First Business(US:FBIZ)2025-10-30 20:06Financial Performance - Third Quarter 2025 net income available to common shareholders was $14.2 million, or earnings per share (EPS) of $1.70, compared to $11.2 million, or $1.35 per share in the second quarter of 2025[1] - Pre-tax, pre-provision adjusted earnings grew to $18.9 million, up 17.7% from the linked quarter[4] - Net income for the three months ended September 30, 2025, reached $14,393 thousand, a 36.5% increase from $10,526 thousand in the same quarter of 2024[38] - Total operating revenue for Q3 2025 was $44,292,000, an increase of 16.3% compared to $38,071,000 in Q3 2024[58] - Basic earnings per share for the three months ended September 30, 2025, were $1.70, compared to $1.24 for the same period in 2024, representing a 37.1% increase[38] Loan and Deposit Growth - Loans increased by $84.6 million, or 10.4% annualized, from the second quarter of 2025, and $286.4 million, or 9.4%, from the third quarter of 2024[4] - Core deposits grew by $59.0 million, or 9.3% annualized, from the linked quarter, and $209.4 million, or 8.8%, from the third quarter of 2024[4] - Total period-end loans and leases receivable increased by $286.4 million, or 9.4%, to $3.337 billion[26] - Total period-end core deposits grew by $209.4 million, or 8.8%, to $2.592 billion, with the average rate paid decreasing by 45 basis points to 2.89%[27] - Total deposits rose to $3,333,071 thousand as of September 30, 2025, compared to $2,969,947 thousand a year ago, marking an increase of 12.2%[37] Income and Revenue - Net interest income increased by $1.1 million, or 3.3%, to $34.9 million from the second quarter of 2025[7] - Non-interest income rose by $2.4 million, or 32.9%, to $9.6 million[9] - Net interest income increased by $3.9 million, or 12.5%, to $34.9 million compared to the third quarter of 2024[21] - Non-interest income rose by $2.6 million, or 36.5%, to $9.6 million, driven by higher average gross loans and increased fees[23] - Total non-interest income for Q3 2025 was $9,640,000, a 36.5% increase from $7,064,000 in Q3 2024[58] Asset Quality - Non-performing assets decreased by $5.2 million to $23.5 million, or 0.58% of total assets, improving from 0.72% in the prior quarter[17] - The allowance for credit losses as a percent of total gross loans and leases was 1.15%, compared to 1.18% in the prior quarter[18] - The provision for credit losses for the three months ended September 30, 2025, was $1,440 thousand, down from $2,087 thousand in the same quarter of 2024, indicating improved credit quality[38] - Non-accrual loans and leases as of September 30, 2025, were $23,513 thousand, representing 0.70% of total gross loans and leases[44] Operational Efficiency - The efficiency ratio improved to 57.44% for the three months ended September 30, 2025, compared to 60.97% in the previous quarter[43] - The efficiency ratio improved to 8.31% as of September 30, 2025, compared to 8.04% in the previous quarter, indicating better operational efficiency[56] Capital and Liquidity - Total assets increased to $4,034,845 thousand as of September 30, 2025, up from $3,715,724 thousand a year earlier, representing a growth of 8.6%[37] - Total liabilities stood at $3,676,526 thousand as of September 30, 2025, an increase from $3,403,742 thousand a year earlier, reflecting a growth of 8.0%[37] - Tangible common equity to tangible assets ratio was 8.31% as of September 30, 2025, up from 7.78% a year earlier, showing a strengthening capital position[56] - Total liquidity as of September 30, 2025, was $2,068,850,000, reflecting an increase from $2,004,058,000 in the previous quarter[49] Expense Management - Compensation expense increased by $2.2 million, or 14.8%, to $17.4 million, reflecting a rise in average FTEs and annual merit increases[31] - Computer software expense increased by $218,000, or 13.6%, to $1.8 million due to ongoing investment in innovative technology[31]