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.