First Business Bank Q2 EPS rises on loan, deposit growth

First Business Financial Services

30/07/2026 21:12

Overview
US commercial bank's Q2 operating revenue and EPS rose yr/yr on loan and deposit growth
Q2 EPS included a $0.14 net benefit from a tax item and one-time compensation costs
Company exited out-of-market SBA 7(a) lending to focus on higher-return growth areas

Outlook
Company maintains annual net interest margin target range of 3.60%-3.65% for 2026
First Business Bank expects full-year 2026 effective tax rate between 13% and 15%
Company reiterates annual goal of 10% growth in loans, core deposits, revenue, and earnings

Result Drivers
LOAN AND DEPOSIT GROWTH - Co said strong growth in loans and core deposits drove higher net interest income and supported record pre-tax, pre-provision earnings
NET INTEREST MARGIN EXPANSION - Net interest margin increased due to higher prepayment and asset-based loan fees and redeployment of excess cash into loan growth
NON-INTEREST INCOME GROWTH - Higher private wealth management fees and limited partnership investment income contributed to non-interest income growth

Company press release: ID:nBw2szFBma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
 
$46.71 mln
 
Q2 EPS
 
$1.84
 
Q2 Net Interest Income
 
$38.14 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for First Business Financial Services Inc is $68.00, about 0.6% above its July 29 closing price of $67.58
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
July 30 - Cullen/Frost Bankers Q2 net income rises on loan and deposit growth 
July 28 - Orange County Bancorp Q2 net income rises 31% to record, boosted by tax benefit
July 29 - SoFi's unchanged profit forecast tempers record quarter, revenue outlook lift

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)