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Profile: First Business Financial Services Inc (FBIZ.O)

FBIZ.O on Nasdaq

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First Business Financial Services, Inc. (FBFS), incorporated on December 26, 1986, is a bank holding company. The Company engages in the commercial banking business through its bank subsidiaries, which include First Business Bank (FBB), First Business Bank-Milwaukee (FBB-Milwaukee) and Alterra Bank (Alterra) (FBB and FBB-Milwaukee and, together with FBB, the Banks). The operations of FBFS are conducted through the Banks and certain subsidiaries of FBB. The Banks operate as business banks focusing on delivering a line of commercial banking products, including commercial loans and commercial real estate loans, and services to meet the needs of small- and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The Company's business lines include commercial lending, asset-based financing, equipment financing, small business administration (SBA) lending, treasury management services, and trust and investment services. FBB's subsidiaries include Rimrock Road Investment Fund, LLC (Rimrock) and First Madison Investment Corp. (FMIC). FBFS has total gross loans and leases of approximately $1.435 billion and total deposits of approximately $1.577 billion. FBB has total gross loans and leases of approximately $1.036 billion and total deposits of approximately $1.124 billion. FBB-Milwaukee has total gross loans of approximately $144.9 million and total deposits of approximately $236.9 million. Alterra has total gross loans of approximately $253.9 million and total deposits of approximately $262.7. The Company's subsidiary, FBFS Statutory Trust II (Trust II) is a business trust.

The Company's investments include short-term investments and securities. The Company's short-term investments are approximately $98.9 million. The Company's short-term investments consist of interest-bearing deposits held at the Federal Reserve Bank (FRB). Its total securities include available-for-sale and held-to-maturity, which are approximately $177.8 million. Its investment portfolio consists of collateralized mortgage obligations and agency obligations. Its loans and leases receivable are approximately $1.417 billion. The Company's loan portfolio includes commercial real estate loans, commercial and industrial loans, leases, and consumer and other loans. The Company's commercial real estate loans include owner-occupied; non-owner occupied; construction and land development; multi-family and one- to four-family.

Commercial Lending

The Company provides commercial-lending services to small- to medium-sized companies in market areas of Wisconsin, Kansas and Missouri, primarily through lines of credit for working capital needs and term loans to businesses. The Company's commercial loans are secured by various types of business assets, including inventory, receivables and equipment. The Company also originates loans secured by commercial real estate, including non-residential owner-occupied commercial facilities, multi-family housing, office buildings, retail centers and commercial real estate construction loans. The Company's commercial real estate and commercial loans, excluding asset-based lending and equipment financing, represents approximately 82.8% of its total gross loans and leases receivable.

Asset-Based Financing

First Business Capital Corp. (FBCC), a subsidiary of FBB, is focused on asset-based lending to small- to medium-sized companies. FBCC primarily provides revolving lines of credit and term loans for financial and strategic acquisitions, capital expenditures, working capital to support rapid growth, bank debt refinancing, debt restructuring, corporate turnaround strategies and debtor-in-possession financing in the course of bankruptcy proceedings or the exit therefrom. FBCC provides financing solutions to a range of companies. The Company's asset-based lending business line represents approximately 11.3% of its total gross loans and leases receivable.

First Business Factors (FBF), a division of FBCC, provides funding to clients by purchasing accounts receivable from them on a full recourse basis. The Company's factored receivable financing business line represents approximately 1% of its total gross loans and leases receivable.

Equipment Financing

First Business Equipment Finance, LLC (FBEF), a subsidiary of FBB, delivers a range of equipment finance products, including leases and loans, to address the financing needs of commercial clients in a range of industries. FBEF's focus includes manufacturing equipment, industrial assets, and construction and transportation equipment, in addition to a range of other commercial equipment. The Company's equipment financing business line represents approximately 3.3% of its total gross loans and leases receivable.

Small Business Administration Lending

Alterra is an SBA lender. The SBA guarantees loans originated by lenders to small business borrowers that meet its underwriting guidelines. The SBA provides a guaranty to the lender ranging from 50% to 90% of principal and interest as an inducement to the lender to originate the loan. The majority of the Company's SBA loans are originated using the 7(a) term loan program. This program provides a guaranty of 75% of principal and interest. The Company focuses on gathering deposits from and providing other services to these clients. Alterra sells the guaranteed portion of its SBA loans to aggregators who securitize the assets for sale in the secondary market and receives a premium on each loan sold, resulting in the recognition of a gain in the period of sale. Alterra receives servicing income from the holder of the securitized asset.

Treasury Management Services

The Banks provide services for commercial clients to manage their cash and liquidity, including lockbox, accounts receivable collection services, electronic payment solutions, fraud protection, information reporting, reconciliation and data integration solutions. The Banks also offer deposit accounts and balance optimization solutions.

Trust and Investment Services

FBB, through its First Business Trust & Investments (FBTI) division, acts as fiduciary and investment manager for individual and corporate clients by creating and executing asset allocation strategies for clients. FBTI has fiduciary powers and offers trust, estate, financial planning and investment services, acting in a trustee or agent capacity, as well as Employee Benefit/Retirement Plan services. FBTI also provides brokerage and custody-only services, for which it administers and safeguards assets.

Company Address

First Business Financial Services Inc

401 Charmany Dr
MADISON   WI   53719-1272
P: +1608.2388008
F: +1608.2325920

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