MADISON, Wis., April 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 strong first quarter results highlighted by growth in top line revenue, a meaningful reduction in non-performing assets, and continued capital strength.
Highlights for the quarter ended March 31, 2012 include:
- 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."Read full release.