First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q4 2025 Earnings Presentation
15 slides from First Business Financial Services's earnings presentation, Jan 30, 2026
Slide 1: Earnings Release Supplement Fourth Quarter 2025
Earnings Release Supplement Fourth 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 Q4 2025
Highlights Q4 2025 Core Deposits Loans NIM +12% +5% 3.53% Included a 10 bp impact of non-accrual interest Core deposits grew 12.5% annualized from the Loans grew 4.6% annualized from the linked reversals in the quarter. Net interest margin was linked quarter and 11.5% from Q4 2024. Core quarter and
Slide 4: 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 robust year of 20% EPS growth in FBIZ vs Peers FBIZ 2024 Earnings Per Share CAGR Earnin
Slide 5: 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 +12% LQA $4.0 +5% LQA • Bankers train
Slide 6: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,400,000 9% $1,200,000 3-Year Loan CAGR 8% C&I = 18% Avg Loans (thousands) $1,000,000 CRE & Other = 10% 7% $800,000 6% Yield $600,000 5% $400,000 4% $200,000 3% $- 2% 2020 2021 2022 20
Slide 7: Strong and Resilient Net Interest Margin
Strong and Resilient Net Interest Margin MATCH FUNDING STRATEGY SUPPORTS LONG-TERM NIM STABILITY NIM Components Included a 10bp 3.80% Net Interest Margin impact of non- accrual interest 0.04% 0.00% 4.0% reversals 3.70% 3.68% 3.77% 3.69% 3.67% 3.68% 3.52% 3.52% 3.53% 3.60% -0.10% 3.5% 3.36% 0.07% 0.0
Slide 8: 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 9: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +10% YOY Highlights $180 • Continued strong revenue supported by: $160 • Robust loan and deposit growth $140 • Strong and stable net interest margin • Diverse sources of non‐interest income, $120 including se
Slide 10: Superior Credit Experience Across Cycles
Superior Credit Experience Across Cycles HISTORICAL LOSS EXPERIENCE IS FAVORABLE TO INDUSTRY NCOs as a % of Average Loans 3.00 • Deep client relationships, 2.50 strong underwriting, and FBIZ’s average loss rate since 2005 is approximately one-third niche lending expertise 2.00 of industry rate • Loa
Slide 11: Performing Portfolio Remains Strong and Stable
Performing Portfolio Remains Strong and Stable RECENT AND FIVE-YEAR TRENDS REFLECT CONSISTENT STRENGTH OF PORTFOLIO Credit Quality Indicators As of 12/31/25, 92% of the loan portfolio was classified in category I(1) and 99% of loans were current Performing loans comprised 99% of the Bank’s Performin
Slide 12: Non-Performing Assets
Non-Performing Assets SINGLE BORROWER DOWNGRADE IN Q4 2025 WITH STRONG COLLATERAL POSITION Reserves and NPL Coverage NPAs / Total Assets • $20.4 million of CRE loans related to a single 1.6% Wisconsin-based borrower were 1.20% 1.60X Allowance for Credit Losses as a % of Loans 1.07% downgraded in Q4
Slide 13: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 12/31/2025 12/31/2024 Category 12/31/2025 12/31/2024 Short-term investments $8,714 $128,207 Uninsured deposits $1,220,177 $980,278 Collateral value of unencumbered pledged loans 992,398 444,453 Collateral
Slide 14: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios (%) $43 12.08% 12.24% +16% LQ $41.75 $42 +14% YOY 9.79% 9.48% 9.45% $41 8.78% 8.86% 9.10% $40.16 $40 $39 $38.54 $38 $37.58 $37 $36.74 $36 $35 Tier 1 Leverage Common Tier 1 Capital Tot
Slide 15: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2024 2025 ROATCE1 ≥15% by 2028 15.4% 15.3% TBV Growth1 ≥10% per year 15.0% 13.7% Revenue Growth ≥10% per year 6.6% 9.7% Efficiency Ratio <60% by 2028 60.61% 58.78% Core De
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