Overview

• US commercial banking firm's Q1 net income and revenue rose yr/yr on loan and deposit growth

• Tangible book value per share grew 13.6% yr/yr, reflecting strong earnings

Outlook

• Company maintains full-year 2026 target of 10% loan growth and above-average shareholder returns

• Company expects full-year 2026 net interest margin in the 3.60%-3.65% range

• Company projects 2026 effective tax rate between 16% and 18%

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said double-digit increases in loans and core deposits drove Q1 results, with C&I lending portfolios accounting for two-thirds of late-quarter loan growth

• NON-INTEREST INCOME - Co said growth in non-interest income, including higher service charges on deposits and gains from SBA loan sales, reinforced revenue diversification

• NON-PERFORMING LOANS - Co said progress in resolving non-performing CRE credits contributed to an 8% decline in non-accrual loans in Q1

Company press release: ID:nBw5vDYGva

Key Details

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 18.7% above its April 22 closing price of $57.27

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.