This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

First Business Financial Services, Inc. Third Quarter Net Income Increases 38% To A Record $3.6 Million

Stocks in this article: FBIZ

Record Nine Month Net Income of $10.0 Million Up 56% Compared to Prior Year Period

Asset Quality Metrics Remain Strong and Continue to Improve in the Third Quarter

MADISON, Wis., Oct. 24, 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 continued strong performance for 2013, with third quarter and nine month earnings up significantly compared to the prior year periods. This strong year-to-date 2013 momentum is being driven by a continued focus on consistent high quality loan growth, steadily improving asset quality and efficient execution of the Company's initiatives to increase full banking relationships with businesses, executives and high net worth individuals.

Highlights for the quarter and nine months ended September 30, 2013 include:

  • Net income totaled a record $3.6 million for the third quarter of 2013, an increase of $987,000 from the third quarter of 2012.
  • Record net income of $10.0 million for the nine months ended September 30, 2013 increased by $3.6 million, compared to the first nine months of 2012.
  • Pre-tax adjusted 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 primary business activities, grew 15% to a record $5.6 million for the third quarter of 2013, compared to $4.9 million earned in the third quarter of 2012. Pre-tax adjusted earnings of $15.6 million for the first nine months of 2013 improved 16% over the prior year.
  • At a record 1.14%, third quarter 2013 annualized return on average assets exceeded 1.0% for the third consecutive quarter, increasing 26 basis points compared to the third quarter of 2012, and improving 12 basis points from the linked second quarter.
  • Annualized return on average equity was 13.73% for the quarter ended September 30, 2013, compared to 15.10% for the same period in 2012. The return on average equity declined year over year despite record net income due to the addition of $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, was a record $12.8 million for the third quarter of 2013, an increase of $659,000, or 5%, compared to the third quarter of 2012. Top line revenue grew 8% to $37.4 million for the first nine months, compared to the same period of 2012.
  • Trust assets under management and administration as of September 30, 2013 were a record $910.8 million, an increase of $164.7 million, or 22%, from September 30, 2012.
  • The Company's efficiency ratio of 56.11% was its fifth consecutive quarter below 60%.
  • Average loans and leases grew for the sixth consecutive quarter to a record $939.1 million, an increase of $8.0 million, or an annualized 3.4%, from the second quarter of 2013, and an increase of $60.3 million, or 6.9%, from the third quarter of 2012.
  • Net interest margin was 3.56% for the three months ended September 30, 2013, compared to 3.50% for the same period of 2012. The year-to-date net interest margin of 3.52% improved 14 basis points compared to 3.38% for the same period of 2012.
  • Non-performing assets of $10.3 million at September 30, 2013 decreased by $5.4 million, or 34%, from December 31, 2012, and by $4.7 million, or 31%, from September 30, 2012. Non-performing assets improved to 0.82% of total assets as of September 30, 2013, down 44 basis points from September 30, 2012 and 46 basis points from December 31, 2012.

The Company recorded net income of $3.6 million in the third quarter of 2013, an increase of 38% compared to $2.6 million earned in the third quarter of 2012. Diluted earnings per common share were $0.91 for the third quarter of 2013 compared to $0.99 for the same period in 2012. The Company's net income for the nine months ended September 30, 2013 was $10.0 million, or $2.54 per diluted common share, compared to net income of $6.4 million, or $2.43 per diluted common share, earned in the nine months ended September 30, 2012. Third quarter 2013 and year-to-date 2013 earnings per share reflect the issuance and sale of 1,265,000 shares of common stock in December 2012. The Company's weighted-average diluted common shares outstanding during the 2013 periods were approximately 51% higher than in the corresponding periods of 2012 as a result of the issuance and sale of these shares.

1 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,066.84 +36.63 0.20%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs