First Business Financial Services Stock Earnings Reports

First Business Financial Services reported a strong Q3 2025 with broad-based balance sheet growth, record operating revenue, and improved profitability. Key financial highlights: loans grew ~$85 million (10% annualized) in the quarter and ~9% y/y; core deposits rose 9% q/q and y/y; net interest margin was stable at 3.68% (targeted range 3.60%–3.65%); fee income contributed meaningfully (fee income ~19% of operating revenue YTD vs peers ~15%) including elevated swap and SBIC-related income and two nonrecurring items (~$770k). Year-to-date ROA improved to 1.23% and return on average tangible common equity exceeded 15%. Tangible book value per share rose 16% y/y. Asset quality remained stable (NPAs down to 0.58% of assets); net charge-offs were modest ($1.3M) and a few problem credits are in litigation with management expecting eventual recovery. Management reiterated a long-term organic growth target of ~10% and expects fee income to grow ~10% on an adjusted basis (Q4 fee income expected closer to 4-quarter average). Guidance and operational notes: adjusted net interest margin (excluding idiosyncratic ‘fees in lieu’) implied around 3.40%–3.45%; balance sheet is positioned to be interest-rate neutral with continued focus on match funding; compensation and hiring will support growth and may push personnel costs modestly higher into 2026. Capital generation is strong; management prefers reinvestment in organic growth but evaluates dividend increases and buybacks. Overall takeaway: diversified revenue mix, disciplined underwriting, continued investment in talent/technology, and strong capital/earnings metrics support the bank’s ability to execute its 10% growth target and return capital to shareholders over time.