MADISON, Wis., July 27, 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 second quarter results highlighted by successful execution in growing top line revenue, winning key commercial relationships, controlling expenses, and significantly reducing problem assets.Highlights for the quarter and six months ended June 30, 2012 include:
- Net income for the second quarter of 2012 was $1.6 million, compared to $2.5 million earned in the second quarter of 2011. Net income in the 2011 quarter included a substantial one-time tax benefit.
- Net income for the six months ended June 30, 2012 was $3.8 million, compared to $3.9 million earned in the first six months of 2011. Net income for the first six months of 2011 included a substantial one-time tax benefit.
- 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, grew 7% to $4.4 million for the second quarter of 2012, compared to $4.2 million recorded in the second quarter of 2011. Core earnings of $8.6 million for the first half of 2012 grew 13% from the prior year.
- Annualized return on average equity and return on average assets were 9.16% and 0.54%, respectively, for the three month period ended June 30, 2012, compared to 17.21% and 0.91% for the same period in 2011, which included the significant one-time tax benefit.
- Top line revenue, consisting of net interest income and non-interest income, increased 7% to a record $11.5 million for the quarter ended June 30, 2012, compared to $10.7 million for the prior year quarter. Top line revenue for the first half of 2012 grew 7% compared to the first half of 2011.
- Average in-market deposits of $627.4 million grew 25% in the first half of 2012, increasing to 60.2% of total deposits, compared to $501.9 million, or 50.4% of total deposits, for the first six months of 2011.
- Total loans and leases at June 30, 2012 grew $30.8 million or 4% from the end of the first quarter of 2012 and were essentially flat compared to balances at June 30, 2011.
- Net interest margin was 3.49% for the second quarter of 2012, marking the highest level recorded in First Business’ tenure as a public company while improving 10 basis points compared to the second quarter of 2011.
- Non-performing assets of $17.4 million at June 30, 2012 declined by $6.6 million or 28% from December 31, 2011, and declined by $18.6 million or 52% from June 30, 2011. Non-performing assets to total assets now stands at 1.50%, the lowest level since September 30, 2008.
The Company recorded second quarter 2012 net income of $1.6 million, or diluted earnings per common share of $0.60, compared to net income of $2.5 million, or diluted earnings per common share of $0.98, for the second quarter of 2011. Net income earned in the prior year period included a substantial one-time tax benefit which reduced the Company’s second quarter 2011 effective tax rate to 3.0%.
The Company’s net income for the six months ended June 30, 2012 was $3.8 million, or $1.44 per diluted common share. This compares to net income of $3.9 million, or $1.49 per diluted common share, earned in the six months ended June 30, 2011.
"First Business again delivered outstanding core earnings in the second quarter, notably achieving record top line revenue with characteristic efficiency," said Corey A. Chambas, President and Chief Executive Officer. "Exceptional execution by our business development officers drove an increase in new clients, delivering key loan and deposit relationships with meaningful revenue growth potential. As credit costs fall and revenues grow, we continue to invest in niche business talent, building value for clients and shareholders alike in 2012 and beyond."
About First Business Financial Services, Inc.
First Business Financial Services, Inc. (Nasdaq:FBIZ) is a Wisconsin-based bank holding company, focused on the unique needs of businesses, business executives, and high net worth individuals. First Business offers commercial banking, specialty finance, and private wealth management solutions, and because of its niche focus, is able to provide its clients with unmatched expertise, accessibility, and responsiveness. For additional information, visit www.firstbusiness.com or call (608) 238-8008.
The First Business Financial Services, Inc. logo is available at http://www.firstbusiness.com/logo
Senior Vice President and Chief Financial Officer
First Business Financial Services, Inc.