$FBIZ

FIRST BUSINESS FINANCIAL SERVICES, INC.

CIK:0001521951|SEC Filings

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Loans and leases	$ 60,010	$ 56,621	$ 116,317	$ 111,895
Securities	4,220	3,783	8,465	7,187
Short-term investments	791	878	2,134	1,730
Total interest income	65,021	61,282	126,916	120,812
Interest expense
Deposits	23,105	24,257	47,033	47,273
Federal Home Loan Bank advances and other borrowings	3,774	3,241	6,224	6,497
Total interest expense	26,879	27,498	53,257	53,770
Net interest income	38,142	33,784	73,659	67,042
Provision for credit losses	2,066	2,701	5,027	5,360
Net interest income after provision for credit losses	36,076	31,083	68,632	61,682
Non-interest income
Private wealth management service fees	4,257	3,748	8,134	7,240
Gain on sale of Small Business Administration loans	0	397	592	1,360
Service charges on deposits	1,336	1,103	2,653	2,152
Loan fees	528	424	964	812
Bank-owned life insurance policy income	757	615	1,514	1,051
Swap fees	162	170	790	283
Other non-interest income	1,529	798	2,698	1,936
Total non-interest income	8,569	7,255	17,345	14,834
Non-interest expense
Compensation	18,462	16,534	37,003	33,281
Occupancy	638	564	1,226	1,155
Professional fees	1,493	1,487	2,938	2,946
Data processing	1,482	1,368	2,752	2,450
Marketing	840	1,062	1,551	2,030
Equipment	351	335	758	711
Computer software	1,958	1,656	3,879	3,259
FDIC insurance	819	834	1,729	1,614
Other non-interest expense	1,806	1,128	2,966	2,241
Total non-interest expense	27,849	24,968	54,802	49,687
Income before income tax expense	16,796	13,370	31,175	26,829
Income tax expense	1,216	1,948	3,395	4,236
Net income	15,580	11,422	27,780	22,593
Preferred stock dividend	219	219	438	438
Net income available to common shareholders	$ 15,361	$ 11,203	$ 27,342	$ 22,155
Earnings per common share
Basic	$ 1.84	$ 1.35	$ 3.28	$ 2.66
Diluted	1.84	1.35	3.28	2.66
Dividends declared per share	$ 0.34	$ 0.29	$ 0.68	$ 0.58

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net Income (Loss)	$ 27,780	$ 22,593
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes, net	(553)	735
Provision for credit losses	5,027	5,360
Depreciation, amortization and accretion, net	1,897	1,821
Share-based compensation	1,559	1,577
Net loss on sale of tax credit investments	545	60
Amortization of tax credit investments	3,782	3,057
Bank-owned life insurance policy income	(1,514)	(1,051)
Origination of loans for sale	(76,589)	(88,044)
Sale of loans originated for sale	96,030	90,487
Gain on sale of loans originated for sale	(592)	(1,360)
Net gain on repossessed assets	0	(4)
Return on investment in limited partnerships	295	834
Excess tax benefit from share-based compensation	366	229
Net payments on operating lease liabilities	(805)	(784)
Net (decrease) increase in accrued interest receivable and other assets	(11,019)	14,494
Net decrease (increase) in accrued interest payable and other liabilities	636	(22,858)
Net cash provided by operating activities	46,845	27,146
Investing activities
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities	39,875	26,885
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities	533	1,022
Purchases of available-for-sale securities	(31,249)	(60,690)
Proceeds from sale of repossessed assets	0	24
Net increase in loans and leases	(215,575)	(142,215)
Investments in limited partnerships	(1,548)	(1,472)
Returns of investments in limited partnerships	8	712
Investment in tax credit investments	(9,292)	(12,673)
Distributions from tax credit investments	140	26
Proceeds from sale of tax credit investments	69	2,483
Investment in Federal Home Loan Bank stock	(17,123)	(19,910)
Proceeds from the sale of Federal Home Loan Bank stock	12,890	21,499
Purchases of leasehold improvements and equipment, net	(299)	(410)
Proceeds from sale of leasehold improvements and equipment	42	0
Purchases of bank owned life insurance policies	(25)	(24,500)
Net cash used in investing activities	(221,554)	(209,219)
Financing activities
Net increase in deposits	211,750	198,082
Repayment of Federal Home Loan Bank advances	(576,328)	(966,377)
Proceeds from Federal Home Loan Bank advances	671,011	922,412
Net increase in long-term borrowed funds	60	47
Cash dividends paid	(5,850)	(4,856)
Preferred stock dividends paid	(438)	(438)
Proceeds from issuance of common stock under ESPP	66	72
Purchase of treasury stock	(1,689)	(1,363)
Net cash provided by financing activities	298,582	147,579
Net increase (decrease) in cash and cash equivalents	123,873	(34,494)
Cash and cash equivalents at the beginning of the period	39,485	157,702
Cash and cash equivalents at the end of the period	163,358	123,208
Cash paid during the period for:
Interest paid on deposits and borrowings	53,676	53,908
Net income taxes paid	$ 3,551	$ 381

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and due from banks	$ 32,064	$ 30,771
Short-term investments	131,294	8,714
Cash and cash equivalents	163,358	39,485
Securities available-for-sale, at fair value	409,692	422,087
Securities held-to-maturity, at amortized cost	4,674	5,210
Loans held for sale	0	18,849
Loans and leases receivable, net of allowance for credit losses of $37,393 and $35,877, respectively	3,548,222	3,337,364
Premises and equipment, net	4,328	4,669
Right-of-use assets, net	4,787	5,317
Bank-owned life insurance	85,533	83,994
Federal Home Loan Bank stock, at cost	13,173	8,940
Goodwill and other intangible assets	11,933	11,985
Derivatives	45,827	36,515
Accrued interest receivable and other assets	118,477	107,472
Total assets	4,410,004	4,081,887
Liabilities and Stockholders’ Equity
Deposits	3,592,165	3,380,415
Federal Home Loan Bank advances and other borrowings	346,794	252,051
Lease liabilities	6,698	7,361
Derivatives	39,733	36,926
Accrued interest payable and other liabilities	29,307	33,549
Total liabilities	4,014,697	3,710,302
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,500,000 shares authorized, 12,500 shares of 7% non-cumulative perpetual preferred stock, Series A, outstanding at June 30, 2026 and December 31, 2025	11,992	11,992
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,565,153 and 9,493,274 shares issued, 8,368,320 and 8,325,376 shares outstanding at June 30, 2026 and December 31, 2025, respectively	97	96
Additional paid-in capital	98,111	96,487
Retained earnings	327,028	305,536
Accumulated other comprehensive loss	(7,446)	(9,740)
Treasury stock, 1,196,833 and 1,167,898 shares at June 30, 2026 and December 31, 2025, respectively, at cost	(34,475)	(32,786)
Total stockholders’ equity	395,307	371,585
Total liabilities and stockholders’ equity	$ 4,410,004	$ 4,081,887