First Business Financial Services, Inc. (FBIZ) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to the First Business Financial Services Second Quarter 2026 Earnings Conference Call. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please note this event is being recorded, and today's comments may contain forward-looking statements that are subject to risks and uncertainties. Thank you for joining us. We appreciate your time and your interest in First Business Bank. Joining me today is our CFO, Brian Spielmann. We encourage you to review our earnings release and supplemental earnings call slides, which are available through our website at ir.firstbusiness.bank along with our other investor materials. Our team's outstanding execution drove our exceptional performance in the second quarter. We reported earnings per share of $1.84, which included a net benefit of 14 cents related to two one-time events. Excluding this benefit, EPS grew 18% from the first quarter and 26% from last year's second quarter. Pre-tax, pre-provision earnings grew to a record $19.8 million for the quarter and were up 15% for the first six months of 2026, reflecting strong contributions across the bank. We are very pleased with this performance. I'll cover the one-time events first. During the second quarter, we released the remaining $1.5 million of a deferred tax valuation allowance related to the changes in Wisconsin state law enacted in 2023. Brian will cover this in greater detail. This resulted in an 18-cent benefit to second quarter earnings per share and about a 9 percentage point decrease in the effective tax rate for the quarter. The second one-time item was $405,000 in SBA-related severance costs, which offset the ...