MOUNT LAUREL, N.J., Nov. 2, 2009 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (Nasdaq:MRLN) today reported third quarter 2009 net income of $508,000, or $0.04 per diluted share, and net income on an adjusted basis of $1.2 million or $0.10 per share.

"We are strongly encouraged by the asset quality results this quarter," says Daniel P. Dyer, Marlin's CEO. "Our focused, proactive approach to credit early into the recession has resulted in improving credit quality during a period when the overall market indicators are negative. Looking to the future, the company is well positioned to capitalize on growth bolstered by our strong, well capitalized balance sheet, access to the credit markets and strengthening fundamentals on the credit side," added Dyer.

Credit trends have improved and reflect management's proactive initiatives to maintain credit quality:

Leases over 30 days delinquent were 3.55% as of September 30, 2009, an 86 basis point improvement compared to 4.41% at June 30, 2009. The provision for credit losses was $6.0 million for the quarter ended September 30, 2009, down from $6.8 million for the second quarter of 2009, due to improvements in the credit migration of the lease portfolio. The allowance as a percentage of total finance receivables, which reflects management's estimate of future losses inherent in the portfolio, remained strong at 2.46% at September 30, 2009.

Third quarter lease production was $16.8 million, based on initial equipment cost, compared to $15.8 million for the second quarter of 2009. The average implicit yield on new lease production continues to remain strong and was 15.62% for the third quarter of 2009.

Salaries and benefits were $4.1 million for the third quarter ended September 30, 2009, down from $5.1 million for the second quarter of 2009. Included in second quarter salaries and benefits is a pretax severance adjustment of $700,000. We continue to focus all employees on the goal of containing G&A expenses which has resulted in total G&A of $3.1 million for the third quarter ended September 30, 2009, an improvement of $211,000 compared to $3.3 million for the second quarter of 2009.

At September 30, 2009, the Company has outstanding $97.3 million of leases and loans funded through its banking subsidiary, Marlin Business Bank, and has $80 million in FDIC insured deposits outstanding at an average borrowing rate of 3.45% with a weighted average term to maturity of 2.6 years. Third quarter 2009 average deposit outstandings were $79.4 million at a weighted average interest rate of 3.42%.

On October 9, 2009, the Company closed on a $75,000,000 three-year committed funding facility with the Lender Finance division of Wells Fargo Foothill, part of Wells Fargo & Company. The facility will be used by Marlin to fund its growth, increasing its ability to extend flexible equipment financing options to thousands of small and medium-sized businesses nationwide.

In conjunction with this release, static pool loss statistics and vintage delinquency analysis have been updated as supplemental information on the investor relations section of our website at www.marlincorp.com.

Conference Call and Webcast

We will host a conference call on Tuesday, November 3, 2009 at 9:00 a.m. ET to discuss our third quarter 2009 results. If you wish to participate, please call 888-218-8142 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 Marlin Business Services Corp. website, www.marlincorp.com. An audio replay will also be available on the Investor Relations section of Marlin's website for approximately 100 days.

About Marlin Business Services Corp.

Marlin Business Services Corp. is a nationwide provider of equipment leasing and working capital solutions primarily to small businesses. The Company's principal operating subsidiary, Marlin Leasing Corporation, finances over 100 equipment categories in a segment of the market generally referred to as "small-ticket" leasing (i.e. leasing transactions less than $250,000). The Company was founded in 1997 and completed its initial public offering of common stock on November 12, 2003. For more information, visit www.marlincorp.com or call toll free at (888) 479-9111.

The Marlin Business Services Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4087

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 SEC, 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.

                    MARLIN BUSINESS SERVICES CORP.
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                Condensed Consolidated Balance Sheets
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