First Business Financial Services, Inc. has recently released its 10-Q report. The company operates as the bank holding company for First Business Bank, providing commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers a range of services including commercial real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing, and more.
In the 10-Q report, First Business Financial Services, Inc. reported net income available to common shareholders of $11.2 million, or diluted earnings per share of $1.35, for the three months ended June 30, 2025, compared to $10.2 million, or diluted earnings per share of $1.23, for the same period in 2024. For the six months ended June 30, 2025, net income available to common shareholders totaled $22.2 million, or diluted earnings per share of $2.66, compared to $18.9 million, or diluted earnings per share of $2.26, for the same period in 2024.
The company reported an annualized return on average assets ("ROAA") of 1.14% for the three months ended June 30, 2025, compared to 1.14% for the same period in 2024. The return on average tangible common equity ("ROATCE") was 14.17% for the three months ended June 30, 2025, compared to 14.73% for the same period in 2024. Additionally, the company reported pre-tax, pre-provision ("PTPP") adjusted earnings of $16.0 million for the three months ended June 30, 2025, compared to $14.1 million for the same period in 2024.
Other key financial highlights include a 7.8% annualized increase in total assets to $4.003 billion at June 30, 2025, from $3.853 billion at December 31, 2024. Gross loans and leases receivable increased by 8.9% annualized to $3.252 billion as of June 30, 2025, compared to $3.114 billion as of December 31, 2024. Non-performing assets were $28.7 million and 0.72% of total assets as of June 30, 2025, compared to $28.4 million and 0.74% of total assets as of December 31, 2024. The allowance for credit losses, including reserve for unfunded credit commitments, was 1.18% of total loans as of June 30, 2025, compared to 1.20% at December 31, 2024.
First Business Financial Services, Inc. reported an increase in top line revenue for the three and six months ended June 30, 2025, driven by an increase in net interest income and non-interest income. The efficiency ratio measured 61.0% and 60.6% for the three and six months ended June 30, 2025, compared to 62.7% and 63.2% for the three and six months ended June 30, 2024, indicating positive quarterly operating leverage. Furthermore, PTPP adjusted earnings for the three and six months ended June 30, 2025 were $16.0 million and $32.2 million, compared to $14.1 million and $27.3 million for the three and six months ended June 30, 2024. Following these announcements, the company's shares moved -5.67%, and are now trading at a price of $48.59. For the full picture, make sure to review FIRST BUSINESS FINANCIAL SERVICES, INC.'s 10-Q report.
