First Business Bank's Q2 net income rises to $11.2 mln, revenue up 10%

Overview

• First Business Bank's Q2 net income rises to $11.2 mln from $10.2 mln yr ago

• Company's revenue grows 10% yr/yr, driven by loan and deposit growth

• Tangible book value per share increases 13.6% from prior yr

Outlook

• Company expects 2025 effective tax rate between 16% and 18%

• Company maintains long-term target for net interest margin at 3.60%-3.65%

• Company sees continued growth in SBA loan production

• Company notes economic outlook deterioration affecting credit loss provisions

Result Drivers

• LOAN AND DEPOSIT GROWTH - Loans grew by 8.4% annualized, and core deposits increased by 11.4% annualized, supporting revenue growth

• ASSET QUALITY - Strong asset quality and operational efficiency contributed to a 17% growth in net income for the first half of 2025

• PRIVATE WEALTH MANAGEMENT - Expansion in Private Wealth assets under management to $3.731 bln generated record fee income, comprising 49% of year-to-date total non-interest income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Business Financial Services Inc is $58.00, about 7.8% above its July 23 closing price of $53.50

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw4btJw4a