First Business Financial Services announced a strategic exit from national out-of-footprint SBA 7(a) lending and reported record pretax preprovision earnings of $19.8 million for the second quarter of 2026. Diluted earnings per share were $1.84, including a net benefit of $0.14 from a tax valuation allowance release and SBA-related severance costs. The exit is expected to be immediately net positive to earnings, with a projected $310,000 pretax quarterly benefit by 2027, or about $0.03 per share after tax. First half revenue grew 11% over the prior year, exceeding the company's 10% annual growth target, and the efficiency ratio measured 59.31%, achieving the sub-60% long-term target. Tangible book value increased 15.2% year over year, surpassing the 10% annual growth goal, while net interest margin rose 22 basis points to 3.78%, driven by higher asset yields and elevated prepayment fees.
First Business Financial ServicesRecord PTPP earnings and strategic exit from SBA lending expected to boost earnings.
