First Business Reports Record Loans Strong Third Quarter Profitability
Record Fee Income, Newly Hired Talent and Sustained Asset Quality Highlight Company’s Growth
MADISON, WI, – Oct. 23, 2014 (GLOBE NEWSWIRE) – First Business Financial Services, Inc. (the “Company” or “First Business”) (NASDAQ: FBIZ), the parent company of First Business Bank and First Business Bank – Milwaukee, today reported strong third quarter profits. The Company once again grew loans and fee income to record levels while investing in talent, maintaining strong asset quality and expanding client relationships across a spectrum of financial needs.
Highlights for the quarter ended September 30, 2014 include:
- Net income totaled $3.6 million, including $104,000 in pre-tax merger-related expenses, compared to $3.6 million of net income for the third quarter of 2013, in which no merger-related expenses were recorded.
Robust business fundamentals drove strong performance across key profitability measures:
- Annualized return on average assets measured 1.06%, exceeding 1.0% for the seventh consecutive quarter.
- Annualized return on average equity of 12.10% exceeded 12.0% for the ninth consecutive quarter.
- Top line revenue, consisting of net interest income and non-interest income, increased 4% to a record $13.4 million, compared to $12.8 million for the quarter ended September 30, 2013.
- The Company’s efficiency ratio measured 60.1%, generally in line with recent levels and includes the impact of merger-related expenses and investment in talent.
- Period-end net loans and leases grew for the tenth consecutive quarter, reaching a record $1.028 billion at September 30, 2014, up 9% from September 30, 2013.
Temporarily elevated liquidity related to the timing of certain significant deposit inflows late in the quarter affected certain balance sheet measures at September 30, 2014:
- Cash and cash equivalents grew to $174.5 million, up 103% and 82% from the linked- and prior-year quarters, respectively.
- Period-end in-market deposit balances – comprised of all transaction accounts, money market accounts and non-brokered certificates of deposit – measured $859.1 million at September 30, 2014, up 18% and 20% from the linked- and prior-year quarters, respectively.
- Net interest margin declined to 3.44% for the third quarter of 2014, compared to 3.52% and 3.56% for the linked- and prior-year quarters, respectively.
- For the third consecutive quarter, the Company recorded no net charge-offs.
- Allowance for loan and lease losses as a percent of total loans and leases declined to 1.34% at September 30, 2014 from 1.59% at September 30, 2013.
- On August 26, 2014, the Company successfully completed the previously disclosed private placement of $15.0 million in subordinated debt, the proceeds of which will primarily be used to finance a portion of the pending merger with Aslin Group.
View the full press release at: www.snl.com/irweblinkx/file.aspx?IID=1021886&FID=25763930
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.