Page 1

[ FOR IMMEDIATE RELEASE ] First Business Financial Services , Inc. 401 Charmany Drive Madison , WI 53719 Exhibit 99.1 -- FIRST BUSINESS BANK REPORTS STRONG SECOND QUARTER 2021 NET INCOME OF $ 8.2 MILLION -- Performance driven by loan growth , strength and diversification of fee income , and provision benefit -- -- Continued asset quality improvement , with non - performing assets down 39 % during the quarter MADISON , Wis . , July 29 , 2021 ( BUSINESS WIRE ) -- First Business Financial Services , Inc. ( the " Company " , the " Bank " , or " First Business Bank " ) ( Nasdaq : FBIZ ) reported net income of $ 8.2 million , or $ 0.95 diluted earnings per share , in the second quarter 2021. This compares to record net income of $ 9.7 million or $ 1.12 in the first quarter of 2021 , and $ 3.3 million or $ 0.38 in the second quarter of 2020 . " First Business Bank again delivered strong financial performance in the second quarter , highlighted by continued double - digit annualized loan growth , further improvement in asset quality metrics , and diversified fee income , " President and Chief Executive Officer Corey Chambas said . “ Our active management of asset quality led to another significant reduction in non - performing assets as well as a provision benefit that positively impacted the bottom - line . Our NPAs as a percentage of total assets are at the lowest level since 2006 and , based on what we are seeing today , we believe there will be additional reductions in NPAs and release of reserves in the second half of 2021. Therefore , at this time , we believe there will be no meaningful provision for the second half of 2021 , even though we expect double - digit organic loan growth to continue . " Quarterly Highlights • • • Exceptional Loan Growth . Loans , excluding Paycheck Protection Program ( “ PPP ” ) loans , grew $ 55.3 million , or 11.2 % annualized , from the first quarter of 2021 and $ 286.0 million , or 16.5 % , from the second quarter of 2020 , as we continued to expand specialized lending offerings for commercial clients and focus on business development across products and geographies . This marks the fourth consecutive quarter of 10 % or greater annualized loan growth , excluding PPP loans . Positive Asset Quality Trends . Non - performing assets ( " NPAs " ) declined 39.0 % to $ 11.6 million , marking the third consecutive quarterly reduction of more than 25 % . NPAs made up 0.42 % of total assets , excluding PPP loans , improving by 39 and 77 basis points from March 31 , 2021 and June 30 , 2020 , respectively . Diversified Fee Income . Second quarter 2021 non - interest income continued to reflect the strength and diversity of our fee income sources and contributed meaningfully to top - line revenue . Private wealth management generated record revenue of $ 2.7 million on $ 2.564 billion in assets under management and administration for the period , while gains on the sale of Small Business Administration ( " SBA " ) loans grew to $ 1.2 million . Robust Core Earnings and Top - Line Revenue . Our improved asset quality metrics , net interest margin stability , organic loan growth , and fee income generation produced strong net income of $ 8.2 million in the second quarter , up $ 4.9 million , or 147.8 % , compared to the same period in 2020. Top - line revenue of $ 28.0 million was up $ 2.8 million , or 11.0 % from the same period in 2020 . PPP Update . Our participation in PPP has been a tremendous benefit to our clients . As of June 30 , 2021 , the Company had $ 123.8 million in gross PPP loans outstanding and deferred processing fees outstanding of $ 3.1 million to be recognized into income in future quarters . During the quarter , $ 2.5 million of processing fees were recognized . 1