Marlin Business Services : Q4 2020 Earnings Supplement

Quarterly Earnings

Supplemental Presentation

January 28, 2021

Important Disclosures

Forward-Looking Statements

Certain information included in this presentation and other statements or materials published or to be published by Marlin Business Services Corp. (the "Company") 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. Such forward-looking statements represent only the company's current beliefs regarding future events and are not guarantees of performance or results. All forward-looking statements (including statements regarding expectations of 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," "could", "intend" and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding, market, competitive, legal and/or regulatory factors, among others (including but not limited to the impact of the COVID- 19 pandemic), 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 under the headings "Forward-Looking Statements" and "Risk Factors" in our periodic reports filed with the United States Securities and Exchange Commission, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are also available in the "Investors" section of our website. 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. Investors are cautioned not to place undue reliance on such forward-looking statements.

Basis of Presentation

Unless noted otherwise in this presentation, all reported financial data is being presented as of the period ended December 31, 2020 (unaudited).

Non-GAAP Financial Measures

This presentation contains certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles. Explanations of these Non-GAAP Financial Measures, and reconciliations of the measures to the most comparable GAAP measure as required by Regulation G are shown in the Appendix attached to this presentation.

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Marlin at a Glance

TICKER:		HEADQUARTERS:		FOUNDED:
NASDAQ: MRLN		Mount Laurel, NJ	1997

Nationwide Provider of Capital Solutions

• Successful transformation from a micro-ticket equipment lessor into a broader provider of credit products and services to small businesses
• Originating nationwide through a large indirect referral network comprised of equipment manufacturers, distributors and dealers along with the ability to market to our existing customer base
• Bank holding company structure provides stable access to depository funding & Federal Reserve support across credit cycles

Attractive Market Opportunity

• Strong origination momentum prior to pandemic; Recovery underway
• Portfolio performance stabilized in Q4; improved economic outlook
• Addressing large and underserved small business market

Technology-Driven Origination Platforms

• Significant small business data collected over 20-year operating history
• Proprietary and data-driven credit risk management process built and validated through multiple economic and credit cycles
• Integrated origination, fulfillment and processing platforms

MARKET CAP(1):		SHARE PRICE(1):
$141 Million	$11.80

Annual Sourced Origination Volume

($ Millions)

		$878
		$739
		$684
		$522
$359	$399	$377
$349
$331

$234

$138

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1. Market data as of January 27, 2021.

Q4 2020 Summary

Net income of $15.3 million, or $1.28 per diluted share, up from $8.4 million, or $0.69 per diluted share a year ago

Impact of the COVID-19pandemic: Solid increase in origination volume from the prior quarter; Significant release of credit loss reserves and lower allowance for credit losses reflecting improved portfolio performance and macroeconomic outlook

Total sourced origination volume(1) of $84.1 million, up 22.8% from the prior quarter and down 64.5% year-over-year

Total origination yield of 9.63%, up 29 basis points from the prior quarter and down 280 basis points year-over-year

Stabilization of portfolio performance

Loan modifications: Restructured over 5,600 contracts through payment deferrals as of December 31st; Modified portfolio totaled $111.2 million in net investment, or approximately 13% of the portfolio

30+ Day Delinquencies of 1.63%, down from 2.15% for the prior quarter and up from 1.40% for the prior year quarter

Allowance for credit losses of $44.2 million, a decrease of $17.1 million from the prior quarter and an increase of $22.5 million from December 31, 2019

Provision for credit losses net benefit of $12.7 million recorded in the fourth quarter of 2020, compared to provision for credit losses of $7.2 million in the prior quarter and $10.3 million in the fourth quarter of 2019

Annualized net charge-offs of 2.57%, down from 4.54% in the prior quarter and down from 3.00% in the fourth quarter 2019

Enacted proactive cost reduction measures in Q2 and Q3

Operating expenses of $14.8 million declined 10% from $16.4 million for the fourth quarter of 2019

Targeting cost savings of approximately 10% from 2019 levels

Strong balance sheet and liquidity position

$135.7 million in cash and cash equivalents; Marlin Business Bank has maintained access to deposit funding for operations

Well-capitalized significantly above regulatory requirements

Consolidated Total Risk-basedcapital ratio of 24.04%, above 10% "well-capitalized" minimum

Consolidated Tier 1 Leverage ratio of 18.78%, above 5% "well-capitalized" minimum

Book Value per share of $16.40, up $1.17, or nearly 8% from the prior quarter

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1. Excludes Paycheck Protection Program (PPP) Loans Originated.