The company expects NIM to moderate from 3.80% in Q4 as fee income normalizes, and operating expenses to increase from Q3 levels due to planned investments. Monitor the resolution of the $22.7M Wisconsin CRE non-accrual relationship, which management expects progress on in early 2027.
Price Chart
Executive Summary
First Business Financial Services reported record Q3 2026 net income available to common shareholders of $16.4M ($1.95 EPS), up 6% from Q2 2026 and 15% from Q3 2025. Core deposits grew 14.1% annualized, outpacing 9.9% annualized loan growth, while net interest margin expanded to 3.80%. Non-performing assets increased to 0.91% of total assets from 0.86% linked quarter, primarily from a single $22.7M Wisconsin CRE relationship.
Key Financial Metrics
Key Facts
- Record net income available to common shareholders of $16.4M, or $1.95 per diluted share
- EPS of $1.95 vs consensus estimate of $1.67 (16.8% beat)
- Operating revenue of $47.5M vs consensus estimate of $46.9M (1.3% beat)
- Net interest margin expanded to 3.80% from 3.78% linked quarter and 3.68% prior-year quarter
- Core deposits increased $101.3M (14.1% annualized) from linked quarter, outpacing loan growth
- Loans increased $88.6M (9.9% annualized) from linked quarter
- Pre-tax pre-provision adjusted earnings reached a record $21.3M, up 7.6% linked quarter and 13.1% year-over-year
- Non-performing assets increased to $40.2M (0.91% of total assets) from $38.1M (0.86%) linked quarter
- Quarterly dividend maintained at $0.34 per share
- Share repurchases of 41,058 shares for approximately $2.9M year-to-date through October 23, 2026
Financial Impact
Record quarterly earnings with EPS of $1.95 beating consensus by 16.8%; operating revenue of $47.5M beating consensus by 1.3%
Risk Factors
- Non-performing assets increased to 0.91% of total assets, driven by a $22.7M Wisconsin CRE relationship with only $416K in reserves
- Net interest margin expected to moderate from 3.80% in Q4 as elevated fee income normalizes
- Operating expenses expected to increase from Q3 level due to planned investments in talent, technology, and marketing
- Allowance for credit losses as a percent of total gross loans declined to 1.06% from 1.10% linked quarter
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-437781 |
| Document: fbiz-20261029.htm | 0001193125-26-437781 |
| Document: fbiz-ex99_2.htm | 0001193125-26-437781 |
| Document: 0001193125-26-437781-index-headers.html | 0001193125-26-437781 |
| Document: 0001193125-26-437781-index.html | 0001193125-26-437781 |
| Document: 0001193125-26-437781.txt | 0001193125-26-437781 |
| 8-K Data (Synthetic) | 0001193125-26-437781 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $73.76 | awaiting T+60 | awaiting T+60 | $75.40 (+2.22%) |
Jul 30, 2026 13w ago | 8-K | $70.21 $72.79 | ▲ +3.67% | ▲ +1.22% | $75.40 (+7.39%) |
Apr 23, 2026 27w ago | 8-K | $55.69 $66.14 | ▲ +18.76% | ▲ +13.68% | $75.40 (+35.39%) |
Apr 14, 2026 28w ago | 8-K | $58.02 $63.70 | ▲ +9.79% | ▲ +1.66% | $75.40 (+29.96%) |
Mar 16, 2026 32w ago | EFFECT | $52.37 $58.42 | ▲ +11.55% | ▲ +1.06% | $75.40 (+43.97%) |
Mar 3, 2026 34w ago | S-3 | $54.51 $57.49 | ▲ +5.47% | ▼ −4.62% | $75.40 (+38.32%) |
US Market Status
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