First Business Bank Announces 15% Increase in Quarterly Common Stock Dividend and $5 Million Buyback Program

Rhea-AI Summary

First Business Financial Services, Inc. (NASDAQ: FBIZ) has declared a quarterly cash dividend of $0.2275 per share, reflecting a 15% increase from October 2022 and a dividend yield of 2.72%.

This dividend, representing a 19% payout ratio based on Q4 2022 earnings, is payable on February 16, 2023. In addition, the board authorized a $5.0 million share repurchase program effective January 27, 2023, to be completed by January 31, 2024. CEO Corey Chambas emphasized the dividend increase signifies robust earnings growth and ongoing investment in the company.

Positive

• 15% increase in quarterly dividend signifies strong earnings growth.
• Ongoing share repurchase program may enhance shareholder value.

Negative

• None.

MADISON, Wis.--(BUSINESS WIRE)-- First Business Financial Services, Inc. (the “Company” or “First Business Bank”) (Nasdaq: FBIZ) announced its board of directors has declared a quarterly cash dividend on its common stock of $0.2275 per share which is equivalent to a dividend yield of 2.72% based on Thursday’s market close price of $33.42. The quarterly dividend represents a 15% increase over the quarterly dividend declared in October 2022, and, based on fourth quarter 2022 earnings per share, represents a dividend payout ratio of 19%. This regular cash dividend is payable on February 16, 2023, to shareholders of record at the close of business on February 6, 2023.

“First Business Bank's 15% common dividend increase reflects the Company’s high-quality earnings growth and favorable outlook,” said Chief Executive Officer Corey Chambas. “This substantial increase marks our 11th consecutive annual dividend raise. We are pleased to provide an enhanced return to our shareholders while maintaining a dividend payout ratio that allows for the ongoing and significant investment in talent, technology, and products that power our business growth engine.”

The board of directors also declared a dividend on the Company’s 7% Series A Preferred Stock of $17.50 per share, payable on March 15, 2023, to shareholders of record on February 28, 2023.

Share Repurchase Authorization

Effective January 27, 2023, the Company’s board of directors authorized the repurchase by the Company of shares of its common stock with a maximum aggregate purchase price of $5.0 million, in such quantities, at such prices, and on such other terms and conditions as the Company’s Chief Executive Officer or Chief Financial Officer determine in their discretion to be in the best interests of the Company and its shareholders, any time from the effective date through January 31, 2024.

About First Business Bank

First Business Bank specializes in Business Banking, including Commercial Banking and Specialty Finance, Private Wealth, and Bank Consulting Services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty Finance solutions are delivered through First Business Bank’s wholly owned subsidiary First Business Specialty Finance, LLC. First Business Bank is a wholly owned subsidiary of First Business Financial Services, Inc. (Nasdaq: FBIZ). For additional information, visit firstbusiness.bank.

This press release includes “forward-looking” statements related to First Business Financial Services, Inc. that can generally be identified as describing the Company’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company’s future results, please see the Company’s 2021 annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005408/en/

Edward G. Sloane, Jr.

Chief Financial Officer

First Business Financial Services, Inc.

608-232-5970

esloane@firstbusiness.bank

Source: First Business Financial Services, Inc.

FAQ

What is the new dividend amount for FBIZ?

The new quarterly dividend amount is $0.2275 per share.

What is the dividend yield for FBIZ based on the recent announcement?

The dividend yield is 2.72% based on the closing price of $33.42.

What does the 15% increase in dividend indicate for First Business Financial Services?

The 15% increase reflects strong earnings growth and a positive outlook.

What is the total amount authorized for share repurchases by FBIZ?

The board authorized a share repurchase program with a maximum amount of $5.0 million.

When is the dividend payable to shareholders?

The dividend is payable on February 16, 2023, to shareholders of record on February 6, 2023.