First Business Financial Services, Inc. (FBIZ) has reported a 25.39 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.40 million, or $0.39 a share in the quarter, compared with $4.55 million, or $0.52 a share for the same period last year. Revenue during the quarter dropped 6.27 percent to $18.38 million from $19.61 million in the previous year period. Net interest income for the quarter dropped 4.19 percent over the prior year period to $14.89 million. Non-interest income for the quarter fell 11.56 percent over the last year period to $4.06 million.
First Business Financial Services, Inc has made provision of $0.57 million for loan losses during the quarter, up 8.95 percent from $0.52 million in the same period last year.
Net interest margin contracted 8 basis points to 3.51 percent in the quarter from 3.59 percent in the last year period. Efficiency ratio for the quarter deteriorated to 70.85 percent from 62.44 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"The execution of our strategy, including prudent investments in talent, is reflected in this quarter’s solid loan production and continued growth in our trust and investment services business, which again delivered record fee income," said Corey Chambas, President and Chief Executive Officer. "We intend to continue this momentum with the rebuild of our SBA lending business, strategically diversifying our sources of revenue while improving operating efficiency. At the same time, we remain committed to maintaining a lending culture where credit quality is foundational and we are disappointed with the increase in non-performing assets that blemished our otherwise positive first quarter performance.”
Assets, liabilities remain almost stable Total assets stood at $1,800.59 million as on Mar. 31, 2017, up 0.58 percent compared with $1,790.13 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,636.46 million as on Mar. 31, 2017, up 0.09 percent from $1,634.93 million on Mar. 31, 2016. Net loans stood at $1,459.30 million as on Mar. 31, 2017. Deposits stood at $1,492.71 million as on Mar. 31, 2017, down 5.62 percent compared with $1,581.59 million on Mar. 31, 2016.
Investments stood at $185.54 million as on Mar. 31, 2017. Shareholders equity stood at $164.13 million as on Mar. 31, 2017, up 5.76 percent or $8.93 million from year-ago.
Return on average assets moved down 23 basis points to 0.77 percent in the quarter from 1 percent in the last year period. At the same time, return on average equity decreased 339 basis points to 8.31 percent in the quarter from 11.70 percent in the last year period.
Nonperforming assets moved up 99.56 percent or $19.45 million to $38.99 million on Mar. 31, 2017 from $19.54 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 2.17 percent in the quarter, up from 1.09 percent in the last year period.
Book value per share was $18.83 for the quarter, up 5.55 percent or $0.99 compared to $17.84 for the same period last year.
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