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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FBIZ

FBIZ fundamentals

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