(Unaudited) | As of and for the Three Months Ended | As of and for the Six Months Ended | ||||||||
(Dollars in thousands, except per share amounts) |
June 30, 2021 |
March 31, 2021 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||
Net interest income
| $ | 21,652 | $ | 20,863 | $ | 18,888 | $ | 42,515 | $ | 35,937 |
Adjusted non-interest income (1)
| 6,292 | 7,195 | 6,319 | 13,487 | 12,737 | |||||
Operating revenue (1)
| 27,944 | 28,058 | 25,207 | 56,002 | 48,674 | |||||
Operating expense (1)
| 17,932 | 17,449 | 15,431 | 35,383 | 31,327 | |||||
Pre-tax, pre-provision adjusted earnings (1)
| 10,012 | 10,609 | 9,776 | 20,619 | 17,347 | |||||
Less:
| ||||||||||
Provision for loan and lease losses | (958) | (2,068) | 5,469 | (3,026) | 8,651 | |||||
Net (gain) loss on foreclosed properties | (1) | 3 | 348 | 1 | 450 | |||||
Amortization of other intangible assets
| 8 | 8 | 9 | 15 | 18 | |||||
SBA recourse provision (benefit) | 245 | (130) | (30) | 115 | (5) | |||||
Impairment on tax credit investments | - | - | 1,841 | - | 1,954 | |||||
Loss on early extinguishment of debt
| - | - | 744 | - | 744 | |||||
Add:
| ||||||||||
Net gain (loss) on sale of securities | 29 | - | - | 29 | (4) | |||||
Income before income tax expense
| 10,747 | 12,796 | 1,395 | 23,543 | 5,531 | |||||
Income tax expense (benefit) | 2,512 | 3,065 | (1,928) | 5,577 | (1,070) | |||||
Net income
| $ | 8,235 | $ | 9,731 | $ | 3,323 | $ | 17,966 | $ | 6,601 |
Earnings per share, diluted
| $ | 0.95 | $ | 1.12 | $ | 0.38 | $ | 2.08 | $ | 0.77 |
Book value per share | $ | 25.70 | $ | 24.83 | $ | 23.04 | $ | 25.70 | $ | 23.04 |
Tangible book value per share (1)
| $ | 24.28 | $ | 23.43 | $ | 21.65 | $ | 24.28 | $ | 21.65 |
Net interest margin | 3.49 | % | 3.44 | % | 3.34 | % | 3.46 | % | 3.39 | % |
Adjusted net interest margin (1)
| 3.20 | % | 3.20 | % | 3.32 | % | 3.20 | % | 3.32 | % |
Efficiency ratio (1)
| 64.17 | % | 62.19 | % | 61.22 | % | 63.18 | % | 64.36 | % |
Return on average assets
| 1.26 | % | 1.51 | % | 0.55 | % | 1.38 | % | 0.58 | % |
Pre-tax, pre-provision adjusted return on average assets (1)
| 1.53 | % | 1.65 | % | 1.61 | % | 1.59 | % | 1.53 | % |
Return on average equity
| 15.09 | % | 18.48 | % | 6.70 | % | 16.75 | % | 6.92 | % |
Period-end loans and leases receivable
| $ | 2,143,561 | $ | 2,235,112 | $ | 2,056,863 | $ | 2,143,561 | $ | 2,056,863 |
Period-end loans and leases receivable, excluding net PPP loans | $ | 2,022,839 | $ | 1,967,545 | $ | 1,736,827 | $ | 2,022,839 | $ | 1,736,827 |
Average loans and leases receivable
| $ | 2,223,353 | $ | 2,182,958 | $ | 1,983,121 | $ | 2,203,267 | $ | 1,858,432 |
Period-end in-market deposits
| $ | 2,016,215 | $ | 1,737,226 | $ | 1,620,616 | $ | 2,016,215 | $ | 1,620,616 |
Average in-market deposits
| $ | 1,735,393 | $ | 1,722,107 | $ | 1,570,552 | $ | 1,728,787 | $ | 1,468,348 |
Allowance for loan and lease losses
| $ | 25,675 | $ | 28,982 | $ | 27,464 | $ | 25,675 | $ | 27,464 |
Non-performing assets
| $ | 11,601 | $ | 19,023 | $ | 25,484 | $ | 11,601 | $ | 25,484 |
Allowance for loan and lease losses as a percent of total gross loans and leases
| 1.20 | % | 1.29 | % | 1.33 | % | 1.20 | % | 1.33 | % |
Allowance for loan and lease losses as a percent of total gross loans and leases, excluding net PPP loans | 1.27 | % | 1.47 | % | 1.57 | % | 1.27 | % | 1.57 | % |
Non-performing assets as a percent of total assets
| 0.40 | % | 0.73 | % | 1.03 | % | 0.40 | % | 1.03 | % |
Non-performing assets as a percent of total assets, excluding net PPP loans | 0.42 | % | 0.81 | % | 1.19 | % | 0.42 | % | 1.19 | % |
As of | ||||||
June 30, 2021 | ||||||
Collateral Type | ||||||
Industries Description | Balance | Real Estate | Non-Real Estate | |||
(In thousands) | ||||||
Accommodation and Food Services | $ | 19,811 | $ | 19,811 | $ | - |
Manufacturing | 310 | 310 | - | |||
Agriculture, Forestry, Fishing, and Hunting | 210 | - | 210 | |||
Educational Services | 195 | 195 | - | |||
Total deferred loan balances | $ | 20,526 | $ | 20,316 | $ | 210 |
As of | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Industries: | Balance |
% Gross Loans and Leases (1)
| Balance |
% Gross Loans and Leases (1)
| ||||
(Dollars in Thousands) | ||||||||
Retail (2) (3)
| $ | 75,588 | 3.7 | % | $ | 62,719 | 3.3 | % |
Hospitality
| 82,818 | 4.1 | % | 80,832 | 4.2 | % | ||
Entertainment
| 13,729 | 0.7 | % | 14,208 | 0.7 | % | ||
Restaurants & food service
| 23,340 | 1.2 | % | 24,854 | 1.3 | % | ||
Total outstanding exposure
| $ | 195,475 | 9.6 | % | $ | 182,613 | 9.5 | % |
CONTACT: | First Business Financial Services, Inc. |
Edward G. Sloane, Jr. | |
Chief Financial Officer | |
608-232-5970 | |
esloane@firstbusiness.bank |
(Unaudited) | As of | |||||||||
(in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Assets | ||||||||||
Cash and cash equivalents | $ | 389,977 | $ | 58,874 | $ | 56,909 | $ | 51,728 | $ | 42,391 |
Securities available-for-sale, at fair value | 171,219 | 173,261 | 183,925 | 179,274 | 171,680 | |||||
Securities held-to-maturity, at amortized cost | 22,382 | 24,783 | 26,374 | 28,897 | 29,826 | |||||
Loans held for sale | 6,059 | 6,576 | 8,695 | 15,049 | 13,672 | |||||
Loans and leases receivable | 2,143,561 | 2,235,112 | 2,145,970 | 2,170,299 | 2,056,863 | |||||
Allowance for loan and lease losses | (25,675) | (28,982) | (28,521) | (30,817) | (27,464) | |||||
Loans and leases receivable, net | 2,117,886 | 2,206,130 | 2,117,449 | 2,139,482 | 2,029,399 | |||||
Premises and equipment, net | 1,747 | 1,923 | 1,998 | 2,130 | 2,266 | |||||
Foreclosed properties | 179 | 31 | 34 | 613 | 1,389 | |||||
Right-of-use assets
| 5,472 | 5,486 | 5,814 | 6,141 | 6,272 | |||||
Bank-owned life insurance
| 52,887 | 52,537 | 52,188 | 51,798 | 51,433 | |||||
Federal Home Loan Bank stock, at cost
| 13,451 | 14,941 | 13,578 | 15,153 | 13,470 | |||||
Goodwill and other intangible assets | 12,178 | 12,055 | 12,018 | 12,024 | 11,925 | |||||
Derivatives | 32,377 | 26,104 | 49,377 | 58,210 | 58,808 | |||||
Accrued interest receivable and other assets | 39,855 | 38,017 | 39,478 | 41,348 | 36,283 | |||||
Total assets | $ | 2,865,669 | $ | 2,620,718 | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 |
Liabilities and Stockholders' Equity
| ||||||||||
In-market deposits | $ | 2,016,215 | $ | 1,737,226 | $ | 1,683,008 | $ | 1,667,245 | $ | 1,620,616 |
Wholesale deposits | 144,492 | 165,492 | 172,508 | 154,130 | 89,759 | |||||
Total deposits | 2,160,707 | 1,902,718 | 1,855,516 | 1,821,375 | 1,710,375 | |||||
Federal Home Loan Bank advances and other borrowings
| 420,113 | 448,417 | 419,167 | 483,517 | 465,007 | |||||
Junior subordinated notes | 10,069 | 10,065 | 10,062 | 10,058 | 10,054 | |||||
Lease liabilities | 6,005 | 6,040 | 6,386 | 6,728 | 6,877 | |||||
Derivatives | 36,109 | 29,565 | 54,927 | 64,403 | 65,390 | |||||
Accrued interest payable and other liabilities | 11,214 | 9,422 | 15,617 | 14,981 | 13,549 | |||||
Total liabilities | 2,644,217 | 2,406,227 | 2,361,675 | 2,401,062 | 2,271,252 | |||||
Total stockholders' equity | 221,452 | 214,491 | 206,162 | 200,785 | 197,562 | |||||
Total liabilities and stockholders' equity
| $ | 2,865,669 | $ | 2,620,718 | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 |
(Unaudited) | As of and for the Three Months Ended | As of and for the Six Months Ended | ||||||||||||
(Dollars in thousands, except per share amounts) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Total interest income | $ | 24,599 | $ | 23,806 | $ | 25,770 | $ | 22,276 | $ | 22,761 | $ | 48,406 | $ | 46,132 |
Total interest expense | 2,947 | 2,943 | 3,258 | 3,655 | 3,873 | 5,891 | 10,195 | |||||||
Net interest income | 21,652 | 20,863 | 22,512 | 18,621 | 18,888 | 42,515 | 35,937 | |||||||
Provision for loan and lease losses
| (958) | (2,068) | 4,322 | 3,835 | 5,469 | (3,026) | 8,651 | |||||||
Net interest income after provision for loan and lease losses
| 22,610 | 22,931 | 18,190 | 14,786 | 13,419 | 45,541 | 27,286 | |||||||
Private wealth management service fees
| 2,744 | 2,407 | 2,208 | 2,167 | 2,124 | 5,151 | 4,235 | |||||||
Gain on sale of SBA loans
| 1,203 | 1,078 | 1,300 | 760 | 574 | 2,281 | 839 | |||||||
Service charges on deposits
| 941 | 917 | 887 | 881 | 829 | 1,859 | 1,647 | |||||||
Loan fees | 569 | 545 | 412 | 478 | 451 | 1,114 | 936 | |||||||
Net gain on sale of securities | 29 | - | - | - | - | 29 | (4) | |||||||
Swap fees | - | 684 | 1,078 | 2,446 | 1,655 | 684 | 3,336 | |||||||
Other non-interest income | 835 | 1,564 | 914 | 676 | 686 | 2,398 | 1,744 | |||||||
Total non-interest income
| 6,321 | 7,195 | 6,799 | 7,408 | 6,319 | 13,516 | 12,733 | |||||||
Compensation | 13,255 | 12,657 | 12,145 | 11,857 | 10,796 | 25,912 | 21,848 | |||||||
Occupancy | 533 | 552 | 556 | 570 | 554 | 1,085 | 1,126 | |||||||
Professional fees
| 913 | 866 | 909 | 943 | 859 | 1,778 | 1,678 | |||||||
Data processing
| 798 | 770 | 668 | 679 | 710 | 1,569 | 1,386 | |||||||
Marketing
| 511 | 391 | 411 | 356 | 352 | 902 | 813 | |||||||
Equipment
| 261 | 246 | 294 | 310 | 304 | 506 | 595 | |||||||
Computer software
| 1,129 | 1,115 | 1,028 | 1,017 | 966 | 2,244 | 1,856 | |||||||
FDIC insurance
| 280 | 362 | 479 | 312 | 239 | 642 | 448 | |||||||
Collateral liquidation cost | 84 | 94 | 47 | 45 | 115 | 178 | 236 | |||||||
Net (gain) loss on foreclosed properties | (1) | 3 | 54 | (121) | 348 | 1 | 450 | |||||||
Tax credit investment impairment | - | - | 328 | 113 | 1,841 | - | 1,954 | |||||||
SBA recourse provision (benefit) | 245 | (130) | (330) | 57 | (30) | 115 | (5) | |||||||
Loss on early extinguishment of debt
| - | - | - | - | 744 | - | 744 | |||||||
Other non-interest expense | 176 | 404 | 1,062 | 620 | 545 | 582 | 1,359 | |||||||
Total non-interest expense
| 18,184 | 17,330 | 17,651 | 16,758 | 18,343 | 35,514 | 34,488 | |||||||
Income before income tax expense (benefit) | 10,747 | 12,796 | 7,338 | 5,436 | 1,395 | 23,543 | 5,531 | |||||||
Income tax expense (benefit) | 2,512 | 3,065 | 1,254 | 1,143 | (1,928) | 5,577 | (1,070) | |||||||
Net income | $ | 8,235 | $ | 9,731 | $ | 6,084 | $ | 4,293 | $ | 3,323 | $ | 17,966 | $ | 6,601 |
Per common share: | ||||||||||||||
Basic earnings | $ | 0.95 | $ | 1.12 | $ | 0.71 | $ | 0.50 | $ | 0.38 | $ | 2.08 | $ | 0.77 |
Diluted earnings | 0.95 | 1.12 | 0.71 | 0.50 | 0.38 | 2.08 | 0.77 | |||||||
Dividends declared | 0.18 | 0.18 | 0.165 | 0.165 | 0.165 | 0.36 | 0.33 | |||||||
Book value | 25.70 | 24.83 | 24.06 | 23.45 | 23.04 | 25.70 | 23.04 | |||||||
Tangible book value | 24.28 | 23.43 | 22.66 | 22.05 | 21.65 | 24.28 | 21.65 | |||||||
Weighted-average common shares outstanding(1)
| 8,385,069 | 8,429,149 | 8,417,216 | 8,404,084 | 8,392,197 | 8,381,868 | 8,379,696 | |||||||
Weighted-average diluted common shares outstanding(1)
| 8,385,069 | 8,429,149 | 8,417,216 | 8,404,084 | 8,392,197 | 8,381,868 | 8,379,696 |
(Unaudited) | For the Three Months Ended | |||||||||||||||||
(Dollars in thousands) | June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||
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)
| $ | 1,386,187 | $ | 13,087 | 3.78 | % | $ | 1,357,141 | $ | 12,528 | 3.69 | % | $ | 1,192,530 | $ | 12,450 | 4.18 | % |
Commercial and industrial loans(1)
| 772,257 | 9,875 | 5.11 | % | 757,898 | 9,625 | 5.08 | % | 726,862 | 8,347 | 4.59 | % | ||||||
Direct financing leases(1)
| 19,883 | 222 | 4.47 | % | 22,271 | 244 | 4.38 | % | 27,115 | 395 | 5.83 | % | ||||||
Consumer and other loans(1)
| 45,026 | 407 | 3.62 | % | 45,648 | 398 | 3.49 | % | 36,614 | 356 | 3.89 | % | ||||||
Total loans and leases receivable(1)
| 2,223,353 | 23,591 | 4.24 | % | 2,182,958 | 22,795 | 4.18 | % | 1,983,121 | 21,548 | 4.35 | % | ||||||
Mortgage-related securities(2)
| 149,253 | 631 | 1.69 | % | 163,324 | 666 | 1.63 | % | 174,113 | 912 | 2.10 | % | ||||||
Other investment securities(3)
| 41,569 | 185 | 1.78 | % | 42,177 | 187 | 1.77 | % | 30,194 | 158 | 2.09 | % | ||||||
FHLB stock | 14,172 | 176 | 4.97 | % | 12,465 | 152 | 4.88 | % | 10,301 | 127 | 4.93 | % | ||||||
Short-term investments | 55,100 | 16 | 0.12 | % | 24,575 | 6 | 0.10 | % | 61,030 | 16 | 0.10 | % | ||||||
Total interest-earning assets | 2,483,447 | 24,599 | 3.96 | % | 2,425,499 | 23,806 | 3.93 | % | 2,258,759 | 22,761 | 4.03 | % | ||||||
Non-interest-earning assets | 137,893 | 151,665 | 167,008 | |||||||||||||||
Total assets | $ | 2,621,340 | $ | 2,577,164 | $ | 2,425,767 | ||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Transaction accounts | $ | 499,040 | 248 | 0.20 | % | $ | 521,130 | 250 | 0.19 | % | $ | 368,844 | 291 | 0.32 | % | |||
Money market | 662,919 | 282 | 0.17 | % | 657,690 | 274 | 0.17 | % | 637,714 | 368 | 0.23 | % | ||||||
Certificates of deposit | 45,993 | 112 | 0.97 | % | 57,424 | 177 | 1.23 | % | 123,581 | 627 | 2.03 | % | ||||||
Wholesale deposits
| 162,580 | 301 | 0.74 | % | 166,752 | 318 | 0.76 | % | 105,597 | 638 | 2.42 | % | ||||||
Total interest-bearing deposits
| 1,370,532 | 943 | 0.28 | % | 1,402,996 | 1,019 | 0.29 | % | 1,235,736 | 1,924 | 0.62 | % | ||||||
FHLB advances | 405,855 | 1,284 | 1.27 | % | 366,670 | 1,249 | 1.36 | % | 409,281 | 1,283 | 1.25 | % | ||||||
Federal Reserve PPPLF
| - | - | - | % | - | - | - | % | 20,821 | 18 | 0.35 | % | ||||||
Other borrowings | 32,447 | 443 | 5.46 | % | 27,296 | 401 | 5.88 | % | 24,681 | 371 | 6.01 | % | ||||||
Junior subordinated notes | 10,066 | 277 | 11.01 | % | 10,063 | 274 | 10.89 | % | 10,052 | 277 | 11.02 | % | ||||||
Total interest-bearing liabilities
| 1,818,900 | 2,947 | 0.65 | % | 1,807,025 | 2,943 | 0.65 | % | 1,700,571 | 3,873 | 0.91 | % | ||||||
Non-interest-bearing demand deposit accounts
| 527,441 | 485,863 | 440,413 | |||||||||||||||
Other non-interest-bearing liabilities
| 56,691 | 73,695 | 86,504 | |||||||||||||||
Total liabilities | 2,403,032 | 2,366,583 | 2,227,488 | |||||||||||||||
Stockholders' equity | 218,308 | 210,581 | 198,279 | |||||||||||||||
Total liabilities and stockholders' equity
| $ | 2,621,340 | $ | 2,577,164 | $ | 2,425,767 | ||||||||||||
Net interest income | $ | 21,652 | $ | 20,863 | $ | 18,888 | ||||||||||||
Interest rate spread | 3.31 | % | 3.27 | % | 3.12 | % | ||||||||||||
Net interest-earning assets | $ | 664,547 | $ | 618,474 | $ | 558,188 | ||||||||||||
Net interest margin | 3.49 | % | 3.44 | % | 3.34 | % |
(Unaudited) | For the Six Months Ended | |||||||||||
(Dollars in thousands) | June 30, 2021 | June 30, 2020 | ||||||||||
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)
| $ | 1,371,744 | $ | 25,615 | 3.73 | % | $ | 1,173,251 | $ | 25,973 | 4.43 | % |
Commercial and industrial loans(1)
| 765,117 | 19,500 | 5.10 | % | 621,399 | 16,204 | 5.22 | % | ||||
Direct financing leases(1)
| 21,071 | 466 | 4.42 | % | 27,538 | 503 | 3.65 | % | ||||
Consumer and other loans(1)
| 45,335 | 805 | 3.55 | % | 36,244 | 717 | 3.96 | % | ||||
Total loans and leases receivable(1)
| 2,203,267 | 46,386 | 4.21 | % | 1,858,432 | 43,397 | 4.67 | % | ||||
Mortgage-related securities(2)
| 156,249 | 1,297 | 1.66 | % | 177,352 | 1,973 | 2.22 | % | ||||
Other investment securities(3)
| 41,871 | 372 | 1.78 | % | 26,737 | 285 | 2.13 | % | ||||
FHLB stock | 13,323 | 329 | 4.94 | % | 9,407 | 331 | 7.04 | % | ||||
Short-term investments | 39,922 | 22 | 0.11 | % | 48,396 | 146 | 0.60 | % | ||||
Total interest-earning assets | 2,454,632 | 48,406 | 3.94 | % | 2,120,324 | 46,132 | 4.35 | % | ||||
Non-interest-earning assets | 144,741 | 144,991 | ||||||||||
Total assets | $ | 2,599,373 | $ | 2,265,315 | ||||||||
Interest-bearing liabilities | ||||||||||||
Transaction accounts | $ | 510,024 | 498 | 0.20 | % | $ | 320,188 | 938 | 0.59 | % | ||
Money market | 660,319 | 557 | 0.17 | % | 653,598 | 2,237 | 0.68 | % | ||||
Certificates of deposit | 51,677 | 288 | 1.11 | % | 128,791 | 1,377 | 2.14 | % | ||||
Wholesale deposits
| 164,654 | 619 | 0.75 | % | 119,032 | 1,488 | 2.50 | % | ||||
Total interest-bearing deposits
| 1,386,674 | 1,962 | 0.28 | % | 1,221,609 | 6,040 | 0.99 | % | ||||
FHLB advances | 386,371 | 2,533 | 1.31 | % | 367,604 | 2,842 | 1.55 | % | ||||
Federal Reserve PPPLF
| - | - | - | % | 10,410 | 18 | 0.35 | % | ||||
Other borrowings | 29,886 | 844 | 5.65 | % | 24,533 | 740 | 6.03 | % | ||||
Junior subordinated notes | 10,064 | 552 | 10.97 | % | 10,050 | 555 | 11.04 | % | ||||
Total interest-bearing liabilities
| 1,812,995 | 5,891 | 0.65 | % | 1,634,206 | 10,195 | 1.25 | % | ||||
Non-interest-bearing demand deposit accounts
| 506,767 | 365,771 | ||||||||||
Other non-interest-bearing liabilities
| 65,146 | 74,436 | ||||||||||
Total liabilities | 2,384,908 | 2,074,413 | ||||||||||
Stockholders' equity | 214,465 | 190,902 | ||||||||||
Total liabilities and stockholders' equity
| $ | 2,599,373 | $ | 2,265,315 | ||||||||
Net interest income | $ | 42,515 | $ | 35,937 | ||||||||
Interest rate spread | 3.29 | % | 3.10 | % | ||||||||
Net interest-earning assets | $ | 641,637 | $ | 486,118 | ||||||||
Net interest margin | 3.46 | % | 3.39 | % |
(Unaudited) | For the Three Months Ended | For the Six Months Ended | ||||||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Change in general reserve due to subjective factor changes | $ | (652) | $ | 1,082 | $ | 1,008 | $ | (766) | $ | 2,388 | $ | 430 | $ | 5,224 |
Change in general reserve due to historical loss factor changes | (1,687) | (984) | 1,274 | (16) | (54) | (2,671) | (334) | |||||||
Charge-offs | 2,894 | 144 | 6,685 | 505 | 817 | 3,038 | 948 | |||||||
Recoveries | (545) | (2,673) | (68) | (23) | (64) | (3,218) | (241) | |||||||
Change in specific reserves on impaired loans, net | (1,466) | (194) | (5,216) | 2,974 | 2,122 | (1,660) | 2,559 | |||||||
Change due to loan growth, net | 498 | 557 | 639 | 1,161 | 260 | 1,055 | 495 | |||||||
Total provision for loan and lease losses | $ | (958) | $ | (2,068) | $ | 4,322 | $ | 3,835 | $ | 5,469 | $ | (3,026) | $ | 8,651 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||
(Unaudited) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Return on average assets (annualized)
| 1.26 | % | 1.51 | % | 0.93 | % | 0.68 | % | 0.55 | % | 1.38 | % | 0.58 | % |
Return on average equity (annualized)
| 15.09 | % | 18.48 | % | 11.92 | % | 8.58 | % | 6.70 | % | 16.75 | % | 6.92 | % |
Efficiency ratio | 64.17 | % | 62.19 | % | 60.02 | % | 64.16 | % | 61.22 | % | 63.18 | % | 64.36 | % |
Interest rate spread
| 3.31 | % | 3.27 | % | 3.51 | % | 2.94 | % | 3.12 | % | 3.29 | % | 3.10 | % |
Net interest margin | 3.49 | % | 3.44 | % | 3.69 | % | 3.14 | % | 3.34 | % | 3.46 | % | 3.39 | % |
Average interest-earning assets to average interest-bearing liabilities
| 136.54 | % | 134.23 | % | 132.88 | % | 131.68 | % | 132.82 | % | 135.39 | % | 129.75 | % |
(Unaudited) | As of | |||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Non-accrual loans and leases
| $ | 11,422 | $ | 18,992 | $ | 26,617 | $ | 36,050 | $ | 24,095 |
Foreclosed properties
| 179 | 31 | 34 | 613 | 1,389 | |||||
Total non-performing assets
| 11,601 | 19,023 | 26,651 | 36,663 | 25,484 | |||||
Performing troubled debt restructurings
| 56 | 59 | 46 | 47 | 49 | |||||
Total impaired assets
| $ | 11,657 | $ | 19,082 | $ | 26,697 | $ | 36,710 | $ | 25,533 |
Non-accrual loans and leases as a percent of total gross loans and leases
| 0.53 | % | 0.85 | % | 1.24 | % | 1.66 | % | 1.17 | % |
Non-performing assets as a percent of total gross loans and leases plus foreclosed properties
| 0.54 | % | 0.85 | % | 1.24 | % | 1.68 | % | 1.23 | % |
Non-performing assets as a percent of total assets
| 0.40 | % | 0.73 | % | 1.04 | % | 1.41 | % | 1.03 | % |
Allowance for loan and lease losses as a percent of total gross loans and leases
| 1.20 | % | 1.29 | % | 1.33 | % | 1.41 | % | 1.33 | % |
Allowance for loan and lease losses as a percent of non-accrual loans and leases
| 224.79 | % | 152.60 | % | 107.15 | % | 85.48 | % | 113.98 | % |
(Unaudited) | As of | |||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Non-accrual loans and leases as a percent of total gross loans and leases
| 0.56 | % | 0.96 | % | 1.38 | % | 1.95 | % | 1.38 | % |
Non-performing assets as a percent of total gross loans and leases plus foreclosed properties
| 0.57 | % | 0.96 | % | 1.38 | % | 1.98 | % | 1.46 | % |
Non-performing assets as a percent of total assets
| 0.42 | % | 0.81 | % | 1.14 | % | 1.61 | % | 1.19 | % |
Allowance for loan and lease losses as a percent of total gross loans and leases
| 1.27 | % | 1.47 | % | 1.48 | % | 1.67 | % | 1.57 | % |
PPP loans outstanding, net | $ | 120,723 | $ | 267,567 | $ | 225,323 | $ | 325,481 | $ | 320,036 |
(Unaudited) | For the Three Months Ended | For the Six Months Ended | ||||||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Charge-offs
| $ | 2,894 | $ | 144 | $ | 6,685 | $ | 505 | $ | 817 | $ | 3,038 | $ | 948 |
Recoveries
| (545) | (2,673) | (68) | (23) | (64) | (3,218) | (241) | |||||||
Net charge-offs (recoveries) | $ | 2,349 | $ | (2,529) | $ | 6,617 | $ | 482 | $ | 753 | $ | (180) | $ | 707 |
Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized)
| 0.42 | % | (0.46) | % | 1.21 | % | 0.09 | % | 0.15 | % | (0.02) | % | 0.08 | % |
Annualized charge-offs (recoveries) as a percent of average gross loans and leases, excluding average net PPP loans | 0.47 | % | (0.52) | % | 1.39 | % | 0.11 | % | 0.17 | % | (0.02) | % | 0.08 | % |
Average PPP loans outstanding, net | $ | 229,165 | $ | 242,242 | $ | 282,259 | $ | 323,082 | $ | 252,834 | $ | 235,668 | $ | 126,417 |
As of and for the Three Months Ended | ||||||||||
(Unaudited) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Total capital to risk-weighted assets | 11.22 | % | 11.52 | % | 11.25 | % | 11.42 | % | 11.97 | % |
Tier I capital to risk-weighted assets | 9.14 | % | 9.24 | % | 8.96 | % | 9.09 | % | 9.57 | % |
Common equity tier I capital to risk-weighted assets | 8.72 | % | 8.81 | % | 8.53 | % | 8.64 | % | 9.08 | % |
Tier I capital to adjusted assets | 8.48 | % | 8.37 | % | 7.99 | % | 8.04 | % | 8.29 | % |
Tangible common equity to tangible assets | 7.33 | % | 7.76 | % | 7.60 | % | 7.29 | % | 7.56 | % |
Tangible common equity to tangible assets, excluding net PPP loans | 7.66 | % | 8.65 | % | 8.33 | % | 8.34 | % | 8.69 | % |
(Unaudited) | As of | |||||||||
(in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Commercial real estate: | ||||||||||
Commercial real estate - owner occupied
| $ | 253,600 | $ | 256,812 | $ | 253,882 | $ | 240,706 | $ | 229,994 |
Commercial real estate - non-owner occupied
| 614,289 | 592,090 | 564,532 | 565,781 | 533,211 | |||||
Land development | 45,056 | 46,544 | 49,839 | 50,864 | 44,299 | |||||
Construction | 139,943 | 151,345 | 141,043 | 142,726 | 133,375 | |||||
Multi-family | 319,351 | 322,384 | 311,556 | 287,583 | 244,496 | |||||
1-4 family | 19,769 | 23,319 | 38,284 | 38,857 | 36,823 | |||||
Total commercial real estate
| 1,392,008 | 1,392,494 | 1,359,136 | 1,326,517 | 1,222,198 | |||||
Commercial and industrial
| 695,442 | 784,305 | 732,318 | 790,349 | 781,239 | |||||
Direct financing leases, net | 18,142 | 19,616 | 22,331 | 24,743 | 25,525 | |||||
Consumer and other: | ||||||||||
Home equity and second mortgages
| 5,740 | 6,719 | 7,833 | 7,106 | 6,706 | |||||
Other | 36,567 | 38,266 | 28,897 | 29,341 | 29,737 | |||||
Total consumer and other
| 42,307 | 44,985 | 36,730 | 36,447 | 36,443 | |||||
Total gross loans and leases receivable
| 2,147,899 | 2,241,400 | 2,150,515 | 2,178,056 | 2,065,405 | |||||
Less: | ||||||||||
Allowance for loan and lease losses
| 25,675 | 28,982 | 28,521 | 30,817 | 27,464 | |||||
Deferred loan fees | 4,338 | 6,288 | 4,545 | 7,757 | 8,542 | |||||
Loans and leases receivable, net
| $ | 2,117,886 | $ | 2,206,130 | $ | 2,117,449 | $ | 2,139,482 | $ | 2,029,399 |
(Unaudited) | As of | |||||||||
(in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Performing loans: | ||||||||||
Off-balance sheet loans
| $ | 14,161 | $ | 17,523 | $ | 23,354 | $ | 26,017 | $ | 28,843 |
On-balance sheet loans
| 6,836 | 7,340 | 11,117 | 15,175 | 16,554 | |||||
Gross loans
| 20,997 | 24,863 | 34,471 | 41,192 | 45,397 | |||||
Non-performing loans:
| ||||||||||
Off-balance sheet loans
| 3,943 | 1,835 | 1,931 | 2,574 | 1,640 | |||||
On-balance sheet loans
| 1,800 | 6,832 | 7,435 | 9,561 | 9,725 | |||||
Gross loans
| 5,743 | 8,667 | 9,366 | 12,135 | 11,365 | |||||
Total loans:
| ||||||||||
Off-balance sheet loans
| 18,104 | 19,358 | 25,285 | 28,591 | 30,483 | |||||
On-balance sheet loans
| 8,636 | 14,172 | 18,552 | 24,736 | 26,279 | |||||
Gross loans
| $ | 26,740 | $ | 33,530 | $ | 43,837 | $ | 53,327 | $ | 56,762 |
(Unaudited) | As of | |||||||||
(in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Non-interest-bearing transaction accounts
| $ | 774,253 | $ | 496,877 | $ | 472,818 | $ | 452,268 | $ | 433,760 |
Interest-bearing transaction accounts
| 511,698 | 561,466 | 503,992 | 484,761 | 413,214 | |||||
Money market accounts | 685,127 | 632,065 | 641,504 | 636,872 | 656,741 | |||||
Certificates of deposit | 45,137 | 46,818 | 64,694 | 93,344 | 116,901 | |||||
Wholesale deposits | 144,492 | 165,492 | 172,508 | 154,130 | 89,759 | |||||
Total deposits | $ | 2,160,707 | $ | 1,902,718 | $ | 1,855,516 | $ | 1,821,375 | $ | 1,710,375 |
(Unaudited) | As of | |||||||||
(in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Trust assets under management
| $ | 2,362,257 | $ | 2,195,804 | $ | 2,061,772 | $ | 1,841,986 | $ | 1,704,019 |
Trust assets under administration
| 202,116 | 190,721 | 187,228 | 175,521 | 169,388 | |||||
Total trust assets
| $ | 2,564,373 | $ | 2,386,525 | $ | 2,249,000 | $ | 2,017,507 | $ | 1,873,407 |
(Unaudited) | As of | |||||||||
(Dollars in thousands, except per share amounts) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Common stockholders' equity | $ | 221,452 | $ | 214,491 | $ | 206,162 | $ | 200,785 | $ | 197,562 |
Goodwill and other intangible assets | (12,178) | (12,055) | (12,018) | (12,024) | (11,925) | |||||
Tangible common equity | $ | 209,274 | $ | 202,436 | $ | 194,144 | $ | 188,761 | $ | 185,637 |
Common shares outstanding | 8,617,761 | 8,638,195 | 8,566,960 | 8,561,714 | 8,575,134 | |||||
Book value per share | $ | 25.70 | $ | 24.83 | $ | 24.06 | $ | 23.45 | $ | 23.04 |
Tangible book value per share
| 24.28 | 23.43 | 22.66 | 22.05 | 21.65 |
(Unaudited) | As of | |||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 | |||||
Common stockholders' equity | $ | 221,452 | $ | 214,491 | $ | 206,162 | $ | 200,785 | $ | 197,562 |
Goodwill and other intangible assets | (12,178) | (12,055) | (12,018) | (12,024) | (11,925) | |||||
Tangible common equity | $ | 209,274 | $ | 202,436 | $ | 194,144 | $ | 188,761 | $ | 185,637 |
Total assets | $ | 2,865,669 | $ | 2,620,718 | $ | 2,567,837 | $ | 2,601,847 | $ | 2,468,814 |
Goodwill and other intangible assets | (12,178) | (12,055) | (12,018) | (12,024) | (11,925) | |||||
Tangible assets
| $ | 2,853,491 | $ | 2,608,663 | $ | 2,555,819 | $ | 2,589,823 | $ | 2,456,889 |
Tangible common equity to tangible assets
| 7.33 | % | 7.76 | % | 7.60 | % | 7.29 | % | 7.56 | % |
Period-end net PPP loans | 120,722 | 267,567 | 225,323 | 325,481 | 320,036 | |||||
Tangible assets, excluding net PPP loans | $ | 2,732,769 | $ | 2,341,096 | $ | 2,330,496 | $ | 2,264,342 | $ | 2,136,853 |
Tangible common equity to tangible assets, excluding net PPP loans | 7.66 | % | 8.65 | % | 8.33 | % | 8.34 | % | 8.69 | % |
(Unaudited) | For the Three Months Ended | For the Six Months Ended | ||||||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Total non-interest expense | $ | 18,184 | $ | 17,330 | $ | 17,651 | $ | 16,758 | $ | 18,343 | $ | 35,514 | $ | 34,488 |
Less: | ||||||||||||||
Net (gain) loss on foreclosed properties | (1) | 3 | 54 | (121) | 348 | 1 | 450 | |||||||
Amortization of other intangible assets
| 8 | 8 | 8 | 9 | 9 | 15 | 18 | |||||||
SBA recourse provision (benefit) | 245 | (130) | (330) | 57 | (30) | 115 | (5) | |||||||
Tax credit investment impairment | - | - | 328 | 113 | 1,841 | - | 1,954 | |||||||
Loss on early extinguishment of debt
| - | - | - | - | 744 | - | 744 | |||||||
Total operating expense (a)
| $ | 17,932 | $ | 17,449 | $ | 17,591 | $ | 16,700 | $ | 15,431 | $ | 35,383 | $ | 31,327 |
Net interest income | $ | 21,652 | $ | 20,863 | $ | 22,512 | $ | 18,621 | $ | 18,888 | $ | 42,515 | $ | 35,937 |
Total non-interest income | 6,321 | 7,195 | 6,799 | 7,408 | 6,319 | 13,516 | 12,733 | |||||||
Less: | ||||||||||||||
Net gain (loss) on sale of securities | 29 | - | - | - | - | 29 | (4) | |||||||
Adjusted non-interest income | 6,292 | 7,195 | 6,799 | 7,408 | 6,319 | 13,487 | 12,737 | |||||||
Total operating revenue (b)
| $ | 27,944 | $ | 28,058 | $ | 29,311 | $ | 26,029 | $ | 25,207 | $ | 56,002 | $ | 48,674 |
Efficiency ratio | 64.17 | % | 62.19 | % | 60.02 | % | 64.16 | % | 61.22 | % | 63.18 | % | 64.36 | % |
Pre-tax, pre-provision adjusted earnings (b - a)
| $ | 10,012 | $ | 10,609 | $ | 11,720 | $ | 9,329 | $ | 9,776 | $ | 20,619 | $ | 17,347 |
Average total assets | $ | 2,621,340 | $ | 2,577,164 | $ | 2,603,745 | $ | 2,540,735 | $ | 2,425,767 | $ | 2,599,373 | $ | 2,265,315 |
Pre-tax, pre-provision adjusted return on average assets | 1.53 | % | 1.65 | % | 1.80 | % | 1.47 | % | 1.61 | % | 1.59 | % | 1.53 | % |
(Unaudited) | For the Three Months Ended | For the Six Months Ended | ||||||||||||
(Dollars in thousands) |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 | |||||||
Interest income | $ | 24,599 | $ | 23,806 | $ | 25,770 | $ | 22,276 | $ | 22,761 | $ | 48,406 | $ | 46,132 |
Interest expense | 2,947 | 2,943 | 3,258 | 3,655 | 3,873 | 5,891 | 10,195 | |||||||
Net interest income (a)
| 21,652 | 20,863 | 22,512 | 18,621 | 18,888 | 42,515 | 35,937 | |||||||
Less: | ||||||||||||||
Fees in lieu of interest
| 3,536 | 3,085 | 4,749 | 1,511 | 2,257 | 6,621 | 3,055 | |||||||
PPP loan interest income
| 566 | 603 | 718 | 833 | 647 | 1,169 | 647 | |||||||
FRB interest income and FHLB dividend income
| 192 | 158 | 188 | 167 | 134 | 350 | 435 | |||||||
Add: | ||||||||||||||
FRB PPPLF interest expense
| - | - | 9 | 26 | 18 | - | 18 | |||||||
Adjusted net interest income (b)
| $ | 17,358 | $ | 17,017 | $ | 16,866 | $ | 16,136 | $ | 15,868 | $ | 34,375 | $ | 31,818 |
Average interest-earning assets (c)
| $ | 2,483,447 | $ | 2,425,499 | $ | 2,441,735 | $ | 2,374,891 | $ | 2,258,759 | $ | 2,454,632 | $ | 2,120,324 |
Less: | ||||||||||||||
Average net PPP loans | 229,165 | 242,242 | 282,259 | 323,082 | 252,834 | 235,668 | 126,417 | |||||||
Average FRB cash and FHLB stock
| 68,503 | 36,643 | 45,611 | 33,756 | 69,176 | 52,661 | 53,583 | |||||||
Average non-accrual loans and leases
| 16,744 | 22,069 | 36,013 | 26,931 | 25,386 | 19,392 | 23,797 | |||||||
Adjusted average interest-earning assets (d)
| $ | 2,169,035 | $ | 2,124,545 | $ | 2,077,852 | $ | 1,991,122 | $ | 1,911,363 | $ | 2,146,911 | $ | 1,916,527 |
Net interest margin (a / c)
| 3.49 | % | 3.44 | % | 3.69 | % | 3.14 | % | 3.34 | % | 3.46 | % | 3.39 | % |
Adjusted net interest margin (b / d)
| 3.20 | % | 3.20 | % | 3.25 | % | 3.24 | % | 3.32 | % | 3.20 | % | 3.32 | % |
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First Business Financial Services Inc. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 21:18:11 UTC.