First Business Financial Services, Inc. has recently released its 10-Q report, providing an insight into its financial performance for the three and nine months ended September 30, 2025. The company operates as a bank holding company for First Business Bank, offering 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. Its services include 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 $14.2 million for the three months ended September 30, 2025, compared to $10.3 million for the same period in 2024. For the nine months ended September 30, 2025, the net income available to common shareholders totaled $36.3 million, compared to $29.2 million for the same period in 2024. The annualized return on average assets for the three months ended September 30, 2025, measured 1.40%, compared to 1.13% for the same period in 2024. For the nine months ended September 30, 2025, the annualized return on average assets measured 1.23%, compared to 1.08% for the same period in 2024.
The company's top line revenue, which includes net interest income and non-interest income, totaled $44.5 million for the three months ended September 30, 2025, compared to $38.1 million for the same period in 2024. For the nine months ended September 30, 2025, the top line revenue totaled $126.4 million, compared to $112.3 million for the same period in 2024. The increase in top line revenue was primarily driven by an increase in net interest income and non-interest income, with net interest income being primarily driven by an increase in average loans and leases outstanding, as well as an increase in fees in lieu of interest (FILOI).
The efficiency ratio for the three and nine months ended September 30, 2025, measured 57.4% and 59.5%, compared to 59.4% and 62.0% for the three and nine months ended September 30, 2024. The increase in top line revenue exceeded the increase in operating expenses, resulting in positive quarterly operating leverage. Additionally, pre-tax, pre-provision (PTPP) adjusted earnings for the three months ended September 30, 2025, was $18.9 million, up 22.1%, and $51.1 million for the nine months ended September 30, 2025, up 19.6%, compared to the same periods in 2024.
As a result of these announcements, the company's shares have moved -0.93% on the market, and are now trading at a price of $49.12. For more information, read the company's full 10-Q submission here.
