Marlin Business Services Corp. Reports Fourth Quarter and Year-End 2015 Earnings and Declares a Cash Dividend of $0.14 Per Share

Financial Highlights

• Full year net income before one-time costs associated with executive departures was $18.3 million with earnings per share of $1.44; fourth quarter net income before one-time costs associated with executive departures was $4.9 million with earnings per share of $0.40.
• Fourth quarter total originations were $107.9 million
• Full year return on average assets was 2.42% before one-time costs with ROE of 10.89%; fourth quarter return on average assets was 2.60% before one-time costs with  ROE of 13.26%
• Regular and special dividend of $2.53 per share for the full year
• Ending net investment in leases and loans was $682.4 million, up 8.4% over last year
• 594,760 shares and 188,041 shares were repurchased for the full year and quarter respectively

2015 Strategic Business Highlights

• Expanded sales capacity to 136 sales professionals by year-end, while keeping staff headcount relatively flat
• Made significant investments in new Franchise and Transportation lending channels
• Rolled out new working capital loan product (Funding Stream)
• Fourth quarter total originations were the highest in the history of the Company
• Year-end net investment in loans and leases was the highest since 2007

MOUNT LAUREL, N.J., Feb. 01, 2016 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. MRLN today reported fourth quarter 2015 net income of $3.0 million, or $0.24 per diluted share, compared to $4.9 million, or $0.38 per diluted share, for fourth quarter 2014.  Before one-time costs relating to the retirement of the CEO, fourth quarter 2015 net income was $4.9 million, or $0.40 per diluted share.

For the year ended December 31, 2015, net income was $16.0 million, or $1.25 per diluted share, compared to $19.4 million and $1.49 per diluted share for the year ended December 31, 2014.  Before one-time costs relating to the retirement of the CEO and the resignation of the CFO, 2015 net income was $18.3 million, or $1.44 per diluted share.

"We are excited to be gaining traction on our growth plans," said Ed Siciliano, Chief Sales Officer and Interim CEO. "2015 was a year of investment and, although impactful to short term earnings, that investment is starting to pay off as we see new originations accelerating.  We are also pleased with the performance of and growing customer demand for our Funding Stream loan product," said Siciliano.

Total lease and loan production for the fourth quarter of $107.6 million was the highest quarter in the history of the company and was 7.1% above the previous quarter.  Fourth quarter 2015 lease production was $103.9 million compared to $98.2 million in the third quarter of 2015 and $89.4 million in fourth quarter of 2014.  Full year lease and loan production was $381.1 million. Full year lease production was $374.2 million, up 11.8% year over year. 

Net interest and fee margin as a percentage of average finance receivables was 11.52% for the fourth quarter ended December 31, 2015, down 44 basis points from the third quarter of 2015 and down 96 basis points from a year ago. The decrease in margin percentage was a result of the downward repricing of assets, decline in fee income, change in mix, and slight increase in cost of funds. The Company's cost of funds increased to 98 basis points, compared to 89 basis points for the third quarter of 2015 and 86 basis points for the fourth quarter of 2014. The increase in cost of funds was due both to increasing leverage and increasing rates.

On a dollar basis, net interest and fee margin declined 1% to $76.3 million for the year ended December 31, 2015 versus $76.7 million for the year ended December 31, 2014.

The allowance for credit losses as a percentage of total finance receivables was 1.24% at December 31, 2015, and represents 266% of total 60+ day delinquencies.

Finance receivables over 30 days delinquent were 0.73% of the Company's total finance receivables portfolio as of December 31, 2015.  Finance receivables over 60 days delinquent were 0.41% of the Company's total finance receivables portfolio as of December 31, 2015, down 2 basis points from 0.43% at September 30, 2015.  Fourth quarter net charge-offs were 1.60% of average total finance receivables versus 1.23% for the third quarter ended September 30, 2015 and 1.56% a year ago.

The Company's efficiency ratio for the fourth quarter was 69.0% compared to an efficiency ratio of 53.8% for the quarter ended September 30, 2015 and 48.9% for the quarter ended December 31, 2014.  For the full year the efficiency ratio is 57.8% versus 50.4% at December 31, 2014. Efficiency ratios have increased in recent periods as we invest in new products offerings.

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.

In 2015, the Company purchased 594,760 shares of common stock under its stock repurchase program for $10.2 million (including commissions) for an average price of $17.09 per share. In the fourth quarter, the Company repurchased 188,041 shares for $3.2 million (including commissions) for an average price of $16.79 per share.

The Board of Directors of Marlin Business Services Corp. today declared a $0.14 per share quarterly dividend. The dividend is payable February 22, 2016, to shareholders of record on February 12, 2016. Based on the closing stock price on January 29, 2016, the annualized dividend yield on the Company's common stock is 3.57%.

Conference Call and Webcast
We will host a conference call on Tuesday, February 2, 2016 at 9:00 a.m. ET to discuss the Company's fourth quarter 2015 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 innovative equipment financing solutions for small and mid-size businesses. Since its inception in 1997, Marlin has financed a wide array of commercial equipment and software for a quarter of a million business customers. Marlin's mission is to offer convenient and cost-effective financing products while providing the highest level of customer service. Marlin is publicly traded MRLN and owns and operates a federally regulated commercial bank, Marlin Business Bank. For more information, 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.

Regulation G – Non-GAAP Financial Measures 
In this release the Company uses certain financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company defines net income on an adjusted basis as net income excluding the one-time after-tax charge due to the departure of Marlin's Chief Executive Officer and Chief Financial Officer. The Company believes that net income on an adjusted basis is a useful performance metric for management, investors and lenders, because it means to evaluate period-to-period comparisons of the Company's financial performance without the effects of certain adjustments in accordance with GAAP that may not necessarily be indicative of current operating performance.

Non-GAAP financial measures should not be considered as an alternative to GAAP financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.

Net Income on an Adjusted Basis is defined as net income excluding one-time charges related to the retirement of the Company's Chief Executive Officer and the resignation of the Company's Chief Financial Officer.