First Business Financial Services Inc. $(FBIZ)$ reported its fourth quarter (Q4) 2025 results, highlighting a continued focus on core deposit growth, efficiency improvements, and shareholder returns. As of Q4 2025, the company’s total assets stood at USD 4.10 billion, with its Private Wealth segment managing USD 3.80 billion in assets. Core deposits grew by 12.5% annualized from the previous quarter and 11.5% year-over-year, with the core deposit funding mix improving to 74.7%. Loan balances increased by 4.6% annualized from the linked quarter and 8.4% year-over-year, although loan growth was affected by elevated payoffs in the second half of 2025. The net interest margin for the quarter was 3.53%, including a 10 basis point impact from non-accrual reversals. Excluding this item, the net interest margin was 3.63%. The efficiency ratio improved to 56.61% for Q4 2025, and the full-year efficiency ratio was 58.78%, compared to 60.61% in 2024, marking the fourth consecutive year of positive operating leverage. Tangible book value per share increased by 15.9% annualized from the linked quarter and 13.7% year-over-year. The company raised its quarterly cash dividend by 17% to USD 0.34 per share, marking the 14th consecutive annual increase. Pre-tax, pre-provision earnings for the full year grew by 15%, while net income increased by 14% year-over-year. First Business Financial Services Inc. continues to emphasize its scalable business model, digital capabilities, and a strategic focus on Midwest commercial banking markets, with its niche commercial and industrial businesses serving clients nationally.

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