Latest news with #FirstBusinessFinancialServicesInc
Yahoo
28-04-2025
- Business
- Yahoo
First Business Financial Services Inc (FBIZ) Q1 2025 Earnings Call Highlights: Strong Earnings ...
Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Business Financial Services Inc (NASDAQ:FBIZ) reported a strong quarter with a 23% increase in pre-tax, pre-provision, adjusted earnings compared to the previous year. The company achieved double-digit core deposit growth, outpacing loan expansion, which supports their strategic plan for 10% annual growth. Net interest margin remained strong and stable, contributing to solid financial performance. Non-performing assets declined, indicating improved asset quality. Tangible book value per share grew by 14%, reflecting enhanced shareholder value. There is rising uncertainty related to changes in US trade policy, which could potentially impact economic conditions and growth. The company experienced increased net charge-offs in the equipment finance portfolio, particularly in the transportation sector. Ongoing variability in fee income, particularly from slot fees and SBIC fund returns, could impact revenue consistency. The economic outlook shows modest deterioration, which could affect future loan growth and asset quality. The company faces competitive pressures on both loan yields and deposit costs, which could impact margins if conditions change. Q: What were the new loan yields in the first quarter, and have there been any changes in spreads? A: New loan yields were consistent with the prior quarter, with no significant changes in spreads. Typically, pricing ranges from 225 to 275 basis points depending on the credit type. (Unidentified_6) Q: How are tariffs impacting your clients, and which sectors are most exposed? A: There is some uncertainty among clients, particularly those with international exposure, but no significant impact has been observed yet. The bank is focusing on clients with foreign vendors and contractors. (Unidentified_3) Q: Can you explain the increase in net charge-offs in the equipment finance sector? A: The increase was a one-quarter anomaly due to accelerated charge-offs in the equipment finance portfolio, particularly in the transportation sector. This was already reserved for, so it had minimal impact on the provision line. (Unidentified_9) Q: What is the outlook for fee income, especially after the reclassification of loan fees? A: The reclassification is permanent, and the bank expects to maintain or grow fee income through various channels such as SBA, private wealth, and SBIC fund investments. (Unidentified_6) Q: How is the bank managing its loan-to-deposit ratio, and what are the targets? A: The bank aims to keep the loan-to-deposit ratio below 100% for better optics, favoring brokered CDs over home loan advances for match funding. The focus is on maintaining 75% core funding of total bank funding. (Unidentified_7) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Why First Business Financial Services Inc (FBIZ) is Skyrocketing So Far In 2025
We recently compiled a list of the . In this article, we are going to take a look at where First Business Financial Services Inc (NASDAQ:FBIZ) stands against the other bank stocks. The banking sector is roaring back to life so far in 2025 as the economy has been stronger than what most analysts have expected. Banks are also shedding their conservative reputations and are starting to take more risks and spend on growth, especially as most companies are experimenting with AI. Plus, this is coinciding with a worldwide rate cut cycle as central banks in most countries ease monetary policy. Analysts are also bullish and have raised their price targets, whereas many retail and institutional investors are buying back in. The bank stocks benefiting the most from this are likely to be the strongest. Methodology For this article, I screened the top-performing bank stocks year-to-date. Stocks that I have covered recently will be excluded from this list. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). A financial adviser in a tie using a modern laptop to conduct a commercial bank transaction. Number of Hedge Fund Holders In Q3 2024: 5 First Business Financial Services Inc (NASDAQ:FBIZ) is a bank holding company for First Business Bank. The stock is up markedly so far in 2025 due to record Q4 2024 earnings and optimistic guidance for 2025. It reported Q4 2024 net income of $14.4 million, which is up 47.5% year-over-year. Plus, adjusted EPS came in at $1.43, with management reaffirming targets for 10% annual revenue and balance sheet growth in 2025. It raised its quarterly dividend by 16% to $0.29/share (2.25% yield). Private Wealth assets under management surged 16.6% YoY to $3.4 billion. The consensus price target of $58.75 implies 4.26% upside. FBIZ stock is up 21.73% year-to-date. Overall FBIZ ranks 8th on our list of the bank stocks that are skyrocketing so far in 2025. While we acknowledge the potential of FBIZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FBIZ but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and Disclosure: None. This article was originally published at Insider Monkey.
