Marlin Business Services Corp.
Annual Report 2012

Plain-text annual report

M A R L I N B U S I N E S S S E R V I C E S C O R P . ® 2 0 1 2 A N N U A L R E P O R T MARLIN BUSINESS SERVICES CORP.® 2012 ANNUAL REPORT BUSINESS SERVICES CORP. 2012 ANNUAL REPORT MARLIN BUSINESS SERVICES CORP. ® CONSOLIDATED FINANCIAL SUMMARY YEAR ($ in Thousands) 2008 2009 2010 2011 2012 Revenues $115,597 $90,299 $66,738 $62,227 $70,921 Net Income (Loss) ($5,230) $1,036 $5,668 $6,175 $11,697 Net Income – Adjusted(1) $4,474 $2,221 $5,738 $6,207 $11,701 Net Investment in Leases and Loans $669,109 $448,610 $351,569 $387,840 $503,017 Total Assets Deposits(2) $794,431 $565,803 $468,062 $485,969 $602,348 $63,385 $80,288 $92,919 $198,579 $378,188 Total Stockholders’ Equity $150,272 $151,885 $160,003 $164,101 $174,250 Total Originations (Leases and Loans) $256,554 $88,935 $134,030 $229,014 $322,198 Total Number of New Leases and Loans Originated 24,869 9,763 12,407 18,102 24,557 Net Interest and Fee Margin 9.86% 10.05% 11.75% 12.59% 13.42% Net Charge-Offs(3) 3.80% 5.42% 3.58% 1.81% 1.11% REGULATORY CAPITAL RATIOS:(4) Tier 1 Leverage Capital 24.89% 34.87% 33.74% 29.35% Tier 1 Risk-based Capital 30.19% 39.58% 37.94% 31.76% Total Risk-based Capital 31.45% 40.84% 39.19% 32.95% (1) Net Income - Adjusted represents net income excluding the loss on derivatives and hedging activities, net of tax, and is provided to evaluate the Company’s core business performance without such activities. The Company believes that Net Income - Adjusted is a useful performance metric for management, investors and lenders because it excludes the volatility resulting from derivatives activities subsequent to discontinuing hedge accounting in mid-2008. (2) FDIC insured deposits. (3) As a percentage of average total finance receivables. (4) Effective in 2009 upon conversion to bank holding company status. 2012 ANNUAL REPORT MARLIN BUSINESS SERVICES CORP. ® To Our Shareholders: During 2012, the company delivered a successful year led by strong asset and profit growth and a higher total return on capital. Our financial performance is a result of our disciplined, well executed strategy and the delivery of products and services that meet the marketplace and customer expectations. Our core products and services have remained essentially the same over the company’s history. We offer leases and loans to small and mid-size businesses which are seeking financing to acquire commercial essential use equipment. We offer these loan products through a network of equipment manufacturers, distributors and dealers and provide a customized, value- added service by providing a convenient, point of sale financing option to businesses seeking to finance their equipment purchase. Over our sixteen-year operating history, our performance success rests on a focused strategy and set of capabilities and principles evolving around: • An understanding and ability to efficiently operate a high volume transaction business with a high degree of personalized attention provided to customers. Our origination and servicing platform, developed over many years, gives us a competitive edge over the less capable, inexperienced providers we compete against. • A company-wide culture striving to exceed customer expectations helps differentiate us in the eyes of customers. We do this in many ways starting with assisting the customer (the manufacturer, distributor or dealer) with whom we have a relationship sell more equipment. By offering a comprehensive suite of products and services we’re confident customers receive a tailored value-added solution to help their business grow. Our nationwide sales force and Single Point-of- Contact® service model delivers the solutions customers are seeking in a financing partner. • An ability to execute credit strategy built on the vast amount of customer data accumulated during the company’s sixteen-year operating history. This data and the knowledge gained from it provide the foundation for the disciplined, analytics based credit culture at the company. • Having in place a strong seasoned management team with many years of history at the company builds a strong foundation to execute our strategy. Our success in retaining key management helps sustain the culture of performance success as we grow and add talent to the organization. • A financially strong, well-capitalized, conservatively leveraged balance sheet and access to inexpensive insured deposit funding through our bank subsidiary, Marlin Business Bank, provides the financial resources required to invest and grow our business profitably. Attractive returns and earnings results also provide the company with the opportunity to return excess capital to shareholders and the flexibility to reinvest retained capital for long-term growth. In closing, I wish to offer a sincere thank you to all our loyal customers for giving us the opportunity to serve you. To our committed, dedicated employees, your efforts make the difference in the success of our company. Lastly, our pledge is to continue to work to maintain the trust and confidence of our shareholders. Daniel P. Dyer Co-Founder & Chief Executive Officer MISSION STATEMENT Marlin Business Services Corp. is a company of dedicated employees committed to the delivery of quality credit products to small businesses with exceptional customer service and convenience...one customer at a time. S E N I O R C O R P O R A T E O F F I C E R S B O A R D O F D I R E C T O R S DANIEL P. DYER Co-Founder Chief Executive Officer GEORGE D. PELOSE Executive Vice President Chief Operating Officer & Secretary LYNNE C. WILSON Senior Vice President Chief Financial Officer EDWARD J. SICILIANO Executive Vice President Chief Sales Officer EDWARD R. DIETZ, JR. Vice President & General Counsel KEVIN J. MCGINTY Chairman JOHN J. CALAMARI LAWRENCE J. DEANGELO DANIEL P. DYER EDWARD GRZEDZINSKI MATTHEW J. SULLIVAN J. CHRISTOPHER TEETS JAMES W. WERT M A R L I N B U S I N E S S S E R V I C E S C O R P . ® 2 0 1 2 A N N U A L R E P O R T www.MARLINCORP.com CORPORATE OFFICES 300 Fellowship Road Mt. Laurel, NJ 08054 P (888)479-9111 F (888)479-1100 1500 John F. Kennedy Blvd. Suite 330 Philadelphia, PA 19102 P (888)479-9111 F (800)303-9545 SOUTHEASTERN OFFICE 6470 East Johns Crossing Suite 430 Johns Creek, GA 30097 P (888)479-9111 F (800)535-8576 WESTERN OFFICE 16115 SW 1st Street Unit 204 Sherwood, OR 97140 P (503)610-1850 F (888)395-6756 MARLIN BUSINESS BANK 2795 E. Cottonwood Pkwy. Suite 120 Salt Lake City, UT 84121 P (888)479-9111 F (877)870-6756 

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