First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q2 2025 Earnings Presentation
43 slides from First Business Financial Services's earnings presentation, Nov 10, 2025
Slide 1: Investor Presentation Second Quarter 2025
NASDAQ: FBIZ Investor Presentation Second Quarter 2025
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 5 6 11 19 24 Q2 2025 Results Company Snapshot Strategic Plan Why FBIZ? Drivers of Growth & Profitability Appendix
Slide 4: Highlights Q2 2025
Highlights Q2 2025 PTPP Earnings +18% YTD Robust balance sheet growth, operational efficiency, and solid asset quality drove 18% growth in pre-tax, pre-provision earnings and 17% growth in net income for the first six months of 2025 compared to the prior-year period. Private Wealth $3.7 B in AUM&A P
Slide 5: Company Snapshot
Build long‐term shareholder value as an entrepreneurial banking partner that drives success for businesses, investors, and our communities. We serve business executives, entrepreneurs, and high net worth individuals through Business Banking, Private Wealth, and Bank Consulting. Our commercial bankin
Slide 6: Five Year Strategic Plan
FIVE YEAR (S Strategic Plan
Slide 7: Five Year Strategic Plan 2024-2028
DEPOSITS EFFICIENCY 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 Achieve operational excellence Five Year Strategic Plan 01 02 03 04 05 First Business Bank's uniq
Slide 8: Strategic Plan Goals & Progress
Deliver above-average total shareholder return compared to peer median June 2025 YTD metrics reflect YTD growth compared to June 2024 YTD ROATCE and TBV/share are non-GAAP measurements. Refer to the non-GAAP reconciliation schedule of the Company’s Q2 earnings release for additional detail. Represen
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 Note: Peer Group defined as publicly traded banks with total assets between $1.75 billion and $7.0 billion. 1‐Year, 3‐Year, and 5‐Year TSR is through 6/30/2025. Data as of 3/31/2025.
Slide 10: 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 512% 183% 147% 113% 66%
Slide 11: Why FBIZ?
§& | Why FBIz?
Slide 12: 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 13: Operating Income Highlights
Operating Income Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income, including service fees from our Private Wealth Management business which comprises 47% of total non‐interest income Strategi
Slide 14: 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 15: 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. 56% of portfolio as of 6/30/25: METHODICAL APPROACH Generally individually match‐fund loan
Slide 16: Operating Leverage Outperforms Peers
Operating Leverage Outperforms Peers HISTORY OF GROWING REVENUES FASTER THAN EXPENSES We aim to achieve 10% revenue growth on an annual basis, with positive operating leverage1 Despite headwinds related to outsized NIM in 2023, we achieved positive operating leverage in 2024 for the sixth consecutiv
Slide 17: 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. Peer data not yet available for 2Q 25.
Slide 18: 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% 1. Q2 25 dividend per share calculation is annualized. 1
Slide 19: Drivers of Growth & Profitability
Drivers of Growth & Profitability
Slide 20: 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 Goal is 10% annual deposit and l
Slide 21: Diversified Lending Growth
Diversified Lending Growth Growth IN Higher-Yielding C&I Lending Mix 3-Year Loan CAGR C&I = 17% CRE & Other = 11%
Slide 22: Net Interest Margin Components
Net Interest Margin Components FILOI defined as fees in lieu of interest which includes prepayment fees, asset-based loan fees, non-accrual interest, late fees, and loan fee amortization Wholesale funding defined as brokered CDs and non‐reciprocal interest‐bearing transaction accounts plus FHLB adva
Slide 23: Solid Asset Quality
Solid Asset Quality NON-PERFORMING ASSETS REMAIN WELL MANAGED 1. For more detailed definitions of credit quality categories, see the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2025. As of 6/30/25, 93% of the loan portfolio was classified in category1 and 98% of loans wer
Slide 24: Appendix: Supplemental Data & Non-GAAP Reconciliations
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS
Slide 25: 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 26: Superior Client Satisfaction Rating
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION
Slide 27: Environmental, Social, and Governance Practices
Environmental, Social, and Governance Practices Are Integrated Into Our Core Business Strategy ESG FRAMEWORK Branch‐lite model with only one location in each of the banking markets we serve Support hybrid and remote work options to reduce carbon emissions related to commuting (even prior to COVID) R
Slide 28: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base As of 6/30/25 Substantial Liquidity Source 6/30/2025 6/30/2024 Short-term investments $72,520 $54,680 Collateral value of unencumbered pledged loans 893,499 401,602 Market value of unencumbered securities 347,196 289,104 Readily acce
Slide 29: Robust Capital Base
Robust Capital Base Strong Capital Ratios (%) +10% LQ +14% YOY STRONG EARNINGS GENERATE CAPITAL FOR GROWTH 1. “Tangible Book Value Per Share" is a non‐GAAP measurement. Refer to the non-GAAP reconciliation schedule section of the Company’s Q2 earnings release.
Slide 30: Capital Strength
Capital Strength 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Total Regulatory Capital $440,159 $429,351 $421,639 $407,421 $392,359 Total Risk-Weighted Assets $3,592,554 $3,519,769 $3,491,626 $3,477,734 $3,425,925 Leverage Ratio 8.82% 8.77% 8.78% 8.68% 8.51% Common Equity Tier 1 Capital Ratio 9.33% 9.26
Slide 31: 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 6/30/2025 presented.
Slide 32: Commercial Real Estate Lending Product Profile
Product Profile Target small to medium-sized companies Lines of credit and term loans focused on businesses with annual sales of up to $75.0 million Technology Initiatives Deploying client portal that enables easy and secure communications and document exchanges Note: Loan balances represent quarter
Slide 33: CRE Office Portfolio Analysis
Office loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with no non-performing office loans in the portfolio 89% of all office loans have recourse Office loans consist of 63% Class A space Office represents 9% of total loans as of 6/30/25 Majority of office l
Slide 34: Multi-Family Portfolio Analysis
Loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with no non-performing loans in the portfolio Represents 18% of total loans 90% of all multi-family loans have recourse All multi-family loans with 2031+ maturities are conventional fixed rate or fixed to the c
Slide 35: C&I Lending Product Profile
Product Profile Target small and medium companies in a variety of industries Financings range from $250,000 to $10 million Technology Initiatives Deploying client portal that enables easy and secure communications and document exchanges Note: Loan balances represent quarterly average data. C&I Lendi
Slide 36: Equipment Finance Portfolio Analysis
Equipment Finance Portfolio Analysis Equipment Finance (EF) loans diversified across industries EF comprised 27% of C&I loans and 10% of Total Loans at 6/30/2025 Small ticket transportation loans comprised 9% of EF, 2.5% of C&I, and 1.0% of Total Loans Stable asset quality in EF portfolio excluding
Slide 37: Treasury Management and Deposits Product Profile
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 38: Private Wealth Management
Product Profile Fiduciary and 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
Slide 39: Adjusted Net Interest Margin reconciliation
“Adjusted Net Interest Margin” is a non-GAAP measure representing net interest income excluding the fees in lieu of interest and other recurring, but volatile, components of net interest margin divided by average interest-earning assets excluding other recurring, but volatile, components of average
Slide 40: Adjusted Net Interest Income reconciliation
"Adjusted Net Interest Income" is defined as net interest income less fees in lieu of interest and other recurring, but volatile components of net interest income . "Fees in Lieu of Interest" is defined as prepayment fees, asset-based loan fees, non-accrual interest, and loan fee amortization. We be
Slide 41: 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 42: 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 43: Second Quarter 2025
Investor Presentation Second Quarter 2025
First Business Financial Services — Q2 2025 Earnings Presentation on 6ix