Earnings slip almost 4% for parent of First Business Bank-Milwaukee
Second-quarter earnings slipped almost 4% for the parent company of First Business Bank-Milwaukee as it boosted loan-loss reserves.
Madison-based First Business Financial Services Inc. posted net income of $3.7 million, or 43 cents per share, in the second quarter. That compared with almost $3.9 million, or 45 cents, in last year’s second quarter.
First Business added nearly $2.8 million to loan-loss reserves in the quarter to cover loans that could go bad. In the second quarter of 2015, the bank added $520,000 to loan-loss reserves. Allocating money to loan-loss reserves cuts directly into a bank’s profit.
“Despite the quarter’s uncharacteristic credit challenges, we firmly believe in the credit process that has served us well over the past 25 years,” Corey Chambas, president and chief executive, said in a statement. “The new credit issues this quarter, which we believe are not systemic, are situations which we have thoroughly reviewed and we have made changes to processes which should prevent similar issues on a go forward basis.”