Fri, Jul 26, 8:37 PM (43 days ago)
First Business Financial Services, Inc. reported a net income available to common shareholders of $10.2 million for Q2 2024, up from $8.1 million in Q2 2023, with diluted EPS increasing to $1.23 from $0.98. For the six months ended June 30, 2024, net income was $18.9 million, an increase from $16.9 million in the same period in 2023. The annualized ROAA was 1.14% for the quarter and 1.06% for the six months, while ROACE was 14.12% and 13.20%, respectively. Net interest income rose by 10.1% for the quarter, driven by a 14.7% increase in average gross loans and leases. However, net interest margin declined to 3.65% from 3.81% due to higher funding costs. Non-interest income increased slightly by 0.7% for the quarter but decreased by 10.1% for the six months, impacted by lower gains on SBA loan sales and reduced commercial loan swap fee income. Non-performing assets were 0.53% of total assets, down from 0.59% at year-end 2023. The allowance for credit losses increased to 1.17% of total loans. Total assets rose to $3.617 billion, driven by loan growth, while deposits increased to $2.885 billion. The effective tax rate for the six months was 15.8%, down from 23.5% due to changes in state tax legislation.