Third Quarter Summary:
- Net income of
$2.7 million , or$0.23 per diluted share, compared with net income of$7.4 million , or$0.60 per diluted share a year ago and net loss of$5.9 million , or$0.50 per diluted share last quarter. Net income on an adjusted basis* of$3.2 million , or$0.27 per diluted share, compared with net income on an adjusted basis of$7.4 million , or$0.60 per diluted share a year ago - Ended the quarter with total stockholders’ equity of
$182.4 million , book value per share of$15.23 and a consolidated equity-to-assets ratio of 16.49% - Total 30+ day delinquencies were 2.15%, up from 1.27% prior year, but down from 3.83% in the second quarter
- Expense reduction efforts resulted in a
$3.8 million (22%) reduction in Salaries and General and Administrative expenses during the third quarter versus prior year - Total sourced origination volume of
$68.5 million , down 66.0% year-over-year. Average total finance receivables were$924.6 million , down 11.8% year-over-year - Total allowance for credit losses of
$61.3 million ; allowance as a percentage of receivables was 6.57% for equipment finance and 13.06% for working capital; annualized net charge-offs of 4.54%, compared with 3.47% in the prior quarter and 1.99% in the third quarter last year
Commenting on the Company’s results,
Results of Operations
Total sourced origination volume for the third quarter of
Net interest and fee margin as a percentage of average finance receivables was 8.87% for the third quarter, up 19 basis points from the second quarter of 2020 and down 68 basis points from a year ago. The sequential quarter increase was driven primarily by an increase in new origination loan and lease yields, higher fee income, and a decrease in interest expense resulting from lower deposit rates. The year-over-year decrease in margin percentage was primarily related to the decrease in new origination loan and lease yields, the change in the presentation of residual income driven by the adoption of CECL, and portfolio mix, partially offset by a decrease in interest expense resulting from lower deposit rates. During 2019 and prior periods, residual income was presented in fee income; however, effective in the first quarter 2020, residual income is included in the future cash flows used to assess credit losses and therefore this activity is reflected in the allowance for credit losses. The Company’s interest expense as a percent of average total finance receivables was 203 basis points in the third quarter of 2020 compared with 222 basis points for the prior quarter and 250 basis points for the third quarter of 2019, resulting from lower rates and a shift in mix, as higher rate long-term debt pays down.
On an absolute basis, net interest and fee income was
The provision for credit losses was
Non-interest income was
The Company’s efficiency ratio for the third quarter was 57.6% compared with 48.0% in the third quarter last year. Excluding the impact of certain non-GAAP adjustments, the Company’s efficiency ratio on an adjusted basis* for the third quarter was 53.4% compared with 46.1% in the third quarter of 2019.
Marlin recorded a
Portfolio Performance
Allowance for credit losses as a percentage of total finance receivables was 6.75% at
For the three months ended
As a result of the ongoing impact from COVID-19, through the end of the third quarter the Company has completed over 5,200 loan and lease restructure requests from customers who have been impacted by the pandemic. As of
Through the end of the third quarter,
We are closely monitoring the performance of the modified contracts as their deferral period expires. The following table outlines the delinquency status of the Company’s portfolio as of
Net Investment (in thousands) | Delinquency Rate by population | ||||||||||||||||||||
30 | 60 | 90+ | Current | Total | 30 | 60 | 90+ | Current | Total | ||||||||||||
Equipment Finance | |||||||||||||||||||||
Out of deferral period(1) | 1.41 | % | 1.65 | % | 1.68 | % | 95.26 | % | 100 | % | |||||||||||
In deferral period | 371 | 733 | — | 16,943 | 18,047 | 2.06 | % | 4.06 | % | — | 93.88 | % | 100 | % | |||||||
Restructured Portfolio | 1,773 | 2,379 | 1,672 | 111,848 | 117,672 | 1.51 | % | 2.02 | % | 1.42 | % | 95.05 | % | 100 | % | ||||||
Non-Restructured | 4,430 | 3,348 | 5,148 | 749,869 | 762,795 | 0.58 | % | 0.44 | % | 0.67 | % | 98.31 | % | 100 | % | ||||||
Total Equipment Finance | 0.70 | % | 0.65 | % | 0.77 | % | 97.87 | % | 100 | % | |||||||||||
Net Investment (in thousands) | Delinquency Rate by population | ||||||||||||||||||||
15 | 30 | 60+ | Current | Total | 15 | 30 | 60+ | Current | Total | ||||||||||||
Working Capital | |||||||||||||||||||||
Out of deferral period(1) | 1.95 | % | 2.18 | % | 2.91 | % | 92.96 | % | 100 | % | |||||||||||
In deferral period(1) | 38 | 65 | 34 | 2,585 | 2,722 | 1.40 | % | 2.39 | % | 1.25 | % | 94.96 | % | 100 | % | ||||||
Restructured Portfolio | 223 | 272 | 310 | 11,405 | 12,210 | 1.83 | % | 2.23 | % | 2.54 | % | 93.40 | % | 100 | % | ||||||
Non-Restructured | 41 | 127 | 68 | 14,026 | 14,262 | 0.29 | % | 0.89 | % | 0.48 | % | 98.34 | % | 100 | % | ||||||
1.00 | % | 1.51 | % | 1.43 | % | 96.06 | % | 100 | % | ||||||||||||
________________
(1) Contracts out of modification period reflect those that are no longer in the full or partial deferral period on or prior to
Equipment Finance receivables over 30 days delinquent were 213 basis points as of
Portfolio Concentration
We have a well-diversified portfolio across industries and geographical areas for both
Equipment Finance | Working Capital | ||||
Medical | 13.5 | % | 8.6 | % | |
Miscellaneous Services(1) | 12.0 | % | 8.2 | % | |
Retail | 10.2 | % | 13.6 | % | |
Construction | 8.7 | % | 11.2 | % | |
Restaurants | 7.1 | % | 7.8 | % | |
Professional Services | 6.6 | % | 6.3 | % | |
Manufacturing | 5.9 | % | 9.9 | % | |
Transportation | 5.4 | % | 3.2 | % | |
Auto Repair | 3.3 | % | 6.1 | % |
________
(1) Miscellaneous Services is an amalgamation of service related SIC codes, the largest of which are Business Services, Repair Services, and Equipment Rental and Leasing.
Capital and Liquidity
As of
As of
Corporate Developments
On
* Non-GAAP Financial Measures: Net income (loss) on an adjusted basis and adjusted efficiency ratio are financial measures that are not in accordance with
Conference Call and Webcast
Marlin will host a conference call on
Third Quarter 2020 Financial Results Conference Call
Date: | |
Time: | |
Dial-in: | 1-877-407-0792 (Domestic) |
1-201-689-8263 (International) | |
Conference ID: | 13710845 |
Webcast: | http://public.viavid.com/index.php?id=141614 |
For those unable to participate during the live broadcast, a replay of the call will also be available from
About Marlin
Marlin 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. 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
Regulation G – Non-GAAP Financial Measures
The Company uses certain financial measures which are not calculated and presented in accordance with
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:
856-505-4108
lglassen@addoir.com
424-238-6249
-Tables to Follow--
Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except share amounts) | ||||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 5,436 | $ | 4,701 | ||||
Interest-earning deposits with banks | 189,696 | 118,395 | ||||||
Total cash and cash equivalents | 195,132 | 123,096 | ||||||
Time deposits with banks | 8,456 | 12,927 | ||||||
Restricted interest-earning deposits | 5,771 | 6,931 | ||||||
Investment securities | 10,761 | 11,076 | ||||||
Net investment in leases and loans: | ||||||||
Leases | 357,500 | 426,608 | ||||||
Loans | 550,553 | 601,607 | ||||||
Net investment in leases and loans, excluding allowance for credit losses | 908,053 | 1,028,215 | ||||||
Allowance for credit losses | (61,325 | ) | (21,695 | ) | ||||
Total net investment in leases and loans | 846,728 | 1,006,520 | ||||||
Intangible assets | 5,846 | 7,461 | ||||||
— | 6,735 | |||||||
Operating lease right-of-use assets | 7,729 | 8,863 | ||||||
Property and equipment, net | 8,422 | 7,888 | ||||||
Property tax receivables, net of allowance | 8,580 | 5,493 | ||||||
Other assets | 8,526 | 10,453 | ||||||
Total assets | $ | 1,105,951 | $ | 1,207,443 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | $ | 823,707 | $ | 839,132 | ||||
Long-term borrowings | 39,833 | 76,091 | ||||||
Operating lease liabilities | 8,790 | 9,730 | ||||||
Other liabilities: | ||||||||
Sales and property taxes payable | 5,706 | 2,678 | ||||||
Accounts payable and accrued expenses | 25,533 | 34,028 | ||||||
Net deferred income tax liability | 20,032 | 30,828 | ||||||
Total liabilities | 923,601 | 992,487 | ||||||
Stockholders’ equity: | ||||||||
Preferred Stock, | — | — | ||||||
Common Stock, | ||||||||
12,113,585 shares issued and outstanding at | 120 | 121 | ||||||
respectively | ||||||||
Additional paid-in capital | 75,893 | 79,665 | ||||||
Accumulated other comprehensive income (loss) | 93 | 58 | ||||||
Retained earnings | 106,244 | 135,112 | ||||||
Total stockholders’ equity | 182,350 | 214,956 | ||||||
Total liabilities and stockholders’ equity | $ | 1,105,951 | $ | 1,207,443 | ||||
Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except share amounts) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest income | $ | 22,398 | $ | 27,708 | $ | 73,111 | $ | 80,673 | |||||||
Fee income | 2,803 | 3,869 | 8,019 | 11,418 | |||||||||||
Interest and fee income | 25,201 | 31,577 | 81,130 | 92,091 | |||||||||||
Interest expense | 4,694 | 6,561 | 15,802 | 18,931 | |||||||||||
Net interest and fee income | 20,507 | 25,016 | 65,328 | 73,160 | |||||||||||
Provision for credit losses | 7,204 | 7,662 | 51,160 | 17,781 | |||||||||||
Net interest and fee income after provision for credit losses | 13,303 | 17,354 | 14,168 | 55,379 | |||||||||||
Non-interest income: | |||||||||||||||
Gain on leases and loans sold | 87 | 6,456 | 2,426 | 13,400 | |||||||||||
Insurance premiums written and earned | 2,082 | 2,230 | 6,612 | 6,538 | |||||||||||
Other income | 2,044 | 1,676 | 11,172 | 10,573 | |||||||||||
Non-interest income | 4,213 | 10,362 | 20,210 | 30,511 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and benefits | 8,515 | 10,897 | 25,702 | 34,817 | |||||||||||
General and administrative | 4,717 | 6,092 | 24,169 | 25,514 | |||||||||||
— | — | 6,735 | — | ||||||||||||
Intangible assets impairment | 1,016 | — | 1,016 | — | |||||||||||
Non-interest expense | 14,248 | 16,989 | 57,622 | 60,331 | |||||||||||
Income (loss) before income taxes | 3,268 | 10,727 | (23,244 | ) | 25,559 | ||||||||||
Income tax expense (benefit) | 525 | 3,281 | (8,284 | ) | 6,857 | ||||||||||
Net income (loss) | $ | 2,743 | 7,446 | (14,960 | ) | 18,702 | |||||||||
Basic (loss) earnings per share | $ | 0.23 | $ | 0.61 | $ | (1.27 | ) | $ | 1.52 | ||||||
Diluted (loss) earnings per share | $ | 0.23 | $ | 0.60 | $ | (1.27 | ) | $ | 1.51 | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Dollars in thousands, except share amounts) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) as reported | $ 2,743 | $ 7,446 | $ (14,960) | $ 18,702 | |||||||||||
Deduct: | |||||||||||||||
— | — | (6,735) | — | ||||||||||||
Intangible assets impairment | (1,016) | — | (1,016) | — | |||||||||||
Charge in connection with workforce reorganization | (836) | — | (1,713) | (311) | |||||||||||
Charge in connection with office lease termination | (190) | — | (414) | — | |||||||||||
Acquisition earn out valuation adjustment | 1,435 | — | 1,435 | — | |||||||||||
Reversal of charges in connection with executive separation | — | — | — | 218 | |||||||||||
Tax effect | 152 | — | 2,108 | 24 | |||||||||||
Total adjustments, net of tax | (455) | — | (6,335) | (69) | |||||||||||
Net tax benefit resulting from the CARES Act of 2020 | — | — | 3,256 | — | |||||||||||
Net income (loss) on an adjusted basis | $ 3,198 | $ 7,446 | $ (11,881) | $ 18,771 | |||||||||||
Diluted earnings (loss) per share | |||||||||||||||
As reported | ( | ) | |||||||||||||
As adjusted | ( | ) | |||||||||||||
Return on Average Assets | |||||||||||||||
As reported | 0.98% | 2.34% | -1.68% | 2.00% | |||||||||||
As adjusted | 1.14% | 2.34% | -1.33% | 2.01% | |||||||||||
Return on Average Equity | |||||||||||||||
As reported | 6.00% | 14.58% | -10.31% | 12.38% | |||||||||||
As adjusted | 6.99% | 14.58% | -8.19% | 12.43% | |||||||||||
Efficiency Ratio numerator as reported | $ 14,248 | $ 16,989 | $ 57,622 | $ 60,331 | |||||||||||
Adjustments to Numerator: | |||||||||||||||
Expense adjustments as seen in Net Income reconciliation | (607) | — | (8,443) | (93) | |||||||||||
Acquisition related expenses | (286) | (670) | (957) | (2,142) | |||||||||||
Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
Efficiency ratio numerator on an adjusted basis | $ 13,131 | $ 16,310 | $ 41,177 | $ 51,845 | |||||||||||
Efficiency Ratio denominator as reported | $ 24,720 | $ 35,378 | $ 85,538 | $ 103,671 | |||||||||||
Adjustments to Denominator: | |||||||||||||||
Pass-through revenue | (122) | 42 | (5,247) | (5,680) | |||||||||||
Efficiency Ratio denominator on an adjusted basis | $ 24,598 | $ 35,420 | $ 80,291 | $ 97,991 | |||||||||||
Efficiency Ratio | |||||||||||||||
As reported | 57.64% | 48.02% | 67.36% | 58.19% | |||||||||||
As adjusted | 53.38% | 46.05% | 51.28% | 52.91% | |||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Dollars in thousands, except share amounts) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-interest Expense / Average total managed assets numerator, as reported | $ | 14,248 | $ | 16,989 | $ | 57,622 | $ | 60,331 | |||||||
Adjustments to Numerator: | |||||||||||||||
Expense adjustments as seen in Net Income reconciliation | (607) | — | (8,443) | (93) | |||||||||||
Acquisition related expenses | (286) | (670) | (957) | (2,142) | |||||||||||
Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
Non-interest Expense / Average total managed assets numerator, on an adjusted basis | $ | 13,131 | $ | 16,310 | $ | 41,177 | $ | 51,845 | |||||||
Non-interest Expense / Average total managed assets | |||||||||||||||
As reported | 4.74% | 5.32% | 6.22% | 6.55% | |||||||||||
As adjusted | 4.36% | 5.10% | 4.44% | 5.63% | |||||||||||
General and administrative expense Annualized % of | |||||||||||||||
Avg. Fin. Receivables numerator, as reported | $ | 4,717 | $ | 6,092 | $ | 24,169 | $ | 25,514 | |||||||
Adjustments to Numerator: | |||||||||||||||
Expense adjustments as seen in Net Income reconciliation | 1,245 | — | 1,021 | — | |||||||||||
Acquisition related expenses | (200) | (230) | (599) | (700) | |||||||||||
Rep & Warranty liability adjustment | (175) | — | (982) | — | |||||||||||
Pass-through expenses | (49) | (9) | (6,063) | (6,251) | |||||||||||
General and administrative expense Annualized % of | |||||||||||||||
Avg. Fin. Receivables numerator, as adjusted | $ | 5,538 | $ | 5,853 | $ | 17,546 | $ | 18,563 | |||||||
General and administrative expense Annualized % of | |||||||||||||||
Average Finance Receivables | |||||||||||||||
As reported | 2.04% | 2.32% | 3.32% | 3.31% | |||||||||||
As adjusted | 2.40% | 2.23% | 2.41% | 2.41% |
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
Net Income (Loss) | ( | ( | ||||||||||||||||||||||
Annualized Performance Measures: | ||||||||||||||||||||||||
Return on Average Assets | 2.34% | 2.74% | -3.98% | -1.88% | 0.98% | |||||||||||||||||||
Return on Average Stockholders' Equity | 14.58% | 16.04% | -22.75% | -12.41% | 6.00% | |||||||||||||||||||
EPS Data: | ||||||||||||||||||||||||
Net Income Allocated to Common Stock | ( | ( | ||||||||||||||||||||||
Basic Earnings (loss) per Share | ( | ( | ||||||||||||||||||||||
Diluted Earnings (loss) per Share | ( | ( | ||||||||||||||||||||||
Number of Shares - Basic | 12,054,944 | 11,996,446 | 11,876,147 | 11,760,479 | 11,791,141 | |||||||||||||||||||
Number of Shares - Diluted | 12,167,962 | 12,118,193 | 11,876,147 | 11,760,479 | 11,832,413 | |||||||||||||||||||
Cash Dividends Declared per share | ||||||||||||||||||||||||
New Asset Production: | ||||||||||||||||||||||||
Direct Originations | ||||||||||||||||||||||||
Indirect Originations | ||||||||||||||||||||||||
Total Originations (1) | ||||||||||||||||||||||||
Equipment Finance Originations | ||||||||||||||||||||||||
Working Capital Loans Originations | ||||||||||||||||||||||||
Total Originations (1) | ||||||||||||||||||||||||
Assets originated for sale in the period | ||||||||||||||||||||||||
Assets referred in the period | ||||||||||||||||||||||||
Total Sourced Originations (1) | ||||||||||||||||||||||||
Implicit Yield on Loans Originated: | ||||||||||||||||||||||||
Total (1) | 13.38% | 12.43% | 12.45% | 9.16% | 9.34% | |||||||||||||||||||
Direct | 24.38% | 23.20% | 21.69% | 13.80% | 15.76% | |||||||||||||||||||
Indirect | 10.10% | 9.19% | 9.39% | 8.64% | 8.42% | |||||||||||||||||||
Equipment Finance | 9.57% | 8.91% | 8.95% | 8.80% | 8.77% | |||||||||||||||||||
Working Capital | 35.81% | 33.51% | 31.16% | 36.75% | 36.62% | |||||||||||||||||||
Paycheck Protection Program Loans Originated | — | — | — | |||||||||||||||||||||
Implicit Yield on PPP Loans Originated | — | — | — | 4.56% | 2.76% | |||||||||||||||||||
Assets sold in the period | ||||||||||||||||||||||||
# of Leases / Loans Equipment Finance | 6,836 | 7,279 | 5,863 | 3,178 | 3,410 | |||||||||||||||||||
Equipment Finance Approval Percentage | 53% | 54% | 46% | 37% | 40% | |||||||||||||||||||
Average Monthly Equipment Finance Sources | 1,067 | 1,033 | 932 | 518 | 547 |
_________________
(1) Excludes Paycheck Protection Program (PPP) Loans Originated.
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||
Net Interest and Fee Margin Percentage | ||||||||||||||||||||
of Average Total Finance Receivables: | ||||||||||||||||||||
Interest Income | 10.57% | 10.34% | 10.49% | 9.90% | 9.69% | |||||||||||||||
Fee Income (4) | 1.48% | 1.46% | 1.10% | 1.00% | 1.21% | |||||||||||||||
Interest and Fee Income | 12.05% | 11.80% | 11.59% | 10.90% | 10.90% | |||||||||||||||
Interest Expense | 2.50% | 2.36% | 2.25% | 2.22% | 2.03% | |||||||||||||||
Net Interest and | 9.55% | 9.44% | 9.34% | 8.68% | 8.87% | |||||||||||||||
Cost of Funds (2) | 2.63% | 2.57% | 2.50% | 2.17% | 2.13% | |||||||||||||||
Interest Income Equipment Finance | ||||||||||||||||||||
4,389 | 4,545 | 4,932 | 4,095 | 2,526 | ||||||||||||||||
Average Total Finance Receivables | ||||||||||||||||||||
Average Net Investment Equipment Finance | 995,346 | 977,225 | 947,696 | 928,210 | 886,990 | |||||||||||||||
Average Working Capital Loans | 53,452 | 57,239 | 61,127 | 51,103 | 33,696 | |||||||||||||||
End of Period Net Investment in leases and loans, | ||||||||||||||||||||
net of allowance: | ||||||||||||||||||||
Equipment Finance | ||||||||||||||||||||
Working Capital | 53,699 | 59,043 | 51,812 | 34,116 | 23,016 | |||||||||||||||
Total Owned Leases and Loans (3) | 1,034,498 | 1,006,520 | 970,076 | 911,035 | 846,728 | |||||||||||||||
Assets Serviced for Others | 264,226 | 341,064 | 328,252 | 296,401 | 261,144 | |||||||||||||||
Total Managed Assets | ||||||||||||||||||||
Average Total Managed Assets | ||||||||||||||||||||
Restructured Receivables: | ||||||||||||||||||||
Payment Deferral Modification Program: | ||||||||||||||||||||
Equipment Finance | — | — | ||||||||||||||||||
Working Capital | — | — | 6,987 | 17,876 | 12,210 | |||||||||||||||
Total - $ | — | — | ||||||||||||||||||
Total - as a % of Ending Finance Receivables | — | — | 2.0% | 13.7% | 14.3% | |||||||||||||||
Total - # of Active Modified Contracts | — | — | 520 | 5,017 | 5,237 | |||||||||||||||
Other Restructured Contracts | $ |
_________________
(2) COF is defined as interest expense for the period divided by average interest-bearing liabilities, annualized
(3) Net investment in total finance receivables includes net investment in Equipment finance leases and loans and Working Capital loans.
(4) Effective
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
Portfolio Asset Quality | ||||||||||||||||||||||||
Allowance | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
% of Total Finance Receivables | 1.86% | 2.15% | 5.09% | 6.53% | 6.75% | |||||||||||||||||||
Equipment Finance | ||||||||||||||||||||||||
% of Net Investment Equipment Finance | 1.75% | 2.09% | 4.66% | 5.97% | 6.57% | |||||||||||||||||||
Working Capital | ||||||||||||||||||||||||
% of Total Working Capital Loans | 3.80% | 3.14% | 12.20% | 18.92% | 13.06% | |||||||||||||||||||
Net Charge-Offs | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
% on Avg. Finance Receivables, Annualized | 1.99% | 3.00% | 3.11% | 3.47% | 4.54% | |||||||||||||||||||
Equipment Finance | ||||||||||||||||||||||||
% on Avg. Finance Receivables, Annualized | 2.02% | 2.72% | 2.79% | 3.39% | 4.49% | |||||||||||||||||||
Working Capital | ||||||||||||||||||||||||
% on Avg. Finance Receivables, Annualized | 1.42% | 7.95% | 8.13% | 4.87% | 6.32% | |||||||||||||||||||
Delinquency | ||||||||||||||||||||||||
Total Finance Receivables: | ||||||||||||||||||||||||
30+ Days Past Due | 1.27% | 1.40% | 1.79% | 3.83% | 2.15% | |||||||||||||||||||
60+ Days Past Due | 0.83% | 0.83% | 1.00% | 2.46% | 1.42% | |||||||||||||||||||
Equipment Finance: | ||||||||||||||||||||||||
30+ Days Past Due | 1.27% | 1.40% | 1.82% | 3.90% | 2.13% | |||||||||||||||||||
60+ Days Past Due | 0.87% | 0.86% | 1.05% | 2.52% | 1.42% | |||||||||||||||||||
Working Capital: | ||||||||||||||||||||||||
15+ Days Past Due | 1.89% | 1.75% | 2.55% | 4.38% | 3.93% | |||||||||||||||||||
30+ Days Past Due | 1.34% | 1.42% | 1.14% | 2.68% | 2.94% | |||||||||||||||||||
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
Delinquency (continued) | ||||||||||||||||||||||||
Total Finance Receivables: | ||||||||||||||||||||||||
30+ Days Past Due | ||||||||||||||||||||||||
60+ Days Past Due | ||||||||||||||||||||||||
Equipment Finance: | ||||||||||||||||||||||||
30+ Days Past Due | ||||||||||||||||||||||||
60+ Days Past Due | ||||||||||||||||||||||||
Working Capital: | ||||||||||||||||||||||||
15+ Days Past Due | ||||||||||||||||||||||||
30+ Days Past Due | ||||||||||||||||||||||||
Non-Accrual | ||||||||||||||||||||||||
Total | 0.68% | 0.55% | 0.66% | 1.13% | 0.92% | |||||||||||||||||||
Equipment Finance | 0.65% | 0.49% | 0.62% | 1.06% | 0.82% | |||||||||||||||||||
Working Capital | 1.34% | 1.57% | 1.28% | 2.83% | 4.32% | |||||||||||||||||||
Total (5) | ||||||||||||||||||||||||
Equipment Finance | ||||||||||||||||||||||||
Working Capital | ||||||||||||||||||||||||
_________________
(5) Non-Accrual as of
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
Expense Ratios | ||||||||||||||||||||||||
Salaries and Benefits Expense | ||||||||||||||||||||||||
As a % of Avg. Fin. Receivables (annualized) | 4.16% | 3.62% | 3.77% | 3.13% | 3.68% | |||||||||||||||||||
Total personnel end of quarter | 348 | 348 | 339 | 240 | 247 | |||||||||||||||||||
General and Administrative Expense | ||||||||||||||||||||||||
As a % of Avg. Fin. Receivables (annualized) | 2.32% | 2.73% | 5.39% | 2.39% | 2.04% | |||||||||||||||||||
Adjusted General and Administrative Expense | ||||||||||||||||||||||||
As a % of Avg. Fin. Receivables (annualized) (6) | 2.23% | 2.40% | 2.62% | 2.21% | 2.40% | |||||||||||||||||||
Non-Interest Expense / | ||||||||||||||||||||||||
Average Total Managed Assets | 5.32% | 4.99% | 8.89% | 4.18% | 4.74% | |||||||||||||||||||
Adjusted Non-Interest Expense / | ||||||||||||||||||||||||
Average Total Managed Assets (7) | 5.10% | 4.56% | 4.74% | 3.75% | 4.36% | |||||||||||||||||||
Efficiency Ratio | 48.02% | 43.22% | 83.51% | 53.92% | 57.64% | |||||||||||||||||||
Adjusted Efficiency Ratio (7) | 46.05% | 40.23% | 52.68% | 47.58% | 53.38% | |||||||||||||||||||
_________________
(6) Adjusted general and administrative expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures. See schedule for details.
(7) Adjusted non-interest expense adjusts certain items, as defined in the reconciliation of GAAP to Non-GAAP financial measures. See schedule for details.
Supplemental Quarterly Data (Dollars in thousands, except share amounts) | ||||||||||||||||||||||||
Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | ||||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Investment in Leases and Loans | ||||||||||||||||||||||||
Initial Direct Costs and Fees | 20,841 | 20,508 | 19,525 | 17,698 | 16,113 | |||||||||||||||||||
Reserve for Credit Losses | (19,211) | (21,695) | (52,060) | (63,644) | (61,325) | |||||||||||||||||||
Net Investment in Leases and Loans | ||||||||||||||||||||||||
Cash and Cash Equivalents | 132,461 | 123,096 | 211,070 | 211,706 | 195,132 | |||||||||||||||||||
Restricted Cash | 7,576 | 6,931 | 6,474 | 6,072 | 5,771 | |||||||||||||||||||
Other Assets | 72,881 | 70,896 | 75,917 | 67,402 | 58,320 | |||||||||||||||||||
Total Assets | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Deposits | 869,257 | 839,132 | 941,996 | 902,191 | 823,707 | |||||||||||||||||||
Total Debt | 91,739 | 76,091 | 62,193 | 50,890 | 39,833 | |||||||||||||||||||
Other Liabilities | 77,633 | 77,264 | 70,858 | 62,130 | 60,061 | |||||||||||||||||||
Total Liabilities | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
80,226 | 79,665 | 75,647 | 75,606 | 75,893 | ||||||||||||||||||||
Other Comprehensive Income (Loss) | 89 | 58 | 20 | 86 | 93 | |||||||||||||||||||
Retained Earnings | 128,350 | 135,112 | 112,704 | 105,193 | 106,244 | |||||||||||||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Capital and Leverage: | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Debt to Equity | 4.60 | 4.26 | 5.33 | 5.27 | 4.74 | |||||||||||||||||||
Equity to Assets | 16.74% | 17.80% | 14.92% | 15.13% | 16.49% | |||||||||||||||||||
Regulatory Capital Ratios: | ||||||||||||||||||||||||
Tier 1 | 15.28% | 16.31% | 16.18% | 15.05% | 16.92% | |||||||||||||||||||
Common Equity Tier 1 Risk-based Capital | 17.72% | 18.73% | 18.64% | 19.33% | 21.17% | |||||||||||||||||||
Tier 1 Risk-based Capital | 17.72% | 18.73% | 18.64% | 19.33% | 21.17% | |||||||||||||||||||
Total Risk-based Capital | 18.98% | 19.99% | 19.94% | 20.65% | 22.49% |
Source:
2020 GlobeNewswire, Inc., source