from its portfolio for a gain on sale of $ 13.4 million and $ 78.1 million of leases and loans from its portfolio for a gain on sale of $ 4.8 million, respectively . For the year ended December 31, 2018 , the Company sold $ 139.0 million of leases and loans from its portfolio for a gain on sale of $ 8.4 million . Credit Quality Indicators The Company’s credit review process includes a risk c lassification of all leases and loans that includes pass, special mention, substandard, doubtful, and loss. The classification of a lease or loan may change based on changes in the creditworthiness of the borrower. The description of the risk classificatio ns are as follows: Pass: A lease or loan is classified as pass when payments are current and it is performing under the original contractual terms. Special Mention: A lease or loan is classified as special mention when the borrower exhibits potential credit weakness or a downward trend which, if not checked or corrected, will weaken the asset or inadequately protect the Company’s position. While potentially weak, the borrower is currently marginally acceptable; no loss of principal or interest is envisioned. Substandard: A lease or loan is classified as substandard when the borrower has a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt. A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, normal repayment from this borrower is in jeopardy, and there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Doubtful: A lease or loan is classified as doubtful when a borrower has all weaknesses inherent in a loan classified as substandard with the added provision that: (1) the weaknesses make collection of debt in full on the basis of currently existing facts, conditions and values highly questionable and improbable; (2) seriou s problems exist to the point where a partial loss of principal is likely; and (3) the possibility of loss is extremely high, but because of certain important, reasonably specific pending factors which may work to the advantage and strengthening of the ass ets, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens and additional refinancing plans. Loss: A lease or loan is classified as loss when uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather that i t is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. The Company charges-off the collateral or discounted cash flow deficiency on all loans on non-accrual status. In all cases, leases and loans are placed on non-accrual when 90 days past due or earlier if collection of principal or interest is considered doubtful. The following tables present the segments of the loan portfolio in which a formal risk weighting system is utilized summarized by the categories of “pass” and “special mention”, and the classified categories of “substandard”, “doubtful”, and “loss” within the Company’s risk rating system at September 30, 2019 and December 31, 2018 . The data within the tables reflect net investment, excluding deferred fees and cost and allowance : September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance CVG Total Pass $ 53,799 $ 1,454 $ 879,589 $ 82,831 $ 1,017,673 Special Mention 180 - 3,714 105 3,999 Substandard 403 - 3,803 572 4,778 Doubtful 713 - 3,142 311 4,166 Loss 27 - 1,763 462 2,252 Total $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 December 31, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance CVG Total Pass $ 35,793 $ 1,466 $ 879,275 $ 66,463 $ 982,997 Special Mention 47 - 4,373 146 4,566 Substandard 145 - 3,460 660 4,265 Doubtful 300 - 2,353 158 2,811 Loss 193 - 1,324 227 1,744 Total $ 36,478 $ 1,466 $ 890,785 $ 67,654 $ 996,383 Troubled debt restructurings are restructurings of leases and loans in which, due to the borrower's financial difficulties, a lender grants a concession that it would not otherwise consider for borrowers of similar credit quality. As of September 30, 2019 and December 31, 2018 , the Company did not have any t roubled debt restructurings. Loan Delinquencies and Non-A ccrual Leases and Loans Net investments in leases and loans are generally charged-off when they are contractually past due for 120 days or more. Income recognition is discontinued on leases or loans when a default on monthly payment exists for a period of 90 days or more. Income recognition resumes when a lease or loan becomes less than 90 days delinquent. At September 30, 2019 and December 31, 2018 , there were no finance receivables past due 90 days or more and still accruing. Working Capital Loans are generally placed in non-accrual status when they are 30 days past due and generally charged-off at 60 days past due . The loan is removed from non-accrual status on ce sufficient payments are made to bring the loan current and reviewed by management. At September 30, 2019 and December 31, 2018 , there were no Working Capital Loans past due 30 days or more and still accruing. Management further monitors the performance and credi t quality of the loan portfolio as determined by the length of time a recorded payment is due. The following tables provide information about delinquent and non-accrual leases and loans in the Company’s portfolio as of September 30, 2019 and December 31, 2018 30-59 60-89 >90 Days Days Days Total Total September 30, 2019 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Working Capital Loans $ 713 $ - $ 27 $ 740 $ 54,382 $ 55,122 $ 740 CRA - - - - 1,454 1,454 - Equipment Finance (1) 4,247 3,680 5,000 12,927 1,002,425 1,015,352 6,636 CVG 173 503 573 1,249 96,836 98,085 573 Total Leases and Loans (2) $ 5,133 $ 4,183 $ 5,600 $ 14,916 $ 1,155,097 $ 1,170,013 $ 7,949 30-59 60-89 >90 Days Days Days Total Total December 31, 2018 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Working Capital Loans $ 300 $ 51 $ 141 $ 492 $ 35,986 $ 36,478 $ 492 CRA - - - - 1,466 1,466 - Equipment Finance (1) 4,537 3,123 3,529 11,189 1,001,363 1,012,552 3,529 CVG 166 257 191 614 78,407 79,021 191 Total Leases and Loans (2) $ 5,003 $ 3,431 $ 3,861 $ 12,295 $ 1,117,222 $ 1,129,517 $ 4,212 (1 ) Equipment Finance consists of Equipment Finance Agreements, Installment Purchase Agreements, and other leases and loans. (2) Represents total minimum lease and loan payments receivable for Equ ipment Finance and CVG and as a percentage of principal outstanding for Working Capital Loans and CRA. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets [Text Block] | NOTE 7 - Goodwill and Intangible Assets Goodwill The Company’s goodwill balance of $7.4 million at December 31, 2018 included $1.2 million from the Company’s acquisition of Horizon Keystone Financial, an equipment company (‘ HKF ”), in January 2017 , and $6.2 million from the preliminary allocation of the pur chase price of the Company’s acquisition of FFR in September 2018. The Company completed the purchase price allocation in the first quarter of 2019 upon receiving clarification of certain outstanding matters and established a final goodwill valuation of $5 .6 million resulting in a goodwill reduction of $0.6 million in the first quarter of 2019. The goodwill balance represents the excess purchase price over the Company’s fair value of the assets acquired and is not amortizable but is deductible for tax purpo ses. Impairment testing will be performed in the fourth quarter of each year and more frequently as warranted in accordance with the applicable accounting guidance . The changes in the carrying amount of goodwill for the nine month period ended September 30, 2019 are as follows: (Dollars in thousands) Total Company Balance at December 31, 2018 $ 7,360 Changes (625) Balance at September 30, 2019 $ 6,735 Intangible assets 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. During the third quarter of 2018, in connection with the acquisition of FFR, the Company acquired certain definite-lived intangible assets with a total cost of $7.2 million based on a preliminary evaluation. The Company subsequently completed the purchase price allocation in the first quarter of 2019 and established a cost of $7.6 million for the acquired intangible assets and a weighted average amortization period of 10.8 years . The Company had no indefinite-lived intangible assets at September 30, 2019 . The following table presents de tails of the Company’s intangible assets as of September 30, 2019 : (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 to 10 years $ 1,630 $ 457 $ 1,173 Vendor relationships 11 years 7,290 809 6,481 Corporate trade name 7 years 60 24 36 $ 8,980 $ 1,290 $ 7,690 There was no impairment of these assets in the third quarter or nine months of 2019 or 2018 . Amortization related to the Company’s definite lived intangible assets was $ 0. 7 million and $ 0 .2 million for the nine -month periods ended September 30, 2019 and September 30, 2018 , respectively . The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) Remainder of 2019 $ 230 2020 798 2021 798 2022 798 2023 798 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | NOTE 8 – Other Assets Other assets are comprised of the following: September 30, December 31, 2019 2018 (Dollars in thousands) Accrued fees receivable $ 3,317 $ 3,354 Prepaid expenses 2,568 2,447 Income taxes receivable 1,223 — Federal Reserve Bank Stock 1,711 1,711 Other 3,270 2,144 $ 12,089 $ 9,656 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 9 – Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on our consolidated balance sheets. ROU assets and operating lease liabilities ar e recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, in order to determine the present value of future payments for office leases we use an inc remental borrowing rate based on the information available through real estate databases for similar locations and for the present value of future payments for equipment leases we use the average rate of our term note securitization which is collateralized by similar equipment. The ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payment s is recognized on a straight-line basis over the lease term. As of September 30, 2019 , the Company leases all six of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Salt Lake City, Utah; Portsmouth, N ew Hampshire; Highlands Ranch, Colorado; Corona, California; and Philadelphia, Pennsylvania. The Company has elected not to recognize ROU assets and lease liabilities for two office leases whose terms are twelve months or less and are considered short-te rm leases. Four of the office leases include options to extend for terms of three to ten years. These options have not been recognized as part of our ROU assets and lease liabilities as the Company is not reasonably certain to exercise these options. The Company has also entered into two leases for office equipment for which ROU assets and lease liabilities have been recognized. All the aforementioned leases have been accounted for as operating leases. The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in Thousands) 2019 2018 2019 2018 Operating lease cost $ 322 $ 283 $ 878 $ 842 Finance lease costs — 2 — 6 Short-term lease cost 207 — 323 — Total lease cost $ 529 $ 285 $ 1,201 $ 848 Supplemental information related to leases was as follows: Nine Months Ended (Dollars in thousands) September 30, 2019 Supplemental balance sheet information Operating lease right-of-use assets $ 9,071 Operating lease liabilities 9,745 Weighted average remaining lease term 11.3 Years Weighted average discount rate 3.30 % Supplemental cash flow information Operating cash flows for operating leases $ 303 Right-of-use assets obtained in exchange for lease obligations 9,071 Maturities of lease liabilities were as follows: Operating Leases Period Ending December 31, (Dollars in thousands) Remainder of 2019 $ 128 2020 1,281 2021 1,073 2022 984 2023 906 Thereafter 7,445 Total lease payments $ 11,817 Less: imputed interest (2,072) Total $ 9,745 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 10 – Commitments and Contingencies Legal and Regulatory 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 MBB meet its Community Reinvestment Act (“CRA”) obligations. Currently, MBB receives a range of approximately 0.8 % to 1.2 % participation in each f unded 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 o f 1977. At September 30, 2019 , MBB had an unfunded commitment of $ 0. 5 million for this activity. MBB’s one-year commitment to the CD FI will expire in September 2020 at which time the commitment may be renewed for another year based on the Company’s discretion. The Company is involved in legal proceedings, which include claims, litigation and suits arising in the ordinary course of business. In the opinion of management, these actions will not have a material effect on the Company’s consolidated financial posit ion, results of operations or cash flows. Banking institutions are subject to periodic reviews and examinations from banking regulators. In 2017, one of MBB’s regulatory agencies communicated findings in connection with the timing of certain aspects of pa yment application processes in effect prior to February 2016 related to the assessment of late fees. The Company agreed to pay restitution to customers in the amount $ 4.0 million to resolve this matter, and the Company established a liability for such amou nt in the first quarter of 2017. In the second quarter of 2019, the Company remitted the $ 4.0 million into a fund that will process the restitution and resolve its obligation for this matter. Income Taxes The Company and its subsidiaries are currently subject to audit by the IRS for tax years ended December 31, 2015 and December 31, 2017 . |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposits | NOTE 11 – 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 FD IC-insured money market deposit accounts (the “MMDA Product”) through participation in a partner bank’s insured savings account product. This brokered deposit product has a variable rate, no maturity date and is offered to the clients of the partner bank a nd recorded as a single deposit account at MBB. As of September 30, 2019 , money market deposit accounts totaled $ 19.7 million. As of September 30, 2019 , the scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 122,872 2020 331,407 2021 208,367 2022 108,362 2023 47,741 Thereafter 31,016 Total $ 849,765 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 September 30, 2019 was 2.43% . |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Debt and Financing Arrangements [Abstract] | |
Debt and Financing Arrangements [Text Block] | NOTE 12 – Debt and Financing Arrangements Short -Term Borrowings On November 20, 2018, the Company closed on a secured, variable rate revolving line of credit in the amount of $ 5.0 million that expires on November 20, 2019 . As of September 30, 2019 , the Company was in compliance with all debt covenants required under this line of credit and there were no outstanding balances on this line of credit as of September 30, 2019 and December 31, 2018 . Long-term Borrowings On July 27, 2018 the Company completed a $201.7 million asset-backed term securitization. Each tranche of the term note securitization has a fixed term, fixed interest rate and fixed principal amount. At September 30, 2019 , outstanding term securitizations amou nted to $ 92.3 million and are collateralized by $ 103.0 million of minimum lease and loan payments receivable and 7.60 million of restricted interest-earning deposits. The Company’s term note securitizations are classified as long-term bor rowings. The Company’s long-term borrowings consisted of the following: September 30, December 31, 2019 2018 (Dollars in thousands) Term securitization 2018-1 $ 92,346 $ 151,233 Unamortized debt issuance costs (607) (1,178) $ 91,739 $ 150,055 The July 27, 2018 term note securitization is summarized below: Notes Final Original Outstanding Balance as of Originally Maturity Coupon September 30, 2019 December 31, 2018 Issued Date Rate (Dollars in thousands) 2018 — 1 Class A-1 $ — $ 26,983 $ 77,400 July, 2019 2.55 % Class A-2 23,796 55,700 55,700 October, 2020 3.05 Class A-3 36,910 36,910 36,910 April, 2023 3.36 Class B 10,400 10,400 10,400 May, 2023 3.54 Class C 11,390 11,390 11,390 June, 2023 3.70 Class D 5,470 5,470 5,470 July, 2023 3.99 Class E 4,380 4,380 4,380 May, 2025 5.02 Total Term Note Securitizations $ 92,346 $ 151,233 $ 201,650 3.05 % (1)(2) (1) Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. ( 2 ) The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.41 % over the term of the borrowing. Scheduled principal and interest payments on outstanding borrowings as of September 30, 2019 are as follows: Principal Interest (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 14,935 $ 761 2020 45,200 1,993 2021 23,629 813 2022 8,582 159 $ 92,346 $ 3,726 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 13 – 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 price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date. GAA P focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. A three-level valuation hierarchy is required for disclosure of fair value measurements based upon th e transparency of inputs to the valuation of an asset or liability as of the measurement date. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels are defined as follows: Level 1 – Inputs to the valuation are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs to the valuation may include quoted prices for similar assets and liabilities in active or inactive markets, and inputs other than quoted prices, such as interest rates and yield curves, which are observable for the asset or liability for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation are unobservab le and significant to the fair value measurement. Level 3 inputs shall be used to measure fair value only to the extent that observable inputs are not available. The Company characterizes active markets as those where transaction volumes are sufficient to provide objective pricing information, such as an exchange traded price. Inactive markets are typically characterized by low transaction volumes, and price quotations that vary substantially among market participants or are not based on current informatio n. The Company’s balances measured at fair value on a recurring basis include the following as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (Dollars in thousands) Assets ABS $ — $ 4,433 $ — $ — $ 4,915 $ — Municipal securities — 2,177 — — 2,612 — Mutual fund 3,612 — — 3,429 — — 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 September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 132,461 $ 132,461 $ 97,156 $ 97,156 Time deposits with banks 14,919 14,973 9,659 9,614 Restricted interest-earning deposits with banks 7,576 7,576 14,045 14,045 Loans, net of allowance 585,735 593,238 518,697 515,754 Federal Reserve Bank Stock 1,711 1,711 1,711 1,711 Financial Liabilities Deposits $ 869,257 $ 856,899 $ 755,776 $ 722,682 Long-term borrowings 91,739 92,373 150,055 149,912 Servicing Liability 2,242 2,242 1,352 1,352 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 September 30, 2019 and December 31, 2018 , because they bear interest at market rates and had maturities of less than 90 days at the time of purchase. The cash equivalents include a money market fund with a balance of $ 31.9 million that the Company considers operating cash and has no reportable gross unrealized gains or losses. The fair value measurement of cash and cash equivalents is classified as Level 1. Time Deposits with Banks Fair value of time deposits is estimated by discounting cash flows of current rates paid by market participants for similar time deposits of the same or similar remaining maturities. This fair value measurement is classified as Level 2. Restricted Interest-Earning Deposits with Banks The C ompany maintains interest-earning trust accounts pledged as collateral for our secured debt facilities . The book value of such accounts is included in restricted interest-earning deposits with banks on the accompanying Consolidated Balance Sheet. These accounts earn a floating market rate of interest which results in a fair value approximating the carrying amount at September 30, 2019 and December 31, 2018 . This fair value mea surement is classified as Level 1. 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 serve 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 September 30, 2019 and December 31, 2018 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 ma rket. Fair value for these loans is 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 the 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 the current rate at which similar loans would be made to borrowers with similar credit, collateral, and for the same remaining maturities. This fair value measurement is classified as Level 2. Federal Reserve Bank Stock Federal Reserve Bank Stock are non-marketable equitable equity securities and are reported at their redeemable carrying amounts, which approximates fair value. This fair value measurement is classified as Level 2. Deposits Deposit liabilities with no def ined maturity such as MMDA deposits have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amount). Fair value for certificates of deposits is estimated by discounting cash flows at current rates paid by the Com pany for similar certificates of deposit of the same or similar remaining maturities. This fair value measurement is classified as Level 2. Long-Term Borrowings The fair value of the Company’s secured borrowings is estimated by discounting cash flows at indicative market rates applicable to the Company’s secured borrowings of the same or similar maturities. This fair value measurement is classified as Level 2. Se rvicing Liability Servicing liabilities do not trade in an active market with readily observable pric e s. Accordingly, we determined fair value based on a discounted cash flow model which uses various inputs related to the estimated net servicing income, if any, and costs to service discounted back at a discount rate. There were no changes to the valuation techniques for the periods presented. Fair value measurements of our servicing liabilities use unobservable inputs, and accordingly we classify our servicing liability as Level 3 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 14 – Earnings Per Share The Company’s restricted stock awards are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, earnings per share (“EPS”) has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares used in computing basic EPS. For the computation of basic EPS, 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 aver age 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 o r converted. The following table provides net income and shares used in computing basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands, except per-share data) Basic EPS Net income $ 7,446 $ 5,906 $ 18,702 $ 18,558 Less: net income allocated to participating securities (89) (98) (237) (332) Net income allocated to common stock $ 7,357 $ 5,808 $ 18,465 $ 18,226 Weighted average common shares outstanding 12,203,086 12,423,769 12,290,906 12,426,240 Less: Unvested restricted stock awards considered participating securities (148,142) (208,856) (156,116) (225,175) Adjusted weighted average common shares used in computing basic EPS 12,054,944 12,214,913 12,134,790 12,201,065 Basic EPS $ 0.61 $ 0.48 $ 1.52 $ 1.49 Diluted EPS Net income allocated to common stock $ 7,357 $ 5,808 $ 18,465 $ 18,226 Adjusted weighted average common shares used in computing basic EPS 12,054,944 12,214,913 12,134,790 12,201,065 Add: Effect of dilutive stock-based compensation awards 113,018 81,813 94,186 68,013 Adjusted weighted average common shares used in computing diluted EPS 12,167,962 12,296,726 12,228,976 12,269,078 Diluted EPS $ 0.60 $ 0.47 $ 1.51 $ 1.49 For the three-month periods ended September 30, 2019 and September 30, 2018 , weighted average outstanding stock-based compen sation awards in the amount of 157,952 and 135,401 , respectively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS . For the nine -month periods ended September 30, 2019 and September 30, 2018 , weighted average outstanding stock-based compen sation awards in the amount of 172,473 and 138,893 , respectively, were considered antidilutive and therefore were not considered in the computation of potential common shares for purposes of diluted EPS . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 15 – Stockholders’ Equity Stockholders’ Equity On May 30 , 201 7 , the Company’s Board of Directors approved a stock repurchase plan (the “201 7 Repurchase Plan”) under which the Company is authorized to repurchase up to $ 1 0 million in value of its outstanding shares of common stock. As described below, a t September 30, 2019 there was no balance remaining in the 2017 Repurchase Plan. On August 1, 2019, the Company’s Board of Directors approved a stock repurchase plan (the “2019 Repurchase Plan”) under which the Company is authorized to repurchase up to $10 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 purch ased under this plan are returned to the status of authorized but unissued shares of common stock. The repurchases ma y be made on the open market, in block trades or otherwise . The stock repurchase program does not obligate the Company to acquire any parti cular amount of common stock, and it may be suspended at any time at the Company's discretion . The repurchases are funded using the Company’s working capital. As of September 30, 2019 , the Company has no t yet purchased any shares under the 2019 Repurchase Plan. During the three-month period ended September 30, 2019 , the Company purchased 144,729 shares of its common stock in the open market under the 2017 Repurchase Plan at an average cost of $ 23.00 per share . During the nine -month period ended September 30, 2019 , the Company purchased 247,500 shares of its common stock under the 2017 Repurchase Plan at an average cost of $ 23.24 p er share. During the three-month period ended September 30, 2018 the Com pany purchased 30,242 shares of its common stock under the 2017 Repurchase Plan at an average cost of $ 28.56 p er share. During the nine -month period ended September 30, 2018 , the Company purchase d 47,967 shares of its common stock under the 2017 Repurchase Plan at an average cost of $ 28.43 per share . At September 30, 2019 , there was no balance remaining in the 2017 Repurchase Plan. In addition to the repurchases described above, pa rticipants 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 2,654 and 22,100 shares repurchased to cover income tax withholding in connection with shares granted under the 2014 Plan during each of the three- and nine -month periods ended September 30, 2019 , at average per-share costs of $ 23.80 and $ 22.87 , respectively. There were 7,324 and 27,746 shares repurchased to cover income tax withholding in connection with shares granted under the 2014 Plan during the three- and nine -month periods ended September 30, 2018 , at average per-share costs of $ 27.74 and $ 26.53 , 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 Comp any and MBB are subject to capital adequacy regulations issued jointly by the federal bank regulatory agencies. These risk-based capital and leverage guidelines make regulatory capital requirements more sensitive to differences in risk profiles among banki ng organizations and consider off-balance sheet exposures in determining capital adequacy. The federal bank regulatory agencies and/or the U.S. Congress may determine to increase capital requirements in the future due to the current economic environment. U nder the capital adequacy regulation, at least half of a banking organization’s total capital is required to be "Tier 1 Capital" as defined in the regulations, comprised of common equity, retained earnings and a limited amount of non-cumulative perpetual p referred stock. The remaining capital, "Tier 2 Capital," as defined in the regulations, may consist of other preferred stock, a limited amount of term subordinated debt or a limited amount of the reserve for possible credit losses. The regulations establis h minimum leverage ratios for banking organizations, which are calculated by dividing Tier 1 Capital by total average assets. Recognizing that the risk-based capital standards principally address credit risk rather than interest rate, liquidity, operationa l or 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-capitali zed). The Company is required to have a level of regulatory capital in excess of the regulatory minimum and to have a capital buffer above 1.875 % for 2018, and 2.5 % for 2019 and thereafter. If a banking organization does not maintain capital above the mini mum plus the capital conservation buffer it may be subject to restrictions on dividends, share buybacks, and certain discretionary payments such as bonus payments. The Company plans to provide the necessary capital to maintain MBB at “well-capitalized” s tatus as defined by banking regulations and as required by an agreement entered into by and among MBB, MLC, Marlin Business Services Corp. and the FDIC in conjunction with the opening of MBB (the “FDIC Agreement”). MBB’s Tier 1 Capital balance at September 30, 2019 was $150.8 million, which met all capital requirements to which MBB is subject and qualified MBB for “well-capitalized” status. At September 30, 2019 , the Company also exceeded its regulatory capital requirements and was considered “well- capitalized” as defined by federal banking regulations and as required by the FDIC Agreement. The following table sets forth the Tier 1 leverage ratio, common equity Tier 1 risk-based capital ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio for Marlin Business Services Corp. and MBB at September 30, 2019 . 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. 15.28% $ 194,273 4% $ 50,849 5% $ 63,561 Marlin Business Bank 13.78% $ 150,760 5% $ 54,705 5% $ 54,705 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 17.72% $ 194,273 4.5% $ 49,338 6.5% $ 71,266 Marlin Business Bank 15.69% $ 150,760 6.5% $ 67,277 6.5% $ 67,277 Tier 1 Risk-based Capital Marlin Business Services Corp. 17.72% $ 194,273 6% $ 65,784 8% $ 87,712 Marlin Business Bank 15.69% $ 150,760 8% $ 81,693 8% $ 81,693 Total Risk-based Capital Marlin Business Services Corp. 18.98% $ 208,046 8% $ 87,712 10% $ 109,641 Marlin Business Bank 16.94% $ 162,836 15% $ 144,164 10% (1) $ 100,915 __________________ (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 16.94% at September 30, 2019 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 | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 16 – Stock-Based Compensation Awards for Stock-Based Compensation are governed by the Company’s 2003 Equity Compensation Plan, as amended (the “2003 Plan”), the Company’s 2014 Equity Compensation Plan (approved by the Company’s shareholders on June 3, 2014) (the “2014 Plan”) and the Co mpany’s 2019 Equity Compensation Plan (approved by the Company’s shareholders on May 30, 2019) (the “2019 Plan” and, together with the 2014 Plan and the 2003 Plan, the “Equity Compensation Plans”). Under the terms of the Equity Compensation Plans, employ ees, 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 (collectively referred to as “Grants”) 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 Equity Compensation Plans. The aggregate number of shares under the 2019 Plan that may be issued for Grants is 826,036 . There were 811,273 shares available for future awards under the 2019 Pl an as of September 30, 2019 . Total stock-based compensation expense was $ 0.9 million and $ 0.9 million for the three-month periods ended September 30, 2019 and September 30, 2018 , respectively . Total stock-based compensation expense was $ 2.8 million and $ 2.6 million for the nine -month periods ended September 30, 2019 and September 30, 2018 , respectively. Excess tax benefits from stock-based payment arrangements was $ 0.1 million and $ 0. 3 million for the nine -month period s ended September 30, 2019 and September 30, 2018 , respectively. 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 seven 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 iss ue stock options to non-employee independent directors. These options generally vest in one year. There were no stock options granted during the three-month and nine -month periods ended September 30, 2019 , respectively. There were no stock options and 68,689 stock options granted during the three-month and nine -month periods ended September 30, 2018 , respectively. The fair value of stock options granted during the nine -month period ended September 30, 2018 was $ 7.21 . The fair value was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: Nine Months Ended September 30, 2018 Risk-free interest rate 2.64% Expected life (years) 4.50 Expected volatility 32.32% Expected dividends 1.98% 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 nine-month period ended September 30, 2019 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2018 146,431 $ 26.77 Granted — — Exercised — — Forfeited (578) 25.75 Expired (3,479) 25.75 Outstanding, September 30, 2019 142,374 26.80 The Company recognized $ 0.1 million and $ 0.3 million of compensation expense related to options d uring the three and nine -month period s ended September 30, 2019 . The Company recognize d $ 0.1 million and $ 0.2 million of compensation expense related to options during the three and nine -month period s ended September 30, 2018 . There were no stock options exercise d during the three-month period ended September 30, 2019 . The re were no stock options exercised during the three-mo nth period ended September 30, 2018 . The total pretax intrinsic values of stock options exercised w as $ 0.1 million for the nine -month pe riod ended September 30, 2018 . The following table summarizes information about the stock options outstanding and exercisable as of September 30, 2019 : 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 82,353 4.5 $ 25.75 $ — 54,861 4.5 $ 25.75 — $ 28.25 60,021 5.5 $ 28.25 $ — 20,001 5.5 $ 28.25 $ — 142,374 4.9 $ 26.80 $ — 74,862 4.8 $ 26.42 $ — The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $25.19 as of September 30, 2019 , which would have been received by the option holders had all option holders exercised their options as of that date. As of September 30, 2019 , the re was $ 0.3 million of unrecognized compensation cost related to non-vested stock options not yet recognized in the Consolidated Statements of Operations scheduled to be recogniz ed over a weighted average period of 1.0 year . Restricted Stock Awards The Company’s r estricted 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 a chievement of the performance criteria is determined. Of the total restricted stock awards granted during the nine -month period ended September 30, 2019 , no shares may be subject to accelerated vesting based on individual performance fa ctors; no shares have vesting contingent upon performance factors. Vesting was accelerated in 2019 and 2018 on certain awards based on the achievement of certain performance criteria determined annually, as described below. The Compa ny 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 servic e. The following table summarizes the activity of the non-vested restricted stock during the nine - month period ended September 30, 2019 : Weighted Average Grant-Date Non-vested restricted stock Shares Fair Value Outstanding at December 31, 2018 186,603 $ 19.91 Granted 18,674 23.19 Vested (55,006) 15.82 Forfeited (2,944) 21.97 Outstanding at September 30, 2019 147,327 21.81 During th e three-month periods ended September 30, 2019 and September 30, 2018 , the Company granted restricted stock awards with grant-date fair values totaling $ 0.4 million and $ 0.1 million, respectively . During the nine -month periods ended September 30, 2019 and September 30, 2018 , the Company granted restricted stock awards with grant-date fair values totaling $ 0.4 million and $ 0.5 million, respectively. As vesting occurs, or is deemed likely to oc cur, compensation expense is recognized over the requisite service period and additional paid-in capital is increased. The Company recognized $ 0.2 million and $ 0.3 million of compensation expense related to restricted stock f or the three-month periods ended September 30, 2019 and September 30, 2018 , respectively . The Company recognized $ 0.7 million and $ 1.1 million of compensation expense related to restricted stock for the nine -month periods ended September 30, 2019 and September 30, 2018 , respectively. Of the $ 0.7 million total compensation expense related to restricted stock for the nine -month period ended September 30, 2019 , approximately $ 0.1 million related to accelerated vesting during the first quarter of 2019 , based on achievement of certain performance criteria determined annually. Of the $ 1.1 million total compensation expense related to restricted stock for the nine -month period ended September 30, 2018 , approximately $ 0.3 million related to accelerated vesting during the first quarter of 2018 , which was also based on the achievement of certain performance criteria determined annually. As of September 30, 2019 , there was $ 1.6 million of unrecognized compensation cost related to non-vested restricted stock compensation scheduled to be recognized over a weighted average period of 4.4 years. As of September 30, 2019 , there were no restr icted stock awards outstanding for which vesting may be accelerated based on achievement of individual performance measures. The fair value of shares that vested during the three-month periods ended September 30, 2019 and September 30, 2018 was $ 0.2 million and $ 0.7 million, respectively. The fair value of shares that vested during the nine -month periods ended September 30, 2019 and September 30, 2018 was $ 1.3 million and $ 2.5 million, respectiv ely. 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 , achievement of certain market-based targets associated with the Company’s stock price or relative total shareholder return, or a combination of both performance criteria and market-ba sed targets. Expense for equity based awards with market and performance conditions is recognized over the performance period based on the grant-date fair value of the award for those awards which are expected to be earned. In the second quarter of 2018, the Company modified the terms of the portion of certain outstanding 2017 performance based RSUs that are based on actual versus targeted operating performance criteria over the performance period. The modification eliminated the tax benefit that arose fro m the Tax Cuts and Jobs Act enacted in December of 2017. This modification did not result in any incremental compensation costs. The following tables summarize restricted stock unit activity for the nine-month period ended September 30, 2019: Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2018 191,921 $ 17.43 Granted 95,408 18.37 Forfeited (233) 25.75 Converted (8,000) 9.47 Cancelled due to non-achievement of market condition (4,000) 9.47 Outstanding at September 30, 2019 275,096 18.10 Service-based RSUs Outstanding at December 31, 2018 61,256 $ 27.61 Granted 74,620 21.50 Forfeited (4,311) 23.84 Converted (22,509) 27.47 Outstanding at September 30, 2019 109,056 23.61 The weighted average grant-date fair value of RSUs with both performance and market - based vesting condition s granted during the nine -month period ended September 30, 2019 was $ 12.91 per unit. The weighted average grant date fair value of these performance and market - based RSUs was estimated using a Monte Carlo simulation valuation model with the following assu mptions: Nine Months Ended September 30, 2019 2018 Grant date stock price $ 21.50 — Risk-free interest rate 2.16 % — Expected volatility 26.68 % — Dividend yield — — There were no RSUs with vesting conditions based solely on market conditions granted during the nine -month periods ended September 30, 2019 and September 30, 2018 , respectively. 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 t he 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. There were no RSUs gr anted during the three-month period s ended September 30, 2019 and September 30, 2018 , respectively. During the nine -month periods ended September 30, 2019 and September 30, 2018 , the Company granted RSUs with grant-date fair values totaling $ 3.4 million and $ 2.4 million , respectively. The Company recognized $ 0. 6 million and $ 0 . 6 million of compensation e xpense related to RSUs for the three-month periods ended September 30, 2019 and September 30, 2018 , respectively. The Company recognized $ 1. 7 million and $ 1 . 3 million of compensation e xpense related to RSUs for the nine -month periods ended September 30, 2019 and September 30, 2018 , respectively. As of September 30, 2019 , there was $ 3 . 9 million of unrecognized compensation cost related to RSUs scheduled to be recognized over a weighted a verage period of 1. 6 years based on the most probable performance assumptions . In the event maximum performance targets are achieved, an additional $ 3.7 million of compensation cost would be recognized over a weighted average period of 1.6 years . As of September 30, 2019 , 181,926 performance units are expected to convert to shares of common stock based on the most probable performance assumptions. In the event maximum performance targets are achieved, 449,641 performance units would convert to shares of common stock. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Events Subsequent to Year-End | NOTE 17 – Subsequent Events The Company declared a dividend of $0.14 per share on October 31, 2019 . The quarterly dividend, which is expected to result in a dividend payment of approximately $1.7 million, is scheduled to be paid on November 21, 2019 to shareholders of record on the close of business on November 11, 2019 . It r epresents the Company’s thirty-third consecutive quarterly cash dividend. The payment of future dividends will be subject to approval by the Company’s Board of Directors |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of financial statement presentation. The unaudited 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 simil ar economic characteristics, share the same leasing and loan portfolio and have one product offering. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements present th e Company’s financial position at September 30, 2019 and the results of operations for the three- and nine- month periods ended September 30, 2019 and 2018 , and cash flows for the nine -month periods ended September 30, 2019 and 2018 . In Managemen t’s opinion, the unaudited consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the Company’s Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 8, 2019 . The consolidated results of operations for the three- and nine- month periods ended September 30, 2019 and 2018 and the consolidated statements of cash flows for the nine -month periods ended September 30, 2019 and 2018 are not necessarily indicative of the results of operations or cash flows for the respective full years or any other period. |
Accounting Standards Update 2018-13 [Member] | |
Recent Accounting Pronouncements, Policy [Policy Text Block] | Fair Value. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of such transfers and the valuation process for Level 3 fair value measurements. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive inco me. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the C ompany |
Accounting Standards Update 2018-15 [Member] | |
Recent Accounting Pronouncements, Policy [Policy Text Block] | Intangibles - Goodwill . In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract to clarify the accounting treatment for implementation costs for cloud computing arrangements . The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the C ompany |
Accounting Standards Update 2016-13 [Member] | |
Recent Accounting Pronouncements, Policy [Policy Text Block] | Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the methodology for evaluating impairment of most financial instruments. The ASU replaces the currently used incurred loss model with a forward-looking current expected loss model which will generally result in more timely recognition of losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements , which provides guidance on accounting for credit losses on accrued interest receivable balances and guidance on including recoveries when estimating the a llowance. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, which allows entities with an option to elect fair value for certain instruments upon adoption of Topic 326. The Company will adopt the ASU effective January 1, 2020, and will apply any changes resulting from the application of the new standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). We are currently working with a third-party vendor on model development and validation and are working through other implementation steps including updating our allowance governance processes and related internal controls. Our cross-functional implementation team meets on a regular basis to oversee activities and monitor progress. The Company expects that the new guidance will result in an increase in its allowance for credit losses because the allowance will be required to cover credit losses over the full remaining expected life of its portfolio of leases and loans, rather than the incurred loss model under current U.S. GAAP. H owever, our methodologies are in the process of being finalized so the magnitude of the adjustment and the overall impact of the new standard on the Company’s financial condition or results of operations cannot yet be determined . |
Accounting Standards Update 2016-02 [Member] | |
Recent Accounting Pronouncements, Policy [Policy Text Block] | Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet. The ASU required lessees to recognize a right-of-use (ROU) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation for leases with terms of more than twelve months. Accounting by lessors remain ed largely unchanged from current U.S. GAAP. The ASU also require d expanded quantitative and qualitative disclosures for both lessees and lessors. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provided entities with an additional (and o ptional) transition method in which the entity applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company applied the new transition method upon adoption . In December 2018, t he FASB issued ASU 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors , which clarif ied the treatment of sales taxes and other taxes collected from lessees, lessor costs paid directly by lessees, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements , which aligned the new lease guidance with the existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers. It also clarified an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the board’s new lease accounting standard. The Company adopted the guidance in these ASUs on January 1, 2019. As a result , the Company recorded right-of-use assets of $ 9 . 1 million and lease liabilities of $ 9.1 million. At January 1, 2019, there was no adjustment to opening retained earnings. The Company, as a l essor, is record ing property tax income and expense associated with leasing on a gross basis in the Consolidated Statements of Operations. The property tax income and expense are recorded in the same period as earned and incurred, and the Company recog nizes a provision for uncollectible property tax revenue as contra-revenue when a loss is probable and collectability is not reasonably assured. In addition, ASU 2016-02 limits the types of direct lease origination costs that are able to be deferred, whic h will reduce prospective deferred lease origination costs on a unit basis. |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Noninterest Income [Abstract] | |
Schedule of non-interest [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2019 2018 2019 2018 Insurance premiums written and earned $ 2,230 $ 2,047 $ 6,538 $ 5,979 Gain on sale of leases and loans 6,456 2,243 13,400 4,859 Servicing income 395 (769) 1,021 404 Property tax income (42) — 5,680 — Net gains (losses) recognized during the period on equity securities 27 (27) 121 (108) Non-interest income within the scope of other GAAP topics 9,066 3,494 26,760 11,134 Property tax administrative fees on leases 272 176 801 557 ACH payment fees 78 84 238 253 Insurance policy fees 688 513 2,021 1,538 Referral fees 129 118 448 611 Other 129 63 243 216 Non-interest income from contracts with customers 1,296 954 3,751 3,175 Total non-interest income $ 10,362 $ 4,448 $ 30,511 $ 14,309 |
Investment Securties (Tables)
Investment Securties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment securities [Abstract] | |
Investment Securities Summary [Table Text Block] | September 30, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Debt Securities, Available for Sale: Asset-backed securities ("ABS") $ 4,409 $ 42 $ (18) $ 4,433 Municipal securities 2,058 119 — 2,177 Equity Securities Mutual fund 3,693 — (81) 3,612 Total investment securities $ 10,160 $ 161 $ (99) $ 10,222 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (Dollars in thousands) Debt Securities, Available for Sale: ABS $ 4,934 $ 20 $ (39) $ 4,915 Municipal securities 2,629 3 (20) 2,612 Equity Securities Mutual fund 3,631 — (202) 3,429 Total investment securities $ 11,194 $ 23 $ (261) $ 10,956 |
Equity Securities, FV-NI [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Net gains (losses) recognized during the period on equity securities $ 27 $ (27) $ 121 $ (108) Less: Net gains (losses) recognized during the period on equity securities sold during the period — — — — Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 27 $ (27) $ 121 $ (108) |
Schedule of Unrealized Loss on Investments [Table Text Block] | September 30, 2019 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) Debt Securities, Available for Sale: ABS $ — $ — $ (18) $ 1,283 $ (18) $ 1,283 Equity Securities Mutual fund — — (81) 3,612 (81) 3,612 Total investment securities $ — $ — $ (99) $ 4,895 $ (99) $ 4,895 December 31, 2018 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) Debt Securities, Available for Sale: ABS $ — $ — $ (39) $ 3,340 $ (39) $ 3,340 Municipal securities (16) 1,436 (4) 408 (20) 1,844 Equity Securities Mutual fund — — (202) 3,429 (202) 3,429 Total investment securities $ (16) $ 1,436 $ (245) $ 7,177 $ (261) $ 8,613 |
Investments Classified By Contractual Maturity Date [Table Text Block] | September 30, 2019 1 Year 1-5 5-10 After 10 or Less Years Years Years Total (Dollars in thousands) Amortized Cost: Debt Securities, Available for Sale: ABS $ — $ 2,618 $ 1,799 $ — $ 4,417 Municipal securities — 422 1,636 — 2,058 Total debt securities available for sale $ — $ 3,040 $ 3,435 $ — $ 6,475 Estimated fair value $ — $ 3,080 $ 3,537 $ — $ 6,617 Weighted-average yield, GAAP basis — 2.31% 2.85% — 2.60% |
Net Investment in Leases and _2
Net Investment in Leases and Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Investment in Leases and Loans [Abstract] | |
Components of Net Investment in Leases and Loans [Table Text Block] | September 30, 2019 December 31, 2018 (Dollars in thousands) Minimum lease payments receivable $ 492,793 $ 530,867 Estimated residual value of equipment 29,122 27,646 Unearned lease income, net of initial direct costs and fees deferred (64,726) (68,376) Security deposits (661) (838) Total leases 456,528 489,299 Commercial loans, net of origination costs and fees deferred Working Capital Loans 55,794 36,856 CRA (1) 1,454 1,466 Equipment loans (2) 463,519 423,168 CVG 76,414 66,051 Total commercial loans 597,181 527,541 Allowance for credit losses (19,211) (16,100) $ 1,034,498 $ 1,000,740 |
Schedule of Future Minimum Lease Payments Receivable and Amortization of Unearned Lease Income [Table Text Block] | Minimum Lease Payments Net Income Receivable (1) Amortization (2) (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 55,633 $ 9,916 2020 182,135 28,154 2021 125,925 15,651 2022 76,516 7,490 2023 39,218 2,792 Thereafter 13,366 723 $ 492,793 $ 64,726 ________________________ Represents the undiscounted cash flows of the lease payments receivable. Represents the difference between the undiscounted cash flows and the discounted cash flows. The lease income recognized wa s as follows : |
Sales-type Lease, Lease Income [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (Dollars in thousands) Selling Profit (1) $ — $ — $ — $ — Interest Income $ 10,384 $ 11,992 $ 32,075 $ 37,470 ________________________ The Company does not derive income from the sale of the equipment. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Allowance For Credit Losses [Abstract] | |
Allowance for Credit Losses on Finance Receivables [Table Text Block] | Three Months Ended September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,940 $ - $ 13,416 $ 1,421 $ 16,777 Charge-offs (417) - (5,023) (526) (5,966) Recoveries 227 - 457 54 738 Net charge-offs (190) - (4,566) (472) (5,228) Provision for credit losses 346 - 6,799 517 7,662 Allowance for credit losses, end of period $ 2,096 $ - $ 15,649 $ 1,466 $ 19,211 Ending balance: individually evaluated for impairment (3) $ - $ - $ 937 $ - $ 937 Ending balance: collectively evaluated for impairment $ 2,096 $ - $ 14,712 $ 1,466 $ 18,274 Ending lease or loan balance (1) $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 Ending balance: individually evaluated for impairment (3) $ - $ - $ 1,891 $ - $ 1,891 Ending balance: collectively evaluated for impairment $ 55,122 $ 1,454 $ 890,120 $ 84,281 $ 1,030,977 Three Months Ended September 30, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,334 $ - $ 13,012 $ 1,224 $ 15,570 Charge-offs (361) - (4,502) (202) (5,065) Recoveries 9 - 491 19 519 Net charge-offs (352) - (4,011) (183) (4,546) Provision for credit losses 437 - 4,230 226 4,893 Allowance for credit losses, end of period $ 1,419 $ - $ 13,231 $ 1,267 $ 15,917 Ending lease or loan balance (1,4) $ 33,631 $ 1,437 $ 872,027 $ 59,564 $ 966,659 Nine Months Ended September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,467 $ - $ 13,531 $ 1,102 $ 16,100 Charge-offs (1,692) - (13,863) (1,200) (16,755) Recoveries 298 - 1,671 116 2,085 Net charge-offs (1,394) - (12,192) (1,084) (14,670) Provision for credit losses 2,023 - 14,310 1,448 17,781 Allowance for credit losses, end of period $ 2,096 $ - $ 15,649 $ 1,466 $ 19,211 Ending balance: individually evaluated for impairment (3) $ - $ - $ 937 $ - $ 937 Ending balance: collectively evaluated for impairment $ 2,096 $ - $ 14,712 $ 1,466 $ 18,274 Ending lease or loan balance (1) $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 Ending balance: individually evaluated for impairment (3) $ - $ - $ 1,891 $ - $ 1,891 Ending balance: collectively evaluated for impairment $ 55,122 $ 1,454 $ 890,120 $ 84,281 $ 1,030,977 Nine Months Ended September 30, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Charge-offs (1,090) - (12,721) (601) (14,412) Recoveries 59 - 1,599 59 1,717 Net charge-offs (1,031) - (11,122) (542) (12,695) Provision for credit losses 1,414 - 11,690 657 13,761 Allowance for credit losses, end of period $ 1,419 $ - $ 13,231 $ 1,267 $ 15,917 Ending lease or loan balance (1,4) $ 33,631 $ 1,437 $ 872,027 $ 59,564 $ 966,659 Year ended December 31, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance (2) CVG Total Allowance for credit losses, beginning of period $ 1,036 $ - $ 12,663 $ 1,152 $ 14,851 Charge-offs (1,537) - (18,149) (907) (20,593) Recoveries 60 - 2,199 61 2,320 Net charge-offs (1,477) - (15,950) (846) (18,273) Provision for credit losses 1,908 - 16,818 796 19,522 Allowance for credit losses, end of period $ 1,467 $ - $ 13,531 $ 1,102 $ 16,100 Ending lease or loan balance (1,4) $ 36,478 $ 1,466 $ 890,785 $ 67,654 $ 996,383 (1) 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. (2) Equipment Finance consists of Equipment Finance Agreements, Installment Pu rchase Agreements, and other leases and loans. (3) Our policy for estimating the allowance for credit losses includes analyzing specifically identified loans or leases separately from the pool, whenever such contracts are not expected to perform consisten t with the credit characteristics or the portfolio segment as a whole. In such cases, these loans or leases are analyzed for impairment under a separate quantitative analysis and a specific reserve established. In the three months ended September 30, 201 9, loans were individually evaluated for impairment related to fraudulent activities within a specific equipment dealer’s portfolio . (4) For the three and nine months ended September 30, 2018 and the year ended December 31, 2018 , all leases and loans were collectively evaluated. |
Financing Receivable Credit Quality Indicators [Table Text Block] | September 30, 2019 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance CVG Total Pass $ 53,799 $ 1,454 $ 879,589 $ 82,831 $ 1,017,673 Special Mention 180 - 3,714 105 3,999 Substandard 403 - 3,803 572 4,778 Doubtful 713 - 3,142 311 4,166 Loss 27 - 1,763 462 2,252 Total $ 55,122 $ 1,454 $ 892,011 $ 84,281 $ 1,032,868 December 31, 2018 Commercial Leases and Loans (Dollars in thousands) Working Capital Loans CRA Equipment Finance CVG Total Pass $ 35,793 $ 1,466 $ 879,275 $ 66,463 $ 982,997 Special Mention 47 - 4,373 146 4,566 Substandard 145 - 3,460 660 4,265 Doubtful 300 - 2,353 158 2,811 Loss 193 - 1,324 227 1,744 Total $ 36,478 $ 1,466 $ 890,785 $ 67,654 $ 996,383 |
Past Due Financing Receivables [Table Text Block] | 30-59 60-89 >90 Days Days Days Total Total September 30, 2019 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Working Capital Loans $ 713 $ - $ 27 $ 740 $ 54,382 $ 55,122 $ 740 CRA - - - - 1,454 1,454 - Equipment Finance (1) 4,247 3,680 5,000 12,927 1,002,425 1,015,352 6,636 CVG 173 503 573 1,249 96,836 98,085 573 Total Leases and Loans (2) $ 5,133 $ 4,183 $ 5,600 $ 14,916 $ 1,155,097 $ 1,170,013 $ 7,949 30-59 60-89 >90 Days Days Days Total Total December 31, 2018 Past Past Past Past Finance Non- (Dollars in thousands) Due Due Due Due Current Receivables Accruing Working Capital Loans $ 300 $ 51 $ 141 $ 492 $ 35,986 $ 36,478 $ 492 CRA - - - - 1,466 1,466 - Equipment Finance (1) 4,537 3,123 3,529 11,189 1,001,363 1,012,552 3,529 CVG 166 257 191 614 78,407 79,021 191 Total Leases and Loans (2) $ 5,003 $ 3,431 $ 3,861 $ 12,295 $ 1,117,222 $ 1,129,517 $ 4,212 (1 ) Equipment Finance consists of Equipment Finance Agreements, Installment Purchase Agreements, and other leases and loans. (2) Represents total minimum lease and loan payments receivable for Equ ipment Finance and CVG and as a percentage of principal outstanding for Working Capital Loans and CRA. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule Of Goodwill [Table Text Block] | (Dollars in thousands) Total Company Balance at December 31, 2018 $ 7,360 Changes (625) Balance at September 30, 2019 $ 6,735 |
Schedule of Finite Lived Intangible Assets [Table Text Block] | (Dollars in thousands) Accumulated Net Description Useful Life Cost Amortization Value Lender relationships 3 to 10 years $ 1,630 $ 457 $ 1,173 Vendor relationships 11 years 7,290 809 6,481 Corporate trade name 7 years 60 24 36 $ 8,980 $ 1,290 $ 7,690 |
Schedule of finite lived intangible assets future amortization [Table Text Block] | The Company expects the amortization expense for the next five years will be as follows: (Dollars in thousands) Remainder of 2019 $ 230 2020 798 2021 798 2022 798 2023 798 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | September 30, December 31, 2019 2018 (Dollars in thousands) Accrued fees receivable $ 3,317 $ 3,354 Prepaid expenses 2,568 2,447 Income taxes receivable 1,223 — Federal Reserve Bank Stock 1,711 1,711 Other 3,270 2,144 $ 12,089 $ 9,656 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in Thousands) 2019 2018 2019 2018 Operating lease cost $ 322 $ 283 $ 878 $ 842 Finance lease costs — 2 — 6 Short-term lease cost 207 — 323 — Total lease cost $ 529 $ 285 $ 1,201 $ 848 |
Supplemental information related to leases | Supplemental information related to leases was as follows: Nine Months Ended (Dollars in thousands) September 30, 2019 Supplemental balance sheet information Operating lease right-of-use assets $ 9,071 Operating lease liabilities 9,745 Weighted average remaining lease term 11.3 Years Weighted average discount rate 3.30 % Supplemental cash flow information Operating cash flows for operating leases $ 303 Right-of-use assets obtained in exchange for lease obligations 9,071 |
Maturities of lease liabilities | Maturities of lease liabilities were as follows: Operating Leases Period Ending December 31, (Dollars in thousands) Remainder of 2019 $ 128 2020 1,281 2021 1,073 2022 984 2023 906 Thereafter 7,445 Total lease payments $ 11,817 Less: imputed interest (2,072) Total $ 9,745 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Contractual Maturities of Time Deposits [Abstract] | |
Contractual Maturities Of Time Deposits [Table Text Block] | Scheduled Maturities (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 122,872 2020 331,407 2021 208,367 2022 108,362 2023 47,741 Thereafter 31,016 Total $ 849,765 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt and Financing Arrangements [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, December 31, 2019 2018 (Dollars in thousands) Term securitization 2018-1 $ 92,346 $ 151,233 Unamortized debt issuance costs (607) (1,178) $ 91,739 $ 150,055 |
Schedule of term note securitization {Table text block] | The July 27, 2018 term note securitization is summarized below: Notes Final Original Outstanding Balance as of Originally Maturity Coupon September 30, 2019 December 31, 2018 Issued Date Rate (Dollars in thousands) 2018 — 1 Class A-1 $ — $ 26,983 $ 77,400 July, 2019 2.55 % Class A-2 23,796 55,700 55,700 October, 2020 3.05 Class A-3 36,910 36,910 36,910 April, 2023 3.36 Class B 10,400 10,400 10,400 May, 2023 3.54 Class C 11,390 11,390 11,390 June, 2023 3.70 Class D 5,470 5,470 5,470 July, 2023 3.99 Class E 4,380 4,380 4,380 May, 2025 5.02 Total Term Note Securitizations $ 92,346 $ 151,233 $ 201,650 3.05 % (1)(2) (1) Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. ( 2 ) The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.41 % over the term of the borrowing. |
Schedule of Maturities of Long-term Debt [Table Text Block] | Scheduled principal and interest payments on outstanding borrowings as of September 30, 2019 are as follows: Principal Interest (Dollars in thousands) Period Ending December 31, Remainder of 2019 $ 14,935 $ 761 2020 45,200 1,993 2021 23,629 813 2022 8,582 159 $ 92,346 $ 3,726 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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] | September 30, 2019 December 31, 2018 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (Dollars in thousands) Assets ABS $ — $ 4,433 $ — $ — $ 4,915 $ — Municipal securities — 2,177 — — 2,612 — Mutual fund 3,612 — — 3,429 — — |
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments [Table Text Block] | September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value (Dollars in thousands) Financial Assets Cash and cash equivalents $ 132,461 $ 132,461 $ 97,156 $ 97,156 Time deposits with banks 14,919 14,973 9,659 9,614 Restricted interest-earning deposits with banks 7,576 7,576 14,045 14,045 Loans, net of allowance 585,735 593,238 518,697 515,754 Federal Reserve Bank Stock 1,711 1,711 1,711 1,711 Financial Liabilities Deposits $ 869,257 $ 856,899 $ 755,776 $ 722,682 Long-term borrowings 91,739 92,373 150,055 149,912 Servicing Liability 2,242 2,242 1,352 1,352 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands, except per-share data) Basic EPS Net income $ 7,446 $ 5,906 $ 18,702 $ 18,558 Less: net income allocated to participating securities (89) (98) (237) (332) Net income allocated to common stock $ 7,357 $ 5,808 $ 18,465 $ 18,226 Weighted average common shares outstanding 12,203,086 12,423,769 12,290,906 12,426,240 Less: Unvested restricted stock awards considered participating securities (148,142) (208,856) (156,116) (225,175) Adjusted weighted average common shares used in computing basic EPS 12,054,944 12,214,913 12,134,790 12,201,065 Basic EPS $ 0.61 $ 0.48 $ 1.52 $ 1.49 Diluted EPS Net income allocated to common stock $ 7,357 $ 5,808 $ 18,465 $ 18,226 Adjusted weighted average common shares used in computing basic EPS 12,054,944 12,214,913 12,134,790 12,201,065 Add: Effect of dilutive stock-based compensation awards 113,018 81,813 94,186 68,013 Adjusted weighted average common shares used in computing diluted EPS 12,167,962 12,296,726 12,228,976 12,269,078 Diluted EPS $ 0.60 $ 0.47 $ 1.51 $ 1.49 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. 15.28% $ 194,273 4% $ 50,849 5% $ 63,561 Marlin Business Bank 13.78% $ 150,760 5% $ 54,705 5% $ 54,705 Common Equity Tier 1 Risk-Based Capital Marlin Business Services Corp. 17.72% $ 194,273 4.5% $ 49,338 6.5% $ 71,266 Marlin Business Bank 15.69% $ 150,760 6.5% $ 67,277 6.5% $ 67,277 Tier 1 Risk-based Capital Marlin Business Services Corp. 17.72% $ 194,273 6% $ 65,784 8% $ 87,712 Marlin Business Bank 15.69% $ 150,760 8% $ 81,693 8% $ 81,693 Total Risk-based Capital Marlin Business Services Corp. 18.98% $ 208,046 8% $ 87,712 10% $ 109,641 Marlin Business Bank 16.94% $ 162,836 15% $ 144,164 10% (1) $ 100,915 (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 (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-based Payment Award Stock Options Valuation Assumptions [Table Text Block] | Nine Months Ended September 30, 2018 Risk-free interest rate 2.64% Expected life (years) 4.50 Expected volatility 32.32% Expected dividends 1.98% |
Schedule of Stock-based Compensation, Stock Options Activity [Table Text Block] | A summary of option activity for the nine-month period ended September 30, 2019 follows: Weighted Average Number of Exercise Price Options Shares Per Share Outstanding, December 31, 2018 146,431 $ 26.77 Granted — — Exercised — — Forfeited (578) 25.75 Expired (3,479) 25.75 Outstanding, September 30, 2019 142,374 26.80 |
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 82,353 4.5 $ 25.75 $ — 54,861 4.5 $ 25.75 — $ 28.25 60,021 5.5 $ 28.25 $ — 20,001 5.5 $ 28.25 $ — 142,374 4.9 $ 26.80 $ — 74,862 4.8 $ 26.42 $ — |
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, 2018 186,603 $ 19.91 Granted 18,674 23.19 Vested (55,006) 15.82 Forfeited (2,944) 21.97 Outstanding at September 30, 2019 147,327 21.81 |
Schedule of Stock-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following tables summarize restricted stock unit activity for the nine-month period ended September 30, 2019: Weighted Average Number of Grant-Date Performance-based & market-based RSUs RSUs Fair Value Outstanding at December 31, 2018 191,921 $ 17.43 Granted 95,408 18.37 Forfeited (233) 25.75 Converted (8,000) 9.47 Cancelled due to non-achievement of market condition (4,000) 9.47 Outstanding at September 30, 2019 275,096 18.10 Service-based RSUs Outstanding at December 31, 2018 61,256 $ 27.61 Granted 74,620 21.50 Forfeited (4,311) 23.84 Converted (22,509) 27.47 Outstanding at September 30, 2019 109,056 23.61 |
Schedule of Stock-Based Payment Award, Restricted Stock Units Valuation Assumptions [Table Text Block[ | Nine Months Ended September 30, 2019 2018 Grant date stock price $ 21.50 — Risk-free interest rate 2.16 % — Expected volatility 26.68 % — Dividend yield — — |
The Company (Details)
The Company (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 19, 2018 | |
Business Combination, Description [Abstract] | ||||
Business Acquisition, Name of Acquired Entity | Fleet Financing Resources (“FFR”) | |||
Business Combination, Reason for Business Combination | This acquisition is consistent with our strategy of augmenting organic growth with strategic acquisitions that extend our existing equipment finance business into new and attractive markets. | |||
Payments To Acquire Businesses, Gross | $ 10 | |||
Business combination revenue of acquiree since acquisition date, estimate | 542 | |||
Earnout consideration | $ 5.5 | |||
Total consideration | 15.5 | |||
Intangible assets | $ 7.6 | |||
Goodwill relatled to Fleet Financing Resources, FFR | $ 5.6 | |||
Fair value of the earn-out | $ 3.2 | |||
Non Interest Income | $ 14.5 | |||
Interest and fee income | 87.9 | |||
Net Income | $ 19.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Right-of-use assets | $ 9.1 | |
Lease liabilities | $ 9.1 | |
Accounting Standards Update 2018-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. | |
Accounting Standards Update 2018-15 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company |
Non-Interest Income (Details)
Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noninterest Income [Abstract] | ||||
Insurance premiums written and earned | $ 2,230 | $ 2,047 | $ 6,538 | $ 5,979 |
Gain on sale of leases and loans | 6,456 | 2,243 | 13,400 | 4,859 |
Servicing income | 395 | (769) | 1,021 | 404 |
Property tax income | (42) | 0 | 5,680 | 0 |
Net gains and (losses) recognized during the period on equity securities | 27 | (27) | 121 | (108) |
Non-interest income within the scope of other GAAP topics | 9,066 | 3,494 | 26,760 | 11,134 |
Property tax administrative fees on leases | 272 | 176 | 801 | 557 |
ACH payment fees | 78 | 84 | 238 | 253 |
Insurance policy fees | 688 | 513 | 2,021 | 1,538 |
Referral fees | 129 | 118 | 448 | 611 |
Other | 129 | 63 | 243 | 216 |
Non-interest income from contracts with customers | 1,296 | 954 | 3,751 | 3,175 |
Total non-interest income | $ 10,362 | $ 4,448 | $ 30,511 | $ 14,309 |
Investment Securities (Summary)
Investment Securities (Summary) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost | $ 10,160 | $ 11,194 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 161 | 23 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (99) | (261) |
Available-for-sale debt securities, fair value | 10,222 | 10,956 |
Asset Backed Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost | 4,409 | 4,934 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 42 | 20 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (18) | (39) |
Available-for-sale debt securities, fair value | 4,433 | 4,915 |
Municipal Bonds [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost | 2,058 | 2,629 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 119 | 3 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (20) |
Available-for-sale debt securities, fair value | 2,177 | 2,612 |
Mutual Fund [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, amortized cost | 3,693 | 3,631 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (81) | (202) |
Available-for-sale debt securities, fair value | $ 3,612 | $ 3,429 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | |||||
Equity securities recorded at fair value | $ 3,600 | $ 3,600 | $ 3,400 | ||
Net gains and (losses) recognized during the period on equity securities | 27 | $ (27) | 121 | $ (108) | |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | 0 | 0 | 0 | 0 | |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 27 | $ (27) | $ 121 | $ (108) |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Loss and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ (16) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 1,436 |
Available-for-sale debt ecurities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (99) | (245) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,895 | 7,177 |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (99) | (261) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Fair Value, Total | 4,895 | 8,613 |
Asset Backed Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale debt ecurities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (18) | (39) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,283 | 3,340 |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (18) | (39) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Fair Value, Total | 1,283 | 3,340 |
Municipal Securities [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 1,436 | |
Available-for-sale debt ecurities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4) | |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 408 | |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (20) | |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Fair Value, Total | 1,844 | |
Mutual Fund [Member] | ||
Debt Securities Available-for-sale [Line Items] | ||
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Fair Value | 0 | 0 |
Available-for-sale debt ecurities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (81) | (202) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 3,612 | 3,429 |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Accumulated Loss, Total | (81) | (202) |
Available-for-sale debt securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 3,612 | $ 3,429 |
Investment Securities (Contract
Investment Securities (Contractual Maturity of Debt Securities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Debt Securities Available-for-sale [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 | 3,040 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 3,435 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 0 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 6,475 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 0 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 3,080 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 3,537 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 0 |
Available-for-sale Securities, Debt Securities, Fair Value, Total | $ 6,617 |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.60% |
One Year or Less [Member] | |
Debt Securities Available-for-sale [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 0.00% |
After One Year Through Five Years [Member] | |
Debt Securities Available-for-sale [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.31% |
After Five Years Through Ten Years [Member] | |
Debt Securities Available-for-sale [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 2.85% |
After Ten Years [Member] | |
Debt Securities Available-for-sale [Line Items] | |
Weighted-average Yield, GAAP Basis, Available-for-sale securities | 0.00% |
Asset Backed Securities [Member] | |
Debt Securities Available-for-sale [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 | 2,618 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 1,799 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 0 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 4,417 |
Municipal Securities [Member] | |
Debt Securities Available-for-sale [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 | 422 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 1,636 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 0 |
Available-for-sale Debt Securities, Amortized Cost Basis, Total | $ 2,058 |
Net Investment in Leases and _3
Net Investment in Leases and Loans (Narratives) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Net Investment in Leases and Loans [Abstract] | ||
Initial direct costs and origination costs | $ 20,800 | $ 20,500 |
Net investments [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 35,400 | |
Estimated Residual Value of Equipment | $ 29,122 | 27,646 |
Minimum [Member] | ||
Net investments [Line Items] | ||
Lessor, Sales-type Lease, Term of Contract | 36 months | |
Working Capital Loan Terms | 6 months | |
Maximum [Member] | ||
Net investments [Line Items] | ||
Lessor, Sales-type Lease, Term of Contract | 72 months | |
Working Capital Loan Terms | 24 months | |
Variable Interest Entity [Member] | ||
Net investments [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 91,900 | |
Copier Product [Member] | ||
Net investments [Line Items] | ||
Estimated Residual Value of Equipment | $ 23,700 | $ 23,600 |
Net Investment in Leases and _4
Net Investment in Leases and Loans (Net Investment Components) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Net Investment in Leases and Loans [Abstract] | ||||||
Minimum lease payments receivable | $ 492,793 | $ 530,867 | ||||
Estimated Residual Value of Equipment | 29,122 | 27,646 | ||||
Unearned Lease Income, Net Of Initial Direct Costs and Fees Deferred | (64,726) | (68,376) | ||||
Security Deposits | (661) | (838) | ||||
Total leases | 456,528 | 489,299 | ||||
Working Capital Loans | 55,794 | 36,856 | ||||
CRA | 1,454 | 1,466 | ||||
Equipment loans | 463,519 | 423,168 | ||||
TFG | 76,414 | 66,051 | ||||
Total commercial loans, net of origination costs and fees deferred | 597,181 | 527,541 | ||||
Allowance for Credit Losses | (19,211) | $ (16,777) | (16,100) | $ (15,917) | $ (15,570) | $ (14,851) |
Total net investment in leases and loans | $ 1,034,498 | $ 1,000,740 |
Net Investment in Leases and _5
Net Investment in Leases and Loans (Future Minimum Lease Payments Receivable Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Future Minimum Lease Payments Receivable Schedule [Abstract] | ||
Remaining part of 2019 | $ 55,633 | |
2020 | 182,135 | |
2021 | 125,925 | |
2022 | 76,516 | |
2023 | 39,218 | |
Thereafter | 13,366 | |
Minimum Lease Payments Receivable | 492,793 | $ 530,867 |
Future Scheduled Income Amortization [Abstract] | ||
Remaing part of 2019 | 9,916 | |
2020 | 28,154 | |
2021 | 15,651 | |
2022 | 7,490 | |
2023 | 2,792 | |
Thereafter | 723 | |
Unearned Lease Income, Including Initial Direct Costs and Fees Deferred | $ 64,726 | $ 68,376 |
Net Investment in Leases and _6
Net Investment in Leases and Loans - Lease income recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Selling profit [Member] | ||||
Lease income | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Income [Member] | ||||
Lease income | $ 10,384 | $ 11,992 | $ 32,075 | $ 37,470 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narratives) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance For Credit Losses [Abstract] | |||
Loans and leases investments sold | $ 195.9 | $ 78.1 | $ 139 |
Gain on sale of other leases and loans | $ 13.4 | $ 4.8 | $ 8.4 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | $ 16,777 | $ 15,570 | $ 16,100 | $ 14,851 | $ 14,851 |
Charge-offs | (5,966) | (5,065) | (16,755) | (14,412) | (20,593) |
Recoveries | 738 | 519 | 2,085 | 1,717 | 2,320 |
Net charge-offs | (5,228) | (4,546) | (14,670) | (12,695) | (18,273) |
Provision for credit losses | 7,662 | 4,893 | 17,781 | 13,761 | 19,522 |
Allowance for credit losses, end of period | 19,211 | 15,917 | 19,211 | 15,917 | 16,100 |
Ending balance: individually evaluated for impairment | 937 | 937 | |||
Ending balance: collectively evaluated for impairment | 18,274 | 18,274 | |||
Ending lease or loan balance | 1,032,868 | 966,659 | 1,032,868 | 966,659 | 996,383 |
Ending balance, individually evaluated for impairment | 1,891 | 1,891 | |||
Ending balance, collectively evaluated for impairment | 1,030,977 | 1,030,977 | |||
Working capital Loan [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | 1,940 | 1,334 | 1,467 | 1,036 | 1,036 |
Charge-offs | (417) | (361) | (1,692) | (1,090) | (1,537) |
Recoveries | 227 | 9 | 298 | 59 | 60 |
Net charge-offs | (190) | (352) | (1,394) | (1,031) | (1,477) |
Provision for credit losses | 346 | 437 | 2,023 | 1,414 | 1,908 |
Allowance for credit losses, end of period | 2,096 | 1,419 | 2,096 | 1,419 | 1,467 |
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 2,096 | 2,096 | |||
Ending lease or loan balance | 55,122 | 33,631 | 55,122 | 33,631 | 36,478 |
Ending balance, individually evaluated for impairment | 0 | 0 | |||
Ending balance, collectively evaluated for impairment | 55,122 | 55,122 | |||
CRA [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | 0 | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 | 0 | 0 |
Allowance for credit losses, end of period | 0 | 0 | 0 | 0 | 0 |
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||
Ending lease or loan balance | 1,454 | 1,437 | 1,454 | 1,437 | 1,466 |
Ending balance, individually evaluated for impairment | 0 | 0 | |||
Ending balance, collectively evaluated for impairment | 1,454 | 1,454 | |||
Equipment Finance [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | 13,416 | 13,012 | 13,531 | 12,663 | 12,663 |
Charge-offs | (5,023) | (4,502) | (13,863) | (12,721) | (18,149) |
Recoveries | 457 | 491 | 1,671 | 1,599 | 2,199 |
Net charge-offs | (4,566) | (4,011) | (12,192) | (11,122) | (15,950) |
Provision for credit losses | 6,799 | 4,230 | 14,310 | 11,690 | 16,818 |
Allowance for credit losses, end of period | 15,649 | 13,231 | 15,649 | 13,231 | 13,531 |
Ending balance: individually evaluated for impairment | 937 | 937 | |||
Ending balance: collectively evaluated for impairment | 14,712 | 14,712 | |||
Ending lease or loan balance | 892,011 | 872,027 | 892,011 | 872,027 | 890,785 |
Ending balance, individually evaluated for impairment | 1,891 | 1,891 | |||
Ending balance, collectively evaluated for impairment | 890,120 | 890,120 | |||
CVG [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Allowance for credit losses, beginning of period | 1,421 | 1,224 | 1,102 | 1,152 | 1,152 |
Charge-offs | (526) | (202) | (1,200) | (601) | (907) |
Recoveries | 54 | 19 | 116 | 59 | 61 |
Net charge-offs | (472) | (183) | (1,084) | (542) | (846) |
Provision for credit losses | 517 | 226 | 1,448 | 657 | 796 |
Allowance for credit losses, end of period | 1,466 | 1,267 | 1,466 | 1,267 | 1,102 |
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,466 | 1,466 | |||
Ending lease or loan balance | 84,281 | $ 59,564 | 84,281 | $ 59,564 | $ 67,654 |
Ending balance, individually evaluated for impairment | 0 | 0 | |||
Ending balance, collectively evaluated for impairment | $ 84,281 | $ 84,281 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Segments of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | $ 1,032,868 | $ 996,383 | $ 966,659 |
Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 55,122 | 36,478 | 33,631 |
CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 1,454 | 1,466 | 1,437 |
Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 892,011 | 890,785 | 872,027 |
CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 84,281 | 67,654 | $ 59,564 |
Pass [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 1,017,673 | 982,997 | |
Pass [Member] | Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 53,799 | 35,793 | |
Pass [Member] | CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 1,454 | 1,466 | |
Pass [Member] | Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 879,589 | 879,275 | |
Pass [Member] | CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 82,831 | 66,463 | |
Special Mention [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 3,999 | 4,566 | |
Special Mention [Member] | Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 180 | 47 | |
Special Mention [Member] | CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 0 | 0 | |
Special Mention [Member] | Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 3,714 | 4,373 | |
Special Mention [Member] | CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 105 | 146 | |
Substandard [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 4,778 | 4,265 | |
Substandard [Member] | Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 403 | 145 | |
Substandard [Member] | CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 0 | 0 | |
Substandard [Member] | Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 3,803 | 3,460 | |
Substandard [Member] | CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 572 | 660 | |
Doubtful [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 4,166 | 2,811 | |
Doubtful [Member] | Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 713 | 300 | |
Doubtful [Member] | CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 0 | 0 | |
Doubtful [Member] | Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 3,142 | 2,353 | |
Doubtful [Member] | CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 311 | 158 | |
Loss [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 2,252 | 1,744 | |
Loss [Member] | Working capital Loan [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 27 | 193 | |
Loss [Member] | CRA [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 0 | 0 | |
Loss [Member] | Equipment Finance [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | 1,763 | 1,324 | |
Loss [Member] | CVG [Member] | |||
Amount of portfolio [Line Items] | |||
Total net finance receivables, end of period | $ 462 | $ 227 |
Allowance for Credit Losses - D
Allowance for Credit Losses - Delinquent And Non Accrual Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 14,916 | $ 12,295 |
Financing Receivable, Recorded Investment, Current | 1,155,097 | 1,117,222 |
Total finance receivables, end of period | 1,170,013 | 1,129,517 |
Non-accrual leases and loans, end of period | 7,949 | 4,212 |
Working capital Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 740 | 492 |
Financing Receivable, Recorded Investment, Current | 54,382 | 35,986 |
Total finance receivables, end of period | 55,122 | 36,478 |
Non-accrual leases and loans, end of period | 740 | 492 |
CRA [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 1,454 | 1,466 |
Total finance receivables, end of period | 1,454 | 1,466 |
Non-accrual leases and loans, end of period | 0 | 0 |
Equipment Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 12,927 | 11,189 |
Financing Receivable, Recorded Investment, Current | 1,002,425 | 1,001,363 |
Total finance receivables, end of period | 1,015,352 | 1,012,552 |
Non-accrual leases and loans, end of period | 6,636 | 3,529 |
CVG [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,249 | 614 |
Financing Receivable, Recorded Investment, Current | 96,836 | 78,407 |
Total finance receivables, end of period | 98,085 | 79,021 |
Non-accrual leases and loans, end of period | 573 | 191 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,133 | 5,003 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Working capital Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 713 | 300 |
Financing Receivables, 30 to 59 Days Past Due [Member] | CRA [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Equipment Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,247 | 4,537 |
Financing Receivables, 30 to 59 Days Past Due [Member] | CVG [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 173 | 166 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,183 | 3,431 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Working capital Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 51 |
Financing Receivables, 60 to 89 Days Past Due [Member] | CRA [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Equipment Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,680 | 3,123 |
Financing Receivables, 60 to 89 Days Past Due [Member] | CVG [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 503 | 257 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,600 | 3,861 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Working capital Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 27 | 141 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CRA [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Equipment Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,000 | 3,529 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CVG [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 573 | $ 191 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite Lived Intangible Assets Acquired | $ 7,600 | |||||
Goodwill Acquired During Period | $ 5,600 | |||||
Goodwill | 6,735 | $ 7,360 | ||||
(Reduction) in goodwill | (625) | |||||
Amortization of Intangible Assets | $ 700 | $ 200 | ||||
HKF [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite Lived Intangible Assets Acquired | $ 1,300 | |||||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 8 years 8 months | |||||
Goodwill | $ 1,200 | |||||
FFR [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite Lived Intangible Assets Acquired | $ 7,600 | 7,200 | ||||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 10 years 9 months 18 days | |||||
Goodwill | $ 6,200 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Changes In Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill, Beginning Balance | $ 7,360 |
Changes | (625) |
Goodwill, Ending Balance | $ 6,735 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Cost | $ 8,980 |
Accumulated Amortization | 1,290 |
Net Value | 7,690 |
Lender Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Cost | 1,630 |
Accumulated Amortization | 457 |
Net Value | $ 1,173 |
Lender Relationships [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Lender Relationships [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 10 years |
Vendor Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 11 years |
Cost | $ 7,290 |
Accumulated Amortization | 809 |
Net Value | $ 6,481 |
Corporate Trade Name [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Useful Life | 7 years |
Cost | $ 60 |
Accumulated Amortization | 24 |
Net Value | $ 36 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization expense (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 230 |
Estimated amortization expense in 2020 | 798 |
Estimated amortization expense in 2021 | 798 |
Estimated amortization expense in 2022 | 798 |
Estimated amortization expense in 2023 | $ 798 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets [Abstract] | ||
Accrued fees receivable | $ 3,317 | $ 3,354 |
Prepaid expenses | 2,568 | 2,447 |
Income taxes receivable | 1,223 | 0 |
Federal Reserve Bank Stock | 1,711 | 1,711 |
Other | 3,270 | 2,144 |
Other assets, total | $ 12,089 | $ 9,656 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019Offices | Sep. 30, 2019USD ($)Offices | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Description | the Company leases all six of its office locations including its executive offices in Mt. Laurel, New Jersey, and its offices in or near Salt Lake City, Utah; Portsmouth, New Hampshire; Highlands Ranch, Colorado; Corona, California; and Philadelphia, Pennsylvania. | |
Number Of Offices | Offices | 6 | 6 |
Lessee, Operating Lease, Option to Extend | Four of the office leases include options to extend for terms of three to ten years. | |
Increase in right-of-use assets | $ | $ 2.9 | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee Operating Lease Term Of Contract | 3 years | 3 years |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee Operating Lease Term Of Contract | 10 years | 10 years |
Leases - Componenets of lease e
Leases - Componenets of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of lease expense: | ||||
Operating lease cost | $ 322 | $ 283 | $ 878 | $ 842 |
Finance lease costs | 0 | 2 | 0 | 6 |
Short-term lease cost | 207 | 0 | 323 | 0 |
Total lease cost | $ 529 | $ 285 | $ 1,201 | $ 848 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Supplemental information related to leases: | ||
Operating lease right-of-use assets | $ 9,071 | $ 0 |
Operating lease liabilities | $ 9,745 | $ 0 |
Weighted average remaining lease term | 11 years 3 months 18 days | |
Weighted average discount rate | 3.30% | |
Supplemental cash flow information: | ||
Operating cash flows from operating leases | $ 303 | |
Right-of-use assets obtained in exchange for lease obligations | $ 9,071 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Maturities of lease liabilities: | ||
Remainder of 2019 | $ 128 | |
2020 | 1,281 | |
2021 | 1,073 | |
2022 | 984 | |
2023 | 906 | |
Thereafter | 7,445 | |
Total lease payments | 11,817 | |
Less: imputed interest | (2,072) | |
Total | $ 9,745 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Restitution Due To Customers | $ 4 | ||
Payments to customer fund | $ 4 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Loan Participation Ownership Percentage | 0.80% | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loan Participation Ownership Percentage | 1.20% | ||
Marlin Business Bank [Member] | |||
Loss Contingencies [Line Items] | |||
Unfunded Loan Commitments | $ 0.5 |
Deposits (Details)
Deposits (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Contractual Maturities of Time Deposits [Abstract] | ||
Remainder of 2019 | $ 122,872,000 | |
2020 | 331,407,000 | |
2021 | 208,367,000 | |
2022 | 108,362,000 | |
2023 | 47,741,000 | |
Thereafter | 31,016,000 | |
Total | 849,765,000 | $ 755,776,000 |
Money market deposit accounts | 19,700,000 | |
Maximum time deposit liability denomination | 250,000 | |
Cash FDIC Insured Amount | $ 250,000 | |
Weighted average all-in interest rate of all deposit liabilities outstanding | 2.43% |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narratives (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Nov. 20, 2018 | Jul. 27, 2018 | |
Debt and Financing Arrangements [Abstract] | ||||
Term note securitization 2018-1 | $ 92,346,000 | $ 151,233,000 | $ 201,650,000 | |
Debt collateralized | 103,000,000 | |||
Debt instrument collateralized by restricted deposits | $ 7,600,000 | |||
Revolving line of credit [Member] | ||||
Debt Instrument Terms [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Final maturity date | Nov. 20, 2019 | |||
Line of credit | $ 0 | $ 0 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Jul. 27, 2018 |
Debt and Financing Arrangements [Abstract] | |||
Term note securitization 2018-1 | $ 92,346 | $ 151,233 | $ 201,650 |
Unamortized debt issuance costs | (607) | (1,178) | |
Long-term borrowings related to consolidated VIEs | $ 91,739 | $ 150,055 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Term note securitization (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Jul. 27, 2018 | ||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 92,346 | $ 151,233 | $ 201,650 | |
Original coupon rate | [1],[2] | 3.05% | ||
Class A-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 0 | 26,983 | 77,400 | |
Final maturity date | Jul. 31, 2019 | |||
Original coupon rate | 2.55% | |||
Class A-2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 23,796 | 55,700 | 55,700 | |
Final maturity date | Oct. 31, 2020 | |||
Original coupon rate | 3.05% | |||
Class A-3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 36,910 | 36,910 | 36,910 | |
Final maturity date | Apr. 30, 2023 | |||
Original coupon rate | 3.36% | |||
Class B [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 10,400 | 10,400 | 10,400 | |
Final maturity date | May 31, 2023 | |||
Original coupon rate | 3.54% | |||
Class C [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 11,390 | 11,390 | 11,390 | |
Final maturity date | Jun. 30, 2023 | |||
Original coupon rate | 3.70% | |||
Class D [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 5,470 | 5,470 | 5,470 | |
Final maturity date | Jul. 31, 2023 | |||
Original coupon rate | 3.99% | |||
Class E [Member] | ||||
Debt Instrument [Line Items] | ||||
Term note securitization | $ 4,380 | $ 4,380 | $ 4,380 | |
Final maturity date | May 31, 2025 | |||
Original coupon rate | 5.02% | |||
2018-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average coupon rate | 3.41% | |||
[1] | Represents the original weighted average initial coupon rate for all tranches of the securitization. In addition to this coupon interest, term note securitizations have other transaction costs which are amortized over the life of the borrowings as additional interest expense. | |||
[2] | The weighted average coupon rate of the 2018-1 term note securitization will approximate 3.41 % over the term of the borrowing. |
Debt and Financing Arrangemen_6
Debt and Financing Arrangements - Scheduled principal and interest payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Jul. 27, 2018 |
Maturities of Long-term Debt [Abstract] | |||
Remainder of 2019 | $ 14,935 | ||
Principal, 2020 | 45,200 | ||
Principal, 2021 | 23,629 | ||
Principal, 2022 | 8,582 | ||
Long-term borrowings, total | 92,346 | $ 151,233 | $ 201,650 |
Remainder of 2019 | 761 | ||
Interest, 2020 | 1,993 | ||
Interest, 2021 | 813 | ||
Interest, 2022 | 159 | ||
Total interest portion on long-term debt | $ 3,726 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total cash and cash equivalents | $ 132,461 | $ 97,156 | $ 88,448 | $ 67,146 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total cash and cash equivalents | $ 31,900 |
Fair Value Measurements and D_4
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 10,222 | $ 10,956 |
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 | 3,612 | 3,429 |
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 | 4,433 | 4,915 |
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 | $ 2,177 | $ 2,612 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures about the Fair Value of Financial Instruments (Estimated Fair Values and Carrying Amounts) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 27, 2018 | Dec. 31, 2017 |
Assets, Fair Value Disclosure [Abstract] | |||||
Total cash and cash equivalents | $ 132,461,000 | $ 97,156,000 | $ 88,448,000 | $ 67,146,000 | |
Time deposits with banks | 14,919,000 | 9,659,000 | |||
Restricted interest-earning deposits with banks | 7,576,000 | 14,045,000 | $ 10,049,000 | ||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Deposits | 869,257,000 | 755,776,000 | |||
Long-term borrowings | 91,739,000 | 150,055,000 | |||
Long-term borrowings | 92,346,000 | 151,233,000 | $ 201,650,000 | ||
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |||||
Assets, Fair Value Disclosure [Abstract] | |||||
Total cash and cash equivalents | 31,900,000 | ||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Assets, Fair Value Disclosure [Abstract] | |||||
Total cash and cash equivalents | 132,461,000 | 97,156,000 | |||
Time deposits with banks | 14,919,000 | 9,659,000 | |||
Restricted interest-earning deposits with banks | 7,576,000 | 14,045,000 | |||
Loans, net of allowance | 585,735,000 | 518,697,000 | |||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Deposits | 869,257,000 | 755,776,000 | |||
Long-term borrowings | 91,739,000 | 150,055,000 | |||
Servicing liability | 2,242,000 | 1,352,000 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Assets, Fair Value Disclosure [Abstract] | |||||
Total cash and cash equivalents | 132,461,000 | 97,156,000 | |||
Time deposits with banks | 14,973,000 | 9,614,000 | |||
Restricted interest-earning deposits with banks | 7,576,000 | 14,045,000 | |||
Loans, net of allowance | 593,238,000 | 515,754,000 | |||
Federal Reserve Bank Stock | 1,711,000 | 1,711,000 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||||
Deposits | 856,899,000 | 722,682,000 | |||
Long-term borrowings | 92,373,000 | 149,912,000 | |||
Servicing liability | $ 2,242,000 | $ 1,352,000 |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic [Abstract] | ||||||||
Net Income | $ 7,446 | $ 6,115 | $ 5,141 | $ 5,906 | $ 6,467 | $ 6,185 | $ 18,702 | $ 18,558 |
Less: net income allocated to participating securities | (89) | (98) | (237) | (332) | ||||
Net income allocated to common stock | $ 7,357 | $ 5,808 | $ 18,465 | $ 18,226 | ||||
Weighted average common shares outstanding | 12,203,086 | 12,423,769 | 12,290,906 | 12,426,240 | ||||
Less: Unvested restricted stock awards considered participating securities | (148,142) | (208,856) | (156,116) | (225,175) | ||||
Adjusted weighted average common shares used in computing basic EPS | 12,054,944 | 12,214,913 | 12,134,790 | 12,201,065 | ||||
Basic earnings per share | $ 0.61 | $ 0.48 | $ 1.52 | $ 1.49 | ||||
Earnings Per Share, Diluted [Abstract] | ||||||||
Net income allocated to common stock | $ 7,357 | $ 5,808 | $ 18,465 | $ 18,226 | ||||
Adjusted weighted average common shares used in computing basic EPS | 12,054,944 | 12,214,913 | 12,134,790 | 12,201,065 | ||||
Add: Effect of dilutive stock options | 113,018 | 81,813 | 94,186 | 68,013 | ||||
Adjusted weighted average common shares used in computing diluted EPS | 12,167,962 | 12,296,726 | 12,228,976 | 12,269,078 | ||||
Diluted earnings per share | $ 0.6 | $ 0.47 | $ 1.51 | $ 1.49 | ||||
Antidilutive securities excluded from computation of earnings per share amount | 157,952 | 135,401 | 172,473 | 138,893 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 01, 2019 | Dec. 31, 2018 | May 30, 2017 | |
Stock Repurchase [Abstract] | |||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||
Marlin Business Services Corp. [Member] | |||||||
Regulatory Capital Requirements Miscellaneous Information [Abstract] | |||||||
Total stockholders equity (regulatory) | $ 194,273 | $ 194,273 | |||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | |||||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |||||
Total Risk Based Capital to Risk Weighted Assets | 18.98% | 18.98% | |||||
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% | |||||
Marlin Business Bank [Member] | |||||||
Regulatory Capital Requirements Miscellaneous Information [Abstract] | |||||||
Total stockholders equity (regulatory) | $ 150,760 | $ 150,760 | |||||
Total Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 15.00% | 15.00% | |||||
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 | 16.94% | 16.94% | |||||
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 | 2.50% | 2.50% | 1.875% | ||||
Instrument Equity Compensation Plan [Member] | |||||||
Stock Repurchase [Abstract] | |||||||
Stock Repurchased During Period, Average Cost Per Share | $ 23.8 | $ 27.74 | $ 22.87 | $ 26.53 | |||
Stock Repurchased During Period, Shares | 2,654 | 7,324 | 22,100 | 27,746 | |||
2017 Stock Repurchase Plan [Member] | |||||||
Stock Repurchase [Abstract] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 | $ 0 | |||||
Stock Repurchased During Period, Average Cost Per Share | $ 23 | $ 28.56 | $ 23.24 | $ 28.43 | |||
Stock Repurchased During Period, Shares | 144,729 | 30,242 | 247,500 | 47,967 | |||
2019 Stock Repurchase Plan [Member] | |||||||
Stock Repurchase [Abstract] | |||||||
Stock Repurchase Program, Authorized Amount | $ 10,000 | ||||||
Stock Repurchased During Period, Shares | 0 |
Stockholders' Equity (Regulator
Stockholders' Equity (Regulatory Capital Ratios) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Marlin Business Services Corp. [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Tier One Leverage Capital | $ 194,273 |
Tier One Leverage Capital Required for Capital Adequacy | 50,849 |
Tier One Leverage Capital Required to be Well Capitalized | 63,561 |
Common Equity Tier One Risk Based Capital | 194,273 |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 49,338 |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 71,266 |
Tier One Risk Based Capital | 194,273 |
Tier One Risk Based Capital Required for Capital Adequacy | 65,784 |
Tier One Risk Based Capital Required to be Well Capitalized | 87,712 |
Total Risk Based Capital | 208,046 |
Total Risk Based Capital Required for Capital Adequacy | 87,712 |
Total Risk Based Capital Required to be Well Capitalized | $ 109,641 |
Tier One Leverage Capital to Average Assets | 15.28% |
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 | 17.72% |
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 | 17.72% |
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 | 18.98% |
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 | $ 150,760 |
Tier One Leverage Capital Required for Capital Adequacy | 54,705 |
Tier One Leverage Capital Required to be Well Capitalized | 54,705 |
Common Equity Tier One Risk Based Capital | 150,760 |
Common Equity Tier One Risk Based Capital Required For Capital Adequacy | 67,277 |
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized | 67,277 |
Tier One Risk Based Capital | 150,760 |
Tier One Risk Based Capital Required for Capital Adequacy | 81,693 |
Tier One Risk Based Capital Required to be Well Capitalized | 81,693 |
Total Risk Based Capital | 162,836 |
Total Risk Based Capital Required for Capital Adequacy | 144,164 |
Total Risk Based Capital Required to be Well Capitalized | $ 100,915 |
Tier One Leverage Capital to Average Assets | 13.78% |
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 | 15.69% |
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 | 15.69% |
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 | 16.94% |
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% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based Compensation Arrangements [Line Items] | ||||||||
Equity Compensation Plan, Aggregate Number of Shares Authorized | 826,036 | 826,036 | ||||||
Equity Compensation Plan, Number of Shares Available for Grant | 811,273 | 811,273 | ||||||
Number of Shares, Stock Options Granted | 0 | |||||||
Stock-based compensation recognized | $ 894 | $ 990 | $ 861 | $ 910 | $ 763 | $ 921 | $ 2,800 | $ 2,600 |
Stock Options Exercised, Number of Shares | 909 | 0 | ||||||
Tax Benefit from Stock-based Compensation | $ 100 | $ 300 | ||||||
Common Stock Closing Price Per Share | $ 25.19 | $ 25.19 | ||||||
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 | 0 | 68,689 | ||||
Stock-based compensation recognized | $ 100 | $ 100 | $ 300 | $ 200 | ||||
Stock Options Exercised, Number of Shares | 0 | 0 | ||||||
Stock Options Exercised, Total Intrinsic Value | 0 | $ 100 | ||||||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 300 | $ 300 | ||||||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 1 year | |||||||
Weighted average fair value of options granted | $ 0 | $ 7.21 | ||||||
Stock Options [Member] | Director [Member] | ||||||||
Stock-based Compensation Arrangements [Line Items] | ||||||||
Stock-based Awards, Vesting Period in Years | 1 year | |||||||
Stock Options [Member] | Minimum [Member] | ||||||||
Stock-based Compensation Arrangements [Line Items] | ||||||||
Stock-based Awards, Vesting Period in Years | 3 years | |||||||
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] | ||||||||
Stock-based compensation recognized | 200 | $ 300 | $ 700 | $ 1,100 | ||||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 1,600 | 1,600 | ||||||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 4 years 5 months | |||||||
Stock-based Awards Other Than Options, Subject to Performance Acceleration, Grants in Period | 0 | |||||||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 0 | |||||||
Stock-based Compensation Expense Due to Performance Acceleration | $ 100 | $ 300 | ||||||
Stock-based Awards Other than Options, Vested in Period, Total Fair Value | $ 200 | 700 | $ 1,300 | 2,500 | ||||
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 recognized | 600 | 600 | $ 1,700 | $ 1,300 | ||||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards | $ 3,900 | $ 3,900 | ||||||
Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Period for Recognition in Years | 1 year 7 months 6 days | |||||||
Stock-based Awards Other Than Options, Contingent on Performance, Grants in Period | 449,641 | |||||||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration | $ 3,700 | $ 3,700 | ||||||
Total Compensation Cost Not yet Recognized on Nonvested Stock-based Awards, Portion Subject to Acceleration, Period for Recognition, in Years | 1 year 7 months 6 days | |||||||
Stock-based Awards Other Than Options, Additional Grants Contingently Issuable | 181,926 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments RSUs Grants In Period Weighted Average Grant Date Fair Value | $ 12.91 | |||||||
Service-Based RSUs [Member] | ||||||||
Stock-based Compensation Arrangements [Line Items] | ||||||||
Stock-based Awards, Grants in Period, Aggregate Grant Date Fair Value | $ 0 | $ 0 | $ 3,400 | $ 2,400 | ||||
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) - $ / shares | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based Compensation Arrangements, Options, Outstanding [Roll Forward] | |||
Number of Shares Outstanding, Beginning of Period | 146,431 | ||
Number of Shares, Stock Options Granted | 0 | ||
Number of Shares, Stock Options Exercised | (909) | 0 | |
Number of Shares, Forfeited | (578) | ||
Number of Shares, Expired | (3,479) | ||
Number of Shares Outstanding, End of Period | 142,374 | ||
Weighted Average Exercise Price Per Share, Outstanding at Beginning of Period | $ 26.77 | ||
Weighted Average Exercise Price Per Share, Granted | 0 | ||
Weighted Average Exercise Price Per Share, Exercised | 0 | ||
Weighted Average Exercise Price Per Share, Forfeitures | 25.75 | ||
Weighted Average Exercise Price Per Share, Expired | 25.75 | ||
Weighted Average Exercise Price Per Share, Outstanding at End of Period | $ 26.8 | ||
Stock-based Compensation Arrangements [Abstract] | |||
Risk-free interest rate | 0.00% | 2.64% | |
Expected option life | 4 years 6 months | 4 years 6 months | |
Expected volatility | 0.00% | 32.32% | |
Dividend yield | 0.00% | 1.98% |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Stock Options Outstanding and Exercisable) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 142,374 | 146,431 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 11 months | |
Options Outstanding, Weighted Average Exercise Price | $ 26.8 | $ 26.77 |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 74,862 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 4 years 10 months | |
Options Exercisable, Weighted Average Exercise Price | $ 26.42 | |
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 | 82,353 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 6 months | |
Options Outstanding, Weighted Average Exercise Price | $ 25.75 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 54,861 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 4 years 6 months | |
Options Exercisable, Weighted Average Exercise Price | $ 25.75 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 | |
$28.25 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable, Lower Price in Range Category | $ 28.25 | |
Options Outstanding and Exercisable, Upper Price in Range Category | $ 28.25 | |
Options Outstanding, Number of Shares | 60,021 | |
Options Outstanding, Weighted Average Remaining Life (Years) | 5 years 6 months | |
Options Outstanding, Weighted Average Exercise Price | $ 28.25 | |
Options Outstanding, Aggregate Intrinsic Value | $ 0 | |
Options Exercisable, Number of Shares | 20,001 | |
Options Exercisable, Weighted Average Remaining Life (Years) | 5 years 6 months | |
Options Exercisable, Weighted Average Exercise Price | $ 28.25 | |
Options Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Non-Vested Restricted Stock Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 186,603 | |
Shares, Granted | 18,674 | |
Shares, Vested | (55,006) | |
Shares, Forfeited | (2,944) | |
Shares Outstanding, End of Period | 147,327 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 19.91 | |
Weighted Average Grant-Date Fair Value, Granted | 23.19 | |
Weighted Average Grant-Date Fair Value, Vested | 15.82 | |
Weighted Average Grant-Date Fair Value, Forfeited | 21.97 | |
Outstanding at End of Period | $ 21.81 | |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Risk-free interest rate | 0.00% | 2.64% |
Expected volatility | 0.00% | 32.32% |
Performance-Based and Market-Based RSUs [Member] | ||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 191,921 | |
Shares, Granted | 95,408 | |
Shares, Forfeited | (233) | |
Shares, Converted | (8,000) | |
Cancelled due to non-achievement of market condition | (4,000) | |
Shares Outstanding, End of Period | 275,096 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 17.43 | |
Weighted Average Grant-Date Fair Value, Granted | 18.37 | |
Weighted Average Grant-Date Fair Value, Forfeited | 25.75 | |
Weighted Average Grant-Date Fair Value, Converted | 9.47 | |
Weighted Average Grant-Date Fair Value, Cancelled due to non-achievement of market condition | 9.47 | |
Outstanding at End of Period | 18.1 | |
Stock-based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Grant date stock price | $ 21.5 | $ 0 |
Risk-free interest rate | 2.16% | 0.00% |
Expected volatility | 26.68% | 0.00% |
Service-Based RSUs [Member] | ||
Stock-based Compensation Arrangements, Restricted Stock, Nonvested [Roll Forward] | ||
Shares Outstanding, Beginning of Period | 61,256 | |
Shares, Granted | 74,620 | |
Shares, Forfeited | (4,311) | |
Shares, Converted | (22,509) | |
Shares Outstanding, End of Period | 109,056 | |
Weighted Average Grant-Date Fair Value, Outstanding at Beginning of Period | $ 27.61 | |
Weighted Average Grant-Date Fair Value, Granted | 21.5 | |
Weighted Average Grant-Date Fair Value, Forfeited | 23.84 | |
Weighted Average Grant-Date Fair Value, Converted | 27.47 | |
Outstanding at End of Period | $ 23.61 |
Subsequent Events (Narratives)
Subsequent Events (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Oct. 31, 2019 | May 30, 2017 | |
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 10 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Cash dividend declared on common stock, payable date | Nov. 21, 2019 | |
Cash dividend declared on common stock, date of record | Nov. 11, 2019 | |
Dividends Payable, Amount Per Share | $ 0.14 | |
Dividends Payable | $ 1.7 |