Exhibit 99.1
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 | | PRESS RELEASE |
Marlin Announces Relief From Capital Maintenance and Liquidity Agreement
Provides Business Update on Impact ofCOVID-19 Pandemic
MOUNT LAUREL, N.J., March 31, 2020 — Marlin Business Services Corp. (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), announced today the termination of its Capital Maintenance and Liquidity Agreement (the “CMLA Agreement”) with the Federal Deposit Insurance Corporation (the “FDIC”), and the FDIC’s rescission of certain nonstandard conditions in the FDIC’s original order granting federal deposit insurance to the Company’s wholly-owned subsidiary, Marlin Business Bank.
As a result of the termination of the CMLA Agreement, the Company’s consolidated capital maintenance requirements have been reduced going forward to the standard regulatory thresholds. Based on the termination of the CMLA Agreement, the Company’s capital requirements would have been reduced by approximately $30 million as of December 31, 2019.
Commenting on today’s announcement, Marlin’s President and CEO, Jeff Hilzinger, said, “We are very pleased with the FDIC’s decision to terminate our CMLA Agreement that has existed since the inception of Marlin Business Bank. We are a very well-capitalized institution and the termination of this agreement puts us in an even stronger position to serve our partners and customers as they deal with the effects of the pandemic.”
Marlin also announced that it has been carefully evaluating the emerging public health crisis and resulting economic impact resulting from theCOVID-19 outbreak. Beginning in early March, the Company started a series of proactive measures to protect its employees from the effects of theCOVID-19 pandemic and to manage its liquidity and capital position and portfolio performance.
Business Continuity
Throughout the week of March 16th, 2020, Marlin implemented its business continuity plan designed to allow the Company to continue operating as normal under extraordinary circumstances. Included in the plan is the ability for Marlin’s workforce to access systems remotely. Since Friday, March 20, 2020, Marlin’s entire workforce has been working remotely and all business-related employee travel has been suspended. Through the successful execution of the plan, Marlin has not experienced any interruption of its normal business operations.
Operational Response
The Company is continuing to support its customers and partners during theCOVID-19 pandemic. While the Company is still accepting applications for its equipment finance and working capital products, it has taken significant actions to protect the value of its portfolio. This includes limiting origination activities within certain high-risk industries, tightening underwriting criteria and tightening the process under which we acquire equipment from our partners on behalf of our customers. In addition, for existing customers and partners, Marlin has implemented several programs to help them weather the crisis, as appropriate.
Strong Liquidity Position
Marlin primarily funds its origination volume and portfolio through the issuance of FDIC-insured deposits issued by Marlin Business Bank, which is a Utah state-chartered Federal Reserve member bank. Over time, Marlin Business Bank has proven its ability to provide the Company with reliable access to funding through various market cycles. The brokered deposit market remains highly liquid and, through MBB, the Company is maintaining a strong liquidity position.
