Business
First Business Bank Reports Strong Second Quarter 2021 Net Income of $8.2 Million
-- Performance driven by loan growth, strength and diversification of fee income, and provision benefit -- -- Continued asset quality improvement, with
About this update from First Business Financial Services, Inc.
[{"type":"text","content":"\n-- Performance driven by loan growth, strength and diversification of fee income, and provision benefit --\n\n-- Continued asset quality improvement, with non-performing assets down 39% during the quarter --\n\n MADISON, Wis.--(BUSINESS WIRE)--\nFirst Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq:FBIZ) reported net income of $8.2 million, or $0.95 diluted earnings per share, in the second quarter 2021. This compares to record net income of $9.7 million or $1.12 in the first quarter of 2021, and $3.3 million or $0.38 in the second quarter of 2020.\n\n“First Business Bank again delivered strong financial performance in the second quarter, highlighted by continued double-digit annualized loan growth, further improvement in asset quality metrics, and diversified fee income,” President and Chief Executive Officer Corey Chambas said. “Our active management of asset quality led to another significant reduction in non-performing assets as well as a provision benefit that positively impacted the bottom-line. Our NPAs as a percentage of total assets are at the lowest level since 2006 and, based on what we are seeing today, we believe there will be additional reductions in NPAs and release of reserves in the second half of 2021. Therefore, at this time, we believe there will be no meaningful provision for the second half of 2021, even though we expect double-digit organic loan growth to continue.”\n\nQuarterly Highlights\n\n\nExceptional Loan Growth. Loans, excluding Paycheck Protection Program (“PPP”) loans, grew $55.3 million, or 11.2% annualized, from the first quarter of 2021 and $286.0 million, or 16.5%, from the second quarter of 2020, as we continued to expand specialized lending offerings for commercial clients and focus on business development across products and geographies. This marks the fourth consecutive quarter of 10% or greater annualized loan growth, excluding PPP loans.\n\n\nPositive Asset Quality Trends. Non-performing assets (“NPAs”) declined 39.0% to $11.6 million, marking the third consecutive quarterly reduction of more than 25%. NPAs made up 0.42% of total assets, excluding PPP loans, improving by 39 and 77 basis points from March 31, 2021 and June 30, 2020, respectively.\n\n\nDiversified Fee Income. Second quarter 2021 non-interest income continued to reflect the ...