First Business Bank Reports Record Third Quarter Earnings

Core deposit growth exceeded loan growth, allowing wholesale funding to decline by $103.1 million.

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

MADISON, Wis.--(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.

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		$16,354		$15,361		$14,175		$43,696		$36,330
Earnings per share, diluted		$1.95		$1.84		$1.70		$5.24		$4.37
Book value per share		$46.98		$45.81		$41.60		$46.98		$41.60
Tangible book value per share (1)		$45.56		$44.38		$40.16		$45.56		$40.16
Net interest margin (2)		3.80%		3.78%		3.68%		3.72%		3.68%
Fee income ratio (non-interest income / total revenue)		17.74%		18.34%		21.65%		18.61%		19.36%
Efficiency ratio (1)		55.12%		57.57%		57.44%		57.87%		59.51%
Return on average assets (2)		1.49%		1.43%		1.40%		1.35%		1.23%
Return on average tangible common equity (1)(2)		17.32%		16.89%		17.29%		15.96%		15.23%
Period-end loans and leases receivable		$3,673,817		$3,585,615		$3,334,956		$3,673,817		$3,334,956
Average loans and leases receivable		$3,616,390		$3,550,415		$3,295,880		$3,531,550		$3,240,908
Period-end core deposits		$2,978,957		$2,877,675		$2,592,110		$2,978,957		$2,592,110
Average core deposits		$2,942,234		$2,860,053		$2,597,031		$2,883,973		$2,453,005
Allowance for credit losses, including unfunded commitment reserves		$38,849		$39,517		$38,382		$38,849		$38,382
Non-performing assets		$40,240		$38,062		$23,513		$40,240		$23,513
Allowance for credit losses as a percent of total gross loans and leases		1.06%		1.10%		1.15%		1.06%		1.15%
Non-performing assets as a percent of total assets		0.91%		0.86%		0.58%		0.91%		0.58%

1. This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate financial performance, provide greater understanding of ongoing operations, and enhance comparability of results with prior periods. See the section titled Non-GAAP Reconciliations at the end of this release for a reconciliation of GAAP financial measures to non-GAAP financial measures.
2. Calculation is annualized.

Third Quarter 2026 Compared to Second Quarter 2026

Net interest income increased $936,000, or 2.5%, to $39.1 million.

• Net interest income increased as average loans and leases receivable grew by $66.0 million, or 7.4% annualized during the third quarter. This increase was partially offset by a $193,000 decrease in prepayment fees.
• The yield on average interest-earning assets increased 2 basis points to 6.47% from 6.45%.
• The rate paid for average core deposits was stable at 2.41% compared to 2.40%, and the rate paid on average total bank funding was stable at 2.76% compared to 2.75%. Total bank funding includes total deposits and Federal Home Loan Bank (“FHLB”) advances.
• Net interest margin increased to 3.80% from 3.78% in the linked quarter. The linked-quarter increase reflected more favorable loan yields and deposit mix, including growth in non-interest-bearing demand deposits, as well as a modest favorable day-count impact. These benefits more than offset lower prepayment and asset-based loan fees. While net interest margin is expected to remain above the Company’s long-term target range of 3.60% to 3.65% during the fourth quarter, it is expected to moderate from the third-quarter level as fee income normalizes. The Company continues to view 3.60% to 3.65% as an appropriate long-term range.

The Bank reported provision for credit losses of $1.9 million compared to $2.1 million in the linked quarter. Compared to the linked quarter, the provision for credit losses was lower primarily due to a smaller increase in quantitative factors and lower loan growth, partially offset by higher net charge-offs. See the Provision for Credit Loss breakdown table below for more detail.

Non-interest income decreased $140,000, or 1.6%, to $8.4 million.

• Commercial loan swap fee income increased $393,000, or 242.6%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
• Other non-interest income decreased $494,000 to $1.0 million, primarily due to a decrease in limited partnership investment income.

Non-interest expense decreased $1.7 million, or 6.3%, to $26.1 million, while operating expense decreased $706,000, or 2.6%, to $26.2 million. Third-quarter operating expense primarily benefited from lower compensation expense due to our exit from out-of-market SBA 7(a) lending. We expect the operating expense run rate to increase from the third-quarter level, primarily reflecting investments in talent, technology, and marketing initiatives. These investments are intended to expand the Company’s capacity for sustained growth. While quarterly comparisons may vary, the company continues to expect modest positive operating leverage annually.

• Compensation expense was $17.8 million, decreasing by $693,000, or 3.8% from the linked quarter. The decrease was primarily driven by lower salaries and benefits expense and linked quarter severance expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. This decrease was partially offset by higher annual cash bonus accruals reflecting above-target Company performance. Average full-time equivalents ("FTEs") for the third quarter were 352, compared to 366 in the linked quarter. Excluding SBA employees, average FTEs were 351 for the third quarter compared to 354 in the linked quarter.
• Other non-interest expense decreased $656,000 to $1.2 million, primarily due to an SBA recourse provision benefit and changes in carrying values on historic tax credit investments.
• Professional fees expense decreased $204,000, or 13.7%, to $1.3 million, primarily reflecting annual stock awards issued to directors in the second quarter.
• FDIC insurance expense decreased $123,000, or 15.0%, to $696,000, due to improved leverage and brokered deposit ratios.
• Marketing expense decreased $105,000, or 12.5%, to $735,000, due to timing of marketing programs and a reduction in sponsorship activity.

Income tax expense increased $1.7 million to $2.9 million. The effective tax rate was 14.8% for the three months ended September 30, 2026, compared to 7.2% for the linked quarter. The change in tax expense primarily reflects the release of a state deferred tax valuation allowance in the linked quarter and higher pre-tax income in the current quarter. The Company expects to report a full year 2026 effective tax rate between 13% and 15%.

Total gross period-end loans and leases receivable increased $88.6 million, or 9.9% annualized, to $3.677 billion. The average rate earned on average loans and leases receivable was 6.79%, up from 6.76% in the linked quarter.

• CRE loans increased $77.2 million, or 14.3% annualized, to $2.239 billion, primarily due to growth in the Wisconsin markets.
• C&I loans increased $9.4 million, or 2.7% annualized, to $1.390 billion, primarily due to growth in Floorplan Financing.

Total period-end core deposits increased $101.3 million, or 14.1% annualized, to $2.979 billion, reflecting broad-based growth across our markets. The average rate paid was stable at 2.41% compared to 2.40% in the linked quarter.

Period-end wholesale funding, including FHLB advances and brokered deposits, decreased $103.1 million, or 10.24%, to $903.3 million. Wholesale funding continues to support interest rate risk management through match-funding of fixed-rate assets, enhancing funding flexibility, and stabilizing net interest margin.

• Wholesale deposits increased $56.3 million to $770.8 million. The average rate paid on wholesale deposits increased four basis points to 4.07% and the weighted average original maturity increased to 4.0 years from 3.3 years.
• FHLB advances decreased $159.4 million to $132.5 million. The average rate paid on FHLB advances increased two basis points to 3.55% and the weighted average original maturity remained flat at 6.0 years.

Nonperforming assets increased $2.2 million to $40.2 million, or 0.91% of total assets, compared with 0.86% in the linked quarter, primarily reflecting a new non-accrual multifamily loan associated with the previously disclosed Wisconsin relationship. This increase was partially offset by the charge-off of fully reserved C&I non-accrual loans. The Wisconsin relationship represented $22.7 million of non-accrual loans, collateralized by commercial real estate, with $416,000 of reserves at September 30, 2026. Year-to-date net charge-offs remained stable at 0.22% of average loans compared with 0.23% in the prior-year period.

The allowance for credit losses, including the unfunded credit commitments reserve, decreased $668,000, or 1.7%, primarily due to charge-offs of previously reserved loans and leases and a decrease in qualitative factors partially offset by increases in general reserves primarily due to loan growth and a modest decline in the economic outlook in our model forecast. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.06%, compared to 1.10% in the linked quarter.

Strong internal capital generation continued to support growth, with the common equity Tier 1 ratio increasing to 9.65% and the tangible common equity ratio increasing to 8.59%. The company believes its earnings capacity and capital position support its long-term balance-sheet growth objectives while continuing to build tangible book value per share.

Third Quarter 2026 Compared to Third Quarter 2025

Net interest income increased $4.2 million, or 12.0%, to $39.1 million.

• Net interest income growth reflects a 9.72% increase in average gross loans and leases, a $450,000 increase in prepayment fees, and a $407,000 increase in asset-based loan fees.
• The yield on average interest-earning assets decreased 25 basis points to 6.47% from 6.72%. This decrease in yield was primarily due to the decrease in short-term market rates, partially offset by an increase in prepayment fees and asset-based loan fees. The interest-earning asset beta was 39.2%.
• The rate paid for average core deposits decreased 48 basis points to 2.41% from 2.89%. The rate paid for average total bank funding decreased 38 basis points to 2.76% from 3.14%. The core deposit and total bank funding betas compared to the prior year were 76.2% and 60.3%, respectively.
• Net interest margin increased 12 basis points to 3.80% from 3.68%.

The Company reported provision for credit losses of $1.9 million, compared to $1.4 million in the third quarter of 2025. See the Provision for Credit Loss breakdown table below for more detail.

Non-interest income decreased $1.2 million, or 12.6%, to $8.4 million. Excluding gain on sale of SBA loans, non-interest income decreased $830,000, or 9.0%.

• Other non-interest income decreased $945,000, or 47.7%, to $1.0 million, primarily driven by higher returns on the Company’s investments in limited partnerships in the prior year quarter and $537,000 of non-recurring fee income in accounts receivable financing in the prior year quarter.
• Commercial loan swap fee income decreased $419,000, or 43.0%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
• Gain on sale of SBA loans decreased $382,000 due to management's decision to hold for investment any existing and new SBA 7(a) loans.
• Private wealth fee income increased $488,000, or 13.2%, to $4.2 million. Private wealth assets under management and administration measured $4.227 billion at September 30, 2026, up $413.0 million, or 10.8%. Fee income is primarily based on asset levels and may vary based on seasonal activity and the timing of fluctuations in market values.
• Service charges on deposits increased $258,000, or 22.4%, to $1.4 million, primarily driven by new and expanded core deposit relationships. Treasury management gross analyzed service charges increased $276,000, or 15.6%.

Non-interest expense increased $405,000, or 1.6%, to $26.1 million. Operating expense increased $746,000 or 2.9%, to $26.2 million.

• Compensation expense increased $327,000, or 1.9%, to $17.8 million. Growth reflects annual merit increases and promotions as well as higher annual cash bonus accruals reflecting above-target Company performance. These increases were partially offset by lower salaries and benefits expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. Average FTEs decreased 3.8% to 352 in the third quarter of 2026, compared to 366 in the third quarter of 2025. Excluding SBA employees, average FTEs were 351 in the current quarter compared to 345 in the third quarter of 2025.
• Other non-interest expense decreased $532,000, or 31.6% to $1.2 million, primarily due to a decrease in SBA recourse reserves.
• Data processing expense increased $366,000, or 32.6%, to $1.5 million, primarily due to an increase in core processing costs associated with core deposit growth and an increase in credit card transactions.
• Professional fees expense increased $218,000, or 20.4%, to $1.3 million, primarily due to an increase in recruiting expense, directors' fees, and miscellaneous legal and regulatory fees.
• Computer software expense increased $237,000, or 13.0%, to $2.1 million, primarily due to the Company's commitment to innovative technology to support growth initiatives, enhance productivity, and improve the client experience.

Total gross period-end loans and leases receivable increased $340.2 million, or 10.2%, to $3.677 billion. The average yield decreased 31 basis points to 6.79%, primarily due to a decrease in short-term market rates.

• CRE loans increased $211.8 million, or 10.4%, to $2.239 billion, primarily due to growth throughout our Wisconsin and Kansas City markets.
• C&I loans increased $125.7 million, or 9.9%, to $1.390 billion, primarily due to growth across the Bank's markets and in asset-based lending, floorplan financing, and accounts receivable financing.

Total period-end core deposits grew $386.8 million, or 14.9%, to $2.979 billion. The average rate paid decreased 48 basis points to 2.41%, reflecting a decrease in short-term market rates.

Period-end wholesale funding decreased $49.5 million, or 5.2%, to $903.3 million.

• Wholesale deposits increased $29.9 million, or 4.0%, to $770.8 million. The average rate paid on wholesale deposits decreased four basis points to 4.07% and the weighted average original maturity decreased to 4.0 years from 4.3 years.
• FHLB advances decreased $79.3 million, or 37.5%, to $132.5 million. The average rate paid on FHLB advances increased 39 basis points to 3.55% and the weighted average original maturity increased to 6.0 years from 5.3 years.

Non-performing assets increased to $40.2 million, or 0.91% of total assets, from $23.5 million, or 0.58% of total assets, primarily reflecting $22.7 million of CRE non-accrual loans from a single southeast Wisconsin client relationship, partially offset by paydowns on SBA non-accrual loans and lower non-accrual balances from Equipment Finance loans and leases.

The allowance for credit losses, including unfunded commitment reserves, increased $467,000 to $38.8 million primarily due to higher general reserves as a result of loan growth and quantitative factors, partially offset by lower specific reserves and lower qualitative factors. The allowance for credit losses as a percent of total gross loans and leases was 1.06%, compared to 1.15% in the prior year.

Share Repurchase Program Update

As previously announced, on April 26, 2024, the Company's Board of Directors authorized the repurchase by the Company of shares of its common stock with a maximum aggregate purchase price of $5.0 million. As of September 30, 2026, the Company had repurchased a total of 12,000 shares for approximately $835,000 at an average cost of $69.55 per share. The Company repurchased another 29,058 shares from October 1 through October 23, 2026. In total, the Company repurchased 41,058 shares for approximately $2.9 million at an average price of $69.70 per share.

Dividend Announced

On October 29, 2026, the Company's Board of Directors declared a quarterly cash dividend on its common stock of $0.34 per share, which is equivalent to a dividend yield of 1.87% based on the market close price of $72.75 on Wednesday, October 28, 2026. The quarterly dividend is the same as the quarterly dividend declared in July 2026, and based on third quarter 2026 earnings per share, this represents a dividend payout ratio of 17%. This regular cash dividend is payable on November 30, 2026, to shareholders of record at the close of business on November 12, 2026.

The Board of Directors also declared a dividend on the Company’s 7% Series A Preferred Stock of $17.50 per share, payable on December 15, 2026, to shareholders of record on November 30, 2026.

Earnings Release Supplement and Conference Call

On October 29, 2026, the Company posted an earnings release supplement to its website firstbusiness.bank under the “Investor Relations” tab which will also be furnished to the U.S. Securities and Exchange Commission on October 29, 2026. The information included in the supplement provides an overview of the Company’s recent operating performance, financial condition, and other data relevant to the quarter. The Company intends to use this supplement in connection with its third quarter 2026 earnings call to be held at 8:00 a.m. Central Time on October 30, 2026. The conference call can be accessed at 833-461-5787 (585-542-9983 if outside the United States and Canada), using the conference call access code: FBIZ, 650767981. Investors may also listen live via webcast at: https://events.q4inc.com/attendee/650767981. The webcast archive of the conference call will be available on the Company’s website, ir.firstbusiness.bank.

About First Business Bank

First Business Bank^® specializes in Business Banking, including Commercial Banking and Specialty Finance, Private Wealth, and Bank Consulting services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty Finance solutions are delivered through First Business Bank’s wholly owned subsidiary First Business Specialty Finance, LLC^®. First Business Bank is a wholly owned subsidiary of First Business Financial Services, Inc^®. (Nasdaq: FBIZ). For additional information, visit firstbusiness.bank.

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect First Business Bank’s current views with respect to future events and financial performance. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results, or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. Such statements are subject to risks and uncertainties, including among other things:

• Adverse changes in the economy or business conditions, either nationally or in our markets including, without limitation, inflation, economic downturn, labor shortages, wage pressures, the adverse effects of public health events on the global, national, and local economy, and geopolitical instability and international conflicts that may affect energy prices or otherwise result in market volatility.
• Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, prolonged shutdown of the federal government, and other significant policy matters.
• Competitive pressures among depository and other financial institutions nationally and in the Company’s markets.
• Increases in defaults by borrowers and other delinquencies.
• Management’s ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems.
• Fluctuations in interest rates and market prices.
• Changes in legislative or regulatory requirements applicable to the Company and its subsidiaries.
• Changes in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations.
• Fraud, including client and system failure or breaches of our network security, including the Company’s internet banking activities.
• Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans.
• Ongoing volatility in the banking sector may result in new legislation, regulations or policy changes that could subject the Company and the Bank to increased government regulation and supervision.
• The proportion of the Company’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk.
• Increases in FDIC insurance assessments.

For further information about the factors that could affect the Company’s future results, please see the Company’s annual report on Form 10-K for the year ended December 31, 2025, and other filings with the Securities and Exchange Commission.

SELECTED FINANCIAL CONDITION DATA
(Unaudited)		As of
(in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Assets
Cash and cash equivalents		$92,277		$163,358		$137,125		$39,485		$44,349
Securities available-for-sale, at fair value		398,807		409,692		420,325		422,087		411,111
Securities held-to-maturity, at amortized cost		4,546		4,674		4,797		5,210		5,584
Loans held for sale		—		—		23,700		18,849		13,482
Loans and leases receivable		3,673,817		3,585,615		3,498,903		3,373,241		3,334,956
Allowance for credit losses		(36,541)		(37,393)		(36,631)		(35,877)		(36,690)
Loans and leases receivable, net		3,637,276		3,548,222		3,462,272		3,337,364		3,298,266
Premises and equipment, net		4,346		4,328		4,500		4,669		4,936
Right-of-use assets		4,517		4,787		5,053		5,317		5,577
Bank-owned life insurance		86,318		85,533		84,776		83,994		83,255
Federal Home Loan Bank stock, at cost		5,979		13,173		11,242		8,940		9,605
Goodwill and other intangible assets		11,833		11,933		12,011		11,985		12,041
Derivatives		78,574		45,827		38,198		36,515		37,634
Accrued interest receivable and other assets		119,799		118,477		116,856		107,472		109,005
Total assets		$4,444,272		$4,410,004		$4,320,855		$4,081,887		$4,034,845
Liabilities and Stockholders’ Equity
Core deposits		$2,978,957		$2,877,675		$2,796,059		$2,673,003		$2,592,110
Wholesale deposits		770,816		714,490		769,943		707,412		740,961
Total deposits		3,749,773		3,592,165		3,566,002		3,380,415		3,333,071
Federal Home Loan Bank advances and other borrowings		187,393		346,794		303,451		252,051		266,677
Lease liabilities		6,355		6,698		7,032		7,361		7,687
Derivatives		63,513		39,733		35,857		36,926		38,726
Accrued interest payable and other liabilities		32,634		29,307		28,433		33,549		30,365
Total liabilities		4,039,668		4,014,697		3,940,775		3,710,302		3,676,526
Total stockholders’ equity		404,604		395,307		380,080		371,585		358,319
Total liabilities and stockholders’ equity		$4,444,272		$4,410,004		$4,320,855		$4,081,887		$4,034,845

STATEMENTS OF INCOME
(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		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Total interest income		$66,525		$65,021		$61,896		$62,752		$63,746		$193,442		$184,558
Total interest expense		27,447		26,879		26,378		27,990		28,860		80,704		82,630
Net interest income		39,078		38,142		35,518		34,762		34,886		112,738		101,928
Provision for credit losses		1,943		2,066		2,960		1,855		1,440		6,969		6,800
Net interest income after provision for credit losses		37,135		36,076		32,558		32,907		33,446		105,769		95,128
Private wealth management service fees		4,175		4,257		3,877		3,788		3,687		12,309		10,928
Gain on sale of SBA loans		—		—		592		140		382		592		1,742
Service charges on deposits		1,409		1,336		1,318		1,188		1,151		4,063		3,303
Loan fees		470		528		436		410		501		1,434		1,313
Bank owned life insurance income		785		757		757		739		965		2,299		2,016
Swap fees		555		162		628		738		974		1,345		1,257
Other non-interest income		1,035		1,529		1,167		458		1,980		3,731		3,916
Total non-interest income		8,429		8,569		8,775		7,461		9,640		25,773		24,475
Compensation		17,769		18,462		18,541		17,151		17,442		54,772		50,723
Occupancy		594		638		588		581		567		1,820		1,721
Professional fees		1,289		1,493		1,446		1,001		1,071		4,228		4,016
Data processing		1,489		1,482		1,270		1,158		1,123		4,241		3,574
Marketing		735		840		711		938		876		2,286		2,906
Equipment		320		351		407		374		296		1,078		1,007
Computer software		2,063		1,958		1,921		1,902		1,826		5,942		5,085
FDIC insurance		696		819		909		800		817		2,424		2,432
Other non-interest expense		1,150		1,806		1,160		225		1,682		4,116		3,924
Total non-interest expense		26,105		27,849		26,953		24,130		25,700		80,907		75,388
Income before income tax expense		19,459		16,796		14,380		16,238		17,386		50,635		44,215
Income tax expense		2,887		1,216		2,180		2,905		2,993		6,283		7,229
Net income		$16,572		$15,580		$12,200		$13,333		$14,393		$44,352		$36,986
Preferred stock dividends		218		219		219		219		218		656		656
Net income available to common shareholders		$16,354		$15,361		$11,981		$13,114		$14,175		$43,696		$36,330
Per common share:
Basic earnings		$1.95		$1.84		$1.44		$1.58		$1.70		$5.24		$4.37
Diluted earnings		1.95		1.84		1.44		1.58		1.70		$5.24		$4.37
Dividends declared		0.34		0.34		0.34		0.29		0.29		$1.02		$0.87
Book value		46.98		45.81		44.12		43.19		41.60		$46.98		$41.60
Tangible book value		45.56		44.38		42.68		41.75		40.16		$45.56		$40.16
Weighted-average common shares outstanding(1)		8,245,915		8,208,002		8,186,174		8,173,059		8,171,404		8,209,475		8,153,181
Weighted-average diluted common shares outstanding(1)		8,245,915		8,208,002		8,186,174		8,173,059		8,171,404		8,209,475		8,153,181

(1)

Excluding participating securities.

NET INTEREST INCOME ANALYSIS
(Unaudited)		For the Three Months Ended
(Dollars in thousands)		September 30, 2026						June 30, 2026						September 30, 2025
		Average Balance		Interest		Average Yield/Rate(4)		Average Balance		Interest		Average Yield/Rate(4)		Average Balance		Interest		Average Yield/Rate(4)
Interest-earning assets
Commercial real estate and other mortgage loans(1)		$2,192,127		$33,226		6.06%		$2,137,098		$31,660		5.93%		$1,986,541		$31,819		6.41%
Commercial and industrial loans(1)		1,371,801		27,426		8.00		1,364,594		27,594		8.09		1,259,448		26,009		8.26
Consumer and other loans(1)		52,462		726		5.54		48,723		756		6.21		49,891		672		5.39
Total loans and leases receivable(1)		3,616,390		61,378		6.79		3,550,415		60,010		6.76		3,295,880		58,500		7.10
Mortgage-related securities(2)		368,080		3,933		4.27		372,462		3,941		4.23		350,971		3,745		4.27
Other investment securities(3)		47,864		278		2.32		48,679		279		2.29		47,367		266		2.25
FHLB stock		12,171		302		9.93		14,799		338		9.14		9,420		225		9.55
Short-term investments		66,650		634		3.80		46,681		453		3.88		90,852		1,010		4.45
Total interest-earning assets		4,111,155		66,525		6.47		4,033,036		65,021		6.45		3,794,490		63,746		6.72
Goodwill and other intangible assets		11,889						11,972						12,056
Non-interest-earning assets		265,136						250,531						236,970
Total assets		$4,388,180						$4,295,539						$4,043,516
Interest-bearing liabilities
Transaction accounts		$1,289,029		8,707		2.70%		$1,279,116		$8,556		2.68%		$1,050,822		$8,809		3.35%
Money market		974,724		7,043		2.89		931,051		6,488		2.79		851,659		7,183		3.37
Certificates of deposit		221,669		1,960		3.54		235,510		2,109		3.58		278,191		2,751		3.96
Wholesale deposits		634,759		6,458		4.07		590,739		5,952		4.03		754,690		7,595		4.03
Total interest-bearing deposits		3,120,181		24,168		3.10		3,036,416		23,105		3.04		2,935,362		26,338		3.59
FHLB advances		269,888		2,394		3.55		327,915		2,891		3.53		207,762		1,639		3.16
Other borrowings		54,876		885		6.45		54,846		883		6.44		54,761		883		6.45
Total interest-bearing liabilities		3,444,945		27,447		3.19		3,419,177		26,879		3.14		3,197,885		28,860		3.61
Non-interest-bearing demand deposit accounts		456,812						414,376						416,359
Other non-interest-bearing liabilities		84,817						74,188						77,300
Total liabilities		3,986,574						3,907,741						3,691,544
Common stockholders' equity		389,614						375,806						339,980
Preferred stock		11,992						11,992						11,992
Total stockholders’ equity		401,606						387,798						351,972
Total liabilities and stockholders’ equity		$4,388,180						$4,295,539						$4,043,516
Net interest income				$39,078						$38,142						$34,886
Interest rate spread						3.29%						3.30%						3.11%
Net interest-earning assets		$666,210						$613,859						$596,605
Net interest margin						3.80%						3.78%						3.68%

(1)		The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.
(2)		Includes amortized cost basis of assets available for sale and held to maturity.
(3)		Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.
(4)		Represents annualized yields/rates.

BETA ANALYSIS
		For the Three Months Ended
(Unaudited)		September 30, 2026		September 30, 2025
		Average Yield/Rate(3)		Average Yield/Rate(3)		Increase (Decrease)
Total loans and leases receivable (a)		6.79%		7.10%		(0.31)%
Total interest-earning assets(b)		6.47%		6.72%		(0.25)%
Total core deposits(e)		2.41%		2.89%		(0.48)%
Total bank funding(f)		2.76%		3.14%		(0.38)%
Net interest margin(g)		3.80%		3.68%		0.12%
Effective fed funds rate (2)(i)		3.67%		4.30%		(0.63)%
Beta Calculations:
Total loans and leases receivable(a)/(i)						49.3%
Total interest-earning assets(b)/(i)						39.2%
Total core deposits(e/i)						76.2%
Total bank funding(f)/(i)						60.3%

1. Excludes prepayment activity in all periods of comparison.
2. Board of Governors of the Federal Reserve System (US), Effective Federal Funds Rate [DFF]. Retrieved from FRED, Federal Reserve Bank of St. Louis. Represents average daily rate.
3. Represents annualized yields/rates.

PROVISION FOR CREDIT LOSS COMPOSITION
(Unaudited)		For the Three Months Ended										For the Nine Months Ended
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Change due to qualitative factors		$(198)		$(357)		$(706)		$(538)		$(243)		$(1,261)		$(8)
Change due to quantitative factors		36		541		10		(607)		(173)		587		2,133
Charge-offs		2,921		1,524		2,331		2,809		1,708		6,776		6,856
Recoveries		(310)		(486)		(168)		(264)		(440)		(964)		(1,170)
Change in reserves on individually evaluated loans, net		(1,224)		(37)		382		(76)		(550)		(879)		(3,292)
Change due to loan growth, net		535		615		1,068		408		795		2,218		2,072
Change in unfunded commitments reserve		183		266		43		123		343		492		209
Total provision for credit losses		$1,943		$2,066		$2,960		$1,855		$1,440		$6,969		$6,800

ALLOWANCE FOR CREDIT LOSS COMPOSITION
		As of
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025
		(In Thousands)		% of Total Loans and Leases		(In Thousands)		% of Total Loans and Leases		(In Thousands)		% of Total Loans and Leases		(In Thousands)		% of Total Loans and Leases
Allowance for credit losses:
Loans collectively evaluated		$31,871		0.87%		$31,499		0.88%		$30,700		0.88%		$30,327		0.90%
Loans individually evaluated		4,670		0.13%		5,894		0.16%		5,931		0.17%		5,550		0.16%
Unfunded commitments reserve		2,308				2,124				1,858				1,815
Total		38,849		1.06%		39,517		1.10%		38,489		1.10%		37,692		1.12%
Loans and lease receivables:		$3,673,817				$3,585,615				$3,498,903				$3,373,241

PERFORMANCE RATIOS
		For the Three Months Ended										For the Nine Months Ended
(Unaudited)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Return on average assets (annualized)		1.49%		1.43%		1.13%		1.25%		1.40%		1.35%		1.23%
Return on average tangible common equity (annualized)		17.32%		16.89%		13.55%		15.35%		17.29%		15.96%		15.23%
Efficiency ratio		55.12%		57.57%		61.14%		56.61%		57.44%		57.87%		59.51%
Interest rate spread		3.29%		3.30%		3.06%		2.99%		3.11%		3.22%		3.11%
Net interest margin		3.80%		3.78%		3.56%		3.53%		3.68%		3.72%		3.68%
Average interest-earning assets to average interest-bearing liabilities		119.34%		117.95%		118.85%		119.25%		118.66%		118.72%		119.17%

ASSET QUALITY RATIOS
(Unaudited)		As of
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Non-accrual loans and leases		$40,240		$38,062		$40,503		$43,855		$23,513
Repossessed assets		—		—		—		—		—
Total non-performing assets		$40,240		$38,062		$40,503		$43,855		$23,513
Non-accrual loans and leases as a percent of total gross loans and leases		1.09%		1.06%		1.16%		1.30%		0.70%
Non-performing assets as a percent of total gross loans and leases plus repossessed assets		1.09%		1.06%		1.16%		1.30%		0.70%
Non-performing assets as a percent of total assets		0.91%		0.86%		0.94%		1.07%		0.58%
Allowance for credit losses as a percent of total gross loans and leases		1.06%		1.10%		1.10%		1.12%		1.15%
Allowance for credit losses as a percent of non-accrual loans and leases		96.54%		103.82%		95.03%		85.95%		163.24%

NET CHARGE-OFFS (RECOVERIES)
(Unaudited)		For the Three Months Ended										For the Nine Months Ended
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Charge-offs		$2,921		$1,524		$2,331		$2,809		$1,708		$6,776		$6,856
Recoveries		(310)		(486)		(168)		(264)		(440)		(964)		(1,170)
Net charge-offs (recoveries)		$2,611		$1,038		$2,163		$2,545		$1,268		$5,812		$5,686
Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized)		0.29%		0.12%		0.25%		0.30%		0.15%		0.22%		0.23%

CAPITAL RATIOS
		As of and for the Three Months Ended
(Unaudited)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Total capital to risk-weighted assets		12.25%		12.21%		12.15%		12.24%		12.18%
Tier I capital to risk-weighted assets		9.95%		9.84%		9.74%		9.79%		9.67%
Common equity tier I capital to risk-weighted assets		9.65%		9.54%		9.43%		9.48%		9.34%
Tier I capital to adjusted assets		9.22%		9.11%		8.93%		8.86%		8.87%
Tangible common equity to tangible assets		8.59%		8.44%		8.26%		8.54%		8.31%

LOAN AND LEASE RECEIVABLE COMPOSITION
(Unaudited)		As of
(in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Commercial real estate:
Commercial real estate - owner occupied		$347,783		$345,984		$306,593		$293,706		$287,005
Commercial real estate - non-owner occupied		955,378		874,669		925,425		885,870		871,807
Construction and land development		184,718		227,782		224,866		248,560		236,590
Multi-family		690,323		654,405		577,271		571,468		565,102
1-4 family		60,868		58,981		61,332		60,661		66,735
Total commercial real estate		2,239,070		2,161,821		2,095,487		2,060,265		2,027,239
Commercial and industrial		1,389,826		1,380,476		1,358,413		1,273,997		1,264,111
Consumer and other		48,021		46,027		47,223		40,965		45,323
Total gross loans and leases receivable		3,676,917		3,588,324		3,501,123		3,375,227		3,336,673
Less:
Allowance for credit losses		36,541		37,393		36,631		35,877		36,690
Deferred loan fees		3,100		2,709		2,220		1,986		1,717
Loans and leases receivable, net		$3,637,276		$3,548,222		$3,462,272		$3,337,364		$3,298,266

DEPOSIT COMPOSITION
(Unaudited)		As of
(in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Non-interest-bearing transaction accounts		$477,865		$420,556		$405,281		$378,770		$400,697
Interest-bearing transaction accounts		1,288,239		1,297,353		1,170,271		1,103,696		1,050,233
Money market accounts		1,003,735		936,914		960,052		905,773		840,477
Certificates of deposit		209,118		222,852		260,455		284,764		300,703
Wholesale deposits		770,816		714,490		769,943		707,412		740,961
Total deposits		$3,749,773		$3,592,165		$3,566,002		$3,380,415		$3,333,071
Uninsured deposits		$1,381,507		$1,192,776		$1,237,344		$1,220,177		$1,100,868
Less: uninsured deposits collateralized by pledged assets		22,492		42,130		59,613		68,656		72,561
Total uninsured, net of collateralized deposits		$1,359,015		$1,150,646		$1,177,731		$1,151,521		$1,028,307
% of total deposits		36.2%		32.0%		33.0%		34.1%		30.9%

SOURCES OF LIQUIDITY
(Unaudited)		As of
(in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Short-term investments		$59,417		$131,294		$104,565		$8,714		$8,074
Collateral value of unencumbered pledged loans		1,225,386		987,993		968,320		992,398		906,042
Market value of unencumbered securities		369,369		378,423		387,700		388,474		376,783
Readily accessible liquidity		1,654,172		1,497,710		1,460,585		1,389,586		1,290,899
Fed fund lines		45,000		45,000		45,000		45,000		45,000
Excess brokered CD capacity(1)		846,907		878,888		806,268		775,851		732,951
Total liquidity		$2,546,079		$2,421,598		$2,311,853		$2,210,437		$2,068,850
Total uninsured, net of collateralized deposits		$1,359,015		$1,150,646		$1,177,731		$1,151,521		$1,028,307

1. Bank internal policy limits brokered CDs to 50% of total bank funding when combined with value of unencumbered pledged loans.

EARNINGS PER SHARE
		For the Three Months Ended																				For the Nine Months Ended
		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				September 30, 2026				September 30, 2025
		(Dollars in Thousands, Except Share Data)
Basic earnings per common share
Net Income		$	16,572			$	15,580			$	12,200			$	13,333			$	14,393			$	44,352			$	36,986
Less: preferred stock dividends			218				219				219				219				218				656				656
Less: earnings allocated to participating securities			239				233				220				235				259				702				719
Basic earnings allocated to common shareholders		$	16,115			$	15,128			$	11,761			$	12,879			$	13,916			$	42,994			$	35,611
Weighted-average common shares outstanding, excluding participating securities			8,245,915				8,208,002				8,186,174				8,173,059				8,171,404				8,209,475				8,153,181
Basic earnings per common share		$	1.95			$	1.84			$	1.44			$	1.58			$	1.70			$	5.24			$	4.37
Diluted earnings per common share
Earnings allocated to common shareholders, diluted		$	16,115			$	15,128			$	11,761			$	12,879			$	13,916			$	42,994			$	35,611
Weighted-average diluted shares outstanding, excluding participating securities			8,245,915				8,208,002				8,186,174				8,173,059				8,171,404				8,209,475				8,153,181
Diluted earnings per common share		$	1.95			$	1.84			$	1.44			$	1.58			$	1.70			$	5.24			$	4.37

PRIVATE WEALTH OFF-BALANCE SHEET COMPOSITION
(Unaudited)		As of
(in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Trust assets under management		$3,946,813		$3,947,362		$3,613,536		$3,541,768		$3,543,594
Trust assets under administration		279,961		287,226		267,214		272,910		270,222
Total trust assets		$4,226,774		$4,234,588		$3,880,750		$3,814,678		$3,813,816

NON-GAAP RECONCILIATIONS

Certain financial information provided in this release is determined by methods other than in accordance with generally accepted accounting principles (United States) (“GAAP”). Although the Company’s management believes that these non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies.

TANGIBLE BOOK VALUE

“Tangible book value per share” is a non-GAAP measure representing tangible common equity divided by total common shares outstanding. “Tangible common equity” itself is a non-GAAP measure representing common stockholders’ equity reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in period-to-period changes in book value per common share exclusive of changes in intangible assets. The information provided below reconciles tangible book value per share and tangible common equity to their most comparable GAAP measures.

(Unaudited)		As of
(Dollars in thousands, except per share amounts)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Common stockholders’ equity		$392,612		$383,315		$368,088		$359,593		$346,327
Less: Goodwill and other intangible assets		(11,833)		(11,933)		(12,011)		(11,985)		(12,041)
Tangible common equity		$380,779		$371,382		$356,077		$347,608		$334,286
Common shares outstanding		8,357,781		8,368,320		8,343,519		8,325,376		8,324,387
Book value per share		$46.98		$45.81		$44.12		$43.19		$41.60
Tangible book value per share		$45.56		$44.38		$42.68		$41.75		$40.16

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS

“Tangible common equity to tangible assets” (“TCE”) is defined as the ratio of common stockholders’ equity reduced by intangible assets, if any, divided by total assets reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, each exclusive of changes in intangible assets. The information below reconciles tangible common equity and tangible assets to their most comparable GAAP measures.

(Unaudited)		As of
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Common stockholders’ equity		$392,612		$383,315		$368,088		$359,593		$346,327
Less: Goodwill and other intangible assets		(11,833)		(11,933)		(12,011)		(11,985)		(12,041)
Tangible common equity (a)		$380,779		$371,382		$356,077		$347,608		$334,286
Total assets		$4,444,272		$4,410,004		$4,320,855		$4,081,887		$4,034,845
Less: Goodwill and other intangible assets		(11,833)		(11,933)		(12,011)		(11,985)		(12,041)
Tangible assets (b)		$4,432,439		$4,398,071		$4,308,844		$4,069,902		$4,022,804
Tangible common equity to tangible assets		8.59%		8.44%		8.26%		8.54%		8.31%

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

“Return on Average Tangible Common Equity” (“ROATCE”) is defined as the ratio of net income available to common shareholders divided by average tangible common equity. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the return generated for common shareholders on the tangible capital invested. The information below reconciles average tangible common equity to its most comparable GAAP measure.

(Unaudited)		For the Three Months Ended										For the Nine Months Ended
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Net Income available to common shareholders (a)		$16,354		$15,361		$11,981		$13,114		$14,175		$43,696		$36,330
Average common stockholders' equity		389,614		375,806		365,659		353,820		339,980		377,029		330,188
Less: average goodwill and other intangible assets		11,889		11,972		11,987		12,023		12,056		11,949		12,032
Average tangible common equity (b)		$377,725		$363,834		$353,672		$341,797		$327,924		$365,080		$318,156
Return on average tangible common equity (a)/(b)		17.32%		16.89%		13.55%		15.35%		17.29%		15.96%		15.23%

EFFICIENCY RATIO & PRE-TAX, PRE-PROVISION ADJUSTED EARNINGS

“Efficiency ratio” is a non-GAAP measure representing non-interest expense excluding the effects of the SBA recourse provision, impairment of tax credit investments, losses or gains on repossessed assets, amortization of other intangible assets and other discrete items, if any, divided by operating revenue, which is equal to net interest income plus non-interest income less realized gains or losses on securities, if any. “Pre-tax, pre-provision adjusted earnings” is defined as operating revenue less operating expense. In the judgment of the Company’s management, the adjustments made to non-interest expense and non-interest income allow investors and analysts to better assess the Company’s operating expenses in relation to its core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items. The information provided below reconciles the efficiency ratio and pre-tax, pre-provision adjusted earnings to its most comparable GAAP measure.

(Unaudited)		For the Three Months Ended										For the Nine Months Ended
(Dollars in thousands)		September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Total non-interest expense		$26,105		$27,849		$26,953		$24,130		$25,700		$80,907		$75,388
Less:
Net loss (gain) on repossessed assets		—		—		—		—		31		—		27
Impairment (recovery) of tax credit investments		300		552		(7)		229		—		845		110
SBA severance expense		—		405		—		—		—		405		—
Contribution to First Business Charitable Foundation		—		—		—		—		234		—		234
SBA recourse benefit		(381)		—		(121)		—		(5)		(502)		(64)
Total operating expense (a)		$26,186		$26,892		$27,081		$23,901		$25,440		$80,159		$75,081
Net interest income		$39,078		$38,142		$35,518		$34,762		$34,886		$112,738		$101,928
Total non-interest income		8,429		8,569		8,775		7,461		9,640		25,773		24,475
Less:
Bank owned life insurance claim		—		—		—		—		234		—		234
Adjusted non-interest income		8,429		8,569		8,775		7,461		9,406		25,773		24,241
Total operating revenue (b)		$47,507		$46,711		$44,293		$42,223		$44,292		$138,511		$126,169
Efficiency ratio		55.12%		57.57%		61.14%		56.61%		57.44%		57.87%		59.51%
Pre-tax, pre-provision adjusted earnings (b - a)		$21,321		$19,819		$17,212		$18,322		$18,852		$58,352		$51,088

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029393447/en/

First Business Financial Services, Inc.
Brian D. Spielmann
Chief Financial Officer
608-232-5977
bspielmann@firstbusiness.bank

Source: First Business Financial Services, Inc.

Key Terms

eps financial

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

View in glossary

pre-tax, pre-provision financial

Earnings described as "pre-tax, pre-provision" measure a company’s profit before two specific deductions: taxes and provisions for potential losses such as loan defaults or asset write-downs. Investors use it to see the business’s underlying performance before predictable charges, similar to checking a restaurant’s sales before counting taxes and money set aside for spoiled food; it highlights operating strength but can overstate cash available to owners.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-accrual financial

A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.