Marlin Business Services reported first quarter 2012 net income of $1.6 million, up 119% from $.754 million in the same quarter last year. Net interest and fee income, before provision charges, was $13.0 million, up from $10.7 million a year earlier.

Marlin said first quarter lease production was $72.4 million, up 6% sequentially and 54% higher that the first quarter of 2011. The average number of monthly originating sources reached 1,016, up 12% from 911 for the fourth quarter of 2011 and an increase of 37% from the first quarter a year ago.

“Results for the quarter demonstrate the solid performance track of our business,” says Daniel P. Dyer, Marlin’s co-founder and chief executive officer. “Our value-added service proposition to customers has proven to be a key part of our winning strategy, driving the delivery of sustainable asset growth at attractive risk adjusted margins. Looking ahead, we see plenty of opportunities
for profitable growth by serving the equipment financing needs of customers and small businesses across the country,” said Dyer.

Marlin noted that net interest and fee margin increased 31 basis points in the first quarter of 2012, to 13.35% from 13.04% in the fourth quarter of 2011, and has increased 105 basis points from the first quarter a year ago.

Driving the margin improvement was the company’s cost of funds, which improved 34 basis points from the fourth quarter of 2011 and 159 basis points from the first quarter of 2011. The improvement resulted from the company’s shift in funding mix from term funding to lower-cost insured deposits issued by the company’s subsidiary, Marlin Business Bank.

To read the full Marlin Business Services’ news release click here.