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, Aug 20, 2026
Slide 1: Investor Presentation Second Quarter 2026
NASDAQ: FBIZ Investor Presentation Second Quarter 2026
Slide 2: 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,” “likely,” or similar expre
Slide 3: Table of Contents
Table of Contents Page 4 7 8 13 24 30 Q2 2026 Results Company Snapshot Strategic Plan Why FBIZ? Drivers of Growth & Profitability Appendix
Slide 4: Highlights Q2 2026
Highlights Q2 2026 Tangible Book Value Per Share1 +15% YOY Loans +10% Loans grew 10.0% from the linked quarter and 10.3% year-over-year, including the transfer of $23.7 million in held-for-sale loans to loans and leases receivable. Core Deposits +12% Core deposits grew 11.7% from the linked quarter
Slide 5: Quarterly Update Q2 2026
Quarterly Update Q2 2026 Earnings per share included $0.14 net EPS benefit from one-time events: $1.5 million deferred tax asset valuation allowance reversal $405,000 in severance costs related to exit from out-of-footprint SBA 7(a) lending activities Double-digit growth in loans and core deposits s
Slide 6: Exit from out-of-footprint SBA 7(a) lending
WHY? Economic returns did not meet internal targets; investments in SBA talent and capacity did not consistently produce adequate volume and profitability Refocuses resources on higher-return business areas in support of our 10%+ annual growth objective WHAT’S NEXT? In-footprint SBA 7(a) and 504 len
Slide 7: Company Snapshot
First Business Bank’s unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver exceptional results for all stakeholders. We serve business executives, entrepreneurs, and high net worth individuals through Business Banking, Private Wea
Slide 8: Strategic Plan
FIVE YEAR (§ Strategic Plan
Slide 9: Five Year Strategic Plan 2024-2028
DEPOSITS OPERATIONAL EXCELLENCE PROFITABILITY FUTURE-READY TALENT CULTURE Protect and strengthen our culture Grow our core deposits Achieve sustainable profitability and growth Thrive in the workplace of the future Improve efficiency and enhance client experience Five Year Strategic Plan 01 02 03 04
Slide 10: Goals & Progress
Deliver above-average total shareholder return compared to peer median ROATCE, TBV/share, and Efficiency Ratio are non-GAAP measurements. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q2 earnings release for additional detail. Represents data from the 2025 employee engageme
Slide 11: Total Shareholder Return Above Peer Group Median
Total Shareholder Return Above Peer Group Median Despite outperformance, Price/LTM EPS remains below peers Note: Peer Group defined as publicly traded banks with total assets between $1.75 billion and $7.0 billion. 1‐Year TSR is through 6/30/2026. Data as of 3/31/2026.
Slide 12: Total Shareholder Return Since IPO
FBIZ initiated trading on October 7, 2005. Source: S&P Capital IQ Total Shareholder Return Since IPO outperformed PRIMARY BANKING INDICES SINCE 2005 IPO 699% 221% 217% 165% 101%
Slide 13: Why FBIZ?
(§ Why FBIZ?
Slide 14: Our Historic & Ongoing Growth Supports Earnings Power
Our Historic & Ongoing Growth Supports Earnings Power Differentiated Loan Growth Capabilities History of consistent double-digit growth Growth is C&I focused and diversified Solid credit quality due to deep client relationships, strong underwriting, and niche lending expertise GROWING PROFITABILITY
Slide 15: Track Record of Superior Growth
Track Record of Superior Growth 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 2024 History of double-digit annual growth reflects long-term success in achieving: Steady and consistent balance sheet ex
Slide 16: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES TBV 5YR CAGR = 12% Div/Share 5YR CAGR = 11%
Slide 17: Operating Revenue Highlights
Operating Revenue Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income: Service fees from private wealth management comprised 45% of Q2 26 TTM non‐interest income and have grown 35% over the past
Slide 18: Margin Strength Through Rate Cycles
Peer Group defined as publicly‐traded banks with total assets between $1.75 billion and $7.0 billion. Margin Strength Through Rate Cycles MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES
Slide 19: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management FLOATING RATE PORTFOLIO Floating portfolio is predominantly indexed to SOFR, which aligns with the Bank’s SOFR‐indexed and managed rate non‐maturity deposit portfolio. 61% of portfolio as of 6/30/26: METHODICAL APPROACH Typically individually match‐fund loan
Slide 20: Match Funded Balance Sheet Unique Among Peers
Match Funded Balance Sheet Unique Among Peers Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion.
Slide 21: Consistent, Positive Operating Leverage
Consistent, Positive Operating Leverage HISTORY OF GROWING REVENUES FASTER THAN EXPENSES We aim to achieve 10% revenue growth on an annual basis, with positive operating leverage1 Strategic initiatives directed toward revenue growth and operating efficiency through use of technology have generated p
Slide 22: Strong Business Banking Revenue Profile
Strong Business Banking Revenue Profile 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 residential mortgage or consumer business Growing contribution from Private Wealth is an ann
Slide 23: Growth And Profitability Exceeds Peers
Growth And Profitability Exceeds Peers TLR GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVES STRONG PROFITABILITY Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. 1. 5-Year average represents 2020-2025. 5-Year Average1 FBIZ = 15.7% Peer = 12.9%
Slide 24: Drivers of Growth & Profitability
Drivers of Growth & Profitability
Slide 25: Relationship Banking Key to Success
Relationship Banking Key to Success Deposit‐centric sales strategy led by treasury management sales teams located in all bank markets with direct production and outside calling goals Bankers trained and incented to fund their loan production with deposit growth goals Niche lending businesses provide
Slide 26: Diversified Lending Growth Continuing To Grow Higher-Yielding C&I
Diversified Lending Growth Continuing To Grow Higher-Yielding C&I PORTFOLIO 2023-2025 3-Year Loan CAGR C&I = 18% CRE & Other = 10%
Slide 27: Strong and Resilient Net Interest Margin
Strong and Resilient Net Interest Margin Wholesale funding defined as brokered CDs and non‐reciprocal interest‐bearing transaction accounts plus FHLB advances. Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion. Peer data not yet available for 2Q2
Slide 28: Decline in Non-Performing Assets
Decline in Non-Performing Assets PROGRESS ON NPAs WITH STRONG COLLATERAL POSITION NPAs declined in 2Q26, driven by the repayment of a non-accrual SBA loan and lower non-accrual equipment finance loans. Two largest NPAs were $17.0 million and $6.1 million at June 30, 2026. We continue to expect progr
Slide 29: Superior Credit Experience Across Cycles
FBIZ’s average loss rate since 2005 is approximately one-third of industry rate *Industry reflects all FDIC-insured depositories Source: FDIC.gov Superior Credit Experience Across Cycles Favorable loss experience reflects: Deep client relationships, strong underwriting, and niche lending expertise L
Slide 30: Appendix: Supplemental Data & Non-GAAP Reconciliations
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS
Slide 31: Offerings Designed Exclusively For Business And Wealth Management
Offerings Designed Exclusively For Business And Wealth Management SERVICES THAT MEET THE EVOLVING NEEDS OF OUR GROWING CLIENT BASE
Slide 32: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION
Slide 33: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity Source 6/30/2026 6/30/2025 Short-term investments $131,294 $72,520 Collateral value of unencumbered pledged loans 987,993 893,499 Market value of unencumbered securities 378,423 347,196 Readily accessible liquid
Slide 34: Robust Capital Base
Robust Capital Base Strong Capital Ratios +16% LQA +15% YOY STRONG EARNINGS GENERATE CAPITAL FOR GROWTH 1. “Tangible Book Value Per Share" is a non‐GAAP measurement. Refer to section entitled Non-GAAP Reconciliations in the Company’s Q2 26 earnings release.
Slide 35: Capital Strength
Capital Strength 6/30/25 9/30/25 12/31/25 03/31/26 06/30/26 Total Regulatory Capital $440,159 $452,731 $463,447 $473,237 $486,735 Total Risk-Weighted Assets $3,592,554 $3,717,741 $3,786,460 $3,895,564 $3,984,908 Leverage Ratio 8.82% 8.87% 8.86% 8.93% 9.11% Common Equity Tier 1 Capital Ratio 9.33% 9.
Slide 36: Diversified Lending Products
Diversified Lending Products Double-digit loan growth driven by stellar performance across all areas of the bank Note: Period end balances as of 6/30/2026 presented.
Slide 37: Commercial Real Estate Lending
Product Profile We originate loans secured by commercial real estate, including owner-occupied properties, non-owner-occupied facilities, multifamily developments, 1-4 family residential developments, and construction loans for these types of buildings. As of 6/30/26, our commercial real estate port
Slide 38: C&I Lending
Product Profile Target small and medium companies in a variety of industries Financings typically range from $250,000 to $20 million Note: Loan balances represent quarterly average data. C&I Lending Diversified commercial product offerings target companies nationwide Q2 increase due to elevated prep
Slide 39: Equipment Finance Portfolio Analysis
Equipment Finance Portfolio Analysis Equipment Finance (EF) loans diversified across industries EF comprised 23% of C&I loans and 9% of Total Loans at 6/30/2026 Small ticket transportation loans comprised 4.4% of EF, 1.0% of C&I, and 0.4% of Total Loans Stable asset quality in EF portfolio excluding
Slide 40: Treasury Management
Product Profile Target small to medium-sized companies in our Wisconsin, Kansas, and Missouri markets Comprehensive services for commercial clients to manage their cash and liquidity, including lockbox, accounts receivable collection services, electronic payment solutions, fraud protection, informat
Slide 41: Private Wealth Management
Product Profile Investment manager for individual and corporate clients, creating and executing asset allocation strategies tailored to each client’s unique situation Holds full fiduciary powers and offers trust, estate, financial planning, and investment services, acting in a trustee or agent capac
Slide 42: Net Operating Income reconciliation
"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-time and other discrete items. In compliance w
Slide 43: Cost of Funds reconciliation
‘‘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 trends in our bank funding costs. The
Slide 44: Second Quarter 2026
Investor Presentation Second Quarter 2026
First Business Financial Services — Q2 2026 Earnings Presentation on 6ix