NOTE 1  The Company Description Marlin Business Services Corp. (the Company) is a nationwide provider of credit products and services to small businesses. The products and services we provide to our customers include loans and leases for the acquisition of commercial equipment (including Transportation Finance Group (TFG) assets) and working capital loans. The Company was inco rporated in the Commonwealth of Pennsylvania on August 5, 2003. In May 2000, we established AssuranceOne, Ltd., a Bermuda-based, wholly-owned captive insurance subsidiary (Assurance One), which enables us to reinsure the property insurance coverage for t he equipment financed by Marlin Leasing Corporation (MLC) and Marlin Business Bank (MBB) for our end user customers. Effective March 12, 2008, the Company opened MBB, a commercial bank chartered by the State of Utah and a member of the Federal Reserve System. MBB serves as the Companys primary funding source through its issuance of Federal Deposit Insurance Corporation (FDIC)-insured deposits. On September 19, 2018, the Company completed the acquisition of Fleet Financing Resources (FFR) , a lead ing provider of equipment finance credit products specializing in the leasing and financing of both new and used commercial vehicles, with an emphasis on livery equipment and other types of commercial vehicles used by small businesses . This acquisition is consistent with our strategy of augmenting organic growth with strategic acquisitions that extend our existing equipment finance business into new and attractive markets . The Company paid $ 10.0 million in cash for FFR and incurred an immaterial amount o f acquisition-related cost. In addition, if FFR generates revenue volume of up to $ 542 million from the closing date through September 30, 2026, we have agreed to pay the seller up to an additional $ 5.5 million in cash in earn-out consideration. This earn -out consideration will be calculated quarterly based on a sliding scale of percentage of revenue volume that increases as successively greater tiers of volume are attained, and if the maximum earn-out consideration is earned, the total consideration paid for FFR will be $ 15.5 million. The Company performed a preliminary allocation of the $ 10.0 million purchase price with $ 6.2 million recorded to goodwill and $ 7.2 million recorded to intangible assets for vendor relationships and lender relationships, off set by a contingent consideration liability of $ 3.4 million representing the estimated fair value of the earn-out. See Note 7 for additional information regarding the identified intangible assets acquired. At September 30, 2018, the valuation analyses of certain intangible assets acquired were not yet finalized. Review of these items will continue during the measurement period and any further changes to the preliminary purchase price allocation and preliminary valuation of the contingent consideration wil l be recognized as the valuations are finalized, which could change the amount of the preliminary purchase price allocation to goodwill. The acquisition has been accounted for using the acquisition method of accounting . For the three-month period ending Se ptember 30, 2018, the results of the acquired FFR business were immaterial to the Companys consolidated results of operations . The unaudited pro forma financial information disclosed in the following sentence is for informational purposes only and is not indicative of future operations or results. If the acquisition had occurred at the beginning of 2017, the Companys revenue and net income for the three and nine-month periods ending September 30, 2018, would have been approximately $ 20.3 million and $ 62.1 million, and $ 6.2 million and $ 19.6 million, respectively. The Companys revenue and net income for the three and nine-month p eriods ending September 30, 2017, would have been approximately $ 18.8 million and $ 57.8 million, and $ 3.6 million and $ 10.4 million, respectively . References to the Company, Marlin, Registrant, we, us and our herein refer to Marlin Business Se rvices Corp. and its wholly-owned subsidiaries, unless the context otherwise requires.