First Business Financial Services, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. The company recorded net income of $3.7 million in the fourth quarter of 2014, compared to $3.6 million earned in the third quarter of 2014 and $3.8 million earned in the fourth quarter of 2013. Diluted earnings per common share were $0.89 for the fourth quarter of 2014, compared to $0.89 for the linked quarter and $0.95 for the prior year quarter. Net interest income for the fourth quarter of 2014 totaled $13.6 million, an increase of $2.6 million, or 23.8%, compared to the fourth quarter of 2013. Fourth quarter 2014 net interest income included $2.0 million from Alterra in the final two months of the year. Income before tax expense was $5,197,000 against $5,821,000 a year ago. Return on average assets was 0.95% against 1.18% a year ago. Return on average equity was 10.92% against 13.88% a year ago.

The company's net income for the year ended December 31, 2014 was $14.1 million, or $3.51 per diluted common share, compared to $13.7 million, or $3.49 per diluted common share, earned for the year ended December 31, 2013. For the year, net interest income was $46,130,000 compared to $46,130,000 a year ago. Income before tax expense was $21,222,000 against $21,135,000 a year ago. Return on average assets was 1.04% against 1.10% a year ago. Return on average equity was 11.78% against 13.12% a year ago. Book value as of December 31, 2014 was $31.77 per share against $27.71 per share as of December 31, 2013. Tangible book value as of December 31, 2014 was $29.23 per share against $27.71 per share as of December 31, 2013.

The company reported net charge-offs for the fourth quarter of 2014. For the quarter, the company reported net charge-offs of $838,000 compared to $82,000 a year ago.