Marlin Business Services reported third quarter 2012 net income of $3.4 million. Third quarter 2012 lease production was $81.6 million based on initial equipment cost, up from $80.4 million for the second quarter of 2012 and 37% higher than the third quarter of 2011.

"The business is well-positioned to grow and address the credit needs of small businesses," says Daniel P. Dyer, Marlin's co-founder and chief executive officer. "Reflecting our favorable earnings, we have declared a quarterly cash dividend of $0.08 per share," says Dyer.

Net interest and fee margin increased in the third quarter of 2012, to 13.51% from 13.22% in the second quarter of 2012, and has increased 74 basis points from the third quarter a year ago.

The company's cost of funds improved 39 basis points from the second quarter of 2012 and 168 basis points from the third quarter of 2011. The improvement resulted from the Company's continuing shift in funding mix to lower-cost insured deposits issued by the company's subsidiary, Marlin Business Bank.

The allowance for credit losses as a percentage of total finance receivables stands at 1.20% as of September 30, 2012, compared to 1.18% as of June 30, 2012. The allowance for credit losses as of September 30, 2012 represents 258% of total 60+ day delinquencies.

Leases over 30 days delinquent were 0.87% of Marlin's lease portfolio as of September 30, 2012, 17 basis points higher than the second quarter of 2012 and 31 basis points lower than a year ago. Leases over 60 days delinquent were 0.40% of Marlin's lease portfolio as of September 30, 2012, up 13 basis points from 0.27% at June 30, 2012 and 7 basis points lower than a year ago.

Third quarter net lease charge-offs were 0.89% of average total finance receivables, representing an improvement of 15 basis points from the second quarter of 2012 and an improvement of 84 basis points from the third quarter of 2011.

Read the entire Marlin earings news release.