First Business(US:FBIZ)2025-02-26 21:05Financial Performance - Net income available to common shareholders for the year ended December 31, 2024, was $43.4 million, a 20.0% increase from $36.2 million in 2023[253] - Diluted earnings per common share increased to $5.20 for the year ended December 31, 2024, up 20.0% from $4.33 in the prior year[253] - PTPP adjusted earnings for the year ended December 31, 2024, increased to $60.4 million, up from $56.2 million in 2023, representing a growth of 4.3%[263] - The Corporation's net income for the year ended December 31, 2024, was $44.2 million, contributing to a $39.0 million increase in stockholders' equity[350] - Comprehensive income for 2024 was $46,537,000, up from $38,620,000 in 2023, reflecting a growth of 20%[392] Revenue and Income - Top line revenue grew by $9.6 million, or 6.6%, totaling $153.5 million for the year ended December 31, 2024, compared to $143.9 million in 2023[257] - Total operating revenue for 2024 reached $153.47 million, marking a $9.52 million increase or 6.6% from $143.94 million in 2023[265] - Total non-interest income decreased to $29.25 million in 2024, down by $2.06 million or 6.6% from $31.31 million in 2023[265] - The total non-interest income for 2024 was $29,251 thousand, a decrease from $31,308 thousand in 2023[390] Assets and Liabilities - Total assets increased by $345.4 million, or 9.8%, to $3.853 billion as of December 31, 2024, compared to $3.508 billion at the end of 2023[253] - Average total assets grew to $3.63 billion in 2024, an increase of $414.12 million or 12.9% from $3.21 billion in 2023[265] - Total liabilities increased by $306.4 million, or 9.5%, to $3.525 billion as of December 31, 2024, primarily due to an increase in deposits[303] - Total deposits rose by $310.4 million to $3.107 billion as of December 31, 2024, compared to $2.797 billion in 2023, marking an increase of 11.1%[341] Loans and Credit Quality - Average gross loans and leases increased by $349.0 million, or 13.2%, to $2.997 billion for the year ended December 31, 2024[260] - Period-end loans and leases receivable increased by $258.4 million, or 9.2%, to $3.077 billion at December 31, 2024, from $2.819 billion at December 31, 2023[317] - The total gross loans and leases receivable amounted to $3.113 billion as of December 31, 2024, compared to $2.850 billion in 2023[323] - The allowance for credit losses to gross loans and leases was 1.20% as of December 31, 2024, compared to 1.16% in 2023[331] - Non-accrual loans and leases increased by $7.8 million to $28.4 million at December 31, 2024, with a non-accrual ratio of 0.91%, up from 0.72% in 2023[331] Interest Income and Margin - Net interest income increased by $11.6 million, or 10.3%, to $124.2 million for the year ended December 31, 2024[258] - Net interest income rose to $124.21 million in 2024, reflecting an increase of $11.62 million or 10.3% from $112.59 million in 2023[265] - The net interest margin for 2024 was 3.66%, down from 3.78% in 2023, indicating a slight compression in profitability on interest-earning assets[268] - The yield on average interest-earning assets rose to 6.87% for the year ended December 31, 2024, up from 6.54% in 2023, primarily due to reinvestment in a higher rate environment[278] Expenses - Total non-interest expense for 2024 was $93.48 million, a rise of $4.91 million or 5.5% compared to $88.58 million in 2023[265] - Non-interest expense increased by $4.9 million, or 5.5%, to $93.480 million for the year ended December 31, 2024, with operating expenses rising by $5.2 million, or 6.0%[293] - Compensation expense increased by $2.0 million, or 3.4%, to $63.105 million for the year ended December 31, 2024, reflecting a $2.7 million increase in employee salaries[295] Shareholder Value - The return on average common equity (ROACE) was 14.73% for the year ended December 31, 2024, compared to 13.79% for 2023[259] - The return on average assets for 2024 was 1.20%, an increase from 1.13% in 2023, reflecting improved asset utilization[268] - Stockholders' equity increased to $328.6 million, representing 8.53% of total assets, up from $289.6 million or 8.26% as of December 31, 2023[350] Regulatory Compliance and Capital - The Bank's capital ratios met all applicable regulatory requirements as of December 31, 2024, including those imposed by Basel III[356] - The Corporation maintains a shelf registration allowing it to offer up to $75.0 million in various securities[363] Market and Economic Conditions - The company recognized unrealized holding losses of $2.2 million before income taxes due to an increase in interest rates for the year ended December 31, 2024[307] - The company reported unrealized gains on interest rate swaps of $5,046,000 in 2024, a significant recovery from unrealized losses of $(3,514,000) in 2023[392]