FBIZ

EX-99.1

2 fbiz-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

FIRST BUSINESS BANK REPORTS RECORD THIRD QUARTER EARNINGS

-- Core deposit growth outpaces robust loan growth; positive operating leverage drives further tangible book value growth --

MADISON, Wis., October 29, 2026 (BUSINESS WIRE) -- First Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq: FBIZ) reported quarterly net income available to common shareholders of $16.4 million, or earnings per share ("EPS") of $1.95. This compares to net income available to common shareholders of $15.4 million, or $1.84 per share, in the second quarter of 2026 and $14.2 million, or $1.70 per share, in the third quarter of 2025.

“Our record third quarter results reflect strong execution across First Business Bank’s relationship-based model,” said Dave Seiler, President and Chief Executive Officer. “Annualized loan growth of approximately 10% was more than fully funded by 14% annualized core deposit growth, while a strong net interest margin and disciplined expense management drove record pre-tax, pre-provision earnings. Through the first nine months of 2026, earnings per share increased 20%, pre-tax, pre-provision earnings increased 14%, and tangible book value per share grew 13% from the prior year.”

“We expect expenses to increase from the third-quarter level as we make planned investments in talent, marketing, technology, and infrastructure to support continued growth. These investments are integral to our long-term model of approximately 10% annual balance sheet growth and positive annual operating leverage. We believe consistent execution of our strategic plan, together with disciplined credit and capital management, will continue to compound earnings and tangible book value per share and support strong long-term profitability.”

Quarterly Highlights

• Record Earnings and Pre-Tax, Pre-Provision ("PTPP") Growth. Net income available to common shareholders reached a record $16.4 million, or $1.95 per diluted share. PTPP adjusted earnings grew to a record $21.3 million, up 7.6% and 13.1% from the linked and prior-year quarters, respectively.

• Relationship-Based Deposit Growth Funded Loan Expansion. Core deposits increased by $101.3 million, or 14.1% annualized, from the linked quarter and $386.8 million, or 14.9%, from the prior-year quarter, outpacing loan growth in both periods. Core deposits improved to 76.7% of total bank funding, allowing wholesale funding to decline by $103.1 million.

• Continued Loan Growth. Loans increased $88.6 million, or 9.9% annualized, from the linked quarter and $340.2 million, or 10.2%, from the third quarter of 2025.

• Strong Net Interest Margin. Net interest margin was 3.80%, compared to 3.78% for the linked quarter and 3.68% for the prior-year quarter. The modest linked improvement was primarily driven by favorable loan yields and an improved funding mix. Net interest margin was 3.72% and 3.68% for the first nine months of 2026 and 2025, respectively. Elevated fees in lieu of interest continued to support the year-over-year comparison.

• SBA Exit Improves Operating Efficiency. Operating expenses declined $706,000, or 2.6%, from the linked quarter, primarily due to lower SBA-related compensation costs. The Company expects annual operating leverage to remain modest but positive.

• Strong Value Creation. Through the first nine months of 2026, operating revenue increased 9.8% while operating expense increased 6.8%, driving a 14.2% increase in pre-tax, pre-provision earnings and 20% EPS growth. Tangible book value per share increased 10.5% annualized from the linked quarter and 13.4% from the prior year.

1

Quarterly Financial Results

(Unaudited)

As of and for the Three Months Ended

As of and for the Nine Months Ended

(Dollars in thousands, except per share amounts)

September 30, 2026

June 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Net interest income

$39,078

$38,142

$34,886

$112,738

$101,928

Adjusted non-interest income (1)

8,429

8,569

9,406

25,773

24,241

Operating revenue (1)

47,507

46,711

44,292

138,511

126,169

Operating expense (1)

26,186

26,892

25,440

80,159

75,081

Pre-tax, pre-provision adjusted earnings (1)

21,321

19,819

18,852

58,352

51,088

Less:

Provision for credit losses

1,943

2,066

1,440

6,969

6,800

Loss on repossessed assets

—

—

31

—

27

Contribution to First Business Charitable Foundation

—

—

234

—

234

SBA recourse benefit

(381)

—

(5)

(502)

(64)

Impairment of tax credit investments

300

552

—

845

110

SBA severance expense

—

405

—

405

—

Add:

Bank-owned life insurance claim

—

—

234

—

234

Income before income tax expense

19,459

16,796

17,386

50,635

44,215

Income tax expense

2,887

1,216

2,993

6,283

7,229

Net income

$16,572

$15,580

$14,393

$44,352

$36,986

Preferred stock dividends

218

219

218

656

656

Net income available to common shareholders

$1

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EX-99.1

2 fbiz-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

FIRST BUSINESS BANK ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS

-- Double-digit loan and deposit growth supports strong earnings and drives tangible book value expansion --

MADISON, Wis., April 23, 2026 (BUSINESS WIRE) -- First Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq: FBIZ) reported quarterly net income available to common shareholders of $12.0 million, or earnings per share ("EPS") of $1.44. This compares to net income available to common shareholders of $13.1 million, or $1.58 per share, in the fourth quarter of 2025 and $11.0 million, or $1.32 per share, in the first quarter of 2025.

"Our strong first quarter performance underscores the effectiveness of First Business Bank’s strategy,” said Corey Chambas, Chief Executive Officer. “We delivered broad-based growth, with loans and core deposits increasing 15% and 18%, respectively, exhibiting our team's success in driving exceptional levels of new client acquisition. Our higher-yielding C&I lending portfolios accounted for two-thirds of the late-quarter loan growth and should provide meaningful support to net interest margin going forward. Growth in non-interest income further reinforced the benefits of our diversified revenue model. Additionally, we made progress toward resolving our largest non-performing CRE credit, contributing to an 8% decline in non-accrual loans during the quarter. Our momentum in the first quarter positions us to achieve our full-year target of 10% growth and above-average shareholder returns while maintaining disciplined risk management."

Quarterly Highlights

• Robust Loan Growth. Loans increased $125.9 million, or 14.9% annualized, from the linked quarter and $315.9 million, or 9.9%, from the first quarter of 2025. The Bank's higher-yielding C&I lending portfolios contributed $84.4 million, or 67%, of the linked quarter's growth, the majority of which occurred late in the quarter.

• Continued Core Deposit Growth. Core deposits grew $123.1 million, or 18.4% annualized, from the linked quarter and $333.4 million, or 13.5%, from the first quarter of 2025.

• Net Interest Margin. The Company's net interest margin was 3.56%, compared to 3.53% for the linked quarter. The first quarter was reduced by approximately five basis points due to fewer interest-earnings days. Excluding this impact, net interest margin was 3.61%. The company remains positioned to achieve its targeted net interest margin range of 3.60%-3.65%.

• Strong Non-interest Income. Non-interest income increased $1.2 million, up 15.8% from the prior year quarter, reflecting the ongoing success of revenue diversification efforts, highlighted by a 25.8% increase in service charges on deposits. Fee income as a percentage of operating revenue measured 19.8% for the quarter, up from 18.8% in the prior year quarter.

• Continued Tangible Book Value Growth. The Company’s strong earnings continued to drive growth in tangible book value per share, producing a 13.6% increase compared to the prior year quarter.

1

Quarterly Financial Results

(Unaudited)

As of and for the Three Months Ended

(Dollars in thousands, except per share amounts)

March 31, 2026

December 31, 2025

March 31, 2025

Net interest income

$35,518

$34,762

$33,258

Adjusted non-interest income (1)

8,775

7,461

7,579

Operating revenue (1)

44,293

42,223

40,837

Operating expense (1)

27,081

23,901

24,617

Pre-tax, pre-provision adjusted earnings (1)

17,212

18,322

16,220

Less:

Provision for credit losses

2,960

1,855

2,659

Loss on repossessed assets

—

—

(8)

SBA recourse benefit

(121)

—

—

(Recovery) impairment of tax credit investments

(7)

229

110

Income before income tax expense

14,380

16,238

13,459

Income tax expense

2,180

2,905

2,288

Net income

$12,200

$13,333

$11,171

Preferred stock dividends

219

219

219

Net income available to common shareholders

$11,981

$13,114

$10,952

Earnings per share, diluted

$1.44

$1.58

$1.32

Book value per share

$44.12

$43.19

$39.04

Tangible book value per share (1)

$42.68

$41.75

$37.58

Net interest margin (2)

3.56%

3.53%

3.69%

Fee income ratio (non-interest income / total revenue)

19.81%

17.67%

18.56%

Efficiency ratio (1)

61.14%

56.61%

60.28%

Return on average assets (2)

1.13%

1.25%

1.14%

Return on average tangible common equity (2)

13.55%

14.83%

14.12%

Period-end loans and leases receivable

$3,498,903

$3,373,241

$3,184,400

Average loans and leases receivable

$3,425,751

$3,363,752

$3,185,796

Period-end core deposits

$2,796,059

$2,673,003

$2,462,695

Average core deposits

$2,848,601

$2,765,730

$2,362,894

Allowance for credit losses, including unfunded commitment reserves

$38,489

$37,692

$36,515

Non-performing assets

$40,503

$43,855

$24,092

Allowance for credit losses as a percent of total gross loans and leases

1.10%

1.12%

1.15%

Non-performing assets as a pe