First Business Financial Services, Inc (FBIZ) has reported 2.82 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $3.97 million, or $0.46 a share in the quarter, compared with $4.08 million, or $0.47 a share for the same period last year. Revenue during the quarter grew 9.68 percent to $19.69 million from $17.95 million in the previous year period. Net interest income for the quarter rose 12.35 percent over the prior year period to $16.75 million. Non-interest income for the quarter fell 20.34 percent over the last year period to $3.93 million.
First Business Financial Services, Inc has made provision of $0.99 million for loan losses during the quarter, down 47.55 percent from $1.90 million in the same period last year.
Net interest margin improved 28 basis points to 3.91 percent in the quarter from 3.63 percent in the last year period. Efficiency ratio for the quarter improved to 57.52 percent from 58.75 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“Disciplined execution of our strategy helped us grow quarterly earnings to $4 million and post an annual profit of $15 million, even while navigating challenging events and making thoughtful investments in our franchise,” said Corey Chambas, President and Chief Executive Officer. “We intend to continue our efforts to build a quality banking business that uniquely serves our clients and rewards our shareholders.”
Assets, liabilities remain almost stable
Total assets stood at $1,780.70 million as on Dec. 31, 2016, down 0.12 percent compared with $1,782.89 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,619.05 million as on Dec. 31, 2016, down 0.80 percent from $1,632.06 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,429.76 million as on Dec. 31, 2016, up 0.88 percent compared with $1,417.35 million on Dec. 31, 2015. Deposits stood at $1,538.86 million as on Dec. 31, 2016, down 2.43 percent compared with $1,577.23 million on Dec. 31, 2015.
Investments stood at $184.50 million as on Dec. 31, 2016, up 3.75 percent or $6.67 million from year-ago. Shareholders equity stood at $161.65 million as on Dec. 31, 2016, up 7.17 percent or $10.82 million from year-ago.
Return on average assets moved down 4 basis points to 0.89 percent in the quarter from 0.93 percent in the last year period. At the same time, return on average equity decreased 103 basis points to 9.82 percent in the quarter from 10.85 percent in the last year period.
Nonperforming assets moved up 11.22 percent or $2.69 million to $26.67 million on Dec. 31, 2016 from $23.98 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 1.50 percent in the quarter, up from 1.35 percent in the last year period.
Book value per share was $18.55 for the quarter, up 6.98 percent or $1.21 compared to $17.34 for the same period last year.
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