Strong Q1 2026 growth at First Business (NASDAQ: FBIZ) with rising TBV and EPS
Rhea-AI Filing Summary
First Business Financial Services, Inc. furnished a Q1 2026 investor presentation highlighting strong balance sheet and earnings trends. Tangible book value per share rose 14% year-over-year, while pre-tax, pre-provision earnings grew 6.1% and net income increased 9.4%.
Loans grew 14.9% from the linked quarter and 9.9% year-over-year, and core deposits rose 18.4% from the linked quarter and 13.5% year-over-year, supporting a net interest margin of 3.56% (3.61% excluding fewer accrual days). Non-performing assets declined to $40.5 million, or 0.94% of total assets.
The presentation also emphasizes a five‑year plan targeting at least 15% ROATCE and ≥10% annual growth in revenue and tangible book value, a dividend of $0.34 per share (up 17%), solid capital ratios, and a long history of above‑peer total shareholder return.
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8-K Event Classification
Key Figures
Key Terms
Regulation FD regulatory
forward‐looking statements regulatory
pre-tax, pre-provision earnings financial
net interest margin financial
non-performing assets financial
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
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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:
Securities registered pursuant to Section 12(b) of the Act:
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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 7.01. Regulation FD Disclosure.
On May 5, 2026, First Business Financial Services, Inc. (the “Company”) posted an investor 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 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 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being “furnished” pursuant to Item 7.01 of Form 8-K, 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.
(a) Not applicable
(b) Not applicable
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(d) Exhibits. The following exhibit is being furnished herewith:
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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.
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May 5, 2026 |
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FIRST BUSINESS FINANCIAL SERVICES, INC. |
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/s/ Brian D. Spielmann |
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Brian D. Spielmann |
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Chief Financial Officer |
NASDAQ: FBIZ Investor Presentation First Quarter 2026
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 of 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
Table of Contents Page 4 5 6 11 22 29 Q1 2026 Results Company Snapshot Strategic Plan Why FBIZ? Drivers of Growth & Profitability Appendix
Highlights Q1 2026 Tangible Book Value Per Share1 +14% YOY Fee Income +18% Non-interest income grew 17.6% from the linked quarter and 15.8% year-over-year, reflecting ongoing success of revenue diversification efforts. Core Deposits +18% Core deposits grew 18.4% from the linked quarter and 13.5% year-over-year. Core deposit funding mix improved to 73.3% from 70.9% in the prior-year quarter. Loans +15% NIM 3.56% NIM was 3.56% compared to 3.53% in 4Q25. Excluding the impact of fewer accrual days in the first quarter, 1Q26 NIM was 3.61%. NPAs/TAs -13bps NPAs decreased $3.4 million to $40.5 million, or 0.94% of total assets, compared to 1.07% for 4Q25. Improvement reflects the 1Q26 sale of a portion of the CRE NPA that was downgraded in 4Q25. PTPP Earnings +6% Continued growth in loans, core deposits, and diversified fee income sources drove 6.1% year-over-year growth in pre-tax, pre-provision earnings1 and 9.4% growth in net income. Loans grew 14.9% from the linked quarter and 9.9% year-over-year. 1. PTPP earnings and tangible book value per share are non-GAAP measurements. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q1 2026 earnings release for additional detail. Note: Linked quarter growth rates for loans and core deposits are annualized.
First Business Bank’s unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver exceptional results for all stakeholders. We serve business executives, entrepreneurs, and high net worth individuals through Business Banking, Private Wealth, and Bank Consulting. Our commercial banking focuses on Midwest markets, while our niche C&I businesses have a national reach. Through our headquarters in Madison, WI we offer an efficient, scalable model with one bank location in each of our markets, and exceptional digital capabilities. $480 Million MARKET CAP1 $4.3 Billion TOTAL ASSETS3 $3.9 Billion ASSETS UNDER MGMT & ADMIN3 NASDAQ: FBIZ FBIZ BUSINESS BANKING2 FBIZ PRIVATE WEALTH Madison, WI Market capitalization as of 4/29/26. 2. Consists of all on-balance sheet assets for First Business Financial Services, Inc. on a consolidated basis. 3. Data as of 03/31/2026.
Strategic Plan FIVE YEAR
DEPOSITS OPERATIONAL EXCELLENCE PROFITABILITY FUTURE-READY TALENT CULTURE Protect and strengthen our culture Grow our core deposits Achieve sustainable profitability and growth Thrive in the workplace of the future Improve efficiency and enhance client experience Five Year Strategic Plan 01 02 03 04 05 First Business Bank's unique model and culture will foster innovative and engaged team members who develop deep client relationships and deliver exceptional results for all stakeholders. 2024-2028
Deliver above-average total shareholder return compared to peer median ROATCE and TBV/share are non-GAAP measurements. ROATCE is defined as net income divided by average tangible common equity. 1Q26 ROATCE represents annualized Q1 net income divided by average tangible common equity. TBV Growth represents growth over Q1 2025. Refer to the section entitled Non-GAAP Reconciliations in the Company’s Q1 2026 earnings release for additional detail. Revenue Growth represents growth over Q1 2025. 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. See appendix for additional information on the source of the net promoter score. Represents data from the 2025 survey. Goals & Progress STRATEGIC PLAN 2024-2028 Goals 2024‐2028 2025 Q1 2026 ROATCE1 ≥15% by 2028 15.3% 13.6% TBV Growth1 ≥10% per year 13.7% 13.6% Revenue Growth2 ≥10% per year 9.7% 8.5% Efficiency Ratio <60% by 2028 58.78% 61.14% Core Deposits to Total Funding ≥75% 75% 73% Employee Engagement & Participation3 ≥85% 85% 85% Net Promoter Score4 ≥70 78 78
Total Shareholder Return Above Peer Group Median Despite outperformance, Price/LTM EPS remains below peers Note: Peer Group defined as publicly traded banks with total assets between $1.75 billion and $7.0 billion. 1‐Year TSR is through 3/31/2026. Data as of 3/31/2026.
FBIZ initiated trading on October 7, 2005. Source: S&P Capital IQ Total Shareholder Return Since IPO outperformed PRIMARY BANKING INDICES SINCE 2005 IPO 578% 181% 168% 129% 77%
Why FBIZ?
Our Historic & Ongoing Growth Supports Earnings Power Differentiated Loan Growth Capabilities History of consistent double-digit growth Growth is C&I focused and diversified Solid credit quality due to deep client relationships, strong underwriting, and niche lending expertise GROWING PROFITABILITY 10% 5-year Loan CAGR 2020-2025 Strong & Stable Deposit Franchise Track record of double‐digit growth driven by deep client relationships Stable and strong NIM in a challenging environment Deposit‐centric culture led by treasury management sales also drives meaningful service charge income Growing Profitability Profile Significant fee revenue contribution from Private Wealth business History of double‐digit top line revenue growth History of long‐term positive operating leverage Consistent double‐digit TBV growth 10% 5-year Core Deposit CAGR 2020-2025 12% 5-year TBV/Share CAGR 2020-2025
Operating Income Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income, including service fees from our Private Wealth Management business which comprises 46% over the past 12 months ending Q1 2026. Strategic investments drive growth while maintaining positive long‐term operating leverage Earnings strength reflected in a 2026 ROATCE of 13.6%. Note: Net interest income is the sum of "Adjusted Net Interest Income", “Other Interest Income”, and "Fees in Lieu of Interest". Non-interest income is the sum of "Private Wealth Management Service Fees", "Other Fee Income", "Service Charges", "SBA Gains", and "Swap Fees". 1 ""Net Operating Income" is a non-GAAP measurement. See appendix for non-GAAP reconciliation schedules. 2 "Net Tax Credits" represent management's estimate of the after-tax contribution related to the investment in tax credits as of the reporting period disclosed. Balanced and Steady Growth OPERATING FUNDAMENTALS DRIVE EARNINGS POWER
Peer Group defined as publicly‐traded banks with total assets between $1.75 billion and $7.0 billion. Margin Strength Through Rate Cycles MATCH-FUNDING STRATEGY BETTER POSITIONS BALANCE SHEET FOR RATE CHANGES
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. 60% of portfolio as of 12/31/25: 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: $1.560 B SOFR: $792 MM Prime: $440 MM Managed rate, non‐maturity: $1.217 B TOTAL = $2.000 B TOTAL = $2.009 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. 40% of portfolio as of 12/31/25
Match Funded Balance Sheet Unique Among Peers Note: Peer group defined as publicly‐traded bank with total assets between $1.75 billion and $7 billion.
Consistent, Positive Operating Leverage HISTORY OF GROWING REVENUES FASTER THAN EXPENSES We aim to achieve 10% revenue growth on an annual basis, with positive operating leverage1 Strategic initiatives directed toward revenue growth and operating efficiency through use of technology 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 our commercial banking market share outside of Madison Scaling our Private Wealth management business in our less mature commercial banking markets Robotic process automation implementation AI usage discovery and roll out 5-Year Average2 FBIZ = 2.76% Peer = 0.02% Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. Operating leverage is defined as the percent growth in operating revenue less the percent growth in operating expenses FBIZ and peer average data is average of 2020-2025.
Strong Business Banking Revenue Profile 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 residential mortgage or consumer business Growing contribution from Private Wealth is an annuity-like driver Robust fee income generation contributes to our strong ratio of Revenue per FTE, which has been 30 to 40% above our peers over the past five years Outperformance driven by high-quality, high-producing talent and successful investments for growth and efficiency EFFICIENT REVENUE GROWTH AND DIVERSIFICATION DIFFERENTIATES FROM PEERS Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. 1. “FTE” = Full time equivalent employees.
Growth And Profitability Exceeds Peers TLR GROWTH AND EFFICIENT CAPITAL MANAGEMENT DRIVES STRONG PROFITABILITY Note: Peer group defined as publicly traded banks with total assets between $1.75 billion and $7 billion. 1. 5-Year average represents 2020-2025. 5-Year Average1 FBIZ = 15.7% Peer = 12.9%
Track Record of Superior Growth 2025 EPS grew 14% over 2024, exceeding our long-term, annual goal of 10% earnings growth, even after following a robust year of 20% EPS growth in 2024 History of double-digit annual growth reflects long-term success in achieving: Steady and consistent balance sheet expansion Diversified revenue streams Efficient investment and expense management Favorable asset quality History of double-digit Long-term EPS growth, Outperforming peers Note: Peer group defined as publicly‐traded banks with total assets between $1.75 billion and $7 billion.
Shareholder Value Creation A HISTORY OF STEADY, CONSISTENT TBV AND DIVIDEND GROWTH THROUGH ECONOMIC AND INTEREST RATE CYCLES TBV 5YR CAGR = 12% Div/Share 5YR CAGR = 11% Announced a 17% dividend increase for 2026, marking 14th consecutive annual increase
Drivers of Growth & Profitability
Relationship Banking Key to Success Deposit‐centric sales strategy led by treasury management sales teams located in all bank markets with direct production and outside calling goals Bankers trained and incented to fund their loan production with deposit growth goals Niche lending businesses provide support across various economic cycles Goal is 10% annual deposit and loan growth core deposit growth supports loan growth +18% LQA +14% YOY +15% LQA +10% YOY
Diversified Lending Growth Continuing To Grow Higher-Yielding C&I PORTFOLIO 2023-2025 3-Year Loan CAGR C&I = 18% CRE & Other = 10% C&I comprised 67% of 1Q26 loan growth 1Q26 loan growth predominantly occurred late in the quarter, limiting the yield benefit in the first quarter.
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 bank with total assets between $1.75 billion and $7 billion. Peer data not yet available for 1Q26. MATCH FUNDING STRATEGY SUPPORTS Long-term NIM stability 1Q26 and 1Q25 NIM include 5bp of impact due to fewer accrual days in the first quarter Excluding this impact, 1Q26 NIM was 3.61% and 1Q25 was 3.74% 4Q25 NIM includes 10bp of compression due to non-accrual interest reversals
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 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
Performing Portfolio Remains Strong and Stable RECENT AND FIVE-YEAR TRENDS REFLECT CONSISTENT STRENGTH OF PORTFOLIO 1. For more detailed definitions of credit quality categories, see the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2026. As of 3/31/26, 93% of the loan portfolio was classified in category I(1) and 99% of loans were current Performing Loans - Annual 2021 2022 2023 2024 2025 Current 99.9% 99.9% 99.9% 99.3% 99.4% 30-59 PD 0.1% 0.1% 0.1% 0.7% 0.5% 60-89 PD 0.0% 0.0% 0.0% 0.0% 0.0% >90 PD 0.0% 0.0% 0.0% 0.0% 0.0% Total Performing 100.0% 100.0% 100.0% 100.0% 100.0% Performing % of Total Loans 99.7% 99.8% 99.3% 99.1% 98.7% Performing Loans - Quarterly 1Q25 2Q25 3Q25 4Q25 1Q26 Current 99.9% 99.9% 99.8% 99.4% 99.8% 30-59 PD 0.0% 0.1% 0.1% 0.5% 0.1% 60-89 PD 0.0% 0.0% 0.0% 0.0% 0.0% >90 PD 0.0% 0.0% 0.0% 0.0% 0.0% Total Performing 100.0% 100.0% 100.0% 100.0% 100.0% Performing % of Total Loans 99.2% 99.1% 99.3% 98.7% 99.8% Performing loans comprised 99% of the Bank’s total loan portfolio as of March 31, 2026 Outside of the isolated NPLs, the remainder of the portfolio continues to perform as expected, with no areas of concern We continue to see ongoing strength across our markets and businesses Niche C&I businesses performing well and growing CRE markets are strong Equipment finance transportation portfolio continues to improve and shrink Credit Quality Indicators
Decline in Non-Performing Assets PROGRESS ON SINGLE BORROWER NPA WITH STRONG COLLATERAL POSITION NPAs declined in 1Q26, driven by the sale of $3.4 million of land development loans, at par, from a single Wisconsin-based relationship that was downgraded in Q4 2025 The client’s remaining nonperforming loans were $17.0 million at March 31, 2026. Isolated, internal management challenges limited the client’s ability to advance raw land projects to multi-family development No specific reserve was recorded, as land is in healthy markets and appraisals exceed carrying values
Appendix SUPPLEMENTAL DATA & NON-GAAP RECONCILIATIONS
Offerings Designed Exclusively For Business And Wealth Management SERVICES THAT MEET THE EVOLVING NEEDS OF OUR GROWING CLIENT BASE
Superior Client Satisfaction Rating EXCELLENT EMPLOYEE SATISFACTION DRIVES SUPERIOR CLIENT SATISFACTION
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity Source 3/31/2026 3/31/2025 Short-term investments $104,565 $136,033 Collateral value of unencumbered pledged loans 968,320 973,494 Market value of unencumbered securities 387,700 324,365 Readily accessible liquidity $1,460,585 $1,433,892 Fed fund lines 45,000 45,000 Excess brokered CD capacity (1) 806,268 477,468 Total liquidity $2,311,853 $1,956,360 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 FHLB advances. Dollars in thousands Category 3/31/2026 3/31/2025 Uninsured deposits $1,237,344 $1,055,347 Collateralized public funds 59,613 9,344 FDIC insured deposits 2,269,045 2,178,352 Total deposits $3,566,002 $3,243,043 Percent insured or collateralized 67% 68%
Robust Capital Base Strong Capital Ratios +9% LQA +14% YOY 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 Q1 26 earnings release.
Capital Strength 3/31/25 6/30/25 9/30/25 12/31/25 03/31/26 Total Regulatory Capital $429,351 $440,159 $452,731 $463,447 $473,237 Total Risk-Weighted Assets $3,519,769 $3,592,554 $3,717,741 $3,786,460 $3,895,564 Leverage Ratio 8.77% 8.82% 8.87% 8.86% 8.93% Common Equity Tier 1 Capital Ratio 9.26% 9.33% 9.34% 9.48% 9.43% Tier 1 Ratio 9.60% 9.66% 9.67% 9.79% 9.74% Total Capital Ratio 12.20% 12.25% 12.18% 12.24% 12.15% Total Shareholders' Equity $336,063 $344,795 $358,319 $371,585 $380,080 Tangible Common Shareholders' Equity $312,013 $320,754 $334,286 $347,608 $356,077 Total Shares Outstanding 8,301,967 8,323,470 8,324,387 8,325,376 8,343,519 Book Value Per Share $39.0 $40.0 $41.6 $43.2 $44.1 Tangible Book Value Per Share $37.6 $38.5 $40.2 $41.8 $42.7 Cash Dividends Per Share $0.29 $0.29 $0.29 $0.29 $0.34 Regulatory capital ratios remain solid including a Total Capital Ratio of 12.15% and a Tier 1 Ratio of 9.74%. Tangible book value per share 14% from the prior-year quarter. Quarterly cash dividend of $0.34 per share, representing a 17% increase over 2025. Dollars in thousands, except per share data.
Diversified Lending Products Double-digit loan growth driven by stellar performance across all areas of the bank Note: Period end balances as of 3/31/2026 presented.
Product Profile We originate loans secured by commercial real estate, including owner-occupied properties, non-owner-occupied facilities, multifamily developments, 1-4 family residential developments, and construction loans for these types of buildings. As of 3/31/26, our commercial real estate portfolio (“CRE”) represented approximately 59.9% of our total gross loans and leases receivable. Technology Initiatives Deploying client portal that enables easy and secure communications and document exchanges Note: Loan balances represent quarterly average data. Commercial Real Estate Lending Superior talent with business expertise building relationships in Midwest geographic footprint
Office loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with no non-performing office loans in the portfolio 77% of all office loans greater than $3 million have recourse Office loans greater than $3 million consist of 64% Class A space Office represents 9% of total loans as of 3/31/26 Majority of office loan maturity terms are 2031 and beyond Note: The office specific loan data presented in charts on this slide represents office loans greater than $3 million, which represents 78% of total office loans. Source: Q1 2026 CoStar market reports. For more detailed definitions on credit quality categories see the Company’s annual report on Form 10-K filed with the SEC on February 25, 2026. Vacancy Rates(1): Madison = 6.7% Milwaukee = 12.9% Kansas City = 10.2% National = 14.0% CRE Office Portfolio Analysis Exceptional credit quality on office loans focused in our local bank markets
Loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with 99.3% performing loans in the portfolio Represents 16% of total loans All multi-family loans with 2031+ maturities are conventional fixed rate or fixed to the client via an interest rate swap Source: Q4 2025 CoStar market reports. For more detailed definitions on credit quality categories see the Company’s annual report on Form 10-K filed with the SEC on February 25, 2026. Vacancy Rates(1): Madison = 5.8% Milwaukee = 5.2% Kansas City = 8.8% National = 8.5% Multi-Family Portfolio Analysis Exceptional credit quality on Multi-family loans throughout the midwest
Product Profile Target small and medium companies in a variety of industries Financings range from $250,000 to $20 million Technology Initiatives Deploying client portal that enables easy and secure communications and document exchanges Note: Loan balances represent quarterly average data. C&I Lending Diversified commercial product offerings target companies nationwide
Equipment Finance Portfolio Analysis Equipment Finance (EF) loans diversified across industries EF comprised 24% of C&I loans and 9% of Total Loans at 3/31/2026 Small ticket transportation loans comprised 5.5% of EF, 1.3% of C&I, and 0.5% of Total Loans Stable asset quality in EF portfolio excluding small ticket transportation sector, which is experiencing isolated industry weakness 1. For more detailed definitions on credit quality categories see the Company’s annual report on Form 10‐Q filed with the SEC on April 24, 2026. Category IV represents non‐performing loans. Asset Quality Breakdown1 Equipment Finance excl. Transportation 12/31/2023 12/31/2024 12/31/2025 3/31/2026 Total Portfolio $226.4 MM $284.3 MM $310.6 MM $305.5 MM Category I 96% 98% 99% 98% Category II 1% 0% 0% 0% Category III 1% 0% 0% 0% Category IV 2% 2% 1% 2% Transportation 12/31/2023 12/31/2024 12/31/2025 3/31/2026 Total Portfolio $60.9 MM $41.2 MM $21.6 MM $17.9MM Category I 90% 87% 92% 91% Category II 1% 0% 0% 0% Category III 2% 0% 0% 0% Category IV 7% 13% 8% 9% Maturing Over Time STRONG AND DIVERSIFIED PORTFOLIO; TRANSPORTATION SUB-CATEGORY SHOWING SECTOR-SPECIFIC WEAKNESS
Product Profile Target small to medium-sized companies in our Wisconsin, Kansas, and Missouri markets Comprehensive services for commercial clients to manage their cash and liquidity, including lockbox, accounts receivable collection services, electronic payment solutions, fraud protection, information reporting, reconciliation, and data integration solutions Technology Initiative Implemented a solution that auto-archives treasury management documentation which has immediately generated labor savings Note: Funding mix represents quarterly average balance data. Transaction Accounts include interest-bearing DDA, non-interest-bearing DDA and NOW accounts. Bank Wholesale Funding includes brokered deposits, deposits gathered through internet listing services and FHLB advances. Non-Transaction Accounts includes core CDs and money market accounts. "Cost of Funds" is a non-GAAP measure. See non-GAAP reconciliation schedules in the appendix. Treasury Management Superior talent with business expertise building relationships in Midwest geographic footprint
Product Profile Fiduciary and investment manager for individual and corporate clients, creating and executing asset allocation strategies tailored to each client’s unique situation Holds full fiduciary powers and offers trust, estate, financial planning, and investment services, acting in a trustee or agent capacity as well as Employee Benefit/Retirement Plan services Also includes brokerage and custody-only services, for which we administer and safeguard assets but do not provide investment advice Technology Initiative Implementing client portal for new client onboarding Note: Total Assets Under Management & Administration represent period-end balances. Private Wealth Management Wealth management services for businesses, executives, and high net worth individuals
"Net Operating Income" is a non-GAAP financial measure. We believe net operating income allows investors to better assess the Company’s operating expenses in relation to its top line revenue by removing the volatility that is associated with certain one-time and other discrete items. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net income, which is the most directly comparable GAAP financial measure. For the Year Ended (Dollars in Thousands) December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 TTM Q1 2026 Net income $35,755 $40,858 $37,027 $44,245 $50,319 $51,347 Less income tax expense (11,275) (11,386) (10,112) (6,905) (10,134) (10,026) Less provision for credit losses 5,803 3,868 (8,182) (8,827) (8,655) (8,957) Income before taxes and provision for credit losses (non-GAAP) 41,227 48,376 55,321 59,977 69,108 70,330 Less non-operating income Net gain on sale of state tax credits - - - - - - Bank owned life insurance claim - 809 - - 234 234 Net (loss) gain on sale of securities 29 - (45) (8) - - Total non-operating income (non-GAAP) 29 809 (45) (8) 234 234 Less non-operating expense Net loss on repossessed assets 15 49 12 168 27 35 Amortization of other intangible assets 25 - - - - - Contribution to First Business Charitable Foundation - 809 - - 234 234 SBA recourse (benefit) provision (76) (188) 775 (104) (64) (185) Tax credit investment impairment (recovery) - 351 - 400 339 222 Loss on early extinguishment of debt - - - - - - Total non-operating expense (non-GAAP) (36) 319 787 464 536 306 Add net tax credit benefit (non-GAAP) - 338 1,206 1,630 1,648 1,768 Net operating income $41,162 $48,224 $57,359 $62,078 $70,966 $72,170 Non-GAAP Reconciliation Net Operating Income
‘‘Cost of Funds’’ is defined as total interest expense on deposits and FHLB advances, divided by the sum of total average deposits and average FHLB advances. We believe that this measure is important to many investors in the marketplace who are interested in the trends in our bank funding costs. The information provided below reconciles the cost of funds to its most comparable GAAP measure. For the Three Months Ended (Dollars in Thousands) March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 Interest expense on total interest-bearing deposits $23,016 $24,257 $26,338 $25,596 $23,928 Interest expense on FHLB advances 2,374 2,358 1,639 1,510 1,567 Total interest expense on deposits and FHLB advances $25,390 $26,615 $27,977 $27,106 $25,495 Average interest-bearing deposits $2,642,826 $2,759,844 $2,935,362 $3,054,066 $3,102,000 Average non-interest-bearing deposits 414,499 410,423 416,359 437,271 428,739 Average FHLB advances 305,549 284,428 207,762 189,900 200,132 Total average deposits and total average FHLB advances $3,362,874 $3,454,695 $3,559,483 $3,681,237 $3,730,871 Cost of funds 3.02% 3.08% 3.14% 2.95% 2.73% Non-GAAP Reconciliation Cost Of Funds
Investor Presentation First Quarter 2026