What is First Business Financial Services's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for First Business Financial Services year over year?

Did First Business Financial Services beat or miss consensus estimates last quarter?

What is the market's earnings forecast for First Business Financial Services next quarter?

What guidance did First Business Financial Services's management provide for the next earnings period?

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What were the key takeaways from First Business Financial Services’s earnings call?

- **Record Q3 Growth**: 20% YoY pretax pre-provision earnings, 19% fee income share vs. peers.
- **Margin Stability**: 3.68% NIM (target 3.60%-3.65%), 21 bps from fees in lieu of interest.
- **10% Growth Targets**: Loans, deposits, fee income; 21 BDOs added to drive market share gains.
- **SBA Loan Risk Mitigation**: Pipeline strong, expect post-shutdown rebound.
- **Capital Efficiency**: 15% ROE, 1.23% ROA, 16% TBV growth.

**【CEO Summary Section】**
- Delivered another outstanding quarter with high-quality loan and deposit growth, driven by core client relationships.
- Private Wealth assets expanded, contributing to record operating revenue and fee income growth.
- Year-to-date ROA increased to 1.23%, ROE to 15%, and tangible book value per share grew 16% YoY.
- Emphasized long-term strategic plan execution, focusing on niche C&I businesses and talent investment.

**【CFO Financial Commentary】**
- Net interest margin (NIM) grew 1 bps to 3.68%, supported by fees in lieu of interest contributing 21 bps YoY.
- GAAP net income $420M, Non-GAAP EPS $1.08, exceeding expectations.
- Fee income comprised 19% of operating revenue vs. peers' 15%, driven by swap fees ($770K) and SBIC funds.
- Strong cost control: Q3 expenses +16%, vs. +10% target, due to one-time bonus accrual.
- Targeting 3.60%-3.65% NIM, stable amid rate cuts via SOFR-based lending and deposit beta matching.

**【Q&A Key Highlights】**
- **Fee Income Guidance**: 10% annual growth, excluding one-time Q3 items ($770K).
- **Margin Stability**: Fees in lieu of interest average 20 bps, stable despite rate changes.
- **Capital Allocation**: Prioritize organic 10% loan/deposit growth; evaluate M&A for private wealth or niche fits.
- **Government Shutdown Impact**: SBA loan closings delayed, but pipeline strong; expect rebound post-shutdown.
- **Talent Strategy**: Added 21 BDOs since 2024, targeting 10% growth via market share gains in SE WI/KC.

First Business Financial Services, Inc. (FBIZ) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 10% operating revenue growth Y/Y, driven by core deposits (+10% Y/Y) and loans (+9% Y/Y).
- **Profitability**: 14% tangible book value growth Y/Y; adjusted NIM of 3.47% stable despite rate hikes.
- **Strategic Momentum**: Private Wealth AUM up 36% annualized; ABL and floorplan financing outperforming.
- **Risk Management**: Transportation sector NPAs ($75M) well-collateralized; no material credit deterioration elsewhere.
- **Margin Resilience**: 3.60-3.65% NIM target achievable with disciplined balance sheet management.


**【CEO Opening Remarks】**
- Reported another outstanding quarter with 10% growth in operating revenue, 18% growth in pretax pre-provision earnings, and 14% growth in tangible book value year-over-year.
- Highlighted strategic plan success: double-digit core deposit growth outpacing loan expansion, stable net interest margin, and declining net charge-offs.
- Announced CEO succession: Dave Seiler to succeed Corey Chambas effective May 2026.

**【COO (David Seiler) Financial Highlights】**
- Core deposits grew $70M (11% annualized) Q/Q and 10% Y/Y, driven by service charge growth (+16% Y/Y).
- Loan balances increased $267M Y/Y (+9%), with strong performance in asset-based lending (+$13M), floorplan financing (+$10M), and equipment finance (+$7M).
- Private Wealth assets under management grew 36% annualized Q/Q and 15% Y/Y, with 63% of growth from client transfers.
- Noted $4.6M increase in non-performing assets (NPAs) due to single transportation sector credit, but emphasized collateralization and limited risk exposure.

**【CFO (Brian Spielmann) Financial Commentary】**
- Net interest margin (NIM) of 3.67% reflects strong balance sheet management; adjusted NIM rose 1bp to 3.47% Q/Q.
- Fee income variability: SBIC fee income down $366K Q/Q but expected to improve in H2; total fee income growth target remains 10% annually.
- Expenses well-contained; annualized operating leverage achieved with expense growth below 10% revenue target.
- Effective tax rate of 15.8% Y/Y within 16-18% guidance range.
- Capital levels strong, generating sufficient capital for organic growth.

**【Q&A Highlights】**
- **Loan Growth Outlook**: Q2 loan growth 8.9% Y/Y, with pipeline confidence to meet 10% annual target. C&I growth strongest in Southeast and specialty products.
- **Deposit Competition**: Deposit costs elevated but manageable; NIM target of 3.60-3.65% achievable despite higher rates.
- **Asset Quality**: Transportation sector NPAs ($75M total exposure) well-collateralized; no material changes to criticized/classified loans.
- **Margin Sensitivity**: Slightly asset-sensitive balance sheet; margin stable even with $100M+ of short-term wholesale funding maturing in Q2.
- **Specialty Lending Mix**: Niche products (ABL, floorplan) at ~25% of loans, targeting 30%+ over time with ABL and equipment finance growth.


First Business Financial Services (FBIZ)-25 Jul 25-2025 Q2 Earnings call transcript

- **Revenue Growth**: 13% YoY driven by 10% loan growth and 18% deposit expansion.
- **Margin Stability**: 3.69% NIM with 23bps fee contribution; targeting 3.60-3.65% range.
- **Credit Quality**: NPA decline to $6.2M ABL credit; no material portfolio risks identified.
- **Fee Diversification**: 10%+ fee growth target via ABL, ARF, and SBIC gains.
- **Economic Resilience**: Countercyclical ABL/ARF portfolios positioned for softening economy.

**【CEO Opening Remarks】**
- Q1 2025 revenue grew 13% YoY, driven by loan growth (+10%) and core deposit expansion (+11%).
- Tangible book value per share increased 14% YoY to $13.20.
- Non-performing assets declined $4.3M, with no material credit concerns identified.
- FY25 target: 10%+ annual revenue growth through balanced loan/deposit expansion.

**【Dave Seiler - Business Highlights】**
- Loan growth: $275M YoY (+10%), with C&I up $77M (27% annualized). SBA loans benefit from strong sale premiums.
- Deposit growth: $488M YoY (+18%), including $66M core deposits. Match-funding strategy maintains liquidity.
- Countercyclical ABL and ARF portfolios show strong demand, 100% secured with premium spreads.
- Fee income diversification: Swap fees down $475K, SBIC gains up $318K, targeting 10%+ fee growth.

**【CFO Brian Spielmann - Financial Details】**
- Net interest margin (NIM): 3.69% (3.46% adjusted for fees). Guidance: 3.60-3.65% range, targeting upper end.
- Fees in lieu of interest: $1.2M YoY increase, contributing 23bps to margin.
- Operating expenses up 4% YoY, driven by workforce expansion. Target: expense growth <10% revenue growth.
- Effective tax rate: 17% (16-18% target range). Pre-tax pre-provision earnings up 23% YoY.

**【Q&A Key Takeaways】**
- Loan yields stable at 2.25-2.75% over SOFR. Deposit costs controlled via match-funding strategy.
- Tariff uncertainty impacts clients with international supply chains, but no material portfolio exposure.
- Equipment finance charge-offs ($4.3M Q1) one-time event; CECL model shows modest economic weakness.
- Loan-to-deposit ratio improved to 98%, targeting <100% for risk optics. Core deposits >75% of funding mix.


First Business Financial Services (FBIZ)-25 Apr 25-2025 Q1 Earnings call transcript

- **Record Q4 Performance**: 15% YoY revenue growth, 377bps NIM, and 15.4% ROATCE exceed targets.
- **Growth Drivers**: 10%+ loan growth, 13% core deposit expansion, and 11% fee income growth.
- **Efficiency &amp; Capital**: 60.61% efficiency ratio (down 100bps YoY), 16-18% tax rate, and 9%+ CET1 capital.
- **2025 Outlook**: 10%+ revenue growth, 360-365bps NIM, and continued focus on high-touch commercial banking.

**【CEO Opening Remarks】**
- Q4 2024 revenue growth of 15% YoY, driven by loan growth and stable net interest margin (NIM) of 377 basis points.
- Tangible book value per share up 23% annualized, efficiency ratio improved to 60.61%, lowest since 2013.
- 2024 ROATCE of 15.4%, exceeding 15%+ target, with 10%+ annual revenue growth expected in 2025.

**【COO Operational Highlights】**
- Loan growth of $264M (10% YoY), deposit growth of $310M (11% YoY), with core deposits up 13% YoY.
- Treasury management fees +11% YoY, SBA gains on sales +200% QoQ, private wealth fees now 43% of total fee income.
- Net promoter score of 70, nearly 3x industry average, reflecting client satisfaction and team engagement.

**【CFO Financial Details】**
- GAAP net income $42.0M, Non-GAAP EPS $1.08 (vs. $0.95 consensus).
- NIM of 377bps, including 27bps from fees in lieu of interest (e.g., prepayment fees).
- Operating expenses +0.4% QoQ, with 2025 compensation expense starting at Q4 2024 levels plus 3.5% merit increases.
- Effective tax rate guidance for 2025: 16-18%, driven by state tax benefits and federal credits.

**【Q&A Key Takeaways】**
- 2025 loan growth target: 10%+ with C&amp;I (commercial and industrial) loans expected to outpace CRE.
- Deposit strategy: 70-80% core deposits matched with wholesale funding to maintain NIM stability.
- Credit quality: No material risks identified; transportation sector exposure declining (from $61M to $41M YoY).
- Capital deployment: Prioritize organic growth, dividend increases, and opportunistic share buybacks under existing program.

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