Summary of First Business Financial Services Conference Call Company Overview - **Company Name**: First Business Bank (Ticker: FBIZ) - **Market Capitalization**: Approximately $4 billion - **Business Model**: Focused on business banking and private wealth management without a retail banking branch network [2][3] Core Business Segments - **Business Banking**: - Total assets of approximately $4 billion, primarily in loans [4] - Operates in four markets: Madison, Milwaukee, Appleton (Wisconsin), and Kansas City (Kansas) [4] - Offers conventional commercial banking and treasury management services [4] - Provides company retirement plans (401(k)s) and five niche C&I lending businesses: equipment finance, asset-based lending, accounts receivable financing, floor plan financing, and SBA lending [5] - **Private Wealth Management**: - Manages approximately $3.8 billion in assets, focusing on financial planning, asset management, and trust administration [5] Employee and Client Engagement - **Employee Engagement**: - 90% participation in annual employee engagement survey, with an engagement score of 86%, exceeding the finance industry benchmark of 78% [7][8] - Recognized as a top workplace by USA TODAY for five consecutive years [8] - **Client Satisfaction**: - Overall client satisfaction at 91% and a Net Promoter Score of 70, significantly higher than the banking industry average [9][10] Strategic Planning - **Current Strategic Plan**: Initiated in 2024, involving 80 employees and focusing on 11 key strategies, including: - **Culture**: Emphasizing employee engagement and cultural integrity [11][12] - **Future-Ready Talent**: Attracting and retaining skilled employees, with a focus on technology adoption [13][14] - **Deposits**: Building strong relationships with businesses to secure deposits [15][16] - **Operational Excellence**: Implementing robotic process automation for efficiency [17] - **Profitability**: Balancing growth with profitability across business lines [18] Financial Performance Metrics - **Growth Targets**: Aiming for over 10% annual growth, with actual revenue growth at 12.3% this year [19] - **Efficiency Ratio**: Currently at 59.51, below the target of 60 [19] - **Return on Equity**: Achieved 17.3%, exceeding the target of 15% [19] - **Tangible Book Value Growth**: Recorded at 15.6% annually, surpassing the target of 10% [19] Risk Management - **Asset Liability Management**: Focused on maintaining a stable net interest margin and avoiding interest rate volatility through disciplined practices [20][21] - **Credit Risk Management**: Maintains credit costs at about one-third of the industry average, with a thorough underwriting process [24][25] Loan Portfolio Characteristics - **Composition**: 40% C&I commercial and industrial loans, 60% commercial real estate [30] - **Focus Areas**: Strong growth in the C&I portfolio, particularly in treasury management and private wealth relationships [31][33] - **Credit Quality**: Normalized credit environment with stable provisioning; minor issues noted in the transportation sector [34] Investment Opportunity - **Valuation**: Currently trading at a discount relative to peers despite strong performance metrics [29][36] - **Growth Consistency**: Emphasis on organic growth strategy with a proven track record of achieving targets [36] This summary encapsulates the key points discussed during the First Business Financial Services conference call, highlighting the company's unique business model, strategic focus, financial performance, and investment potential.

Core Insights - Oracle reported a record-breaking Remaining Performance Obligation (RPO) of $523 billion, reflecting a significant increase of $68 billion from the last quarter and a 433% increase year-over-year [3][4] - Despite the impressive RPO figures, Oracle's stock has seen a decline of 13.5%, raising questions about the sustainability of its growth strategy [2] - A substantial portion, 43%, of the RPO is expected to be implemented in 2026, amounting to $225 billion, which may help offset the company's planned capital expenditures of around $50 billion [4][10] Financial Performance - Oracle's cloud business, particularly its Oracle Cloud Infrastructure (OCI), has shown strong growth, with a year-over-year increase of 66%, and GPU-related cloud revenue surged by 177% [12] - The company is financing its growth through debt, which raises concerns about the sustainability of its core business [8][9] Competitive Landscape - Oracle is entering a competitive market dominated by major players like AWS, Azure, and Google Cloud, which have established themselves as early movers in AI and cloud services [7][15] - There are concerns that Oracle may be overestimating its ability to compete with these hyperscalers, especially given its late entry into the AI space [16] Market Dynamics - The RPO surge may not translate into immediate cash flow, as over 75% of these obligations are set to start within 24 months, leading to skepticism about the actual realization of these contracts [9][18] - Analysts are urged to focus on the profitability and sustainability of the businesses behind the $523 billion RPO commitments, rather than solely on Oracle's core operations [17][19]

Core Viewpoint - Block, Inc. (NYSE:XYZ) is experiencing strong momentum in its Square and Cash App segments, leading to a bullish outlook from UBS analyst Timothy Chiodo, who has set a price target of $90 and reiterated a "Buy" rating [2]. Group 1: Financial Performance and Projections - Despite seasonal trends indicating a potential deceleration in Gross Payment Volume (GPV), Block, Inc. has maintained its Q4 2025 outlook, which suggests robust growth in gross profit and adjusted operating income [3]. - The company projects mid-teens annual gross profit growth through 2028, aiming to reach $15.8 billion, alongside approximately 30% annual growth in adjusted operating income and adjusted EPS [5]. - By 2028, non-GAAP cash flow is expected to reach 25% of gross profit, translating to over $4.0 billion on a non-GAAP cash flow basis [5]. Group 2: Growth Drivers - The Cash App ecosystem is identified as a key growth driver, with management projecting a mid-teen gross profit CAGR over the next three years, supported by rising active users and enhanced monetization strategies [4]. - The Square ecosystem is also expected to scale further domestically and internationally, driven by investments in telesales and field sales [3]. Group 3: Strategic Initiatives - Block, Inc. has increased its share repurchase program by $5 billion, reflecting management's confidence in the company's financial trajectory [6]. - The company is leveraging Artificial Intelligence (AI) to enhance its technology offerings across various platforms, including Square, Cash App, Afterpay, Bitkey, and Proto, thereby supporting global commerce and financial services [6].

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Core Insights - Alphabet is emerging as a significant player in the AI chip market, particularly with its tensor processing units (TPUs), which pose a new challenge to Nvidia's dominance in the sector [3][12] - The AI infrastructure market is projected to reach $7 trillion by 2030, with substantial investments from hyperscalers, indicating robust demand for both Nvidia's GPUs and Alphabet's TPUs [14] Group 1: Alphabet's Position in AI Chip Market - Alphabet's TPUs are gaining traction and are being utilized by major tech companies, including OpenAI and Meta Platforms, highlighting their growing demand [8][9] - TPUs are specialized hardware designed for deep learning, contrasting with Nvidia's versatile GPUs that support a wide range of AI applications [5][6] - The introduction of TPUs enhances Google's cloud ecosystem, making it a compelling offering for clients seeking AI solutions [9] Group 2: Competitive Landscape - Despite the rise of TPUs, many users, including Google, continue to rely on Nvidia's GPUs, indicating that TPUs are not replacing GPUs but rather complementing them [12][16] - Major deals involving Nvidia's GPUs, such as OpenAI's $38 billion contract with AWS and Anthropic's $30 billion agreement with Microsoft Azure, demonstrate the ongoing reliance on Nvidia's technology [10][11] - The AI chip market is characterized by multiple players, suggesting it is not a winner-take-all scenario, which may mitigate concerns for Nvidia investors [14][17]

Group 1: Economic Outlook and Labor Market - The unemployment rate has risen to 4.4%, with job gains slowing significantly, attributed to lower immigration and labor force participation [2][16] - Fed Chair Jerome Powell expressed uncertainty about the impact of AI on the economy, noting potential productivity gains of about 2% but indicating that AI has not yet translated into labor market changes [10][11] - The Fed's recent interest rate cut of 25 basis points reflects concerns over labor market weakness, which could escalate into broader economic issues [17][29] Group 2: Corporate Leadership Changes - Coca-Cola is set to appoint a new CEO after James Quincy's eight-year tenure, with a focus on innovation in a competitive industry [4][31] - The new CEO will face challenges in maintaining innovation and adapting to changing consumer behaviors, particularly in the context of AI and health trends [5][34] - The transition in leadership at Coca-Cola is part of a broader trend of CEO changes across major consumer-facing companies, indicating a shift in strategic direction [34][40] Group 3: AI and Technology Sector - Oracle's stock has faced significant declines, with concerns about the company's ability to fund its AI backlog and the associated debt [6][22] - Analysts are scrutinizing AI companies more closely, as rising capital costs and market sentiment shift [25][26] - Nvidia's dominance in the AI sector is under threat from competitors like Google, which has developed its own advanced AI technologies [60]

Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The market remains concentrated with a few mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Performance - Bio-Techne Corporation (NASDAQ:TECH) has a market capitalization of $9.478 billion and focuses on life science reagents, instruments, and services [2] - The one-month return for Bio-Techne was 0.13%, but it experienced a significant decline of 20.67% over the past 52 weeks, closing at $60.83 per share on December 10, 2025 [2] - In the fiscal first quarter of 2026, Bio-Techne generated revenues of $286.6 million, reflecting a 1% year-over-year decline on both an organic and reported basis [4] Fund Strategy and Sector Exposure - The fund's overweight position in Health Care, particularly in Bio-Techne, negatively impacted its relative performance in the first nine months of 2025 due to uncertainties in the biopharmaceutical funding environment [3] - The fund has taken advantage of recent weaknesses in Bio-Techne to increase its holdings in the company [3] - Despite acknowledging Bio-Techne's potential, the fund believes that certain AI stocks present greater upside potential with less downside risk [4] Hedge Fund Interest - Bio-Techne was held by 43 hedge fund portfolios at the end of the third quarter, an increase from 37 in the previous quarter [4]

Core Insights - Robo-advisors provide a low-cost alternative to human financial advisors, particularly appealing to investors with smaller portfolios and those who are digitally savvy [2][3][5] - The robo-advisor market is growing due to the increasing number of millennial and Gen Z investors who prefer technology-driven financial management and personalized services [2][3] - Robo-advisors typically charge lower fees compared to traditional advisors, with median fees around 0.25% as of 2024, while human advisors often charge around 1.0% [1][4] Fee Structures - Human advisors predominantly charge AUM fees, with 92% incorporating them in some form, while robo-advisors have a median fee of about 0.25% [1][2] - Robo-advisors may have additional fees related to underlying funds, account maintenance, or trading, which should be considered beyond the flat monthly fee [3][6] Accessibility and Appeal - Robo-advisors are accessible with low minimum investment requirements, with some platforms allowing accounts to be opened with as little as $50 [4][5] - They cater to both beginners seeking a hands-off approach and experienced investors comfortable with online portfolio management [5][6] Performance and Value - A study by Vanguard indicated that investors using human advisors estimated an average annual return of 15%, while those with digital advisors estimated 24%, though younger, more aggressive investors skewed the results [9] - Human advice is perceived to add more incremental portfolio value compared to digital-only advice, with a 5% perceived value-add for human advice versus 3% for digital [9] Legal and Ethical Considerations - Robo-advisors may face legal challenges regarding fiduciary duties, as algorithms could potentially prioritize company interests over client interests [9][10] - Hybrid models that combine robo-advisory services with human guidance are emerging, offering a balance of automation and personal support [10]

2025 delivered no shortage of drama across the global economic, business, and financial landscape. From DeepSeek's shockwaves to tariff battles and the relentless march of AI reshaping boardrooms and stock charts, the year had it all. ...

All right. I think all day long we're going to talk about whether this was a hawkish cut. Was it a neutral cut. Was it a dovish cut.What was your take. I I felt like Jac Powell's comments about the the path forward not really being clear. That was a bit hawkish, but at the same time, the bond buying on the short end that seems a bit doubbish.Seems like it has almost the same effect as a rate cut. How did you view it. >> Well, our economists think that it was of course uh less less hawkish than the market ha ...