First Business Financial Services (FBIZ) Q1 2026 earnings summary

Executive summary

• Net income available to common shareholders was $12.0 million ($1.44 EPS) for Q1 2026, up from $11.0 million ($1.32 EPS) in Q1 2025, with EPS and net income up over 9% year-over-year, driven by robust loan and deposit growth and record private wealth revenues.

• Loans grew 14.9% annualized from Q4 2025 and 9.9% year-over-year; core deposits grew 18.4% annualized and 13.5% year-over-year, supporting strong balance sheet expansion.

• Non-interest income rose 15.8% year-over-year, with private wealth generating record revenue and contributing over 40% of total fee income.

• Tangible book value per share increased 14% year-over-year, reflecting disciplined capital deployment and strong earnings.

• Asset quality remained stable, with non-performing assets declining to $40.5 million (0.94% of assets) and progress on resolving the largest non-performing CRE credit.

Financial highlights

• Net interest margin (NIM) was 3.56% for Q1 2026, up from 3.53% in Q4 2025; adjusted NIM was 3.61% excluding fewer accrual days.

• Net interest income rose 6.8% year-over-year to $35.5 million.

• Non-interest income reached $8.8 million, up 17.6% sequentially and 15.8% year-over-year.

• Efficiency ratio was 61.1% for Q1 2026, up from 60.3% a year ago.

• Charge-offs were 25 bps for the quarter, slightly above the 20 bps annual average target.

Outlook and guidance

• Management targets full-year loan and deposit growth of 10% and net interest margin of 3.60%-3.65%, with normalization in the second half supporting growth.

• Fee income expected to grow 10% year-over-year in 2026, with Q1 providing a strong starting point.

• Effective tax rate projected at 16%-18% for 2026.

• Strategic plan targets ≥15% ROATCE and ≥10% annual TBV and revenue growth by 2028.

• Efficiency ratio goal is below 60% by 2028.