Business
First Business Reports Third Quarter 2020 Financial Results
-- Record loan growth and top line revenue partially offset by a 12% reserve build -- -- Trust assets surpass the $2 billion mark -- MADISON, Wis.--(BUSINESS
About this update from First Business Financial Services, Inc.
[{"type":"text","content":"\n-- Record loan growth and top line revenue partially offset by a 12% reserve build --\n-- Trust assets surpass the $2 billion mark --\n\n MADISON, Wis.--(BUSINESS WIRE)--\nFirst Business Financial Services, Inc. (the “Company” or “First Business”) (Nasdaq:FBIZ) reported stable net interest income and record non-interest income, resulting in net income of $4.3 million, or diluted earnings per share of $0.50, in the third quarter 2020. First Business’s solid operating performance during the quarter was offset by a $3.8 million provision for loan and lease losses and related 12.2% increase in the allowance for loan and lease losses primarily due to the COVID-19 pandemic.\n\n“First Business’s commitment to provide extraordinary levels of service and responsiveness to a growing number of clients was evident in the third quarter, with record loan growth, in-market deposits and top-line revenue,” said Corey Chambas, President and Chief Executive Officer. “Strong revenue, which was boosted by fee income growing to 28% of total revenue, coupled with expense management, enabled us to increase net income. We accomplished this even as the Company continued to build reserves to prudently strengthen the balance sheet in light of the public health and economic challenges that we continue to face as a nation. We are also encouraged by favorable COVID-19 deferral trends, as 95% of clients whose first deferral concluded during the quarter resumed their scheduled payments.”\n\nSummary results as of and for the quarter ended September 30, 2020:\n\n\nNet income totaled $4.3 million, or diluted earnings per share of $0.50, in the third quarter of 2020, compared to $3.3 million, or diluted earnings per share of $0.38, in the second quarter of 2020 and $5.1 million, or diluted earnings per share of $0.59, in the third quarter of 2019.\n\n\nAnnualized return on average assets and annualized return on average equity measured 0.68% and 8.58%, respectively, compared to 0.55% and 6.70% for the linked quarter and 0.97% and 10.68% for the third quarter of 2019.\n\n\nAs of September 30, 2020, the Company had $332.3 million in Paycheck Protection Program (“PPP”) loans outstanding and $6.9 million of deferred processing fees from the Small Business Administration (“SBA”). The processing fees are deferred and recognized as interest income over the contractual l...