Marlin Business Services Corp. reported first quarter 2013 net income of $3.7 million, or $0.28 per diluted share. Net income improved 121% and diluted earnings per share improved 115% over first quarter 2012.

"Performance for the quarter was led by solid asset growth," says Daniel P. Dyer, Marlin's co-founder and Chief Executive Officer. "As we move forward in 2013, our growth focus is on expanding our market footprint and serving the credit needs of small business," says Mr. Dyer.

First quarter 2013 lease production was $80.9 million based on initial equipment cost, 12% higher than the first quarter of 2012.

Net interest and fee margin of 13.5% is stable compared to the fourth quarter of 2012.

The Company's cost of funds improved 24 basis points from the fourth quarter of 2012 and 118 basis points from the first quarter of 2012. The improvement resulted from the Company's use of lower-cost insured deposits issued by the Company's subsidiary, Marlin Business Bank, as its primary funding source.

The allowance for credit losses as a percentage of total finance receivables stands at 1.35% at March 31, 2013, compared to 1.30% as of December 31, 2012. The allowance for credit losses as of March 31, 2013 represents 207% of total 60+ day delinquencies.

Leases over 30 days delinquent were 0.99% of Marlin's lease portfolio as of March 31, 2013, 7 basis points higher than the fourth quarter of 2012 and 6 basis points higher than a year ago. Leases over 60 days delinquent were 0.57% of Marlin's lease portfolio as of March 31, 2013, up 15 basis points from 0.42% at December 31, 2012 and 16 basis points higher than a year ago.

First quarter net charge-offs were 1.25% of average total finance receivables, flat compared to the fourth quarter and 2 basis points higher than the first quarter of 2012.

The Company maintains strong capital ratios with a consolidated equity to assets ratio of 27.74%. Our risk based capital ratio is 32.1%, which is well above regulatory requirements.

Marlin Business Services Corp. is a nationwide provider of innovative equipment financing solutions for small and mid-size businesses. Since its inception in 1997, Marlin has financed a wide array of commercial equipment and software for a quarter of a million business customers. Marlin's mission is to offer convenient and cost-effective financing products while providing the highest level of customer service. Marlin is publicly traded (Nasdaq:MRLN) and owns and operates a federally regulated commercial bank, Marlin Business Bank.

Read the full First Quarter Press Release.