First Business(US:FBIZ)2025-10-31 20:06Financial Performance - Net income available to common shareholders was $14.2 million, or diluted earnings per share of $1.70, for the three months ended September 30, 2025, compared to $10.3 million, or diluted earnings per share of $1.24, for the same period in 2024[134]. - Pre-tax, pre-provision adjusted earnings for the three months ended September 30, 2025, were $18.9 million, compared to $15.4 million in the same period in 2024[134]. - PTPP adjusted earnings for Q3 2025 were $18.9 million, up 22.1% from $15.4 million in Q3 2024[143]. - For the nine months ended September 30, 2025, adjusted earnings were $51.1 million, a 19.6% increase from $42.7 million in the same period of 2024[143]. Revenue Growth - Top line revenue increased by $6.5 million, or 17.0%, for the three months ended September 30, 2025, driven by a 12.5% increase in net interest income and a 36.5% increase in non-interest income[136]. - Net interest income for Q3 2025 reached $34.9 million, up 12.5% from $31.0 million in Q3 2024[146]. - Total non-interest income for Q3 2025 was $9.6 million, a significant increase of 36.5% from $7.1 million in Q3 2024[146]. - The company reported a total operating revenue of $44.3 million for Q3 2025, a 16.3% increase from $38.1 million in Q3 2024[146]. Asset and Loan Growth - Total assets increased by $181.6 million, or 6.3% annualized, to $4.035 billion as of September 30, 2025, compared to $3.853 billion at December 31, 2024[139]. - Period-end gross loans and leases receivable increased by $222.8 million, or 9.5% annualized, to $3.337 billion as of September 30, 2025[139]. - Average total assets increased to $4.04 billion in Q3 2025, up 11.2% from $3.64 billion in Q3 2024[146]. - Total loans and leases receivable for the nine months ended September 30, 2025, amounted to $3,240,908, up from $2,961,014 in 2024, reflecting a growth of 9.45%[153]. Non-Performing Assets and Credit Quality - Non-performing assets were $23.5 million, or 0.58% of total assets, as of September 30, 2025, down from $28.4 million, or 0.74% of total assets, at December 31, 2024[139]. - The allowance for credit losses was 1.15% of total loans as of September 30, 2025, compared to 1.20% at December 31, 2024[139]. - The ratio of non-accrual loans to gross loans and leases was 0.70% as of September 30, 2025, down from 0.91% at December 31, 2024[212]. - The total allowance for credit losses was $36.7 million as of September 30, 2025, compared to $35.8 million at December 31, 2024[197]. Efficiency and Cost Management - Efficiency ratio improved to 57.4% for the three months ended September 30, 2025, compared to 59.4% for the same period in 2024[142]. - Total non-interest expense for Q3 2025 was $25.7 million, an increase of 11.2% compared to $23.1 million in Q3 2024[146]. - Non-interest expense increased by $2.6 million, or 11.2%, for the three months ended September 30, 2025, primarily due to an increase in compensation expense[174]. - Compensation expense increased by $2.2 million, or 14.8%, for the three months ended September 30, 2025, attributed to higher average full-time equivalent employees and merit increases[176]. Capital and Liquidity - Total stockholders' equity increased by $29.7 million, or 12.1%, to $358.3 million as of September 30, 2025, primarily due to retained earnings[186]. - The Corporation had a net cash inflow of $45.6 million from operating activities for the nine months ended September 30, 2025, which included a net income of $37.0 million[237]. - Total liquidity as of September 30, 2025, was $2,068,850,000, compared to $2,004,058,000 as of June 30, 2025, showing a quarter-over-quarter increase of 3.4%[231]. - The capital ratios of the Bank met all applicable regulatory capital adequacy requirements as of September 30, 2025, including the capital conservation buffer imposed by Basel III[229]. Deposits and Borrowings - Total deposits as of September 30, 2025, rose by $225.9 million, or 9.7% annualized, to $3.333 billion compared to $3.107 billion at December 31, 2024[199]. - Core deposits increased by $195.7 million, or 10.9% annualized, to $2.592 billion as of September 30, 2025, from $2.396 billion at December 31, 2024[199]. - FHLB advances and other borrowings decreased by $53.4 million, or 16.7%, to $266.7 million as of September 30, 2025, from $320.0 million at December 31, 2024[201]. - Uninsured deposits increased to $1.100 billion, or 33.0% of total deposits, as of September 30, 2025, compared to $980.3 million, or 31.5%, at December 31, 2024[199].