Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a met ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-an ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34095 FIRST BUSINESS FINANCIAL SERVICES, INC. (Exact name of registrant as specified in its charter) Wisconsin 39-1576570 (State or othe ...

MADISON, Wis.--(BUSINESS WIRE)--First Business Financial Services, Inc. (the “Company” or “First Business Bank”) (Nasdaq: FBIZ) announced its board of directors has declared a quarterly cash dividend on its common stock of $0.25 per share which is equivalent to a dividend yield of 2.53% based on Friday's market close price of $39.56. The quarterly dividend represents a 10% increase over the quarterly dividend declared in October 2023, and, based on fourth quarter 2023 earnings per share, represents a divide ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to s ...

FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 001-34095 FIRST BUSINESS FINANCIAL SERVICES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) | Wisconsin | 39-1576570 | | --- | --- | | (State or other jurisdiction o ...

PART I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show asset growth to $3.16 billion and net income of $9.0 million, reflecting the adoption of the new CECL accounting standard [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $3.16 billion, driven by loan growth and funded by a substantial increase in deposits Consolidated Balance Sheet Highlights (Unaudited) | (In Thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $185,973 | $102,682 | | Loans and leases receivable, net | $2,513,223 | $2,418,836 | | **Total assets** | **$3,164,411** | **$2,976,611** | | **Liabilities & Equity** | | | | Deposits | $2,476,840 | $2,168,206 | | Federal Home Loan Bank advances and other borrowings | $341,859 | $456,808 | | **Total liabilities** | **$2,897,830** | **$2,715,971** | | **Total stockholders' equity** | **$266,581** | **$260,640** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2023 net income was $8.8 million, as a 24.6% rise in net interest income was offset by higher credit provisions and expenses Q1 2023 vs Q1 2022 Income Statement Highlights (Unaudited) | (In Thousands, Except Per Share Data) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net interest income | $26,705 | $21,426 | | Provision for credit losses | $1,561 | $(855) | | Total non-interest income | $8,410 | $7,386 | | Total non-interest expense | $21,767 | $18,823 | | Net income | $8,979 | $8,672 | | Net income available to common shareholders | $8,760 | $8,672 | | Diluted earnings per common share | $1.05 | $1.02 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income rose to $10.6 million in Q1 2023 from $2.3 million in Q1 2022, driven by a positive swing in other comprehensive income Q1 2023 vs Q1 2022 Comprehensive Income (Unaudited) | (In Thousands) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net income | $8,979 | $8,672 | | Total other comprehensive income (loss) | $1,639 | $(6,406) | | **Comprehensive income** | **$10,618** | **$2,266** | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity rose to $266.6 million, driven by net income but partially offset by CECL adoption, dividends, and share repurchases - A cumulative change in accounting principle (adoption of CECL) reduced retained earnings by **$1.35 million** at the start of the period[16](index=16&type=chunk) - The company repurchased **56,394 shares** of treasury stock for **$1.86 million** during Q1 2023[16](index=16&type=chunk) - Cash dividends of **$0.2275 per share** were declared, totaling **$1.9 million**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $83.3 million, as strong cash from financing activities offset cash used in investing activities Q1 2023 vs Q1 2022 Cash Flow Summary (Unaudited) | (In Thousands) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,909 | $2,098 | | Net cash used in investing activities | $(116,346) | $(40,085) | | Net cash provided by financing activities | $189,728 | $76,480 | | **Net increase in cash and cash equivalents** | **$83,291** | **$38,493** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the CECL standard adoption, loan and deposit portfolio growth, derivative positions, and strong regulatory capital ratios - On January 1, 2023, the Corporation adopted ASU 2016-13 (CECL), resulting in a net decrease to retained earnings of **$1.4 million**[27](index=27&type=chunk)[28](index=28&type=chunk) - The company has elected to phase in the regulatory capital impact of CECL adoption over a **three-year period**[50](index=50&type=chunk) - Total non-performing loans were low at **$3.4 million (0.13% of gross loans)** as of March 31, 2023[84](index=84&type=chunk) - The Allowance for Credit Losses (ACL) to non-performing loans ratio was **807.44%** at March 31, 2023[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses solid Q1 2023 performance, increased liquidity in response to market events, and strong asset quality [Financial Performance Summary](index=45&type=section&id=Financial%20Performance%20Summary) Q1 2023 net income was $8.8 million ($1.05 diluted EPS), with strong top-line revenue growth and excellent asset quality Q1 2023 Key Performance Metrics | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income (Common) | $8.8 million | $8.7 million | | Diluted EPS | $1.05 | $1.02 | | Annualized ROA | 1.17% | 1.30% | | ROACE | 13.96% | 14.70% | | Net Interest Margin | 3.86% | 3.39% | | Top Line Revenue | $35.1 million | $28.8 million | - Non-performing assets were **$3.5 million, or 0.11% of total assets**, as of March 31, 2023[167](index=167&type=chunk) [Response to Banking Liquidity Events](index=46&type=section&id=Response%20to%20Banking%20Liquidity%20Events) Management increased readily available liquidity to $656.6 million and noted a decrease in uninsured deposits to 38.0% - Uninsured deposits as a percentage of total deposits decreased from 43.9% to **38.0%** at March 31, 2023[171](index=171&type=chunk) - Readily available liquidity increased to **$656.6 million** at March 31, 2023, up from $449.6 million[172](index=172&type=chunk)[173](index=173&type=chunk) - The Tangible Common Equity (TCE) ratio was **7.69%** as of March 31, 2023, within management's target range[175](index=175&type=chunk)[177](index=177&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Top-line revenue grew 21.9% YoY, driven by a 24.6% increase in net interest income from an expanded net interest margin - Net interest income increased by **$5.3 million (24.6%)** YoY, driven by an increase in net interest margin and growth in average loans[197](index=197&type=chunk) - Net interest margin increased to **3.86%** in Q1 2023 from 3.39% in Q1 2022, reflecting an interest-earning asset beta of 53.3%[201](index=201&type=chunk)[199](index=199&type=chunk) - A provision for credit losses of **$1.6 million** was recorded in Q1 2023, compared to a benefit of $855,000 in Q1 2022[204](index=204&type=chunk) - Non-interest expense increased by **$2.9 million (15.6%)** YoY, primarily due to a $2.3 million increase in compensation expense[217](index=217&type=chunk)[219](index=219&type=chunk) [Financial Condition](index=56&type=section&id=Financial%20Condition) Total assets grew by $187.8 million, fueled by loan growth and funded by a $308.6 million increase in deposits - Total assets increased by **$187.8 million (6.3%)** during Q1 2023, driven by growth in loans and cash[226](index=226&type=chunk) - Period-end loans and leases receivable increased by **$94.4 million (15.6% annualized)** in Q1 2023[230](index=230&type=chunk) - Total deposits increased by **$308.6 million** in Q1 2023, with wholesale deposits increasing by $219.9 million[237](index=237&type=chunk) - FHLB advances and other borrowings decreased by **$114.9 million (25.2%)** as the company strategically reduced their usage[241](index=241&type=chunk) [Asset Quality](index=60&type=section&id=Asset%20Quality) Asset quality remained strong with non-performing assets at 0.11% of total assets and an allowance for credit losses of 1.08% of gross loans Asset Quality Metrics | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total non-performing assets (in thousands) | $3,501 | $3,754 | | Non-performing assets to total assets | 0.11% | 0.13% | | Allowance for credit losses to gross loans | 1.08% | 0.99% | | Allowance for credit losses to non-performing loans | 807.44% | 662.20% | - The increase in the allowance for credit losses was principally due to the **adoption of ASC 326 (CECL)**[258](index=258&type=chunk) - Net charge-offs for Q1 2023 were minimal at **$59,000**[259](index=259&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with the balance sheet modeled to be slightly asset-sensitive Impact on Net Interest Income from Instantaneous Rate Changes (as of March 31, 2023) | Rate Change (Basis Points) | Impact on NII | | :--- | :--- | | +300 | +5.27% | | +200 | +3.55% | | +100 | +1.85% | | -100 | +5.37% | | -200 | +5.07% | | -300 | +1.11% | - The interest rate risk model was updated in Q1 2023 with **new assumptions regarding deposit pricing behavior**[280](index=280&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were **effective** as of March 31, 2023[283](index=283&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2023[284](index=284&type=chunk) PART II. Other Information [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to have a material adverse effect on its financial condition - Management believes that any liability from current or threatened legal proceedings **will not have a material adverse effect**[286](index=286&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) The company identified new risks from banking sector volatility, including potential regulatory changes, liquidity risk, and higher FDIC fees - New risk: Recent bank failures could lead to new legislation and regulations, potentially **increasing costs and limiting growth**[287](index=287&type=chunk) - New risk: The proportion of deposits exceeding FDIC insurance limits could expose the bank to **enhanced liquidity risk**[288](index=288&type=chunk) - New risk: The company may be subject to **increased FDIC insurance assessments** to recover losses from recent bank failures[289](index=289&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 56,394 shares during Q1 2023 under a $5.0 million share repurchase program - A **$5.0 million share repurchase program** was authorized, effective from January 31, 2023, to January 31, 2024[290](index=290&type=chunk) - During Q1 2023, the company repurchased a total of **56,394 shares** at an average price of $32.98 per share[294](index=294&type=chunk) - As of March 31, 2023, approximately **$3.7 million remained available** for repurchases under the program[290](index=290&type=chunk)[295](index=295&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, certifications, and XBRL-formatted financial data

Financial Performance - Net income available to common shareholders for the year ended December 31, 2022, was $40.2 million, increasing 12.4% compared to $35.8 million for the year ended December 31, 2021[229]. - Diluted earnings per common share were $4.75 for the year ended December 31, 2022, increasing 13.9% compared to $4.17 in the prior year[229]. - Top line revenue grew 13.4% to $127.9 million for the year ended December 31, 2022, compared to $112.8 million for the year ended December 31, 2021[229]. - PTPP adjusted earnings for 2022 were $47.9 million, up from $41.2 million in 2021, reflecting a 16.3% increase[238]. - Total operating revenue for 2022 reached $127.041 million, a 12.7% increase compared to $112.733 million in 2021[240]. - Net income for 2022 was $40,858,000, compared to $35,755,000 in 2021, marking an increase of 14.8%[389]. Asset and Liability Management - Total assets increased by $323.7 million, or 12.2%, to $2.977 billion as of December 31, 2022, from $2.653 billion at December 31, 2021[229]. - Total liabilities increased to $2,503,689 thousand in 2022 from $2,384,497 thousand in 2021, an increase of 5.00%[246]. - Stockholders' equity grew to $249,227 thousand in 2022, up from $220,511 thousand in 2021, reflecting an increase of 13.00%[246]. - The total stockholders' equity increased to $260,640,000 in 2022 from $232,422,000 in 2021, representing an increase of 12.1%[387]. Loan and Lease Performance - Period-end gross loans and leases receivable increased $203.7 million, or 9.1%, to $2.443 billion as of December 31, 2022[229]. - Total loans and leases receivable reached $2,304,990 thousand in 2022, a rise from $2,179,154 thousand in 2021, marking a 5.73% increase[246]. - The commercial and industrial (C&I) loan portfolio increased by $110.4 million, or 15.1%, to $841.2 million at December 31, 2022[302]. - As of December 31, 2022, loans and leases receivable increased by $203.8 million, or 9.2%, to $2.419 billion from $2.215 billion at December 31, 2021[299]. Interest Income and Margin - Net interest income increased by 16.3% to $98.422 million in 2022 from $84.662 million in 2021[240]. - The net interest margin improved to 3.82% in 2022, up from 3.44% in 2021[246]. - Net interest income for the year ended December 31, 2022, was $98,422,000, up from $84,662,000 in 2021, reflecting a growth of 16.5%[389]. - The yield on average earning assets rose to 4.71%, an increase of 81 basis points from 3.90% in 2021[257]. Non-Interest Income and Expenses - Non-interest income rose by $1.3 million, or 4.7%, to $29.4 million for the year ended December 31, 2022, contributing to 23.0% of total revenues[265]. - Total non-interest expense rose to $79.474 million in 2022, an increase of 11.1% from $71.535 million in 2021[240]. - Compensation expense increased by $6.0 million, or 11.7%, to $57.7 million for the year ended December 31, 2022, primarily due to increases in salaries and performance-based compensation[279]. Deposit Growth - Total deposits increased by $210.3 million to $2.168 billion in 2022, primarily driven by a $172.6 million increase in wholesale deposits and a $99.7 million increase in certificates of deposit[334][336]. - Average in-market deposits for the year ended December 31, 2022, were approximately $1.929 billion, or 80.6% of total bank funding, compared to $1.784 billion, or 78.2%, in 2021[338]. - Period-end in-market deposits increased by $37.7 million, or 2.0%, to $1.966 billion as of December 31, 2022, driven by business development efforts[363]. Provision for Loan Losses - The provision for loan and lease losses decreased to $3,868,000 in 2022 from $5,803,000 in 2021, indicating improved asset quality[389]. - The allowance for loan and lease losses decreased by $106,000, or 0.4%, to $24.2 million as of December 31, 2022, with the allowance as a percentage of gross loans and leases at 0.99%[322]. Cash Flow and Liquidity - The Corporation had a net cash inflow of $38.6 million from operating activities, with net cash used in investing activities totaling $245.3 million[368]. - The Bank's readily accessible liquidity was $449.6 million as of December 31, 2022, down from $529.5 million in 2021[361]. - The company reported a net cash provided by operating activities of $38,645,000 for 2022, up from $35,992,000 in 2021[398]. Market and Securities - The fair value of the company's available-for-sale securities was $212.0 million, down from $205.7 million in 2021, while the amortized cost was $239.8 million[290]. - The company recognized unrealized holding losses of $27.7 million before income taxes due to an increase in interest rates[288]. - The unrealized losses on securities available-for-sale were $27,730,000 in 2022, compared to $4,312,000 in 2021, highlighting market volatility[391].