First Business Financial Services ( (FBIZ) ) has released its Q4 earnings. Here is a breakdown of the information First Business Financial Services presented to its investors.
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First Business Financial Services, Inc., operating as First Business Bank, is a financial institution headquartered in Madison, Wisconsin, specializing in business banking, commercial banking, specialty finance, private wealth management, and bank consulting services. The bank is known for its focused approach, delivering unmatched expertise and responsiveness through its various service lines.
In its latest earnings report, First Business Bank announced a record net income for the fourth quarter of 2024, reaching $14.2 million. This achievement was driven by robust operating revenue and a strong net interest margin, alongside a nearly 10% loan growth, which underscored the bank’s strategic execution in 2024. The bank also reported a significant 13% increase in fee income, contributing to an improved efficiency ratio.
Key financial highlights from the report include a net interest margin of 3.77%, up from the previous quarter, and a 12.3% increase in operating revenue year-over-year. The bank’s private wealth management sector saw an expansion, with assets under management reaching a record $3.419 billion. Additionally, the company’s pre-tax, pre-provision income climbed to $17.7 million, marking a substantial increase from both the previous quarter and the same quarter the prior year.
The bank’s strong financial performance was further reflected in a 23% annualized growth in tangible book value per share. Although the reported EPS was bolstered by tax and SBA recourse reserve benefits, even excluding these, the adjusted EPS saw a notable rise compared to both the preceding quarter and the same period in the previous year.
Looking ahead, First Business Bank remains optimistic about its growth trajectory, with management confident in achieving 10% growth in both its balance sheet and top-line revenue in 2025. The bank is focused on executing its strategic plan to continue delivering strong financial performance and shareholder value.
