First Business(US:FBIZ)2025-04-25 20:15Financial Performance - Net income available to common shareholders for Q1 2025 was $11.0 million, or diluted earnings per share of $1.32, compared to $8.6 million, or $1.04 per share in Q1 2024, representing a 28% increase in net income [129]. - Top line revenue for Q1 2025 reached $40.8 million, a 12.6% increase from $36.3 million in Q1 2024, attributed to a 12.7% rise in net interest income and a 12.2% rise in non-interest income [131]. - Pre-tax, pre-provision adjusted earnings for Q1 2025 were $16.2 million, a 23.4% increase from $13.1 million in Q1 2024 [137]. - Efficiency ratio improved to 60.3% in Q1 2025 from 63.8% in Q1 2024, indicating better operational efficiency [136]. Asset and Loan Growth - Total assets increased by $91.7 million, or 9.5% annualized, to $3.945 billion as of March 31, 2025, compared to $3.853 billion at the end of 2024 [135]. - Period-end gross loans and leases receivable rose to $3.185 billion, a 9.2% annualized increase from $3.114 billion at the end of 2024 [135]. - Average gross loans and leases rose by $298.3 million, or 10.3%, for the three months ended March 31, 2025, compared to the same period in 2024 [149]. - Period-end loans and leases receivable increased by $71.8 million, or 9.3% annualized, to $3.149 billion as of March 31, 2025, from $3.077 billion at December 31, 2024 [180]. Income and Interest Metrics - Net interest income increased by $3.7 million, or 12.7%, for the three months ended March 31, 2025, compared to the same period in 2024 [149]. - Net interest margin improved to 3.69% for the three months ended March 31, 2025, compared to 3.58% for the same period in 2024 [148]. - The yield on average loans and leases decreased to 6.94% for the three months ended March 31, 2025, down from 7.14% for the same period in 2024 [150]. - The yield on average interest-earning assets was 6.61% for the three months ended March 31, 2025, compared to 6.77% for the same period in 2024 [150]. Credit Quality - Provision for credit losses was $2.7 million in Q1 2025, up from $2.3 million in Q1 2024 [135]. - Non-performing assets decreased to $24.1 million, or 0.61% of total assets, down from $28.4 million, or 0.74%, at the end of 2024 [135]. - The allowance for credit losses decreased by $753,000, or 2.0%, to $36.5 million as of March 31, 2025, with the allowance as a percentage of gross loans and leases at 1.15% [208]. - Net charge-offs for the three months ended March 31, 2025, were $3.4 million, consisting of $3.8 million in charge-offs and $398,000 in recoveries [210]. Deposits and Funding - Total deposits increased by $135.9 million, or 4.3%, to $3.243 billion as of March 31, 2025, from $3.107 billion at December 31, 2024 [189]. - Core deposits increased by $66.3 million, or 11.1% annualized, to $2.463 billion as of March 31, 2025 [189]. - Outstanding wholesale funds increased to $1.012 billion as of March 31, 2025, representing 29.1% of total bank funding [221]. - FHLB advances and other borrowings decreased by $33.5 million, or 41.8%, to $286.6 million as of March 31, 2025 [191]. Liquidity - As of March 31, 2025, the Corporation's total liquidity was $1.955 billion, an increase from $1.909 billion as of December 31, 2024 [219]. - Readily accessible liquidity increased to $961.7 million as of March 31, 2025, compared to $882.8 million as of December 31, 2024 [220]. - The Bank's accessible liquidity was in excess of the stated policy minimum as of March 31, 2025, ensuring funding for at least one year of maturities [224]. - The Corporation plans to utilize excess liquidity to fund loan and lease portfolio growth and maintain adequate liquidity margins [220]. Other Financial Metrics - Total stockholders' equity increased by $7.5 million, or 9.1%, to $336.1 million at March 31, 2025, compared to $328.6 million at December 31, 2024 [176]. - The effective tax rate for the three months ended March 31, 2025, was 17.00%, compared to 16.5% for the same period in 2024 [172]. - The Corporation paid $219,000 in cash dividends on the Series A Preferred Stock during the three months ended March 31, 2025 [194]. - The Corporation recognized a pre-tax unrealized loss of $5.7 million in other comprehensive income for the three months ended March 31, 2025, related to cash flow hedges [197].