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PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Marlin Reports First Quarter 2019 Earnings and Declares a Cash Dividend of $0.14 Per Share

May 2, 2019

First Quarter Summary:

-- Net income of $5.1 million, or $0.41 per diluted share down from $6.2 million, or $0.50 per diluted share a year ago -- Net Investment in Leases and Loans totaled $1.0 billion, up 9.9% from a year ago, and total managed assets ended the first quarter at $1.2 billion, up 19.1% from a year ago -- Total sourced origination volume of $208.4 million, up 27.1% year-over-year; Direct origination volume of $43.6 million, up 41.1% year-over-year -- Total origination yield of 12.76%, up 40 basis points from the prior quarter and up 32 basis points year-over-year -- Annualized net charge-offs of 1.83%, compared with 2.30% in the prior quarter and 1.68% in the first quarter last year -- Equity to assets ratio decreased to 16.17%, compared with 17.17% in the first quarter last year

MOUNT LAUREL, N.J., May 02, 2019 (GLOBE NEWSWIRE) -- Marlin (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), today reported first quarter 2019 net income of $5.1 million, or $0.41 per diluted share, compared with net income of $6.2 million, or $0.50 per share a year ago. First quarter net income on an adjusted basis was $5.0 million, or $0.40 per diluted share, compared with $6.2 million or $0.50 per diluted share a year ago.

Commenting on the Company’s results, Jeffrey A. Hilzinger, Marlin’s President and CEO, said, “We enjoyed a solid start to 2019 as strong execution delivered excellent origination volume growth and stable portfolio performance. First quarter total sourced origination volume was $208.4 million, up 27.1% year-over-year, and a record for a first quarter. Growth in the quarter was driven by increased customer demand for both our Equipment Finance and Working Capital Loan products and was strong in both our Direct and Indirect origination channels. We also referred or sold $56.5 million of leases and loans as part of our capital markets initiatives. Because of these origination and capital markets activities, our Net Investment in Leases and Loans is now consistently in excess of $1 billion and up 10% from a year ago. Total managed assets, which includes both our balance sheet portfolio and assets we sell but continue to service for others, grew to more than $1.2 billion, an increase of 19.1% from the first quarter last year. In addition, our focus on maintaining disciplined underwriting standards continues to be a top priority and portfolio performance during the quarter was stable and within expectations.”

Mr. Hilzinger concluded, “First quarter net income of $0.41 per diluted share was negatively impacted by $0.04 because of the timing of expense recognition due to the adoption of a new lease accounting standard. We expect the timing impact to normalize over the course of the year and we continue to expect earnings to be more heavily-weighted towards the second half of 2019, as our recent investments in our salesforce continue to generate returns. Importantly, we are affirming our previously issued earnings guidance for the full year.”

Results of OperationsTotal sourced origination volume for the first quarter of $208.4 million was up 27.1% from a year ago. Direct origination volume of $43.6 million in the first quarter was up 41.1% from $30.9 million in the first quarter of 2018. Indirect origination volume in the first quarter of 2019 was $149.9 million, up 16.3% from $128.8 million in the first quarter last year. Assets originated for sale in the first quarter of $11.3 million compared with none in the first quarter last year. Referral volume totaled $3.6 million, down from $4.2 million in the first quarter last year.

Net interest and fee margin as a percentage of average finance receivables was 9.59% for the first quarter, down 17 basis points from the fourth quarter of 2018 and down 84 basis points from a year ago. The year-over-year decrease in margin percentage was primarily a result of an increase in interest expense resulting from the higher cost of funds associated with the securitization that was executed in the second half of 2018, partially offset by an increase of 32 basis points in new origination loan and lease yield. The Company’s interest expense as a percent of average total finance receivables increased to 239 basis points in the first quarter of 2019 compared with 220 basis points for the fourth quarter of 2018 and 149 basis points for the first quarter of 2018. The sequential quarter increase was primarily due to an increase in deposits costs, while the year-over-year increase was due to a higher cost of funds associated with both deposits and long-term borrowings from the securitization.

On an absolute basis, net interest and fee income was $24.0 million for the first quarter of 2019 compared with $23.8 million for the first quarter last year.

Non-interest income was $12.9 million for the first quarter of 2019, compared with $7.1 million in the prior quarter and $5.2 million in the prior year period. The increase compared with the prior and year-ago quarters is primarily due to the Company’s January 1, 2019 adoption of ASC 842 – Lease Accounting, which increased non-interest income by $5.6 million, as certain lessor costs, including property taxes that are paid by the lessee to the lessor are required to be presented gross in the consolidated statement of operations. To a lesser extent, the increase was due to an increase in gains-on-sale and an increase in insurance-related income. Non-interest expense was $24.8 million for the first quarter of 2019, compared with $16.4 million in the prior quarter and $16.6 million in the first quarter last year. The increase in non-interest expense compared with the prior and year-ago quarters was primarily due to the aforementioned adoption of ASC 842, which increased non-interest expense by $6.2 million due to the change in presentation of property taxes paid by the lessee to the lessor gross in the consolidated statement of operations.

The Company’s efficiency ratio for the first quarter was 67.2% compared with 57.1% in the first quarter last year. The Company’s non-GAAP efficiency ratio for the first quarter was 57.8% compared with 55.8% in the first quarter last year. Marlin expects its efficiency ratio to improve in the remainder of 2019 as the Company continues to generate returns from recent investments in sales and marketing, leverages its fixed costs through continued portfolio growth and generates continued operational efficiencies through its various process improvement activities.

Marlin recorded an income tax expense of $1.6 million, representing an effective tax rate of 23.8% for the first quarter of 2019, compared with an income tax expense of $1.7 million, representing an effective tax rate of 21.4%, for the first quarter of 2018.

Portfolio PerformanceAllowance for credit losses as a percentage of total finance receivables was 1.66% at March 31, 2019 relatively consistent with 1.62% at December 31, 2018 and 1.68% at March 31, 2018.

Finance receivables over 30 days delinquent were 1.11% of the Company’s total finance receivables portfolio as of March 31, 2019, up 2 basis points from December 31, 2018 and up 6 basis points from March 31, 2018. Finance receivables over 60 days delinquent were 0.66% of the Company’s total finance receivables portfolio as of March 31, 2019, up 1 basis point from December 31, 2018 and up 2 basis points from March 31, 2018. Annualized first quarter net charge-offs were 1.83% of average total finance receivables versus 2.30% in the fourth quarter of 2018 and 1.68% a year ago.

As of March 31, 2019, the Company’s consolidated equity to assets ratio was 16.17%. This compares to 17.01% and 17.17%, in the prior quarter and year ago quarter, respectively.

Corporate DevelopmentsOn February 7, 2019 the Company announced the launch of its new brand, Marlin Capital Solutions, to better reflect the breadth of services it offers to small businesses and equipment finance partners. The new brand reflects Marlin’s transformation and serves to inform existing and prospective customers and partners that the company isn’t just a source of capital, but a source of solutions. The transformation is accompanied by a new logo, website, and tagline.

Marlin’s Board of Directors today declared a $0.14 per share quarterly dividend. The dividend is payable May 23, 2019, to shareholders of record on May 13, 2019. Based on the closing stock price on May 1, 2019, the annualized dividend yield on the Company’s common stock is 2.57%.

Business Outlook The Company is affirming its previously issued guidance for the full year ending December 31, 2019 as follows:

-- Total Sourced Origination volume is expected to finish approximately 20% above 2018 levels -- Portfolio performance is expected to remain in line with the results observed over the last 12 months -- Net interest and fee margin, as a percentage of average finance receivables, is expected to be between 9.5% and 10.0% -- ROE is expected to continue to improve in 2019 as the Company continues to improve operating scale -- Adjusted EPS is expected to be between $2.30 and $2.40 per share

Conference Call and Webcast Marlin will host a conference call on Friday, May 3, 2019 at 9:00 a.m. ET to discuss the Company’s first quarter 2019 results. The conference call details are as follows:

First Quarter 2019 Financial Results Conference Call

Date: Friday, May 3, 2019 Time: 9:00 a.m. Eastern Time / 6:00 a.m. Pacific Time Dial-in: 1-877-407-0792 (Domestic) 1-201-689-8263 (International) Conference ID: 13689688 Webcast: http://public.viavid.com/index.php?id=134034

For those unable to participate during the live broadcast, a replay of the call will also be available from 7:30 p.m. Eastern Time on May 3, 2019 through 11:59 p.m. Eastern Time on May 17, 2019 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13689688.

About MarlinMarlin is a nationwide provider of capital solutions to small businesses with a mission of helping small businesses fulfill their American dream. Our products and services are offered directly to small businesses and through financing programs with independent equipment dealers and other intermediaries. For more information about Marlin, visit marlincapitalsolutions.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 an after-tax charge related to a reserve for restitution in connection with certain payment processing practices in effect prior to February 2016 and charges for associated legal and consulting fees, the after-tax hurricane credit and insurance loss reserves, the after-tax executive severance, and the net tax benefit from the tax cut and jobs act, as applicable. The Company defines diluted earnings per share on an adjusted basis, return on average assets on an adjusted basis and return on average equity on an adjusted basis as the calculation used for the “as reported” number substituting net income as reported with net income on an adjusted basis while using the same denominator in the “as reported” number, where appropriate. The Company defines efficiency ratio on an adjusted basis as the calculation used for the “as reported” ratio adjusting the numerator for the reserve for restitution in connection with certain payment processing practices in effect prior to February 2016, hurricane insurance loss reserves, executive severance, certain acquisition related expenses, and the impact of pass-through lease expenses that are required to be presented on a gross basis in the income statement, as applicable. The Company adjusts the denominator in the “as reported” ratio for pass-through lease revenue that is required to be presented on a gross basis in the income statement, as applicable. The Company believes that these non-GAAP measures are useful performance metrics for management, investors and lenders, because it provides a 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.

Investor Contacts:Mike BoganskySenior Vice President & Chief Financial Officer856-505-4108

Lasse GlassenAddo Investor Relations lglassen@addoir.com 424-238-6249

---Tables to Follow--

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) March 31, December 31, - ----------- ----------- 2019 2017 - --------- - --------- - (Dollars in thousands, except per-share data) ASSETS Cash and due from banks $ 4,737 $ 5,088 Interest-earning deposits with banks 136,215 92,068 - --------- - - --------- - Total cash and cash equivalents 140,952 97,156 Time deposits with banks 11,239 9,659 Restricted interest-earning deposits (includes $9.1 and $10.0 million at March 13,174 14,045 31, 2019, and December 31, 2018, respectively, related to consolidated VIEs) Investment securities (amortized cost of $10.8 million and $11.2 million at 10,676 10,956 March 31, 2019 and December 31, 2018, respectively) Net investment in leases and loans: Leases 480,766 489,299 Loans 559,306 527,541 --------- - --------- - Net investment in leases and loans, excluding allowance for credit losses 1,040,072 1,016,840 (includes $129.4 million and $150.2 million at March 31, 2019 and December 31, 2018, respectively, related to consolidated VIEs) Allowance for credit losses (16,882 ) (16,100 ) --------- - --------- - Total net investment in leases and loans 1,023,190 1,000,740 Intangible assets 8,149 7,912 Goodwill 6,735 7,360 Operating lease right-of-use assets 6,048 — Property and equipment, net 3,992 4,317 Property tax receivables 9,133 5,245 Other assets 13,437 9,656 - - Total assets $ 1,246,725 $ 1,167,046 - --------- - - --------- - LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits $ 840,167 $ 755,776 Long-term borrowings related to consolidated VIEs 129,171 150,055 Operating lease liabilities 9,104 — Other liabilities: Sales and property taxes payable 8,590 3,775 Accounts payable and accrued expenses 34,105 36,369 Net deferred income tax liability 23,938 22,560 Total liabilities 1,045,075 968,535 - --------- - - --------- - 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; 12,349,076 and 12,367,724 shares issued and outstanding at March 31, 2019 and 123 124 December 31, 2018, respectively Additional paid-in capital 83,215 83,498 Stock subscription receivable (2 ) (2 ) Accumulated other comprehensive loss (4 ) (44 ) Retained earnings 118,318 114,935 - --------- - - --------- - Total stockholders’ equity 201,650 198,511 Total liabilities and stockholders’ equity $ 1,246,725 $ 1,167,046 - --------- - - --------- -

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, ------------------- 2019 2018 -------- -------- (Dollars in thousands, except per-share data) Interest income $ 25,883 $ 23,279 Fee income 4,042 3,959 - ------ - ------ Interest and fee income 29,925 27,238 Interest expense 5,962 3,399 - ------ - ------ Net interest and fee income 23,963 23,839 Provision for credit losses 5,363 4,612 - ------ - ------ Net interest and fee income after provision for credit losses 18,600 19,227 - ------ - ------ Non-interest income: Insurance premiums written and earned 2,132 1,939 Other income 10,816 3,295 - ------ - ------ Non-interest income 12,948 5,234 - ------ - ------ Non-interest expense: Salaries and benefits 11,451 10,023 General and administrative 13,354 6,571 - ------ - ------ Non-interest expense 24,805 16,594 - ------ - ------ Income before income taxes 6,743 7,867 Income tax expense 1,602 1,682 - ------ - ------ Net income $ 5,141 $ 6,185 - ------ - ------ Basic earnings per share $ 0.42 $ 0.50 Diluted earnings per share $ 0.41 $ 0.50

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended March 31, ---------------------- 2019 2018 - ------ - - ------ - (Dollars in thousands, except per-share data) (Unaudited) Net income as reported $ 5,141 $ 6,185 - ------ - - ------ - Deduct: Reversal of charges in connection with executive separation 218 - Tax effect (56 ) - - ------ - - ------ - Reversal of charges in connection with executive separation, net of tax 162 - Net Income on an adjusted basis $ 4,979 $ 6,185 - ------ - - ------ - Diluted earnings per share as reported $ 0.41 $ 0.50 Diluted earnings per share on an adjusted basis $ 0.40 $ 0.50 Return on Average Assets as reported 1.70 % 2.37 % Return on Average Assets on an adjusted basis 1.64 % 2.37 % Return on Average Equity as reported 10.45 % 13.69 % Return on Average Equity on an adjusted basis 10.12 % 13.69 % Efficiency Ratio numerator as reported $ 24,805 $ 16,594 - ------ - - ------ - Adjustments to Numerator: Expense adjustments as seen in Net Income reconciliation above 218 - Acquisition related expenses (716 ) (365 ) Pass-through expenses (6,233 ) - Efficiency ratio numerator on an adjusted basis $ 18,074 $ 16,229 - ------ - - ------ - Adjustments to Denominator: Efficiency Ratio denominator as reported $ 36,911 $ 29,073 - ------ - - ------ - Pass-through revenue (5,643 ) - Efficiency Ratio denominator on an adjusted basis $ 31,268 $ 29,073 - ------ - - ------ - Efficiency Ratio as reported 67.20 % 57.08 % Efficiency Ratio on an adjusted basis 57.80 % 55.82 % Net Income on an Adjusted Basis is defined as net income excluding the following: First quarter 2019 partial reversal of a prior period charges related to executive separation. Efficiency on an Adjusted Basis is defined as Efficiency ratio adjusted for the following: First quarter 2019 partial reversal of prior period charges related to executive separation, acquisition related expenses, and pass through lease revenue and expense that is required to be presented on a gross basis in the income statement

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Supplemental Quarterly Data (Dollars in thousands, except share amounts) (Unaudited) Quarter Ended: 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 Net Income: Net Income $ 6,185 $ 6,467 $ 5,906 $ 6,422 $ 5,141 Annualized Performance Measures: Return on Average Assets 2.37 % 2.41 % 2.04 % 2.28 % 1.69 % Return on Average Stockholders’ 13.69 % 13.93 % 12.36 % 13.16 % 10.45 % Equity EPS Data: Net Income Allocated to Common $ 6,065 $ 6,352 $ 5,808 $ 6,322 $ 5,069 Stock Number of Shares - Basic 12,188,906 12,199,089 12,214,913 12,202,652 12,165,646 Basic Earnings per Share $ 0.50 $ 0.52 $ 0.48 $ 0.52 $ 0.42 Number of Shares - Diluted 12,245,019 12,269,989 12,296,726 12,286,748 12,252,116 Diluted Earnings per Share $ 0.50 $ 0.52 $ 0.47 $ 0.51 $ 0.41 Cash Dividends Declared per share $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14 New Asset Production: Direct Originations $ 30,869 $ 36,338 $ 35,469 $ 40,381 $ 43,565 Indirect Originations $ 128,833 $ 135,865 $ 137,605 $ 159,534 $ 149,875 - ---------- - ---------- - ---------- - ---------- - ---------- Total Originations $ 159,702 $ 172,203 $ 173,074 $ 199,915 $ 193,440 Equipment Finance Originations $ 141,646 $ 155,385 $ 153,503 $ 180,116 $ 169,831 Working Capital Loans Originations $ 18,056 $ 16,818 $ 19,571 $ 19,799 $ 23,609 - ---------- - ---------- - ---------- - ---------- - ---------- Total Originations $ 159,702 $ 172,203 $ 173,074 $ 199,915 $ 193,440 Assets originated for sale in the $ 0 $ 1,801 $ 3,890 $ 11,905 $ 11,298 period Assets referred in the period $ 4,201 $ 5,638 $ 2,540 $ 4,451 $ 3,617 Total Sourced Originations $ 163,903 $ 179,642 $ 179,504 $ 216,271 $ 208,355 Assets sold in the period $ 22,981 $ 16,890 $ 40,986 $ 58,138 $ 52,867 Implicit Yield on Direct 19.47 % 18.59 % 22.39 % 21.79 % 23.09 % Originations Implicit Yield on Indirect 10.75 % 10.54 % 10.29 % 9.97 % 9.76 % Originations Total Implicit Yield on Total 12.44 % 12.24 % 12.77 % 12.36 % 12.76 % Originations Implicit Yield on Equipment Finance 9.99 % 9.94 % 9.96 % 9.68 % 9.59 % Originations Implicit Yield on Working Capital 31.68 % 33.52 % 34.85 % 36.67 % 35.55 % Loans Originations # of Leases / Loans Equipment 7,764 8,238 7,603 7,873 7,467 Finance Equipment Finance Approval 56 % 56 % 57 % 59 % 58 % Percentage Average Monthly Equipment Finance 1,190 1,240 1,174 1,140 1,074 Sources

Notes and Footnotes:

(1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized.(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans. (3) Adjusted General and administrative expense excludes Non-GAAP General and administrative expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related intangible amortization and pass-through lease expense that is required to be presented on a gross basis in the income statement.(4) Adjusted non-interest expense excludes Non-GAAP non-interest expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related sales commissions, acquisition related intangible amortization, and pass-through lease expense that is required to be presented on a gross basis in the income statement.**Equipment Finance consists of equipment leases and loans; Working Capital Loans consist of small business loans.

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Supplemental Quarterly Data (Dollars in thousands, except share amounts) (Unaudited) Quarter Ended: 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 Net Interest and Fee Margin (NIM) Percent of Average Total Finance Receivables: Interest Income 10.19 % 10.24 % 10.37 % 10.28 % 10.36 % Fee Income 1.73 % 1.66 % 1.64 % 1.68 % 1.62 % - --------- --------- --------- ---------- --------- Interest and Fee Income 11.92 % 11.90 % 12.01 % 11.96 % 11.98 % Interest Expense 1.49 % 1.59 % 2.07 % 2.20 % 2.39 % - --------- --------- --------- ---------- --------- Net Interest and Fee Margin (NIM) 10.43 % 10.31 % 9.94 % 9.76 % 9.59 % Cost of Funds (1) 1.63 % 1.76 % 2.15 % 2.43 % 2.49 % Interest Income Equipment Finance $ 20,639 $ 21,082 $ 21,489 $ 21,590 $ 21,722 Interest Income Working Capital Loans $ 2,321 $ 2,463 $ 2,626 $ 2,824 $ 3,228 Average Total Finance Receivables $ 913,804 $ 936,007 $ 957,755 $ 970,785 $ 999,432 Average Net Investment Equipment $ 884,946 $ 905,583 $ 925,900 $ 937,004 $ 960,501 Finance Average Working Capital Loans $ 28,858 $ 30,424 $ 31,855 $ 33,781 $ 38,931 End of Period Net Investment Equipment $ 900,763 $ 933,261 $ 937,897 $ 965,351 $ 981,664 Finance End of Period Working Capital Loans $ 29,864 $ 29,848 $ 32,528 $ 35,389 $ 41,526 - --------- - --------- - --------- - ---------- - --------- Total Owned Net Investment in Leases $ 930,627 $ 963,109 $ 970,425 $ 1,000,740 $ 1,023,190 and Loans (2) Total Assets Serviced for Others $ 90,701 $ 98,442 $ 128,539 $ 164,029 $ 192,731 - --------- - --------- - --------- - ---------- - --------- Total Managed Assets $ 1,021,328 $ 1,061,551 $ 1,098,964 $ 1,164,769 $ 1,215,921 - --------- - --------- - --------- - ---------- - --------- Average Total Managed Assets $ 996,334 $ 1,030,579 $ 1,071,246 $ 1,117,069 $ 1,177,812 - --------- - --------- - --------- - ---------- - --------- Portfolio Asset Quality: Total Finance Receivables 30+ Days Past Due Delinquencies 1.05 % 0.96 % 1.02 % 1.09 % 1.11 % 30+ Days Past Due Delinquencies $ 10,994 $ 10,438 $ 11,270 $ 12,295 $ 12,849 60+ Days Past Due Delinquencies 0.64 % 0.55 % 0.57 % 0.65 % 0.66 % 60+ Days Past Due Delinquencies $ 6,735 $ 6,007 $ 6,244 $ 7,292 $ 7,626 Equipment Finance 30+ Days Past Due Delinquencies 1.07 % 0.97 % 1.02 % 1.08 % 1.13 % 30+ Days Past Due Delinquencies $ 10,942 $ 10,286 $ 10,913 $ 11,803 $ 12,565 60+ Days Past Due Delinquencies 0.66 % 0.56 % 0.57 % 0.65 % 0.68 % 60+ Days Past Due Delinquencies $ 6,735 $ 5,952 $ 6,137 $ 7,100 $ 7,626 Working Capital Loans 15+ Days Past Due Delinquencies 0.53 % 0.59 % 1.17 % 1.44 % 1.41 % 15+ Days Past Due Delinquencies $ 162 $ 183 $ 394 $ 526 $ 605 30+ Days Past Due Delinquencies 0.17 % 0.49 % 1.06 % 1.35 % 0.66 % 30+ Days Past Due Delinquencies $ 52 $ 152 $ 357 $ 492 $ 284

Notes and Footnotes: (1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized.(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans. (3) Adjusted General and administrative expense excludes Non-GAAP General and administrative expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related intangible amortization and pass-through lease expense that is required to be presented on a gross basis in the income statement.(4) Adjusted non-interest expense excludes Non-GAAP non-interest expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related sales commissions, acquisition related intangible amortization, and pass-through lease expense that is required to be presented on a gross basis in the income statement.**Equipment Finance consists of equipment leases and loans; Working Capital Loans consist of small business loans.

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Supplemental Quarterly Data (Dollars in thousands, except share amounts) (Unaudited) Quarter Ended: 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 Portfolio Asset Quality: Net Charge-offs - Total Finance $ 3,843 $ 4,306 $ 4,546 $ 5,578 $ 4,581 Receivables % on Average Total Finance Receivables Annualized 1.68 % 1.84 % 1.90 % 2.30 % 1.83 % Net Charge-offs - Equipment Finance $ 3,618 $ 3,851 $ 4,194 $ 5,132 $ 3,927 % on Average Net Investment in Equipment Finance Annualized 1.64 % 1.70 % 1.81 % 2.19 % 1.64 % Net Charge-offs - Working Capital Loans $ 224 $ 456 $ 352 $ 446 $ 654 % of Average Working Capital Loans Annualized 3.10 % 6.00 % 4.42 % 5.28 % 6.72 % Total Allowance for Credit Losses $ 15,620 $ 15,570 $ 15,917 $ 16,100 $ 16,882 % of Total Finance Receivables 1.68 % 1.62 % 1.65 % 1.62 % 1.66 % % of 60+ Delinquencies 231.92 % 259.19 % 254.92 % 220.79 % 221.37 % Allowance for Credit Losses - Equipment $ 14,310 $ 14,236 $ 14,498 $ 14,633 $ 15,198 Finance % of Net Investment Equipment Finance 1.60 % 1.53 % 1.55 % 1.52 % 1.56 % % of 60+ Delinquencies 212.48 % 239.18 % 236.24 % 206.10 % 199.28 % Allowance for Credit Losses - Working $ 1,310 $ 1,334 $ 1,419 $ 1,467 $ 1,684 Capital Loans % of Total Working Capital Loans 4.25 % 4.32 % 4.22 % 4.02 % 3.94 % Non-accrual - Equipment Finance $ 3,626 $ 3,211 $ 3,392 $ 3,720 $ 4,390 Non-accrual - Equipment Finance 0.36 % 0.30 % 0.32 % 0.34 % 0.39 % Non-accrual - Working Capital Loans $ 27 $ 147 $ 217 $ 492 $ 284 Non-accrual - Working Capital Loans 0.09 % 0.48 % 0.65 % 1.35 % 0.66 % Non-accrual - Total Finance Receivables $ 3,653 $ 3,358 $ 3,609 $ 4,212 $ 4,674 Non-accrual - Total Finance Receivables 0.35 % 0.31 % 0.33 % 0.37 % 0.40 % Restructured - Total Finance $ 4,366 $ 3,747 $ 3,456 $ 3,636 $ 3,363 Receivables Expense Ratios: Salaries and Benefits Expense $ 10,023 $ 9,527 $ 10,292 $ 9,908 $ 11,451 Salaries and Benefits Expense Annualized % of Avg. Fin. Recbl. 4.39 % 4.07 % 4.30 % 4.08 % 4.58 % Total personnel end of quarter 326 320 339 341 352 General and Administrative Expense $ 6,571 $ 6,449 $ 5,445 $ 6,450 $ 13,354 General and Administrative Expense Annualized % of Avg. Fin. Recbl. 2.88 % 2.76 % 2.27 % 2.66 % 5.34 % Adjusted General and Administrative Expense Annualized % of Avg. Fin. Recbl. (3) 2.79 % 2.73 % 2.25 % 2.57 % 2.75 %

Notes and Footnotes: (1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized.(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans. (3) Adjusted General and administrative expense excludes Non-GAAP General and administrative expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related intangible amortization and pass-through lease expense that is required to be presented on a gross basis in the income statement. (4) Adjusted non-interest expense excludes Non-GAAP non-interest expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related sales commissions, acquisition related intangible amortization, and pass-through lease expense that is required to be presented on a gross basis in the income statement.**Equipment Finance consists of equipment leases and loans; Working Capital Loans consist of small business loans.

MARLIN BUSINESS SERVICES CORP. AND SUBSIDIARIES Supplemental Quarterly Data (Dollars in thousands, except share amounts) (Unaudited) Quarter Ended: 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 Expense Ratios: Non-Interest Expense/Average Total 6.66 % 6.20 % 5.88 % 5.86 % 8.42 % Managed Assets Adjusted Non-Interest Expense/Average 6.52 % 6.06 % 5.46 % 5.61 % 6.14 % Total Managed Assets (4) Efficiency Ratio 57.08 % 55.56 % 55.69 % 53.11 % 67.20 % Adjusted Efficiency Ratio (4) 55.82 % 54.31 % 51.70 % 50.90 % 57.80 % Balance Sheet: Assets Investment in Leases and Loans $ 927,752 $ 959,452 $ 966,659 $ 996,384 $ 1,019,311 Initial Direct Costs and Fees 18,495 19,227 19,683 20,456 20,761 Reserve for Credit Losses (15,620 ) (15,570 ) (15,917 ) (16,100 ) (16,882 ) - --------- - --------- - --------- - ---------- - --------- Net Investment in Leases and Loans $ 930,627 $ 963,109 $ 970,425 $ 1,000,740 $ 1,023,190 Cash and Cash Equivalents 84,891 99,227 88,448 97,156 140,942 Restricted Cash - - 10,049 14,045 13,174 Other Assets 55,707 50,975 57,811 55,105 69,409 - --------- - --------- - --------- - ---------- - --------- Total Assets $ 1,071,225 $ 1,113,311 $ 1,126,733 $ 1,167,046 $ 1,246,725 Liabilities Deposits 833,145 863,568 700,107 755,776 840,167 Total Debt - - 174,519 150,055 129,171 Other Liabilities 54,153 60,101 58,564 62,704 75,737 - --------- - --------- - --------- - ---------- - --------- Total Liabilities $ 887,298 $ 923,669 $ 933,190 $ 968,535 $ 1,045,075 Stockholders’ Equity Common Stock $ 124 $ 124 $ 124 $ 124 $ 123 Paid-in Capital, net 82,507 83,472 83,315 83,496 83,209 Other Comprehensive Income (Loss) (98 ) (73 ) (149 ) (44 ) (4 ) Retained Earnings 101,394 106,119 110,253 114,935 118,318 - --------- - --------- - --------- - ---------- - --------- Total Stockholders’ Equity $ 183,927 $ 189,642 $ 193,543 $ 198,511 $ 201,650 Total Liabilities and Stockholders’ Equity $ 1,071,225 $ 1,113,311 $ 1,126,733 $ 1,167,046 $ 1,246,725 Capital and Leverage: Equity $ 183,927 $ 189,642 $ 193,543 $ 198,511 $ 201,650 Debt to Equity 4.53 4.55 4.52 4.56 4.81 Equity to Assets 17.17 % 17.03 % 17.18 % 17.01 % 16.17 % Regulatory Capital Ratios: Tier 1 Leverage Capital 17.35 % 17.04 % 15.57 % 16.38 % 15.41 % Common Equity Tier 1 Risk-based Capital 18.33 % 18.07 % 17.46 % 17.50 % 17.25 % Tier 1 Risk-based Capital 18.33 % 18.07 % 17.46 % 17.50 % 17.25 % Total Risk-based Capital 19.58 % 19.33 % 18.72 % 18.76 % 18.50 %

Notes and Footnotes: (1) COF is defined as interest expense for the period divided by average interest bearing liabilities, annualized.(2) Net investment in total finance receivables includes net investment in Equipment Finance leases and loans and Working Capital Loans. (3) Adjusted General and administrative expense excludes Non-GAAP General and administrative expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related intangible amortization and pass-through lease expense that is required to be presented on a gross basis in the income statement. (4) Adjusted non-interest expense excludes Non-GAAP non-interest expense items as defined in the reconciliation of GAAP to Non-GAAP financial measures and acquisition related sales commissions, acquisition related intangible amortization, and pass-through lease expense that is required to be presented on a gross basis in the income statement.**Equipment Finance consists of equipment leases and loans; Working Capital Loans consist of small business loans.