First Business Financial Services (FBIZ)
NASDAQ:FBIZ
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First Business Financial
(NASDAQ:FBIZ)
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Rating:73Outperform
Price Target:
$62.00
▲(4.50% Upside)
Action:ReiteratedDate:05/06/26
FBIZ scores well on fundamentals, led by solid profitability/ROE, improved leverage, and strong cash-flow quality, with supportive (low) valuation. The score is moderated by softer near-term technical momentum and earnings-call risks around Q2 growth softness, expense pressure, and credit/NPL resolution timing.
Positive Factors
Strong Profitability / ROE
Sustained mid-teens ROE indicates the franchise earns attractive returns on shareholder capital across cycles, enabling capital accumulation, dividend capacity, and reinvestment. This durability supports growth funding without excessive leverage and underpins long-term shareholder value creation.
Negative Factors
Top-line Softness & Margin Normalization
A modest TTM revenue decline and normalization of margins from prior peak levels indicate pressure on sustainable revenue growth and profit expansion. If revenue growth lags expense control, operating leverage weakens, possibly constraining reinvestment, dividend growth, or margin recovery over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability / ROE
Sustained mid-teens ROE indicates the franchise earns attractive returns on shareholder capital across cycles, enabling capital accumulation, dividend capacity, and reinvestment. This durability supports growth funding without excessive leverage and underpins long-term shareholder value creation.
Read all positive factors
First Business Financial (FBIZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$473.21M
Dividend Yield2.08%
Average Volume (3M)25.29K
Price to Earnings (P/E)9.0
Beta (1Y)0.78
Revenue Growth5.94%
EPS Growth10.27%
CountryUS
Employees354
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 Ratio0.53
Price to Book (P/B)1.19
Price to Sales (P/S)1.59
P/FCF Ratio7.25
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit3.96
Enterprise Value/Ebitda10.21
Forecast
1Y Price Target
$65.75Price Target Upside10.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)6.2
Revenue Forecast (FY)$181.47M
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 (1) net interest income and (2) noninterest (fee) income. Net interest income is earned from the spread between interest the bank receives on interest-earning assets—primarily commercial and industrial loans, com...
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 Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 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 | 63.33M | 60.45M | 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
55.61
Positive
55.45
Positive
52.83
Positive
Market Momentum
1.26
Negative
68.76
Neutral
76.75
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 above the 20-day moving average (MA) of 55.86, above the 50-day MA of 55.61, and above the 200-day MA of 52.83, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 68.76 is Neutral, neither overbought nor oversold. The STOCH value of 76.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIZ.
First Business Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $584.88M | 1.49 | 24.82% | ― | 30.36% | 306.20% | |
80 Outperform | $599.84M | 12.42 | 12.46% | 0.73% | 7.26% | 25.66% | |
79 Outperform | $505.30M | 10.30 | 10.86% | 1.92% | 3.07% | 25.18% | |
73 Outperform | $473.21M | 9.05 | 14.12% | 2.08% | 5.94% | 10.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $528.27M | 11.71 | 4.75% | 5.80% | -0.49% | ― | |
58 Neutral | $470.84M | 7.70 | 12.28% | 3.69% | 59.56% | 203.82% |
* Financial Sector Average
FBIZ
First Business Financial
56.59
10.13
21.80%
HBCP
Home Bancorp
64.43
14.57
29.22%
KRNY
Kearny Financial
8.16
2.20
36.89%
CARE
Carter Bankshares
26.32
10.70
68.50%
RRBI
Red River Bancshares
91.20
36.59
67.01%
COFS
ChoiceOne Financial Services
31.48
3.57
12.77%
First Business Financial Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
First Business Financial Names David Seiler as CEO
Positive
Apr 16, 2026
On April 15, 2026, First Business Financial Services, Inc. named David R. Seiler as its next president and chief executive officer and appointed him to its board of directors, both effective May 3, 2026, succeeding retiring CEO Corey A. Chambas an...
Executive/Board ChangesFinancial Disclosures
First Business Financial Announces Superior PRSU Vesting for Executives
Positive
Apr 14, 2026
On April 9, 2026, the Compensation Committee of First Business Financial Services, Inc. approved the vesting of Performance Restricted Stock Units granted in 2023 to eligible executive officers under its Long-Term Incentive Plan for the 2023–...
Business Operations and StrategyFinancial Disclosures
First Business Financial Highlights Strong 2025 Strategic Performance
Positive
Mar 12, 2026
On March 12, 2026, First Business Financial Services, Inc. released a CEO letter reviewing its performance for the year ended December 31, 2025, highlighting the execution of a long-term strategy centered on business banking without branches and a...
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.