First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q3 2025 Earnings Presentation
12 slides from First Business Financial Services's earnings presentation, Oct 31, 2025
Slide 1: Earnings Release Supplement Third Quarter 2025
Earnings Release Supplement Third Quarter 2025 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 Q3 2025
Highlights Q3 2025 Loans Core Deposits NIM +10% +9% 3.68% Core deposits grew 9.3% annualized from the Match-funding strategy and pricing discipline Consistent loan growth across the Company. produced a strong and stable net interest margin Loans grew 10.4% annualized from the linked linked quarter a
Slide 4: 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 +9% LQA $4.0 +10% LQA • Bankers train
Slide 5: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,400,000 9% $1,200,000 3-Year Loan CAGR 8% C&I = 17% Avg Loans (thousands) $1,000,000 CRE & Other = 11% 7% $800,000 6% Yield $600,000 5% $400,000 4% $200,000 3% $- 2% 2020 2021 2022 20
Slide 6: Strong and Stable Net Interest Margin
Strong and Stable Net Interest Margin MATCH FUNDING STRATEGY SUPPORTS RESILIENT NIM NIM Components Net Interest Margin 3.85% 4.0% 3.80% 3.77% 3.69% 3.67% 3.68% 0.05% 3.64% 3.75% 0.27% 0.01% -0.02% 0.12% 0.23% 0.18% 0.23% 0.03% 3.5% 3.70% 0.13% 0.00% 3.68% 3.67% 3.52% 3.65% 3.36% 3.26% 3.60% 3.19% 3.
Slide 7: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management • Generally 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: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +16% YOY Highlights $50 • Continued strong revenue supported by: $45 • Robust loan and deposit growth $40 • Strong and stable net interest margin $35 • Diverse sources of non‐interest income, including servic
Slide 9: Solid Asset Quality
Solid Asset Quality NON-PERFORMING ASSETS REMAIN WELL MANAGED Reserves and NPL Coverage Credit Quality Indicators NPAs / Total Assets As of 9/30/25, 93% of the loan portfolio was 1.6% classified in category I(1) and 99% of loans were 0.80% 1.63X current 1.60X Allowance for Credit Losses as a % of Lo
Slide 10: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 9/30/2025 9/30/2024 Category 9/30/2025 9/30/2024 Short-term investments $8,074 $86,670 Uninsured deposits $1,100,868 $1,008,496 Collateral value of unencumbered pledged loans 906,042 397,852 Collateralize
Slide 11: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios (%) $41 12.18% +17% LQ $40.16 10.50% $40 +16% YOY 9.67% 9.34% $39 $38.54 8.87% 8.50% $38 $37.58 7.00% $37 $36.74 4.00% $36 $35 $34.74 $34 $33 Tier 1 Common Tier 1 Capital Total Capita
Slide 12: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 Deliver above-average total shareholder return compared to peer median Goals 2024‐2028 2024 Sept 25 YTD ROATCE1 ≥15% by 2028 15.4% 17.3% TBV Growth1 ≥10% per year 15.0% 15.6% Revenue Growth ≥10% per year 6.6% 12.3% Efficiency Ratio <60% by 2028 60.61% 59.51%
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