First Business Financial Services Inc., the Madison-based parent company of First Business Bank and First Business Bank-Milwaukee, reported record first quarter net income of $3.2 million, up 47 percent from $2.2 million in the same period a year ago.
The jump in net income reflects continued success of the company’s initiatives to capture loan and deposit balances from commercial clients in its markets, enhance the profitability of its business relationships and improve asset quality.
However, the firm’s diluted earnings per share dipped slightly to 83 cents per share from 84 cents a year earlier, due to the issuance and sale of 1.3 million shares of common stock in December 2012. As a result of the issuance and sale, the weighted-average diluted common shares outstanding during the first quarter of 2013 were approximately 51.3 percent higher than in the first quarter of 2012.
“We believe record first quarter results exhibit our team’s across-the-board success in cultivating profitable relationships with new and existing clients in our markets,” said Corey Chambas, president and chief executive officer of the bank. “Since the start of the general economic downturn a few years ago we have seen exceptional opportunities to capitalize on market disruption in Wisconsin. We were able to grow loans for the fourth consecutive quarter, despite the first quarter historically being our softest for loan growth. This quarter’s record loan balances, meaningfully improved asset quality and strong revenue growth reflect our solid execution toward this goal. Our improved earnings power allowed us to double our quarterly dividend during the first quarter, and we anticipate the earnings momentum we have built will continue to deliver increased shareholder value in 2013 and beyond.”