Latest news with #SBIC
Yahoo
28-04-2025
- Business
- Yahoo
First Business Financial Services Inc (FBIZ) Q1 2025 Earnings Call Highlights: Strong Earnings ...
Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Business Financial Services Inc (NASDAQ:FBIZ) reported a strong quarter with a 23% increase in pre-tax, pre-provision, adjusted earnings compared to the previous year. The company achieved double-digit core deposit growth, outpacing loan expansion, which supports their strategic plan for 10% annual growth. Net interest margin remained strong and stable, contributing to solid financial performance. Non-performing assets declined, indicating improved asset quality. Tangible book value per share grew by 14%, reflecting enhanced shareholder value. There is rising uncertainty related to changes in US trade policy, which could potentially impact economic conditions and growth. The company experienced increased net charge-offs in the equipment finance portfolio, particularly in the transportation sector. Ongoing variability in fee income, particularly from slot fees and SBIC fund returns, could impact revenue consistency. The economic outlook shows modest deterioration, which could affect future loan growth and asset quality. The company faces competitive pressures on both loan yields and deposit costs, which could impact margins if conditions change. Q: What were the new loan yields in the first quarter, and have there been any changes in spreads? A: New loan yields were consistent with the prior quarter, with no significant changes in spreads. Typically, pricing ranges from 225 to 275 basis points depending on the credit type. (Unidentified_6) Q: How are tariffs impacting your clients, and which sectors are most exposed? A: There is some uncertainty among clients, particularly those with international exposure, but no significant impact has been observed yet. The bank is focusing on clients with foreign vendors and contractors. (Unidentified_3) Q: Can you explain the increase in net charge-offs in the equipment finance sector? A: The increase was a one-quarter anomaly due to accelerated charge-offs in the equipment finance portfolio, particularly in the transportation sector. This was already reserved for, so it had minimal impact on the provision line. (Unidentified_9) Q: What is the outlook for fee income, especially after the reclassification of loan fees? A: The reclassification is permanent, and the bank expects to maintain or grow fee income through various channels such as SBA, private wealth, and SBIC fund investments. (Unidentified_6) Q: How is the bank managing its loan-to-deposit ratio, and what are the targets? A: The bank aims to keep the loan-to-deposit ratio below 100% for better optics, favoring brokered CDs over home loan advances for match funding. The focus is on maintaining 75% core funding of total bank funding. (Unidentified_7) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Upturn
21-04-2025
- Business
- Business Upturn
Capital Southwest Announces Receipt of Second SBIC License
By GlobeNewswire Published on April 22, 2025, 01:01 IST DALLAS, April 21, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation ('Capital Southwest') (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its wholly owned subsidiary, Capital Southwest SBIC II, LP ('SBIC II'), has received a license from the U.S. Small Business Administration ('SBA') to operate as a Small Business Investment Company ('SBIC'). As an SBIC, SBIC II will be subject to a variety of regulations and oversight by the SBA concerning, among other things, the size and nature of the companies in which it may invest as well as the structure of those investments. The SBIC license will allow SBIC II to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. SBA debentures are loans issued to an SBIC which have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. Current SBA regulations permit SBIC II to borrow up to $175 million in SBA-guaranteed debentures, bringing Capital Southwest's aggregate borrowing capacity through the SBIC program to a total of up to $350 million of capital. The SBA program has played a pivotal role within Capital Southwest's lower middle market investment strategy since receiving its first SBIC license in April 2021. Capital Southwest received exemptive relief from the Securities and Exchange Commission that allows for the exclusion of SBA-guaranteed debentures from the definition of senior securities in the asset coverage requirement applicable to the Company. About Capital Southwest Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.7 billion in investments at fair value as of December 31, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. Investor Relations Contact: Michael S. Sarner, President and Chief Executive Officer 214-884-3829 Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Associated Press
29-01-2025
- Business
- Associated Press
Petra Capital Partners Completes Fundraising on $270 Million Petra Growth Fund V
NASHVILLE, Tenn., Jan. 29, 2025 /PRNewswire/ -- Petra Capital Partners is pleased to announce it has completed fundraising on Petra Growth Fund V ('PGF V') with $270 million of capital available to invest. The fund was oversubscribed and reached its hard cap. Consistent with prior funds, PGF V will target healthcare, business, and technology-enabled services companies and is structured as a small business investment company (SBIC) licensed by the U.S. Small Business Administration. 'We are very pleased with the response from our existing investors and several important new investors for PGF V and the strong support we received from the SBIC program,' said Mike Blackburn, Founding Managing Partner at Petra. Doug Owen, Managing Partner at Petra, commented, 'We are excited to begin deploying PGF V and with increased capacity to invest per deal, Petra can support its companies longer in their life cycles with a combination of flexible debt and equity solutions'. Petra is also pleased to announce that the fund has already made its first platform investment in a leading primary market research and analytics firm serving the pharmaceutical, healthcare, and consumer industries. 'This new investment fits squarely into one of our core investment sectors of healthcare and pharma services and represents a compelling opportunity for the fund,' commented David Fitzgerald, Managing Partner at Petra. With the raising of the new fund, Petra is also proud to announce that Matt Sotelo has been promoted to Partner. 'We are pleased to add Matt as a Partner in the firm. His promotion reflects his hard work, talent and significant contributions to Petra over the last 12 years' said David Fitzgerald, Managing Partner at Petra. Petra will continue to expand its investment team and is currently recruiting qualified candidates for Associate level positions. About Petra Capital Partners Petra Capital Partners is a private equity firm engaged in providing growth capital for companies located throughout the United States. Our investment team has an established track record of success spanning over 25 years and deploying more than $900 million of capital invested into more than 100 high growth companies. We are seeking investments for our current SBIC fund, Petra Growth Fund V. We can invest up to $25 million per company in equity or debt securities with a primary focus on backing high growth business services, tech-enabled services and healthcare services companies.
