First Business Financial Services Inc. Doubles Net Income To $3.1 Million For Second Quarter 2013
MADISON, WI, – July 25, 2013 (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 second quarter results reflecting steady and efficient execution of initiatives to increase the Company’s full banking relationships with businesses, executives and high net worth individuals.
Highlights for the quarter and six months ended June 30, 2013 include:
- Net income totaled $3.1 million for the second quarter of 2013, increasing from the $1.6 million earned in the second quarter of 2012.
- Net income of $6.4 million for the six months ended June 30, 2013 grew 69%, compared to $3.8 million earned in the first six months of 2012.
- Pre-tax adjusted earnings, defined as pre-tax income excluding the effects of provision for loan and lease losses, other identifiable costs of credit and other discrete items unrelated to the Company’s primary business activities, grew 11% to $5.0 million for the second quarter of 2013, compared to $4.4 million earned in the second quarter of 2012. Pre-tax adjusted earnings of $9.9 million for the first half of 2013 grew 16% from the prior year.
- At 1.02%, second quarter 2013 annualized return on average assets exceeded 1.0% for the second consecutive quarter and increased 48 basis points compared to the second quarter of 2012.
- Annualized return on average equity was 12.05% for the quarter ended June 30, 2013, compared to 9.16% for the same period in 2012.
- Top line revenue, consisting of net interest income and non-interest income, increased 7% to a record $12.4 million for the quarter ended June 30, 2013, compared to $11.5 million for the second quarter of 2012. Top line revenue for the first half of 2013 grew 10% compared to the first half of 2012.
- The Company’s efficiency ratio of 59.9% marked its fourth consecutive quarter below 60%.
- Average loans and leases grew for the fifth consecutive quarter to a record $931.2 million, representing an increase of $29.7 million, or an annualized 13%, from the first quarter of 2013 and an increase of $88.0 million, or 10%, from the second quarter of 2012.
- Net interest margin was 3.46% for the three months ended June 30, 2013, compared to 3.49% for the same period of 2012. Net interest margin was 3.50% for the six months ended June 30, 2013, compared to 3.32% for the same period of 2012.
- Non-performing assets of $11.8 million at June 30, 2013 decreased by $3.9 million, or 25%, from December 31, 2012, and by $5.6 million, or 32%, from June 30, 2012. Non-performing assets measured 0.93% of total assets as of June 30, 2013, falling below 1.0% for the first time since March 31, 2008.
The Company recorded net income of $3.1 million in the second quarter of 2013, compared to the $1.6 million earned in the second quarter of 2012. Diluted earnings per common share were $0.80 for the second quarter of 2013 compared to $0.60 for the same period in 2012.
The Company’s net income for the six months ended June 30, 2013 was $6.4 million, or $1.62 per diluted common share, compared to net income of $3.8 million, or $1.44 per diluted common share, earned in the six months ended June 30, 2012. Second quarter 2013 and first half 2013 earnings per share reflect the issuance and sale of 1,265,000 shares of common stock in December 2012.
As a result of the issuance and sale, the weighted-average diluted common shares outstanding during the 2013 periods were approximately 51% higher than in the corresponding periods of 2012.
“We believe our strong second quarter results validate First Business’ nimble and disciplined approach to growth,” said Corey A. Chambas, President and Chief Executive Officer. “We continued to build value across our franchise with sound credit management, an entrepreneurial approach to business development and a culture of efficiency. Notably, this quarter produced record loan balances, record top line revenue and a meaningful reduction in non-performing assets, all of which boosted bottom line results and demonstrated our ability to consistently drive enhanced earnings power and increased shareholder value.”
Read the full press release on the investor relations section of our site.
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.