First Business(FBIZ) - 2024 Q3 - Quarterly Results

Financial Performance - The company reported a net income of $10.3 million for Q3 2024, with earnings per share of $1.24, compared to $10.2 million and $1.23 per share in Q2 2024, and $9.7 million and $1.17 per share in Q3 2023[2]. - Net interest income after provision for credit losses reached $28,920 thousand for the quarter ended September 30, 2024, compared to $26,779 thousand for the same period last year, reflecting an increase of 4.3%[35]. - Net income for the quarter was $10,526 thousand, a rise from $9,941 thousand in the same quarter of the previous year, indicating a year-over-year growth of 5.9%[35]. - The company reported a diluted earnings per share of $1.24 for the quarter, compared to $1.17 for the same quarter last year, reflecting a 6.0% increase[35]. Asset and Deposit Growth - Total assets increased to $3,715,724 thousand as of September 30, 2024, up from $3,418,850 thousand a year earlier, representing a growth of 8.7%[34]. - Total deposits grew to $2,969,947 thousand as of September 30, 2024, compared to $2,657,007 thousand a year ago, marking an increase of 11.7%[34]. - Core deposits increased to $2,382,730 thousand, up from $2,189,264 thousand a year earlier, which is a growth of 8.8%[34]. - Total period-end core deposits increased by $73.1 million, or 12.7% annualized, to $2.383 billion, with new non-maturity deposit balances of $96.1 million added at a weighted average rate of 3.91%[15]. Loan Performance - Loans increased by $65.0 million, or 8.7% annualized, from Q2 2024, and by $286.1 million, or 10.3%, from Q3 2023[3]. - Total gross loans and leases receivable reached $3,050,281,000 as of September 30, 2024, compared to $2,985,233,000 in June 2024, marking an increase of 2.2%[44]. - The average balance of total loans and leases receivable was $3,031,880 thousand, yielding interest income of $55,506 thousand[36]. Interest Income and Margin - Net interest income increased by 1.5% to $31.0 million from the previous quarter, driven by a $69.0 million increase in average loans and leases receivable[5][6]. - The net interest margin was stable at 3.64%, compared to 3.65% in the previous quarter, with an adjusted net interest margin of 3.51%[6][9]. - Interest income for the three months ended September 30, 2024, was $59,327,000, an increase from $57,910,000 for the previous quarter[56]. Non-Interest Income and Expenses - Non-interest income decreased by 4.9% to $7.1 million, with a notable decline in Private Wealth fee income by 5.7% to $3.3 million[7][8]. - Non-interest expense decreased by $772,000, or 3.2%, to $23.1 million, while operating expense decreased by $1.2 million, or 4.9%, to $22.7 million[12]. - Total non-interest income for the nine months ended September 30, 2024, was $21,246 thousand, down from $24,214 thousand for the same period last year, a decrease of 12.2%[35]. Credit Quality - The provision for credit losses was $2.1 million, an increase from $1.7 million in the previous quarter, driven by higher specific reserve requirements[7]. - Non-performing assets increased slightly to $19.4 million, representing 0.52% of total assets, consistent with the previous year[3][4]. - The allowance for credit losses increased by $559,000, or 1.6%, to $35.5 million, with the allowance as a percent of total gross loans and leases at 1.16%[18]. Capital and Efficiency - Stockholders' equity increased to $310,148 thousand as of September 30, 2024, from $278,089 thousand a year earlier[36]. - Efficiency ratio improved to 59.50% for September 30, 2024, down from 62.75% for June 30, 2024, indicating better operational efficiency[39]. - Tier I capital to risk-weighted assets improved to 9.11% as of September 30, 2024, compared to 8.99% in June 2024[43]. Future Outlook - The company plans to continue focusing on expanding its client service and administrative infrastructure to manage growth effectively[33]. - The Company completed a private placement of $20.0 million in subordinated debentures to fund anticipated future loan growth[29].