First Business Financial Services, Inc. · NASDAQ:FBIZ
First Business Financial Services — Q3 2026 Earnings Presentation
42 slides from First Business Financial Services's earnings presentation, November 2026
Slide 1: Investor Presentation Third Quarter 2026
Investor Slide Title Presentation Date Third Quarter 2026 NASDAQ: FBIZ 1
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: Table of Contents
PAGE Investment Thesis 4 Who We Are 5 Quarterly Results 10 Table of Contents Why FBIZ? 14 Drivers of Growth and 21 Profitability Appendix 32
Slide 4: A Proven 10% Compounder With Multiple Sources of Durable Earnings
INVESTMENT THESIS A Proven 10% Compounder With Multiple Sources of Durable Earnings 12% 10% 13% 11% 16% Loans Core Deposits TBV/Share YTD EPS ROATCE 5-year 5-year 5-year 5-year Sept ’26 YTD CAGR CAGR CAGR CAGR Relationship-Funded Disciplined Resilient Earnings Growth Execution Model Through-cycle pe
Slide 5: First Business Bank: Who We Are
First Business Bank: Who We Are 5
Slide 6: First Business Bank at a Glance
MISSION First Business Bank’s unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver NASDAQ: FBIZ exceptional results for all stakeholders. $639 Million HEADQUARTERS MARKET CAP 1 Madison, WI FBIZ BUSINESS BANKING 2 We serve business
Slide 7: 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 FOCUSED SEGMENTS, SCALABLE INFRASTRUCTURE AND DEEP CLIENT RELATIONSHIPS 7
Slide 8: Five-Year Strategic Plan
Five-Year Strategic Plan 2024-2028 ULTIMATE GOAL: PRODUCE TOP-TIER TOTAL SHAREHOLDER RETURN AMONG PEERS FIVE STRATEGIES SUPPORT THIS EFFORT: FUTURE-READY TALENT OPERATIONAL EXCELLENCE Thrive in the workplace of the Improve efficiency and future enhance client experience 01 03 05 02 04 CULTURE DEPOSI
Slide 9: Goals & Progress
Goals & Progress STRATEGIC PLAN 2024-2028 We measure success against long-term goals: GOALS PROGRESS 2024‐2028 2024 2025 SEPT ‘26 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% 9.8% Efficiency Ratio1 <60%
Slide 10: Financial Performance
Financial Performance September 2026 10
Slide 11: Highlights
Highlights SEPTEMBER 2026 YTD Record EPS Core Deposits Loans +20% +15% +10% • Record YTD EPS of $5.24, +20% YOY • Core deposits +15% YOY • Loans +10% YOY • Record YTD PTPP Earnings1, +14% YOY • Core deposit funding mix improved to 76.7%, • CRE +10% YOY, C&I +10% YOY from 73.1% at 9/30/25 Net Interes
Slide 12: Financial Performance September 2026
Financial Performance TARGET = 10% Annual Growth 13% growth September 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
Slide 13: Asset Quality Update
Asset Quality Update STABLE OVERALL ASSET QUALITY; ISOLATED NPAS WITH STRONG COLLATERAL Reserves and NPL Coverage NPAs / Total Assets • Stable overall asset quality, with no 1.04X 1.20% 1.50% 1.00X 1.1X signs of systemic stress Allowance for Credit Losses as a % of Loans 1.0X • 3Q26 increase in NPAs
Slide 14: Why FBIZ?
Why FBIZ? 14
Slide 15: Our Historic & Ongoing Growth Supports Earnings Power
GROWING PROFITABILITY Our Historic & Ongoing Growth Supports Earnings Power 12% 10% 13% Loans Core Deposits TBV/Share 5-year 5-year 5-year CAGR CAGR CAGR Differentiated Loan Strong & Stable Growing Growth Capabilities Deposit Franchise Profitability Profile • History of consistent double- • Track re
Slide 16: Track Record of Superior Growth
Track Record of Superior Growth HISTORY OF DOUBLE-DIGIT LONG-TERM EPS GROWTH, OUTPERFORMING PEERS • History of double-digit annual FBIZ vs Peers growth reflects long-term YTD Earnings Per Share CAGR success in achieving: • Steady and consistent 20% 18% balance sheet expansion 18% • Diversified reven
Slide 17: 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 18: Shareholder Value Creation
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES $70 $60 $50 $40 $30 $20 $10 $0 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 25 Q3 26 TBV/Share Cumulative Div/Share Great Recession & Pandemic R
Slide 19: Total Shareholder Return Above Peer Group Median
Total Shareholder Return Above Peer Group Median DESPITE OUTPERFORMANCE, PRICE/LTM EPS REMAINS BELOW PEERS Total Shareholder Return1 Price / LTM EPS2 200% 13.0 180% 12.0 160% 140% 11.0 120% 100% 10.0 80% 9.0 60% 40% 8.0 20% 7.0 0% 1-Year TSR 3-Year TSR 5-Year TSR 6.0 P/LTM EPS FBIZ Peer Group Median
Slide 20: Total Shareholder Return Since IPO
Total Shareholder Return Since IPO OUTPERFORMED PRIMARY BANKING INDICES SINCE 2005 IPO Total Shareholder Return Monthly, October 2005 through September 2026, Monthly 800 775% 700 600 500 400 % 300 212% 200 199% 100 147% 84% 0 Apr-16 Apr-17 Apr-18 Apr-19 Oct-26 Oct-22 Oct-23 Oct-24 Oct-25 Apr-10 Apr-
Slide 21: Drivers of Growth & Profitability
Drivers of Growth & Profitability 21
Slide 22: 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 23: Diversified Lending Growth
Diversified Lending Growth CONTINUING TO GROW HIGHER-YIELDING C&I PORTFOLIO Growth in Higher-Yielding C&I Lending $1,600 9% 2021-2026 $1,400 5-Year Loan CAGR 8% C&I = 11% $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 24: Disciplined Interest Rate Risk Management
Disciplined Interest Rate Risk Management MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES Loan Loan Maturity Amount Funding Approach > 5 years > $5MM Individually match-funded METHODICAL APPROACH Portfolio match-funding in various terms < 5 years < $5MM against the fixed-rate
Slide 25: Match-Funded Balance Sheet Unique Among Peers
Match-Funded Balance Sheet Unique Among Peers Loan & Deposit Betas in Current Rate Cycle 3Q24–2Q26 FBIZ typically has a smaller variance between its loan and 60 deposit betas than peers due to its match-funding strategy 50 14.8pp variance 49.1 • Our loans reprice with the 40 market, and our SOFR-ind
Slide 26: Margin Strength Through Rate Cycles
Margin Strength Through Rate Cycles MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES 3.90% Net Interest Margin 3.70% 3.50% 3.30% 3.10% 2.90% 2.70% 2.50% 2018 2019 2020 2021 2022 2023 2024 2025 3Q26 YTD FBIZ Net Interest Margin Peer Median Net Interest Margin Linear (FBIZ Net In
Slide 27: Balanced and Steady Growth
Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue Operating Revenue1 +10% TTM Q3’26 vs TTM Q3’25 Highlights $200 • Continued strong revenue supported by: $180 • Robust loan and deposit growth • Strong and stable net interest margin $160 • Diverse sources of non‐interest income
Slide 28: Strong Business Banking Revenue Profile
Strong Business Banking Revenue Profile EFFICIENT REVENUE GROWTH AND DIVERSIFICATION DIFFERENTIATES FROM PEERS • 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 Noninterest Incom
Slide 29: 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 30: 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 31: 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 32: Appendix
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS 32
Slide 33: Diversified Lending Products
Diversified Lending Products S TRENGTH ACROS S OUR P RODUCTS AND GEOGRAP HIES DRIVES DOUBLE- DIGIT LOAN GROWTH Total Loan Breakdown Commercial Real Estate Breakdown C&I Breakdown by Product 1% 3% 12% 15% 31% 14% 38% 47% 4% 61% 43% 8% 23% CRE-OO CRE-NOO Construction and Land Dev Multi-family All othe
Slide 34: Commercial Real Estate Lending Product Profile
Commercial Real Estate Lending SUPERIOR TALENT WITH BUSINESS EXPERTISE BUILDING RELATIONSHIPS IN MIDWEST GEOGRAPHIC FOOTPRINT Product Profile • We originate loans secured by commercial real estate, including owner-occupied properties, non- Portfolio Analysis Gross Revenue owner-occupied facilities,
Slide 35: C&I Lending Product Profile
C&I Lending DIVERSIFIED COMMERCIAL PRODUCT OFFERINGS TARGET COMPANIES NATIONWIDE Increase reflects Product Profile elevated • Target small and Gross Revenue prepayment Portfolio Analysis fees medium companies in a $29 variety of industries $1,500 10.00% $28 • Financings typically $1,250 $28 range fr
Slide 36: Treasury Management Product Profile
Treasury Management SUPERIOR TALENT WITH BUSINESS EXPERTISE BUILDING RELATIONSHIPS IN MIDWEST GEOGRAPHIC FOOTPRINT Product Profile • Target small to medium- sized companies in our Wisconsin, Kansas, and Missouri markets Funding Mix Fee Revenue and Analyzed Charges • Comprehensive services $4,800 4.0
Slide 37: Private Wealth Management Product Profile
Private Wealth Management Product Profile WEALTH MANAGEMENT SERVICES FOR BUSINESSES, EXECUTIVES, AND HIGH NET • Investment manager for WORTH INDIVIDUALS individual and corporate clients, creating and executing asset allocation strategies tailored to each client’s unique situation Assets Under Manage
Slide 38: Exit from Out-of-Footprint SBA 7(a) Lending Completed in May 2026
Exit from Out-of-Footprint SBA 7(a) Lending Completed in May 2026 REDIRECTING RESOURCES TO MORE PROFITABLE GROWTH OPPORTUNITIES WHY? Expected 2027 Quarterly EPS Benefit • Economic returns did not meet internal targets; investments in SBA talent and capacity did not consistently produce adequate volu
Slide 39: 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
Slide 40: Capital Strength
Capital Strength • Regulatory capital ratios 9/30/25 12/31/25 03/31/26 06/30/26 09/30/26 remain solid including a Total Regulatory Capital $452,731 $463,447 $473,237 $486,735 $499,178 Total Capital Ratio of 12.25% and a Common Equity Tier 1 Total Risk-Weighted Assets $3,717,741 $3,786,460 $3,895,564
Slide 41: Non-GAAP Reconciliation: Net Operating Income
Non-GAAP Reconciliation Net Operating Income "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-t
Slide 42: Non-GAAP Reconciliation: Cost Of Funds
Non-GAAP Reconciliation Cost Of Funds ‘‘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
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