Earnings release
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Exhibit 99.1 1 FIRST BUSINESS BANK REPORTS RECORD THIRD QUARTER EARNINGS -- Core deposit growth outpaces robust loan growth; positive operating leverage drives further tangible book value growth -- MADISON, Wis., October 29, 2026 (BUSINESS WIRE) -- First Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq: FBIZ) reported quarterly net income available to common shareholders of $16.4 million, or earnings per share ("EPS") of $1.95. This compares to net income available to common shareholders of $15.4 million, or $1.84 per share, in the second quarter of 2026 and $14.2 million, or $1.70 per share, in the third quarter of 2025. “Our record third quarter results reflect strong execution across First Business Bank’s relationship-based model,” said Dave Seiler, President and Chief Executive Officer. “Annualized loan growth of approximately 10% was more than fully funded by 14% annualized core deposit growth, while a strong net interest margin and disciplined expense management drove record pre-tax, pre-provision earnings. Through the first nine months of 2026, earnings per share increased 20%, pre-tax, pre-provision earnings increased 14%, and tangible book value per share grew 13% from the prior year.” “We expect expenses to increase from the third-quarter level as we make planned investments in talent, marketing, technology, and infrastructure to support continued growth. These investments are integral to our long-term model of approximately 10% annual balance sheet growth and positive annual operating leverage. We believe consistent execution of our strategic plan, together with disciplined credit and capital management, will continue to compound earnings and tangible book value per share and support strong long-term profitability.” Quarterly Highlights • Record Earnings and Pre-Tax, Pre-Provision ("PTPP") Growth. Net income available to common shareholders reached a record $16.4 million, or $1.95 per diluted share. PTPP adjusted earnings grew to a record $21.3 million, up 7.6% and 13.1% from the linked and prior-year quarters, respectively. • Relationship-Based Deposit Growth Funded Loan Expansion. Core deposits increased by $101.3 million, or 14.1% annualized, from the linked quarter and $386.8 million, or 14.9%, from the prior-year quarter, outpacing loan growth in both periods. Core deposits improved to 76.7% of total bank funding, allowing wholesale funding to decline by $103.1 million. • Continued Loan Growth. Loans increased $88.6 million, or 9.9% annualized, from the linked quarter and $340.2 million, or 10.2%, from the third quarter of 2025. • Strong Net Interest Margin. Net interest margin was 3.80%, compared to 3.78% for the linked quarter and 3.68% for the prior-year quarter. The modest linked improvement was primarily driven by favorable loan yields and an improved funding mix. Net interest margin was 3.72% and 3.68% for the first nine months of 2026 and 2025, respectively. Elevated fees in lieu of interest continued to support the year-over-year comparison. • SBA Exit Improves Operating Efficiency. Operating expenses declined $706,000, or 2.6%, from the linked quarter, primarily due to lower SBA-related compensation costs. The Company expects annual operating leverage to remain modest but positive. • Strong Value Creation. Through the first nine months of 2026, operating revenue increased 9.8% while operating expense increased 6.8%, driving a 14.2% increase in pre-tax, pre-provision earnings and 20% EPS growth. Tangible book value per share increased 10.5% annualized from the linked quarter and 13.4% from the prior year.
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2 Quarterly Financial Results (Unaudited) As of and for the Three Months Ended As of and for the Nine Months Ended (Dollars in thousands, except per share amounts) September 30,2026 June 30,2026 September 30,2025 September 30,2026 September 30,2025 Net interest income $39,078 $38,142 $34,886 $112,738 $101,928 Adjusted non-interest income 8,429 8,569 9,406 25,773 24,241 Operating revenue 47,507 46,711 44,292 138,511 126,169 Operating expense 26,186 26,892 25,440 80,159 75,081 Pre-tax, pre-provision adjusted earnings 21,321 19,819 18,852 58,352 51,088 Less: Provision for credit losses 1,943 2,066 1,440 6,969 6,800 Loss on repossessed assets — — 31 — 27 Contribution to First Business Charitable Foundation — — 234 — 234 SBA recourse benefit (381) — (5) (502) (64) Impairment of tax credit investments 300 552 — 845 110 SBA severance expense — 405 — 405 — Add: Bank-owned life insurance claim — — 234 — 234 Income before income tax expense 19,459 16,796 17,386 50,635 44,215 Income tax expense 2,887 1,216 2,993 6,283 7,229 Net income $16,572 $15,580 $14,393 $44,352 $36,986 Preferred stock dividends 218 219 218 656 656 Net income available to common shareholders $16,354 $15,361 $14,175 $43,696 $36,330 Earnings per share, diluted $1.95 $1.84 $1.70 $5.24 $4.37 Book value per share $46.98 $45.81 $41.60 $46.98 $41.60 Tangible book value per share $45.56 $44.38 $40.16 $45.56 $40.16 Net interest margin 3.80% 3.78% 3.68% 3.72% 3.68% Fee income ratio (non-interest income / total revenue) 17.74% 18.34% 21.65% 18.61% 19.36% Efficiency ratio 55.12% 57.57% 57.44% 57.87% 59.51% Return on average assets 1.49% 1.43% 1.40% 1.35% 1.23% Return on average tangible common equity 17.32% 16.89% 17.29% 15.96% 15.23% Period-end loans and leases receivable $3,673,817 $3,585,615 $3,334,956 $3,673,817 $3,334,956 Average loans and leases receivable $3,616,390 $3,550,415 $3,295,880 $3,531,550 $3,240,908 Period-end core deposits $2,978,957 $2,877,675 $2,592,110 $2,978,957 $2,592,110 Average core deposits $2,942,234 $2,860,053 $2,597,031 $2,883,973 $2,453,005 Allowance for credit losses, including unfunded commitment reserves $38,849 $39,517 $38,382 $38,849 $38,382 Non-performing assets $40,240 $38,062 $23,513 $40,240 $23,513 Allowance for credit losses as a percent of total gross loans and leases 1.06% 1.10% 1.15% 1.06% 1.15% Non-performing assets as a percent of total assets 0.91% 0.86% 0.58% 0.91% 0.58% 1. This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate financial performance, provide greater understanding of ongoing operations, and enhance comparability of results with prior periods. See the section titled Non-GAAP Reconciliations at the end of this release for a reconciliation of GAAP financial measures to non-GAAP financial measures.2. Calculation is annualized. (1) (1) (1) (1) (1) (2) (1) (2) (1)(2)
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3 Third Quarter 2026 Compared to Second Quarter 2026 Net interest income increased $936,000, or 2.5%, to $39.1 million. • Net interest income increased as average loans and leases receivable grew by $66.0 million, or 7.4% annualized during the third quarter. This increase was partially offset by a $193,000 decrease in prepayment fees. • The yield on average interest-earning assets increased 2 basis points to 6.47% from 6.45%. • The rate paid for average core deposits was stable at 2.41% compared to 2.40%, and the rate paid on average total bank funding was stable at 2.76% compared to 2.75%. Total bank funding includes total deposits and Federal Home Loan Bank (“FHLB”) advances. • Net interest margin increased to 3.80% from 3.78% in the linked quarter. The linked-quarter increase reflected more favorable loan yields and deposit mix, including growth in non-interest-bearing demand deposits, as well as a modest favorable day- count impact. These benefits more than offset lower prepayment and asset-based loan fees. While net interest margin is expected to remain above the Company’s long-term target range of 3.60% to 3.65% during the fourth quarter, it is expected to moderate from the third-quarter level as fee income normalizes. The Company continues to view 3.60% to 3.65% as an appropriate long-term range. The Bank reported provision for credit losses of $1.9 million compared to $2.1 million in the linked quarter. Compared to the linked quarter, the provision for credit losses was lower primarily due to a smaller increase in quantitative factors and lower loan growth, partially offset by higher net charge-offs. See the Provision for Credit Loss breakdown table below for more detail. Non-interest income decreased $140,000, or 1.6%, to $8.4 million. • Commercial loan swap fee income increased $393,000, or 242.6%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment. • Other non-interest income decreased $494,000 to $1.0 million, primarily due to a decrease in limited partnership investment income. Non-interest expense decreased $1.7 million, or 6.3%, to $26.1 million, while operating expense decreased $706,000, or 2.6%, to $26.2 million. Third-quarter operating expense primarily benefited from lower compensation expense due to our exit from out-of-market SBA 7(a) lending. We expect the operating expense run rate to increase from the third-quarter level, primarily reflecting investments in talent, technology, and marketing initiatives. These investments are intended to expand the Company’s capacity for sustained growth. While quarterly comparisons may vary, the company continues to expect modest positive operating leverage annually.
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4 • Compensation expense was $17.8 million, decreasing by $693,000, or 3.8% from the linked quarter. The decrease was primarily driven by lower salaries and benefits expense and linked quarter severance expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. This decrease was partially offset by higher annual cash bonus accruals reflecting above-target Company performance. Average full-time equivalents ("FTEs") for the third quarter were 352, compared to 366 in the linked quarter. Excluding SBA employees, average FTEs were 351 for the third quarter compared to 354 in the linked quarter. • Other non-interest expense decreased $656,000 to $1.2 million, primarily due to an SBA recourse provision benefit and changes in carrying values on historic tax credit investments. • Professional fees expense decreased $204,000, or 13.7%, to $1.3 million, primarily reflecting annual stock awards issued to directors in the second quarter. • FDIC insurance expense decreased $123,000, or 15.0%, to $696,000, due to improved leverage and brokered deposit ratios. • Marketing expense decreased $105,000, or 12.5%, to $735,000, due to timing of marketing programs and a reduction in sponsorship activity. Income tax expense increased $1.7 million to $2.9 million. The effective tax rate was 14.8% for the three months ended September 30, 2026, compared to 7.2% for the linked quarter. The change in tax expense primarily reflects the release of a state deferred tax valuation allowance in the linked quarter and higher pre-tax income in the current quarter. The Company expects to report a full year 2026 effective tax rate between 13% and 15%. Total gross period-end loans and leases receivable increased $88.6 million, or 9.9% annualized, to $3.677 billion. The average rate earned on average loans and leases receivable was 6.79%, up from 6.76% in the linked quarter. • CRE loans increased $77.2 million, or 14.3% annualized, to $2.239 billion, primarily due to growth in the Wisconsin markets. • C&I loans increased $9.4 million, or 2.7% annualized, to $1.390 billion, primarily due to growth in Floorplan Financing. Total period-end core deposits increased $101.3 million, or 14.1% annualized, to $2.979 billion, reflecting broad-based growth across our markets. The average rate paid was stable at 2.41% compared to 2.40% in the linked quarter. Period-end wholesale funding, including FHLB advances and brokered deposits, decreased $103.1 million, or 10.24%, to $903.3 million. Wholesale funding continues to support interest rate risk management through match-funding of fixed-rate assets, enhancing funding flexibility, and stabilizing net interest margin. • Wholesale deposits increased $56.3 million to $770.8 million. The average rate paid on wholesale deposits increased four basis points to 4.07% and the weighted average original maturity increased to 4.0 years from 3.3 years. • FHLB advances decreased $159.4 million to $132.5 million. The average rate paid on FHLB advances increased two basis points to 3.55% and the weighted average original maturity remained flat at 6.0 years. Nonperforming assets increased $2.2 million to $40.2 million, or 0.91% of total assets, compared with 0.86% in the linked quarter, primarily reflecting a new non-accrual multifamily loan associated with the previously disclosed Wisconsin relationship. This increase was partially offset by the charge-off of fully reserved C&I non-accrual loans. The Wisconsin relationship represented $22.7 million of non-accrual loans, collateralized by commercial real estate, with $416,000 of reserves at September 30, 2026. Year-to-date net charge-offs remained stable at 0.22% of average loans compared with 0.23% in the prior-year period. The allowance for credit losses, including the unfunded credit commitments reserve, decreased $668,000, or 1.7%, primarily due to charge-offs of previously reserved loans and leases and a decrease in qualitative factors partially offset by increases in general reserves primarily due to loan growth and a modest decline in the economic outlook in our model forecast. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.06%, compared to 1.10% in the linked quarter.
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5 Strong internal capital generation continued to support growth, with the common equity Tier 1 ratio increasing to 9.65% and the tangible common equity ratio increasing to 8.59%. The company believes its earnings capacity and capital position support its long-term balance- sheet growth objectives while continuing to build tangible book value per share. Third Quarter 2026 Compared to Third Quarter 2025 Net interest income increased $4.2 million, or 12.0%, to $39.1 million. • Net interest income growth reflects a 9.72% increase in average gross loans and leases, a $450,000 increase in prepayment fees, and a $407,000 increase in asset-based loan fees. • The yield on average interest-earning assets decreased 25 basis points to 6.47% from 6.72%. This decrease in yield was primarily due to the decrease in short-term market rates, partially offset by an increase in prepayment fees and asset-based loan fees. The interest-earning asset beta was 39.2%. • The rate paid for average core deposits decreased 48 basis points to 2.41% from 2.89%. The rate paid for average total bank funding decreased 38 basis points to 2.76% from 3.14%. The core deposit and total bank funding betas compared to the prior year were 76.2% and 60.3%, respectively. • Net interest margin increased 12 basis points to 3.80% from 3.68%. The Company reported provision for credit losses of $1.9 million, compared to $1.4 million in the third quarter of 2025. See the Provision for Credit Loss breakdown table below for more detail. Non-interest income decreased $1.2 million, or 12.6%, to $8.4 million. Excluding gain on sale of SBA loans, non-interest income decreased $830,000, or 9.0%. • Other non-interest income decreased $945,000, or 47.7%, to $1.0 million, primarily driven by higher returns on the Company’s investments in limited partnerships in the prior year quarter and $537,000 of non-recurring fee income in accounts receivable financing in the prior year quarter. • Commercial loan swap fee income decreased $419,000, or 43.0%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment. • Gain on sale of SBA loans decreased $382,000 due to management's decision to hold for investment any existing and new SBA 7(a) loans. • Private wealth fee income increased $488,000, or 13.2%, to $4.2 million. Private wealth assets under management and administration measured $4.227 billion at September 30, 2026, up $413.0 million, or 10.8%. Fee income is primarily based on asset levels and may vary based on seasonal activity and the timing of fluctuations in market values. • Service charges on deposits increased $258,000, or 22.4%, to $1.4 million, primarily driven by new and expanded core deposit relationships. Treasury management gross analyzed service charges increased $276,000, or 15.6%. Non-interest expense increased $405,000, or 1.6%, to $26.1 million. Operating expense increased $746,000 or 2.9%, to $26.2 million.
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6 • Compensation expense increased $327,000, or 1.9%, to $17.8 million. Growth reflects annual merit increases and promotions as well as higher annual cash bonus accruals reflecting above-target Company performance. These increases were partially offset by lower salaries and benefits expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. Average FTEs decreased 3.8% to 352 in the third quarter of 2026, compared to 366 in the third quarter of 2025. Excluding SBA employees, average FTEs were 351 in the current quarter compared to 345 in the third quarter of 2025. • Other non-interest expense decreased $532,000, or 31.6% to $1.2 million, primarily due to a decrease in SBA recourse reserves. • Data processing expense increased $366,000, or 32.6%, to $1.5 million, primarily due to an increase in core processing costs associated with core deposit growth and an increase in credit card transactions. • Professional fees expense increased $218,000, or 20.4%, to $1.3 million, primarily due to an increase in recruiting expense, directors' fees, and miscellaneous legal and regulatory fees. • Computer software expense increased $237,000, or 13.0%, to $2.1 million, primarily due to the Company's commitment to innovative technology to support growth initiatives, enhance productivity, and improve the client experience. Total gross period-end loans and leases receivable increased $340.2 million, or 10.2%, to $3.677 billion. The average yield decreased 31 basis points to 6.79%, primarily due to a decrease in short-term market rates. • CRE loans increased $211.8 million, or 10.4%, to $2.239 billion, primarily due to growth throughout our Wisconsin and Kansas City markets. • C&I loans increased $125.7 million, or 9.9%, to $1.390 billion, primarily due to growth across the Bank's markets and in asset-based lending, floorplan financing, and accounts receivable financing. Total period-end core deposits grew $386.8 million, or 14.9%, to $2.979 billion. The average rate paid decreased 48 basis points to 2.41%, reflecting a decrease in short-term market rates. Period-end wholesale funding decreased $49.5 million, or 5.2%, to $903.3 million. • Wholesale deposits increased $29.9 million, or 4.0%, to $770.8 million. The average rate paid on wholesale deposits decreased four basis points to 4.07% and the weighted average original maturity decreased to 4.0 years from 4.3 years. • FHLB advances decreased $79.3 million, or 37.5%, to $132.5 million. The average rate paid on FHLB advances increased 39 basis points to 3.55% and the weighted average original maturity increased to 6.0 years from 5.3 years. Non-performing assets increased to $40.2 million, or 0.91% of total assets, from $23.5 million, or 0.58% of total assets, primarily reflecting $22.7 million of CRE non-accrual loans from a single southeast Wisconsin client relationship, partially offset by paydowns on SBA non-accrual loans and lower non-accrual balances from Equipment Finance loans and leases. The allowance for credit losses, including unfunded commitment reserves, increased $467,000 to $38.8 million primarily due to higher general reserves as a result of loan growth and quantitative factors, partially offset by lower specific reserves and lower qualitative factors. The allowance for credit losses as a percent of total gross loans and leases was 1.06%, compared to 1.15% in the prior year. Share Repurchase Program Update As previously announced, on April 26, 2024, the Company's Board of Directors authorized the repurchase by the Company of shares of its common stock with a maximum aggregate purchase price of $5.0 million. As of September 30, 2026, the Company had repurchased a total of 12,000 shares for approximately $835,000 at an average cost of $69.55 per share. The Company repurchased another 29,058 shares from October 1 through October 23, 2026. In total, the Company repurchased 41,058 shares for approximately $2.9 million at an average price of $69.70 per share.
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7 Dividend Announced On October 29, 2026, the Company's Board of Directors declared a quarterly cash dividend on its common stock of $0.34 per share, which is equivalent to a dividend yield of 1.87% based on the market close price of $72.75 on Wednesday, October 28, 2026. The quarterly dividend is the same as the quarterly dividend declared in July 2026, and based on third quarter 2026 earnings per share, this represents a dividend payout ratio of 17%. This regular cash dividend is payable on November 30, 2026, to shareholders of record at the close of business on November 12, 2026. The Board of Directors also declared a dividend on the Company’s 7% Series A Preferred Stock of $17.50 per share, payable on December 15, 2026, to shareholders of record on November 30, 2026. Earnings Release Supplement and Conference Call On October 29, 2026, the Company posted an earnings release supplement to its website firstbusiness.bank under the “Investor Relations” tab which will also be furnished to the U.S. Securities and Exchange Commission on October 29, 2026. The information included in the supplement provides an overview of the Company’s recent operating performance, financial condition, and other data relevant to the quarter. The Company intends to use this supplement in connection with its third quarter 2026 earnings call to be held at 8:00 a.m. Central Time on October 30, 2026. The conference call can be accessed at 833-461-5787 (585-542-9983 if outside the United States and Canada), using the conference call access code: FBIZ, 650767981. Investors may also listen live via webcast at: https://events.q4inc.com/attendee/650767981. The webcast archive of the conference call will be available on the Company’s website, ir.firstbusiness.bank. About First Business Bank First Business Bank® specializes in Business Banking, including Commercial Banking and Specialty Finance, Private Wealth, and Bank Consulting services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty Finance solutions are delivered through First Business Bank’s wholly owned subsidiary First Business Specialty Finance, LLC®. First Business Bank is a wholly owned subsidiary of First Business Financial Services, Inc®. (Nasdaq: FBIZ). For additional information, visit firstbusiness.bank. This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect First Business Bank’s current views with respect to future events and financial performance. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results, or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. Such statements are subject to risks and uncertainties, including among other things: • Adverse changes in the economy or business conditions, either nationally or in our markets including, without limitation, inflation, economic downturn, labor shortages, wage pressures, the adverse effects of public health events on the global, national, and local economy, and geopolitical instability and international conflicts that may affect energy prices or otherwise result in market volatility. • Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, prolonged shutdown of the federal government, and other significant policy matters. • Competitive pressures among depository and other financial institutions nationally and in the Company’s markets. • Increases in defaults by borrowers and other delinquencies. • Management’s ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems.
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8 • Fluctuations in interest rates and market prices. • Changes in legislative or regulatory requirements applicable to the Company and its subsidiaries. • Changes in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations. • Fraud, including client and system failure or breaches of our network security, including the Company’s internet banking activities. • Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans. • Ongoing volatility in the banking sector may result in new legislation, regulations or policy changes that could subject the Company and the Bank to increased government regulation and supervision. • The proportion of the Company’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk. • Increases in FDIC insurance assessments. For further information about the factors that could affect the Company’s future results, please see the Company’s annual report on Form 10-K for the year ended December 31, 2025, and other filings with the Securities and Exchange Commission. CONTACT: First Business Financial Services, Inc. Brian D. Spielmann Chief Financial Officer 608-232-5977 bspielmann@firstbusiness.bank
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9 SELECTED FINANCIAL CONDITION DATA (Unaudited) As of (in thousands) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 Assets Cash and cash equivalents $92,277 $163,358 $137,125 $39,485 $44,349 Securities available-for-sale, at fair value 398,807 409,692 420,325 422,087 411,111 Securities held-to-maturity, at amortized cost 4,546 4,674 4,797 5,210 5,584 Loans held for sale — — 23,700 18,849 13,482 Loans and leases receivable 3,673,817 3,585,615 3,498,903 3,373,241 3,334,956 Allowance for credit losses (36,541) (37,393) (36,631) (35,877) (36,690) Loans and leases receivable, net 3,637,276 3,548,222 3,462,272 3,337,364 3,298,266 Premises and equipment, net 4,346 4,328 4,500 4,669 4,936 Right-of-use assets 4,517 4,787 5,053 5,317 5,577 Bank-owned life insurance 86,318 85,533 84,776 83,994 83,255 Federal Home Loan Bank stock, at cost 5,979 13,173 11,242 8,940 9,605 Goodwill and other intangible assets 11,833 11,933 12,011 11,985 12,041 Derivatives 78,574 45,827 38,198 36,515 37,634 Accrued interest receivable and other assets 119,799 118,477 116,856 107,472 109,005 Total assets $4,444,272 $4,410,004 $4,320,855 $4,081,887 $4,034,845 Liabilities and Stockholders’ Equity Core deposits $2,978,957 $2,877,675 $2,796,059 $2,673,003 $2,592,110 Wholesale deposits 770,816 714,490 769,943 707,412 740,961 Total deposits 3,749,773 3,592,165 3,566,002 3,380,415 3,333,071 Federal Home Loan Bank advances and other borrowings 187,393 346,794 303,451 252,051 266,677 Lease liabilities 6,355 6,698 7,032 7,361 7,687 Derivatives 63,513 39,733 35,857 36,926 38,726 Accrued interest payable and other liabilities 32,634 29,307 28,433 33,549 30,365 Total liabilities 4,039,668 4,014,697 3,940,775 3,710,302 3,676,526 Total stockholders’ equity 404,604 395,307 380,080 371,585 358,319 Total liabilities and stockholders’ equity $4,444,272 $4,410,004 $4,320,855 $4,081,887 $4,034,845
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10 STATEMENTS OF INCOME (Unaudited) As of and for the Three Months Ended As of and for the Nine Months Ended (Dollars in thousands, except per share amounts) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Total interest income $66,525 $65,021 $61,896 $62,752 $63,746 $193,442 $184,558 Total interest expense 27,447 26,879 26,378 27,990 28,860 80,704 82,630 Net interest income 39,078 38,142 35,518 34,762 34,886 112,738 101,928 Provision for credit losses 1,943 2,066 2,960 1,855 1,440 6,969 6,800 Net interest income after provision for credit losses 37,135 36,076 32,558 32,907 33,446 105,769 95,128 Private wealth management service fees 4,175 4,257 3,877 3,788 3,687 12,309 10,928 Gain on sale of SBA loans — — 592 140 382 592 1,742 Service charges on deposits 1,409 1,336 1,318 1,188 1,151 4,063 3,303 Loan fees 470 528 436 410 501 1,434 1,313 Bank owned life insurance income 785 757 757 739 965 2,299 2,016 Swap fees 555 162 628 738 974 1,345 1,257 Other non-interest income 1,035 1,529 1,167 458 1,980 3,731 3,916 Total non-interest income 8,429 8,569 8,775 7,461 9,640 25,773 24,475 Compensation 17,769 18,462 18,541 17,151 17,442 54,772 50,723 Occupancy 594 638 588 581 567 1,820 1,721 Professional fees 1,289 1,493 1,446 1,001 1,071 4,228 4,016 Data processing 1,489 1,482 1,270 1,158 1,123 4,241 3,574 Marketing 735 840 711 938 876 2,286 2,906 Equipment 320 351 407 374 296 1,078 1,007 Computer software 2,063 1,958 1,921 1,902 1,826 5,942 5,085 FDIC insurance 696 819 909 800 817 2,424 2,432 Other non-interest expense 1,150 1,806 1,160 225 1,682 4,116 3,924 Total non-interest expense 26,105 27,849 26,953 24,130 25,700 80,907 75,388 Income before income tax expense 19,459 16,796 14,380 16,238 17,386 50,635 44,215 Income tax expense 2,887 1,216 2,180 2,905 2,993 6,283 7,229 Net income $16,572 $15,580 $12,200 $13,333 $14,393 $44,352 $36,986 Preferred stock dividends 218 219 219 219 218 656 656 Net income available to common shareholders $16,354 $15,361 $11,981 $13,114 $14,175 $43,696 $36,330 Per common share: Basic earnings $1.95 $1.84 $1.44 $1.58 $1.70 $5.24 $4.37 Diluted earnings 1.95 1.84 1.44 1.58 1.70 $5.24 $4.37 Dividends declared 0.34 0.34 0.34 0.29 0.29 $1.02 $0.87 Book value 46.98 45.81 44.12 43.19 41.60 $46.98 $41.60 Tangible book value 45.56 44.38 42.68 41.75 40.16 $45.56 $40.16 Weighted-average common shares outstanding 8,245,915 8,208,002 8,186,174 8,173,059 8,171,404 8,209,475 8,153,181 Weighted-average diluted common shares outstanding 8,245,915 8,208,002 8,186,174 8,173,059 8,171,404 8,209,475 8,153,181 (1) Excluding participating securities. (1) (1)
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11 NET INTEREST INCOME ANALYSIS (Unaudited) For the Three Months Ended (Dollars in thousands) September 30, 2026 June 30, 2026 September 30, 2025 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Interest-earning assets Commercial real estate and other mortgage loans $2,192,127 $33,226 6.06% $2,137,098 $31,660 5.93% $1,986,541 $31,819 6.41% Commercial and industrial loans 1,371,801 27,426 8.00 1,364,594 27,594 8.09 1,259,448 26,009 8.26 Consumer and other loans 52,462 726 5.54 48,723 756 6.21 49,891 672 5.39 Total loans and leases receivable 3,616,390 61,378 6.79 3,550,415 60,010 6.76 3,295,880 58,500 7.10 Mortgage-related securities 368,080 3,933 4.27 372,462 3,941 4.23 350,971 3,745 4.27 Other investment securities 47,864 278 2.32 48,679 279 2.29 47,367 266 2.25 FHLB stock 12,171 302 9.93 14,799 338 9.14 9,420 225 9.55 Short-term investments 66,650 634 3.80 46,681 453 3.88 90,852 1,010 4.45 Total interest-earning assets 4,111,155 66,525 6.47 4,033,036 65,021 6.45 3,794,490 63,746 6.72 Goodwill and other intangible assets 11,889 11,972 12,056 Non-interest-earning assets 265,136 250,531 236,970 Total assets $4,388,180 $4,295,539 $4,043,516 Interest-bearing liabilities Transaction accounts $1,289,029 8,707 2.70% $1,279,116 $8,556 2.68% $1,050,822 $8,809 3.35% Money market 974,724 7,043 2.89 931,051 6,488 2.79 851,659 7,183 3.37 Certificates of deposit 221,669 1,960 3.54 235,510 2,109 3.58 278,191 2,751 3.96 Wholesale deposits 634,759 6,458 4.07 590,739 5,952 4.03 754,690 7,595 4.03 Total interest-bearing deposits 3,120,181 24,168 3.10 3,036,416 23,105 3.04 2,935,362 26,338 3.59 FHLB advances 269,888 2,394 3.55 327,915 2,891 3.53 207,762 1,639 3.16 Other borrowings 54,876 885 6.45 54,846 883 6.44 54,761 883 6.45 Total interest-bearing liabilities 3,444,945 27,447 3.19 3,419,177 26,879 3.14 3,197,885 28,860 3.61 Non-interest-bearing demand deposit accounts 456,812 414,376 416,359 Other non-interest-bearing liabilities 84,817 74,188 77,300 Total liabilities 3,986,574 3,907,741 3,691,544 Common stockholders' equity 389,614 375,806 339,980 Preferred stock 11,992 11,992 11,992 Total stockholders’ equity 401,606 387,798 351,972 Total liabilities and stockholders’ equity $4,388,180 $4,295,539 $4,043,516 Net interest income $39,078 $38,142 $34,886 Interest rate spread 3.29% 3.30% 3.11% Net interest-earning assets $666,210 $613,859 $596,605 Net interest margin 3.80% 3.78% 3.68% (1) The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.(2) Includes amortized cost basis of assets available for sale and held to maturity.(3) Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.(4) Represents annualized yields/rates. (4 ) (4 ) (4 ) (1) (1) (1) (1) (2) (3)
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12 BETA ANALYSIS For the Three Months Ended (Unaudited) September 30, 2026 September 30, 2025 Average Yield/Rate Average Yield/Rate Increase (Decrease) Total loans and leases receivable 6.79% 7.10% (0.31)% Total interest-earning assets 6.47% 6.72% (0.25)% Total core deposits 2.41% 2.89% (0.48)% Total bank funding 2.76% 3.14% (0.38)% Net interest margin 3.80% 3.68% 0.12% Effective fed funds rate 3.67% 4.30% (0.63)% Beta Calculations: Total loans and leases receivable 49.3% Total interest-earning assets 39.2% Total core deposits 76.2% Total bank funding 60.3% 1. Excludes prepayment activity in all periods of comparison.2. Board of Governors of the Federal Reserve System (US), Effective Federal Funds Rate [DFF]. Retrieved from FRED, Federal Reserve Bank of St. Louis. Represents average daily rate.3. Represents annualized yields/rates. PROVISION FOR CREDIT LOSS COMPOSITION (Unaudited) For the Three Months Ended For the Nine Months Ended (Dollars in thousands) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Change due to qualitative factors $(198) $(357) $(706) $(538) $(243) $(1,261) $(8) Change due to quantitative factors 36 541 10 (607) (173) 587 2,133 Charge-offs 2,921 1,524 2,331 2,809 1,708 6,776 6,856 Recoveries (310) (486) (168) (264) (440) (964) (1,170) Change in reserves on individually evaluated loans, net (1,224) (37) 382 (76) (550) (879) (3,292) Change due to loan growth, net 535 615 1,068 408 795 2,218 2,072 Change in unfunded commitments reserve 183 266 43 123 343 492 209 Total provision for credit losses $1,943 $2,066 $2,960 $1,855 $1,440 $6,969 $6,800 ALLOWANCE FOR CREDIT LOSS COMPOSITION As of September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 (In Thousands) % of Total Loans and Leases (In Thousands) % of Total Loans and Leases (In Thousands) % of Total Loans and Leases (In Thousands) % of Total Loans and Leases Allowance for credit losses: Loans collectively evaluated $31,871 0.87% $31,499 0.88% $30,700 0.88% $30,327 0.90% Loans individually evaluated 4,670 0.13% 5,894 0.16% 5,931 0.17% 5,550 0.16% Unfunded commitments reserve 2,308 2,124 1,858 1,815 Total 38,849 1.06% 39,517 1.10% 38,489 1.10% 37,692 1.12% Loans and lease receivables: $3,673,817 $3,585,615 $3,498,903 $3,373,241 (3) (3) (a) (b) (e) (f) (g) (2)(i) (a)/(i) (b)/(i) (e/i) (f)/(i)
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13 PERFORMANCE RATIOS For the Three Months Ended For the Nine Months Ended (Unaudited) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Return on average assets (annualized) 1.49% 1.43% 1.13% 1.25% 1.40% 1.35% 1.23% Return on average tangible common equity (annualized) 17.32% 16.89% 13.55% 15.35% 17.29% 15.96% 15.23% Efficiency ratio 55.12% 57.57% 61.14% 56.61% 57.44% 57.87% 59.51% Interest rate spread 3.29% 3.30% 3.06% 2.99% 3.11% 3.22% 3.11% Net interest margin 3.80% 3.78% 3.56% 3.53% 3.68% 3.72% 3.68% Average interest-earning assets to average interest-bearing liabilities 119.34% 117.95% 118.85% 119.25% 118.66% 118.72% 119.17% ASSET QUALITY RATIOS (Unaudited) As of (Dollars in thousands) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 Non-accrual loans and leases $40,240 $38,062 $40,503 $43,855 $23,513 Repossessed assets — — — — — Total non-performing assets $40,240 $38,062 $40,503 $43,855 $23,513 Non-accrual loans and leases as a percent of total gross loans and leases 1.09% 1.06% 1.16% 1.30% 0.70% Non-performing assets as a percent of total gross loans and leases plus repossessed assets 1.09% 1.06% 1.16% 1.30% 0.70% Non-performing assets as a percent of total assets 0.91% 0.86% 0.94% 1.07% 0.58% Allowance for credit losses as a percent of total gross loans and leases 1.06% 1.10% 1.10% 1.12% 1.15% Allowance for credit losses as a percent of non-accrual loans and leases 96.54% 103.82% 95.03% 85.95% 163.24% NET CHARGE-OFFS (RECOVERIES) (Unaudited) For the Three Months Ended For the Nine Months Ended (Dollars in thousands) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Charge-offs $2,921 $1,524 $2,331 $2,809 $1,708 $6,776 $6,856 Recoveries (310) (486) (168) (264) (440) (964) (1,170) Net charge-offs (recoveries) $2,611 $1,038 $2,163 $2,545 $1,268 $5,812 $5,686 Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized) 0.29% 0.12% 0.25% 0.30% 0.15% 0.22% 0.23% CAPITAL RATIOS As of and for the Three Months Ended (Unaudited) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 Total capital to risk-weighted assets 12.25% 12.21% 12.15% 12.24% 12.18% Tier I capital to risk-weighted assets 9.95% 9.84% 9.74% 9.79% 9.67% Common equity tier I capital to risk- weighted assets 9.65% 9.54% 9.43% 9.48% 9.34% Tier I capital to adjusted assets 9.22% 9.11% 8.93% 8.86% 8.87% Tangible common equity to tangible assets 8.59% 8.44% 8.26% 8.54% 8.31%
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14 LOAN AND LEASE RECEIVABLE COMPOSITION (Unaudited) As of (in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Commercial real estate: Commercial real estate - owner occupied $347,783 $345,984 $306,593 $293,706 $287,005Commercial real estate - non-owner occupied 955,378 874,669 925,425 885,870 871,807Construction and land development 184,718 227,782 224,866 248,560 236,590Multi-family 690,323 654,405 577,271 571,468 565,1021-4 family 60,868 58,981 61,332 60,661 66,735 Total commercial real estate 2,239,070 2,161,821 2,095,487 2,060,265 2,027,239Commercial and industrial 1,389,826 1,380,476 1,358,413 1,273,997 1,264,111Consumer and other 48,021 46,027 47,223 40,965 45,323 Total gross loans and leases receivable 3,676,917 3,588,324 3,501,123 3,375,227 3,336,673 Less: Allowance for credit losses 36,541 37,393 36,631 35,877 36,690Deferred loan fees 3,100 2,709 2,220 1,986 1,717 Loans and leases receivable, net $3,637,276 $3,548,222 $3,462,272 $3,337,364 $3,298,266 DEPOSIT COMPOSITION (Unaudited) As of (in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Non-interest-bearing transaction accounts $477,865 $420,556 $405,281 $378,770 $400,697Interest-bearing transaction accounts 1,288,239 1,297,353 1,170,271 1,103,696 1,050,233Money market accounts 1,003,735 936,914 960,052 905,773 840,477Certificates of deposit 209,118 222,852 260,455 284,764 300,703Wholesale deposits 770,816 714,490 769,943 707,412 740,961 Total deposits $3,749,773 $3,592,165 $3,566,002 $3,380,415 $3,333,071 Uninsured deposits $1,381,507 $1,192,776 $1,237,344 $1,220,177 $1,100,868Less: uninsured deposits collateralized by pledged assets 22,492 42,130 59,613 68,656 72,561 Total uninsured, net of collateralized deposits $1,359,015 $1,150,646 $1,177,731 $1,151,521 $1,028,307 % of total deposits 36.2% 32.0% 33.0% 34.1% 30.9% SOURCES OF LIQUIDITY (Unaudited) As of (in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Short-term investments $59,417 $131,294 $104,565 $8,714 $8,074 Collateral value of unencumbered pledged loans 1,225,386 987,993 968,320 992,398 906,042 Market value of unencumbered securities 369,369 378,423 387,700 388,474 376,783 Readily accessible liquidity 1,654,172 1,497,710 1,460,585 1,389,586 1,290,899 Fed fund lines 45,000 45,000 45,000 45,000 45,000 Excess brokered CD capacity(1) 846,907 878,888 806,268 775,851 732,951 Total liquidity $2,546,079 $2,421,598 $2,311,853 $2,210,437 $2,068,850Total uninsured, net of collateralized deposits $1,359,015 $1,150,646 $1,177,731 $1,151,521 $1,028,307 1. Bank internal policy limits brokered CDs to 50% of total bank funding when combined with value of unencumbered pledged loans.
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15 EARNINGS PER SHARE For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 (Dollars in Thousands, Except Share Data) Basic earnings per common share Net Income $ 16,572 $ 15,580 $ 12,200 $ 13,333 $ 14,393 $ 44,352 $ 36,986 Less: preferred stock dividends 218 219 219 219 218 656 656 Less: earnings allocated to participating securities 239 233 220 235 259 702 719 Basic earnings allocated to common shareholders $ 16,115 $ 15,128 $ 11,761 $ 12,879 $ 13,916 $ 42,994 $ 35,611 Weighted-average common shares outstanding, excluding participating securities 8,245,915 8,208,002 8,186,174 8,173,059 8,171,404 8,209,475 8,153,181 Basic earnings per common share $ 1.95 $ 1.84 $ 1.44 $ 1.58 $ 1.70 $ 5.24 $ 4.37 Diluted earnings per common share Earnings allocated to common shareholders, diluted $ 16,115 $ 15,128 $ 11,761 $ 12,879 $ 13,916 $ 42,994 $ 35,611 Weighted-average diluted shares outstanding, excluding participating securities 8,245,915 8,208,002 8,186,174 8,173,059 8,171,404 8,209,475 8,153,181 Diluted earnings per common share $ 1.95 $ 1.84 $ 1.44 $ 1.58 $ 1.70 $ 5.24 $ 4.37 PRIVATE WEALTH OFF-BALANCE SHEET COMPOSITION (Unaudited) As of (in thousands) September 30,2026 June 30,2026 March 31,2026 December 31,2025 September 30,2025 Trust assets under management $3,946,813 $3,947,362 $3,613,536 $3,541,768 $3,543,594Trust assets under administration 279,961 287,226 267,214 272,910 270,222 Total trust assets $4,226,774 $4,234,588 $3,880,750 $3,814,678 $3,813,816 NON-GAAP RECONCILIATIONS Certain financial information provided in this release is determined by methods other than in accordance with generally accepted accounting principles (United States) (“GAAP”). Although the Company’s management believes that these non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies. TANGIBLE BOOK VALUE “Tangible book value per share” is a non-GAAP measure representing tangible common equity divided by total common shares outstanding. “Tangible common equity” itself is a non-GAAP measure representing common stockholders’ equity reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in period-to-period changes in book value per common share exclusive of changes in intangible assets. The information provided below reconciles tangible book value per share and tangible common equity to their most comparable GAAP measures. (Unaudited) As of (Dollars in thousands, except per share amounts) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Common stockholders’ equity $392,612 $383,315 $368,088 $359,593 $346,327 Less: Goodwill and other intangible assets (11,833) (11,933) (12,011) (11,985) (12,041) Tangible common equity $380,779 $371,382 $356,077 $347,608 $334,286 Common shares outstanding 8,357,781 8,368,320 8,343,519 8,325,376 8,324,387 Book value per share $46.98 $45.81 $44.12 $43.19 $41.60 Tangible book value per share $45.56 $44.38 $42.68 $41.75 $40.16
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16 TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS “Tangible common equity to tangible assets” (“TCE”) is defined as the ratio of common stockholders’ equity reduced by intangible assets, if any, divided by total assets reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, each exclusive of changes in intangible assets. The information below reconciles tangible common equity and tangible assets to their most comparable GAAP measures. (Unaudited) As of (Dollars in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Common stockholders’ equity $392,612 $383,315 $368,088 $359,593 $346,327 Less: Goodwill and other intangible assets (11,833) (11,933) (12,011) (11,985) (12,041) Tangible common equity (a) $380,779 $371,382 $356,077 $347,608 $334,286 Total assets $4,444,272 $4,410,004 $4,320,855 $4,081,887 $4,034,845 Less: Goodwill and other intangible assets (11,833) (11,933) (12,011) (11,985) (12,041) Tangible assets (b) $4,432,439 $4,398,071 $4,308,844 $4,069,902 $4,022,804 Tangible common equity to tangible assets 8.59% 8.44% 8.26% 8.54% 8.31% RETURN ON AVERAGE TANGIBLE COMMON EQUITY “Return on Average Tangible Common Equity” (“ROATCE”) is defined as the ratio of net income available to common shareholders divided by average tangible common equity. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the return generated for common shareholders on the tangible capital invested. The information below reconciles average tangible common equity to its most comparable GAAP measure. (Unaudited) For the Three Months Ended For the Nine Months Ended (Dollars in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 Net Income available to common shareholders (a) $16,354 $15,361 $11,981 $13,114 $14,175 $43,696 $36,330 Average common stockholders' equity 389,614 375,806 365,659 353,820 339,980 377,029 330,188 Less: average goodwill and other intangible assets 11,889 11,972 11,987 12,023 12,056 11,949 12,032 Average tangible common equity (b) $377,725 $363,834 $353,672 $341,797 $327,924 $365,080 $318,156 Return on average tangible common equity (a)/(b) 17.32% 16.89% 13.55% 15.35% 17.29% 15.96% 15.23%
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17 EFFICIENCY RATIO & PRE-TAX, PRE-PROVISION ADJUSTED EARNINGS “Efficiency ratio” is a non-GAAP measure representing non-interest expense excluding the effects of the SBA recourse provision, impairment of tax credit investments, losses or gains on repossessed assets, amortization of other intangible assets and other discrete items, if any, divided by operating revenue, which is equal to net interest income plus non-interest income less realized gains or losses on securities, if any. “Pre-tax, pre-provision adjusted earnings” is defined as operating revenue less operating expense. In the judgment of the Company’s management, the adjustments made to non-interest expense and non-interest income allow investors and analysts to better assess the Company’s operating expenses in relation to its core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items. The information provided below reconciles the efficiency ratio and pre-tax, pre-provision adjusted earnings to its most comparable GAAP measure. (Unaudited) For the Three Months Ended For the Nine Months Ended (Dollars in thousands) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 September 30, 2026 September 30, 2025 Total non-interest expense $26,105 $27,849 $26,953 $24,130 $25,700 $80,907 $75,388 Less: Net loss (gain) on repossessed assets — — — — 31 — 27 Impairment (recovery) of tax credit investments 300 552 (7) 229 — 845 110 SBA severance expense — 405 — — — 405 — Contribution to First Business Charitable Foundation — — — — 234 — 234 SBA recourse benefit (381) — (121) — (5) (502) (64) Total operating expense (a) $26,186 $26,892 $27,081 $23,901 $25,440 $80,159 $75,081 Net interest income $39,078 $38,142 $35,518 $34,762 $34,886 $112,738 $101,928 Total non-interest income 8,429 8,569 8,775 7,461 9,640 25,773 24,475 Less: Bank owned life insurance claim — — — — 234 — 234 Adjusted non-interest income 8,429 8,569 8,775 7,461 9,406 25,773 24,241 Total operating revenue (b) $47,507 $46,711 $44,293 $42,223 $44,292 $138,511 $126,169 Efficiency ratio 55.12% 57.57% 61.14% 56.61% 57.44% 57.87% 59.51% Pre-tax, pre-provision adjusted earnings (b - a) $21,321 $19,819 $17,212 $18,322 $18,852 $58,352 $51,088