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First Business Financial
(NASDAQ:FBIZ)
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Rating:78Outperform
Price Target:
$76.00
▲(28.10% Upside)
Action:Reiterated
Date:05/29/26
FBIZ scores well on fundamentals and valuation: solid profitability/ROE, improved leverage, and strong cash flow quality alongside a low P/E and supportive dividend yield. The score is tempered by near-term revenue softness and margin normalization in the financials, plus earnings-call risks around Q2 growth softness, slightly elevated charge-offs, expense pressure, and ongoing timing uncertainty tied to the remaining downgraded CRE position. Technicals are constructive but show some near-term overbought signaling via elevated stochastic.
Positive Factors
Strong loan and core deposit growth
Sustained double-digit loan growth and rapid core deposit expansion indicate durable franchise growth and improved core funding mix. Higher loan balances boost durable net interest income while core deposits lower funding cost volatility and support scalable balance-sheet growth over the medium term.
Negative Factors
Remaining downgraded CRE exposure timing risk
A concentrated, downgraded CRE position (~$17M) creates execution and timing risk for credit resolution. Protracted recovery or legal/foreclosure timelines could delay capital release, require reserves, or compress returns, making near-term asset-quality outcomes uncertain for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong loan and core deposit growth
Sustained double-digit loan growth and rapid core deposit expansion indicate durable franchise growth and improved core funding mix. Higher loan balances boost durable net interest income while core deposits lower funding cost volatility and support scalable balance-sheet growth over the medium term.
Read all positive factors
First Business Financial Key Performance Indicators (KPIs)
Any
Gross Loans & Leases Receivable Breakdown
Shows how the bank’s loan portfolio is split by loan type, industry, and term, revealing where its interest income and credit risk are concentrated. A mix heavy in commercial real estate or equipment finance can lift yields but increase vulnerability to sector downturns, while broader diversification suggests steadier earnings and lower concentration risk. Useful for spotting potential future losses, funding needs, and how changes in the economy or interest rates could impact profitability.
Shows how the bank’s loan portfolio is split by loan type, industry, and term, revealing where its interest income and credit risk are concentrated. A mix heavy in commercial real estate or equipment finance can lift yields but increase vulnerability to sector downturns, while broader diversification suggests steadier earnings and lower concentration risk. Useful for spotting potential future losses, funding needs, and how changes in the economy or interest rates could impact profitability.
Data provided by:
The Fly
The FlyFirst Business Financial (FBIZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$556.33M
Dividend Yield2.08%
Average Volume (3M)25.29K
Price to Earnings (P/E)10.7
Beta (1Y)0.76
Revenue Growth5.94%
EPS Growth10.27%
CountryUS
Employees365
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.14
Shares Outstanding8,362,166
10 Day Avg. Volume17,199
30 Day Avg. Volume25,287
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.19
Price to Sales (P/S)1.59
P/FCF Ratio7.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$65.75Price Target Upside10.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)6.22
Revenue Forecast (FY)$183.25M
First Business Financial Business Overview & Revenue Model
Company Description
First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high...
How the Company Makes Money
FBIZ primarily makes money through its banking and related financial services operations. The largest driver of earnings is typically net interest income: the company earns interest and fees on loans and other interest-earning assets (e.g., commer...
First Business Financial Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial performance with multiple strong metrics: double-digit loan and deposit growth, 16% fee income growth, record Private Wealth revenue, >9% net income/EPS growth and 14% tangible book value per share increase. These positives are tempered by timing-driven margin noise (late-quarter loan deployment and fewer accrual days), a slightly elevated Q1 charge-off rate versus target, higher early-year compensation and professional expenses, and a lighter pipeline going into Q2 with some known payoffs. Management expects margins and growth to normalize into targeted ranges in the back half of 2026 and continues to project 10% annual growth targets and controlled expense/run-rate assumptions.Positive Updates
Strong Loan Growth
Loans grew $126 million or 15% year-over-year in Q1, with $90 million (72% of the quarter's growth) occurring in March, driven by C&I, asset-based lending, and strong markets in Madison, Milwaukee and Kansas City.
Negative Updates
Timing-Driven Margin Noise
Late-quarter loan growth (heavy March concentration) and 5 basis point Q1 impact from fewer accrual days produced NIM timing noise; reported NIM sat marginally outside range this quarter and was influenced by deployment/funding timing rather than structural yield deterioration.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Loan Growth
Loans grew $126 million or 15% year-over-year in Q1, with $90 million (72% of the quarter's growth) occurring in March, driven by C&I, asset-based lending, and strong markets in Madison, Milwaukee and Kansas City.
Read all positive updates
Company Guidance
The company guided to continuing its 5‑year plan targets including 10% annual loan and core deposit growth and 10% fee‑income growth, reiterating a full‑year net interest margin target of $3.60–$3.65 (360–365 bps) and a goal of annual positive operating leverage (expense growth modestly below 10% revenue growth). Key metrics cited: Q1 loan growth of $126M (15%) with $90M (72%) in March, core deposits +18% linked quarter / +14% YoY, fee income +~16% YoY, Private Wealth revenue a record $3.9M (+11% YoY) and >40% of quarterly fee income, net income and EPS +>9% YoY, and tangible book value per share +14% YoY. Margin and credit notes included reported NIM of 356 bps (+3 bps), adjusted NIM 361 bps after a 5‑bp fewer‑accrual‑days impact, Q1 charge‑offs ~25 bps versus a modeled ~20 bps for the year, a 15.2% Q1 effective tax rate (guidance 16–18% for 2026), provisions partly driven by 2.9% loan growth in the quarter (≈$1M), and ongoing resolution of a $20.4M downgraded CRE position ( $3.4M sold at par, $17M remaining) with further resolution expected in H2 2026.First Business Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.81M | 279.25M | 262.38M | 226.24M | 150.80M | 124.09M |
| Gross Profit | 163.13M | 159.97M | 144.63M | 135.71M | 131.72M | 118.56M |
| EBITDA | 65.21M | 64.23M | 54.89M | 50.77M | 56.31M | 50.58M |
| Net Income | 51.35M | 50.32M | 44.24M | 37.03M | 40.86M | 35.76M |
Balance Sheet | ||||||
| Total Assets | 4.32B | 4.08B | 3.85B | 3.51B | 2.98B | 2.65B |
| Cash, Cash Equivalents and Short-Term Investments | 513.54M | 39.48M | 499.09M | 436.52M | 314.71M | 262.81M |
| Total Debt | 310.48M | 259.41M | 327.98M | 339.87M | 466.98M | 418.93M |
| Total Liabilities | 3.94B | 3.71B | 3.52B | 3.22B | 2.72B | 2.42B |
| Stockholders Equity | 380.08M | 371.58M | 328.59M | 289.59M | 260.64M | 232.42M |
Cash Flow | ||||||
| Free Cash Flow | 52.80M | 61.10M | 57.27M | 49.41M | 35.42M | 35.60M |
| Operating Cash Flow | 53.45M | 61.70M | 57.49M | 52.29M | 38.65M | 35.99M |
| Investing Cash Flow | -414.46M | -373.38M | -328.47M | -506.85M | -245.27M | -111.01M |
| Financing Cash Flow | 327.52M | 193.47M | 289.17M | 491.38M | 252.19M | 75.22M |
First Business Financial Technical Analysis
Positive
59.33
Price Trends
59.69
Positive
57.33
Positive
55.29
Positive
Market Momentum
1.49
Negative
65.72
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIZ, the sentiment is Positive. The current price of 59.33 is below the 20-day moving average (MA) of 63.37, below the 50-day MA of 59.69, and above the 200-day MA of 55.29, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIZ.
First Business Financial Risk Analysis
First Business Financial disclosed 45 risk factors in its most recent earnings report. First Business Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Business Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $734.66M | 6.76 | 24.82% | ― | 30.36% | 306.20% | |
79 Outperform | $560.04M | 11.51 | 10.86% | 1.92% | 3.07% | 25.18% | |
78 Outperform | $556.33M | 10.70 | 14.12% | 2.08% | 5.94% | 10.27% | |
75 Outperform | $657.61M | 14.59 | 12.46% | 0.73% | 7.26% | 25.66% | |
74 Outperform | $518.44M | 9.15 | 12.28% | 3.69% | 59.56% | 203.82% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $627.32M | 16.67 | 4.75% | 5.80% | -0.49% | ― |
* Financial Sector Average
FBIZ
First Business Financial
65.70
13.25
25.27%
HBCP
Home Bancorp
69.31
14.42
26.27%
KRNY
Kearny Financial
9.50
3.41
55.94%
CARE
Carter Bankshares
33.35
15.25
84.25%
RRBI
Red River Bancshares
97.73
35.39
56.77%
COFS
ChoiceOne Financial Services
33.93
5.81
20.64%
First Business Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
First Business Financial Adds Independent Director to Board
Positive
May 28, 2026
On May 22, 2026, First Business Financial Services, Inc. expanded its Board of Directors from eight to nine members and appointed veteran banker Scott M. Ferris as a Class III director, effective June 1, 2026, also naming him to the Audit and Oper...
Business Operations and StrategyFinancial Disclosures
First Business Financial Highlights Strong Q1 2026 Growth
Positive
May 5, 2026
On May 5, 2026, First Business Financial Services, Inc. published a first-quarter 2026 investor presentation detailing recent operating performance, financial condition, and strategy, which it will use in interactions with investors and analysts. ...
Executive/Board ChangesShareholder Meetings
First Business Financial shareholders back leadership and incentives
Positive
Apr 29, 2026
On April 24, 2026, First Business Financial Services, Inc. held its annual meeting of shareholders, where investors elected Class I directors Carla C. Chavarria, Jerry L. Kilcoyne, and Daniel P. Olszewski to terms running until the 2029 meeting, e...
Business Operations and StrategyFinancial Disclosures
First Business Financial Reports Solid First Quarter 2026 Results
Positive
Apr 23, 2026
On April 23, 2026, First Business Bank reported first quarter 2026 net income available to common shareholders of $12.0 million, or $1.44 per share, down from $1.58 in the prior quarter but up from $1.32 a year earlier, supported by double-digit y...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.