First Business Financial Services, Inc. Reports 64% Increase in Net Income for the First Quarter
- Net income increased 64% to $2.2 million, compared to $1.3 million for the first quarter of 2011.
- Annualized return on average equity and return on average assets improved to 13.43% and 0.74%, respectively, compared to 9.62% and 0.48% for the first quarter of 2011.
- Top line revenue, consisting of net interest income and non-interest income, increased 6% or $620,000 to $10.8 million for the quarter ended March 31, 2012, compared to $10.2 million for the quarter ended March 31, 2011.
- Average in-market deposits of $630.8 million grew to 59.4% of total deposits, compared to average in-market deposits of $509.5 million, or 50.7% of total deposits, for the first quarter of 2011.
- The Company’s efficiency ratio improved by 423 basis points to 61.8% for the first quarter of 2012, compared to 66.0% for the same period of 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, rose 19% to $4.1 million for the first quarter of 2012, compared to $3.4 million recorded in the same period of 2011.
- Provision for loan and lease losses fell 64% to $504,000 for the first quarter of 2012, down $900,000 from the prior year.
- Non-performing assets of $22.8 million at March 31, 2012 declined by $1.2 million or 5% from December 31, 2011, and declined by $18.7 million or 45% from March 31, 2011.
The Company recorded first quarter 2012 net income of $2.2 million, or diluted earnings per common share of $0.84, compared to net income of $1.3 million, or diluted earnings per common share of $0.52, for the first quarter of 2011.
"The momentum of our efforts to grow top line revenue, generate in-market deposits and carefully manage credit risk drove another quarter of outstanding results for First Business Financial Services," said Corey A. Chambas, President and Chief Executive Officer. "Our ability to consistently deliver quality earnings has also placed us in the enviable position of being financially and strategically equipped to invest in additional talent as a driver of future growth. We are adding talented individuals with niche commercial expertise today, enhancing our organic revenue and loan growth opportunities for tomorrow. As we remain focused on executing our strategic plan, we are confident the momentum we’ve achieved positions us well for continued growth in long-term shareholder value."
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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
This press release contains forward-looking statements that reflect the Corporation's plans, estimates and beliefs. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "objective" and similar expressions and verbs in the future tense are intended to identify forward-looking statements. The statements contained in this press release involve or may involve certain assumptions, risks, and uncertainties, many of which are beyond the Corporation's control, which could cause actual results to differ materially from those discussed in the forward-looking statements. The forward-looking statements included in this press release are only made as of the date hereof, and the Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. In addition to the assumptions and other factors referenced specifically in connection with such statements, the factors described in "Item 1A. Risk Factors" in our Annual Report on Form 10-K and the following factors could impact the business and financial prospects of the Corporation: general economic conditions; legislative and regulatory initiatives; increased competition and other effects of deregulation and consolidation of the financial services industry; monetary and fiscal policies of the federal government; deposit flows; disintermediation; the cost and availability of funds; general market rates of interest; interest rates or investment returns on competing investments; demand for loan products; demand for financial services; changes in accounting policies or guidelines; general economic developments; acts of terrorism and developments in the war on terrorism; and changes in the quality or composition of loan and investment portfolios.