FBIZ · First Business Financial Services, Inc.

First Business Financial Services reported robust Q1 2026 operating performance, with double-digit year-over-year growth across key balance sheet and income statement metrics. Loan growth of 9.9% YoY—driven by its Midwest commercial banking focus and national niche C&I businesses—was supported by disciplined underwriting and deep client relationships, contributing to stable asset quality: NPAs declined to 0.94% of total assets from 1.07% in Q4 2025, aided by the sale of a portion of a downgraded CRE NPA. Core deposit growth of 13.5% YoY strengthened the funding base, lifting the core deposit funding mix to 73.3%, consistent with the Bank’s deposit-centric treasury management strategy. Non-interest income rose 15.8% YoY, with Private Wealth Management accounting for 46% of non-interest income over the trailing 12 months—highlighting successful revenue diversification beyond traditional banking. The 3.56% NIM reflected effective interest rate risk management, including a match-funded balance sheet where 60% of loans are SOFR-indexed and aligned with managed-rate, non-maturity deposits. Pre-tax, pre-provision earnings grew 6.1% YoY, and net income increased 9.4% YoY, underscoring operating leverage and efficient expense management—evidenced by a 61.14% efficiency ratio and ongoing investments in automation and AI. Management reaffirmed its five-year strategic plan targets, including ≥10% annual TBV growth and ≥15% ROATCE by 2028, with Q1 2026 ROATCE at 13.6%. These results demonstrate execution against a differentiated, relationship-driven model that prioritizes sustainable, fee-enhanced profitability without residential mortgage or consumer lending exposure.