Business
First Business Bank Reports Second Quarter 2024 Net Income of $10.2 Million
Robust pre-tax, pre-provision earnings supported by double-digit loan growth, net interest margin expansion, and record private wealth fee income MADISON,
About this update from First Business Financial Services, Inc.
[{"type":"text","content":"\nRobust pre-tax, pre-provision earnings supported by double-digit loan growth, net interest margin expansion, and record private wealth fee income\n\n\n MADISON, Wis.--(BUSINESS WIRE)--\nFirst Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq:FBIZ) reported quarterly net income available to common shareholders of $10.2 million, or earnings per share of $1.23 on a diluted basis. This compares to net income available to common shareholders of $8.6 million, or $1.04 per share, in the first quarter of 2024 and $8.1 million, or $0.98 per share, in the second quarter of 2023.\n\n\n“First Business Banks’s consistent growth strategy drove outstanding second quarter results, highlighted by continued double-digit loan growth, record top line revenue, improved net interest margin, and stable credit trends,” said Corey Chambas, Chief Executive Officer. \"We grew both net interest income and margin by executing high-quality loan production and utilizing our long-held and effective funding strategy. We continued to differentiate our business model with strong fee income sources, most notably from fees generated by our Private Wealth Management group’s $3.2 billion in assets under management and administration. The Company's consistently strong performance has generated exceptional shareholder value with 13.5% growth in tangible book value from the prior year.”\n\n\n“We are pleased that our balance sheet, interest rate positioning, and higher level of fees in lieu of interest during the quarter produced a net interest margin at the top of our long-term target range of 3.60%-3.65%,” Chambas continued. “We believe our neutrally positioned balance sheet is poised for stable and strong relative performance in varied interest rate scenarios.”\n\n\nQuarterly Highlights\n\n\n\nConsistent Loan Growth. Loans increased $74.6 million, or 10.3% annualized, from the first quarter of 2024, and $310.8 million, or 11.6%, from the second quarter of 2023, reflecting the addition and retention of valuable client relationships across the Company’s products and geographies.\n\n\n\nExpanded Net Interest Margin. Net interest margin measured 3.65%, elevated by strong fees in lieu of interest, expanding seven basis points from the linked quarter and improving for the first time in five quarters following recent industry-w...