WISCONSIN
|
39-1576570 | |
|
||
(State or jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.) | |
|
||
401 Charmany Drive Madison, WI
|
53719 | |
|
||
(Address of Principal Executive
Offices)
|
(Zip Code) |
Common Stock, $0.01 par value
|
The Nasdaq Global Market | |
Common Share Purchase Rights
|
The Nasdaq Global Market |
Large accelerated
filer
o
|
Accelerated filer o | |||
Non-accelerated
filer
o
|
(Do not check if a smaller reporting company) | Smaller Reporting Company þ |
Item 1.
Business
1
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2
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Capital Purchase Program (CPP).
Pursuant to
this program, the UST, on behalf of the U.S. government,
will purchase preferred stock, along with warrants to purchase
common stock, from certain financial institutions, including
bank holding companies, savings and loan holding companies and
banks or savings associations not controlled by a holding
company. The investment will have a dividend rate of 5% per
year, until the fifth anniversary of the USTs investment
and a dividend rate of 9% thereafter.
During the time the UST holds securities issued pursuant to this
program, participating financial institutions will be required
to comply with certain provisions regarding executive
compensation and corporate governance. Participation in this
program also imposes certain restrictions upon an
institutions dividends to common shareholders and stock
repurchase activities. We have received preliminary approval
from the UST to participate in this program and we are in the
process of determining whether we will participate in the
program. Refer to
Item 7 Managements
Discussion and Analysis of Financial Condition and Results of
Operations Liquidity and Capital Resources
for
further discussion.
Temporary Liquidity Guarantee Program.
This
program contained both (i) a debt guarantee component,
whereby FDIC will guarantee until June 30, 2012, the senior
unsecured debt issued by eligible financial institutions between
October 14, 2008 and June 30, 2009; and (ii) an
account transaction guarantee component, whereby the FDIC will
insure 100% of non-interest bearing deposit transaction accounts
held at eligible financial institutions through
December 31, 2009. We elected to participate in this
program.
Temporary increase in deposit insurance
coverage.
Pursuant to EESA, the FDIC temporarily
raised the basic limit on federal deposit insurance coverage
from $100,000 to $250,000 per depositor. The EESA provides that
the basic deposit insurance limit will return to $100,000 after
December 31, 2009.
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Minimum Required to
be Well Capitalized
Minimum Required
Under Prompt
for Capital Adequacy
Corrective Action
Actual
Purposes
Requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
(In thousands)
$
109,603
12.00
%
$
73,088
8.00
%
N/A
N/A
91,062
11.13
65,448
8.00
$
81,810
10.00
%
14,590
15.13
7,714
8.00
9,642
10.00
$
59,178
6.48
%
$
36,544
4.00
%
N/A
N/A
80,880
9.89
32,724
4.00
$
49,086
6.00
%
13,375
13.87
3,857
4.00
5,785
6.00
$
59,178
5.94
%
$
39,819
4.00
%
N/A
N/A
80,880
9.23
35,064
4.00
$
43,830
5.00
%
13,375
10.61
5,042
4.00
6,302
5.00
Minimum Required to
be Well Capitalized
Minimum Required
Under Prompt
for Capital Adequacy
Corrective Action
Actual
Purposes
Requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
(In thousands)
$
87,018
10.22
%
$
68,119
8.00
%
N/A
N/A
79,072
10.45
60,528
8.00
$
75,660
10.00
%
9,847
10.26
7,679
8.00
9,599
10.00
$
46,164
5.42
%
$
34,060
4.00
%
N/A
N/A
71,097
9.40
30,264
4.00
$
45,396
6.00
%
8,639
9.00
3,840
4.00
5,759
6.00
$
46,164
5.12
%
$
36,065
4.00
%
N/A
N/A
71,097
9.04
31,459
4.00
$
39,324
5.00
%
8,639
7.39
4,678
4.00
5,848
5.00
6
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Total Capital to Risk
Tier 1 Capital to
Category
Weighted Assets
Risk Weighted Assets
Tier 1 Leverage Ratio
³
10
%
³
6
%
³
5
%
³
8
%
³
4
%
³
4
%*
< 8
%
< 4
%
< 4
%*
< 6
%
< 3
%
< 3
%
Ratio of tangible equity to total assets
£
2
%
*
3% if the Banks receive the highest rating under the uniform
system.
7
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8
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10
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Item 1A.
Risk
Factors
11
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current economic conditions and their estimated effects on
specific borrowers and collateral values;
an evaluation of the existing relationships among loans and
leases, probable loan and lease losses and the present level of
the allowance for loan and lease losses;
results of examinations of our loan and lease portfolios by
regulatory agencies; and
managements internal review of the loan and lease
portfolios.
12
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14
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limited research analysis performed on our Corporation;
operating results and stock price performance of other companies
that investors deem comparable to us;
news reports relating to trends, concerns and other issues in
the financial services industry;
perceptions in the marketplace regarding us
and/or
our
competitors; and
changes in government regulations.
Item 1b.
Unresolved
Staff Comments
Item 2.
Properties
Location
Function
Expiration Date
Full service banking location of First Business Bank and office
of First Business Financial Services, Inc.
2016
Full service banking location of First Business Bank - Milwaukee
2010
Loan production office of First Business Bank
2017
Loan production office of First Business Bank
2017
Item 3.
Legal
Proceedings
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Item 4.
Submission
of Matters to a Vote of Security Holders
Number of Shares
For
Against
Abstained
Withheld
Non-Votes
1,480,608
576,429
8,900
1,556,163
499,438
10,336
16
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Item 5.
Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
Dividend
High
Low
Declared
$
17.94
$
15.90
$
0.07
19.64
15.53
0.07
17.48
14.01
0.07
17.25
13.00
0.07
$
22.67
$
21.26
$
0.065
22.50
19.80
0.065
20.93
17.70
0.065
19.05
17.50
0.065
Equity Compensation Plan Information
Number of Securities
Remaining Available for
Future Issuance Under
Number of Securities to
Weighted-Average
Equity Compensation
be Issued Upon Exercise
Exercise Price of
Plans (Excluding
of Outstanding Options,
Outstanding Options,
Securities Reflected in
Plan Category
Warrants, and Rights.
Column (a))
(a)
(b)
(c)
157,290
$
22.01
116,694
17
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Issuer Purchases of Securities
Approximate
Total Number of
Dollar Value of
Shares Purchased
Shares that May
as Part of Publicly
Yet Be Purchased
Total Number of
Average Price Paid
Announced Plans
Under the Plans or
Shares Purchased
Per Share
or Programs
Programs
-
-
-
$
177,150
-
-
-
177,150
-
-
-
177,150
18
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Item 6.
Selected
Consolidated Financial Data
As of and For the Year Ended December 31,
2008
2007
2006
(Dollars In Thousands, Except Share Data)
$
59,773
$
59,488
$
47,660
33,515
36,280
28,689
26,258
23,208
18,971
4,299
2,904
1,519
5,137
4,416
3,674
20,873
19,657
15,698
1,043
-
-
2,056
1,807
1,681
$
3,124
$
3,256
$
3,747
6.39
%
7.36
%
7.21
%
3.89
4.91
4.77
2.50
2.45
2.44
2.81
2.87
2.87
0.32
0.39
0.54
6.11
6.86
8.65
$
1,010,786
$
918,438
$
788,323
109,124
97,378
100,008
840,546
771,633
639,867
838,874
776,060
640,266
94,526
81,986
92,970
10,315
-
-
53,006
48,552
45,756
1.39
%
1.26
%
1.28
%
72.75
111.17
748.06
0.28
0.19
-
1.91
1.13
0.17
5.27
5.64
6.26
$
1.29
$
1.33
$
1.53
1.28
1.32
1.52
20.82
19.35
18.36
0.28
0.26
0.24
21.71
%
19.55
%
15.68
%
2,545,546
2,509,213
2,493,578
19
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Item 7.
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
20
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Our total assets increased to $1.0 billion as of
December 31, 2008, a 10.1% increase as compared to
$918.4 million at December 31, 2007. The asset growth
was primarily due to increases in our loan and lease portfolio
assets.
Net income for the year was $3.1 million compared to
$3.3 million in 2007.
During 2008, our return on average equity was 6.11% compared to
6.86% in 2007.
Top line revenue increased 13.7% to $31.4 million compared
to $27.6 million in 2007.
Our net interest margin decreased slightly to 2.81% as compared
to 2.87% in 2007.
Many types of corporate entities, including certain activities
of foreign entities, financial institutions and domestic
insurance companies, are included in the combined group;
21
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A greater than fifty percent direct or indirect ownership test
applies for determining which corporate entities are included in
the combined group;
The definition of a unitary business is construed as
broadly as permitted under the U.S. Constitution and there
is a presumption that a unitary business exists if certain
factors such as centralized management,
intercorporate debts, or intercorporate services are
present;
Only specified losses (e.g., losses generated when included in a
combined report) may be shared amongst members of the combined
group; and
Members of combined group shall be jointly and severally liable
for costs, penalties, interest and taxes associated with the
combined report.
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Comparison
of the Years Ended December 31, 2008 and 2007
For the Year Ended
December 31,
2008
2007
Change
(In Thousands)
$
26,258
$
23,208
13.1
%
5,137
4,416
16.3
$
31,395
$
27,624
13.7
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For the Year Ended
December 31,
2008
2007
Change
$
3,124
$
3,256
(4.1
)%
2,613
1,765
48.0
1,402
818
71.4
$
4,335
$
4,203
3.1
26
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Increase (Decrease) For the Year Ended December 31,
2008 Compared to 2007
Rate/
Rate
Volume
Volume
Net
(In Thousands)
$
(4,767
)
$
4,854
$
(660
)
$
(568
)
(2,843
)
2,459
(383
)
(772
)
(6
)
258
(1
)
251
(32
)
1,246
(198
)
1,016
(7,648
)
8,817
(1,242
)
(73
)
80
439
8
527
3
(50
)
(3
)
(50
)
(45
)
3
(3
)
(45
)
(30
)
7
(4
)
(27
)
(62
)
38
(23
)
(47
)
(7,702
)
9,254
(1,267
)
285
(1,755
)
(173
)
107
(1,821
)
(4,631
)
(978
)
588
(5,021
)
(1,183
)
5,175
(316
)
3,676
(701
)
1,161
(321
)
139
(8,270
)
5,185
58
(3,027
)
296
296
(296
)
296
(136
)
295
(32
)
127
(791
)
910
(280
)
(161
)
(8,901
)
6,686
(550
)
(2,765
)
$
1,199
$
2,568
$
(717
)
$
3,050
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28
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For the Year Ended December 31,
2008
2007
Average
Average
Average
Yield/
Average
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
(Dollars in Thousands)
$
547,177
$
34,739
6.35
%
$
481,039
$
35,307
7.34
%
227,795
17,228
7.56
200,414
18,000
8.98
28,398
1,803
6.35
24,346
1,552
6.37
22,648
1,214
5.36
3,106
198
6.37
826,018
54,984
6.66
708,905
55,057
7.77
101,787
4,694
4.61
92,094
4,167
4.52
261
10
3.83
1,640
60
3.66
2,367
-
-
2,230
45
2.02
1,267
29
2.29
1,118
56
5.01
3,030
56
1.85
2,212
103
4.66
934,730
59,773
6.39
808,199
59,488
7.36
34,630
32,539
$
969,360
$
840,738
$
63,089
1,017
1.61
$
67,189
2,838
4.22
149,727
2,678
1.79
171,508
7,699
4.49
491,540
23,061
4.69
387,974
19,385
5.00
72,924
2,675
3.67
50,025
2,536
5.07
777,280
29,431
3.79
676,696
32,458
4.80
2,734
296
10.83
-
-
-
31,840
1,383
4.34
25,776
1,256
4.87
49,585
2,405
4.85
36,605
2,566
7.01
861,439
33,515
3.89
739,077
36,280
4.91
56,817
54,204
918,256
793,281
51,104
47,457
$
969,360
$
840,738
$
26,258
2.50
%
$
23,208
2.45
%
$
73,291
$
69,122
2.81
%
2.87
%
108.51
%
109.35
%
0.32
0.39
6.11
6.86
5.27
5.64
2.26
2.34
(1)
The average balances of loans and leases include non-performing
loans and leases. Interest income related to non-performing
loans and leases is recognized when collected.
(2)
Includes amortized cost of basis of assets held and available
for sale.
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30
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December 31,
2008
32
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As of December 31,
2008
2007
Amortized
Amortized
Cost
Fair Value
Cost
Fair Value
(In Thousands)
$
-
$
-
$
1,500
$
1,497
-
-
85
85
81,406
82,859
52,755
52,658
26,090
26,265
43,631
43,138
$
107,496
$
109,124
$
97,971
$
97,378
Less than One Year
One to Five Years
Five to Ten Years
Over Ten Years
Weighted
Weighted
Weighted
Weighted
Average
Average
Average
Average
Balance
Yield
Balance
Yield
Balance
Yield
Balance
Yield
Total
(In Thousands)
$
-
-
$
1,171
5.14
%
$
539
5.26
%
$
81,149
4.93
%
$
82,859
-
-
1,055
3.83
14,138
4.15
11,072
4.33
26,265
$
-
$
2,226
$
14,677
$
92,221
$
109,124
33
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continued growth from our loan production offices as we continue
to penetrate and expand our market presence in the Northeast
Region of Wisconsin, approximately $24.6 million;
continued business development efforts from our existing sales
force within our Madison, Wisconsin and Milwaukee, Wisconsin
market areas, approximately $21.6 million; and
increased commercial and industrial loans originated by our
asset-based lending subsidiary, approximately $22.6 million.
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As of December 31,
2008
2007
2006
Percent
Percent
Percent
Amount
of Total
Amount
of Total
Amount
of Total
(In Thousands)
$
390,094
45.74
%
$
336,153
43.01
%
$
274,262
42.30
%
84,778
9.94
90,545
11.58
78,257
12.07
42,514
4.99
41,821
5.35
34,635
5.34
51,542
6.04
48,437
6.20
35,721
5.51
568,928
66.71
516,956
66.14
422,875
65.22
151,947
17.82
147,856
18.92
125,256
19.32
80,403
9.43
65,930
8.43
51,445
7.93
29,722
3.48
29,383
3.76
23,203
3.58
262,072
30.73
243,169
31.11
199,904
30.83
7,386
0.87
9,784
1.25
8,859
1.37
855
0.10
854
0.11
785
0.12
1,254
0.15
1,147
0.15
1,248
0.19
12,336
1.44
9,724
1.24
14,679
2.27
21,831
2.56
21,509
2.75
25,571
3.95
852,831
100.00
%
781,634
100.00
%
648,350
100.00
%
(11,846
)
(9,854
)
(8,296
)
(439
)
(147
)
(187
)
$
840,546
$
771,633
$
639,867
Commercial
Construction,
and Industrial
Commercial
Multi-Family,
and Asset-
Lease
Consumer and
Real Estate
1-4 Family
Based
Receivables
other
Total
(In Thousands)
$
83,867
$
97,148
$
94,001
$
906
$
13,666
$
289,588
244,174
78,859
136,513
23,874
8,165
491,585
62,053
2,827
1,836
4,942
-
71,658
$
390,094
$
178,834
$
232,350
$
29,722
$
21,831
$
852,831
$
235,928
$
68,311
$
63,437
$
28,816
$
8,081
$
404,573
$
70,299
$
13,375
$
74,912
$
-
$
85
$
158,671
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As of December 31,
2008
2007
2006
% of
% of
% of
Gross
Gross
Gross
Loans and
Loans and
Loans and
Balance
Leases
Balance
Leases
Balance
Leases
(In Thousands)
$
2,512
0.29
%
$
621
0.08
%
$
5,860
0.90
%
175
0.02
85
0.01
-
0.00
4,316
0.51
2,487
0.32
455
0.07
$
7,003
0.82
%
$
3,193
0.41
%
$
6,315
0.97
%
(1)
Includes loans and leases contractually 90 days past due
and which have been placed on non-accrual status.
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As of December 31,
2008
2007
2006
(In Thousands)
$
2,979
$
-
$
-
5,279
1,783
-
-
4,995
-
2,082
424
-
10,340
7,202
-
5,412
628
586
24
59
-
509
975
523
16,285
8,864
1,109
3,011
660
-
$
19,296
9,524
$
1,109
$
-
$
-
$
-
1.91
%
1.13
%
0.17
%
1.91
%
1.04
0.14
1.39
%
1.26
1.28
72.74
111.17
748.06
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As of December 31,
2008
2007
(In Thousands)
$
9,986
$
6,500
6,299
2,617
16,285
9,117
1,417
834
$
14,868
$
8,283
$
8,375
$
3,439
$
752
$
365
(49
)
(41
)
$
703
$
324
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40
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Year Ended December 31,
2008
2007
2006
(In Thousands)
$
9,854
$
8,296
$
6,773
(1,194
)
(571
)
-
(1,202
)
(778
)
-
-
(25
)
-
-
-
-
(2,396
)
(1,374
)
-
89
5
4
-
23
-
-
-
-
-
-
-
89
28
4
(2,307
)
(1,346
)
4
4,299
2,904
1,519
$
11,846
$
9,854
$
8,296
1.39
%
1.26
%
1.28
%
41
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As of December 31,
2008
2007
2006
Allowance
Percent of
Allowance
Percent of
Allowance
Percent of
for Loan
Loans in
for Loan
Loans in
for Loan
Loans in
and Lease
Each Category
and Lease
Each Category
and Lease
Each Category
Loss
to Total Loans
Loss
to Total Loans
Loss
to Total Loans
(In Thousands)
$
4,709
45.74
%
$
3,858
43.01
%
$
2,998
42.30
%
1,358
9.94
1,328
11.58
826
12.07
513
4.99
423
5.35
340
5.34
607
6.04
557
6.20
369
5.51
3,984
27.25
3,042
27.35
3,115
27.25
330
3.48
355
3.76
380
3.58
345
2.56
291
2.75
268
3.95
$
11,846
100.00
%
$
9,854
100.00
%
$
8,296
100.00
%
42
Table of Contents
Over Six
Over Three
Months
Months
Through
Three Months
Through
Twelve
Over Twelve
and Less
Six Months
Months
Months
Total
(In Thousands)
$
2,292
$
574
$
306
$
-
$
3,172
24,890
12,691
4,545
36
42,162
59,413
53,708
71,534
35,427
220,082
266
20,201
36,815
145,416
202,698
10,615
16,914
5,667
82,263
115,459
$
97,476
$
104,088
$
118,867
$
263,142
$
583,573
As of December 31,
2008
2007
Weighted
Weighted
Weighted
Weighted
Average
Average
Average
Average
Balance
Balance
Rate
Balance
Balance
Rate
(In Thousands)
$
22,000
$
12,888
2.38
%
$
14,250
$
10,394
5.35
%
33,516
31,840
4.34
34,526
25,776
4.87
10,315
2,734
10.83
-
-
-
10
1,461
4.87
2,210
2,556
7.20
39,000
35,570
5.70
31,000
23,630
7.73
-
-
-
-
25
7.00
$
104,841
$
84,493
4.83
$
81,986
$
62,381
6.13
$
37,015
$
32,470
67,826
49,516
$
104,841
$
81,986
43
Table of Contents
Year Ended December 31,
2008
2007
(In Thousands)
$
43,519
$
34,529
22,000
30,970
44
Table of Contents
45
Table of Contents
46
Table of Contents
Payments Due by Period
Less Than 1
More Than
Total
Year
1-3 Years
4-5 Years
5 Years
(In Thousands)
$
5,236
$
897
$
1,387
$
1,263
$
1,689
22,000
22,000
-
-
-
583,573
320,431
244,477
18,665
-
10
10
-
-
-
10,315
-
-
-
10,315
39,000
-
-
-
39,000
33,516
15,011
18,023
482
-
-
-
-
-
-
$
693,650
$
358,349
$
263,887
$
20,410
$
51,004
(1)
The contractual obligations table excludes the
Corporations uncertain tax payments of $2.4 million
due to the fact the we cannot make a reliable estimate of the
timing of cash payments.
Item 7A.
Quantitative
and Qualitative Disclosures about Market Risk
47
Table of Contents
Change in interest rates in basis points
(1.74
)%
-
0.58
%
(0.51
)%
(3.47
)%
48
Table of Contents
Estimated Maturity or Repricing at December 31, 2008
Within
3-12
1-5
After 5
3 Months
Months
Years
Years
Total
(In Thousands)
$
7,440
$
32,769
$
66,105
$
2,811
$
109,124
80,097
19,733
64,305
132
164,268
201,219
56,589
243,520
47,450
548,778
100,443
-
-
-
100,443
1,128
6,021
22,597
-
29,746
1,334
776
100
73
2,283
$
391,661
$
115,888
$
396,627
$
50,466
$
954,642
$
51,547
$
-
$
-
$
-
$
51,547
148,366
-
-
-
148,366
55,023
180,258
255,811
-
491,092
16,169
68,981
7,330
-
92,480
-
-
18,516
-
18,516
37,010
-
-
-
37,010
39,000
-
-
10,315
49,315
(233
)
233
-
-
-
$
346,882
$
249,472
$
281,657
$
10,315
$
888,326
$
44,779
$
(133,584
)
$
114,970
$
40,151
$
66,316
$
44,779
$
(88,805
)
$
26,165
$
66,316
4.69
%
(9.30
)%
2.74
%
6.95
%
49
Table of Contents
Item 8.
Financial
Statements and Supplementary Data
Page No.
51
52
53
54
55
86
50
Table of Contents
December 31,
2008
2007
(In Thousands, Except Share Data)
$
19,216
$
17,421
4,468
203
23,684
17,624
109,124
97,378
840,546
771,633
1,529
1,546
3,011
660
15,499
14,757
2,367
2,367
2,762
2,787
12,264
9,686
$
1,010,786
$
918,438
$
838,874
$
776,060
94,526
81,986
10,315
-
14,065
11,840
957,780
869,886
-
-
-
-
26
26
24,088
23,462
29,252
26,836
1,065
(399
)
(1,425
)
(1,373
)
53,006
48,552
$
1,010,786
$
918,438
51
Table of Contents
For the Years Ended December 31,
2008
2007
(In Thousands, Except Share Data)
$
54,984
$
55,057
4,704
4,227
85
204
59,773
59,488
29,431
32,458
3,788
3,822
296
-
33,515
36,280
26,258
23,208
4,299
2,904
21,959
20,304
1,956
1,914
1,100
715
742
697
636
630
220
210
483
250
5,137
4,416
12,422
12,121
1,331
1,040
648
497
985
1,054
970
1,076
1,716
1,411
1,043
-
2,801
2,458
21,916
19,657
5,180
5,063
2,056
1,807
$
3,124
$
3,256
$
1.29
$
1.33
1.28
1.32
0.28
0.26
52
Table of Contents
Additional
Accumulated Other
Common
Paid-in
Retained
Comprehensive
Treasury
Stock
Capital
Earnings
(Loss) Income
Stock
Total
(In Thousands, Except Share Data)
$
25
$
23,029
$
24,237
$
(1,005
)
$
(530
)
$
45,756
-
-
3,256
-
-
3,256
-
-
-
936
-
936
-
-
-
(9
)
-
(9
)
-
-
-
4
-
4
-
-
-
(325
)
-
(325
)
3,862
1
396
-
-
-
397
-
-
(657
)
-
-
(657
)
-
-
-
-
(843
)
(843
)
-
37
-
-
-
37
$
26
$
23,462
$
26,836
$
(399
)
$
(1,373
)
$
48,552
-
-
3,124
-
-
3,124
-
-
-
2,221
-
2,221
-
-
-
(5
)
-
(5
)
-
-
-
13
-
13
-
-
-
(765
)
-
(765
)
4,588
-
626
-
-
-
626
-
-
(708
)
-
-
(708
)
-
-
-
-
(52
)
(52
)
$
26
$
24,088
$
29,252
$
1,065
$
(1,425
)
$
53,006
53
Table of Contents
For the Years Ended December 31,
2008
2007
(In Thousands)
$
3,124
$
3,256
(446
)
(392
)
4,299
2,904
538
475
626
397
(742
)
(697
)
(586
)
(1,340
)
588
1,346
(2
)
(6
)
1,043
-
(2,887
)
(339
)
2,214
2,492
7,769
8,096
28,280
22,045
(37,810
)
(18,523
)
-
(343
)
(77,330
)
(135,025
)
723
(496
)
(856
)
-
(591
)
(86,633
)
(133,293
)
62,814
135,794
15,000
(17,048
)
(66,010
)
(10
)
50,000
15,000
5,550
(18,926
)
(31,000
)
-
39,000
10,000
10,315
-
-
37
(693
)
(644
)
(52
)
(843
)
84,924
123,360
6,060
(1,837
)
17,624
19,461
$
23,684
$
17,624
$
32,723
$
34,363
1,928
2,495
4,117
660
54
Table of Contents
Note 1
Summary
of Significant Accounting Policies and Nature of
Operations
55
Table of Contents
56
Table of Contents
57
Table of Contents
58
Table of Contents
59
Table of Contents
60
Table of Contents
61
Table of Contents
Note 2
Shareholder
Rights Plan.
62
Table of Contents
Note 4
Securities
As of December 31, 2008
Gross
Gross
Amortized
Unrealized
Unrealized
Estimated
Cost
Holding Gains
Holding Losses
Fair Value
(In Thousands)
$
81,406
$
1,485
$
(32
)
$
82,859
26,090
179
(4
)
26,265
$
107,496
$
1,664
$
(36
)
$
109,124
As of December 31, 2007
Gross
Gross
Amortized
Unrealized
Unrealized
Estimated
Cost
Holding Gains
Holding Losses
Fair Value
(In Thousands)
$
1,500
$
-
$
(3
)
$
1,497
85
-
-
85
52,755
282
(379
)
52,658
43,631
2
(495
)
43,138
$
97,971
$
284
$
(877
)
$
97,378
Amortized
Estimated
Cost
Fair Value
(In Thousands)
$
-
$
-
2,180
2,226
14,585
14,677
90,731
92,221
$
107,496
$
109,124
63
Table of Contents
As of December 31, 2008
Less Than 12 Months
12 Months or Longer
Total
Unrealized
Unrealized
Unrealized
Fair Value
Losses
Fair Value
Losses
Fair Value
Losses
(In Thousands)
$
9,803
$
32
$
-
$
-
$
9,803
$
32
1,394
2
534
2
1,928
4
$
11,197
$
34
$
534
$
2
$
11,731
$
36
As of December 31, 2007
Less Than 12 Months
12 Months or Longer
Total
Unrealized
Unrealized
Unrealized
Fair Value
Losses
Fair Value
Losses
Fair Value
Losses
(In Thousands)
$
-
$
-
$
1,497
$
3
$
1,497
$
3
13,054
374
579
5
13,633
379
6,463
66
35,317
429
41,780
495
$
19,517
$
440
$
37,393
$
437
$
56,910
$
877
64
Table of Contents
Note 5
Loan and
Lease Receivables and Allowance for Loan and Lease
Losses
December 31,
2008
2007
(In Thousands)
$
390,094
$
336,153
84,778
90,545
42,514
41,821
51,542
48,437
568,928
516,956
232,350
213,786
29,722
29,383
7,386
9,784
14,445
11,725
852,831
781,634
11,846
9,854
439
147
$
840,546
$
771,633
Years Ended December 31,
2008
2007
(In Thousands)
$
9,854
$
8,296
(1,194
)
(571
)
(1,202
)
(778
)
-
(25
)
-
-
(2,396
)
(1,374
)
89
5
-
23
-
-
-
-
89
28
(2,307
)
(1,346
)
4,299
2,904
$
11,846
$
9,854
1.39
%
1.26
%
65
Table of Contents
Years Ended December 31,
2008
2007
(In Thousands)
$
16,261
$
8,864
24
-
16,285
8,864
3,011
660
$
19,296
$
9,524
$
-
$
-
1.91
%
1.13
%
1.91
1.04
72.74
111.17
As of December 31,
2008
2007
(In Thousands)
$
9,986
$
6,500
6,299
2,617
16,285
9,117
1,417
834
$
14,868
$
8,283
$
8,375
$
3,439
$
752
$
365
(49
)
(41
)
$
703
$
324
As of December 31,
2008
2007
(In Thousands)
$
26,740
$
27,572
7,293
6,642
154
236
(4,465
)
(5,067
)
$
29,722
$
29,383
66
Table of Contents
$
8,009
7,123
5,769
3,413
1,767
659
$
26,740
Note 6
Leasehold
Improvements and Equipment
As of December 31,
2008
2007
(In Thousands)
$
1,297
$
1,241
2,724
2,447
4,021
3,688
(2,492
)
(2,142
)
$
1,529
$
1,546
67
Table of Contents
Year Ended December 31,
2008
2007
(In Thousands)
$
145
$
145
(108
)
(95
)
$
37
$
50
$
(13
)
$
(18
)
$
120
$
120
(84
)
(72
)
36
$
48
$
(12
)
$
(12
)
Core Deposit
Other
Intangibles
Intangibles
Total
(In Thousands)
$
10
$
12
$
22
7
12
19
5
12
17
3
-
3
2
-
2
10
-
10
$
37
$
36
$
73
Note 8
Other
Assets
68
Table of Contents
As of December 31,
2008
2007
(In Thousands)
$
3,331
$
3,566
2,433
2,752
1,033
444
315
-
1,797
-
3,355
2,924
$
12,264
$
9,686
Note 9
Deposits
December 31, 2008
December 31, 2007
Weighted
Weighted
Average
Average
Balance
Rate
Balance
Rate
(In Thousands)
$
55,388
0.00
%
$
47,124
0.00
%
51,547
1.61
65,035
4.22
106,935
112,159
148,366
1.79
162,585
4.49
583,573
4.56
501,316
5.00
$
838,874
$
776,060
$
320,431
123,171
121,306
17,984
681
$
583,573
69
Table of Contents
Note 10
Borrowed
Funds
December 31, 2008
December 31, 2007
Weighted
Weighted
Weighted
Weighted
Average
Average
Average
Average
Balance
Balance
Rate
Balance
Balance
Rate
(In thousands)
$
22,000
$
12,888
2.38
%
$
14,250
$
10,394
5.35
%
33,516
31,840
4.34
34,526
25,776
4.87
10,315
2,734
10.83
-
-
-
10
1,461
4.87
2,210
2,556
7.20
39,000
35,570
5.70
31,000
23,630
7.73
-
-
-
-
25
7.00
$
104,841
$
84,493
4.83
$
81,986
$
62,381
6.13
$
37,015
$
32,470
67,826
49,516
$
104,841
$
81,986
$
15,000
16,000
2,000
-
516
-
$
33,516
70
Table of Contents
Note 11
Stockholders
Equity
71
Table of Contents
Minimum
Required to be
Well Capitalized
Under Prompt
Minimum
Corrective
Required for Capital
Action
Actual
Adequacy Purposes
Requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
(In Thousands)
$
109,603
12.00
%
$
73,088
8.00
%
N/A
N/A
91,062
11.13
65,448
8.00
$
81,810
10.00
%
14,590
15.13
7,714
8.00
9,642
10.00
$
59,178
6.48
$
36,544
4.00
%
N/A
N/A
80,880
9.89
32,724
4.00
$
49,086
6.00
%
13,375
13.87
3,857
4.00
5,785
6.00
$
59,178
5.94
$
39,819
4.00
%
N/A
N/A
80,880
9.23
35,064
4.00
$
43,830
5.00
%
13,375
10.61
5,042
4.00
6,302
5.00
Minimum
Required to be
Well Capitalized
Under Prompt
Minimum
Corrective
Required for
Action
Actual
Capital Adequacy Purposes
Requirements
Amount
Ratio
Amount
Ratio
Amount
Ratio
(In Thousands)
$
87,018
10.22
%
$
68,119
8.00
%
N/A
N/A
79,072
10.45
60,528
8.00
$
75,660
10.00
%
9,847
10.26
7,679
8.00
9,599
10.00
$
46,164
5.42
%
$
34,060
4.00
%
N/A
N/A
71,097
9.40
30,264
4.00
$
45,396
6.00
%
8,639
9.00
3,840
4.00
5,759
6.00
$
46,164
5.12
%
$
36,065
4.00
%
N/A
N/A
71,097
9.04
31,459
4.00
$
39,324
5.00
%
8,639
7.39
4,678
4.00
5,848
5.00
72
Table of Contents
As of December 31,
2008
2007
(In Thousands)
$
53,006
$
48,552
(3,828
)
(2,388
)
10,000
-
59,178
46,164
50,425
40,854
$
109,603
$
87,018
Note 12
Earnings
per Share
2008
2007
$
3,124,381
$
3,256,341
2,431,083
2,453,157
760
6,079
2,431,843
2,459,236
$
1.29
$
1.33
$
1.28
$
1.32
Note 13
Derivative
Financial Instruments
73
Table of Contents
Note 14
Equity
Incentive Plans
For the Years Ended December 31,
2008
2007
Weighted
Weighted
Options
Average Price
Options
Average Price
159,540
$
22.10
166,168
$
21.97
-
-
-
-
-
-
(3,128
)
11.91
(2,250
)
24.56
(3,500
)
24.71
157,290
22.07
159,540
22.10
154,290
140,637
74
Table of Contents
Options Outstanding
Exercisable
Weighted
Average
Weighted
Weighted
Remaining
Average
Average
Contractual
Exercise
Exercise
Shares
Life (Years)
Price
Shares
Price
9,984
5.04
15.33
9,984
15.33
18,356
2.54
19.08
18,356
19.08
69,450
4.16
22.00
69,450
22.00
59,500
5.87
24.20
56,500
24.16
157,290
154,290
2008
2007
Weighted
Weighted
Number of
Average
Number of
Average
Restricted
Grant-Date
Restricted
Grant-Date
Shares
Fair Value
Shares
Fair Value
91,379
21.16
45,125
$
23.08
40,950
16.00
61,885
20.12
(26,005
)
21.29
(11,274
)
23.08
(1,375
)
20.59
(4,357
)
21.37
104,949
19.12
91,379
21.16
Note 15
Employee
Benefit Plans
75
Table of Contents
Note 16
Leases
$
897
747
640
626
637
1,689
$
5,236
76
Table of Contents
Note 17
Income
Taxes
Year Ended December 31,
2008
2007
(In Thousands)
$
1,669
$
1,527
833
672
2,502
2,199
(199
)
(275
)
(247
)
(117
)
(446
)
(392
)
$
2,056
$
1,807
At December 31,
2008
2007
(In Thousands)
$
4,556
$
3,784
554
641
200
1
4
2,586
2,387
410
304
203
1,357
873
9,768
8,092
(1,275
)
(1,074
)
8,493
7,018
5,241
4,032
562
257
234
6,060
4,266
$
2,433
$
2,752
77
Table of Contents
At December 31,
2008
2007
(In Thousands)
$
319
$
(67
)
(765
)
(325
)
$
(446
)
$
(392
)
Year Ended December 31,
2008
2007
(In Thousands)
$
5,180
$
5,063
$
1,761
$
1,721
271
287
201
217
(48
)
(252
)
(237
)
116
73
35
(76
)
(206
)
$
2,056
$
1,807
39.69
%
35.69
%
78
Table of Contents
Year Ended December 31,
2008
2007
(In Thousands)
$
1,812
$
1,397
636
649
(8
)
(234
)
$
2,440
$
1,812
Note 18
Commitments,
Contingencies, and Financial Instruments with Off-Balance Sheet
Risk
79
Table of Contents
At December 31,
2008
2007
(In Thousands)
$
236,292
$
172,660
9,731
12,174
Note 19
Fair
Value of Financial Instruments
80
Table of Contents
81
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December 31, 2008
December 31, 2007
Carrying
Carrying
Amount
Fair Value
Amount
Fair Value
(In Thousands)
$
23,684
$
23,684
$
17,624
$
17,624
109,124
109,124
97,378
97,378
840,546
892,142
771,633
788,879
2,367
2,367
2,367
2,367
15,499
15,499
14,757
14,757
3,331
3,331
3,566
3,566
1,797
1,797
$
838,874
$
863,102
$
776,060
$
782,075
22,000
22,000
14,250
14,250
72,526
73,841
67,736
68,818
10,315
6,925
1,799
1,799
10
10
6,911
6,911
5,911
5,911
28
28
55
55
*
*
*
Not meaningful
Note 20
Fair
Value Disclosures (SFAS 157 Disclosure)
82
Table of Contents
Quoted Prices
in Active
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
Assets
Inputs
Inputs
(Level 1)
(Level 2)
(Level 3)
Total
(In Thousands)
$
$
109,124
$
$
109,124
1,797
1,797
$
$
1,799
$
$
1,799
Quoted Prices
in Active
Significant
Markets for
Other
Significant
Balance at
Identical
Observable
Unobservable
Total
December 31,
Assets
Inputs
Inputs
Gains
2008
(Level 1)
(Level 2)
(Level 3)
(Losses)
(In Thousands)
$
6,827
$
$
1,389
$
5,438
$
83
Table of Contents
Note 21
Condensed
Parent Only Financial Information
At December 31,
2008
2007
(In Thousands)
$
3,392
$
29
98,397
82,124
782
724
893
449
$
103,464
$
83,326
$
49,325
$
33,210
1,133
1,564
50,458
34,774
53,006
48,552
$
103,464
$
83,326
Year Ended December 31,
2008
2007
(In Thousands)
$
27
$
17
2,393
2,010
(2,366
)
(1,993
)
4,857
3,956
51
3
2,542
3,959
6,985
6,268
(4,443
)
(4,302
)
(1,486
)
(1,522
)
(2,957
)
(2,780
)
6,081
6,036
$
3,124
$
3,256
84
Table of Contents
Year Ended December 31,
2008
2007
(In Thousands)
$
3,124
$
3,256
(6,081
)
(6,036
)
212
135
(494
)
260
(453
)
(391
)
(3,692
)
(2,776
)
(8,315
)
(6,500
)
(8,315
)
(6,500
)
-
37
2,500
7,075
(4,700
)
(6,500
)
39,000
10,000
(31,000
)
-
10,315
-
(52
)
(843
)
(693
)
(644
)
15,370
9,125
3,363
(151
)
29
180
$
3,392
$
29
Note 22
Condensed
Quarterly Earnings (unaudited)
2008
2007
First
Second
Third
Fourth
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
(Dollars in Thousands, Except per share data)
$
15,153
$
14,726
$
14,739
$
15,155
$
13,816
$
14,488
$
15,275
$
15,909
(9,091
)
(8,074
)
(8,222
)
(8,128
)
(8,435
)
(8,850
)
(9,413
)
(9,582
)
6,062
6,652
6,517
7,027
5,381
5,638
5,862
6,327
(553
)
(743
)
(17
)
(2,986
)
(576
)
(701
)
(596
)
(1,031
)
1,087
1,267
1,340
1,443
1,002
1,157
1,101
1,156
(5,341
)
(5,438
)
(5,815
)
(5,322
)
(4,876
)
(4,787
)
(4,944
)
(5,050
)
1,255
1,738
2,025
162
931
1,307
1,423
1,402
(485
)
(670
)
(853
)
(48
)
(332
)
(448
)
(538
)
(489
)
$
770
$
1,068
$
1,172
$
114
$
599
$
859
$
885
$
913
$
0.32
$
0.44
$
0.48
$
0.05
$
0.24
$
0.35
$
0.36
$
0.38
0.32
0.44
0.48
0.04
0.24
0.35
0.36
0.37
0.07
0.07
0.07
0.07
0.065
0.065
0.065
0.065
85
Table of Contents
86
Table of Contents
87
Table of Contents
(a) | Directors of the Registrant. Information with respect to the Directors of the registrant, included in the definitive Proxy Statement for the Annual Meeting of the Stockholders to be held on May 4, 2009 under the captions Board of Directors and Section 16(a) Beneficial Ownership Reporting Compliance is incorporated herein by reference. | |
(b) | Executive Officers of the Registrant. The information is presented in Item 1 of this document. |
(c) | Code of Ethics. The Corporation has adopted a code of ethics applicable to all employees, including the principal executive and principal accounting officer of the Corporation. The FBFS Code of Ethics is posted on the Corporations website at www.firstbusiness.com |
88
89
Table of Contents
Amended and Restated Articles of Incorporation of First Business
Financial Services, Inc., as amended
Amended and Restated Bylaws of First Business Financial
Services, Inc., as amended
Pursuant to Item 601(b)(4)(iii) of
Regulation S-K,
the Registrant agrees to furnish to the Securities and Exchange
Commission, upon request, any instrument defining the rights of
holders of long-term debt not being registered that is not filed
as an exhibit to this Annual Report on
Form 10-K.
No such instrument authorizes securities in excess of 10% of the
total assets of the Registrant.
Rights Agreement, dated as of June 5, 2008, between the
Registrant and Computershare Investor Servicies, Inc.
(incorporated by reference to Exhibit 4.1 to the
Registration Statement on
Form 8-A
of the Registrant, dated as of June 6, 2008)
1993 Incentive Stock Option Plan (incorporated by reference to
the Registration Statement on
Form S-8
filed September 28, 2006)
2001 Equity Incentive Plan (incorporated by reference to
Exhibit 10.1 to the Amended Registration Statement on
Form 10 filed April 28, 2005)
Form of Stock Option Agreement (incorporated by reference to
Exhibit 10.2 to the Amended Registration Statement on
Form 10 filed April 28, 2005)
2006 Equity Incentive Plan (incorporated by reference to
Appendix B to the Companys Proxy Statement for the
2006 Annual Meeting of Shareholders filed on March 31, 2006)
Form of Restricted Stock Agreement (incorporated by reference to
Exhibit 4.4 to the Registration Statement on
Form S-8
filed September 28, 2006)
Restated Employment Agreement dated December 14, 2005
between the Registrant and Jerome J. Smith (incorporated by
reference to Exhibit 10.1 to the current report on
Form 8-K
filed on December 16, 2005)
Employment and Repayment Agreement between First Business
Capital Corp. and Charles H. Batson, dated December 14,
2005 (incorporated by reference to Exhibits 10.1 and 10.2
to the current reports on
Form 8-K
filed on December 20, 2005)
Form of Executive change-in-control and Severance Agreement
(incorporated by reference to the current report on Form 8-K
filed on February 10, 2006)
Restated Employment Agreement dated November 7, 2006
between the Registrant and Corey A. Chambas (incorporated by
reference to Exhibit 10.1 to the current report on
Form 8-K
filed on November 13, 2006)
Annual Incentive Bonus Program
Subsidiaries of the Registrant (incorporated by reference to
Exhibit 21 to the Amended Registration Statement on
Form 10 filed April 28, 2005)
Consent of KPMG LLP
Certification of the Chief Executive Officer
Certification of the Senior Vice President and Chief Financial
Officer
Certification of the Chief Executive Officer and Senior Vice
President and Chief Financial Officer pursuant to 18 U.S.C.
Section 1350
Proxy Statement for the Annual Meeting of the Stockholders (to
be filed with the SEC under Regulation 14A within
120 days after December 31, 2008; except to the extent
specifically incorporated by reference, the Proxy Statement for
the Annual Meeting of the Stockholders shall not be deemed to be
filed with the SEC as part of this Annual Report on
Form 10-K)
90
ARTICLE I. OFFICES
|
2 | |||||
1.01
|
Principal and Business Offices | 2 | ||||
1.02
|
Registered Office | 2 | ||||
ARTICLE II. SHAREHOLDERS
|
2 | |||||
2.01
|
Annual Meeting | 2 | ||||
2.02
|
Special Meeting | 2 | ||||
2.03
|
Place of Meeting | 2 | ||||
2.04
|
Notice of Meeting | 2 | ||||
2.05
|
Fixing of Record Date | 3 | ||||
2.06
|
Voting Record | 3 | ||||
2.07
|
Quorum and Voting Requirements; Postponements; Adjournments | 3 | ||||
2.08
|
Conduct of Meetings | 4 | ||||
2.09
|
Proxies | 4 | ||||
2.10
|
Voting of Shares | 4 | ||||
2.11
|
Acceptance of Instruments Showing Shareholder Action | 4 | ||||
2.12
|
Waiver of Notice by Shareholders | 5 | ||||
2.13
|
Unanimous Consent Without Meeting | 5 | ||||
2.14
|
Treasury Stock and Subsidiaries | 5 | ||||
2.15
|
Director Nominations and Shareholder Proposals | 6 | ||||
2.16
|
Inspectors of Election | 6 | ||||
2.17
|
Nominating Committee | 7 | ||||
ARTICLE III. BOARD OF DIRECTORS
|
7 | |||||
3.01
|
General Powers, Number and Qualifications | 7 | ||||
3.02
|
Term of Office | 7 | ||||
3.03
|
Nominations | 7 | ||||
3.04
|
Regular Meetings | 7 | ||||
3.05
|
Special Meetings | 7 | ||||
3.06
|
Notice; Waiver | 7 | ||||
3.07
|
Quorum | 8 | ||||
3.08
|
Manner of Acting | 8 | ||||
3.09
|
Conduct of Meetings | 8 | ||||
3.10
|
Vacancies | 8 | ||||
3.11
|
Removal or Resignation | 8 | ||||
3.12
|
Compensation | 8 | ||||
3.13
|
Presumption of Assent | 9 | ||||
3.14
|
Committees | 9 | ||||
3.15
|
Unanimous Consent Without Meeting | 9 | ||||
3.16
|
Meetings By Telephone Or By Other Communication Technology | 9 | ||||
3.17
|
Duties of Chairperson | 9 | ||||
ARTICLE IV. OFFICERS
|
9 | |||||
4.01
|
Designation of Titles | 9 | ||||
4.02
|
Election and Term of Office | 10 | ||||
4.03
|
Removal | 10 | ||||
4.04
|
Vacancies | 10 | ||||
4.05
|
Duties of Chief Executive Officer | 10 | ||||
4.06
|
Duties of President | 10 |
i
4.07
|
Duties of Vice Presidents | 10 | ||||
4.08
|
Duties of Secretary | 10 | ||||
4.09
|
Duties of Treasurer | 11 | ||||
4.10
|
Duties of Assistants | 11 | ||||
4.11
|
Death, Absence or Inability to Act of the Chief Executive Officer | 11 | ||||
4.12
|
Remuneration | 11 | ||||
ARTICLE V. CONFLICT OF INTEREST TRANSACTIONS, CONTRACTS,
LOANS, CHECKS AND DEPOSITS: SPECIAL CORPORATE ACTS
|
11 | |||||
5.01
|
Conflict of Interest Transactions | 11 | ||||
5.02
|
Contracts | 12 | ||||
5.03
|
Loans | 12 | ||||
5.04
|
Checks, Drafts and Other Evidences of Indebtedness | 12 | ||||
5.05
|
Deposits | 12 | ||||
5.06
|
Voting of Securities Owned by the Corporation | 12 | ||||
ARTICLE VI. CERTIFICATES FOR SHARES AND THEIR TRANSFER
|
12 | |||||
6.01
|
Certificates for Shares | 12 | ||||
6.02
|
Facsimile Signatures | 12 | ||||
6.03
|
Signature by Former Officers | 12 | ||||
6.04
|
Transfer of Shares | 12 | ||||
6.05
|
Restrictions on Transfer | 13 | ||||
6.06
|
Lost, Destroyed or Stolen Certificates | 13 | ||||
6.07
|
Consideration for Shares | 13 | ||||
6.08
|
Uncertificated Shares | 13 | ||||
6.09
|
Transfer Agent and Registrar | 13 | ||||
6.10
|
Stock Regulations | 13 | ||||
ARTICLE VII. INDEMNIFICATION
|
14 | |||||
7.01
|
Right to Indemnification | 14 | ||||
7.02
|
Advance Payments of Expenses as Incurred | 14 | ||||
7.03
|
Contract | 14 | ||||
7.04
|
Non-Exclusive Rights | 14 | ||||
7.05
|
Insurance | 14 | ||||
7.06
|
Other Indemnification Rights | 14 | ||||
7.07
|
Liability of Directors | 15 | ||||
7.08
|
Settlement | 15 | ||||
7.09
|
Effect of Amendment | 15 | ||||
ARTICLE VIII. SEAL
|
15 | |||||
ARTICLE IX. FISCAL YEAR; ANNUAL AUDIT
|
15 | |||||
ARTICLE X. DIVIDENDS
|
15 | |||||
ARTICLE XI. AMENDMENTS
|
15 | |||||
11.01
|
By Shareholders | 15 | ||||
11.02
|
By Directors | 15 | ||||
11.03
|
Implied Amendments | 16 |
ii
0.01. | Date of annual shareholders meeting (See Section 2.01): |
6:00 p.m.
(HOUR) |
1st
(WEEK) |
Monday
(DAY) |
May
(MONTH) |
0.02 | Required notice of shareholders meeting (See Section 2.04): not less than ten (10) days. |
0.03. | Authorized number of Directors (see Section 3.01): nine (9) |
0.04 | Required notice of Directors meeting (See section 3.05): not less than forty-eight (48) hours. |
0.01 | Amended February 17, 2005 by action of the FBFS Board of Directors | |
0.01 | Amended July 17, 2006 by action of the FBFS Board of Directors |
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
| Return on Equity or Return on Assets: Return on Equity will be used by the Company and Return on Assets will be used by the entities. | |
| Top Line Growth |
| Net Interest Income plus Fee Income |
| Adjusted Net Income |
| Company: Net income pre-tax, pre-provision, after actual net charge offs | |
| Entity: Net income pre-tax, pre-allocation, pre-provision, after actual net charge offs |
Company | Entity | |||||||
Company Employees
|
100 | % | n/a | |||||
Entity Employees
|
25 | %* | 75 | % |
* | Based on FBFS ROE only. |