FBIZ Stock Forecast & Price Target

First Business Finl Servs is well-positioned for growth, as evidenced by its strong core deposit gathering and solid loan-to-deposit ratio. While the company has a concentrated geographic base, their focus on gaining new full relationships and expanding existing ones, as well as a strong TM platform, should mitigate any potential weakness in the economy of their operating regions. Furthermore, the company has a strong capital position, supporting their target of above average balance sheet growth. Despite some recent setbacks, the company's fundamentals remain strong and we maintain a BUY recommendation for long-term investors.

First Business Finl Servs is facing challenges in its loan growth, with a weaker pipeline and identified payoffs leading to a lighter growth expectation in the second quarter. While progress has been made in credit performance, the company still has a large credit relationship in its CRE portfolio that is moving slowly through the court system, and further credit issues were seen in its equipment finance portfolio. Expenses also increased, negatively impacting the company's operating leverage and overall outlook.