Marlin Announces Relief From Capital Maintenance and Liquidity Agreement

Provides Business Update on Impact of COVID-19 Pandemic

MOUNT LAUREL, N.J., March 31, 2020 (GLOBE NEWSWIRE) -- Marlin Business Services Corp. (NASDAQ: MRLN), a nationwide provider of capital solutions to small businesses (“Marlin” or the “Company”), announced today the termination of its Capital Maintenance and Liquidity Agreement (the “CMLA Agreement”) with the Federal Deposit Insurance Corporation (the “FDIC”), and the FDIC’s rescission of certain nonstandard conditions in the FDIC’s original order granting federal deposit insurance to the Company’s wholly-owned subsidiary, Marlin Business Bank. 

As a result of the termination of the CMLA Agreement, the Company’s consolidated capital maintenance requirements have been reduced going forward to the standard regulatory thresholds. Based on the termination of the CMLA Agreement, the Company’s capital requirements would have been reduced by approximately $30 million as of December 31, 2019.

Commenting on today’s announcement, Marlin’s President and CEO, Jeff Hilzinger, said, “We are very pleased with the FDIC’s decision to terminate our CMLA Agreement that has existed since the inception of Marlin Business Bank. We are a very well-capitalized institution and the termination of this agreement puts us in an even stronger position to serve our partners and customers as they deal with the effects of the pandemic.” 

Marlin also announced that it has been carefully evaluating the emerging public health crisis and resulting economic impact resulting from the COVID-19 outbreak. Beginning in early March, the Company started a series of proactive measures to protect its employees from the effects of the COVID-19 pandemic and to manage its liquidity and capital position and portfolio performance.

Business Continuity

Throughout the week of March 16^th, 2020, Marlin implemented its business continuity plan designed to allow the Company to continue operating as normal under extraordinary circumstances. Included in the plan is the ability for Marlin’s workforce to access systems remotely. Since Friday, March 20, 2020, Marlin’s entire workforce has been working remotely and all business-related employee travel has been suspended. Through the successful execution of the plan, Marlin has not experienced any interruption of its normal business operations.