(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
99.1 |
January 28, 2021 | FIRST BUSINESS FINANCIAL SERVICES, INC. | |||||||||||||||||||
By: | /s/ Edward G. Sloane, Jr. | |||||||||||||||||||
Name: | Edward G. Sloane, Jr. | |||||||||||||||||||
Title: | Chief Financial Officer |
(Unaudited) | As of and for the Three Months Ended | As of and for the Year Ended | ||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Net interest income | $ | 22,512 | $ | 18,621 | $ | 18,474 | $ | 77,071 | $ | 69,856 | ||||||||||||||||||||||
Adjusted non-interest income (1) | 6,799 | 7,408 | 7,231 | 26,944 | 23,469 | |||||||||||||||||||||||||||
Operating revenue (1) | 29,311 | 26,029 | 25,705 | 104,015 | 93,325 | |||||||||||||||||||||||||||
Operating expense (1) | 17,591 | 16,700 | 16,649 | 65,619 | 62,149 | |||||||||||||||||||||||||||
Pre-tax, pre-provision adjusted earnings (1) | 11,720 | 9,329 | 9,056 | 38,396 | 31,176 | |||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 4,322 | 3,835 | 1,472 | 16,808 | 2,085 | |||||||||||||||||||||||||||
Net loss (gain) on foreclosed properties | 54 | (121) | (17) | 383 | 224 | |||||||||||||||||||||||||||
Amortization of other intangible assets | 8 | 9 | 7 | 35 | 40 | |||||||||||||||||||||||||||
SBA recourse (benefit) provision | (330) | 57 | 21 | (278) | 188 | |||||||||||||||||||||||||||
Tax credit investment impairment | 328 | 113 | 113 | 2,395 | 4,094 | |||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 744 | — | |||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Net loss on sale of securities | — | — | (42) | (4) | (46) | |||||||||||||||||||||||||||
Income before income tax expense | 7,338 | 5,436 | 7,418 | 18,305 | 24,499 | |||||||||||||||||||||||||||
Income tax expense | 1,254 | 1,143 | 1,650 | 1,327 | 1,175 | |||||||||||||||||||||||||||
Net income | $ | 6,084 | $ | 4,293 | $ | 5,768 | $ | 16,978 | $ | 23,324 | ||||||||||||||||||||||
Earnings per share, diluted | $ | 0.71 | $ | 0.50 | $ | 0.67 | $ | 1.97 | $ | 2.68 | ||||||||||||||||||||||
Book value per share | $ | 24.06 | $ | 23.45 | $ | 22.67 | $ | 24.06 | $ | 22.67 | ||||||||||||||||||||||
Tangible book value per share (1) | $ | 22.66 | $ | 22.05 | $ | 21.27 | $ | 22.66 | $ | 21.27 | ||||||||||||||||||||||
Net interest margin | 3.69 | % | 3.14 | % | 3.73 | % | 3.40 | % | 3.61 | % | ||||||||||||||||||||||
Adjusted net interest margin (1) | 3.25 | % | 3.24 | % | 3.41 | % | 3.28 | % | 3.33 | % | ||||||||||||||||||||||
Efficiency ratio (1) | 60.02 | % | 64.16 | % | 64.77 | % | 63.09 | % | 66.59 | % | ||||||||||||||||||||||
Return on average assets | 0.93 | % | 0.68 | % | 1.09 | % | 0.70 | % | 1.14 | % | ||||||||||||||||||||||
Pre-tax, pre-provision adjusted return on average assets (1) | 1.80 | % | 1.47 | % | 1.72 | % | 1.59 | % | 1.52 | % | ||||||||||||||||||||||
Return on average equity | 11.92 | % | 8.58 | % | 11.93 | % | 8.64 | % | 12.55 | % | ||||||||||||||||||||||
Period-end loans and leases receivable | $ | 2,145,970 | $ | 2,170,299 | $ | 1,714,635 | $ | 2,145,970 | $ | 1,714,635 | ||||||||||||||||||||||
Period-end loans and leases receivable, excluding net PPP loans | $ | 1,920,647 | $ | 1,844,818 | $ | 1,714,635 | $ | 1,920,647 | $ | 1,714,635 | ||||||||||||||||||||||
Average loans and leases receivable | $ | 2,185,662 | $ | 2,139,439 | $ | 1,744,308 | $ | 2,011,322 | $ | 1,703,971 | ||||||||||||||||||||||
Period-end in-market deposits | $ | 1,683,008 | $ | 1,667,245 | $ | 1,378,903 | $ | 1,683,008 | $ | 1,378,903 | ||||||||||||||||||||||
Average in-market deposits | $ | 1,690,433 | $ | 1,644,704 | $ | 1,350,107 | $ | 1,568,502 | $ | 1,271,128 | ||||||||||||||||||||||
Allowance for loan and lease losses | $ | 28,521 | $ | 30,817 | $ | 19,520 | $ | 28,521 | $ | 19,520 | ||||||||||||||||||||||
Non-performing assets | $ | 26,651 | $ | 36,663 | $ | 23,532 | $ | 26,651 | $ | 23,532 | ||||||||||||||||||||||
Allowance for loan and lease losses as a percent of total gross loans and leases | 1.33 | % | 1.41 | % | 1.14 | % | 1.33 | % | 1.14 | % | ||||||||||||||||||||||
Allowance for loan and lease losses as a percent of total gross loans and leases, excluding net PPP loans | 1.48 | % | 1.67 | % | 1.14 | % | 1.48 | % | 1.14 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total assets | 1.04 | % | 1.41 | % | 1.12 | % | 1.04 | % | 1.12 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total assets, excluding net PPP loans | 1.14 | % | 1.61 | % | 1.12 | % | 1.14 | % | 1.12 | % |
(Unaudited) | As of | |||||||||||||
(in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
Short-term investments | $ | 27,371 | $ | 50,995 | ||||||||||
PPPLF availability | 225,323 | — | ||||||||||||
Collateral value of unencumbered loans (FHLB borrowing availability) | 250,127 | 212,516 | ||||||||||||
Market value of unencumbered securities (Fed Discount Window and FHLB borrowing availability) | 137,357 | 174,661 | ||||||||||||
Total sources of liquidity | $ | 640,178 | $ | 438,172 |
(Unaudited) | As of | |||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | |||||||||||||||||||
Collateral Type | ||||||||||||||||||||
Industries Description | Balance | Real Estate | Non Real Estate | |||||||||||||||||
Accommodation and Food Services | $ | 12,229 | $ | 12,229 | $ | — | ||||||||||||||
Real Estate and Rental and Leasing | 5,975 | 5,975 | — | |||||||||||||||||
Manufacturing | 3,398 | — | 3,398 | |||||||||||||||||
Arts, Entertainment, and Recreation | 3,095 | 1,051 | 2,044 | |||||||||||||||||
Transportation and Warehousing | 573 | — | 573 | |||||||||||||||||
Construction | 447 | 447 | — | |||||||||||||||||
Professional, Scientific, and Technical Services | 383 | 383 | ||||||||||||||||||
Other Services (except Public Administration) | 367 | 212 | 155 | |||||||||||||||||
Health Care and Social Assistance | 205 | — | 205 | |||||||||||||||||
Educational Services | 195 | 195 | — | |||||||||||||||||
Administrative and Support and Waste Management and Remediation Services | 143 | 143 | ||||||||||||||||||
Total deferred loan balances | $ | 27,010 | $ | 20,109 | $ | 6,901 |
(Unaudited) | As of | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||
Industries: | Balance | % Gross Loans and Leases (1) | Balance | % Gross Loans and Leases (1) | Balance | % Gross Loans and Leases (1) | ||||||||||||||||||||||||||||||||
Retail (2) | $ | 62,719 | 3.3 | % | $ | 66,696 | 3.6 | % | $ | 70,028 | 4.0 | % | ||||||||||||||||||||||||||
Hospitality | 80,832 | 4.2 | % | 78,786 | 4.3 | % | 73,502 | 4.2 | % | |||||||||||||||||||||||||||||
Entertainment | 14,208 | 0.7 | % | 16,323 | 0.9 | % | 16,675 | 1.0 | % | |||||||||||||||||||||||||||||
Restaurants & Food Service | 24,854 | 1.3 | % | 26,728 | 1.4 | % | 24,884 | 1.4 | % | |||||||||||||||||||||||||||||
Total outstanding exposure | $ | 182,613 | 9.5 | % | $ | 188,533 | 10.2 | % | $ | 185,089 | 10.6 | % | ||||||||||||||||||||||||||
CONTACT: | First Business Financial Services, Inc. | |||||||
Edward G. Sloane, Jr. | ||||||||
Chief Financial Officer | ||||||||
608-232-5970 | ||||||||
esloane@firstbusiness.bank |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 56,909 | $ | 51,728 | $ | 42,391 | $ | 94,986 | $ | 67,102 | ||||||||||||||||||||||
Securities available-for-sale, at fair value | 183,925 | 179,274 | 171,680 | 175,564 | 173,133 | |||||||||||||||||||||||||||
Securities held-to-maturity, at amortized cost | 26,374 | 28,897 | 29,826 | 30,774 | 32,700 | |||||||||||||||||||||||||||
Loans held for sale | 8,695 | 15,049 | 13,672 | 6,331 | 5,205 | |||||||||||||||||||||||||||
Loans and leases receivable | 2,145,970 | 2,170,299 | 2,056,863 | 1,743,399 | 1,714,635 | |||||||||||||||||||||||||||
Allowance for loan and lease losses | (28,521) | (30,817) | (27,464) | (22,748) | (19,520) | |||||||||||||||||||||||||||
Loans and leases receivable, net | 2,117,449 | 2,139,482 | 2,029,399 | 1,720,651 | 1,695,115 | |||||||||||||||||||||||||||
Premises and equipment, net | 1,998 | 2,130 | 2,266 | 2,427 | 2,557 | |||||||||||||||||||||||||||
Foreclosed properties | 34 | 613 | 1,389 | 1,669 | 2,919 | |||||||||||||||||||||||||||
Right-of-use assets | 5,814 | 6,141 | 6,272 | 6,590 | 6,906 | |||||||||||||||||||||||||||
Bank-owned life insurance | 52,188 | 51,798 | 51,433 | 51,056 | 42,761 | |||||||||||||||||||||||||||
Federal Home Loan Bank stock, at cost | 13,578 | 15,153 | 13,470 | 9,733 | 7,953 | |||||||||||||||||||||||||||
Goodwill and other intangible assets | 12,018 | 12,024 | 11,925 | 11,872 | 11,922 | |||||||||||||||||||||||||||
Accrued interest receivable and other assets | 88,855 | 99,558 | 95,091 | 84,721 | 48,506 | |||||||||||||||||||||||||||
Total assets | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 | $ | 2,196,374 | $ | 2,096,779 | ||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
In-market deposits | $ | 1,683,008 | $ | 1,667,245 | $ | 1,620,616 | $ | 1,383,299 | $ | 1,378,903 | ||||||||||||||||||||||
Wholesale deposits | 172,508 | 154,130 | 89,759 | 116,827 | 151,476 | |||||||||||||||||||||||||||
Total deposits | 1,855,516 | 1,821,375 | 1,710,375 | 1,500,126 | 1,530,379 | |||||||||||||||||||||||||||
Federal Home Loan Bank advances and other borrowings | 419,167 | 483,517 | 465,007 | 412,892 | 319,382 | |||||||||||||||||||||||||||
Junior subordinated notes | 10,062 | 10,058 | 10,054 | 10,051 | 10,047 | |||||||||||||||||||||||||||
Lease liabilities | 6,386 | 6,728 | 6,877 | 7,211 | 7,541 | |||||||||||||||||||||||||||
Accrued interest payable and other liabilities | 70,544 | 79,384 | 78,939 | 70,437 | 35,274 | |||||||||||||||||||||||||||
Total liabilities | 2,361,675 | 2,401,062 | 2,271,252 | 2,000,717 | 1,902,623 | |||||||||||||||||||||||||||
Total stockholders’ equity | 206,162 | 200,785 | 197,562 | 195,657 | 194,156 | |||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 | $ | 2,196,374 | $ | 2,096,779 |
(Unaudited) | As of and for the Three Months Ended | As of and for the Year Ended | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Total interest income | $ | 25,770 | $ | 22,276 | $ | 22,761 | $ | 23,372 | $ | 25,613 | $ | 94,179 | $ | 102,040 | ||||||||||||||||||||||||||||||
Total interest expense | 3,258 | 3,655 | 3,873 | 6,322 | 7,139 | 17,108 | 32,184 | |||||||||||||||||||||||||||||||||||||
Net interest income | 22,512 | 18,621 | 18,888 | 17,050 | 18,474 | 77,071 | 69,856 | |||||||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 4,322 | 3,835 | 5,469 | 3,182 | 1,472 | 16,808 | 2,085 | |||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan and lease losses | 18,190 | 14,786 | 13,419 | 13,868 | 17,002 | 60,263 | 67,771 | |||||||||||||||||||||||||||||||||||||
Private wealth management service fees | 2,208 | 2,167 | 2,124 | 2,112 | 2,073 | 8,611 | 8,197 | |||||||||||||||||||||||||||||||||||||
Gain on sale of SBA loans | 1,300 | 760 | 574 | 265 | 465 | 2,899 | 1,459 | |||||||||||||||||||||||||||||||||||||
Service charges on deposits | 887 | 881 | 829 | 818 | 789 | 3,415 | 3,104 | |||||||||||||||||||||||||||||||||||||
Loan fees | 412 | 478 | 451 | 485 | 451 | 1,826 | 1,767 | |||||||||||||||||||||||||||||||||||||
Net loss on sale of securities | — | — | — | (4) | (42) | (4) | (46) | |||||||||||||||||||||||||||||||||||||
Swap fees | 1,078 | 2,446 | 1,655 | 1,681 | 2,267 | 6,860 | 4,165 | |||||||||||||||||||||||||||||||||||||
Other non-interest income | 914 | 676 | 686 | 1,057 | 1,186 | 3,333 | 4,777 | |||||||||||||||||||||||||||||||||||||
Total non-interest income | 6,799 | 7,408 | 6,319 | 6,414 | 7,189 | 26,940 | 23,423 | |||||||||||||||||||||||||||||||||||||
Compensation | 12,145 | 11,857 | 10,796 | 11,052 | 11,030 | 45,850 | 42,021 | |||||||||||||||||||||||||||||||||||||
Occupancy | 556 | 570 | 554 | 572 | 563 | 2,252 | 2,293 | |||||||||||||||||||||||||||||||||||||
Professional fees | 909 | 943 | 859 | 819 | 957 | 3,530 | 3,703 | |||||||||||||||||||||||||||||||||||||
Data processing | 668 | 679 | 710 | 677 | 639 | 2,734 | 2,562 | |||||||||||||||||||||||||||||||||||||
Marketing | 411 | 356 | 352 | 461 | 610 | 1,580 | 2,221 | |||||||||||||||||||||||||||||||||||||
Equipment | 294 | 310 | 304 | 291 | 292 | 1,199 | 1,230 | |||||||||||||||||||||||||||||||||||||
Computer software | 1,028 | 1,017 | 966 | 889 | 929 | 3,900 | 3,414 | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 479 | 312 | 239 | 208 | 46 | 1,238 | 641 | |||||||||||||||||||||||||||||||||||||
Collateral liquidation cost | 47 | 45 | 115 | 121 | 10 | 328 | 119 | |||||||||||||||||||||||||||||||||||||
Net loss (gain) on foreclosed properties | 54 | (121) | 348 | 102 | (17) | 383 | 224 | |||||||||||||||||||||||||||||||||||||
Tax credit investment impairment | 328 | 113 | 1,841 | 113 | 113 | 2,395 | 4,094 | |||||||||||||||||||||||||||||||||||||
SBA recourse (benefit) provision | (330) | 57 | (30) | 25 | 21 | (278) | 188 | |||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 744 | — | — | 744 | — | |||||||||||||||||||||||||||||||||||||
Other non-interest expense | 1,062 | 620 | 545 | 816 | 1,580 | 3,043 | 3,985 | |||||||||||||||||||||||||||||||||||||
Total non-interest expense | 17,651 | 16,758 | 18,343 | 16,146 | 16,773 | 68,898 | 66,695 | |||||||||||||||||||||||||||||||||||||
Income before income tax expense (benefit) | 7,338 | 5,436 | 1,395 | 4,136 | 7,418 | 18,305 | 24,499 | |||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 1,254 | 1,143 | (1,928) | 858 | 1,650 | 1,327 | 1,175 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 6,084 | $ | 4,293 | $ | 3,323 | $ | 3,278 | $ | 5,768 | $ | 16,978 | $ | 23,324 | ||||||||||||||||||||||||||||||
Per common share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic earnings | $ | 0.71 | $ | 0.50 | $ | 0.38 | $ | 0.38 | $ | 0.67 | $ | 1.97 | $ | 2.68 | ||||||||||||||||||||||||||||||
Diluted earnings | 0.71 | 0.50 | 0.38 | 0.38 | 0.67 | 1.97 | 2.68 | |||||||||||||||||||||||||||||||||||||
Dividends declared | 0.165 | 0.165 | 0.165 | 0.165 | 0.15 | 0.66 | 0.60 | |||||||||||||||||||||||||||||||||||||
Book value | 24.06 | 23.45 | 23.04 | 22.83 | 22.67 | 24.06 | 22.67 | |||||||||||||||||||||||||||||||||||||
Tangible book value | 22.66 | 22.05 | 21.65 | 21.44 | 21.27 | 22.66 | 21.27 | |||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding(1) | 8,417,216 | 8,404,084 | 8,392,197 | 8,388,666 | 8,442,675 | 8,384,464 | 8,515,375 | |||||||||||||||||||||||||||||||||||||
Weighted-average diluted common shares outstanding(1) | 8,417,216 | 8,404,084 | 8,392,197 | 8,388,666 | 8,442,675 | 8,384,464 | 8,515,375 |
(Unaudited) | For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate(4) | Average Balance | Interest | Average Yield/Rate(4) | Average Balance | Interest | Average Yield/Rate(4) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate and other mortgage loans(1) | $ | 1,353,333 | $ | 12,875 | 3.81 | % | $ | 1,282,132 | $ | 12,340 | 3.85 | % | $ | 1,161,802 | $ | 14,319 | 4.93 | % | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans(1) | 768,869 | 11,149 | 5.80 | % | 791,909 | 8,133 | 4.11 | % | 523,237 | 9,239 | 7.06 | % | ||||||||||||||||||||||||||||||||||||||||||||
Direct financing leases(1) | 25,071 | 278 | 4.44 | % | 26,129 | 258 | 3.95 | % | 28,439 | 308 | 4.33 | % | ||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans(1) | 38,389 | 355 | 3.70 | % | 39,269 | 374 | 3.81 | % | 30,830 | 330 | 4.28 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases receivable(1) | 2,185,662 | 24,657 | 4.51 | % | 2,139,439 | 21,105 | 3.95 | % | 1,744,308 | 24,196 | 5.55 | % | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities(2) | 170,400 | 742 | 1.74 | % | 167,326 | 833 | 1.99 | % | 172,539 | 1,047 | 2.43 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other investment securities(3) | 39,647 | 183 | 1.85 | % | 34,004 | 171 | 2.01 | % | 23,132 | 126 | 2.18 | % | ||||||||||||||||||||||||||||||||||||||||||||
FHLB stock | 14,608 | 179 | 4.90 | % | 12,835 | 161 | 5.02 | % | 7,958 | 97 | 4.88 | % | ||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 31,418 | 9 | 0.11 | % | 21,287 | 6 | 0.11 | % | 32,985 | 147 | 1.78 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 2,441,735 | 25,770 | 4.22 | % | 2,374,891 | 22,276 | 3.75 | % | 1,980,922 | 25,613 | 5.17 | % | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets | 162,010 | 165,844 | 126,443 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,603,745 | $ | 2,540,735 | $ | 2,107,365 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction accounts | $ | 482,670 | 250 | 0.21 | % | $ | 445,687 | 259 | 0.23 | % | $ | 221,446 | 629 | 1.14 | % | |||||||||||||||||||||||||||||||||||||||||
Money market | 655,581 | 287 | 0.18 | % | 642,881 | 318 | 0.20 | % | 676,255 | 2,345 | 1.39 | % | ||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 78,693 | 308 | 1.57 | % | 110,891 | 513 | 1.85 | % | 146,128 | 888 | 2.43 | % | ||||||||||||||||||||||||||||||||||||||||||||
Wholesale deposits | 171,718 | 414 | 0.96 | % | 160,067 | 533 | 1.33 | % | 172,033 | 1,036 | 2.41 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,388,662 | 1,259 | 0.36 | % | 1,359,526 | 1,623 | 0.48 | % | 1,215,862 | 4,898 | 1.61 | % | ||||||||||||||||||||||||||||||||||||||||||||
FHLB advances | 404,174 | 1,309 | 1.30 | % | 379,915 | 1,356 | 1.43 | % | 304,049 | 1,590 | 2.09 | % | ||||||||||||||||||||||||||||||||||||||||||||
Federal Reserve PPPLF | 10,297 | 9 | 0.35 | % | 29,605 | 26 | 0.35 | % | — | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 24,419 | 400 | 6.55 | % | 24,403 | 370 | 6.06 | % | 24,462 | 371 | 6.07 | % | ||||||||||||||||||||||||||||||||||||||||||||
Junior subordinated notes | 10,059 | 281 | 11.17 | % | 10,056 | 280 | 11.14 | % | 10,045 | 280 | 11.15 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,837,611 | 3,258 | 0.71 | % | 1,803,505 | 3,655 | 0.81 | % | 1,554,418 | 7,139 | 1.84 | % | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand deposit accounts | 473,489 | 445,245 | 306,278 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 88,496 | 91,810 | 53,271 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 2,399,596 | 2,340,560 | 1,913,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 204,149 | 200,175 | 193,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,603,745 | $ | 2,540,735 | $ | 2,107,365 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 22,512 | $ | 18,621 | $ | 18,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.51 | % | 2.94 | % | 3.33 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 604,124 | $ | 571,386 | $ | 426,504 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.69 | % | 3.14 | % | 3.73 | % |
(Unaudited) | For the Year Ended | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||
Commercial real estate and other mortgage loans(1) | $ | 1,245,886 | $ | 51,188 | 4.11 | % | $ | 1,142,201 | $ | 58,330 | 5.11 | % | ||||||||||||||||||||||||||
Commercial and industrial loans(1) | 701,328 | 35,487 | 5.06 | % | 500,058 | 35,251 | 7.05 | % | ||||||||||||||||||||||||||||||
Direct financing leases(1) | 26,564 | 1,039 | 3.91 | % | 30,462 | 1,276 | 4.19 | % | ||||||||||||||||||||||||||||||
Consumer and other loans(1) | 37,544 | 1,446 | 3.85 | % | 31,250 | 1,372 | 4.39 | % | ||||||||||||||||||||||||||||||
Total loans and leases receivable(1) | 2,011,322 | 89,160 | 4.43 | % | 1,703,971 | 96,229 | 5.65 | % | ||||||||||||||||||||||||||||||
Mortgage-related securities(2) | 173,084 | 3,548 | 2.05 | % | 161,969 | 4,069 | 2.51 | % | ||||||||||||||||||||||||||||||
Other investment securities(3) | 31,809 | 639 | 2.01 | % | 26,661 | 568 | 2.13 | % | ||||||||||||||||||||||||||||||
FHLB and FRB stock | 11,576 | 671 | 5.80 | % | 7,398 | 357 | 4.83 | % | ||||||||||||||||||||||||||||||
Short-term investments | 37,314 | 161 | 0.43 | % | 35,344 | 817 | 2.31 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 2,265,105 | 94,179 | 4.16 | % | 1,935,343 | 102,040 | 5.27 | % | ||||||||||||||||||||||||||||||
Non-interest-earning assets | 154,511 | 113,692 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,419,616 | $ | 2,049,035 | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Transaction accounts | $ | 392,577 | 1,448 | 0.37 | % | $ | 222,244 | 3,408 | 1.53 | % | ||||||||||||||||||||||||||||
Money market | 651,402 | 2,842 | 0.44 | % | 617,341 | 10,576 | 1.71 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 111,698 | 2,198 | 1.97 | % | 156,048 | 3,852 | 2.47 | % | ||||||||||||||||||||||||||||||
Wholesale deposits | 142,591 | 2,434 | 1.71 | % | 225,302 | 5,122 | 2.27 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,298,268 | 8,922 | 0.69 | % | 1,220,935 | 22,958 | 1.88 | % | ||||||||||||||||||||||||||||||
FHLB advances | 379,891 | 5,507 | 1.45 | % | 286,464 | 6,219 | 2.17 | % | ||||||||||||||||||||||||||||||
Federal Reserve PPPLF | 15,207 | 54 | 0.36 | % | — | — | — | % | ||||||||||||||||||||||||||||||
Other borrowings | 24,472 | 1,509 | 6.17 | % | 25,236 | 1,895 | 7.51 | % | ||||||||||||||||||||||||||||||
Junior subordinated notes | 10,054 | 1,116 | 11.10 | % | 10,040 | 1,112 | 11.08 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,727,892 | 17,108 | 0.99 | % | 1,542,675 | 32,184 | 2.09 | % | ||||||||||||||||||||||||||||||
Non-interest-bearing demand deposit accounts | 412,825 | 275,495 | ||||||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 82,337 | 45,047 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 2,223,054 | 1,863,217 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 196,562 | 185,818 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,419,616 | $ | 2,049,035 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 77,071 | $ | 69,856 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.17 | % | 3.19 | % | ||||||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 537,213 | $ | 392,668 | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.40 | % | 3.61 | % |
(Unaudited) | For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Change in general reserve due to subjective factor changes | $ | 1,008 | $ | (766) | $ | 2,388 | $ | 2,831 | $ | (117) | $ | 5,460 | $ | (378) | ||||||||||||||||||||||||||||||
Change in general reserve due to historical loss factor changes | 1,274 | (16) | (54) | (255) | 406 | 949 | (391) | |||||||||||||||||||||||||||||||||||||
Charge-offs | 6,685 | 505 | 817 | 131 | 2,194 | 8,139 | 3,356 | |||||||||||||||||||||||||||||||||||||
Recoveries | (68) | (23) | (64) | (177) | (73) | (332) | (366) | |||||||||||||||||||||||||||||||||||||
Change in specific reserves on impaired loans, net | (5,216) | 2,974 | 2,122 | 436 | (954) | 316 | (1,032) | |||||||||||||||||||||||||||||||||||||
Change due to loan growth, net | 639 | 1,161 | 260 | 216 | 16 | 2,276 | 896 | |||||||||||||||||||||||||||||||||||||
Total provision for loan and lease losses | $ | 4,322 | $ | 3,835 | $ | 5,469 | $ | 3,182 | $ | 1,472 | $ | 16,808 | $ | 2,085 |
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Return on average assets (annualized) | 0.93 | % | 0.68 | % | 0.55 | % | 0.62 | % | 1.09 | % | 0.70 | % | 1.14 | % | ||||||||||||||||||||||||||||||
Return on average equity (annualized) | 11.92 | % | 8.58 | % | 6.70 | % | 7.14 | % | 11.93 | % | 8.64 | % | 12.55 | % | ||||||||||||||||||||||||||||||
Efficiency ratio | 60.02 | % | 64.16 | % | 61.22 | % | 67.74 | % | 64.77 | % | 63.09 | % | 66.59 | % | ||||||||||||||||||||||||||||||
Interest rate spread | 3.51 | % | 2.94 | % | 3.12 | % | 3.10 | % | 3.33 | % | 3.17 | % | 3.19 | % | ||||||||||||||||||||||||||||||
Net interest margin | 3.69 | % | 3.14 | % | 3.34 | % | 3.44 | % | 3.73 | % | 3.40 | % | 3.61 | % | ||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 132.88 | % | 131.68 | % | 132.82 | % | 126.41 | % | 127.44 | % | 131.09 | % | 125.45 | % |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Non-accrual loans and leases | $ | 26,617 | $ | 36,050 | $ | 24,095 | $ | 27,897 | $ | 20,613 | ||||||||||||||||||||||
Foreclosed properties | 34 | 613 | 1,389 | 1,669 | 2,919 | |||||||||||||||||||||||||||
Total non-performing assets | 26,651 | 36,663 | 25,484 | 29,566 | 23,532 | |||||||||||||||||||||||||||
Performing troubled debt restructurings | 46 | 47 | 49 | 134 | 140 | |||||||||||||||||||||||||||
Total impaired assets | $ | 26,697 | $ | 36,710 | $ | 25,533 | $ | 29,700 | $ | 23,672 | ||||||||||||||||||||||
Non-accrual loans and leases as a percent of total gross loans and leases | 1.24 | % | 1.66 | % | 1.17 | % | 1.60 | % | 1.20 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total gross loans and leases plus foreclosed properties | 1.24 | % | 1.68 | % | 1.23 | % | 1.69 | % | 1.37 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total assets | 1.04 | % | 1.41 | % | 1.03 | % | 1.35 | % | 1.12 | % | ||||||||||||||||||||||
Allowance for loan and lease losses as a percent of total gross loans and leases | 1.33 | % | 1.41 | % | 1.33 | % | 1.30 | % | 1.14 | % | ||||||||||||||||||||||
Allowance for loan and lease losses as a percent of non-accrual loans and leases | 107.15 | % | 85.48 | % | 113.98 | % | 81.54 | % | 94.70 | % | ||||||||||||||||||||||
(Unaudited) | As of | |||||||||||||||||||||||||||||||
December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Non-accrual loans and leases as a percent of total gross loans and leases | 1.38 | % | 1.95 | % | 1.38 | % | 1.60 | % | 1.20 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total gross loans and leases plus foreclosed properties | 1.38 | % | 1.98 | % | 1.46 | % | 1.69 | % | 1.37 | % | ||||||||||||||||||||||
Non-performing assets as a percent of total assets | 1.14 | % | 1.61 | % | 1.19 | % | 1.35 | % | 1.12 | % | ||||||||||||||||||||||
Allowance for loan and lease losses as a percent of total gross loans and leases | 1.48 | % | 1.67 | % | 1.57 | % | 1.30 | % | 1.14 | % |
(Unaudited) | For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Charge-offs | $ | 6,685 | $ | 505 | $ | 817 | $ | 131 | $ | 2,194 | $ | 8,139 | $ | 3,356 | ||||||||||||||||||||||||||||||
Recoveries | (68) | (23) | (64) | (177) | (73) | (332) | (366) | |||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 6,617 | $ | 482 | $ | 753 | $ | (46) | $ | 2,121 | $ | 7,807 | $ | 2,990 | ||||||||||||||||||||||||||||||
Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized) | 1.21 | % | 0.09 | % | 0.15 | % | (0.01) | % | 0.49 | % | 0.39 | % | 0.18 | % | ||||||||||||||||||||||||||||||
Annualized net charge-offs (recoveries) as a percent of average gross loans and leases, excluding average net PPP loans(1) | 1.39 | % | 0.11 | % | 0.17 | % | (0.01) | % | 0.49 | % | 0.43 | % | 0.18 | % |
As of and for the Three Months Ended | ||||||||||||||||||||||||||||||||
(Unaudited) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Total capital to risk-weighted assets | 11.25 | % | 11.42 | % | 11.97 | % | 11.74 | % | 12.01 | % | ||||||||||||||||||||||
Tier I capital to risk-weighted assets | 8.96 | % | 9.09 | % | 9.57 | % | 9.45 | % | 9.77 | % | ||||||||||||||||||||||
Common equity tier I capital to risk-weighted assets | 8.53 | % | 8.64 | % | 9.08 | % | 8.96 | % | 9.27 | % | ||||||||||||||||||||||
Tier I capital to adjusted assets | 7.99 | % | 8.04 | % | 8.29 | % | 9.33 | % | 9.27 | % | ||||||||||||||||||||||
Tangible common equity to tangible assets | 7.60 | % | 7.29 | % | 7.56 | % | 8.41 | % | 8.74 | % | ||||||||||||||||||||||
Tangible common equity to tangible assets, excluding net PPP loans | 8.33 | % | 8.34 | % | 8.69 | % | 8.41 | % | 8.74 | % |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 253,882 | $ | 240,706 | $ | 229,994 | $ | 224,075 | $ | 226,614 | ||||||||||||||||||||||
Commercial real estate - non-owner occupied | 564,532 | 565,781 | 533,211 | 511,363 | 516,652 | |||||||||||||||||||||||||||
Land development | 49,839 | 50,864 | 44,299 | 48,045 | 51,097 | |||||||||||||||||||||||||||
Construction | 141,043 | 142,726 | 133,375 | 131,060 | 109,057 | |||||||||||||||||||||||||||
Multi-family | 311,556 | 287,583 | 244,496 | 211,594 | 217,322 | |||||||||||||||||||||||||||
1-4 family | 38,284 | 38,857 | 36,823 | 34,220 | 33,359 | |||||||||||||||||||||||||||
Total commercial real estate | 1,359,136 | 1,326,517 | 1,222,198 | 1,160,357 | 1,154,101 | |||||||||||||||||||||||||||
Commercial and industrial | 732,318 | 790,349 | 781,239 | 519,900 | 503,402 | |||||||||||||||||||||||||||
Direct financing leases, net | 22,331 | 24,743 | 25,525 | 26,833 | 28,203 | |||||||||||||||||||||||||||
Consumer and other: | ||||||||||||||||||||||||||||||||
Home equity and second mortgages | 7,833 | 7,106 | 6,706 | 6,513 | 7,006 | |||||||||||||||||||||||||||
Other | 28,897 | 29,341 | 29,737 | 30,416 | 22,664 | |||||||||||||||||||||||||||
Total consumer and other | 36,730 | 36,447 | 36,443 | 36,929 | 29,670 | |||||||||||||||||||||||||||
Total gross loans and leases receivable | 2,150,515 | 2,178,056 | 2,065,405 | 1,744,019 | 1,715,376 | |||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | 28,521 | 30,817 | 27,464 | 22,748 | 19,520 | |||||||||||||||||||||||||||
Deferred loan fees | 4,545 | 7,757 | 8,542 | 620 | 741 | |||||||||||||||||||||||||||
Loans and leases receivable, net | $ | 2,117,449 | $ | 2,139,482 | $ | 2,029,399 | $ | 1,720,651 | $ | 1,695,115 |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Performing loans: | ||||||||||||||||||||||||||||||||
Off-balance sheet loans | $ | 23,354 | $ | 26,017 | $ | 28,843 | $ | 31,212 | $ | 35,029 | ||||||||||||||||||||||
On-balance sheet loans | 11,117 | 15,175 | 16,554 | 17,935 | 19,697 | |||||||||||||||||||||||||||
Gross loans | 34,471 | 41,192 | 45,397 | 49,147 | 54,726 | |||||||||||||||||||||||||||
Non-performing loans: | ||||||||||||||||||||||||||||||||
Off-balance sheet loans | 1,931 | 2,574 | 1,640 | 4,887 | 7,290 | |||||||||||||||||||||||||||
On-balance sheet loans | 7,435 | 9,561 | 9,725 | 13,833 | 12,037 | |||||||||||||||||||||||||||
Gross loans | 9,366 | 12,135 | 11,365 | 18,720 | 19,327 | |||||||||||||||||||||||||||
Total loans: | ||||||||||||||||||||||||||||||||
Off-balance sheet loans | 25,285 | 28,591 | 30,483 | 36,099 | 42,319 | |||||||||||||||||||||||||||
On-balance sheet loans | 18,552 | 24,736 | 26,279 | 31,768 | 31,734 | |||||||||||||||||||||||||||
Gross loans | $ | 43,837 | $ | 53,327 | $ | 56,762 | $ | 67,867 | $ | 74,053 | ||||||||||||||||||||||
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Non-interest-bearing transaction accounts | $ | 472,818 | $ | 452,268 | $ | 433,760 | $ | 301,657 | $ | 293,573 | ||||||||||||||||||||||
Interest-bearing transaction accounts | 503,992 | 484,761 | 413,214 | 343,064 | 273,909 | |||||||||||||||||||||||||||
Money market accounts | 641,504 | 636,872 | 656,741 | 609,883 | 674,409 | |||||||||||||||||||||||||||
Certificates of deposit | 64,694 | 93,344 | 116,901 | 128,695 | 137,012 | |||||||||||||||||||||||||||
Wholesale deposits | 172,508 | 154,130 | 89,759 | 116,827 | 151,476 | |||||||||||||||||||||||||||
Total deposits | $ | 1,855,516 | $ | 1,821,375 | $ | 1,710,375 | $ | 1,500,126 | $ | 1,530,379 |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Trust assets under management | $ | 2,061,772 | $ | 1,841,986 | $ | 1,704,019 | $ | 1,519,632 | $ | 1,726,538 | ||||||||||||||||||||||
Trust assets under administration | 187,228 | 175,521 | 169,388 | 144,822 | 165,660 | |||||||||||||||||||||||||||
Total trust assets | $ | 2,249,000 | $ | 2,017,507 | $ | 1,873,407 | $ | 1,664,454 | $ | 1,892,198 |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Common stockholders’ equity | $ | 206,162 | $ | 200,785 | $ | 197,562 | $ | 195,657 | $ | 194,156 | ||||||||||||||||||||||
Goodwill and other intangible assets | (12,018) | (12,024) | (11,925) | (11,872) | (11,922) | |||||||||||||||||||||||||||
Tangible common equity | $ | 194,144 | $ | 188,761 | $ | 185,637 | $ | 183,785 | $ | 182,234 | ||||||||||||||||||||||
Common shares outstanding | 8,566,960 | 8,561,714 | 8,575,134 | 8,571,134 | 8,566,044 | |||||||||||||||||||||||||||
Book value per share | $ | 24.06 | $ | 23.45 | $ | 23.04 | $ | 22.83 | $ | 22.67 | ||||||||||||||||||||||
Tangible book value per share | 22.66 | 22.05 | 21.65 | 21.44 | 21.27 |
(Unaudited) | As of | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Common stockholders’ equity | $ | 206,162 | $ | 200,785 | $ | 197,562 | $ | 195,657 | $ | 194,156 | ||||||||||||||||||||||
Goodwill and other intangible assets | (12,018) | (12,024) | (11,925) | (11,872) | (11,922) | |||||||||||||||||||||||||||
Tangible common equity | $ | 194,144 | $ | 188,761 | $ | 185,637 | $ | 183,785 | $ | 182,234 | ||||||||||||||||||||||
Total assets | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 | $ | 2,196,374 | $ | 2,096,779 | ||||||||||||||||||||||
Goodwill and other intangible assets | (12,018) | (12,024) | (11,925) | (11,872) | (11,922) | |||||||||||||||||||||||||||
Tangible assets | $ | 2,555,819 | $ | 2,589,823 | $ | 2,456,889 | $ | 2,184,502 | $ | 2,084,857 | ||||||||||||||||||||||
Tangible common equity to tangible assets | 7.60 | % | 7.29 | % | 7.56 | % | 8.41 | % | 8.74 | % | ||||||||||||||||||||||
Period-end net PPP loans | 225,323 | 325,481 | 320,036 | — | — | |||||||||||||||||||||||||||
Tangible assets, excluding net PPP loans | $ | 2,330,496 | $ | 2,264,342 | $ | 2,136,853 | $ | 2,184,502 | $ | 2,084,857 | ||||||||||||||||||||||
Tangible common equity to tangible assets, excluding net PPP loans | 8.33 | % | 8.34 | % | 8.69 | % | 8.41 | % | 8.74 | % |
(Unaudited) | For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 17,651 | $ | 16,758 | $ | 18,343 | $ | 16,146 | $ | 16,773 | $ | 68,898 | $ | 66,695 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Net loss (gain) on foreclosed properties | 54 | (121) | 348 | 102 | (17) | 383 | 224 | |||||||||||||||||||||||||||||||||||||
Amortization of other intangible assets | 8 | 9 | 9 | 9 | 7 | 35 | 40 | |||||||||||||||||||||||||||||||||||||
SBA recourse (benefit) provision | (330) | 57 | (30) | 25 | 21 | (278) | 188 | |||||||||||||||||||||||||||||||||||||
Tax credit investment impairment | 328 | 113 | 1,841 | 113 | 113 | 2,395 | 4,094 | |||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 744 | — | — | 744 | — | |||||||||||||||||||||||||||||||||||||
Total operating expense (a) | $ | 17,591 | $ | 16,700 | $ | 15,431 | $ | 15,897 | $ | 16,649 | $ | 65,619 | $ | 62,149 | ||||||||||||||||||||||||||||||
Net interest income | $ | 22,512 | $ | 18,621 | $ | 18,888 | $ | 17,050 | $ | 18,474 | $ | 77,071 | $ | 69,856 | ||||||||||||||||||||||||||||||
Total non-interest income | 6,799 | 7,408 | 6,319 | 6,414 | 7,189 | 26,940 | 23,423 | |||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Net loss on sale of securities | — | — | — | (4) | (42) | (4) | (46) | |||||||||||||||||||||||||||||||||||||
Adjusted non-interest income | 6,799 | 7,408 | 6,319 | 6,418 | 7,231 | 26,944 | 23,469 | |||||||||||||||||||||||||||||||||||||
Total operating revenue (b) | $ | 29,311 | $ | 26,029 | $ | 25,207 | $ | 23,468 | $ | 25,705 | $ | 104,015 | $ | 93,325 | ||||||||||||||||||||||||||||||
Efficiency ratio | 60.02 | % | 64.16 | % | 61.22 | % | 67.74 | % | 64.77 | % | 63.09 | % | 66.59 | % | ||||||||||||||||||||||||||||||
Pre-tax, pre-provision adjusted earnings (b - a) | $ | 11,720 | $ | 9,329 | $ | 9,776 | $ | 7,571 | $ | 9,056 | $ | 38,396 | $ | 31,176 | ||||||||||||||||||||||||||||||
Average total assets | $ | 2,603,745 | $ | 2,540,735 | $ | 2,425,767 | $ | 2,104,862 | $ | 2,107,365 | $ | 2,419,616 | $ | 2,049,035 | ||||||||||||||||||||||||||||||
Pre-tax, pre-provision adjusted return on average assets | 1.80 | % | 1.47 | % | 1.61 | % | 1.44 | % | 1.72 | % | 1.59 | % | 1.52 | % |
(Unaudited) | For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Interest income | $ | 25,770 | $ | 22,276 | $ | 22,761 | $ | 23,372 | $ | 25,613 | $ | 94,179 | $ | 102,040 | |||||||||||||||||||||||||||
Interest expense | 3,258 | 3,655 | 3,873 | 6,322 | 7,139 | 17,108 | 32,184 | ||||||||||||||||||||||||||||||||||
Net interest income (a) | 22,512 | 18,621 | 18,888 | 17,050 | 18,474 | 77,071 | 69,856 | ||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||
Fees in lieu of interest | 4,749 | 1,511 | 2,257 | 798 | 1,840 | 9,315 | 6,479 | ||||||||||||||||||||||||||||||||||
PPP loan interest income | 718 | 833 | 647 | — | — | 2,198 | — | ||||||||||||||||||||||||||||||||||
FRB interest income and FHLB dividend income | 188 | 167 | 134 | 301 | 208 | 789 | 934 | ||||||||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||||||||
FRB PPPLF interest expense | 9 | 26 | 18 | — | — | 54 | — | ||||||||||||||||||||||||||||||||||
Adjusted net interest income (b) | $ | 16,866 | $ | 16,136 | $ | 15,868 | $ | 15,951 | $ | 16,426 | $ | 64,823 | $ | 62,443 | |||||||||||||||||||||||||||
Average interest-earning assets (c) | $ | 2,441,735 | $ | 2,374,891 | $ | 2,258,759 | $ | 1,981,887 | $ | 1,980,922 | $ | 2,265,105 | $ | 1,935,343 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||
Average net PPP loans | 282,259 | 323,082 | 252,834 | — | — | 215,025 | — | ||||||||||||||||||||||||||||||||||
Average FRB cash and FHLB stock | 45,611 | 33,756 | 69,176 | 37,989 | 34,565 | 46,595 | 34,149 | ||||||||||||||||||||||||||||||||||
Average non-accrual loans and leases | 36,013 | 26,931 | 25,386 | 22,209 | 21,738 | 27,656 | 23,937 | ||||||||||||||||||||||||||||||||||
Adjusted average interest-earning assets (d) | $ | 2,077,852 | $ | 1,991,122 | $ | 1,911,363 | $ | 1,921,689 | $ | 1,924,619 | $ | 1,975,829 | $ | 1,877,257 | |||||||||||||||||||||||||||
Net interest margin (a / c) | 3.69 | % | 3.14 | % | 3.34 | % | 3.44 | % | 3.73 | % | 3.40 | % | 3.61 | % | |||||||||||||||||||||||||||
Adjusted net interest margin (b / d) | 3.25 | % | 3.24 | % | 3.32 | % | 3.32 | % | 3.41 | % | 3.28 | % | 3.33 | % |
Cover Page |
Jan. 28, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jan. 28, 2021 |
Entity Registrant Name | First Business Financial Services, Inc. |
Entity Incorporation, State or Country Code | WI |
Entity File Number | 1-34095 |
Entity Tax Identification Number | 39-1576570 |
Entity Address, Address Line One | 401 Charmany Drive |
Entity Address, City or Town | Madison |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53719 |
City Area Code | 608 |
Local Phone Number | 238-8008 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | FBIZ |
Security Exchange Name | NASDAQ |
Entity Central Index Key | 0001521951 |
Amendment Flag | false |
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