First Business Financial Services, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Declares Regular Quarterly Dividend, Payable on February 21, 2014; Announces Impairment Charges for the Fourth Quarter of 2013
January 31, 2014 at 02:56 am IST
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First Business Financial Services, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. The company recorded net income of $3.8 million in the fourth quarter of 2013, an increase of 49% compared to $2.5 million earned in the fourth quarter of 2012. Diluted earnings per common share were $0.95 for the fourth quarter of 2013 compared to $0.86 for the same period in 2012. Net interest income increased $1.6 million, or 16.5%, to $11.0 million for the fourth quarter of 2013 compared to $9.4 million for the fourth quarter of 2012. The increase in net interest income largely resulted from continued growth in the loan and lease portfolios combined with a 47 basis point reduction in the cost of interest-bearing liabilities. Income before tax expense was $5.82 million against $3.83 million a year ago. Net income was $3.76 million or $0.95 diluted per share against $2.52 million or $0.86 diluted per share a year ago. Book value was $27.71 per share against $25.41 per share a year ago. Tangible book value was $27.71 per share against $25.41 per share a year ago. Return on average assets was 1.18% against 0.84% a year ago. Return on average equity was 13.88% against 12.88% a year ago.
The company's net income for the year ended December 31, 2013 was $13.7 million, or $3.49 per diluted common share, compared to net income of $8.9 million, or $3.29 per diluted common share, earned in the year ended December 31, 2012. Net interest income for the full year 2013 increased by $4.2 million, or 11.2%, to $42.1 million, compared to $37.9 million for the full year 2012. The increase in net interest income was mainly attributable to a 42 basis point decrease in the cost of interest-bearing deposits. Income before tax expense was $21.13 million against $13.67 million a year ago. Net income was $13.746 million or $3.49 diluted per share against $8.92 million or $3.29 diluted per share a year ago. Book value was $27.71 per share against $25.41 per share a year ago. Tangible book value was $27.71 per share against $25.41 per share a year ago. Return on average assets was 1.10% against 0.75% a year ago. Return on average equity was 13.12% against 12.65% a year ago.
The company's board of directors has determined the company's consistently solid performance supports an increase in the amount of capital returned to shareholders through cash dividends. At its January 24, 2014 meeting, the board declared a regular quarterly dividend of $0.21 per share, an increase of 50% from the regular quarterly dividends declared in 2013. This regular cash dividend is payable on February 21, 2014 to shareholders of record at the close of business on February 11, 2014.
The company recognized $82,000 in net charge-offs during the fourth quarter of 2013, resulting in annualized net charge-offs as a percentage of average gross loans and leases measuring 0.03% for the quarter. This compares to net charge-offs of $126,000 for the third quarter of 2013 and net charge-offs of $150,000 for the fourth quarter of 2012.
First Business Financial Services, Inc. is a bank holding company. The Company is engaged in the commercial banking business through its bank subsidiary, First Business Bank (the Bank). The Bank operates as a business bank, delivering a full line of commercial banking products and services tailored to meet the specific needs of small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. Its products and services are focused on business banking, private wealth, and bank consulting. It offers commercial real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration (SBA) lending and servicing, treasury management solutions, and company retirement services. Its private wealth management services include trust and estate administration, financial planning, investment management, and private banking.
First Business Financial Services, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Declares Regular Quarterly Dividend, Payable on February 21, 2014; Announces Impairment Charges for the Fourth Quarter of 2013