First Business Reports Second Quarter Results
MADISON, Wis., Aug. 13, 2010 (GLOBE NEWSWIRE) -- First Business Financial Services, Inc. (Nasdaq:FBIZ) today filed its Quarterly Report on Form 10-Q reporting a net loss of $1.5 million for the second quarter of 2010 as compared to net income of $260,000 reported in the second quarter of 2009. The second quarter 2010 net loss is a result of a charge to earnings of $2.7 million, or $1.06 loss per diluted common share, to reflect the impairment of the Company’s goodwill. Excluding the goodwill impairment, net income was $1.2 million for the second quarter of 2010, or earnings per diluted common share of $0.46. The goodwill impairment is an accounting adjustment that does not affect cash flows, liquidity, regulatory capital, regulatory capital ratios or future operations. The Company reported a loss per diluted common share for the quarter of $0.60 versus earnings of $0.10 per diluted common share for the comparable period of 2009. As compared to the first quarter of 2010, net income before goodwill impairment increased 29.5%, from $899,000, or diluted earnings per share of $0.35.
In addition, the Company reported a net loss of $626,000 for the six months ended June 30, 2010 versus net income of $66,000 for the comparable period of 2009. The loss per diluted common share was $0.25 for the six months ended June 30, 2010 compared to earnings per diluted common share of $0.03 for the same period in 2009. Excluding the goodwill impairment of $2.7 million, or $1.06 loss per diluted common share, net income was $2.1 million for the six months ended June 30, 2010 and earnings per diluted common share was $0.81.
Corey A. Chambas, President and Chief Executive Officer, commented, "It’s important to understand that this goodwill impairment is an accounting entry that is not a reflection of our current operating performance. It is a non-cash expense that does not affect our regulatory capital or our future earnings capacity. Exclusive of this goodwill accounting entry, we earned $1.2 million in the second quarter. This easily exceeds the second quarter of 2009 and the first quarter of 2010. Especially given the challenging economic environment that persists, our operating results for the first two quarters of 2010 were very solid."
A complete copy of the Company’s Quarterly Report on Form 10-Q for the period ending June 30, 2010 and all reports filed by the Company with the SEC may be accessed through the Corporation’s website, www.firstbusiness.com.
This press release includes "forward-looking" statements related to First Business Financial Services, Inc. (the "Company") that can generally be identified as describing the Company’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company’s future results, please see the Company’s filings with the Securities and Exchange Commission.
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. 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.firstbusiness.com/logo
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.
James F. Ropella
Senior Vice President and Chief Financial Officer
First Business Financial Services, Inc.