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  4. [8-K] FIRST BUSINESS FINANCIAL SERVICES, INC. Reports Material Event

First Business Financial Q3 profit hits record $16.4M

Core deposits grew faster than loans year over year as non-performing assets rose to $40.2 million.

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8-K

Rhea-AI Filing Summary

First Business Financial Services, Inc. reported record third-quarter net income available to common shareholders of $16.4 million, or $1.95 diluted EPS, up 15% from a year earlier. Adjusted pre-tax, pre-provision earnings were $21.3 million, up 13.1% year over year; nine-month EPS rose 20%.

At September 30, 2026, core deposits were $2.979 billion, up 14.9% year over year, while loans were $3.677 billion, up 10.2%. Net interest margin was 3.80%, versus 3.68% a year earlier. Non-performing assets reached $40.2 million, or 0.91% of total assets, from $23.5 million, or 0.58%; $22.7 million involved non-accrual loans tied to one southeast Wisconsin relationship.

Management expects fourth-quarter net interest margin to moderate from the third-quarter level while remaining above its 3.60%-3.65% long-term target range, and expects expenses to increase from the third-quarter level for planned investments. The board declared a $0.34-per-share common dividend, payable November 30, 2026, to holders of record November 12, 2026.

2 points · 0 major

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0 major · 1 point

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Positive

  • Moderate pointThird-quarter common earnings rose 15% year over year to $16.4 million.
  • Moderate pointNine-month diluted EPS increased 20% year over year to $5.24.

Negative

  • Moderate pointNon-performing assets rose 71% year over year to $40.2 million.

Filing Explained

The company reports repurchasing 41,058 common shares for about $2.9 million in total through October 23, under a board authorization capped at $5.0 million; the reported purchases are below the authorized maximum.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Net income available to common shareholders $16.4 million Third quarter 2026
Diluted EPS $1.95 Third quarter 2026
Adjusted pre-tax, pre-provision earnings $21.3 million Third quarter 2026
Net interest margin 3.80% Third quarter 2026
Total gross period-end loans and leases $3.677 billion September 30, 2026
Period-end core deposits $2.979 billion September 30, 2026
Non-performing assets $40.2 million September 30, 2026; 0.91% of total assets
Common-stock cash dividend $0.34 per share Declared October 29, 2026
Pre-tax, pre-provision adjusted earnings financial
"Pre-tax, pre-provision adjusted earnings grew to a record $21.3 million"
Net interest margin financial
"Net interest margin was 3.80%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Core deposits financial
"Core deposits increased by $101.3 million"
Core deposits are the stable, everyday customer balances a bank keeps—like checking and savings accounts and regular business deposits—that are unlikely to be withdrawn suddenly. Think of them as a household’s paycheck direct-deposits: predictable, low-cost funding the bank can rely on. For investors, a larger share of core deposits means steadier cash available, lower borrowing needs and interest expenses, and therefore more predictable earnings and lower risk.
Non-performing assets financial
"Non-performing assets increased $2.2 million"
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
Common equity tier I capital financial
"Common equity tier I ratio increasing to 9.65%"
Net income available to common shareholders $16.4 million Up 15% year over year
Diluted EPS $1.95 Up 15% year over year
Pre-tax, pre-provision adjusted earnings $21.3 million Up 13.1% year over year
Net interest margin 3.80% Up 12 basis points year over year
Guidance

Fourth-quarter net interest margin is expected to remain above the 3.60%-3.65% long-term target range while moderating from the third-quarter level. The full-year 2026 effective tax rate is expected to be between 13% and 15%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did FBIZ earn in the third quarter of 2026?
FBIZ reported third-quarter net income available to common shareholders of $16.4 million and diluted EPS of $1.95. Net income and diluted EPS each rose 15% year over year; adjusted pre-tax, pre-provision earnings were $21.3 million, up 13.1%.

What dividend did FBIZ declare, and when will it be paid?
The board declared a common-stock cash dividend of $0.34 per share, payable November 30, 2026, to shareholders of record November 12, 2026. It also declared a $17.50-per-share dividend on 7% Series A preferred stock, payable December 15, 2026, to holders of record November 30, 2026.

Why did FBIZ's non-performing assets increase?
The increase primarily reflected $22.7 million of commercial real estate non-accrual loans from a single southeast Wisconsin client relationship. The company reported non-performing assets of $40.2 million, or 0.91% of total assets, at September 30, 2026.

What is FBIZ's full-year 2026 effective tax rate outlook?
Management expects the full-year 2026 effective tax rate to be between 13% and 15%.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR Accepted by SEC EDGAR
0001521951false00015219512026-10-292026-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 29, 2026

 

 

First Business Financial Services, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Wisconsin

001-34095

39-1576570

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

401 Charmany Drive

 

Madison, Wisconsin

 

53719

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 608 238-8008

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, $0.01 par value

 

FBIZ

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2026, First Business Financial Services, Inc. (the “Company”) announced its earnings for the quarter ended September 30, 2026, as well as the declaration of a quarterly cash dividend on its common stock and 7% Series A preferred stock. A copy of the Company’s press release containing this information is being “furnished” as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

 

On October 29, 2026, the Company posted an earnings call presentation to its website www.firstbusiness.bank under the “Investor Relations” tab. The information included in the presentation provides an overview of the Company’s recent operating performance, financial condition, and business strategy. The Company intends to use this presentation in connection with its third quarter 2026 earnings call to be held at 8:00 a.m. Central time on October 30, 2026, and from time to time when the Company's executives interact with shareholders, analysts, and other third parties. A copy of the registrant’s presentation is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information in Items 2.02 and 7.01 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

 

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are being “furnished” as part of this Current Report on Form 8-K:

 99.1

Press release of the registrant dated October 29, 2026, containing financial information for its quarter ended September 30, 2026.

 99.2

Supplemental earnings call slides

 

 104

Cover Page Interactive Data File (embedded within the Inline XBRL Document)

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

October 29, 2026

FIRST BUSINESS FINANCIAL SERVICES, INC.

By:

/s/ Brian D. Spielmann

Name:

Brian D. Spielmann

Title:

Chief Financial Officer

 

Exhibit 99.1

 

 

FIRST BUSINESS BANK REPORTS RECORD THIRD QUARTER EARNINGS

-- Core deposit growth outpaces robust loan growth; positive operating leverage drives further tangible book value growth --

 

MADISON, Wis., October 29, 2026 (BUSINESS WIRE) -- First Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq: FBIZ) reported quarterly net income available to common shareholders of $16.4 million, or earnings per share ("EPS") of $1.95. This compares to net income available to common shareholders of $15.4 million, or $1.84 per share, in the second quarter of 2026 and $14.2 million, or $1.70 per share, in the third quarter of 2025.

 

“Our record third quarter results reflect strong execution across First Business Bank’s relationship-based model,” said Dave Seiler, President and Chief Executive Officer. “Annualized loan growth of approximately 10% was more than fully funded by 14% annualized core deposit growth, while a strong net interest margin and disciplined expense management drove record pre-tax, pre-provision earnings. Through the first nine months of 2026, earnings per share increased 20%, pre-tax, pre-provision earnings increased 14%, and tangible book value per share grew 13% from the prior year.”

“We expect expenses to increase from the third-quarter level as we make planned investments in talent, marketing, technology, and infrastructure to support continued growth. These investments are integral to our long-term model of approximately 10% annual balance sheet growth and positive annual operating leverage. We believe consistent execution of our strategic plan, together with disciplined credit and capital management, will continue to compound earnings and tangible book value per share and support strong long-term profitability.”

 

 

Quarterly Highlights

 

•
Record Earnings and Pre-Tax, Pre-Provision ("PTPP") Growth. Net income available to common shareholders reached a record $16.4 million, or $1.95 per diluted share. PTPP adjusted earnings grew to a record $21.3 million, up 7.6% and 13.1% from the linked and prior-year quarters, respectively.
•
Relationship-Based Deposit Growth Funded Loan Expansion. Core deposits increased by $101.3 million, or 14.1% annualized, from the linked quarter and $386.8 million, or 14.9%, from the prior-year quarter, outpacing loan growth in both periods. Core deposits improved to 76.7% of total bank funding, allowing wholesale funding to decline by $103.1 million.
•
Continued Loan Growth. Loans increased $88.6 million, or 9.9% annualized, from the linked quarter and $340.2 million, or 10.2%, from the third quarter of 2025.
•
Strong Net Interest Margin. Net interest margin was 3.80%, compared to 3.78% for the linked quarter and 3.68% for the prior-year quarter. The modest linked improvement was primarily driven by favorable loan yields and an improved funding mix. Net interest margin was 3.72% and 3.68% for the first nine months of 2026 and 2025, respectively. Elevated fees in lieu of interest continued to support the year-over-year comparison.
•
SBA Exit Improves Operating Efficiency. Operating expenses declined $706,000, or 2.6%, from the linked quarter, primarily due to lower SBA-related compensation costs. The Company expects annual operating leverage to remain modest but positive.
•
Strong Value Creation. Through the first nine months of 2026, operating revenue increased 9.8% while operating expense increased 6.8%, driving a 14.2% increase in pre-tax, pre-provision earnings and 20% EPS growth. Tangible book value per share increased 10.5% annualized from the linked quarter and 13.4% from the prior year.

 

 

1

 

Quarterly Financial Results

 

(Unaudited)

 

As of and for the Three Months Ended

 

As of and for the Nine Months Ended

(Dollars in thousands, except per share amounts)

 

September 30,
2026

 

June 30,
2026

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Net interest income

 

$39,078

 

$38,142

 

$34,886

 

$112,738

 

$101,928

Adjusted non-interest income (1)

 

8,429

 

8,569

 

9,406

 

25,773

 

24,241

Operating revenue (1)

 

47,507

 

46,711

 

44,292

 

138,511

 

126,169

Operating expense (1)

 

26,186

 

26,892

 

25,440

 

80,159

 

75,081

Pre-tax, pre-provision adjusted earnings (1)

 

21,321

 

19,819

 

18,852

 

58,352

 

51,088

Less:

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

1,943

 

2,066

 

1,440

 

6,969

 

6,800

Loss on repossessed assets

 

—

 

—

 

31

 

—

 

27

Contribution to First Business Charitable Foundation

 

—

 

—

 

234

 

—

 

234

SBA recourse benefit

 

(381)

 

—

 

(5)

 

(502)

 

(64)

Impairment of tax credit investments

 

300

 

552

 

—

 

845

 

110

SBA severance expense

 

—

 

405

 

—

 

405

 

—

Add:

 

 

 

 

 

 

 

 

 

 

Bank-owned life insurance claim

 

—

 

—

 

234

 

—

 

234

Income before income tax expense

 

19,459

 

16,796

 

17,386

 

50,635

 

44,215

Income tax expense

 

2,887

 

1,216

 

2,993

 

6,283

 

7,229

Net income

 

$16,572

 

$15,580

 

$14,393

 

$44,352

 

$36,986

Preferred stock dividends

 

218

 

219

 

218

 

656

 

656

Net income available to common shareholders

 

$16,354

 

$15,361

 

$14,175

 

$43,696

 

$36,330

Earnings per share, diluted

 

$1.95

 

$1.84

 

$1.70

 

$5.24

 

$4.37

Book value per share

 

$46.98

 

$45.81

 

$41.60

 

$46.98

 

$41.60

Tangible book value per share (1)

 

$45.56

 

$44.38

 

$40.16

 

$45.56

 

$40.16

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

3.80%

 

3.78%

 

3.68%

 

3.72%

 

3.68%

Fee income ratio (non-interest income / total revenue)

 

17.74%

 

18.34%

 

21.65%

 

18.61%

 

19.36%

Efficiency ratio (1)

 

55.12%

 

57.57%

 

57.44%

 

57.87%

 

59.51%

Return on average assets (2)

 

1.49%

 

1.43%

 

1.40%

 

1.35%

 

1.23%

Return on average tangible common equity (1)(2)

 

17.32%

 

16.89%

 

17.29%

 

15.96%

 

15.23%

 

 

 

 

 

 

 

 

 

 

 

Period-end loans and leases receivable

 

$3,673,817

 

$3,585,615

 

$3,334,956

 

$3,673,817

 

$3,334,956

Average loans and leases receivable

 

$3,616,390

 

$3,550,415

 

$3,295,880

 

$3,531,550

 

$3,240,908

Period-end core deposits

 

$2,978,957

 

$2,877,675

 

$2,592,110

 

$2,978,957

 

$2,592,110

Average core deposits

 

$2,942,234

 

$2,860,053

 

$2,597,031

 

$2,883,973

 

$2,453,005

Allowance for credit losses, including unfunded commitment reserves

 

$38,849

 

$39,517

 

$38,382

 

$38,849

 

$38,382

Non-performing assets

 

$40,240

 

$38,062

 

$23,513

 

$40,240

 

$23,513

Allowance for credit losses as a percent of total gross loans and leases

 

1.06%

 

1.10%

 

1.15%

 

1.06%

 

1.15%

Non-performing assets as a percent of total assets

 

0.91%

 

0.86%

 

0.58%

 

0.91%

 

0.58%

 

1.
This is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate financial performance, provide greater understanding of ongoing operations, and enhance comparability of results with prior periods. See the section titled Non-GAAP Reconciliations at the end of this release for a reconciliation of GAAP financial measures to non-GAAP financial measures.
2.
Calculation is annualized.

2

 

Third Quarter 2026 Compared to Second Quarter 2026

Net interest income increased $936,000, or 2.5%, to $39.1 million.

•
Net interest income increased as average loans and leases receivable grew by $66.0 million, or 7.4% annualized during the third quarter. This increase was partially offset by a $193,000 decrease in prepayment fees.
•
The yield on average interest-earning assets increased 2 basis points to 6.47% from 6.45%.
•
The rate paid for average core deposits was stable at 2.41% compared to 2.40%, and the rate paid on average total bank funding was stable at 2.76% compared to 2.75%. Total bank funding includes total deposits and Federal Home Loan Bank (“FHLB”) advances.
•
Net interest margin increased to 3.80% from 3.78% in the linked quarter. The linked-quarter increase reflected more favorable loan yields and deposit mix, including growth in non-interest-bearing demand deposits, as well as a modest favorable day-count impact. These benefits more than offset lower prepayment and asset-based loan fees. While net interest margin is expected to remain above the Company’s long-term target range of 3.60% to 3.65% during the fourth quarter, it is expected to moderate from the third-quarter level as fee income normalizes. The Company continues to view 3.60% to 3.65% as an appropriate long-term range.

The Bank reported provision for credit losses of $1.9 million compared to $2.1 million in the linked quarter. Compared to the linked quarter, the provision for credit losses was lower primarily due to a smaller increase in quantitative factors and lower loan growth, partially offset by higher net charge-offs. See the Provision for Credit Loss breakdown table below for more detail.

Non-interest income decreased $140,000, or 1.6%, to $8.4 million.

•
Commercial loan swap fee income increased $393,000, or 242.6%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
•
Other non-interest income decreased $494,000 to $1.0 million, primarily due to a decrease in limited partnership investment income.

Non-interest expense decreased $1.7 million, or 6.3%, to $26.1 million, while operating expense decreased $706,000, or 2.6%, to $26.2 million. Third-quarter operating expense primarily benefited from lower compensation expense due to our exit from out-of-market SBA 7(a) lending. We expect the operating expense run rate to increase from the third-quarter level, primarily reflecting investments in talent, technology, and marketing initiatives. These investments are intended to expand the Company’s capacity for sustained growth. While quarterly comparisons may vary, the company continues to expect modest positive operating leverage annually.

 

3

 

•
Compensation expense was $17.8 million, decreasing by $693,000, or 3.8% from the linked quarter. The decrease was primarily driven by lower salaries and benefits expense and linked quarter severance expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. This decrease was partially offset by higher annual cash bonus accruals reflecting above-target Company performance. Average full-time equivalents ("FTEs") for the third quarter were 352, compared to 366 in the linked quarter. Excluding SBA employees, average FTEs were 351 for the third quarter compared to 354 in the linked quarter.
•
Other non-interest expense decreased $656,000 to $1.2 million, primarily due to an SBA recourse provision benefit and changes in carrying values on historic tax credit investments.
•
Professional fees expense decreased $204,000, or 13.7%, to $1.3 million, primarily reflecting annual stock awards issued to directors in the second quarter.
•
FDIC insurance expense decreased $123,000, or 15.0%, to $696,000, due to improved leverage and brokered deposit ratios.
•
Marketing expense decreased $105,000, or 12.5%, to $735,000, due to timing of marketing programs and a reduction in sponsorship activity.

Income tax expense increased $1.7 million to $2.9 million. The effective tax rate was 14.8% for the three months ended September 30, 2026, compared to 7.2% for the linked quarter. The change in tax expense primarily reflects the release of a state deferred tax valuation allowance in the linked quarter and higher pre-tax income in the current quarter. The Company expects to report a full year 2026 effective tax rate between 13% and 15%.

Total gross period-end loans and leases receivable increased $88.6 million, or 9.9% annualized, to $3.677 billion. The average rate earned on average loans and leases receivable was 6.79%, up from 6.76% in the linked quarter.

•
CRE loans increased $77.2 million, or 14.3% annualized, to $2.239 billion, primarily due to growth in the Wisconsin markets.
•
C&I loans increased $9.4 million, or 2.7% annualized, to $1.390 billion, primarily due to growth in Floorplan Financing.

Total period-end core deposits increased $101.3 million, or 14.1% annualized, to $2.979 billion, reflecting broad-based growth across our markets. The average rate paid was stable at 2.41% compared to 2.40% in the linked quarter.

Period-end wholesale funding, including FHLB advances and brokered deposits, decreased $103.1 million, or 10.24%, to $903.3 million. Wholesale funding continues to support interest rate risk management through match-funding of fixed-rate assets, enhancing funding flexibility, and stabilizing net interest margin.

•
Wholesale deposits increased $56.3 million to $770.8 million. The average rate paid on wholesale deposits increased four basis points to 4.07% and the weighted average original maturity increased to 4.0 years from 3.3 years.
•
FHLB advances decreased $159.4 million to $132.5 million. The average rate paid on FHLB advances increased two basis points to 3.55% and the weighted average original maturity remained flat at 6.0 years.

Nonperforming assets increased $2.2 million to $40.2 million, or 0.91% of total assets, compared with 0.86% in the linked quarter, primarily reflecting a new non-accrual multifamily loan associated with the previously disclosed Wisconsin relationship. This increase was partially offset by the charge-off of fully reserved C&I non-accrual loans. The Wisconsin relationship represented $22.7 million of non-accrual loans, collateralized by commercial real estate, with $416,000 of reserves at September 30, 2026. Year-to-date net charge-offs remained stable at 0.22% of average loans compared with 0.23% in the prior-year period.

The allowance for credit losses, including the unfunded credit commitments reserve, decreased $668,000, or 1.7%, primarily due to charge-offs of previously reserved loans and leases and a decrease in qualitative factors partially offset by increases in general reserves primarily due to loan growth and a modest decline in the economic outlook in our model forecast. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.06%, compared to 1.10% in the linked quarter.

4

 

Strong internal capital generation continued to support growth, with the common equity Tier 1 ratio increasing to 9.65% and the tangible common equity ratio increasing to 8.59%. The company believes its earnings capacity and capital position support its long-term balance-sheet growth objectives while continuing to build tangible book value per share.

Third Quarter 2026 Compared to Third Quarter 2025

Net interest income increased $4.2 million, or 12.0%, to $39.1 million.

•
Net interest income growth reflects a 9.72% increase in average gross loans and leases, a $450,000 increase in prepayment fees, and a $407,000 increase in asset-based loan fees.
•
The yield on average interest-earning assets decreased 25 basis points to 6.47% from 6.72%. This decrease in yield was primarily due to the decrease in short-term market rates, partially offset by an increase in prepayment fees and asset-based loan fees. The interest-earning asset beta was 39.2%.
•
The rate paid for average core deposits decreased 48 basis points to 2.41% from 2.89%. The rate paid for average total bank funding decreased 38 basis points to 2.76% from 3.14%. The core deposit and total bank funding betas compared to the prior year were 76.2% and 60.3%, respectively.
•
Net interest margin increased 12 basis points to 3.80% from 3.68%.

The Company reported provision for credit losses of $1.9 million, compared to $1.4 million in the third quarter of 2025. See the Provision for Credit Loss breakdown table below for more detail.

Non-interest income decreased $1.2 million, or 12.6%, to $8.4 million. Excluding gain on sale of SBA loans, non-interest income decreased $830,000, or 9.0%.

•
Other non-interest income decreased $945,000, or 47.7%, to $1.0 million, primarily driven by higher returns on the Company’s investments in limited partnerships in the prior year quarter and $537,000 of non-recurring fee income in accounts receivable financing in the prior year quarter.
•
Commercial loan swap fee income decreased $419,000, or 43.0%, to $555,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
•
Gain on sale of SBA loans decreased $382,000 due to management's decision to hold for investment any existing and new SBA 7(a) loans.
•
Private wealth fee income increased $488,000, or 13.2%, to $4.2 million. Private wealth assets under management and administration measured $4.227 billion at September 30, 2026, up $413.0 million, or 10.8%. Fee income is primarily based on asset levels and may vary based on seasonal activity and the timing of fluctuations in market values.
•
Service charges on deposits increased $258,000, or 22.4%, to $1.4 million, primarily driven by new and expanded core deposit relationships. Treasury management gross analyzed service charges increased $276,000, or 15.6%.

Non-interest expense increased $405,000, or 1.6%, to $26.1 million. Operating expense increased $746,000 or 2.9%, to $26.2 million.

 

5

 

•
Compensation expense increased $327,000, or 1.9%, to $17.8 million. Growth reflects annual merit increases and promotions as well as higher annual cash bonus accruals reflecting above-target Company performance. These increases were partially offset by lower salaries and benefits expense related to the Company's strategic exit from out of market SBA 7(a) lending activities. Average FTEs decreased 3.8% to 352 in the third quarter of 2026, compared to 366 in the third quarter of 2025. Excluding SBA employees, average FTEs were 351 in the current quarter compared to 345 in the third quarter of 2025.
•
Other non-interest expense decreased $532,000, or 31.6% to $1.2 million, primarily due to a decrease in SBA recourse reserves.
•
Data processing expense increased $366,000, or 32.6%, to $1.5 million, primarily due to an increase in core processing costs associated with core deposit growth and an increase in credit card transactions.
•
Professional fees expense increased $218,000, or 20.4%, to $1.3 million, primarily due to an increase in recruiting expense, directors' fees, and miscellaneous legal and regulatory fees.
•
Computer software expense increased $237,000, or 13.0%, to $2.1 million, primarily due to the Company's commitment to innovative technology to support growth initiatives, enhance productivity, and improve the client experience.

Total gross period-end loans and leases receivable increased $340.2 million, or 10.2%, to $3.677 billion. The average yield decreased 31 basis points to 6.79%, primarily due to a decrease in short-term market rates.

•
CRE loans increased $211.8 million, or 10.4%, to $2.239 billion, primarily due to growth throughout our Wisconsin and Kansas City markets.
•
C&I loans increased $125.7 million, or 9.9%, to $1.390 billion, primarily due to growth across the Bank's markets and in asset-based lending, floorplan financing, and accounts receivable financing.

Total period-end core deposits grew $386.8 million, or 14.9%, to $2.979 billion. The average rate paid decreased 48 basis points to 2.41%, reflecting a decrease in short-term market rates.

Period-end wholesale funding decreased $49.5 million, or 5.2%, to $903.3 million.

•
Wholesale deposits increased $29.9 million, or 4.0%, to $770.8 million. The average rate paid on wholesale deposits decreased four basis points to 4.07% and the weighted average original maturity decreased to 4.0 years from 4.3 years.
•
FHLB advances decreased $79.3 million, or 37.5%, to $132.5 million. The average rate paid on FHLB advances increased 39 basis points to 3.55% and the weighted average original maturity increased to 6.0 years from 5.3 years.

Non-performing assets increased to $40.2 million, or 0.91% of total assets, from $23.5 million, or 0.58% of total assets, primarily reflecting $22.7 million of CRE non-accrual loans from a single southeast Wisconsin client relationship, partially offset by paydowns on SBA non-accrual loans and lower non-accrual balances from Equipment Finance loans and leases.

The allowance for credit losses, including unfunded commitment reserves, increased $467,000 to $38.8 million primarily due to higher general reserves as a result of loan growth and quantitative factors, partially offset by lower specific reserves and lower qualitative factors. The allowance for credit losses as a percent of total gross loans and leases was 1.06%, compared to 1.15% in the prior year.

Share Repurchase Program Update

As previously announced, on April 26, 2024, the Company's Board of Directors authorized the repurchase by the Company of shares of its common stock with a maximum aggregate purchase price of $5.0 million. As of September 30, 2026, the Company had repurchased a total of 12,000 shares for approximately $835,000 at an average cost of $69.55 per share. The Company repurchased another 29,058 shares from October 1 through October 23, 2026. In total, the Company repurchased 41,058 shares for approximately $2.9 million at an average price of $69.70 per share.

 

6

 

 

Dividend Announced

On October 29, 2026, the Company's Board of Directors declared a quarterly cash dividend on its common stock of $0.34 per share, which is equivalent to a dividend yield of 1.87% based on the market close price of $72.75 on Wednesday, October 28, 2026. The quarterly dividend is the same as the quarterly dividend declared in July 2026, and based on third quarter 2026 earnings per share, this represents a dividend payout ratio of 17%. This regular cash dividend is payable on November 30, 2026, to shareholders of record at the close of business on November 12, 2026.

The Board of Directors also declared a dividend on the Company’s 7% Series A Preferred Stock of $17.50 per share, payable on December 15, 2026, to shareholders of record on November 30, 2026.

Earnings Release Supplement and Conference Call

On October 29, 2026, the Company posted an earnings release supplement to its website firstbusiness.bank under the “Investor Relations” tab which will also be furnished to the U.S. Securities and Exchange Commission on October 29, 2026. The information included in the supplement provides an overview of the Company’s recent operating performance, financial condition, and other data relevant to the quarter. The Company intends to use this supplement in connection with its third quarter 2026 earnings call to be held at 8:00 a.m. Central Time on October 30, 2026. The conference call can be accessed at 833-461-5787 (585-542-9983 if outside the United States and Canada), using the conference call access code: FBIZ, 650767981. Investors may also listen live via webcast at: https://events.q4inc.com/attendee/650767981. The webcast archive of the conference call will be available on the Company’s website, ir.firstbusiness.bank.

About First Business Bank

First Business Bank® specializes in Business Banking, including Commercial Banking and Specialty Finance, Private Wealth, and Bank Consulting services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty Finance solutions are delivered through First Business Bank’s wholly owned subsidiary First Business Specialty Finance, LLC®. First Business Bank is a wholly owned subsidiary of First Business Financial Services, Inc®. (Nasdaq: FBIZ). For additional information, visit firstbusiness.bank.

This release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect First Business Bank’s current views with respect to future events and financial performance. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results, or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. Such statements are subject to risks and uncertainties, including among other things:

•
Adverse changes in the economy or business conditions, either nationally or in our markets including, without limitation, inflation, economic downturn, labor shortages, wage pressures, the adverse effects of public health events on the global, national, and local economy, and geopolitical instability and international conflicts that may affect energy prices or otherwise result in market volatility.
•
Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, prolonged shutdown of the federal government, and other significant policy matters.
•
Competitive pressures among depository and other financial institutions nationally and in the Company’s markets.
•
Increases in defaults by borrowers and other delinquencies.
•
Management’s ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems.

7

 

•
Fluctuations in interest rates and market prices.
•
Changes in legislative or regulatory requirements applicable to the Company and its subsidiaries.
•
Changes in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations.
•
Fraud, including client and system failure or breaches of our network security, including the Company’s internet banking activities.
•
Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans.
•
Ongoing volatility in the banking sector may result in new legislation, regulations or policy changes that could subject the Company and the Bank to increased government regulation and supervision.
•
The proportion of the Company’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk.
•
Increases in FDIC insurance assessments.

 

For further information about the factors that could affect the Company’s future results, please see the Company’s annual report on Form 10-K for the year ended December 31, 2025, and other filings with the Securities and Exchange Commission.

 

CONTACT:

 

First Business Financial Services, Inc.

 

 

Brian D. Spielmann

 

 

Chief Financial Officer

 

 

608-232-5977

 

 

bspielmann@firstbusiness.bank

 

8

 

SELECTED FINANCIAL CONDITION DATA

 

(Unaudited)

 

As of

(in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$92,277

 

$163,358

 

$137,125

 

$39,485

 

$44,349

Securities available-for-sale, at fair value

 

398,807

 

409,692

 

420,325

 

422,087

 

411,111

Securities held-to-maturity, at amortized cost

 

4,546

 

4,674

 

4,797

 

5,210

 

5,584

Loans held for sale

 

—

 

—

 

23,700

 

18,849

 

13,482

Loans and leases receivable

 

3,673,817

 

3,585,615

 

3,498,903

 

3,373,241

 

3,334,956

Allowance for credit losses

 

(36,541)

 

(37,393)

 

(36,631)

 

(35,877)

 

(36,690)

Loans and leases receivable, net

 

3,637,276

 

3,548,222

 

3,462,272

 

3,337,364

 

3,298,266

Premises and equipment, net

 

4,346

 

4,328

 

4,500

 

4,669

 

4,936

Right-of-use assets

 

4,517

 

4,787

 

5,053

 

5,317

 

5,577

Bank-owned life insurance

 

86,318

 

85,533

 

84,776

 

83,994

 

83,255

Federal Home Loan Bank stock, at cost

 

5,979

 

13,173

 

11,242

 

8,940

 

9,605

Goodwill and other intangible assets

 

11,833

 

11,933

 

12,011

 

11,985

 

12,041

Derivatives

 

78,574

 

45,827

 

38,198

 

36,515

 

37,634

Accrued interest receivable and other assets

 

119,799

 

118,477

 

116,856

 

107,472

 

109,005

Total assets

 

$4,444,272

 

$4,410,004

 

$4,320,855

 

$4,081,887

 

$4,034,845

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

Core deposits

 

$2,978,957

 

$2,877,675

 

$2,796,059

 

$2,673,003

 

$2,592,110

Wholesale deposits

 

770,816

 

714,490

 

769,943

 

707,412

 

740,961

Total deposits

 

3,749,773

 

3,592,165

 

3,566,002

 

3,380,415

 

3,333,071

Federal Home Loan Bank advances and
   other borrowings

 

187,393

 

346,794

 

303,451

 

252,051

 

266,677

Lease liabilities

 

6,355

 

6,698

 

7,032

 

7,361

 

7,687

Derivatives

 

63,513

 

39,733

 

35,857

 

36,926

 

38,726

Accrued interest payable and other liabilities

 

32,634

 

29,307

 

28,433

 

33,549

 

30,365

Total liabilities

 

4,039,668

 

4,014,697

 

3,940,775

 

3,710,302

 

3,676,526

Total stockholders’ equity

 

404,604

 

395,307

 

380,080

 

371,585

 

358,319

Total liabilities and stockholders’ equity

 

$4,444,272

 

$4,410,004

 

$4,320,855

 

$4,081,887

 

$4,034,845

 

9

 

STATEMENTS OF INCOME

 

(Unaudited)

 

As of and for the Three Months Ended

 

As of and for the Nine Months Ended

(Dollars in thousands, except per share amounts)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Total interest income

 

$66,525

 

$65,021

 

$61,896

 

$62,752

 

$63,746

 

$193,442

 

$184,558

Total interest expense

 

27,447

 

26,879

 

26,378

 

27,990

 

28,860

 

80,704

 

82,630

Net interest income

 

39,078

 

38,142

 

35,518

 

34,762

 

34,886

 

112,738

 

101,928

Provision for credit losses

 

1,943

 

2,066

 

2,960

 

1,855

 

1,440

 

6,969

 

6,800

Net interest income after provision for credit losses

 

37,135

 

36,076

 

32,558

 

32,907

 

33,446

 

105,769

 

95,128

Private wealth management service fees

 

4,175

 

4,257

 

3,877

 

3,788

 

3,687

 

12,309

 

10,928

Gain on sale of SBA loans

 

—

 

—

 

592

 

140

 

382

 

592

 

1,742

Service charges on deposits

 

1,409

 

1,336

 

1,318

 

1,188

 

1,151

 

4,063

 

3,303

Loan fees

 

470

 

528

 

436

 

410

 

501

 

1,434

 

1,313

Bank owned life insurance income

 

785

 

757

 

757

 

739

 

965

 

2,299

 

2,016

Swap fees

 

555

 

162

 

628

 

738

 

974

 

1,345

 

1,257

Other non-interest income

 

1,035

 

1,529

 

1,167

 

458

 

1,980

 

3,731

 

3,916

Total non-interest income

 

8,429

 

8,569

 

8,775

 

7,461

 

9,640

 

25,773

 

24,475

Compensation

 

17,769

 

18,462

 

18,541

 

17,151

 

17,442

 

54,772

 

50,723

Occupancy

 

594

 

638

 

588

 

581

 

567

 

1,820

 

1,721

Professional fees

 

1,289

 

1,493

 

1,446

 

1,001

 

1,071

 

4,228

 

4,016

Data processing

 

1,489

 

1,482

 

1,270

 

1,158

 

1,123

 

4,241

 

3,574

Marketing

 

735

 

840

 

711

 

938

 

876

 

2,286

 

2,906

Equipment

 

320

 

351

 

407

 

374

 

296

 

1,078

 

1,007

Computer software

 

2,063

 

1,958

 

1,921

 

1,902

 

1,826

 

5,942

 

5,085

FDIC insurance

 

696

 

819

 

909

 

800

 

817

 

2,424

 

2,432

Other non-interest expense

 

1,150

 

1,806

 

1,160

 

225

 

1,682

 

4,116

 

3,924

Total non-interest expense

 

26,105

 

27,849

 

26,953

 

24,130

 

25,700

 

80,907

 

75,388

Income before income tax expense

 

19,459

 

16,796

 

14,380

 

16,238

 

17,386

 

50,635

 

44,215

Income tax expense

 

2,887

 

1,216

 

2,180

 

2,905

 

2,993

 

6,283

 

7,229

Net income

 

$16,572

 

$15,580

 

$12,200

 

$13,333

 

$14,393

 

$44,352

 

$36,986

Preferred stock dividends

 

218

 

219

 

219

 

219

 

218

 

656

 

656

Net income available to common shareholders

 

$16,354

 

$15,361

 

$11,981

 

$13,114

 

$14,175

 

$43,696

 

$36,330

Per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$1.95

 

$1.84

 

$1.44

 

$1.58

 

$1.70

 

$5.24

 

$4.37

Diluted earnings

 

1.95

 

1.84

 

1.44

 

1.58

 

1.70

 

$5.24

 

$4.37

Dividends declared

 

0.34

 

0.34

 

0.34

 

0.29

 

0.29

 

$1.02

 

$0.87

Book value

 

46.98

 

45.81

 

44.12

 

43.19

 

41.60

 

$46.98

 

$41.60

Tangible book value

 

45.56

 

44.38

 

42.68

 

41.75

 

40.16

 

$45.56

 

$40.16

Weighted-average common shares
   outstanding(1)

 

8,245,915

 

8,208,002

 

8,186,174

 

8,173,059

 

8,171,404

 

8,209,475

 

8,153,181

Weighted-average diluted common
   shares outstanding(1)

 

8,245,915

 

8,208,002

 

8,186,174

 

8,173,059

 

8,171,404

 

8,209,475

 

8,153,181
(1)
Excluding participating securities.

10

 

NET INTEREST INCOME ANALYSIS

 

(Unaudited)

 

For the Three Months Ended

(Dollars in thousands)

 

September 30, 2026

 

June 30, 2026

 

September 30, 2025

 

Average
Balance

 

Interest

 

Average
Yield/Rate(4)

 

Average
Balance

 

Interest

 

Average
Yield/Rate(4)

 

Average
Balance

 

Interest

 

Average
Yield/Rate(4)

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate and
   other mortgage loans(1)

 

$2,192,127

 

$33,226

 

6.06%

 

$2,137,098

 

$31,660

 

5.93%

 

$1,986,541

 

$31,819

 

6.41%

Commercial and industrial
   loans(1)

 

1,371,801

 

27,426

 

8.00

 

1,364,594

 

27,594

 

8.09

 

1,259,448

 

26,009

 

8.26

Consumer and other loans(1)

 

52,462

 

726

 

5.54

 

48,723

 

756

 

6.21

 

49,891

 

672

 

5.39

Total loans and leases
   receivable(1)

 

3,616,390

 

61,378

 

6.79

 

3,550,415

 

60,010

 

6.76

 

3,295,880

 

58,500

 

7.10

Mortgage-related securities(2)

 

368,080

 

3,933

 

4.27

 

372,462

 

3,941

 

4.23

 

350,971

 

3,745

 

4.27

Other investment securities(3)

 

47,864

 

278

 

2.32

 

48,679

 

279

 

2.29

 

47,367

 

266

 

2.25

FHLB stock

 

12,171

 

302

 

9.93

 

14,799

 

338

 

9.14

 

9,420

 

225

 

9.55

Short-term investments

 

66,650

 

634

 

3.80

 

46,681

 

453

 

3.88

 

90,852

 

1,010

 

4.45

Total interest-earning assets

 

4,111,155

 

66,525

 

6.47

 

4,033,036

 

65,021

 

6.45

 

3,794,490

 

63,746

 

6.72

Goodwill and other intangible assets

 

11,889

 

 

 

 

 

11,972

 

 

 

 

 

12,056

 

 

 

 

Non-interest-earning assets

 

265,136

 

 

 

 

 

250,531

 

 

 

 

 

236,970

 

 

 

 

Total assets

 

$4,388,180

 

 

 

 

 

$4,295,539

 

 

 

 

 

$4,043,516

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction accounts

 

$1,289,029

 

8,707

 

2.70%

 

$1,279,116

 

$8,556

 

2.68%

 

$1,050,822

 

$8,809

 

3.35%

Money market

 

974,724

 

7,043

 

2.89

 

931,051

 

6,488

 

2.79

 

851,659

 

7,183

 

3.37

Certificates of deposit

 

221,669

 

1,960

 

3.54

 

235,510

 

2,109

 

3.58

 

278,191

 

2,751

 

3.96

Wholesale deposits

 

634,759

 

6,458

 

4.07

 

590,739

 

5,952

 

4.03

 

754,690

 

7,595

 

4.03

Total interest-bearing
   deposits

 

3,120,181

 

24,168

 

3.10

 

3,036,416

 

23,105

 

3.04

 

2,935,362

 

26,338

 

3.59

FHLB advances

 

269,888

 

2,394

 

3.55

 

327,915

 

2,891

 

3.53

 

207,762

 

1,639

 

3.16

Other borrowings

 

54,876

 

885

 

6.45

 

54,846

 

883

 

6.44

 

54,761

 

883

 

6.45

Total interest-bearing
   liabilities

 

3,444,945

 

27,447

 

3.19

 

3,419,177

 

26,879

 

3.14

 

3,197,885

 

28,860

 

3.61

Non-interest-bearing demand
   deposit accounts

 

456,812

 

 

 

 

 

414,376

 

 

 

 

 

416,359

 

 

 

 

Other non-interest-bearing
   liabilities

 

84,817

 

 

 

 

 

74,188

 

 

 

 

 

77,300

 

 

 

 

Total liabilities

 

3,986,574

 

 

 

 

 

3,907,741

 

 

 

 

 

3,691,544

 

 

 

 

Common stockholders' equity

 

389,614

 

 

 

 

 

375,806

 

 

 

 

 

339,980

 

 

 

 

Preferred stock

 

11,992

 

 

 

 

 

11,992

 

 

 

 

 

11,992

 

 

 

 

Total stockholders’ equity

 

401,606

 

 

 

 

 

387,798

 

 

 

 

 

351,972

 

 

 

 

Total liabilities and
   stockholders’ equity

 

$4,388,180

 

 

 

 

 

$4,295,539

 

 

 

 

 

$4,043,516

 

 

 

 

Net interest income

 

 

 

$39,078

 

 

 

 

 

$38,142

 

 

 

 

 

$34,886

 

 

Interest rate spread

 

 

 

 

 

3.29%

 

 

 

 

 

3.30%

 

 

 

 

 

3.11%

Net interest-earning assets

 

$666,210

 

 

 

 

 

$613,859

 

 

 

 

 

$596,605

 

 

 

 

Net interest margin

 

 

 

 

 

3.80%

 

 

 

 

 

3.78%

 

 

 

 

 

3.68%

 

(1)
The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.
(2)
Includes amortized cost basis of assets available for sale and held to maturity.
(3)
Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.
(4)
Represents annualized yields/rates.

11

 

BETA ANALYSIS

 

For the Three Months Ended

(Unaudited)

 

September 30, 2026

 

September 30, 2025

 

 

 

Average Yield/Rate(3)

 

Average Yield/Rate(3)

 

Increase (Decrease)

Total loans and leases
   receivable (a)

 

6.79%

 

7.10%

 

(0.31)%

Total interest-earning assets(b)

 

6.47%

 

6.72%

 

(0.25)%

Total core deposits(e)

 

2.41%

 

2.89%

 

(0.48)%

Total bank funding(f)

 

2.76%

 

3.14%

 

(0.38)%

Net interest margin(g)

 

3.80%

 

3.68%

 

0.12%

 

 

 

 

 

 

 

Effective fed funds rate (2)(i)

 

3.67%

 

4.30%

 

(0.63)%

 

 

 

 

 

 

 

Beta Calculations:

 

 

 

 

 

 

Total loans and leases
   receivable(a)/(i)

 

 

 

 

 

49.3%

Total interest-earning assets(b)/(i)

 

 

 

 

 

39.2%

Total core deposits(e/i)

 

 

 

 

 

76.2%

Total bank funding(f)/(i)

 

 

 

 

 

60.3%

 

1.
Excludes prepayment activity in all periods of comparison.
2.
Board of Governors of the Federal Reserve System (US), Effective Federal Funds Rate [DFF]. Retrieved from FRED, Federal Reserve Bank of St. Louis. Represents average daily rate.
3.
Represents annualized yields/rates.

PROVISION FOR CREDIT LOSS COMPOSITION

 

(Unaudited)

 

For the Three Months Ended

 

For the Nine Months Ended

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Change due to qualitative factors

 

$(198)

 

$(357)

 

$(706)

 

$(538)

 

$(243)

 

$(1,261)

 

$(8)

Change due to quantitative factors

 

36

 

541

 

10

 

(607)

 

(173)

 

587

 

2,133

Charge-offs

 

2,921

 

1,524

 

2,331

 

2,809

 

1,708

 

6,776

 

6,856

Recoveries

 

(310)

 

(486)

 

(168)

 

(264)

 

(440)

 

(964)

 

(1,170)

Change in reserves on individually
   evaluated loans, net

 

(1,224)

 

(37)

 

382

 

(76)

 

(550)

 

(879)

 

(3,292)

Change due to loan growth, net

 

535

 

615

 

1,068

 

408

 

795

 

2,218

 

2,072

Change in unfunded commitments
   reserve

 

183

 

266

 

43

 

123

 

343

 

492

 

209

Total provision for credit losses

 

$1,943

 

$2,066

 

$2,960

 

$1,855

 

$1,440

 

$6,969

 

$6,800

 

ALLOWANCE FOR CREDIT LOSS COMPOSITION

 

 

 

As of

 

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

 

(In Thousands)

 

% of Total
Loans and
Leases

 

(In Thousands)

 

% of Total
Loans and
Leases

 

(In Thousands)

 

% of Total
Loans and
Leases

 

(In Thousands)

 

% of Total
Loans and
Leases

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans collectively evaluated

 

$31,871

 

0.87%

 

$31,499

 

0.88%

 

$30,700

 

0.88%

 

$30,327

 

0.90%

Loans individually evaluated

 

4,670

 

0.13%

 

5,894

 

0.16%

 

5,931

 

0.17%

 

5,550

 

0.16%

Unfunded commitments reserve

 

2,308

 

 

 

2,124

 

 

 

1,858

 

 

 

1,815

 

 

Total

 

38,849

 

1.06%

 

39,517

 

1.10%

 

38,489

 

1.10%

 

37,692

 

1.12%

Loans and lease receivables:

 

$3,673,817

 

 

 

$3,585,615

 

 

 

$3,498,903

 

 

 

$3,373,241

 

 

 

12

 

PERFORMANCE RATIOS

 

 

For the Three Months Ended

 

For the Nine Months Ended

(Unaudited)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Return on average assets (annualized)

 

1.49%

 

1.43%

 

1.13%

 

1.25%

 

1.40%

 

1.35%

 

1.23%

Return on average tangible common equity (annualized)

 

17.32%

 

16.89%

 

13.55%

 

15.35%

 

17.29%

 

15.96%

 

15.23%

Efficiency ratio

 

55.12%

 

57.57%

 

61.14%

 

56.61%

 

57.44%

 

57.87%

 

59.51%

Interest rate spread

 

3.29%

 

3.30%

 

3.06%

 

2.99%

 

3.11%

 

3.22%

 

3.11%

Net interest margin

 

3.80%

 

3.78%

 

3.56%

 

3.53%

 

3.68%

 

3.72%

 

3.68%

Average interest-earning assets to average interest-bearing liabilities

 

119.34%

 

117.95%

 

118.85%

 

119.25%

 

118.66%

 

118.72%

 

119.17%

 

ASSET QUALITY RATIOS

 

(Unaudited)

 

As of

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Non-accrual loans and leases

 

$40,240

 

$38,062

 

$40,503

 

$43,855

 

$23,513

Repossessed assets

 

—

 

—

 

—

 

—

 

—

Total non-performing assets

 

$40,240

 

$38,062

 

$40,503

 

$43,855

 

$23,513

Non-accrual loans and leases as a
   percent of total gross loans and leases

 

1.09%

 

1.06%

 

1.16%

 

1.30%

 

0.70%

Non-performing assets as a percent of
   total gross loans and leases plus
   repossessed assets

 

1.09%

 

1.06%

 

1.16%

 

1.30%

 

0.70%

Non-performing assets as a percent of
   total assets

 

0.91%

 

0.86%

 

0.94%

 

1.07%

 

0.58%

Allowance for credit losses as a percent
   of total gross loans and leases

 

1.06%

 

1.10%

 

1.10%

 

1.12%

 

1.15%

Allowance for credit losses as a percent
   of non-accrual loans and leases

 

96.54%

 

103.82%

 

95.03%

 

85.95%

 

163.24%

NET CHARGE-OFFS (RECOVERIES)

 

(Unaudited)

 

For the Three Months Ended

 

For the Nine Months Ended

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Charge-offs

 

$2,921

 

$1,524

 

$2,331

 

$2,809

 

$1,708

 

$6,776

 

$6,856

Recoveries

 

(310)

 

(486)

 

(168)

 

(264)

 

(440)

 

(964)

 

(1,170)

Net charge-offs (recoveries)

 

$2,611

 

$1,038

 

$2,163

 

$2,545

 

$1,268

 

$5,812

 

$5,686

Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized)

 

0.29%

 

0.12%

 

0.25%

 

0.30%

 

0.15%

 

0.22%

 

0.23%

CAPITAL RATIOS

 

 

As of and for the Three Months Ended

(Unaudited)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Total capital to risk-weighted assets

 

12.25%

 

12.21%

 

12.15%

 

12.24%

 

12.18%

Tier I capital to risk-weighted assets

 

9.95%

 

9.84%

 

9.74%

 

9.79%

 

9.67%

Common equity tier I capital to risk-
   weighted assets

 

9.65%

 

9.54%

 

9.43%

 

9.48%

 

9.34%

Tier I capital to adjusted assets

 

9.22%

 

9.11%

 

8.93%

 

8.86%

 

8.87%

Tangible common equity to tangible
   assets

 

8.59%

 

8.44%

 

8.26%

 

8.54%

 

8.31%

 

13

 

LOAN AND LEASE RECEIVABLE COMPOSITION

 

(Unaudited)

 

As of

(in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

Commercial real estate - owner occupied

 

$347,783

 

$345,984

 

$306,593

 

$293,706

 

$287,005

Commercial real estate - non-owner occupied

 

955,378

 

874,669

 

925,425

 

885,870

 

871,807

Construction and land development

 

184,718

 

227,782

 

224,866

 

248,560

 

236,590

Multi-family

 

690,323

 

654,405

 

577,271

 

571,468

 

565,102

1-4 family

 

60,868

 

58,981

 

61,332

 

60,661

 

66,735

Total commercial real estate

 

2,239,070

 

2,161,821

 

2,095,487

 

2,060,265

 

2,027,239

Commercial and industrial

 

1,389,826

 

1,380,476

 

1,358,413

 

1,273,997

 

1,264,111

Consumer and other

 

48,021

 

46,027

 

47,223

 

40,965

 

45,323

Total gross loans and leases receivable

 

3,676,917

 

3,588,324

 

3,501,123

 

3,375,227

 

3,336,673

Less:

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

36,541

 

37,393

 

36,631

 

35,877

 

36,690

Deferred loan fees

 

3,100

 

2,709

 

2,220

 

1,986

 

1,717

Loans and leases receivable, net

 

$3,637,276

 

$3,548,222

 

$3,462,272

 

$3,337,364

 

$3,298,266

 

DEPOSIT COMPOSITION

 

(Unaudited)

 

As of

(in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Non-interest-bearing transaction accounts

 

$477,865

 

$420,556

 

$405,281

 

$378,770

 

$400,697

Interest-bearing transaction accounts

 

1,288,239

 

1,297,353

 

1,170,271

 

1,103,696

 

1,050,233

Money market accounts

 

1,003,735

 

936,914

 

960,052

 

905,773

 

840,477

Certificates of deposit

 

209,118

 

222,852

 

260,455

 

284,764

 

300,703

Wholesale deposits

 

770,816

 

714,490

 

769,943

 

707,412

 

740,961

Total deposits

 

$3,749,773

 

$3,592,165

 

$3,566,002

 

$3,380,415

 

$3,333,071

 

 

 

 

 

 

 

 

 

 

 

Uninsured deposits

 

$1,381,507

 

$1,192,776

 

$1,237,344

 

$1,220,177

 

$1,100,868

Less: uninsured deposits collateralized by pledged assets

 

22,492

 

42,130

 

59,613

 

68,656

 

72,561

Total uninsured, net of collateralized deposits

 

$1,359,015

 

$1,150,646

 

$1,177,731

 

$1,151,521

 

$1,028,307

% of total deposits

 

36.2%

 

32.0%

 

33.0%

 

34.1%

 

30.9%

 

SOURCES OF LIQUIDITY

 

(Unaudited)

 

As of

(in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Short-term investments

 

$59,417

 

$131,294

 

$104,565

 

$8,714

 

$8,074

Collateral value of unencumbered pledged loans

 

1,225,386

 

987,993

 

968,320

 

992,398

 

906,042

Market value of unencumbered securities

 

369,369

 

378,423

 

387,700

 

388,474

 

376,783

Readily accessible liquidity

 

1,654,172

 

1,497,710

 

1,460,585

 

1,389,586

 

1,290,899

 

 

 

 

 

 

 

 

 

 

 

Fed fund lines

 

45,000

 

45,000

 

45,000

 

45,000

 

45,000

Excess brokered CD capacity(1)

 

846,907

 

878,888

 

806,268

 

775,851

 

732,951

Total liquidity

 

$2,546,079

 

$2,421,598

 

$2,311,853

 

$2,210,437

 

$2,068,850

Total uninsured, net of collateralized deposits

 

$1,359,015

 

$1,150,646

 

$1,177,731

 

$1,151,521

 

$1,028,307

 

1.
Bank internal policy limits brokered CDs to 50% of total bank funding when combined with value of unencumbered pledged loans.

14

 

EARNINGS PER SHARE

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,
2026

 

 

June 30,
2026

 

 

March 31,
2026

 

 

December 31,
2025

 

 

September 30,
2025

 

 

September 30,
2026

 

 

September 30,
2025

 

 

 

(Dollars in Thousands, Except Share Data)

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

16,572

 

 

$

15,580

 

 

$

12,200

 

 

$

13,333

 

 

$

14,393

 

 

$

44,352

 

 

$

36,986

 

Less: preferred stock dividends

 

 

218

 

 

 

219

 

 

 

219

 

 

 

219

 

 

 

218

 

 

 

656

 

 

 

656

 

Less: earnings allocated to participating securities

 

 

239

 

 

 

233

 

 

 

220

 

 

 

235

 

 

 

259

 

 

 

702

 

 

 

719

 

Basic earnings allocated to common shareholders

 

$

16,115

 

 

$

15,128

 

 

$

11,761

 

 

$

12,879

 

 

$

13,916

 

 

$

42,994

 

 

$

35,611

 

Weighted-average common shares outstanding, excluding participating securities

 

 

8,245,915

 

 

 

8,208,002

 

 

 

8,186,174

 

 

 

8,173,059

 

 

 

8,171,404

 

 

 

8,209,475

 

 

 

8,153,181

 

Basic earnings per common share

 

$

1.95

 

 

$

1.84

 

 

$

1.44

 

 

$

1.58

 

 

$

1.70

 

 

$

5.24

 

 

$

4.37

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings allocated to common shareholders, diluted

 

$

16,115

 

 

$

15,128

 

 

$

11,761

 

 

$

12,879

 

 

$

13,916

 

 

$

42,994

 

 

$

35,611

 

Weighted-average diluted shares outstanding, excluding participating securities

 

 

8,245,915

 

 

 

8,208,002

 

 

 

8,186,174

 

 

 

8,173,059

 

 

 

8,171,404

 

 

 

8,209,475

 

 

 

8,153,181

 

Diluted earnings per common share

 

$

1.95

 

 

$

1.84

 

 

$

1.44

 

 

$

1.58

 

 

$

1.70

 

 

$

5.24

 

 

$

4.37

 

PRIVATE WEALTH OFF-BALANCE SHEET COMPOSITION

 

(Unaudited)

 

As of

(in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Trust assets under management

 

$3,946,813

 

$3,947,362

 

$3,613,536

 

$3,541,768

 

$3,543,594

Trust assets under administration

 

279,961

 

287,226

 

267,214

 

272,910

 

270,222

Total trust assets

 

$4,226,774

 

$4,234,588

 

$3,880,750

 

$3,814,678

 

$3,813,816

 

NON-GAAP RECONCILIATIONS

Certain financial information provided in this release is determined by methods other than in accordance with generally accepted accounting principles (United States) (“GAAP”). Although the Company’s management believes that these non-GAAP financial measures provide a greater understanding of its business, these measures are not necessarily comparable to similar measures that may be presented by other companies.

TANGIBLE BOOK VALUE

“Tangible book value per share” is a non-GAAP measure representing tangible common equity divided by total common shares outstanding. “Tangible common equity” itself is a non-GAAP measure representing common stockholders’ equity reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in period-to-period changes in book value per common share exclusive of changes in intangible assets. The information provided below reconciles tangible book value per share and tangible common equity to their most comparable GAAP measures.

 

(Unaudited)

 

As of

(Dollars in thousands, except per share amounts)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Common stockholders’ equity

 

$392,612

 

$383,315

 

$368,088

 

$359,593

 

$346,327

Less: Goodwill and other intangible assets

 

(11,833)

 

(11,933)

 

(12,011)

 

(11,985)

 

(12,041)

Tangible common equity

 

$380,779

 

$371,382

 

$356,077

 

$347,608

 

$334,286

Common shares outstanding

 

8,357,781

 

8,368,320

 

8,343,519

 

8,325,376

 

8,324,387

Book value per share

 

$46.98

 

$45.81

 

$44.12

 

$43.19

 

$41.60

Tangible book value per share

 

$45.56

 

$44.38

 

$42.68

 

$41.75

 

$40.16

 

15

 

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS

“Tangible common equity to tangible assets” (“TCE”) is defined as the ratio of common stockholders’ equity reduced by intangible assets, if any, divided by total assets reduced by intangible assets, if any. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, each exclusive of changes in intangible assets. The information below reconciles tangible common equity and tangible assets to their most comparable GAAP measures.

 

(Unaudited)

 

As of

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

Common stockholders’ equity

 

$392,612

 

$383,315

 

$368,088

 

$359,593

 

$346,327

Less: Goodwill and other intangible assets

 

(11,833)

 

(11,933)

 

(12,011)

 

(11,985)

 

(12,041)

Tangible common equity (a)

 

$380,779

 

$371,382

 

$356,077

 

$347,608

 

$334,286

Total assets

 

$4,444,272

 

$4,410,004

 

$4,320,855

 

$4,081,887

 

$4,034,845

Less: Goodwill and other intangible assets

 

(11,833)

 

(11,933)

 

(12,011)

 

(11,985)

 

(12,041)

Tangible assets (b)

 

$4,432,439

 

$4,398,071

 

$4,308,844

 

$4,069,902

 

$4,022,804

Tangible common equity to tangible assets

 

8.59%

 

8.44%

 

8.26%

 

8.54%

 

8.31%

 

RETURN ON AVERAGE TANGIBLE COMMON EQUITY

“Return on Average Tangible Common Equity” (“ROATCE”) is defined as the ratio of net income available to common shareholders divided by average tangible common equity. The Company’s management believes that this measure is important to many investors in the marketplace who are interested in the return generated for common shareholders on the tangible capital invested. The information below reconciles average tangible common equity to its most comparable GAAP measure.

 

(Unaudited)

 

For the Three Months Ended

 

For the Nine Months Ended

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Net Income available to common shareholders (a)

 

$16,354

 

$15,361

 

$11,981

 

$13,114

 

$14,175

 

$43,696

 

$36,330

Average common stockholders' equity

 

389,614

 

375,806

 

365,659

 

353,820

 

339,980

 

377,029

 

330,188

Less: average goodwill and other intangible assets

 

11,889

 

11,972

 

11,987

 

12,023

 

12,056

 

11,949

 

12,032

Average tangible common equity (b)

 

$377,725

 

$363,834

 

$353,672

 

$341,797

 

$327,924

 

$365,080

 

$318,156

Return on average tangible common equity (a)/(b)

 

17.32%

 

16.89%

 

13.55%

 

15.35%

 

17.29%

 

15.96%

 

15.23%

 

16

 

EFFICIENCY RATIO & PRE-TAX, PRE-PROVISION ADJUSTED EARNINGS

“Efficiency ratio” is a non-GAAP measure representing non-interest expense excluding the effects of the SBA recourse provision, impairment of tax credit investments, losses or gains on repossessed assets, amortization of other intangible assets and other discrete items, if any, divided by operating revenue, which is equal to net interest income plus non-interest income less realized gains or losses on securities, if any. “Pre-tax, pre-provision adjusted earnings” is defined as operating revenue less operating expense. In the judgment of the Company’s management, the adjustments made to non-interest expense and non-interest income allow investors and analysts to better assess the Company’s operating expenses in relation to its core operating revenue by removing the volatility that is associated with certain one-time items and other discrete items. The information provided below reconciles the efficiency ratio and pre-tax, pre-provision adjusted earnings to its most comparable GAAP measure.

 

(Unaudited)

 

For the Three Months Ended

 

For the Nine Months Ended

(Dollars in thousands)

 

September 30,
2026

 

June 30,
2026

 

March 31,
2026

 

December 31,
2025

 

September 30,
2025

 

September 30,
2026

 

September 30,
2025

Total non-interest expense

 

$26,105

 

$27,849

 

$26,953

 

$24,130

 

$25,700

 

$80,907

 

$75,388

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain) on repossessed assets

 

—

 

—

 

—

 

—

 

31

 

—

 

27

Impairment (recovery) of tax credit investments

 

300

 

552

 

(7)

 

229

 

—

 

845

 

110

SBA severance expense

 

—

 

405

 

—

 

—

 

—

 

405

 

—

Contribution to First Business Charitable Foundation

 

—

 

—

 

—

 

—

 

234

 

—

 

234

SBA recourse benefit

 

(381)

 

—

 

(121)

 

—

 

(5)

 

(502)

 

(64)

Total operating expense (a)

 

$26,186

 

$26,892

 

$27,081

 

$23,901

 

$25,440

 

$80,159

 

$75,081

Net interest income

 

$39,078

 

$38,142

 

$35,518

 

$34,762

 

$34,886

 

$112,738

 

$101,928

Total non-interest income

 

8,429

 

8,569

 

8,775

 

7,461

 

9,640

 

25,773

 

24,475

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank owned life insurance claim

 

—

 

—

 

—

 

—

 

234

 

—

 

234

Adjusted non-interest income

 

8,429

 

8,569

 

8,775

 

7,461

 

9,406

 

25,773

 

24,241

Total operating revenue (b)

 

$47,507

 

$46,711

 

$44,293

 

$42,223

 

$44,292

 

$138,511

 

$126,169

Efficiency ratio

 

55.12%

 

57.57%

 

61.14%

 

56.61%

 

57.44%

 

57.87%

 

59.51%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision adjusted earnings (b - a)

 

$21,321

 

$19,819

 

$17,212

 

$18,322

 

$18,852

 

$58,352

 

$51,088

 

 

 

 

 

17

Slide 1

NASDAQ: FBIZ Earnings Release Supplement Third Quarter 2026

Slide 2

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 expressions are intended to identify “forward‐looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties, including among other things: (i) Adverse changes in the economy or business conditions, either nationally or in our markets, including, without limitation, inflation, economic downturn, labor shortages, wage pressures, the adverse effects of public health events on the global, national, and local economy, and geopolitical instability and international conflicts that may affect energy prices or otherwise result in market volatility; (ii) Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, prolonged shutdown of the federal government, and other significant policy matters; (iii) Competitive pressures among depository and other financial institutions nationally and in our markets; (iv) Increases in defaults by borrowers and other delinquencies; (v) Our ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems; (vi) Fluctuations in interest rates and market prices; (vii) Changes in legislative or regulatory requirements applicable to us and our subsidiaries; (viii) Changes in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations; (ix) Fraud, including client and system failure or breaches of our network security, including our internet banking activities; (x) Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portions of SBA loans; (xi) Ongoing volatility in the banking sector may result in new legislation, regulations or policy changes that could subject the Corporation and the Bank to increased government regulation and supervision; (xii) the proportion of the Corporation’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk; and (xiii) The Corporation may be subject to increases in FDIC insurance assessments. These risks could cause actual results to differ materially from what FBIZ has anticipated or projected. These risk factors and uncertainties should be carefully considered by our shareholders and potential investors. For further information about the factors that could affect the Corporation’s future results, please see the Corporation’s annual report on Form 10‐K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission. Investors should not place undue reliance on any such forward‐looking statement, which speaks only as of the date on which it was made. The factors described within the filings could affect our financial performance and could cause actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods. Where any such forward‐looking statement includes a statement of the assumptions or bases underlying such forward‐looking statement, FBIZ cautions that, while its management believes such assumptions or bases are reasonable and are made in good faith, assumed facts or bases can vary from actual results, and the differences between assumed facts or bases and actual results can be material, depending on the circumstances. Where, in any forward‐looking statement, an expectation or belief is expressed as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will be achieved or accomplished. FBIZ does not intend to, and specifically disclaims any obligation to, update any forward‐looking statements. Forward-Looking Statements

Slide 3

Highlights Q3 2026 Tangible Book Value Per Share1 +13% YoY Loans +10% +9.9% LQA +10.2% YoY Core Deposits +15% +14.1% LQA, +14.9% YoY Core deposit funding mix improved to 76.7%, from 73.1% in 3Q25. Record PTPP Earnings1 +13% Net Interest Margin 3.80% +2 bps LQ 3.72% for Sept ‘26 YTD, +4 bps over Sept ’25 YTD, supported by elevated fees in lieu of interest Private Wealth +13% PWM fees +13% YOY for the quarter and YTD +11% YOY growth in AUM/AUA PWM fees = 50% of Q3 fee income Operating Leverage1 +4.3% Positive operating leverage of 4.3% for LQ and YoY Operating leverage drove 164 bps improvement in YTD efficiency ratio, to 57.87%. +7.6% LQ +13.1% YoY 1. PTPP earnings, tangible book value per share, and operating leverage are non-GAAP measurements. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q3 2026 earnings release for additional detail. Note: Linked quarter growth rates for loans and core deposits are annualized.

Slide 4

$ in millions, except per share Q3'26 LQ* YoY   Sept YTD'26 YTD’26 vs. YTD'25 EARNINGS Operating revenue $ 47.5 2% 7% $ 138.5 10% Operating expense 26.2 -3% 3% 80.1 7% Pre-tax, pre-provision earnings 21.3 8% 13% 58.4 14% Provision for credit losses 1.9 -6% 35% 7.0 2% Income Taxes 2.9 137% -4% 6.3 -13% Net Income Avail. to Common $ 16.4 6% 15% $ 43.7 20% Diluted EPS $ 1.95 6% 15% $ 5.24 20% TBV per share $ 45.56 11% 13% PROFITABILITY Net Interest Margin 3.80% 2 bps 12 bps 3.72% 4 bps Operating Leverage 4.3% 4.3% 3% Efficiency Ratio 55.12% -245 bps -232 bps 57.87% -164 bps ROAA 1.49% 6 bps 9 bps 1.35% 12 bps ROATCE 17.32% 43 bps 3 bps 15.96% 73 bps BALANCES Assets $ 4,444 3% 10% Loans $ 3,674 10% 10% Core Deposits $ 2,979 14% 15% PWM AUM&A $ 4,227 0% 11% ASSET QUALITY NPAs $ 40.2 23% 71% NPAs/Total Assets 0.91% 5 bps 33 bps NCOs/Avg Loans 0.29% 17 bps 14 bps 0.22% -1 bps Quarterly Update Q3 2026 Record PTPP Earnings, Net Income, and Earnings Per Share Double-digit growth in loans and core deposits supports annual 10% growth goals Net interest margin continued to benefit from elevated prepayment fees YTD’26 net interest margin of 3.72% improved from 3.68% for YTD’25, showing strength and stability Exit from out-of-footprint SBA lending is ahead of plan, with FTE reduction benefiting 3Q’26 compensation costs Private Wealth Management revenues grew 13% YoY and comprised 50% of fee income TARGET = 10% Annual Growth 13% growth in TBVPS driven by record PTPP earnings and positive operating leverage * Represents annualized linked quarter growth rates for balance sheet items. Note: Operating revenue, operating expenses, tangible book value per share, efficiency ratio, and ROATCE are non-GAAP measurements. Operating leverage is defined as the percent growth in operating revenue less the percent growth in operating expenses. See section titled Non-GAAP Reconciliations in the Company's most recent earnings release, included as an exhibit to the Current Report on Form 8-K furnished to the SEC on October 29, 2026.

Slide 5

OBJECTIVE: Deliver above-average total shareholder return compared to peer median ROATCE, TBV/share, and Efficiency Ratio are non-GAAP measurements. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q3 2026 earnings release for additional detail. Represents data from the 2025 employee engagement survey. Net promoter score assesses likelihood to recommend on an 11‐point scale, where detractors (scores 0‐6) are subtracted from promoters (scores 9‐10), while passives (scores 7‐8) are not considered. Goals & Progress STRATEGIC PLAN 2024-2028 GOALS 2024‐2028 2024 2025 SEPT 2026 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% by 2028 60.61% 58.78% 57.87% Core Deposits to Total Funding ≥75% 71% 75% 77% Employee Engagement & Participation2 ≥85% 86% 85% 85% Net Promoter Score3 ≥70 70 78 78

Slide 6

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 incentivized to fund their loan production with deposit growth goals Niche lending businesses provide support across various economic cycles Goal is 10% annual deposit and loan growth core deposit growth supports loan growth +14% LQA +15% YOY +10% LQA +10% YOY

Slide 7

Diversified Lending Growth Continuing To Grow Higher-Yielding C&I PORTFOLIO 2023-2025 3-Year Loan CAGR C&I = 18% CRE & Other = 10%

Slide 8

Strong and Resilient Net Interest Margin Wholesale funding defined as brokered CDs and non‐reciprocal interest‐bearing transaction accounts plus FHLB advances. Note: Peer group defined as publicly‐traded banks with total assets between $1.75 billion and $7 billion. Peer data not yet available for 3Q26. MATCH FUNDING STRATEGY SUPPORTS Long-term NIM stability

Slide 9

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. 63% of portfolio as of 9/30/26: METHODICAL APPROACH Typically individually match‐fund loans with maturities over 5 years and amounts greater than $5MM. Portfolio match‐funding in various terms against the fixed‐rate loan portfolio with maturities under 5 years and amounts less than $5MM. ~$10‐$25 million of monthly wholesale funding maturities to effectively manage the liquidity requirements of the match‐funding strategy. Loans Deposits SOFR: $1.795 B SOFR: $863 MM Prime: $487 MM Managed rate, non‐maturity: $1.413 B TOTAL = $2.282 B TOTAL = $2.276 B FIXED RATE PORTFOLIO Wholesale funding used to match maturities and cash flows on long‐term fixed rate loans. This locks in interest rate spread and maintains greater stability in net interest margin. 37% of portfolio as of 9/30/26.

Slide 10

Match Funded Balance Sheet Unique Among Peers Note: Peer group defined as publicly‐traded banks with total assets between $1.75 billion and $7 billion.

Slide 11

Operating Revenue Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income: Service fees from private wealth management comprised 48% of Q3 26 TTM non‐interest income and have grown 35% over the past 3 years Treasury management gross analyzed service charges have grown 38% over the past 3 years Continue to optimize our limited partnership investment strategy to provide meaningful growth in other fee income Strategic investments drive growth while maintaining positive long‐term operating leverage 1. Operating Revenue is a non-GAAP measurement. Refer to the section entitled Non-GAAP reconciliations in the Company’s Q3 2026 earnings release. Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue1 +10% TTM Q3’26 vs TTM Q3’25

Slide 12

Consistent, Positive Operating Leverage HISTORY OF GROWING REVENUES FASTER THAN EXPENSES GOAL: Achieve 10% revenue growth on an annual basis, with positive operating leverage1 Strategic initiatives directed toward revenue growth and operating efficiency have generated positive operating leverage on an annual basis Operating revenue 5‐year CAGR of 10.1% outpaces operating expense 5‐year CAGR of 8.6% Initiatives include: Expanding higher‐yielding C&I lending business lines Strong focus on treasury management and growing core deposits Increasing commercial banking market share outside of Madison Scaling private wealth management business in our less mature commercial banking markets Optimizing limited partnership investment strategy Robotic process automation implementation Leveraging AI to increase productivity and scale 5-Year Average2 FBIZ = 2.76% Peer = 0.02% Operating leverage is defined as the percent growth in operating revenue less the percent growth in operating expenses. Operating revenue and operating expense are non-GAAP measurements. See section titled non-GAAP Reconciliations in the Company’s most recent earnings release, included as an exhibit to the Current Report on Form 8-K furnished to the SEC on October 29, 2026. FBIZ and peer average data is average of 2020-2025.

Slide 13

Non-Performing Assets Update ISOLATED NPAS WITH STRONG COLLATERAL NPAs increased in 3Q26, reflecting the addition of a multi-family loan associated with a previously disclosed southeast Wisconsin relationship, which is secured by CRE. The two largest NPA relationships were $22.7 million and $6.0 million at September 30, 2026. We expect progress toward resolution of these credits in early 2027.

Slide 14

FBIZ’s average loss rate since 2005 is approximately one-third of industry rate *Industry reflects all FDIC-insured depositories Source: FDIC.gov Superior Credit Experience Across Cycles Favorable loss experience reflects: Deep client relationships, strong underwriting, and niche lending expertise Loan growth that is C&I- focused and diversified, including niche lending businesses that provide support across various economic cycles Historical loss experience is favorable to industry

Slide 15

Robust Capital Base Strong Capital Ratios +12% 5YR CAGR STRONG EARNINGS GENERATE CAPITAL FOR GROWTH 1. “Tangible Book Value Per Share" is a non‐GAAP measurement. Refer to section entitled Non-GAAP Reconciliations in the Company’s Q3 2026 earnings release. +13% YOY

Slide 16

Profitability Exceeds Peers EARNINGS GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVE STRONG PROFITABILITY Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. Return on average tangible common equity is a non-GAAP measurement. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q3 2026 earnings release for additional detail. 5-Year average represents 2020-2025. Peer data not yet available for September 2026 YTD. 5-Year Average2 FBIZ = 15.7% Peer = 12.9%

Slide 17

Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity Source 9/30/2026 9/30/2025 Short-term investments $59,417 $8,074 Collateral value of unencumbered pledged loans 1,225,386 906,042 Market value of unencumbered securities 369,369 376,783 Readily accessible liquidity $1,654,172 $1,290,899 Fed fund lines 45,000 45,000 Excess brokered CD capacity (1) 846,907 732,951 Total liquidity $2,546,079 $2,068,850 Uninsured Deposits Collateralized Public Funds FDIC Insured 69% of deposits are insured or collateralized 1. Bank internal policy limits brokered CDs to 50% of total bank funding when combined with value of unencumbered pledged loans. Dollars in thousands Category 9/30/2026 9/30/2025 Uninsured deposits $1,381,507 $1,100,868 Collateralized public funds 22,492 72,561 FDIC insured deposits 2,345,774 2,159,642 Total deposits $3,749,773 $3,333,071 Percent FDIC insured 64% 69%

Source: View Original Filing on SEC EDGAR

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