First Business Financial Services, Inc. (NASDAQ:FBIZ) Files An 8-K Regulation FD Disclosure

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First Business Financial Services, Inc. (NASDAQ:FBIZ) Files An 8-K Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure.

On December 22, 2017 the Tax Cuts and Jobs Act (the “Act”) was signed into law, a tax reform bill which, among other items, reduces the current corporate federal income tax rate to 21% from 35%. The rate reduction is effective January 1, 2018.

First Business Financial Services, Inc. (the “Company”) has concluded that the Act will cause the Company’s deferred taxes to be revalued. The Company estimates that it will reduce the value of its net deferred tax assets by approximately $700,000, which will be recorded as additional income tax expense during the fourth quarter of 2017. Under this methodology, the estimated fourth quarter earnings impact would represent approximately ($0.08) per share based on estimated fourth quarter weighted-average diluted shares of approximately $8.7 million. The estimated revaluation adjustment represents 0.45% of the Company’s September 30, 2017 tangible book value of $154.0 million.

The Company’s revaluation of its deferred tax asset is subject to further refinement as additional information becomes available and further analysis is completed. At this time, the Company is unable to make a final determination of the precise impact on its earnings.


About First Business Financial Services, Inc. (NASDAQ:FBIZ)

First Business Financial Services, Inc. (FBFS) is a bank holding company. The Company engages in the commercial banking business through its bank subsidiaries, which include First Business Bank (FBB), First Business Bank-Milwaukee (FBB-Milwaukee) and Alterra Bank (Alterra) (FBB and FBB-Milwaukee and, together with FBB, the Banks). The operations of FBFS are conducted through the Banks and certain subsidiaries of FBB. The Banks operate as business banks focusing on delivering a line of commercial banking products, including commercial loans and commercial real estate loans, and services to meet the needs of small- and medium-sized businesses, business owners, executives, professionals and high net worth individuals. Its business lines include commercial lending, asset-based financing, equipment financing, small business administration (SBA) lending, treasury management services, and trust and investment services. Its investments include short-term investments and securities.

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