FBIZ Stock Forecast & Price Target

First Business Financial Services Inc. demonstrated strong performance in its loan portfolio, with EOP loans increasing by 10% on a last quarter annualized (LQA) basis, slightly surpassing expectations, while average balances also rose by 7% LQA. Additionally, the company experienced growth in wealth management, with assets under management rising 2% quarter-over-quarter to $3.8 billion, contributing to relatively stable wealth management revenue of $3.7 million. Notably, First Business Financial Services Inc. reported a core net interest margin (NIM) increase of 1 basis point to 3.47%, alongside an increase in net interest income (NII) by 3% to $34.9 million, indicating positive momentum in financial performance metrics.

First Business Financial Services Inc. recorded net interest income (NII) of $33.8 million, representing a modest 2% increase quarter-over-quarter, but the net interest margin (NIM) declined by 2 basis points to 3.67%, indicating rising costs associated with deposits. Additionally, core fee income fell to $7.3 million, a decrease of 4% from the previous quarter and 8% below expectations, primarily attributed to weakened SBA revenue performance. Despite a reduction in non-performing loans, the overall outlook remains negative due to lower-than-expected core fee income and declining core loan yields, which are projected to impact profitability moving forward.