First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q2 2025 Earnings Presentation
12 slides from First Business Financial Services's earnings presentation, Jul 25, 2025
Slide 1: Earnings Release Supplement Second Quarter 2025
Earnings Release Supplement Second Quarter 2025 NASDAQ: FBIZ
Slide 2: Forward-Looking Statements
Forward-Looking Statements When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “could,” “should,” “hope,” “might,” “believe,” “expect,” “plan,” “assume,” “intend,” “estimate,” “anticipate,” “project,”
Slide 3: Highlights Q2 2025
Highlights Q2 2025 Core Deposits Loans NIM +11% +8% 3.67% Core deposits grew 11.4% annualized from the Consistent loan growth across the Company. Match-funding strategy and pricing discipline linked quarter and 9.7% from Q2 2024. Loans grew 8.4% annualized from the linked produced a strong net inter
Slide 4: Relationship Banking Key to Success
Relationship Banking Key to Success CORE DEPOSIT GROWTH SUPPORTS LOAN GROWTH • Deposit‐centric sales strategy led by treasury management sales teams located in all bank Core Deposit Growth Loan Growth markets with direct production and outside calling goals $3.0 +11% LQA $3.5 +8% LQA • Bankers train
Slide 5: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I LENDING MIX Growth in Higher-Yielding C&I Lending 40% 9% 38% 8% 7% 36% Loan Mix % 6% Yield 34% 5% 32% 4% 30% 3% 28% 2% 2020 2021 2022 2023 2024 June 25 YTD C&I Loan Mix C&I Lending Yield CRE and Other Yield 5
Slide 6: Strong and Stable Net Interest Margin
Strong and Stable Net Interest Margin MATCH FUNDING STRATEGY SUPPORTS RESILIENT NIM NIM Components Net Interest Margin 3.85% 4.0% 3.80% 3.77% 3.65% 3.69% 3.67% 3.64% 3.75% 0.05% 0.03% 0.14% 0.29% 0.23% 0.20% 3.5% 0.19% 3.70% 3.69% 0.00% -0.01% 0.00% 3.67% -0.04% -0.05% 3.65% 3.36% 3.26% 3.60% 3.19%
Slide 7: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management • Generally individually match‐fund loans with maturities over 5 years and amounts greater than $5MM. METHODICAL • Portfolio match‐funding in various terms against the fixed‐rate loan APPROACH portfolio with maturities under 5 years and amounts less than $5M
Slide 8: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +8% YOY Highlights $45 • Continued strong revenue supported by: $40 • Robust loan and deposit growth $35 • Strong and stable net interest margin • Diverse sources of non‐interest income, $30 including service
Slide 9: Solid Asset Quality
Solid Asset Quality NON-PERFORMING ASSETS REMAIN WELL MANAGED Reserves and NPL Coverage Credit Quality Indicators NPAs / Total Assets As of 6/30/25, 93% of the loan portfolio was 1.6% 1.60X classified in category I(1) and 98% of loans were 0.80% current Allowance for Credit Losses as a % of Loans 0.
Slide 10: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity As of 6/30/25 $3,305,222 Source 6/30/2025 6/30/2024 Uninsured Deposits Short-term investments $72,520 $54,680 $1,069,509 Collateral value of unencumbered 70% of pledged loans 893,499 401,602 $67,990 deposits are
Slide 11: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios (%) $39 $38.54 12.25% +10% LQ 10.50% $38 +14% YOY $37.58 9.66% 9.33% $36.74 8.82% $37 8.50% 7.00% $36 $35 $34.74 4.00% $33.92 $34 $33 $32 Tier 1 Common Tier 1 Capital Total Capital $3
Slide 12: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2024 June 25 YTD ROATCE1 ≥15% by 2028 15.4% 14.2% TBV Growth1 ≥10% per year 15.0% 13.6% Revenue Growth ≥10% per year 6.6% 10.3% Efficiency Ratio <60% by 2028 60.61% 60.63%
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