First Business(US:FBIZ)2025-04-24 20:00Financial Performance - First Business Bank reported a net income of $11.0 million, or earnings per share (EPS) of $1.32, compared to $14.2 million (EPS of $1.71) in Q4 2024 and $8.6 million (EPS of $1.04) in Q1 2024[1]. - Operating revenue was $40.8 million, a 12.6% increase from the prior year quarter, driven by strong loan growth and a 12.2% increase in fee income[4]. - Net income available to common shareholders for Q1 2025 was $10,952 thousand, a 27.0% increase from $8,629 thousand in Q1 2024[36]. - Basic earnings per share for Q1 2025 were $1.32, up from $1.04 in Q1 2024, reflecting a 26.9% increase[36]. - The company declared dividends of $0.29 per share in Q1 2025, an increase from $0.25 per share in the same quarter of the previous year[36]. Deposits and Loans - Total deposits grew by $135.9 million, or 17.5% annualized, from the previous quarter and $487.6 million, or 17.7%, from Q1 2024, with core deposits reaching a record $2.463 billion, up $66.3 million, or 11.1% annualized, from the previous quarter[4]. - Loans increased by $71.4 million, or 9.2% annualized, from Q4 2024, and $274.7 million, or 9.4%, from Q1 2024, reflecting strong growth across the company[4]. - Total period-end loans and leases receivable increased by $274.7 million, or 9.4%, to $3.185 billion[26]. - Total deposits rose to $3,243,043 thousand as of March 31, 2025, up 17.7% from $2,755,406 thousand a year prior[35]. - Total deposits rose to $3,243,043 thousand as of March 31, 2025, up from $3,107,140 thousand at December 31, 2024, reflecting an increase of 4.4%[48]. Interest Income and Margin - The net interest margin was 3.69%, down from 3.77% in the previous quarter and up from 3.58% in the prior year quarter, with net interest income increasing by 0.3% from the previous quarter and 12.7% from the prior year[4]. - Net interest income for the first quarter of 2025 was $33,258 thousand, compared to $29,511 thousand in the same quarter of 2024, reflecting a year-over-year increase of 12.0%[36]. - Net interest income increased by $3.7 million, or 12.7%, to $33.3 million, driven by an increase in average gross loans and leases[22][24]. - The net interest margin for Q1 2025 was 3.69%, compared to 3.58% in Q1 2024, showing an improvement in profitability[37]. - The net interest margin decreased to 3.69% for the three months ended March 31, 2025, compared to 3.77% for the previous quarter, a decline of 0.08%[43]. Asset Quality - Non-performing assets decreased by $4.3 million to $24.1 million, or 0.61% of total assets, down from 0.74% in the prior quarter[20]. - The allowance for credit losses decreased by $753,000, or 2.0%, to $36.5 million, representing 1.15% of total gross loans and leases[21][30]. - The allowance for credit losses as a percentage of total loans was 1.15% as of March 31, 2025, compared to 1.20% at December 31, 2024[42]. - Non-accrual loans and leases decreased to $24,056 thousand as of March 31, 2025, from $28,367 thousand at December 31, 2024, a reduction of 15.5%[44]. - The allowance for credit losses decreased slightly to $(35,236) thousand from $(32,799) thousand a year earlier, indicating improved asset quality[35]. Expenses and Efficiency - Non-interest expense increased by $1.4 million, or 5.9%, to $24.7 million, primarily due to higher operating expenses[25]. - Compensation expense increased by $590,000, or 3.7%, to $16.7 million, attributed to an increase in average FTEs[29]. - The efficiency ratio increased to 60.28% for the three months ended March 31, 2025, compared to 56.94% in the previous quarter, indicating a decline in operational efficiency[43]. - Total operating revenue for the three months ended March 31, 2025, is $40,837, a decrease from $41,153 in the previous quarter[57]. Wealth Management - Private Wealth assets under management grew to a record $3.425 billion, generating fee income of $3.5 million, which increased by 12.2% from the prior year quarter[4]. - Non-interest income rose by $822,000, or 12.2%, to $7.6 million, with Private Wealth fee income increasing by $381,000, or 12.2%[23][24]. - Total non-interest income for Q1 2025 was $7,579 thousand, an increase from $6,757 thousand in Q1 2024, marking a growth of 12.2%[36]. Capital and Liquidity - The Tier I capital to risk-weighted assets ratio improved to 9.60% as of March 31, 2025, compared to 9.45% at December 31, 2024[46]. - Total liquidity as of March 31, 2025, is $1,955,615, an increase from $1,909,248 as of December 31, 2024[49]. - Tangible common equity increased to $312,013 as of March 31, 2025, compared to $304,685 as of December 31, 2024[53]. - Book value per share rose to $39.04 as of March 31, 2025, from $38.17 as of December 31, 2024[53].