First Business(US:FBIZ)2025-01-30 21:00Financial Performance - Fourth quarter 2024 net income available to common shareholders reached $14.2 million, or EPS of $1.71, compared to $10.3 million, or $1.24 per share in the third quarter of 2024[1] - Operating revenue for the fourth quarter increased to $41.2 million, representing an 8.1% increase from the third quarter and a 12.3% increase year-over-year[4] - Pre-tax, pre-provision income grew to $17.7 million, up 14.8% from the linked quarter and 16.1% from the prior year quarter[4] - Net income for Q4 2024 reached $14,415 thousand, up 47.3% from $9,770 thousand in Q4 2023[38] - Basic earnings per share for Q4 2024 were $1.71, up from $1.15 in Q4 2023, reflecting a growth of 48.7%[38] Loan and Deposit Growth - Loan growth was strong, with total loans increasing by $63.6 million, or 8.3% annualized, from the third quarter of 2024, and $263.8 million, or 9.3%, from the fourth quarter of 2023[4] - Average loans and leases receivable grew by $71.8 million, or 9.5% annualized, to $3.104 billion[11] - Total period-end loans and leases receivable increased by $263.8 million, or 9.3%, to $3.114 billion[25] - Total period-end core deposits increased by $57.4 million, or 2.5%, to $2.396 billion, with the average rate paid decreasing by 22 basis points to 2.98%[26] - Total deposits rose to $3,107,140 thousand as of December 31, 2024, an increase of 11.1% from $2,796,779 thousand a year earlier[36] Interest Income and Margin - Net interest margin improved to 3.77%, up from 3.64% in the linked quarter, while net interest income grew by 6.9% from the previous quarter[4] - Net interest income for Q4 2024 was $33,148 thousand, a 12.5% increase compared to $29,540 thousand in Q4 2023[38] - Net interest income increased by $3.6 million, or 12.2%, to $33.1 million, reflecting an increase in average gross loans and leases[20] - The net interest margin for the year ended December 31, 2024, was 3.66%, down from 3.78% in 2023[42] Asset Management - Private Wealth assets under management reached a record $3.419 billion, with Private Wealth fee income increasing by 16.8% from the prior year quarter[4] - Trust assets under management increased to $3,160,449 as of December 31, 2024, up from $3,145,789 in September 2024, reflecting a growth of 0.5%[52] - Total trust assets reached $3,418,704 as of December 31, 2024, up from $3,397,941 in September 2024, reflecting an increase of 0.6%[52] Credit Quality - Non-performing assets increased to $28.4 million, or 0.74% of total assets, compared to 0.59% in the prior quarter, primarily due to a conventional C&I loan identified as non-performing[28] - The allowance for credit losses increased by $4.3 million to $37.3 million, representing 1.20% of total gross loans and leases, up from 1.16% in the prior year[30] - The provision for credit losses was $2,701 thousand in Q4 2024, compared to $2,573 thousand in Q4 2023, indicating a 5% increase[38] - Non-accrual loans and leases rose to $28,367 thousand as of December 31, 2024, compared to $19,364 thousand in the prior quarter, indicating a significant increase of 46.5%[46] Operational Efficiency - The efficiency ratio improved to 56.94% for the three months ended December 31, 2024, down from 59.44% in the previous quarter, showing enhanced operational efficiency[45] - Total non-interest expense for the three months ended December 31, 2024, was $23,152, up from $23,107 in September 2024, indicating a rise of 0.2%[60] Future Outlook - The company expects to achieve 10% balance sheet and top line revenue growth in 2025[2]