First Business

March 09, 2012

First Business Financial Services, Inc. Announces Record 2011 Earnings

Company Release - 03/09/2012 09:18

MADISON, Wis., March 9, 2012 (GLOBE NEWSWIRE) -- First Business Financial Services, Inc. (the "Company") (Nasdaq:FBIZ), the parent company of First Business Bank and First Business Bank - Milwaukee, today reported strong fourth quarter and record full year 2011 net income, as the Company continued to increase top line revenue, reduce the level of non-performing assets and improve operating efficiency.

Highlights for the periods ended December 31, 2011 include:

  • Net income for the three months ended December 31, 2011 increased to $2.4 million, compared to $598,000 for the same period of 2010.

  • Net income was $8.4 million for the year ended December 31, 2011, compared to $941,000 for the year ended December 31, 2010. Excluding 2010’s $2.7 million goodwill impairment charge, net income for the year ended December 31, 2011 grew $4.8 million or 132% over the prior year.

  • Annualized return on average equity and return on average assets increased to 15.02% and 0.82%, respectively, for the fourth quarter of 2011, compared to 4.21% and 0.21% for the same period in 2010.

  • Return on average equity and return on average assets increased to 14.03% and 0.75%, respectively, for 2011, compared to 1.67% and 0.09% for 2010. Excluding the goodwill impairment, return on average equity and return on average assets for 2010 were 6.46% and 0.33%, respectively.

  • Net interest margin of 3.29% for the year ended December 31, 2011 was an improvement of 25 basis points compared to 2010.

  • Top line revenue, consisting of net interest revenue and non-interest income, increased 10% to $42.5 million for the year ended December 31, 2011, compared to $38.7 million for the year ended December 31, 2010.

  • Provision for loan and lease losses was $4.3 million for the year ended December 31, 2011, down $2.8 million or 40% from the prior year.
    Non-performing assets of $24.0 million at December 31, 2011 declined by $16.2 million or 40% from December 31, 2010.
    The Company’s efficiency ratio improved by 474 basis points to 61.0% for the year ended December 31, 2011, compared to 65.8% for the prior year.

  • Core earnings, defined as pre-tax income adding back provision for loan and lease losses, other identifiable costs of credit and other discrete items unrelated to our core business activities, of $16.5 million for year ended December 31, 2011 grew 25% over 2010.


  • See full release under the Investor Relations section of our website.

    About First Business Financial Services, Inc.

    First Business Financial Services (Nasdaq:FBIZ) is a $1.3 billion Wisconsin-based bank holding company that specializes in focused financial solutions for businesses, key executives, and high net worth individuals through its operating companies. It is the 2nd largest Wisconsin-based commercial bank holding company listed on NASDAQ or the NYSE. Its companies include: First Business Bank - Madison; First Business Bank - Milwaukee; First Business Bank - Northeast; First Business Trust & Investments; First Business Equipment Finance, LLC; and First Business Capital Corp. For additional information, visit www.firstbusiness.com or call (608) 238-8008.

    The First Business Financial Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2667

    Contact:
    James F. Ropella
    Senior Vice President and Chief Financial Officer
    First Business Financial Services, Inc.
    608-232-5970
    Email