First Business Financial Services Inc. Reports 47 Percent Increase In Net Income To A Record $3.2 Million For First Quarter 2013
MADISON, WI, – April 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 record first quarter earnings reflecting continued success of the Company’s initiatives to capture loan and deposit balances from commercial clients in its markets, enhance the profitability of its business relationships and improve asset quality.
Highlights for the quarter ended March 31, 2013 include:
- Net income was a record $3.2 million, increasing 47% from $2.2 million earned in the first quarter of 2012.
- Core 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 core business activities, grew 21% to $5.0 million for the first quarter of 2013, compared to $4.1 million earned in the first quarter of 2012.
- Annualized return on average assets was 1.06% for the quarter ended March 31, 2013, compared to 0.74% for the same period in 2012. First quarter 2013 return on average assets measured the highest in the Company’s tenure as a publicly-traded company.
- Annualized return on average equity was 12.80% for the quarter ended March 31, 2013, compared to 13.43% for the same period in 2012. The return on average equity declined year over year despite record net income due to the addition of approximately $27.1 million of equity raised in the Company’s December 2012 common stock offering.
- Top line revenue, consisting of net interest income and non-interest income, increased 13% to a record $12.2 million for the quarter ended March 31, 2013, compared to $10.8 million for the first quarter of 2012.
- Trust assets under management and administration as of March 31, 2013 were a record $843.0 million, an increase of $106.2 million, or 14%, from March 31, 2012.
- The Company’s efficiency ratio of 59.2% marked its third consecutive quarter below 60%.
- Average in-market deposits grew to a record $722.7 million for the three months ended March 31, 2013, increasing 15% to 66.8% of total deposits, compared to $630.8 million, or 59.4% of total deposits, for the three months ended March 31, 2012.
- Average loans and leases measured a record $901.5 million for the first quarter of 2013, representing an increase of $15.5 million, or an annualized 7%, from the fourth quarter of 2012 and an increase of $61.7 million, or 7%, from the first quarter of 2012.
- Net interest margin was a record 3.53% for the quarter ended March 31, 2013, improving 38 basis points compared to the same period of 2012.
- Non-performing assets of $12.6 million at March 31, 2013 decreased by $3.1 million, or 20%, from December 31, 2012 and by $10.2 million, or 45%, from March 31, 2012. Non-performing assets measured 1.03% of total assets as of March 31, 2013, marking the Company’s lowest level since March 31, 2008.
- In the first quarter of 2013 the Company doubled its regular quarterly dividend to $0.14 per share, representing a modest and sustainable payout ratio of 17% of first quarter 2013 earnings per share.
The Company recorded net income of $3.2 million in the first quarter of 2013, an increase of 46.8% compared to $2.2 million earned in the first quarter of 2012. Diluted earnings per common share were $0.83 for the first quarter of 2013 compared to $0.84 for the 2012 period, a decline of $0.01 despite overall earnings growth primarily due to 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 first quarter of 2013 were approximately 51.3% higher than in the first quarter of 2012.
“We believe record first quarter results exhibit our team’s across-the-board success in cultivating profitable relationships with new and existing clients in our markets,” said Corey A. Chambas, President and Chief Executive Officer. “Since the start of the general economic downturn a few years ago we have seen exceptional opportunities to capitalize on market disruption in Wisconsin. We were able to grow loans for the fourth consecutive quarter, despite the first quarter historically being our softest for loan growth. This quarter’s record loan balances, meaningfully improved asset quality and strong revenue growth reflect our solid execution toward this goal. Our improved earnings power allowed us to double our quarterly dividend during the first quarter, and we anticipate the earnings momentum we have built will continue to deliver increased shareholder value in 2013 and beyond.”
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.