First Business Reports Record Profit $4.5 Million
MADISON, WI, – April 28, 2016 (GLOBE NEWSWIRE) – First Business Financial Services, Inc. (the “Company” or “First Business”) (NASDAQ: FBIZ), the parent company of First Business Bank, First Business Bank – Milwaukee and Alterra Bank (“Alterra”), today reported record first quarter results, driven by the Company’s high-quality balance sheet growth, strong SBA lending execution, and sound credit profile.
Highlights for the first quarter of 2016 include:
- Net income grew to $4.5 million, marking an 8% increase, compared to $4.2 million earned in the first quarter of 2015.
- Diluted earnings per common share increased 8% to $0.52 for the first quarter of 2016, compared to $0.48 for the first quarter of 2015.
- Annualized return on average assets and return on average equity measured 1.00% and 11.68%, respectively, for the first quarter of 2016, compared to 1.00% and 11.98%, respectively, for the first quarter of 2015.
- Top line revenue, consisting of net interest income and non-interest income, increased 7% to a record $20.1 million, compared to $18.8 million for the first quarter of 2015. These results benefited from a 4% increase in net interest income, principally due to a 12% increase in average loans and leases, and a 172% increase in gains on the sale of SBA loans, year over year.
- The Company’s first quarter efficiency ratio measured 62.44%, compared to 62.47% for the first quarter of 2015.
- Period-end loans and leases receivable grew for the sixteenth consecutive quarter to a record $1.449 billion, up 1.2% from December 31, 2015.
- Net interest margin measured 3.59% for the first quarter of 2016, compared to 3.79% for the first quarter of 2015.
- Excluding the impact of net accretion/amortization on purchase accounting adjustments on Alterra balances in both quarters, net interest margin measured 3.51% for the first quarter of 2016, improving four basis points from 3.47% for the first quarter of 2015.
- Provision for loan and lease losses was $525,000 for the first quarter of 2016, compared to $684,000 for the first quarter of 2015. Net charge offs were $157,000 in the first quarter of 2016, compared to $319,000 in the first quarter 2015.
- Non-performing assets as a percent of total assets declined to 1.09% at March 31, 2016, compared to 1.34% at December 31, 2015.
“Our unique business banking model produced record results this quarter, kicking off 2016 with excellent momentum,” said Corey Chambas, President and Chief Executive Officer. “The First Business team continued to execute efficiently, growing loans, in-market deposits and revenues to record levels, while also maintaining asset quality. Clearly our growth strategy is working. We expect to continue driving high quality growth in 2016, creating additional value for both our clients and shareholders.”
View the full release on the Investor Relations section of our website: https://www.snl.com/irweblinkx/file.aspx?IID=1021886&FID=34072499
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.