FIRST BUSINESS FINANCIAL SERVICES, INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>FIRST BUSINESS FINANCIAL SERVICES, INC. (FBIZ) filed its 2023 10-K report detailing financial performance and operations.</b>

AI Summary

FIRST BUSINESS FINANCIAL SERVICES, INC. (FBIZ) filed a Annual Report (10-K) with the SEC on February 28, 2024. The company filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Financial data from 2021, 2022, and 2023 are referenced. The company's principal business is Commercial Banks (SIC code 6022). The filing was submitted on February 28, 2024.

Why It Matters

For investors and stakeholders tracking FIRST BUSINESS FINANCIAL SERVICES, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of FBIZ's financial health and strategic direction for the fiscal year 2023, crucial for investors assessing performance. The detailed financial data and risk factors presented in the report are essential for stakeholders to understand the company's operational landscape and potential challenges.

Risk Assessment

Risk Level: medium — FIRST BUSINESS FINANCIAL SERVICES, INC. shows moderate risk based on this filing. The filing is a standard 10-K, which inherently contains detailed financial and operational information, but lacks specific forward-looking statements or immediate significant changes that would elevate the risk level beyond medium.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First Business Financial Services' performance and outlook for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 2023 — Reporting Year (Primary fiscal year covered)
• 6022 — SIC Code (Industry classification)

Key Players & Entities

• FIRST BUSINESS FINANCIAL SERVICES, INC. (company) — Filer name
• FBIZ (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 6022 (industry_code) — Standard Industrial Classification
• WI (location) — State of incorporation
• 401 CHARMANY DRIVE (address) — Business street address
• MADISON (location) — Business city

FAQ

Industry Context

First Business Financial Services, Inc. operates within the commercial banking sector, as indicated by its SIC code 6022. This sector is subject to various regulatory requirements and market dynamics.

Regulatory Implications

As a commercial bank, First Business Financial Services, Inc. is subject to regulations from federal and state authorities, including those related to capital adequacy, lending practices, and consumer protection.

What Investors Should Do

1. Analyze the financial statements for revenue trends, net income, and EPS for FY2023.
2. Examine the risk factors section for any new or evolving risks impacting the company.
3. Compare key financial metrics (e.g., debt/equity, cash) to prior years to identify significant changes.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing updated financial and operational data compared to previous filings. Specific year-over-year comparisons will be detailed within the report itself.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value FBIZ The Nasdaq Stock Market
• $3.508 b — solidated basis, we had total assets of $3.508 billion, total gross loans and leases of
• $2.850 b — illion, total gross loans and leases of $2.850 billion, total deposits of $2.797 billion
• $2.797 b — es of $2.850 billion, total deposits of $2.797 billion, and total stockholders' equity o
• $289.6 million — lion, and total stockholders' equity of $289.6 million. Commercial Banking Products and Serv
• $150 million — o businesses with annual sales of up to $150 million. Through FBB, we service South Central
• $2 million — g relationships generally range between $2 million and $18 million with terms of 24 to 60
• $18 million — generally range between $2 million and $18 million with terms of 24 to 60 months. Asset-ba
• $25,000 — hese financings generally range between $25,000 and $1 million with terms of 36 to 84 m
• $1 million — ngs generally range between $25,000 and $1 million with terms of 36 to 84 months. Our Equ
• $500,000 — floorplan programs generally range from $500,000 to $10 million for larger, well-establi
• $10 million — ograms generally range from $500,000 to $10 million for larger, well-established independen
• $395.9 million — eturn. As of December 31, 2023, FBB had $395.9 million of company retirement plan assets under
• $2.726 billion — ssets. As of December 31, 2023, FBB had $2.726 billion of private wealth assets under manageme
• $2.799 b — le of $2.850 billion, total deposits of $2.799 billion, and total stockholders' equity o

Filing Documents

• fbiz-20231231.htm (10-K) — 5287KB
• fbiz20231231exhibit42.htm (EX-4.2) — 30KB
• fbiz20231231exhibit21.htm (EX-21) — 5KB
• fbiz20231231exhibit23.htm (EX-23) — 2KB
• fbiz20231231exhibit311.htm (EX-31.1) — 10KB
• fbiz20231231exhibit312.htm (EX-31.2) — 10KB
• fbiz20231231exhibit32.htm (EX-32) — 6KB
• fbiz20231231exhibit97.htm (EX-97) — 34KB
• fbiz-20231231_g1.jpg (GRAPHIC) — 105KB
• 0001521951-24-000020.txt (&nbsp;) — 25022KB
• fbiz-20231231.xsd (EX-101.SCH) — 120KB
• fbiz-20231231_cal.xml (EX-101.CAL) — 176KB
• fbiz-20231231_def.xml (EX-101.DEF) — 476KB
• fbiz-20231231_lab.xml (EX-101.LAB) — 1253KB
• fbiz-20231231_pre.xml (EX-101.PRE) — 883KB
• fbiz-20231231_htm.xml (XML) — 6119KB

Risk Factors

Item 1A. Risk Factors 17

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29 I tem 1C. Cyber security 29

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 PART II 32

Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 32

[Reserved]

Item 6. [Reserved] 34

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 62

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 63

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 126

Controls and Procedures

Item 9A. Controls and Procedures 126

Other Information

Item 9B. Other Information 127

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 127 PART III 127

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 127

Executive Compensation

Item 11. Executive Compensation 127

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 127

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 128

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 128 PART IV 129

Exhibits and Financial Statements Schedules

Item 15. Exhibits and Financial Statements Schedules 129

Form 10-K Summary

Item 16. Form 10-K Summary 130

Signatures

Signatures 131 Table of Contents PART I.

BUSINESS

BUSINESS General First Business Financial Services, Inc. (together with all of its subsidiaries, collectively referred to as the "Corporation," "FBFS," "we," "us," or "our") is a registered bank holding company originally incorporated in 1986 under the laws of the State of Wisconsin and is engaged in the commercial banking business through its wholly-owned bank subsidiary, First Business Bank (collectively with its subsidiaries "FBB" or the "Bank"), headquartered in Madison, Wisconsin. All of our operations are conducted through FBB and its wholly-owned subsidiary First Business Specialty Finance, LLC ("FBSF"). The Bank operates as a business bank, delivering a full line of commercial banking products and services tailored to meet the specific needs of small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. Our products and services are focused on business banking, private wealth, and bank consulting. Within business banking, we offer commercial real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, Small Business Administration ("SBA") lending and servicing, treasury management solutions, and company retirement services. Our private wealth management services include trust and estate administration, financial planning, investment management, and private banking. Our bank consulting experts provide investment portfolio administrative services, and asset liability management services. We do not utilize a branch network to attract retail clients. Our operating model is predicated on deep client relationships, financial expertise, and an efficient, centralized administration function delivering best in class client satisfaction. Our focused model allows experienced staff to provide the level of financial expertise needed to develop and maintain long-term relationships with our clients. We conduct our

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