First Business Financial Services (FBIZ) Q4 2025 earnings summary

Executive summary

• Achieved 14% year-over-year EPS growth in 2025, surpassing long-term goals, with double-digit annual growth in pre-tax, pre-provision earnings and a 17% increase in the quarterly dividend, marking the 14th consecutive annual raise.

• Private wealth business expanded, generating record annuity-like fee income and contributing 46% of year-to-date non-interest income.

• Strategic focus on relationship banking, deposit-centric growth, and niche lending businesses supported robust performance.

• CEO succession plan announced: Corey Chambas to retire May 2026, David Seiler to succeed as CEO.

Financial highlights

• Net interest income grew 10.1% for the full year to $136.7 million, meeting double-digit growth goals.

• Core deposits grew 12.5% annualized from the previous quarter and 11.5% year-over-year, improving funding mix to 74.7%.

• Loans increased 8.4% year-over-year, with full-year normalized loan growth at 11%.

• Efficiency ratio improved to 56.61% for Q4 and 58.78% for the year, reflecting positive operating leverage.

• Tangible book value per share rose 13.7% year-over-year to $41.75.

Outlook and guidance

• Targeting double-digit annual growth in loans, deposits, and revenue for 2026, with >15% ROATCE and ≥10% annual TBV and revenue growth by 2028.

• Net interest margin targeted in the 3.60%-3.65% range, with future performance dependent on interest rate changes and fee activity.

• Effective tax rate expected between 16% and 18% for 2026.