First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q1 2026 Earnings Presentation
15 slides from First Business Financial Services's earnings presentation, Apr 24, 2026
Slide 1: Earnings Release Supplement First Quarter 2026
Earnings Release Supplement First 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 Q1 2026
Highlights Q1 2026 Loans Core Deposits Fee Income +15% +18% +18% Loans grew 14.9% from the linked quarter and Core deposits grew 18.4% from the linked quarter and Non-interest income grew 17.6% from the linked 9.9% year-over-year. 13.5% year-over-year. Core deposit funding mix improved quarter and 1
Slide 4: 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 $3.0 +18% LQA $4.0 +15% LQA markets with direct production +14% YOY +10% YOY and outside calling go
Slide 5: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,400 9% • C&I comprised 67% 2023-2025 3-Year of 1Q26 loan growth $1,200 Loan CAGR 8% C&I = 18% • 1Q26 loan growth CRE & Other = 10% predominantly Avg Loans (millions) $1,000 7% occurre
Slide 6: Strong and Resilient Net Interest Margin
Strong and Resilient Net Interest Margin MATCH FUNDING STRATEGY SUPPORTS LONG-TERM NIM STABILITY NIM Components Net Interest Margin 3.80% 3.80% 3.69% • 1Q26 and 1Q25 NIM 3.67% 3.68% 3.70% include 5bp of impact 3.70% 3.56% due to fewer accrual 3.60% 3.60% 0.06% 0.00% 3.56% 3.52% 3.52% 3.53% 3.52% day
Slide 7: 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 8: Match Funded Balance Sheet Unique Among Peers
Match Funded Balance Sheet Unique Among Peers Loan & Deposit Betas in Current Rate Cycle 3Q24–4Q25 50 40.2 40.0 40 29.9 30 % 20 10 1.1 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. 8
Slide 9: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +9% TTM Q1 26 vs TTM Q1 25 Highlights $200 • Continued strong revenue supported by: $180 • Robust loan and deposit growth $160 • Strong and stable net interest margin $140 • Diverse sources of non‐interest in
Slide 10: 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 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
Slide 11: Performing Portfolio Remains Strong and Stable
Performing Portfolio Remains Strong and Stable RECENT AND FIVE-YEAR TRENDS REFLECT CONSISTENT STRENGTH OF PORTFOLIO Performing loans comprised 99% of the Bank’s Credit Quality Indicators total loan portfolio as of March 31, 2026 As of 3/31/26, 93% of the loan portfolio was classified in category I(1
Slide 12: Decline in Non-Performing Assets
Decline in Non-Performing Assets PROGRESS ON SINGLE BORROWER NPA WITH STRONG COLLATERAL POSITION Reserves and NPL Coverage • NPAs declined in 1Q26, driven by the sale of NPAs / Total Assets $3.4 million of land development loans, at 1.10% 1.50% 1.05X 1.1X par, from a single Wisconsin-based Allowance
Slide 13: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 3/31/2026 3/31/2025 Category 3/31/2026 3/31/2025 Short-term investments $104,565 $136,033 Uninsured deposits $1,237,344 $1,055,347 Collateral value of unencumbered pledged loans 968,320 973,494 Collateral
Slide 14: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios $44 13% 12.20% 12.15% +9% LQA $42.68 12% $43 +14% YOY 11% $41.75 $42 10% 9.60% 9.74% 9.26% 9.43% $41 8.77% 8.93% $40.16 9% $40 8% $39 $38.54 7% $38 $37.58 6% 5% $37 4% $36 3% $35 Tier
Slide 15: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2025 Q1 2026 ROATCE1 ≥15% by 2028 15.3% 13.6% TBV Growth1 ≥10% per year 13.7% 13.6% Revenue Growth2 ≥10% per year 9.7% 8.5% Efficiency Ratio <60% by 2028 58.78% 61.14% Cor
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