First Business Financial Q4 net income declines

First Business Financial Services

29/01/2026 21:17

Overview

Business banking firm reported Q4 net income decline compared to previous quarter and year

Company announced 17% increase in quarterly cash dividend, 14th consecutive annual raise

Revenue growth driven by loan and deposit expansion, despite increased non-performing loans

Outlook

Company targets double-digit growth in earnings and revenue going forward

First Business Financial Services expects 2026 effective tax rate between 16% and 18%

Company announces 17% increase in quarterly cash dividend

Result Drivers

CORE DEPOSIT GROWTH - Core deposits grew $80.9 mln, or 12.5% annualized, from the linked quarter, improving funding mix to 74.7%

LOAN GROWTH - Loans increased $38.6 mln, or 4.6% annualized, despite elevated commercial real estate payoffs

EFFICIENCY IMPROVEMENT - Efficiency ratio improved to 56.61%, supporting positive operating leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Operating Revenue
$42.22 mln
Q4 EPS
$1.58
Q4 Net Interest Income
$34.76 mln


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 $60.00, about 8.2% above its January 28 closing price of $55.44

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

Press Release: ID:nBw6PG378a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)