First Business Financial Services, Inc. (FBIZ) SEC Filings & Earnings Calls

Potential credit risk from rapid loan growth.

“Loans grew 10% linked quarter annualized; provision for credit losses decreased.”

Credit Risk from Transportation Loans

“Transportation, Equipment Finance: $14.4 million, or 0.4%, of total loans - $1.1 million, or 7.8%, of Equipment Finance Transportation loans are rated Category IV.”

Office CRE Exposure

“Office, Commercial Real Estate: $302.4 million, or 8.4%, of total loans - Management considered the following: office exposure is concentrated in the Wisconsin markets where local market vacancy rates are below national rates and none of the loans in this category are rated Category IV.” · word for word

Exit from SBA 7(a) lending outside footprint may have minimal impact on 2026 earnings but could affect future growth in that segment.

“We expect this to have a minimal impact on 2026 earnings and to provide a modest earnings benefit in 2027.” · word for word

Net Interest Margin Compression

“Net interest margin decreased to 3.56% for the three months ended March 31, 2026, compared to 3.69% for the same period in 2025.” · word for word

Credit Loss Provision Increase

“Provision for credit losses was $3.0 million for the three months ended March 31, 2026 compared to $2.7 million for the same period in 2025.” · word for word

Non-Performing Assets Elevated

“Non-performing assets were $40.5 million and 0.94% of total assets as of March 31, 2026.” · word for word

Non-performing CRE credit resolution progress but still a risk; energy cost impact on consumers not mentioned but could be a factor for the bank's loan book.

“Made progress toward resolving largest non-performing CRE credit; non-accrual loans down 8%.”

CEO retirement in May 2026 introduces leadership transition risk.

“As I approach my retirement from First Business Bank this coming May” · word for word

CEO Succession Risk

“We are well positioned to execute the planned leadership transition we announced in May 2025, with the Company’s President & Chief Operating Officer Dave Seiler set to assume the role of Chief Executive Officer in May 2026, following Corey’s retirement.” · word for word

Interest Rate Risk

“Diversified balance sheet growth and disciplined interest rate risk management drive an increase in net interest income amid uncertain rate environment” · word for word

CRE credit concentration and deterioration

“The increase in non-accrual loans and leases is primarily driven by a downgrade of $20.4 million of CRE loans from a single client relationship” · word for word

Net interest margin compression

“Net interest margin decreased to 3.64% for the year ended December 31, 2025, compared to 3.66% for the year ended December 31, 2024.” · word for word

Elevated loan payoffs in H2 2025 muted loan growth, indicating potential refinancing or competition.

“Loan growth was muted by elevated payoffs in the second half of 2025” · word for word

Non-accrual reversals impacted NIM by 10bps, suggesting credit quality watch items.

“Included a 10 bp impact of non-accrual reversals in the quarter.” · word for word

Increase in nonperforming loans due to a single client relationship; credit quality otherwise stable.

“While we saw an increase in nonperforming loans due to a single client relationship, we continue to experience stable credit quality across our performing portfolio.” · word for word

Standard banking risks; no new material risks.

“Forward-looking statements caution.”

Credit risk from charge-offs

“Net charge-offs of $5.7 million, comprised of $6.9 million of charge-offs and $1.2 million of recoveries, compared to net charge-offs $3.6 million.” · word for word

Interest rate risk

“Fluctuations in interest rates and market prices.” · word for word

Concentration risk in commercial real estate

“CRE loans represented 60.8% of total loans as of September 30, 2025.”

Non-performing assets increased 21% year-over-year, though down 18% from linked quarter.

“Non-performing assets $23,513 (up from $19,420 a year ago)”