First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q2 2026 Earnings Presentation
17 slides from First Business Financial Services's earnings presentation, Jul 31, 2026
Slide 1: Earnings Release Supplement Second Quarter 2026
Earnings Release Supplement Second Quarter 2026 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 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 4: 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 5: 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 6: 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 7: 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 8: 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% 3.67% 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% 3.56% 3.
Slide 9: 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 10: Match Funded Balance Sheet Unique Among Peers
Match Funded Balance Sheet Unique Among Peers Loan & Deposit Betas in Current Rate Cycle 3Q24–1Q26 60 50 46.2 47.4 40 33.4 30 % 20 10 6.8 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. 10
Slide 11: 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 12: 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 13: Decline in Non-Performing Assets
Decline in Non-Performing Assets PROGRESS ON NPAS WITH STRONG COLLATERAL POSITION Reserves and NPL Coverage NPAs / Total Assets • 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 14: 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 15: 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 16: 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 17: 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.
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