Financial Data and Key Metrics Changes - For Q4 2025, the company reported net income of $16.3 million or $1.45 per diluted common share, an increase from $14.9 million or $1.27 per diluted common share in Q4 2024 [3][10] - Full-year net income for 2025 totaled $71 million or $6.19 per diluted common share, up from $61.8 million or $5.26 per diluted common share in 2024 [10][18] - Net interest income for Q4 2025 was $49.2 million, a slight decrease of $371,000 or 0.7% compared to Q4 2024 [4][11] - Non-interest income increased to $7.2 million in Q4 2025 from $6.9 million in Q4 2024 [13][14] - Non-interest expense decreased to $36 million in Q4 2025, down 2.6% from $36.9 million in Q4 2024 [8][14] Business Line Data and Key Metrics Changes - Net loans receivable at year-end totaled $4.336 billion, a decline of $333.5 million or 7.1% from the previous year, primarily due to elevated payoff activity [5][16] - Total deposits decreased by $122.8 million or 2.7% to $4.48 billion at year-end 2025, driven by a decline in brokered deposits [6][17] - Core deposits remained stable, with a notable increase in interest-bearing checking accounts by $75 million [7][17] Market Data and Key Metrics Changes - Non-performing assets represented 0.15% of total assets at year-end, consistent with both the linked quarter and prior year quarter [7][17] - The company maintained strong liquidity with cash and cash equivalents totaling $189.6 million and access to approximately $1.63 billion in additional borrowing capacity [16][18] Company Strategy and Development Direction - The company remains focused on preserving net interest margins, protecting credit quality, controlling non-interest expenses, and opportunistically repurchasing stock [3][9] - The management emphasized a conservative underwriting posture and maintaining strong capital and liquidity levels to navigate economic challenges [9][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in loan growth due to elevated payoffs but expressed confidence in the strength of their loan portfolio and ongoing efforts to originate new loans [30][39] - The company does not expect significant changes in net interest margins in the near term, with a slight bias towards potential increases depending on market conditions [28][29] Other Important Information - Stockholders' equity increased to $636.1 million at year-end 2025, representing 11.4% of total assets, with a book value per common share of $57.50 [18][19] - The board declared a regular quarterly cash dividend of $0.43 per common share, consistent with the previous quarter [20] Q&A Session Summary Question: Margin outlook for 2026 - Management noted that they performed better than expected in Q4 2025, managing funding costs effectively, but did not anticipate significant margin increases moving forward [24][25][28] Question: Loan growth expectations - Management indicated that loan growth would remain challenging due to ongoing payoffs, but they are actively generating new loans [30][32][39] Question: Expense expectations for 2026 - Management acknowledged that expenses may increase due to annual salary adjustments and payroll tax resets [33]

Core Viewpoint - The article discusses the current sentiment in the precious metals market based on the CFTC data, highlighting the implications of potential interest rate changes by the Federal Reserve and the impact on investment strategies for precious metals [2][27]. Group 1: Market Sentiment and Federal Reserve Actions - Due to the U.S. government shutdown, CFTC data on futures market positions is only updated until November 18 [2]. - The market perceives a 24.4% chance of a rate cut in January, 44% in March, and 63% in April, prompting investors to consider their strategies during the interim period [2][27]. - The next potential Federal Reserve chairpersons, Kevin Hassett and Kevin Warsh, both support further rate cuts, but Warsh advocates for a balance sheet reduction that could negatively impact cryptocurrencies and stock markets, potentially pressuring gold prices [2][27]. Group 2: Fund Positions in Precious Metals - As of November 18, managed net long positions in COMEX gold decreased by 7.9%, while silver and platinum saw declines of 11.1% and 13.8%, respectively [3]. - Year-to-date, net long positions in U.S. futures for gold have dropped by 47%, while silver has increased by 24% [8][9]. - The overall sentiment indicates a significant reduction in long positions across various metals, with a notable increase in short positions for metals other than gold [7]. Group 3: Price Dynamics and Investment Strategies - The gold-to-North American mining stock ratio has decreased by 3.3% recently, indicating that mining stocks have underperformed compared to gold itself [20]. - The gold-silver ratio, a measure of market sentiment, was at 69.38, down 3.6% week-over-week, reflecting a 23.6% decline year-to-date [25]. - The article suggests that if gold prices continue to rise while mining stocks decline, it may signal caution for investors [21]. Group 4: Future Considerations - The article raises concerns about the Federal Reserve's potential actions if inflation pressures resurface while interest rates are being cut [28]. - The complexity of the market dynamics necessitates close monitoring of the new chairperson's statements for clearer expectations regarding asset prices [27].

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.