Second Quarter Highlights:
- Total second quarter originations of $121.5 million, up 30% year-over-year
- Total Funding Stream loan originations of $7.9 million, up 24.9% from the prior quarter and nearly 15 times higher than a year ago
- Net income of $4.5 million, up 8% year over year, with EPS of $0.36 per share
- ROE increased 219 basis points from prior year to 11.66%
- Total new origination loan and lease yield of 11.78% increased 9 basis points from prior quarter and 66 basis points year-over-year
- Credit quality remained strong with 30+ and 60+ day delinquencies at 71 basis points and 43 basis points, respectively
- Net investment in leases and loans ended the quarter at $730.8 million, up 14.0% year-over-year
- Strong capital position with equity to assets ratio of 18.49%
- Hired Jeffrey Hilzinger as Chief Executive Officer; subsequent to the end of the quarter, the Company promoted Edward Siciliano to Chief Operating Officer
MOUNT LAUREL, N.J., July 28, 2016 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (NASDAQ:MRLN) today reported second quarter 2016 net income of $4.5 million, or $0.36 per diluted share, compared to $4.1 million, or $0.32 per diluted share, for the second quarter last year. Return on equity for the quarter was 11.66%, up from 9.47% a year ago.
“I am very pleased with Marlin’s second quarter results that included accelerating origination volume, excellent credit quality and solid net income growth,” commented Jeffrey Hilzinger, Marlin’s President and Chief Executive Officer. “Total originations increased 30.3% year-over-year to $121.5 million, and we have now achieved new records for origination volume in each of the last three quarters. We continue to benefit from last year’s strategic investments in expanding our sales force coupled with contributions from Funding Stream, our working capital loan product, and the Transportation and Franchise channel initiatives. Importantly, we are achieving this growth while maintaining our disciplined underwriting standards and strong overall credit quality, which remains a top priority at Marlin. In addition, second quarter net income of $4.5 million, or $0.36 per share, increased 22% compared to the prior quarter and 8% year-over-year driven by gains in revenue from the growth in earning assets along with careful expense management.”
Mr. Hilzinger concluded, “I look forward to building on the fundamental strengths of our business to take Marlin to the next level of growth and profitability. Our management team is energized, excited and working with a sense of urgency to capitalize on the significant opportunities we see as a provider of credit products and services to small businesses nationwide. With the recent changes in Marlin’s leadership, we are taking a fresh look at how we operate and how we empower our employees to better serve our customers. I believe that the actions we are taking today will help expand our market share and drive profitable growth in the quarters and years ahead.”
Results of Operations
Combined equipment finance and Funding Stream production for the second quarter ended June 30, 2016 of $121.5 million was the third consecutive quarter of record originations for the Company. Equipment finance production of $113.6 million in the second quarter was up 11.3% compared to $102.1 million in the prior quarter and increased 22.6% from $92.7 million in the second quarter of 2015. The Company also experienced solid Funding Stream production in the second quarter of 2016 totaling $7.9 million, up from $6.3 million in the first quarter of 2016 and $0.5 million in the same period a year ago. The strong performance in all channels was mainly attributable to the expansion and deployment of an energized and optimized salesforce and strategic investments in the expansion of the Company’s origination platforms.
Net interest and fee margin as a percentage of average finance receivables was 11.50% for the second quarter ended June 30, 2016, down 8 basis points from the first quarter of 2016 and down 55 basis points from a year ago. The decrease in margin percentage from a year ago was primarily a result of the roll-off of higher yielding assets, a decline in late fees and a slight increase in the Company’s cost of funds. The Company’s cost of funds increased to 105 basis points, compared to 100 basis points for the first quarter of 2016 and 85 basis points for the second quarter of 2015.
On an absolute basis, net interest and fee margin increased to $20.3 million for the quarter ended June 30, 2016, compared to $19.7 million for the prior quarter and $18.9 million for the second quarter last year.
Other income was $2.1 million for the second quarter of 2016, compared to $2.1 million in the prior quarter and $1.8 million in the second quarter last year. The increase in other income compared to the second quarter last year was primarily due to an increase in the number of contracts enrolled in the Company’s insurance program and a higher average ticket size. The second quarter also included an increase in various administrative transaction fees and fees received from referral of leases to third parties and gain on sale of leases, recognized as earned.
Other expenses were $12.5 million for the second quarter of 2016, compared to $12.7 million in the prior quarter and $11.6 million in the second quarter last year. The increase in other expenses compared to the second quarter last year was primarily due to higher salaries and benefits due to an increase in total personnel, and to a lesser extent higher general and administrative expense in the current quarter associated with marketing activities.
The Company’s efficiency ratio for the second quarter was 55.63% compared to 58.23% for the prior quarter and 56.19% in the second quarter last year.
Marlin recorded a provision for income taxes of $2.8 million for the second quarter of 2016, representing an effective tax of 38.1%, compared with $2.3 million or 38.9% for the preceding quarter and $2.6 million or 38.8% for the second quarter of 2015.
Credit Quality
Allowance for credit losses as a percentage of total finance receivables was 1.30% at June 30, 2016 versus 1.34% at June 20, 2015. Coverage of total 60+ day delinquencies was 265.78% at June 30, 2016 versus 295.52% at June 30, 2015.
Credit quality remained strong as finance receivables over 30 days delinquent were 0.71% of the Company’s total finance receivables portfolio as of June 30, 2016, up 1 basis point from June 30, 2015. Finance receivables over 60 days delinquent were 0.43% of the Company’s total finance receivables portfolio as of June 30, 2016, up 3 basis points from 0.40% at June 30, 2015. Second quarter net charge-offs were 1.38% of average total finance receivables versus 1.84% a year ago.
As of June 30, 2016 and 2015, the Company’s consolidated equity to assets ratio was 18.49% and 23.07%, respectively.
Corporate Developments
The Company has made several recent announcements regarding its senior leadership team. During the second quarter Marlin appointed commercial lending and equipment leasing industry veteran Jeffrey Hilzinger as Chief Executive Officer, effective June 1, 2016. Mr. Hilzinger also recently became President of Marlin. Prior to joining Marlin, Mr. Hilzinger was President of EverBank Commercial Finance, where he was responsible for a nationwide business focused on the equipment finance, asset-based lending and lender finance markets. Mr. Hilzinger led EverBank Commercial Finance’s growth into a $4 billion diversified commercial finance platform.
Subsequent to the end of the quarter, the Company announced the promotion of Edward Siciliano to Chief Operating Officer. Mr. Siciliano has been Marlin’s Chief Sales Officer since 2007 and served as Interim Chief Executive Officer from October 2015 until June 2016. In addition, the Company also announced that David Herring was hired as the Vice President of Sales of its Transportation Finance Group. In his position, Mr. Herring is responsible for national development of partnerships with heavy-duty truck dealerships. Prior to joining Marlin, Mr. Herring was Senior Vice President for GE Capital Transportation Finance.
The Board of Directors of Marlin Business Services Corp. today declared a $0.14 per share quarterly dividend. The dividend is payable August 18, 2016, to shareholders of record on August 8, 2016. Based on the closing stock price on July 27, 2016, the annualized dividend yield on the Company’s common stock is 3.09%.
In conjunction with this release, static pool loss statistics and a vintage delinquency analysis have been updated as supplemental information on the Investor Relations section of the Company’s website at www.marlincorp.com.
Business Outlook
The Company's business outlook for the full year ending December 31, 2016 is as follows:
- Full year origination volume (including both loans and leases) is expected to be in the range of $460 million to $480 million
- Credit quality is expected to remain strong with a continuation of recent positive trends
- Net interest margin is expected to move slightly lower in 2016 with the roll-off of higher yielding legacy leases, partially offset by expected growth in the Company’s higher yielding Funding Stream loan product
- Full year ROE is expected to continue to grow as new strategic initiatives gain traction and scale
Conference Call and Webcast
We will host a conference call on Friday, July 29, 2016 at 9:00 a.m. ET to discuss the Company’s second quarter 2016 results. If you wish to participate, please call 877-312-5414 approximately 10 minutes in advance of the call time. The conference ID will be: “Marlin.” The call will also be webcast on the Investor Relations page of the Company’s website, www.marlincorp.com. An audio replay will also be available on the Investor Relations section of Marlin’s website for approximately 45 days.
About Marlin Business Services Corp.
Marlin Business Services Corp. is a nationwide provider of commercial lending solutions for small and mid-size businesses. Through its wholly-owned operating subsidiary, Marlin Business Bank, Marlin provides innovative commercial financing programs. Our equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which includes manufacturers, distributors, independent dealers and brokers. Since its inception in 1997, Marlin has extended credit to over a quarter of a million business customers. Our mission is to offer convenient financing products while providing the highest level of personalized customer service. Marlin is publicly traded (MRLN). For more information about Marlin, visit www.marlincorp.com or call toll free at (888) 479-9111.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” “may,” “intend” and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others, affecting our business are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements. More detailed information about these factors is contained in our filings with the Securities and Exchange Commission, including the sections captioned “Risk Factors” and “Business” in the Company’s Form 10-K filed with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
| MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||
| June 30, | December 31, | |||||||||||
| 2016 | 2015 | |||||||||||
| (Dollars in thousands, except per-share data) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 3,463 | $ | 4,946 | ||||||||
| Interest-earning deposits with banks | 75,304 | 55,183 | ||||||||||
| Total cash and cash equivalents | 78,767 | 60,129 | ||||||||||
| Time deposits with banks | 9,108 | 7,368 | ||||||||||
| Restricted interest-earning deposits with banks | 26 | 216 | ||||||||||
| Securities available for sale (amortized cost of $6.4 million and $6.6 million at | ||||||||||||
| June 30, 2016 and December 31, 2015, respectively) | 6,336 | 6,399 | ||||||||||
| Net investment in leases and loans | 730,750 | 682,432 | ||||||||||
| Property and equipment, net | 3,736 | 3,872 | ||||||||||
| Property tax receivables | 5,381 | 47 | ||||||||||
| Other assets | 7,687 | 12,521 | ||||||||||
| Total assets | $ | 841,791 | $ | 772,984 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Deposits | $ | 650,429 | $ | 587,940 | ||||||||
| Other liabilities: | ||||||||||||
| Sales and property taxes payable | 6,948 | 2,686 | ||||||||||
| Accounts payable and accrued expenses | 13,778 | 15,371 | ||||||||||
| Net deferred income tax liability | 14,951 | 16,849 | ||||||||||
| Total liabilities | 686,106 | 622,846 | ||||||||||
| Stockholders’ equity: | ||||||||||||
| Preferred Stock, $0.01 par value; 5,000,000 shares authorized; none issued | — | — | ||||||||||
| Common Stock, $0.01 par value; 75,000,000 shares authorized; | ||||||||||||
| 12,539,581 and 12,410,899 shares issued and outstanding at June 30, 2016 | ||||||||||||
| and December 31, 2015, respectively | 125 | 124 | ||||||||||
| Additional paid-in capital | 82,518 | 81,703 | ||||||||||
| Stock subscription receivable | (2 | ) | (2 | ) | ||||||||
| Accumulated other comprehensive loss | (22 | ) | (129 | ) | ||||||||
| Retained earnings | 73,066 | 68,442 | ||||||||||
| Total stockholders’ equity | 155,685 | 150,138 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 841,791 | $ | 772,984 | ||||||||
| MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| (Dollars in thousands, except per-share data) | ||||||||||||||
| Interest income | $ | 18,187 | $ | 16,488 | $ | 35,718 | $ | 32,975 | ||||||
| Fee income | 3,969 | 3,727 | 7,803 | 7,847 | ||||||||||
| Interest and fee income | 22,156 | 20,215 | 43,521 | 40,822 | ||||||||||
| Interest expense | 1,857 | 1,336 | 3,549 | 2,654 | ||||||||||
| Net interest and fee income | 20,299 | 18,879 | 39,972 | 38,168 | ||||||||||
| Provision for credit losses | 2,668 | 2,216 | 5,743 | 5,556 | ||||||||||
| Net interest and fee income after provision for credit losses | 17,631 | 16,663 | 34,229 | 32,612 | ||||||||||
| Other income: | ||||||||||||||
| Insurance income, net | 1,570 | 1,358 | 3,192 | 2,824 | ||||||||||
| Other income | 493 | 399 | 948 | 764 | ||||||||||
| Other income | 2,063 | 1,757 | 4,140 | 3,588 | ||||||||||
| Other expense: | ||||||||||||||
| Salaries and benefits | 7,812 | 7,265 | 16,012 | 14,232 | ||||||||||
| General and administrative | 4,628 | 4,330 | 9,093 | 8,423 | ||||||||||
| Financing related costs | 34 | 42 | 68 | 150 | ||||||||||
| Other expenses | 12,474 | 11,637 | 25,173 | 22,805 | ||||||||||
| Income before income taxes | 7,220 | 6,783 | 13,196 | 13,395 | ||||||||||
| Income tax expense | 2,752 | 2,634 | 5,077 | 5,191 | ||||||||||
| Net income | $ | 4,468 | $ | 4,149 | $ | 8,119 | $ | 8,204 | ||||||
| Basic earnings per share | $ | 0.36 | $ | 0.32 | $ | 0.65 | $ | 0.64 | ||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.32 | $ | 0.65 | $ | 0.64 | ||||||
| Cash dividends declared per share | $ | 0.14 | $ | 0.125 | $ | 0.28 | $ | 0.25 | ||||||
| SUPPLEMENTAL QUARTERLY DATA | ||||||||||||||||
| (Dollars in thousands, except share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Quarter Ended: | 6/30/2015 | 9/30/2015 | 12/31/2015 | 3/31/2016 | 6/30/2016 | |||||||||||
| Net Income: | ||||||||||||||||
| Net Income | $ | 4,149 | $ | 4,797 | $ | 2,965 | $ | 3,651 | $ | 4,468 | ||||||
| Annualized Performance Measures: | ||||||||||||||||
| Return on Average Assets | 2.18 | % | 2.51 | % | 1.56 | % | 1.88 | % | 2.19 | % | ||||||
| Return on Average Stockholders' Equity | 9.47 | % | 10.95 | % | 7.96 | % | 9.74 | % | 11.66 | % | ||||||
| EPS Data: | ||||||||||||||||
| Net Income Allocated to Common Stock | $ | 4,031 | $ | 4,661 | $ | 2,891 | $ | 3,548 | $ | 4,339 | ||||||
| Number of Shares - Basic | 12,450,283 | 12,406,767 | 12,118,789 | 12,120,934 | 12,136,660 | |||||||||||
| Basic Earnings per Share | $ | 0.32 | $ | 0.38 | $ | 0.24 | $ | 0.29 | $ | 0.36 | ||||||
| Number of Shares - Diluted | 12,464,638 | 12,413,497 | 12,128,613 | 12,126,812 | 12,143,181 | |||||||||||
| Diluted Earnings per Share | $ | 0.32 | $ | 0.38 | $ | 0.24 | $ | 0.29 | $ | 0.36 | ||||||
| Cash Dividends Declared per share | $ | 0.125 | $ | 2.14 | $ | 0.14 | $ | 0.14 | $ | 0.14 | ||||||
| New Asset Production: | ||||||||||||||||
| Equipment Finance | $ | 92,709 | $ | 99,653 | $ | 104,263 | $ | 102,092 | $ | 113,615 | ||||||
| Funding Stream Loans | $ | 532 | $ | 2,242 | $ | 3,670 | $ | 6,301 | $ | 7,873 | ||||||
| Total New Originations | $ | 93,241 | $ | 101,895 | $ | 107,933 | $ | 108,393 | $ | 121,488 | ||||||
| Implicit Yield on Equipment Finance Originations | 11.00 | % | 10.43 | % | 10.64 | % | 10.30 | % | 10.20 | % | ||||||
| Implicit Yield on Funding Stream Loan Originations | 32.43 | % | 36.19 | % | 32.15 | % | 34.17 | % | 34.72 | % | ||||||
| Total Implicit Yield on New Originations | 11.12 | % | 10.99 | % | 11.37 | % | 11.69 | % | 11.78 | % | ||||||
| Assets sold in the period | $ | 606 | $ | 1,394 | $ | 317 | $ | 0 | $ | 2,707 | ||||||
| # of Sales Reps - Total | 127 | 131 | 136 | 136 | 139 | |||||||||||
| # of Leases / Loans Equipment Finance | 6,366 | 6,476 | 6,625 | 6,316 | 6,681 | |||||||||||
| Equipment Finance Approval Percentage | 64 | % | 66 | % | 62 | % | 62 | % | 58 | % | ||||||
| Average Monthly Equipment Finance Sources | 1,143 | 1,106 | 1,109 | 1,075 | 1,138 | |||||||||||
| Net Interest and Fee Margin: | ||||||||||||||||
| Interest Income Equipment Finance | $ | 16,361 | $ | 16,489 | $ | 16,598 | $ | 16,808 | $ | 17,152 | ||||||
| Interest Income Funding Stream Loans | $ | 48 | $ | 123 | $ | 316 | $ | 618 | $ | 930 | ||||||
| Interest Income Yield | 10.52 | % | 10.41 | % | 10.35 | % | 10.32 | % | 10.30 | % | ||||||
| Fee Income Yield | 2.38 | % | 2.44 | % | 2.15 | % | 2.26 | % | 2.25 | % | ||||||
| Interest and Fee Income Yield | 12.90 | % | 12.85 | % | 12.50 | % | 12.58 | % | 12.55 | % | ||||||
| Cost of Funds | 0.85 | % | 0.89 | % | 0.98 | % | 1.00 | % | 1.05 | % | ||||||
| Net Interest and Fee Margin | 12.05 | % | 11.96 | % | 11.52 | % | 11.58 | % | 11.50 | % | ||||||
| Average Total Finance Receivables | $ | 627,079 | $ | 641,020 | $ | 656,942 | $ | 679,252 | $ | 706,039 | ||||||
| Average Net Investment Equipment Finance | $ | 626,622 | $ | 639,713 | $ | 653,497 | $ | 672,198 | $ | 695,683 | ||||||
| Average Funding Stream Loans | $ | 457 | $ | 1,307 | $ | 3,445 | $ | 7,054 | $ | 10,356 | ||||||
| End of Period Net Investment Equipment Finance | $ | 640,444 | $ | 656,796 | $ | 677,491 | $ | 693,510 | $ | 718,631 | ||||||
| End of Period Funding Stream Loans | $ | 638 | $ | 2,457 | $ | 4,941 | $ | 8,616 | $ | 12,119 | ||||||
| Portfolio Asset Quality: | ||||||||||||||||
| Total Finance Receivables | ||||||||||||||||
| 30+ Days Past Due Delinquencies | 0.70 | % | 0.75 | % | 0.73 | % | 0.85 | % | 0.71 | % | ||||||
| 30+ Days Past Due Delinquencies | $ | 5,053 | $ | 5,562 | $ | 5,618 | $ | 6,698 | $ | 5,850 | ||||||
| 60+ Days Past Due Delinquencies | 0.40 | % | 0.43 | % | 0.41 | % | 0.52 | % | 0.43 | % | ||||||
| 60+ Days Past Due Delinquencies | $ | 2,899 | $ | 3,186 | $ | 3,163 | $ | 4,114 | $ | 3,548 | ||||||
| Equipment Finance | ||||||||||||||||
| 30+ Days Past Due Delinquencies | 0.70 | % | 0.75 | % | 0.74 | % | 0.86 | % | 0.72 | % | ||||||
| 30+ Days Past Due Delinquencies | $ | 5,053 | $ | 5,562 | $ | 5,618 | $ | 6,698 | $ | 5,850 | ||||||
| 60+ Days Past Due Delinquencies | 0.40 | % | 0.43 | % | 0.41 | % | 0.53 | % | 0.44 | % | ||||||
| 60+ Days Past Due Delinquencies | $ | 2,899 | $ | 3,186 | $ | 3,163 | $ | 4,114 | $ | 3,548 | ||||||
| Funding Stream Loans | ||||||||||||||||
| 30+ Days Past Due Delinquencies | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
| 30+ Days Past Due Delinquencies | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
| Net Charge-offs - Total Finance Receivables | $ | 2,880 | $ | 1,965 | $ | 2,628 | $ | 2,297 | $ | 2,429 | ||||||
| % on Average Total Finance Receivables | ||||||||||||||||
| Annualized | 1.84 | % | 1.23 | % | 1.60 | % | 1.35 | % | 1.38 | % | ||||||
| Net Charge-offs - Equipment Finance | $ | 2,880 | $ | 1,952 | $ | 2,628 | $ | 2,220 | $ | 2,331 | ||||||
| % on Average Net Investment in Equipment Finance | ||||||||||||||||
| Annualized | 1.84 | % | 1.22 | % | 1.61 | % | 1.32 | % | 1.34 | % | ||||||
| Net Charge-offs - Funding Stream Loans | $ | 0 | $ | 13 | $ | 0 | $ | 77 | $ | 98 | ||||||
| % of Average Funding Stream Loans | ||||||||||||||||
| Annualized | n/a | 4.11 | % | n/a | 4.39 | % | 3.77 | % | ||||||||
| Total Allowance for Credit Losses | $ | 8,567 | $ | 8,588 | $ | 8,413 | $ | 9,191 | $ | 9,430 | ||||||
| % of Total Finance Receivables | 1.34 | % | 1.31 | % | 1.24 | % | 1.31 | % | 1.30 | % | ||||||
| % of 60+ Delinquencies | 295.52 | % | 269.55 | % | 265.98 | % | 223.41 | % | 265.78 | % | ||||||
| Allowance for Credit Losses - Equipment Finance | $ | 8,545 | $ | 8,518 | $ | 8,239 | $ | 8,906 | $ | 8,926 | ||||||
| % of Net Investment Equipment Finance | 1.34 | % | 1.30 | % | 1.22 | % | 1.29 | % | 1.25 | % | ||||||
| % of 60+ Delinquencies | 294.75 | % | 267.37 | % | 260.49 | % | 216.47 | % | 251.58 | % | ||||||
| Allowance for Credit Losses - Funding Stream Loans | $ | 22 | $ | 69 | $ | 174 | $ | 285 | $ | 503 | ||||||
| % of Total Funding Stream Loans | 3.45 | % | 2.80 | % | 3.49 | % | 3.26 | % | 4.03 | % | ||||||
| % of 60+ Delinquencies | n/a | n/a | n/a | n/a | n/a | |||||||||||
| 90+ Day Delinquencies (Non-earning total finance receivables) | $ | 1,433 | $ | 1,684 | $ | 1,677 | $ | 2,352 | $ | 1,771 | ||||||
| Expense Ratios: | ||||||||||||||||
| Salaries and Benefits Expense | $ | 7,265 | $ | 7,058 | $ | 9,884 | $ | 8,200 | $ | 7,812 | ||||||
| Salaries and Benefits Expense | ||||||||||||||||
| Annualized % of Avg. Fin. Recbl. | 4.63 | % | 4.40 | % | 6.02 | % | 4.83 | % | 4.43 | % | ||||||
| Total personnel end of quarter | 302 | 307 | 314 | 309 | 315 | |||||||||||
| General and Administrative Expense | $ | 4,330 | $ | 4,357 | $ | 4,671 | $ | 4,465 | $ | 4,628 | ||||||
| General and Administrative Expense | ||||||||||||||||
| Annualized % of Avg. Fin. Recbl. | 2.76 | % | 2.72 | % | 2.84 | % | 2.63 | % | 2.62 | % | ||||||
| Efficiency Ratio | 56.19 | % | 53.81 | % | 68.99 | % | 58.23 | % | 55.63 | % | ||||||
| Balance Sheet: | ||||||||||||||||
| Assets | ||||||||||||||||
| Investment in Leases and Loans | $ | 639,333 | $ | 657,143 | $ | 679,737 | $ | 699,672 | $ | 727,707 | ||||||
| Initial Direct Costs and Fees | 10,316 | 10,697 | 11,108 | 11,645 | 12,473 | |||||||||||
| Reserve for Credit Losses | (8,567 | ) | (8,588 | ) | (8,413 | ) | (9,191 | ) | (9,430 | ) | ||||||
| Net Investment in Leases and Loans | $ | 641,082 | $ | 659,252 | $ | 682,432 | $ | 702,126 | $ | 730,750 | ||||||
| Cash and Cash Equivalents | 90,740 | 105,218 | 60,129 | 65,093 | 78,767 | |||||||||||
| Restricted Cash | 543 | 389 | 216 | 112 | 26 | |||||||||||
| Other Assets | 32,607 | 25,595 | 30,207 | 33,775 | 32,248 | |||||||||||
| Total Assets | $ | 764,972 | $ | 790,454 | $ | 772,984 | $ | 801,106 | $ | 841,791 | ||||||
| Liabilities | ||||||||||||||||
| Deposits | 554,190 | 579,625 | 587,940 | 612,721 | 650,429 | |||||||||||
| Other Liabilities | 34,292 | 59,515 | 34,906 | 35,909 | 35,677 | |||||||||||
| Total Liabilities | $ | 588,482 | $ | 639,140 | $ | 622,846 | $ | 648,630 | $ | 686,106 | ||||||
| Stockholders' Equity | ||||||||||||||||
| Common Stock | $ | 128 | $ | 126 | $ | 124 | $ | 125 | $ | 125 | ||||||
| Paid-in Capital, net | 86,723 | 84,002 | 81,701 | 82,054 | 82,516 | |||||||||||
| Other Comprehensive Income (Loss) | (75 | ) | (27 | ) | (129 | ) | (49 | ) | (22 | ) | ||||||
| Retained Earnings | 89,714 | 67,213 | 68,442 | 70,346 | 73,066 | |||||||||||
| Total Stockholders' Equity | $ | 176,490 | $ | 151,314 | $ | 150,138 | $ | 152,476 | $ | 155,685 | ||||||
| Total Liabilities and | ||||||||||||||||
| Stockholders' Equity | $ | 764,972 | $ | 790,454 | $ | 772,984 | $ | 801,106 | $ | 841,791 | ||||||
| Capital and Leverage: | ||||||||||||||||
| Equity | $ | 176,490 | $ | 151,314 | $ | 150,138 | $ | 152,476 | $ | 155,685 | ||||||
| Debt to Equity | 3.14 | 3.83 | 3.92 | 4.02 | 4.18 | |||||||||||
| Equity to Assets | 23.07 | % | 19.14 | % | 19.42 | % | 19.03 | % | 18.49 | % | ||||||
| Regulatory Capital Ratios: | ||||||||||||||||
| Tier 1 Leverage Capital | 23.07 | % | 19.72 | % | 19.63 | % | 19.39 | % | 18.90 | % | ||||||
| Common Equity Tier 1 Risk-based Capital | 25.72 | % | 21.54 | % | 20.86 | % | 20.51 | % | 20.14 | % | ||||||
| Tier 1 Risk-based Capital | 25.72 | % | 21.54 | % | 20.86 | % | 20.51 | % | 20.14 | % | ||||||
| Total Risk-based Capital | 26.97 | % | 22.76 | % | 22.02 | % | 21.74 | % | 21.36 | % | ||||||
| Notes: | ||||||||||||||||
| Net investment in total finance receivables includes net investment in direct financing leases and loans. | ||||||||||||||||
| Equipment Finance consists of equipment leases and loans. | ||||||||||||||||
| Funding Stream Loans consist of small business loans. | ||||||||||||||||