First Business Financial Services (FBIZ) closed the last trading session at $47.69, gaining 1.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $60.20 indicates a 26.2% upside potential.The average comprises five short-term price targets ranging from a low of $57 to a high of $62, with a standard deviation of $2.05. While the lowest estimate indicates an increase of 19.5% from the ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. ...

Financial Performance - Net income available to common shareholders for Q1 2025 was $11.0 million, or diluted earnings per share of $1.32, compared to $8.6 million, or $1.04 per share in Q1 2024, representing a 28% increase in net income [129]. - Top line revenue for Q1 2025 reached $40.8 million, a 12.6% increase from $36.3 million in Q1 2024, attributed to a 12.7% rise in net interest income and a 12.2% rise in non-interest income [131]. - Pre-tax, pre-provision adjusted earnings for Q1 2025 were $16.2 million, a 23.4% increase from $13.1 million in Q1 2024 [137]. - Efficiency ratio improved to 60.3% in Q1 2025 from 63.8% in Q1 2024, indicating better operational efficiency [136]. Asset and Loan Growth - Total assets increased by $91.7 million, or 9.5% annualized, to $3.945 billion as of March 31, 2025, compared to $3.853 billion at the end of 2024 [135]. - Period-end gross loans and leases receivable rose to $3.185 billion, a 9.2% annualized increase from $3.114 billion at the end of 2024 [135]. - Average gross loans and leases rose by $298.3 million, or 10.3%, for the three months ended March 31, 2025, compared to the same period in 2024 [149]. - Period-end loans and leases receivable increased by $71.8 million, or 9.3% annualized, to $3.149 billion as of March 31, 2025, from $3.077 billion at December 31, 2024 [180]. Income and Interest Metrics - Net interest income increased by $3.7 million, or 12.7%, for the three months ended March 31, 2025, compared to the same period in 2024 [149]. - Net interest margin improved to 3.69% for the three months ended March 31, 2025, compared to 3.58% for the same period in 2024 [148]. - The yield on average loans and leases decreased to 6.94% for the three months ended March 31, 2025, down from 7.14% for the same period in 2024 [150]. - The yield on average interest-earning assets was 6.61% for the three months ended March 31, 2025, compared to 6.77% for the same period in 2024 [150]. Credit Quality - Provision for credit losses was $2.7 million in Q1 2025, up from $2.3 million in Q1 2024 [135]. - Non-performing assets decreased to $24.1 million, or 0.61% of total assets, down from $28.4 million, or 0.74%, at the end of 2024 [135]. - The allowance for credit losses decreased by $753,000, or 2.0%, to $36.5 million as of March 31, 2025, with the allowance as a percentage of gross loans and leases at 1.15% [208]. - Net charge-offs for the three months ended March 31, 2025, were $3.4 million, consisting of $3.8 million in charge-offs and $398,000 in recoveries [210]. Deposits and Funding - Total deposits increased by $135.9 million, or 4.3%, to $3.243 billion as of March 31, 2025, from $3.107 billion at December 31, 2024 [189]. - Core deposits increased by $66.3 million, or 11.1% annualized, to $2.463 billion as of March 31, 2025 [189]. - Outstanding wholesale funds increased to $1.012 billion as of March 31, 2025, representing 29.1% of total bank funding [221]. - FHLB advances and other borrowings decreased by $33.5 million, or 41.8%, to $286.6 million as of March 31, 2025 [191]. Liquidity - As of March 31, 2025, the Corporation's total liquidity was $1.955 billion, an increase from $1.909 billion as of December 31, 2024 [219]. - Readily accessible liquidity increased to $961.7 million as of March 31, 2025, compared to $882.8 million as of December 31, 2024 [220]. - The Bank's accessible liquidity was in excess of the stated policy minimum as of March 31, 2025, ensuring funding for at least one year of maturities [224]. - The Corporation plans to utilize excess liquidity to fund loan and lease portfolio growth and maintain adequate liquidity margins [220]. Other Financial Metrics - Total stockholders' equity increased by $7.5 million, or 9.1%, to $336.1 million at March 31, 2025, compared to $328.6 million at December 31, 2024 [176]. - The effective tax rate for the three months ended March 31, 2025, was 17.00%, compared to 16.5% for the same period in 2024 [172]. - The Corporation paid $219,000 in cash dividends on the Series A Preferred Stock during the three months ended March 31, 2025 [194]. - The Corporation recognized a pre-tax unrealized loss of $5.7 million in other comprehensive income for the three months ended March 31, 2025, related to cash flow hedges [197].

First Business Financial Services (FBIZ) Q1 2025 Earnings Call April 25, 2025 02:00 PM ET Company Participants Corey Chambas - CEODavid Seiler - President & COOBrian Spielmann - CFODaniel Tamayo - Vice PresidentJames E. Hartlieb - President & CEO - First Business BankBradley A. Quade - EVP & Chief Credit OfficerDamon Delmonte - Managing DirectorBrian Martin - Director - Banks & Thrifts Conference Call Participants Jeffrey Rulis - MD & Senior Research AnalystNathan Race - Managing Director & Senior Research ...

NASDAQ: FBIZ Earnings Release Supplement First Quarter 2025 Forward-Looking Statements When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases "may," "could," "should," "hope," "might," "believe," "expect," "plan," "assume," "intend," "estimate," "anticipate," "project," "likely," or similar expressions are intended to identify "forward‐looking statements" within the meaning of such term in the Private Securities Litiga ...

Core Insights - First Business Financial Services (FBIZ) reported a revenue of $40.84 million for Q1 2025, marking a year-over-year increase of 12.6% and exceeding the Zacks Consensus Estimate by 1.92% [1] - The earnings per share (EPS) for the same quarter was $1.32, up from $1.04 a year ago, with an EPS surprise of 2.33% over the consensus estimate of $1.29 [1] Financial Performance Metrics - Efficiency ratio stood at 60.3%, better than the average estimate of 61.6% from three analysts [4] - Net Interest Margin was reported at 3.7%, slightly above the average estimate of 3.6% [4] - Net charge-offs as a percentage of average gross loans and leases were 0.4%, compared to the estimated 0.2% [4] - Total interest-earning assets averaged $3.60 billion, close to the estimated $3.62 billion [4] - Total Non-Interest Income was $7.58 million, below the estimated $7.88 million [4] - Net Interest Income reached $33.26 million, surpassing the average estimate of $32.19 million [4] - Gain on sale of SBA loans was $0.96 million, exceeding the estimate of $0.80 million [4] - Swap fees were reported at $0.11 million, significantly lower than the average estimate of $0.78 million [4] - Private wealth management service fees totaled $3.49 million, above the estimated $3.23 million [4] - Service charges on deposits were $1.05 million, slightly above the estimated $0.99 million [4] - Loan fees amounted to $0.39 million, below the average estimate of $0.96 million [4] Stock Performance - Shares of First Business Financial Services have returned +0.1% over the past month, while the Zacks S&P 500 composite has decreased by -5.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - First Business Financial Services (FBIZ) reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, and up from $1.04 per share a year ago [1] - The company achieved an earnings surprise of 2.33% for the quarter, and has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $40.84 million, surpassing the Zacks Consensus Estimate by 1.92%, and up from $36.27 million year-over-year [3] Stock Movement and Outlook - The stock has increased approximately 5.1% since the beginning of the year, contrasting with the S&P 500's decline of -8.6% [4] - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $41 million, and for the current fiscal year, it is $5.46 on revenues of $166.73 million [8] Industry Context - The Banks - Midwest industry, to which First Business Financial Services belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [6]

Financial Performance - First Business Bank reported a net income of $11.0 million, or earnings per share (EPS) of $1.32, compared to $14.2 million (EPS of $1.71) in Q4 2024 and $8.6 million (EPS of $1.04) in Q1 2024[1]. - Operating revenue was $40.8 million, a 12.6% increase from the prior year quarter, driven by strong loan growth and a 12.2% increase in fee income[4]. - Net income available to common shareholders for Q1 2025 was $10,952 thousand, a 27.0% increase from $8,629 thousand in Q1 2024[36]. - Basic earnings per share for Q1 2025 were $1.32, up from $1.04 in Q1 2024, reflecting a 26.9% increase[36]. - The company declared dividends of $0.29 per share in Q1 2025, an increase from $0.25 per share in the same quarter of the previous year[36]. Deposits and Loans - Total deposits grew by $135.9 million, or 17.5% annualized, from the previous quarter and $487.6 million, or 17.7%, from Q1 2024, with core deposits reaching a record $2.463 billion, up $66.3 million, or 11.1% annualized, from the previous quarter[4]. - Loans increased by $71.4 million, or 9.2% annualized, from Q4 2024, and $274.7 million, or 9.4%, from Q1 2024, reflecting strong growth across the company[4]. - Total period-end loans and leases receivable increased by $274.7 million, or 9.4%, to $3.185 billion[26]. - Total deposits rose to $3,243,043 thousand as of March 31, 2025, up 17.7% from $2,755,406 thousand a year prior[35]. - Total deposits rose to $3,243,043 thousand as of March 31, 2025, up from $3,107,140 thousand at December 31, 2024, reflecting an increase of 4.4%[48]. Interest Income and Margin - The net interest margin was 3.69%, down from 3.77% in the previous quarter and up from 3.58% in the prior year quarter, with net interest income increasing by 0.3% from the previous quarter and 12.7% from the prior year[4]. - Net interest income for the first quarter of 2025 was $33,258 thousand, compared to $29,511 thousand in the same quarter of 2024, reflecting a year-over-year increase of 12.0%[36]. - Net interest income increased by $3.7 million, or 12.7%, to $33.3 million, driven by an increase in average gross loans and leases[22][24]. - The net interest margin for Q1 2025 was 3.69%, compared to 3.58% in Q1 2024, showing an improvement in profitability[37]. - The net interest margin decreased to 3.69% for the three months ended March 31, 2025, compared to 3.77% for the previous quarter, a decline of 0.08%[43]. Asset Quality - Non-performing assets decreased by $4.3 million to $24.1 million, or 0.61% of total assets, down from 0.74% in the prior quarter[20]. - The allowance for credit losses decreased by $753,000, or 2.0%, to $36.5 million, representing 1.15% of total gross loans and leases[21][30]. - The allowance for credit losses as a percentage of total loans was 1.15% as of March 31, 2025, compared to 1.20% at December 31, 2024[42]. - Non-accrual loans and leases decreased to $24,056 thousand as of March 31, 2025, from $28,367 thousand at December 31, 2024, a reduction of 15.5%[44]. - The allowance for credit losses decreased slightly to $(35,236) thousand from $(32,799) thousand a year earlier, indicating improved asset quality[35]. Expenses and Efficiency - Non-interest expense increased by $1.4 million, or 5.9%, to $24.7 million, primarily due to higher operating expenses[25]. - Compensation expense increased by $590,000, or 3.7%, to $16.7 million, attributed to an increase in average FTEs[29]. - The efficiency ratio increased to 60.28% for the three months ended March 31, 2025, compared to 56.94% in the previous quarter, indicating a decline in operational efficiency[43]. - Total operating revenue for the three months ended March 31, 2025, is $40,837, a decrease from $41,153 in the previous quarter[57]. Wealth Management - Private Wealth assets under management grew to a record $3.425 billion, generating fee income of $3.5 million, which increased by 12.2% from the prior year quarter[4]. - Non-interest income rose by $822,000, or 12.2%, to $7.6 million, with Private Wealth fee income increasing by $381,000, or 12.2%[23][24]. - Total non-interest income for Q1 2025 was $7,579 thousand, an increase from $6,757 thousand in Q1 2024, marking a growth of 12.2%[36]. Capital and Liquidity - The Tier I capital to risk-weighted assets ratio improved to 9.60% as of March 31, 2025, compared to 9.45% at December 31, 2024[46]. - Total liquidity as of March 31, 2025, is $1,955,615, an increase from $1,909,248 as of December 31, 2024[49]. - Tangible common equity increased to $312,013 as of March 31, 2025, compared to $304,685 as of December 31, 2024[53]. - Book value per share rose to $39.04 as of March 31, 2025, from $38.17 as of December 31, 2024[53].

Group 1 - First Business Financial Services (FBIZ) has experienced a downtrend with a 9% decline in stock price over the past four weeks, but it is now in oversold territory, indicating a potential for a turnaround [1] - The Relative Strength Index (RSI) for FBIZ is at 29.29, suggesting that the heavy selling pressure may be exhausting, which could lead to a reversal in the stock's trend [5] - Analysts have raised earnings estimates for FBIZ by 0.7% over the last 30 days, indicating a consensus that the company may report better earnings than previously predicted, which typically correlates with price appreciation [7] Group 2 - FBIZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Financial Performance - Net income available to common shareholders for the year ended December 31, 2024, was $43.4 million, a 20.0% increase from $36.2 million in 2023[253] - Diluted earnings per common share increased to $5.20 for the year ended December 31, 2024, up 20.0% from $4.33 in the prior year[253] - PTPP adjusted earnings for the year ended December 31, 2024, increased to $60.4 million, up from $56.2 million in 2023, representing a growth of 4.3%[263] - The Corporation's net income for the year ended December 31, 2024, was $44.2 million, contributing to a $39.0 million increase in stockholders' equity[350] - Comprehensive income for 2024 was $46,537,000, up from $38,620,000 in 2023, reflecting a growth of 20%[392] Revenue and Income - Top line revenue grew by $9.6 million, or 6.6%, totaling $153.5 million for the year ended December 31, 2024, compared to $143.9 million in 2023[257] - Total operating revenue for 2024 reached $153.47 million, marking a $9.52 million increase or 6.6% from $143.94 million in 2023[265] - Total non-interest income decreased to $29.25 million in 2024, down by $2.06 million or 6.6% from $31.31 million in 2023[265] - The total non-interest income for 2024 was $29,251 thousand, a decrease from $31,308 thousand in 2023[390] Assets and Liabilities - Total assets increased by $345.4 million, or 9.8%, to $3.853 billion as of December 31, 2024, compared to $3.508 billion at the end of 2023[253] - Average total assets grew to $3.63 billion in 2024, an increase of $414.12 million or 12.9% from $3.21 billion in 2023[265] - Total liabilities increased by $306.4 million, or 9.5%, to $3.525 billion as of December 31, 2024, primarily due to an increase in deposits[303] - Total deposits rose by $310.4 million to $3.107 billion as of December 31, 2024, compared to $2.797 billion in 2023, marking an increase of 11.1%[341] Loans and Credit Quality - Average gross loans and leases increased by $349.0 million, or 13.2%, to $2.997 billion for the year ended December 31, 2024[260] - Period-end loans and leases receivable increased by $258.4 million, or 9.2%, to $3.077 billion at December 31, 2024, from $2.819 billion at December 31, 2023[317] - The total gross loans and leases receivable amounted to $3.113 billion as of December 31, 2024, compared to $2.850 billion in 2023[323] - The allowance for credit losses to gross loans and leases was 1.20% as of December 31, 2024, compared to 1.16% in 2023[331] - Non-accrual loans and leases increased by $7.8 million to $28.4 million at December 31, 2024, with a non-accrual ratio of 0.91%, up from 0.72% in 2023[331] Interest Income and Margin - Net interest income increased by $11.6 million, or 10.3%, to $124.2 million for the year ended December 31, 2024[258] - Net interest income rose to $124.21 million in 2024, reflecting an increase of $11.62 million or 10.3% from $112.59 million in 2023[265] - The net interest margin for 2024 was 3.66%, down from 3.78% in 2023, indicating a slight compression in profitability on interest-earning assets[268] - The yield on average interest-earning assets rose to 6.87% for the year ended December 31, 2024, up from 6.54% in 2023, primarily due to reinvestment in a higher rate environment[278] Expenses - Total non-interest expense for 2024 was $93.48 million, a rise of $4.91 million or 5.5% compared to $88.58 million in 2023[265] - Non-interest expense increased by $4.9 million, or 5.5%, to $93.480 million for the year ended December 31, 2024, with operating expenses rising by $5.2 million, or 6.0%[293] - Compensation expense increased by $2.0 million, or 3.4%, to $63.105 million for the year ended December 31, 2024, reflecting a $2.7 million increase in employee salaries[295] Shareholder Value - The return on average common equity (ROACE) was 14.73% for the year ended December 31, 2024, compared to 13.79% for 2023[259] - The return on average assets for 2024 was 1.20%, an increase from 1.13% in 2023, reflecting improved asset utilization[268] - Stockholders' equity increased to $328.6 million, representing 8.53% of total assets, up from $289.6 million or 8.26% as of December 31, 2023[350] Regulatory Compliance and Capital - The Bank's capital ratios met all applicable regulatory requirements as of December 31, 2024, including those imposed by Basel III[356] - The Corporation maintains a shelf registration allowing it to offer up to $75.0 million in various securities[363] Market and Economic Conditions - The company recognized unrealized holding losses of $2.2 million before income taxes due to an increase in interest rates for the year ended December 31, 2024[307] - The company reported unrealized gains on interest rate swaps of $5,046,000 in 2024, a significant recovery from unrealized losses of $(3,514,000) in 2023[392]