First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q2 2026 Earnings Presentation
44 slides from First Business Financial Services's earnings presentation, 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Slide Title Presentation Date Second Quarter 2026 NASDAQ: FBIZ 1
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: Table of Contents
Page Q2 2026 Results 4 Company Snapshot 7 Strategic Plan Table of Contents 8 Why FBIZ? 13 Drivers of Growth & Profitability 24 Appendix 30
Slide 4: Highlights Q2 2026
Highlights Q2 2026 PTPP Earnings1 Core Deposits Loans +15% +12% +10% PTPP earnings grew 15.1% from the linked Core deposits grew 11.7% from the linked quarter and Loans grew 10.0% from the linked quarter and 10.3% quarter and 23.7% year-over-year. 13.6% year-over-year. Core deposit funding mix impro
Slide 5: Quarterly Update: 15% growth in TBVPS driven by record PTPP earnings
Quarterly Update 15% growth in TBVPS driven by record PTPP earnings Q2 2026 TARGET = 10% Annual Growth and positive operating leverage 1H'26 vs. $ in millions, except per share Q2'26 LQ* YoY 1H'26 1H'25 • Earnings per share included $0.14 net EPS EARNINGS Operating revenue $ 46.7 5% 14% $ 91.0 11% b
Slide 6: Exit from Out-of-Footprint SBA 7(a) Lending Completed in May 2026
Exit from Out-of-Footprint SBA 7(a) Lending Completed in May 2026 REDIRECTING RESOURCES TO MORE PROFITABLE GROWTH OPPORTUNITIES WHY? Expected 2027 Quarterly EPS Benefit • Economic returns did not meet internal targets; investments in SBA talent and capacity did not consistently produce adequate volu
Slide 7: Company Snapshot
MISSION First Business Bank’s unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver NASDAQ: FBIZ exceptional results for all stakeholders. $573 Million HEADQUARTERS MARKET CAP 1 Madison, WI FBIZ BUSINESS BANKING 2 We serve business
Slide 8: Five Year Strategic Plan
FIVE YEAR Strategic Plan 8
Slide 9: Five Year Strategic Plan 2024-2028
2024-2028 Five Year Strategic Plan FUTURE-READY TALENT OPERATIONAL EXCELLENCE Thrive in the workplace of Improve efficiency and the future enhance client experience 01 03 05 02 04 CULTURE DEPOSITS PROFITABILITY Protect and strengthen our Grow our core deposits Achieve sustainable culture profitabili
Slide 10: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2025 YTD June 2026 ROATCE1 ≥15% by 2028 15.3% 15.2% TBV Growth1 ≥10% per year 13.7% 15.2% Revenue Growth ≥10% per year 9.7% 11.1% Efficiency Ratio1 <60% by 2028 58.78% 59.
Slide 11: Total Shareholder Return Above Peer Group Median
Total Shareholder Return Above Peer Group Median DESPITE OUTPERFORMANCE, PRICE/LTM EPS REMAINS BELOW PEERS Total Shareholder Return1 Price / LTM EPS2 250% 11.0 10.5 200% 10.0 9.5 150% 9.0 8.5 100% 8.0 50% 7.5 7.0 0% 6.5 1-Year TSR 3-Year TSR 5-Year TSR 6.0 P/LTM EPS FBIZ Peer Group Median KBW Region
Slide 12: Total Shareholder Return Since IPO
% Source: S&P Capital IQ 100 (100) 0 300 200 600 500 400 700 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 FBIZ initiated trading on October 7, 2005. Jun-07 Oct-07 Feb-08 FBIZ Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 KBW Regional Bank Index Feb-12 Jun-12 Oct-12 Feb-13 Jun-13
Slide 13: Why FBIZ?
Why FBIZ? 13
Slide 14: Our Historic & Ongoing Growth Supports Earnings Power
GROWING PROFITABILITY Our Historic & Ongoing Growth Supports Earnings Power 10% 10% 12% 5-year 5-year 5-year Loan Core Deposit TBV/Share CAGR CAGR CAGR 2020-2025 2020-2025 2020-2025 Differentiated Loan Strong & Stable Growing Growth Capabilities Deposit Franchise Profitability Profile • History of c
Slide 15: Track Record of Superior Growth
Track Record of Superior Growth HISTORY OF DOUBLE-DIGIT LONG-TERM EPS GROWTH, OUTPERFORMING PEERS • 2025 EPS grew 14% over 2024, exceeding our long-term, annual goal of 10% earnings growth, even after following a FBIZ vs Peers robust year of 20% EPS growth in Earnings Per Share CAGR 2024 Through 202
Slide 16: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES $50 TBV 5YR CAGR = 12% $45 Div/Share 5YR CAGR = 11% $40 $35 $30 $25 $20 $15 $10 $5 $0 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 25 Q2 26 TBV/
Slide 17: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +10% TTM Q2 26 vs TTM Q2 25 Highlights $180 • Continued strong revenue supported by: • Robust loan and deposit growth $160 • Strong and stable net interest margin $140 • Diverse sources of non‐interest income
Slide 18: Margin Strength Through Rate Cycles
Margin Strength Through Rate Cycles MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES 3.90% Net Interest Margin 3.70% 3.50% 3.30% 3.10% 2.90% 2.70% 2.50% 2018 2019 2020 2021 2022 2023 2024 2025 YTD June 26 FBIZ Net Interest Margin Peer Median Net Interest Margin Linear (FBIZ Net
Slide 19: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management • Typically 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 20: Match Funded Balance Sheet Unique Among Peers
Match Funded Balance Sheet Unique Among Peers Loan & Deposit Betas in Current Rate Cycle 3Q24–2Q26 60 49.4 50 40 34.5 33.8 30 % 20 10 1.9 0 FBIZ Peer Median Loan Beta Deposit Beta Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion. 20
Slide 21: Consistent, Positive Operating Leverage
Consistent, Positive Operating Leverage HISTORY OF GROWING REVENUES FASTER THAN EXPENSES Operating Leverage • We aim to achieve 10% revenue growth on an annual basis, with 12% positive operating leverage1 5-Year Average2 10% FBIZ = 2.76% • Strategic initiatives directed toward revenue growth and ope
Slide 22: Strong Business Banking Revenue Profile
Strong Business Banking Revenue Profile EFFICIENT REVENUE GROWTH AND DIVERSIFICATION DIFFERENTIATES FROM PEERS • Fee income comprised 19% of operating revenue for 2025, outperforming peers • As a business-only bank, we’ve achieved this outperformance without the revenue stream of a Noninterest Incom
Slide 23: Growth And Profitability Exceeds Peers
Growth And Profitability Exceeds Peers TLR GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVES STRONG PROFITABILITY Top Line Revenue Growth Return on Average Tangible Common Equity 20% 5-Year Average1 12% FBIZ = 15.7% 10.1% 18% Peer = 12.9% 9.8% 10% 16% 7.5% 14% 8% 12% 6% 10% 4.9% 8% 4% 6% 4% 2% 2% 0% 0%
Slide 24: Drivers of Growth & Profitability
Drivers of Growth & Profitability 24
Slide 25: Relationship Banking Key to Success
Relationship Banking Key to Success CORE DEPOSIT GROWTH SUPPORTS LOAN GROWTH • Deposit‐centric sales strategy Core Deposit Growth Loan Growth led by treasury management sales teams located in all bank $3.5 +12% LQA $4.0 +10% LQA markets with direct production +14% YOY +10% YOY and outside calling go
Slide 26: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,600 9% 2023-2025 3-Year $1,400 Loan CAGR 8% C&I = 18% $1,200 CRE & Other = 10% Avg Loans (millions) 7% $1,000 6% Yield $800 5% $600 4% $400 $200 3% $- 2% 2021 2022 2023 2024 2025 YTD
Slide 27: Strong and Resilient Net Interest Margin
Strong and Resilient Net Interest Margin MATCH FUNDING STRATEGY SUPPORTS LONG-TERM NIM STABILITY Net Interest Margin Waterfall Net Interest Margin 3.78% 3.80% 3.95% 3.70% 3.67% 3.68% 3.70% 3.85% 0.02% 3.62% 0.10% 0.00% 3.78% 3.60% 3.56% -0.04% 3.52% 3.53% 3.75% 3.52% 3.52% 0.15% 3.50% 3.65% 3.40% 3.
Slide 28: Decline in Non-Performing Assets
Decline in Non-Performing Assets PROGRESS ON NPAs WITH STRONG COLLATERAL POSITION NPAs / Total Assets Reserves and NPL Coverage • NPAs declined in 2Q26, driven by 1.00% 1.50% 1.04X 1.1X the repayment of a non- 0.95X accrual SBA loan and lower Allowance for Credit Losses as a % of Loans 0.94% 1.0X 0.
Slide 29: Superior Credit Experience Across Cycles
Superior Credit Experience Across Cycles HISTORICAL LOSS EXPERIENCE IS FAVORABLE TO INDUSTRY Net Charge-Offs as a % of Average Loans Favorable loss experience reflects: 3.00 • Deep client relationships, 2.50 FBIZ’s average loss rate since strong underwriting, and 2005 is approximately one-third nich
Slide 30: Appendix
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS 30
Slide 31: Offerings Designed Exclusively For Business And Wealth Management
SERVICES THAT MEET THE EVOLVING NEEDS OF OUR GROWING CLIENT BASE Offerings Designed Exclusively For Business And Wealth Management 31
Slide 32: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION 32
Slide 33: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 6/30/2026 6/30/2025 Category 6/30/2026 6/30/2025 Short-term investments $131,294 $72,520 Uninsured deposits $1,192,776 $1,069,509 Collateral value of unencumbered pledged loans 987,993 893,499 Collaterali
Slide 34: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios $45 $44.38 13% 12.25% 12.21% +16% LQA 12% $44 +15% YOY $43 $42.68 11% $41.75 10% 9.66% 9.84% $42 9.33% 9.54% 9.11% 8.82% 9% $41 $40.16 8% $40 7% $39 $38.54 6% $38 5% $37 4% $36 3% $35
Slide 35: Capital Strength
Capital Strength • Regulatory capital ratios 6/30/25 9/30/25 12/31/25 03/31/26 06/30/26 remain solid including a Total Regulatory Capital $440,159 $452,731 $463,447 $473,237 $486,735 Total Capital Ratio of 12.21% and a Common Equity Tier 1 Total Risk-Weighted Assets $3,592,554 $3,717,741 $3,786,460
Slide 36: Diversified Lending Products
Diversified Lending Products DOUBLE- DIGIT LOAN GROWTH DRIVEN BY S TELLAR P ERFORMANCE ACROS S ALL AREAS OF THE BANK Total Loan Breakdown Commercial Real Estate Breakdown C&I Breakdown by Product 1% 3% 12% 16% 30% 14% 39% 47% 4% 60% 40% 23% 11% All other C&I lending Equipment Finance CRE C&I Other C
Slide 37: Commercial Real Estate Lending Product Profile
Commercial Real Estate Lending SUPERIOR TALENT WITH BUSINESS EXPERTISE BUILDING RELATIONSHIPS IN MIDWEST GEOGRAPHIC FOOTPRINT Product Profile • We originate loans secured by commercial real estate, including owner-occupied properties, non- Portfolio Analysis Gross Revenue owner-occupied facilities,
Slide 38: C&I Lending Product Profile
C&I Lending DIVERSIFIED COMMERCIAL PRODUCT OFFERINGS TARGET COMPANIES NATIONWIDE Q2 increase due to elevated Product Profile prepayment fees • Target small and Gross Revenue medium companies in a Portfolio Analysis $29 variety of industries $1,500 10.00% $28 • Financings typically $1,250 $28 range f
Slide 39: Equipment Finance Portfolio Analysis
Equipment Finance Portfolio Analysis STRONG AND DIVERSIFIED PORTFOLIO; TRANSPORTATION SUB-CATEGORY SHOWING SECTOR-SPECIFIC WEAKNESS • Equipment Finance (EF) loans Portfolio by Industry Maturing Over Time diversified across industries Truck Transportation 4% $100 MM ◦ EF comprised 23% of Construction
Slide 40: Treasury Management Product Profile
Treasury Management SUPERIOR TALENT WITH BUSINESS EXPERTISE BUILDING RELATIONSHIPS IN MIDWEST Product Profile GEOGRAPHIC FOOTPRINT • Target small to medium- sized companies in our Wisconsin, Kansas, and Missouri markets Funding Mix Fee Revenue and Analyzed Charges • Comprehensive services $4,800 4.0
Slide 41: Private Wealth Management Product Profile
Private Wealth Management Product Profile WEALTH MANAGEMENT SERVICES FOR BUSINESSES, EXECUTIVES, AND HIGH NET • Investment manager for WORTH INDIVIDUALS individual and corporate clients, creating and executing asset allocation strategies tailored to each client’s unique situation Assets Under Manage
Slide 42: Non-GAAP Reconciliation: Net Operating Income
Non-GAAP Reconciliation Net Operating Income "Net Operating Income" is a non-GAAP financial measure. We believe net operating income allows investors to better assess the Company’s operating expenses in relation to its top line revenue by removing the volatility that is associated with certain one-t
Slide 43: Non-GAAP Reconciliation: Cost Of Funds
Non-GAAP Reconciliation Cost Of Funds ‘‘Cost of Funds’’ is defined as total interest expense on deposits and FHLB advances, divided by the sum of total average deposits and average FHLB advances. We believe that this measure is important to many investors in the marketplace who are interested in the
Slide 44: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026 NASDAQ: FBIZ 44
First Business Financial Services — Q2 2026 Earnings Presentation on 6ix