First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q3 2025 Earnings Presentation
44 slides from First Business Financial Services's earnings presentation, Oct 31, 2025
Slide 1: Investor Presentation Third Quarter 2025
Investor Slide Title Presentation Date Third Quarter 2025 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 Q3 2025 Results 4 Company Snapshot 5 Strategic Plan Table of Contents 6 Why FBIZ? 11 Drivers of Growth & Profitability 22 Appendix 27
Slide 4: Highlights Q3 2025
Highlights Q3 2025 Loans Core Deposits NIM +10% +9% 3.68% Core deposits grew 9.3% annualized from the Match-funding strategy and pricing discipline Consistent loan growth across the Company. produced a strong and stable net interest margin Loans grew 10.4% annualized from the linked linked quarter a
Slide 5: Company Snapshot
MISSION Build long‐term shareholder value as an entrepreneurial banking partner that drives success for businesses, investors, NASDAQ: FBIZ and our communities. $406 Million HEADQUARTERS Madison, WI MARKET CAP 1 FBIZ BUSINESS BANKING 2 We serve business executives, entrepreneurs, and high net $4.0 B
Slide 6: Five Year Strategic Plan
FIVE YEAR Strategic Plan 6
Slide 7: Five Year Strategic Plan 2024-2028
2024-2028 Five Year Strategic Plan FUTURE-READY TALENT EFFICIENCY Thrive in the workplace of Achieve operational the future excellence 01 03 05 02 04 CULTURE DEPOSITS PROFITABILITY Protect and strengthen our Grow our core deposits Achieve sustainable culture profitability and growth First Business B
Slide 8: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2024 Sept 25 YTD ROATCE1 ≥15% by 2028 15.4% 17.3% TBV Growth1 ≥10% per year 15.0% 15.6% Revenue Growth ≥10% per year 6.6% 12.3% Efficiency Ratio1 <60% by 2028 60.61% 59.51
Slide 9: Total Shareholder Return Above Peer Group Median
Total Shareholder Return Above Peer Group Median DESPITE RECENT OUTPERFORMANCE, PRICE/LTM EPS REMAINS BELOW PEERS Total Shareholder Return1 Price / LTM EPS2 350% 13.0 300% 12.0 250% 11.0 200% 10.0 150% 9.0 100% 8.0 50% 7.0 0% 1-Year TSR 3-Year TSR 5-Year TSR 6.0 P/LTM EPS FBIZ Peer Group Median S&P
Slide 10: Total Shareholder Return Since IPO
Total Shareholder Return Since IPO OUTPERFORMED PRIMARY BANKING INDICES SINCE 2005 IPO Total Shareholder Return Monthly, October 2005 through October 27, 2025 600 500 524% 400 300 200 201% % 157% 100 110% 62% 0 (100) (200) FBIZ S&P 500 Bank Index KBW Nasdaq Bank Index KBW Regional Bank Index S&P 500
Slide 11: Why FBIZ?
Why FBIZ? 11
Slide 12: Our Historic & Ongoing Growth Supports Earnings Power
GROWING PROFITABILITY Our Historic & Ongoing Growth Supports Earnings Power 13% 12% 12% 5-year 5-year 5-year Loan Core Deposit TBV/Share CAGR CAGR CAGR 2019-2024 2019-2024 2019-2024 Differentiated Loan Strong & Stable Growing Growth Capabilities Deposit Franchise Profitability Profile • History of c
Slide 13: Balanced and Steady Growth
Balanced and Steady Growth OPERATING FUNDAMENTALS DRIVE EARNINGS POWER Operating Income Highlights $180 $160 $140 • Continued strong revenue supported by: • Robust loan and deposit growth $120 • Strong and stable net interest margin $100 Millions • Diverse sources of non‐interest income, including s
Slide 14: 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 3Q25 YTD FBIZ Net Interest Margin Peer Median Net Interest Margin Linear (FBIZ Net Interes
Slide 15: 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 16: 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 = 3.3% • Despite headwinds related to outsized NIM in 2023, we achieve
Slide 17: 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 year-to- date 2025 and 2024, outperforming peers • As a business-only bank, we’ve achieved this outperformance without Noninterest Income
Slide 18: Superior Credit Experience Across Cycles
Superior Credit Experience Across Cycles NCOs as a % of Average Loans Historical loss experience is favorable to industry across cycles, driven by: 3.00 • Deep client relationships, strong 2.50 underwriting, and niche lending FBIZ’s average loss rate expertise 2.00 since 2005 is approximately one-th
Slide 19: 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% 20% 18% 15% 16% 14% 10% 12% 10% 5% 8% 6% 0% 4% 2% -5% 0% 2021 2022 2023 2024 Q3 2025 2021 2022 2023 2024 Q3 2025 FBIZ Pe
Slide 20: Track Record of Superior Growth
Track Record of Superior Growth HISTORY OF DOUBLE-DIGIT LONG-TERM EPS AND TBV/SHARE GROWTH, OUTPERFORMING PEERS Earnings Per Share CAGR Tangible Book Value Per Share CAGR Through 2024 Through 2024 22% 22% 20% 20% 20% 18% 18% 16% 16% 15% 14% 14% 14% 12% 12% 12% 12% 12% 10% 10% 10% 8% 8% 8% 8% 8% 6% 6
Slide 21: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES $45 TBV 5YR CAGR = 12% $40 Div/Share 5YR CAGR = 11% $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 Q3 25 1 TBV/Share
Slide 22: Drivers of Growth & Profitability
Drivers of Growth & Profitability 22
Slide 23: 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 +9% LQA $4.0 +10% LQA • Bankers train
Slide 24: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,400 9% $1,200 3-Year Loan CAGR1 8% C&I = 17% CRE & Other = 11% Avg Loans (millions) $1,000 7% $800 6% Yield $600 5% $400 4% $200 3% $- 2% 2020 2021 2022 2023 2024 Sept 25 YTD Avg C&I
Slide 25: 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% 3.69% 3.67% 3.68% 0.05% 3.64% 0.00% 3.75% 0.27% 0.01% -0.02% 0.12% 0.23% 0.18% 0.23% 0.03% 3.5% 3.70% 3.61% 3.67% 0.13% 0.00% 3.68% 3.52% 3.65% 3.36% 3.26% 3.
Slide 26: Solid Asset Quality
Solid Asset Quality NON-PERFORMING ASSETS REMAIN WELL MANAGED Reserves and NPL Coverage Credit Quality Indicators NPAs / Total Assets As of 9/30/25, 93% of the loan portfolio was 1.6% classified in category I(1) and 99% of loans were 0.80% 1.63X current 1.60X Allowance for Credit Losses as a % of Lo
Slide 27: Appendix
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS 27
Slide 28: 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 28
Slide 29: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION 29
Slide 30: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 9/30/2025 9/30/2024 Category 9/30/2025 9/30/2024 Short-term investments $8,074 $86,670 Uninsured deposits $1,100,868 $1,008,496 Collateral value of unencumbered pledged loans 906,042 397,852 Collateralize
Slide 31: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios (%) $41 12.18% +17% LQ $40.16 10.50% $40 +16% YOY 9.67% 9.34% $39 $38.54 8.87% 8.50% $38 $37.58 7.00% $37 $36.74 4.00% $36 $35 $34.74 $34 $33 Tier 1 Common Tier 1 Capital Total Capita
Slide 32: Capital Strength
Capital Strength 9/30/25 6/30/25 3/31/25 12/31/24 9/30/24 • Regulatory capital ratios remain solid including a Total Regulatory Capital $452,731 $440,159 $429,351 $421,639 $407,421 Total Capital Ratio of 12.18% Total Risk-Weighted Assets $3,717,741 $3,592,554 $3,519,769 $3,491,626 $3,477,734 and a T
Slide 33: 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 2% 3% 4% 14% 13% 28% 40% 38% 13% 60% 4% 43% 12% 26% All other C&I lending Equipment Finance CRE C&I Othe
Slide 34: Commercial Real Estate Lending
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 35: CRE Office Portfolio Analysis
CRE Office Portfolio Analysis EXCEPTIONAL CREDIT QUALITY ON OFFICE LOANS FOCUSED IN OUR LOCAL BANK MARKETS • Office loans focused in our bank markets and concentrated in Wisconsin Commercial Real Estate Breakdown Midwest Locations - Office >$3mm Land Development 1-4 Family Other, 5% • Exceptional as
Slide 36: Multi-Family Portfolio Analysis
Multi-Family Portfolio Analysis EXCEPTIONAL CREDIT QUALITY ON MULTI-FAMILY LOANS THROUGHOUT THE MIDWEST Multi-Family Breakdown Midwest Locations • Loans focused in our bank Senior Housing Student Housing 7% All Other markets and concentrated 1% 8% Suburban Milwaukee, 17% in Wisconsin Rent Restricted
Slide 37: C&I Lending
C&I Lending DIVERSIFIED COMMERCIAL PRODUCT OFFERINGS TARGET COMPANIES NATIONWIDE Product Profile • Target small and medium companies in a variety of industries Gross Revenue Portfolio Analysis • Financings range from $28 $250,000 to $20 million $1,400 10.00% $27 $1,200 $27 Technology $1,000 8.00% $2
Slide 38: 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 $100 MM ◦ EF comprised 26% of 8% Construction
Slide 39: Treasury Management Product Profile
Treasury Management Product Profile SUPERIOR TALENT WITH BUSINESS EXPERTISE BUILDING RELATIONSHIPS IN MIDWEST • Target small to medium- GEOGRAPHIC FOOTPRINT sized companies in our Wisconsin, Kansas, and Missouri markets • Comprehensive services for commercial clients to Funding Mix Fee Revenue and A
Slide 40: Private Wealth Management Product Profile
Private Wealth Management Product Profile • Fiduciary and investment WEALTH MANAGEMENT SERVICES FOR BUSINESSES, EXECUTIVES, AND HIGH NET manager for individual and WORTH INDIVIDUALS corporate clients, creating and executing asset allocation strategies tailored to each client’s unique Assets Under Ma
Slide 41: Adjusted Net Interest Income
Non-GAAP Reconciliation Adjusted Net Interest Income "Adjusted Net Interest Income" is defined as net interest income less fees in lieu of interest and other recurring, but volatile components of net interest income . "Fees in Lieu of Interest" is defined as prepayment fees, asset-based loan fees, n
Slide 42: 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: 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 Third Quarter 2025
Investor Presentation Third Quarter 2025 NASDAQ: FBIZ 44
First Business Financial Services — Q3 2025 Earnings Presentation on 6ix