Marlin Business Services reported Q3/13 net income of $4.7 million, up 37% from $3.4 million a year earlier. For the nine-month period ended September 30, 2013, net income was $12.8 million, up 60% from $8.1 million for same period in 2012.

Q3/13 and YTD net interest and fee income of $18.7 million and $53.4 million, respectively was up $3.5 million (23%) and $11.4 million (27%) from $15.2 million and $42.0 million for the same year earlier periods.

Marlin said Q3/13 lease production was $86.1 million based on initial equipment cost, compared to $91.4 million in Q2/13 and $81.6 million in Q3/12.

Marlin’s net investment in loans and leases was $576.4 million at the end of Q3/13, up 15% from $503.0 million at year-end 2012. Return on average assets in Q3/13 was 2.73%, up 25 basis points from year-end 2012.

The company noted that its cost of funds improved 58 basis points from the third 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, its primary funding source. Marlin noted that insured deposits of $477.4 million were up 40% year-over-year

Highlights from the news release included: (Q3/12 vs Q3/13)

. Average monthly sources increased from 1,117 to 1,146

. # of sales reps increased from 112 to 115

. Approval % dropped from 67% to 65%

. Implicit yield on new leases dropped from 12.97% to 11.86%

“We’re pleased with the steady growth momentum of the business,” said Daniel P. Dyer, co-founder and chief executive officer. “Our service-oriented, focused strategy aimed at serving the credit needs of the small business marketplace continues to deliver profitable growth and attractive returns on capital,” said Dyer.

To read the Marlin Business Services news release click here.