First Business Reports Record Net Income Solid Loan Growth For 3q 2012
Record Top-Line Revenue and Improved Asset Quality Drive 20% Growth in Earnings
MADISON, WI, – Oct. 26, 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 record third quarter results highlighted by growth in revenue, in-market deposits, commercial loan balances and problem loan resolutions.
Highlights for the quarter and nine months ended September 30,
- Net income for the third quarter of 2012 was a record $2.6 million, representing a 20% increase compared to $2.2 million earned in the third quarter of 2011.
- Net income for the nine months ended September 30, 2012 was $6.4 million, 6% higher compared to $6.0 million earned in the first nine months of 2011. Net income for the first nine months of 2011 included a substantial one-time tax benefit relating to a change in Wisconsin tax law.
- 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 the Company’s core business activities, grew 19% to a record $4.9 million for the third quarter of 2012, compared to $4.1 million recorded in the third quarter of 2011. Core earnings of $13.5 million for the first nine months of 2012 grew 15% from the prior year.
- Annualized return on average equity and return on average assets were 15.10% and 0.88%, respectively, for the three month period ended September 30, 2012, compared to 14.02% and 0.78% for the same period in 2011. For the nine months ended September 30, 2012, annualized return on average equity and return on average assets were 12.57% and 0.72% respectively, compared to 13.67% and 0.72% in 2011. Returns for the first nine months of 2011 included a substantial one-time tax benefit relating to a change in Wisconsin tax law.
- Top line revenue, consisting of net interest income and non-interest income, increased 12% to a record $12.2 million for the quarter ended September 30, 2012, compared to $10.8 million for the prior year quarter. Top line revenue of $34.5 million for the first nine months of 2012 grew 9% compared to the first nine months of 2011.
- Average in-market deposits of $635.4 million grew 27% in the first nine months of 2012, increasing to 60.8% of total deposits, compared to $502.0 million, or 50.4% of total deposits, for the first nine months of 2011.
- Net loans and leases at September 30, 2012 increased $15.8 million or an annualized 7% from June 30, 2012.
- Net interest margin was 3.50% for the third quarter of 2012, marking the highest level recorded in the Company’s tenure as a public company while improving 10 basis points compared to the third quarter of 2011.
- Non-performing assets of $15.0 million at September 30, 2012 decreased by $9.0 million, or 37%, from December 31, 2011, and decreased by $14.0 million, or 48%, from September 30, 2011. Non-performing assets now measure 1.26% of total assets, the lowest level since September 30, 2008.
The Company earned record net income of $2.6 million in the third quarter 2012, an increase of 20.3% compared to net income of $2.2 million earned in the third quarter of 2011. Diluted earnings per common share were $0.99 for the third quarter of 2012 compared to $0.83 for the year ago period.
The Company recorded net income for the nine months ended September 30, 2012 of $6.4 million, an increase of 5.9% from $6.0 million earned in the nine months ended September 30, 2011. Diluted earnings per common share were $2.43 for the first nine months of 2012 compared to $2.32 earned in the prior year period.
“First Business’ third quarter results validate the course we’ve charted for growth in 2012 and beyond,” said Corey A. Chambas, President and Chief Executive Officer. “We earned record top-line revenues, core earnings and net income, even as we continued to invest in new, revenue-generating business development staff. We saw impressive commercial loan growth while credit quality continued to improve. The quality and consistency of our quarterly performance demonstrates First Business’ ability to execute on strategic growth opportunities while delivering increasing shareholder value.”
Read the full press release on the investor relations section of our website: https://www.snl.com/irweblinkx/file.aspx?IID=1021886&FID=14819612
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.