First Business Reports Record Profit of $5.9 Million
MADISON, Wis.–(BUSINESS WIRE)–First Business Financial Services, Inc. (the “Company” or “First Business”) (Nasdaq:FBIZ) reported first quarter 2019 net income of $5.9 million, driven by exceptional loan and deposit growth, solid net interest margin, record top line revenue, and reduced credit costs.
Summary results for the quarter ended March 31, 2019 include:
- Net income increased to a record $5.9 million, compared to $4.1 million in the linked quarter and $3.6 million in the first quarter of 2018.
- Diluted earnings per common share measured $0.67, compared to $0.46 and $0.42 for the linked and prior year quarters, respectively.
- Annualized return on average assets and annualized return on average equity measured 1.20% and 13.67%, respectively, compared to 0.83% and 9.06% for the linked quarter and 0.78% and 8.88% for the first quarter of 2018.
- Net interest margin was 3.79%, compared to 3.69% in the linked quarter and 3.65% for the first quarter of 2018.
- Net interest income was $17.8 million, increasing by $639,000 from the linked quarter and by $1.6 million from the first quarter of 2018.
- Top line revenue, the sum of net interest income and non-interest income, totaled a record $22.4 million, compared to $21.8 million in the linked quarter and $20.9 million in the first quarter of 2018.
- Provision for loan and lease losses was $49,000, compared to $983,000 for the linked quarter and $2.5 million for the first quarter of 2018.
- SBA recourse provision was $481,000, compared to $1.8 million in the linked quarter and a recourse benefit of $295,000 for the first quarter of 2018.
- The Company’s efficiency ratio measured 68.04%, compared to 66.95% for the linked quarter and 67.45% for the first quarter of 2018.
- The Company’s active in-market historic tax credit program contributed $846,000, or $0.10 per share, compared to $752,000, or $0.09 per share, in the linked quarter and zero contribution in the first quarter of 2018.
- Record period-end, gross loans and leases receivable of $1.657 billion grew 9.6% annualized during the first quarter of 2019 and 6.0% from March 31, 2018.
- Non-performing assets were $26.1 million at March 31, 2019, compared to $27.8 million and $21.5 million at December 31, 2018 and March 31, 2018, respectively.
- Record period-end, in-market deposits of $1.239 billion, which consist of all transaction accounts, money market accounts, and non-wholesale deposits, increased 20.4% annualized during the first quarter of 2019 and 5.1% from March 31, 2018.
“The strong fundamental performance combined with lower credit costs and unusually high levels of certain recurring income items that can be volatile on a quarterly basis, namely fees in lieu of interest and historic tax credit benefits, resulted in quarterly earnings that exceeded expectations,” said Corey Chambas, President and Chief Executive Officer.
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.