First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q3 2026 Earnings Presentation
17 slides from First Business Financial Services's earnings presentation, Oct 30, 2026
Slide 1: Earnings Release Supplement Third Quarter 2026
Earnings Release Supplement Third 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 Q3 2026
Highlights Q3 2026 Record PTPP Earnings1 Core Deposits Loans +13% +15% +10% • +7.6% LQ • +14.1% LQA, +14.9% YoY • +9.9% LQA • +13.1% YoY • Core deposit funding mix improved • +10.2% YoY to 76.7%, from 73.1% in 3Q25. Net Interest Operating Margin Leverage1 Private Wealth 3.80% +4.3% +13% • +2 bps LQ
Slide 4: Quarterly Update
Quarterly Update TARGET = 10% Annual Growth 13% growth Q3 2026 in TBVPS driven by record PTPP earnings YTD’26 Sept vs. and positive operating leverage $ in millions, except per share Q3'26 LQ* YoY YTD'26 YTD'25 EARNINGS Operating revenue $ 47.5 2% 7% $ 138.5 10% Record PTPP Earnings, Net Income, Ope
Slide 5: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 OBJECTIVE: Deliver above-average total shareholder return compared to peer median SEPT 2026 GOALS 2024‐2028 2024 2025 YTD ROATCE1 ≥15% by 2028 15.4% 15.3% 16.0% TBV/Share Growth1 ≥10% per year 15.0% 13.7% 13.4% Operating Revenue Growth ≥10% per year 6.6% 9.7
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 +14% LQA $4.0 +10% LQA markets with direct production +15% 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 $1,400 3-Year Loan CAGR 8% C&I = 18% $1,200 CRE & Other = 10% 7% Avg Loans (millions) $1,000 6% Yield $800 5% $600 4% $400 $200 3% $- 2% 2021 2022 2023 2024 2025 Sept
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 3.95% 3.90% 0.07% 3.85% 3.80% 0.02% 3.80% 3.78% 3.80% -0.05% 3.78% 3.75% -0.02% 3.70% 3.70% 3.68% 3.60% 3.65% 3.62% 3.50% 3.56% 3.55% 3.52% 3.53% 3.52% 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 3Q24–2Q26 60 49.1 50 40 34.3 33.6 30 % 20 10 1.8 0 FBIZ Peer Median Loan Beta Deposit Beta Note: Peer group defined as publicly‐traded banks 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 Q3’26 vs TTM Q3’25 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 GOAL: Achieve 10% revenue growth on an annual basis, with positive 10% operating leverage1 5-Year Average2 • Strategic initiatives directed toward revenue growth and FBIZ = 2.76% 8% operating
Slide 13: Non-Performing Assets Update
Non-Performing Assets Update ISOLATED NPAS WITH STRONG COLLATERAL Reserves and NPL Coverage NPAs / Total Assets • NPAs increased in 3Q26, reflecting the 1.04X 1.20% 1.50% 1.00X 1.1X addition of a multi-family loan Allowance for Credit Losses as a % of Loans 1.0X associated with a previously Allowanc
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 strong underwriting, and FBIZ’s average loss rate since niche lending expertise 2.00 2005 is
Slide 15: Robust Capital Base
Robust Capital Base STRONG EARNINGS GENERATE CAPITAL FOR GROWTH Tangible Book Value per Share1 Strong Capital Ratios 13% +12% 5YR CAGR +13% YOY 12.18% 12.25% 12% $50 $45.56 11% $45 $41.75 9.95% $40.16 9.65% 9.67% 10% 9.34% $40 $36.74 9.22% 8.87% $35 $31.94 9% $30 $28.28 8% $26.03 $25 7% $20 6% $15 5
Slide 16: Profitability Exceeds Peers
Profitability Exceeds Peers EARNINGS GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVE STRONG PROFITABILITY Return on Average Tangible Common Equity1 20% 5-Year Average2 FBIZ = 15.7% 18% Peer = 12.9% 16.0% 16% 15.0% 14% 13.2% 12% 10% 8% 6% 4% 2% 0% 2021 2022 2023 2024 2025 YTD June YTD Sept 26 26 FBIZ P
Slide 17: Robust Liquidity with Stable Deposit Base
Robust Liquidity with Stable Deposit Base Substantial Liquidity Stable Core Deposit Base Source 9/30/2026 9/30/2025 Category 9/30/2026 9/30/2025 Short-term investments $59,417 $8,074 Uninsured deposits $1,381,507 $1,100,868 Collateral value of unencumbered pledged loans 1,225,386 906,042 Collaterali
First Business Financial Services — Q3 2026 Earnings Presentation on 6ix