First Business(US:FBIZ)2026-01-29 21:05Financial Performance - Quarterly net income available to common shareholders was $13.1 million, or earnings per share (EPS) of $1.58, compared to $14.2 million, or $1.70 per share, in the previous quarter[1] - Net income for the fourth quarter of 2025 was $13,333 thousand, a decrease of 7.5% from $14,415 thousand in the same quarter of 2024[37] - Basic earnings per share for the year ended December 31, 2025, were $5.94, up from $5.20 in 2024, indicating a growth of 14.2%[37] Loan and Deposit Growth - Core deposits grew by $80.9 million, or 12.5% annualized, from the linked quarter, and $276.6 million, or 11.5%, from the fourth quarter of 2024[3] - Total loans increased by $38.6 million, or 4.6% annualized, from the previous quarter, and $261.4 million, or 8.4%, from the fourth quarter of 2024[3] - Total deposits reached $3,380,415 thousand as of December 31, 2025, an increase of 8.8% from $3,107,140 thousand a year prior[36] - Total gross loans and leases receivable increased to $3,375,227 thousand as of December 31, 2025, up from $3,113,850 thousand a year earlier, representing a growth of 8.43%[51] - Total period-end core deposits grew by $276.6 million, or 11.5%, to $2.673 billion, while the average rate paid decreased by 34 basis points to 2.64%[25] Interest Income and Margin - The net interest margin was 3.53%, down from 3.68% in the previous quarter, primarily due to non-accrual interest reversals[3] - Net interest income increased by $1.6 million, or 4.9%, to $34.8 million, with a 7.3% increase when excluding non-accrual interest activity[17] - Net interest income for the year ended December 31, 2025, was $136,690 thousand, an increase from $124,205 thousand in 2024 and $112,588 thousand in 2023[41] - The yield on average interest-earning assets decreased by 46 basis points to 6.38%, with a net interest margin decrease of 24 basis points to 3.53%[22] Asset Quality - Non-performing assets rose to $43.9 million, or 1.07% of total assets, primarily due to the downgrade of $20.4 million in commercial real estate loans[15] - Provision for credit losses was $1.9 million, up from $1.4 million in the previous quarter, reflecting net charge-offs and loan growth[7] - Non-accrual loans and leases increased to $43,855,000 as of December 31, 2025, from $28,367,000 a year earlier[48] - Net charge-offs for the three months ended December 31, 2025, were $2,545,000, up from $942,000 in the same period of 2024[49] Efficiency and Expenses - The efficiency ratio improved to 56.61% from 57.44% in the previous quarter, indicating enhanced operating efficiency[3] - Compensation expense increased by $1.6 million, or 10.4%, to $17.2 million, reflecting a rise in average FTEs and salary increases[30] - Efficiency ratio improved to 56.61% for the three months ended December 31, 2025, from 56.94% in 2024[47] Dividends and Shareholder Returns - The quarterly cash dividend was increased by 17% to $0.34 per share, marking the 14th consecutive annual increase[3] - The Company announced a quarterly cash dividend of $0.34 per share, representing a 17% increase over the previous quarter's dividend[28] - The company declared dividends of $0.29 per share for the fourth quarter of 2025, consistent with the previous quarter and an increase from $0.25 in the same quarter of 2024[37] Capital and Liquidity - Total assets increased to $4,081,887 thousand as of December 31, 2025, up from $3,853,215 thousand a year earlier, representing a growth of 5.9%[36] - Total liabilities increased to $3,710,302 thousand as of December 31, 2025, from $3,524,626 thousand a year earlier, reflecting a rise of 5.3%[36] - Total liquidity increased to $2,210,437 thousand as of December 31, 2025, compared to $1,909,248 thousand a year earlier, representing a growth of 15.77%[53] - Tangible common equity increased to $347,608 thousand as of December 31, 2025, compared to $304,685 thousand a year earlier, marking a growth of 14.05%[57]