First Business Financial Services, Inc. (FBIZ) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

First Business Bank finished 2025 with another outstanding quarter. Our team continued to produce high quality growth, particularly on the deposit side. Core net interest margin remained resilient and our revenue streams were diversified and strong. Notably, our private wealth business continued to expand, delivering record and significant annuity-like fee income. And our focus on positive operating leverage again drove improved efficiency. These highlights contributed to strong profitability for the quarter and year as pre-tax, pre-provision earnings grew nearly 15% over 2024, return on average tangible common equity was over 15% for the year, and most importantly for shareholders, tangible book value per share grew 14% from a year ago. I'd also like to draw your attention to earnings per share, which you can see on slide four of our earnings supplement. EPS growth is perhaps the most universal metric across industries, and our track record is outstanding. First Business Bank's 2025 EPS grew 14% over 2024, exceeding our long-term annual goal of 10% earnings growth. Over the past 10 years, we've grown earnings per share at 12% compound annual rate. Going back to the year of our IPO in 2005, our 20-year compound average growth annual EPS growth is 10%, a very long period of outstanding performance. We know how to execute to achieve our double-digit growth mandate, and we aim to continue doing so in 2026 and beyond. On the strength of these results and expectations for continued financial success, our board of directors approved a 17% increase to our quarterly cash dividend. We are very pleased with the positive momentum of fourth quarter results, which Dave will discuss more now. Dave? Thank you, Corey. In the fourth quarter, we again delivered growth, producing stron...