First Business Financial Services Inc. Announces Record 2011 Earnings
MADISON, WI, – March 9, 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 fourth quarter and record full year 2011 net income, as the Company continued to increase top line revenue, reduce the level of non-performing assets and improve operating efficiency.
Highlights for the periods ended December 31, 2011 include:
- Net income for the three months ended December 31, 2011 increased to $2.4 million, compared to $598,000 for the same period of 2010.
- Net income was $8.4 million for the year ended December 31, 2011, compared to $941,000 for the year ended December 31, 2010. Excluding 2010’s $2.7 million goodwill impairment charge, net income for the year ended December 31, 2011 grew $4.8 million or 132% over the prior year.
- Annualized return on average equity and return on average assets increased to 15.02% and 0.82%, respectively, for the fourth quarter of 2011, compared to 4.21% and 0.21% for the same period in 2010.
- Return on average equity and return on average assets increased to 14.03% and 0.75%, respectively, for 2011, compared to 1.67% and 0.09% for 2010. Excluding the goodwill impairment, return on average equity and return on average assets for 2010 were 6.46% and 0.33%, respectively.
- Net interest margin of 3.29% for the year ended December 31, 2011 was an improvement of 25 basis points compared to 2010.
- Top line revenue, consisting of net interest revenue and non-interest income, increased 10% to $42.5 million for the year ended December 31, 2011, compared to $38.7 million for the year ended December 31, 2010.
- Provision for loan and lease losses was $4.3 million for the year ended December 31, 2011, down $2.8 million or 40% from the prior year. Non-performing assets of $24.0 million at December 31, 2011 declined by $16.2 million or 40% from December 31, 2010. The Company’s efficiency ratio improved by 474 basis points to 61.0% for the year ended December 31, 2011, compared to 65.8% for 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, of $16.5 million for year ended December 31, 2011 grew 25% over 2010.
About First Business
First Business Financial Services 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.