First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q4 2025 Earnings Presentation
44 slides from First Business Financial Services's earnings presentation, Jan 30, 2026
Slide 1: Investor Presentation Fourth Quarter 2025
Investor Slide Title Presentation Date Fourth 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 Q4 2025 Results 4 Company Snapshot 5 Strategic Plan Table of Contents 6 Why FBIZ? 11 Drivers of Growth & Profitability 21 Appendix 28
Slide 4: Highlights Q4 2025
Highlights Q4 2025 Core Deposits Loans NIM +12% +5% 3.53% Included a 10 bp impact of non-accrual reversals Core deposits grew 12.5% annualized from the Loans grew 4.6% annualized from the linked in the quarter. Net interest margin was 3.63% linked quarter and 11.5% from Q4 2024. Core quarter and 8.4
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. $475 Million HEADQUARTERS Madison, WI MARKET CAP 1 FBIZ BUSINESS BANKING 2 We serve business executives, entrepreneurs, and high net $4.1 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 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 8: 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
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 250% 12.0 200% 11.0 150% 10.0 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 500 Bank Russel
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 January 2026 600 589% 500 400 300 % 200 199% 189% 140% 100 92% 0 (100) FBIZ S&P 500 Bank Index KBW Nasdaq Bank Index KBW Regional Bank Index S&P 500 Regional
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 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 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 2025 FBIZ Net Interest Margin Peer Median Net Interest Margin Linear (FBIZ Net Interest Ma
Slide 15: 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 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 = 2.76% • Strategic initiatives directed toward revenue growth and ope
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: 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 16% FBIZ =5-Year Average2 20% FBIZ =5-Year Average2 10.1% 18% 15.7% 14% Peer = 12.9% Peer = 6.3% 12% 16% 10% 14% 8% 12% 6% 1
Slide 19: 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 20: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES Announced a 17% dividend increase for 2026, marking $45 14th consecutive annual increase TBV 5YR CAGR = 12% $40 Div/Share 5YR CAGR = 11% $35 $30 $25 $20 $15 $10 $5 $0 '06 '07
Slide 21: Drivers of Growth & Profitability
Drivers of Growth & Profitability 21
Slide 22: 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 23: 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 24: 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 25: 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 FBIZ’s average loss rate since strong underwriting, and 2005 is approximately one-third of industry rate niche lending expertise 2.00 • Loa
Slide 26: 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 27: Non-Performing Assets
Non-Performing Assets SINGLE BORROWER DOWNGRADE IN Q4 2025 WITH STRONG COLLATERAL POSITION NPAs / Total Assets Reserves and NPL Coverage • $20.4 million of CRE loans related to a single Wisconsin-based borrower were 1.6% downgraded in Q4 2025 1.20% 1.60X Allowance for Credit Losses as a % of Loans 1
Slide 28: Appendix
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS 28
Slide 29: 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 29
Slide 30: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION 30
Slide 31: 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 32: 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 33: Capital Strength
Capital Strength • Regulatory capital ratios 12/31/24 6/30/25 6/30/25 9/30/25 12/31/25 remain solid including a Total Regulatory Capital $421,639 $440,159 $440,159 $452,731 $463,447 Total Capital Ratio of 12.24% and a Tier 1 Ratio of 9.79%. Total Risk-Weighted Assets $3,491,626 $3,592,554 $3,592,554
Slide 34: 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% 4% 14% 13% 28% 38% 41% 12% 4% 61% 12% 43% 26% All other C&I lending Equipment Finance CRE C&I Othe
Slide 35: 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 36: 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 Kansas City, 6% Other, 5%
Slide 37: 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 8% All Other markets and concentrated 0% 8% Suburban Milwaukee, 17% in Wisconsin Rent Restricted
Slide 38: 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% $8
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 $100 MM ◦ EF comprised 26% of 6% Construction
Slide 40: Treasury Management
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 41: Private Wealth Management
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 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 Fourth Quarter 2025
Investor Presentation Fourth Quarter 2025 NASDAQ: FBIZ 44
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