8-K - FBIZ - Equibles

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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): January 30, 2025

First Business Financial Services, Inc.

(Exact name of Registrant as Specified in Its Charter)

Wisconsin	001-34095	39-1576570
(State or Other Jurisdiction<br>of Incorporation)	(Commission File Number)	(IRS Employer<br>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
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N/A
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(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<br>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 January 30, 2025, First Business Financial Services, Inc. (the “Company”) announced its earnings for the quarter ended December 31, 2024. 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 January 30, 2025, 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 in connection with its fourth quarter 2024 earnings call to be held at 1:00 p.m. Central time on January 31, 2025, 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 exhibit is being “furnished” as part of this Current Report on Form 8-K:

99.1	Press release of the registrant dated January 30, 2025, containing financial information for its quarter ended December 31, 2024.
99.2	Slides from Fourth Quarter 2024 Investor Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL Document)
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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.

January 30, 2025	FIRST BUSINESS FINANCIAL SERVICES, INC.
	By:	/s/ Brian D. Spielmann
	Name:	Brian D. Spielmann
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

FIRST BUSINESS BANK REPORTS RECORD FOURTH QUARTER 2024 NET INCOME OF $14.2 MILLION

-- Record operating revenue, strong net interest margin, and positive operating leverage drive record pre-tax, pre-provision earnings --

MADISON, Wis., January 30, 2025 (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 $14.2 million, or earnings per share ("EPS") of $1.71. This compares to net income available to common shareholders of $10.3 million, or $1.24 per share, in the third quarter of 2024 and $9.6 million, or $1.15 per share, in the fourth quarter of 2023. EPS for the fourth quarter of 2024 included tax and Small Business Administration ("SBA") recourse reserve benefits totaling $0.28 per share.

“First Business Bank’s excellent execution throughout 2024 culminated in outstanding fourth quarter performance,” said Corey Chambas, Chief Executive Officer. “Our success is attributable to our deep client relationships and exceptional team, who produced near 10% loan growth once again. At the same time, we are very pleased with the 13% expansion of fee income in the fourth quarter, which helped drive an improved efficiency ratio. Excluding the tax and recourse benefits in the quarter, our earnings per share amounted to $1.43, marking growth of 15% and 24% from the linked and prior year quarters and supporting our key focus on meaningful tangible book value expansion. We remain confident in our ability to execute our strategic plan and achieve 10% balance sheet and top line revenue growth in 2025.”

Quarterly Highlights

Consistent Loan Growth. Loans increased $63.6 million, or 8.3% annualized, from the third quarter of 2024, and $263.8 million, or 9.3%, from the fourth quarter of 2023, reflecting growth throughout the Company.
Strong Net Interest Margin. The Company's long-held match-funding strategy and pricing discipline produced a net interest margin of 3.77%, compared to 3.64% for the linked quarter. Net interest income grew 6.9% from the linked quarter and 12.2% from the prior year quarter.
Record Operating Revenue. Operating revenue increased to $41.2 million, up 8.1% and 12.3% from the linked and prior year quarters, respectively, driven by loan growth, strong net interest margin, and fee income expansion.
Continued Private Wealth Management Expansion. Private Wealth assets under management and administration grew to a record $3.419 billion, generating Private Wealth fee income of $3.4 million. Private Wealth fees increased by 16.8% from the prior year quarter and comprised 43% of total non-interest income.
Record Pre-Tax, Pre-Provision ("PTPP") Income. PTPP income grew to $17.7 million, up 14.8% and 16.1% from the linked and prior year quarters, respectively. This performance reflects continued growth across the Company’s balance sheet coupled with operational efficiency.
Tangible Book Value Growth. The Company’s strong earnings and sound balance sheet management continued to drive growth in tangible book value per share, producing a 23.0% annualized increase compared to the linked quarter and a 15.0% increase compared to the prior year quarter.
Reported Earnings Elevated by Tax Benefit and Recourse Reserve. EPS of $1.71 included income tax and SBA recourse reserve benefits totaling $0.28 per share. Excluding these items, EPS increased 15.3% and 24.3% from the linked and prior year quarters.

Quarterly Financial Results

(Unaudited)	As of and for the Three Months Ended			As of and for the Year Ended
(Dollars in thousands, except per share amounts)	December 31,<br>2024	September 30,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Net interest income	$33,148	$31,007	$29,540	$124,206	$112,588
Adjusted non-interest income (1)	8,005	7,064	7,094	29,259	31,353
Operating revenue (1)	41,153	38,071	36,634	153,465	143,941
Operating expense (1)	23,434	22,630	21,374	93,016	87,787
Pre-tax, pre-provision adjusted earnings (1)	17,719	15,441	15,260	60,449	56,154
Less:
Provision for credit losses	2,701	2,087	2,573	8,827	8,182
Net loss on repossessed assets	5	11	4	168	13
SBA recourse (benefit) provision	(687)	466	210	(104)	775
Impairment of tax credit investments	400	—	—	400	—
Add:
Net loss on sale of securities	—	—	—	(8)	(45)
Income before income tax expense	15,300	12,877	12,473	51,150	47,139
Income tax expense	885	2,351	2,703	6,905	10,112
Net income	$14,415	$10,526	$9,770	$44,245	$37,027
Preferred stock dividends	219	218	219	875	875
Net income available to common shareholders	$14,196	$10,308	$9,551	$43,370	$36,152
Earnings per share, diluted	$1.71	$1.24	$1.15	$5.20	$4.33
Book value per share	$38.17	$36.17	$33.39	$38.17	$33.39
Tangible book value per share (1)	$36.74	$34.74	$31.94	$36.74	$31.94
Net interest margin (2)	3.77%	3.64%	3.69%	3.66%	3.78%
Adjusted net interest margin (1)(2)	3.48%	3.51%	3.50%	3.47%	3.62%
Fee income ratio (non-interest income / total revenue)	19.45%	18.55%	19.36%	19.06%	21.76%
Efficiency ratio (1)	56.94%	59.50%	58.34%	60.61%	60.99%
Return on average assets (2)	1.52%	1.13%	1.11%	1.20%	1.13%
Return on average tangible common equity (2)	19.21%	14.40%	14.64%	15.35%	14.45%
Period-end loans and leases receivable	$3,113,128	$3,050,079	$2,850,261	$3,113,128	$2,850,261
Average loans and leases receivable	$3,103,703	$3,031,880	$2,810,793	$2,996,881	$2,647,851
Period-end core deposits	$2,396,429	$2,382,730	$2,339,071	$2,396,429	$2,339,071
Average core deposits	$2,416,919	$2,375,002	$2,247,639	$2,378,465	$2,098,153
Allowance for credit losses, including unfunded commitment reserves	$37,268	$35,509	$32,997	$37,268	$32,997
Non-performing assets	$28,418	$19,420	$20,844	$28,418	$20,844
Allowance for credit losses as a percent of total gross loans and leases	1.20%	1.16%	1.16%	1.20%	1.16%
Non-performing assets as a percent of total assets	0.74%	0.52%	0.59%	0.74%	0.59%

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.
Calculation is annualized.

Fourth Quarter 2024 Compared to Third Quarter 2024

Net interest income increased $2.1 million, or 6.9%, to $33.1 million.

The increase in net interest income was driven by higher average loans and leases receivable and fees in lieu of interest, partially offset by a decrease in adjusted net interest margin. Average loans and leases receivable grew by $71.8 million, or 9.5% annualized, to $3.104 billion. Fees in lieu of interest, which vary from quarter to quarter based on client-driven activity, totaled $2.4 million, compared to $1.0 million in the prior quarter. Excluding fees in lieu of interest, net interest income increased $784,000, or 2.6%.
The yield on average interest-earning assets decreased 13 basis points to 6.84% from 6.97%. Excluding fees in lieu of interest, the yield on average interest-earning assets decreased 29 basis points to 6.57% from 6.85%. The adjusted interest-earning asset beta compared to the prior quarter was 46.8%. The change in yield of the respective interest-earning asset or the rate paid on interest-bearing liability compared to the change in the effective daily fed funds rate is commonly referred to as beta.
The rate paid for average interest-bearing core deposits decreased 45 basis points to 3.65% from 4.10%. The rate paid for average total bank funding decreased 26 basis points to 3.18% from 3.44%. Total bank funding is defined as total deposits plus Federal Home Loan Bank (“FHLB”) advances. The total core deposit beta compared to the prior quarter was 58.1%. The total bank funding beta compared to the prior quarter was 41.9%.
Net interest margin was 3.77% compared to 3.64% for the linked quarter. Adjusted net interest margin1 was 3.48%, down 2 basis points compared to 3.50% in the linked quarter. The decrease in adjusted net interest margin was driven by a decrease in the yield on interest-earning assets partially offset by a decrease in rate paid on total bank funding.
The Company maintains a long-term target for net interest margin in the range of 3.60% - 3.65%. Performance in future quarters will vary due to factors such as the level of fees in lieu of interest and the timing, pace and scale of future interest rate changes.

The Bank reported a provision expense of $2.7 million, compared to $2.1 million in the third quarter of 2024. The increase was driven by new specific reserves and charge-offs in the Commercial and Industrial ("C&I") loan portfolio, partially offset by decreases in general reserves primarily related to the annual review of model assumptions for both qualitative and quantitative factors.

Non-interest income increased $941,000, or 13.3%, to $8.0 million.

Private Wealth fee income increased $162,000, or 5.0% to $3.4 million. Private Wealth assets under management and administration measured $3.419 billion on December 31, 2024, up $20.8 million, or 2.4% annualized from the prior quarter. Fee income is based on overall asset levels and may vary based on seasonal activity and the timing of fluctuations in market values.
Gains on sale of SBA loans increased $478,000, or 103.9%, to $938,000. Gain on sale of SBA loans varies period to period based on the amount of closed and fully funded loans. While quarterly gains may vary, management expects the SBA loan sales to continue growing year-over-year.
Commercial loan swap fee income of $588,000 increased by $128,000, or 27.8%. Swap fee income varies from period to period based on loan activity and the interest rate environment.
Adjusted net interest margin is a non-GAAP measure representing net interest income excluding fees in lieu of interest and other recurring, but volatile, components of net interest margin divided by average interest-earning assets less other recurring, but volatile, components of average interest-earning assets.
Loan fee income increased $102,000 or 12.6% to $914,000.

Non-interest expense increased $45,000, or 0.2%, to $23.2 million, while operating expense increased $804,000, or 3.6%, to $23.4 million.

Compensation expense was $15.5 million, reflecting an increase of $337,000, or 2.2%, from the linked quarter primarily due to an increase in individual incentive and share-based compensation accruals. This was partially offset by a $261,000 decrease in annual cash bonus accrual. Average full-time equivalents (“FTEs”) for the fourth quarter of 2024 were 349, down from 355 in the linked quarter. The decrease in average FTEs is associated with temporary vacancies of existing positions that we expect to fill in 2025.
Data processing expense was $1.6 million, increasing $602,000, or 57.6%, from the linked quarter primarily due to a one-time expense as result of a change in credit card vendors.
Other non-interest expense was $517,000, decreasing $784,000, or 60.3%, from the linked quarter primarily due to an SBA recourse provision benefit of $687,000, or $0.07 after tax per share. This benefit, considered a change in estimate, is the result of a review of assumptions which identified that actual losses over the past three years were significantly below estimated losses. Management will evaluate the need for a recourse provision on a loan-by-loan basis.

Income tax expense decreased $1.5 million, or 62.4%, to $885,000. The effective tax rate was 5.8% for the three months ended December 31, 2024, compared to 18.3% for the linked quarter. The decrease is primarily due to a $1.7 million, or $0.21 after tax per share, partial release of a state deferred tax asset valuation allowance due to changes in projected taxable income based on revised state taxation guidance and 2023 state tax return actual results. The Company expects to report an effective tax rate between 16% and 18% for 2025.

Total period-end loans and leases receivable increased $63.6 million, or 8.3% annualized, to $3.114 billion. The average rate earned on average loans and leases receivable was 7.21%, down 11 basis points from 7.32% in the prior quarter. Excluding fees in lieu of interest, the average rate earned on average loans and leases receivable was 6.91%, down 29 basis points from 7.19% in the prior quarter. This decrease in yield was primarily due to the decrease in short-term market rates.

Commercial Real Estate (“CRE”) loans increased by $87.8 million, or 19.2% annualized, to $1.917 billion. The increase was primarily due to an increase in CRE non-owner occupied and multi-family loans in the Wisconsin markets as construction projects funded.
C&I loans decreased $22.6 million, or 7.69% annualized, to $1.152 billion. The decrease was primarily due to asset-based lending and accounts receivable financing payoffs, partially offset by an increase in floorplan line balances.

Total period-end core deposits increased $13.7 million, or 2.3% annualized, to $2.396 billion, compared to $2.383 billion. The average rate paid was 2.98%, down 36 basis points from 3.34% in the prior quarter.

New non-maturity deposit balances of $56.5 million were added at a weighted average rate of 2.92%. Certificate of deposit maturities of $119.8 million at a weighted average rate of 4.62% were replaced by new and renewed certificates of deposit of $98.5 million at a weighted average rate of 3.92%.

Period-end wholesale funding, including FHLB advances and brokered deposits, increased $94.4 million, or 10.7%, to $976.1 million. Consistent with the Bank’s long-held philosophy to minimize exposure to interest rate risk, management will continue to utilize the most efficient and cost-effective source of wholesale funds to match-fund fixed-rate loans as necessary.

Wholesale deposits increased $123.5 million, or 21.0%, to $710.7 million, compared to $587.2 million. The average rate paid on wholesale deposits decreased one basis point to 4.11% and the weighted average original maturity decreased to 3.9 years from 4.6 years.
FHLB advances decreased $29.1 million, or 9.9%, to $265.4 million, compared to $294.5 million. The average rate paid on FHLB advances decreased 5 basis points to 2.91% and the weighted average original maturity increased to 5.4 years from 4.6 years.

Non-performing assets increased $9.0 million to $28.4 million, or 0.74% of total assets, increasing as a percentage of total assets from 0.52% in the prior quarter. The increase is primarily driven by a conventional C&I loan that management identified as non-performing and recognized a specific reserve. We continue to expect full repayment of the previously disclosed Asset-Based Lending ("ABL") loan that defaulted during the second quarter of 2023. The liquidation process under Chapter 7 bankruptcy has delayed final resolution. Through the Bank's collection efforts, the current balance of this loan is $6.2 million, down from $8.8 million in the prior- year quarter. Excluding this ABL loan, non-performing assets totaled $22.2 million, or 0.58% of total assets in the current quarter and $13.0 million, or 0.35% of total assets in the linked quarter.

The allowance for credit losses, including the unfunded credit commitments reserve, increased $1.8 million, or 5.0%, as increases in new specific reserves and loan growth were partially offset by net charge-offs and changes in quantitative and qualitative factors. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.20% compared to 1.16% in the prior quarter.

Fourth Quarter 2024 Compared to Fourth Quarter 2023

Net interest income increased $3.6 million, or 12.2%, to $33.1 million.

The increase in net interest income primarily reflects an increase in average gross loans and leases and an increase in fees in lieu of interest. Fees in lieu of interest increased to $2.4 million from $1.1 million. Excluding fees in lieu of interest, net interest income increased $2.4 million, or 8.3%.
The yield on average interest-earning assets decreased one basis point to 6.84% from 6.85%. Excluding fees in lieu of interest, the yield on average interest-earning assets measured 6.57% compared to 6.71%. This decrease in yield was primarily due to the decrease in short-term market rates partially offset by the reinvestment of cash flows from the securities and fixed-rate loan portfolios.
The rate paid for average interest-bearing core deposits decreased 34 basis points to 3.65% from 3.99%. The rate paid for average total bank funding decreased 9 basis points to 3.18% from 3.27%.
Net interest margin increased 8 basis points to 3.77% from 3.69%. adjusted net interest margin decreased 2 basis points to 3.48% from 3.50%.

The Company reported a credit loss provision expense of $2.7 million, compared to $2.6 million in the fourth quarter of 2023. See the provision breakdown table below for more detail on the components of provision expense.

Non-interest income increased $911,000, or 12.8%, to $8.0 million.

Private Wealth fee income increased $493,000, or 16.8%, to $3.4 million. Private Wealth assets under management and administration measured $3.419 billion at December 31, 2024, up $297.2 million, or 9.5%.
Gain on sale of SBA loans increased $654,000 to $938,000. Gain on sale of SBA loans varies period to period based on the number of closed commitments. Management expects the SBA loan sales pipeline to remain strong as production increases and previously closed commitments fully fund and become eligible for sale.
Commercial loan swap fee income increased by $150,000, or 34.2%, to $588,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
Service charges on deposits increased $112,000, or 13.2%, to $960,000, primarily driven by new core deposit relationships.
Other fee income decreased $543,000, or 31.5%, to $1.2 million. The decrease was primarily due to lower returns on the Company’s investments in Small Business Investment Company ("SBIC") funds in the fourth quarter. Income from SBIC funds was $251,000 in the fourth quarter, compared to $860,000 in the prior year quarter. Income from SBIC funds varies from period to period based on changes in the realized and unrealized fair value of underlying investments.

Non-interest expense increased $1.6 million, or 7.2%, to $23.2 million. Operating expense increased $2.1 million, or 9.6%, to $23.4 million.

Compensation expense increased $1.1 million, or 7.5%, to $15.5 million. The increase in compensation expense was primarily due to an increase in average FTEs and annual merit increases and promotions. Average FTEs increased 2% to 349 in the fourth quarter of 2024, compared to 343 in the fourth quarter of 2023.
Data processing expense increased $711,000 or 76.1%, to $1.6 million, primarily due to a one-time expense resulting from a change in credit card vendors as well as an increase in core processing costs commensurate with loan and deposit account growth.
Computer software expense increased $268,000, or 20.3%, to $1.6 million, primarily due to our commitment to innovative technology to support growth initiatives, enhance productivity, and improve the client experience.
Marketing expense increased $204,000, or 28.2%, to $928,000, primarily due to increased business development efforts and advertising projects to support Company growth goals.
FDIC Insurance increased $143,000, or 24.4%, to $728,000 primarily due to an increase in total assets and an increase in use of brokered deposits.
Other expense decreased $835,000, or 61.8%, to $517,000 primarily due to an SBA recourse provision benefit.

Total period-end loans and leases receivable increased $263.8 million, or 9.3%, to $3.114 billion.

CRE loans increased $217.3 million, or 12.8%, to $1.917 billion, primarily due to increases in all loan categories in the Wisconsin market.
C&I loans increased $45.9 million, or 4.1%, to $1.152 billion, primarily due to growth in Equipment Finance and Floorplan Financing.

Total period-end core deposits grew $57.4 million, or 2.5%, to $2.396 billion, and the average rate paid decreased 22 basis points to 2.98%. The decrease in average rate paid on core deposits was primarily due to a decrease in short-term market rates. Total average core deposits grew $169.3 million, or 7.5%, to $2.417 billion.

Period-end wholesale funding increased $263.9 million, or 32.0%, to $976.1 million.

Wholesale deposits increased $253.0 million, or 55.3%, to $710.7 million, as the Bank utilized more wholesale deposits in lieu of FHLB advances to maintain excess liquidity and to match-fund fixed-rate assets. The average rate paid on wholesale deposits decreased 4 basis points to 4.11% and the weighted average original maturity decreased to 3.9 years from 4.0 years. Consistent with our balance sheet strategy to use the most efficient and cost-effective source of wholesale funding, the Company has entered into derivative contracts which hedge a portion of the wholesale deposits to reduce the fixed rate funding costs.
FHLB advances decreased $16.2 million, or 5.7%, to $265.4 million. The average rate paid on FHLB advances increased 46 basis points to 2.91% and the weighted average original maturity increased to 5.4 years from 5.2 years.

Non-performing assets increased to $28.4 million, or 0.74% of total assets, compared to $20.8 million, or 0.59% of total assets, driven by a conventional C&I loan and new past-due Equipment Finance loans within the C&I portfolio. Excluding the ABL loan described above for which we expect full repayment, non-performing assets totaled $22.2 million, or 0.58% of total assets and $12.0 million, or 0.34% of total assets in the prior year quarter.

The allowance for credit losses, including unfunded commitment reserves, increased $4.3 million to $37.3 million, compared to $33.0 million primarily due to an increase in specific reserves and loan growth, partially offset by net charge-offs and changes in general reserve. The allowance for credit losses as a percent of total gross loans and leases was 1.20%, compared 1.16% in the prior year.

Investor Presentation and Conference Call

On January 30, 2025, the Company posted an investor presentation to its website firstbusiness.bank under the “Investor Relations” tab which will also be furnished to the U.S. Securities and Exchange Commission on January 30, 2025. 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 fourth quarter 2024 earnings call to be held at 1:00 p.m. Central time on January 31, 2025, and from time to time when the Company's executives interact with shareholders, analysts, and other third parties. The conference call can be accessed at 800-549-8228 (289-819-1520 if outside the United States and Canada), using the conference call access code: FBIZ. Investors may also listen live via webcast at: https://events.q4inc.com/attendee/585942928. A replay of the call will be available through Friday, February 7, 2025, by calling 888-660-6264 or 289-819-1325 for international participants. 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, and the adverse effects of public health events on the global, national, and local economy.
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 service, administrative infrastructure, and internal management systems.
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.
The Company may be subject to 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, 2023, 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

SELECTED FINANCIAL CONDITION DATA

(Unaudited)	As of
(in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Assets
Cash and cash equivalents	$157,702	$131,972	$81,080	$72,040	$139,510
Securities available-for-sale, at fair value	341,392	313,336	308,852	314,114	297,006
Securities held-to-maturity, at amortized cost	6,741	6,907	7,082	8,131	8,503
Loans held for sale	13,498	8,173	6,507	4,855	4,589
Loans and leases receivable	3,113,128	3,050,079	2,985,414	2,910,864	2,850,261
Allowance for credit losses	(35,785)	(33,688)	(33,088)	(32,799)	(31,275)
Loans and leases receivable, net	3,077,343	3,016,391	2,952,326	2,878,065	2,818,986
Premises and equipment, net	5,227	5,478	6,381	6,268	6,190
Repossessed assets	51	56	54	317	247
Right-of-use assets	5,702	5,789	6,041	6,297	6,559
Bank-owned life insurance	57,210	56,767	56,351	55,948	55,536
Federal Home Loan Bank stock, at cost	11,616	12,775	11,901	13,326	12,042
Goodwill and other intangible assets	11,912	11,834	11,841	11,950	12,023
Derivatives	65,762	42,539	70,773	69,703	55,597
Accrued interest receivable and other assets	99,059	103,707	97,872	90,344	91,058
Total assets	$3,853,215	$3,715,724	$3,617,061	$3,531,358	$3,507,846
Liabilities and Stockholders’ Equity
Core deposits	$2,396,429	$2,382,730	$2,309,635	$2,297,843	$2,339,071
Wholesale deposits	710,711	587,217	575,548	457,563	457,708
Total deposits	3,107,140	2,969,947	2,885,183	2,755,406	2,796,779
Federal Home Loan Bank advances and<br> other borrowings	320,049	349,109	327,855	381,718	330,916
Lease liabilities	7,926	8,054	8,361	8,664	8,954
Derivatives	57,068	45,399	61,821	61,133	51,949
Accrued interest payable and other liabilities	32,443	31,233	28,671	26,649	29,660
Total liabilities	3,524,626	3,403,742	3,311,891	3,233,570	3,218,258
Total stockholders’ equity	328,589	311,982	305,170	297,788	289,588
Total liabilities and stockholders’ equity	$3,853,215	$3,715,724	$3,617,061	$3,531,358	$3,507,846

STATEMENTS OF INCOME

(Unaudited)	As of and for the Three Months Ended					As of and for the Year Ended
(Dollars in thousands, except per share amounts)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Total interest income	$60,110	$59,327	$57,910	$55,783	$54,762	$233,130	$194,928
Total interest expense	26,962	28,320	27,370	26,272	25,222	108,924	82,340
Net interest income	33,148	31,007	30,540	29,511	29,540	124,206	112,588
Provision for credit losses	2,701	2,087	1,713	2,326	2,573	8,827	8,182
Net interest income after provision for credit losses	30,447	28,920	28,827	27,185	26,967	115,379	104,406
Private wealth management service fees	3,426	3,264	3,461	3,111	2,933	13,262	11,425
Gain on sale of SBA loans	938	460	349	195	284	1,942	2,055
Service charges on deposits	960	920	951	940	848	3,771	3,131
Loan fees	914	812	826	847	869	3,399	3,363
Loss on sale of securities	—	—	—	(8)	—	(8)	(45)
Swap fees	588	460	157	198	438	1,403	2,964
Other non-interest income	1,179	1,148	1,681	1,474	1,722	5,482	8,415
Total non-interest income	8,005	7,064	7,425	6,757	7,094	29,251	31,308
Compensation	15,535	15,198	16,215	16,157	14,450	63,105	61,059
Occupancy	588	585	593	607	571	2,373	2,381
Professional fees	1,323	1,305	1,472	1,571	1,313	5,671	5,325
Data processing	1,647	1,045	1,182	1,018	936	4,892	3,826
Marketing	928	922	850	818	724	3,518	2,889
Equipment	301	333	335	345	340	1,314	1,340
Computer software	1,585	1,608	1,555	1,418	1,317	6,166	4,985
FDIC insurance	728	810	612	610	585	2,760	2,238
Other non-interest expense	517	1,301	1,065	798	1,352	3,681	4,532
Total non-interest expense	23,152	23,107	23,879	23,342	21,588	93,480	88,575
Income before income tax expense	15,300	12,877	12,373	10,600	12,473	51,150	47,139
Income tax expense	885	2,351	1,917	1,752	2,703	6,905	10,112
Net income	$14,415	$10,526	$10,456	$8,848	$9,770	$44,245	$37,027
Preferred stock dividends	219	218	219	219	219	875	875
Net income available to common shareholders	$14,196	$10,308	$10,237	$8,629	$9,551	$43,370	$36,152
Per common share:
Basic earnings	$1.71	$1.24	$1.23	$1.04	$1.15	$5.20	$4.33
Diluted earnings	1.71	1.24	1.23	1.04	1.15	5.20	4.33
Dividends declared	0.2500	0.2500	0.2500	0.2500	0.2275	1.0000	0.9100
Book value	38.17	36.17	35.35	34.41	33.39	38.17	33.39
Tangible book value	36.74	34.74	33.92	32.97	31.94	36.74	31.94
Weighted-average common shares<br> outstanding(1)	8,107,308	8,111,215	8,113,246	8,125,319	8,110,462	8,148,259	8,131,251
Weighted-average diluted common shares<br> outstanding(1)	8,107,308	8,111,215	8,113,246	8,125,319	8,110,462	8,148,259	8,131,251

Excluding participating securities.

NET INTEREST INCOME ANALYSIS

(Unaudited)	For the Three Months Ended
(Dollars in thousands)	December 31, 2024	September 30, 2024	December 31, 2023
	AverageBalance	AverageBalance	AverageBalance
Interest-earning assets
Commercial real estate and<br> other mortgage loans(1)	1,879,136	1,805,020	1,675,926
Commercial and industrial<br> loans(1)	1,176,175	1,177,112	1,089,558
Consumer and other loans(1)	48,392	49,748	45,309
Total loans and leases<br> receivable(1)	3,103,703	3,031,880	2,810,793
Mortgage-related securities(2)	290,471	269,842	221,708
Other investment securities(3)	45,174	51,446	67,444
FHLB stock	11,788	11,960	12,960
Short-term investments	65,254	40,406	86,580
Total interest-earning assets	3,516,390	3,405,534	3,199,485
Non-interest-earning assets	230,218	231,353	255,167
Total assets	3,746,608	3,636,887	3,454,652
Interest-bearing liabilities
Transaction accounts	928,428	864,936	785,480
Money market	833,501	850,590	734,903
Certificates of deposit	210,307	219,315	278,438
Wholesale deposits	594,578	531,472	450,880
Total interest-bearing<br> deposits	2,566,814	2,466,313	2,249,701
FHLB advances	270,476	278,103	301,773
Other borrowings	54,672	50,642	49,394
Total interest-bearing<br> liabilities	2,891,962	2,795,058	2,600,868
Non-interest-bearing demand<br> deposit accounts	444,683	440,161	448,818
Other non-interest-bearing<br> liabilities	90,555	91,520	119,833
Total liabilities	3,427,200	3,326,739	3,169,519
Stockholders’ equity	319,408	310,148	285,133
Total liabilities and<br> stockholders’ equity	3,746,608	3,636,887	3,454,652
Net interest income
Interest rate spread
Net interest-earning assets	624,428	610,476	598,617
Net interest margin

All values are in US Dollars.

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.
Includes amortized cost basis of assets available for sale and held to maturity.
Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.
Represents annualized yields/rates.

NET INTEREST INCOME ANALYSIS

	For the Year Ended December 31,
	2024	2023	2022
	AverageBalance	AverageBalance	AverageBalance
	(Dollars in Thousands)
Interest-earning assets
Commercial real estate and other mortgage loans(1)	1,793,041	1,586,967	1,484,239
Commercial and industrial loans(1)	1,153,955	1,013,866	771,056
Consumer and other loans(1)	49,885	47,018	49,695
Total loans and leases receivable(1)	2,996,881	2,647,851	2,304,990
Mortgage-related securities(2)	266,098	200,383	173,495
Other investment securities(3)	56,301	62,921	51,700
FHLB and FRB stock	12,167	15,162	16,462
Short-term investments	59,853	54,311	30,845
Total interest-earning assets	3,391,300	2,980,628	2,577,492
Non-interest-earning assets	234,973	231,521	175,424
Total assets	3,626,273	3,212,149	2,752,916
Interest-bearing liabilities
Transaction accounts	884,321	689,500	503,668
Money market accounts	815,603	681,336	761,469
Certificates of deposit	237,228	273,387	97,448
Wholesale deposits	515,197	346,285	48,825
Total interest-bearing deposits	2,452,349	1,990,508	1,411,410
FHLB advances	282,437	351,990	414,191
Other borrowings	51,072	38,891	43,818
Junior subordinated notes(4)	—	—	2,429
Total interest-bearing liabilities	2,785,858	2,381,389	1,871,848
Non-interest-bearing demand deposit accounts	441,313	453,930	566,230
Other non-interest-bearing liabilities	92,708	102,668	65,611
Total liabilities	3,319,879	2,937,987	2,503,689
Stockholders’ equity	306,394	274,162	249,227
Total liabilities and stockholders’ equity	3,626,273	3,212,149	2,752,916
Net interest income
Interest rate spread
Net interest-earning assets	605,442	599,239	705,644
Net interest margin
Average interest-earning assets to average interest-bearing liabilities	121.73%	125.16%	137.70%
Return on average assets(4)	1.20%	1.13%	1.46%
Return on average common equity(4)	14.73%	13.79%	16.79%
Average equity to average assets	8.45%	8.54%	9.05%
Non-interest expense to average assets(4)	2.58%	2.76%	2.89%

All values are in US Dollars.

BETA ANALYSIS

	For the Three Months Ended
(Unaudited)	December 31, 2024	September 30, 2024
	Average Yield/Rate (3)	Average Yield/Rate (3)	Increase (Decrease)
Total loans and leases<br> receivable (a)	7.21%	7.32%	(0.11)%
Total interest-earning assets(b)	6.84%	6.97%	(0.13)%
Adjusted total loans and leases<br> receivable (1)(c)	6.91%	7.20%	(0.29)%
Adjusted total interest-earning<br> assets (1)(d)	6.57%	6.86%	(0.29)%
Total core deposits(e)	2.98%	3.34%	(0.36)%
Total bank funding(f)	3.18%	3.44%	(0.26)%
Net interest margin(g)	3.77%	3.64%	0.13%
Adjusted net interest margin(h)	3.48%	3.51%	(0.03)%
Effective fed funds rate (2)(i)	4.65%	5.27%	(0.62)%
Beta Calculations:
Total loans and leases<br> receivable(a)/(i)			17.6%
Total interest-earning assets(b)/(i)			21.3%
Adjusted total loans and leases<br> receivable (1)(c)/(i)			46.8%
Adjusted total interest-earning<br> assets (1)(d)/(i)			46.8%
Total core deposits(e/i)			58.1%
Total bank funding(f)/(i)			41.9%
Net interest margin(g/i)			(21.0)%
Adjusted net interest margin(h/i)			4.8%

PROVISION FOR CREDIT LOSS COMPOSITION

(Unaudited)	For the Three Months Ended					For the Twelve Months Ended
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Change due to qualitative factor changes	$(460)	$(444)	$496	$740	$(432)	$332	$33
Change due to quantitative factor<br> changes	(598)	(330)	150	(199)	(260)	(977)	(1,453)
Charge-offs	1,132	1,619	1,583	921	724	5,255	1,781
Recoveries	(190)	(91)	(191)	(227)	(114)	(699)	(548)
Change in reserves on individually<br> evaluated loans, net	2,579	757	(1,037)	629	2,008	2,928	4,330
Change due to loan growth, net	577	616	680	354	629	2,227	3,652
Change in unfunded commitment<br> reserves	(339)	(40)	32	108	17	(239)	387
Total provision for credit losses	$2,701	$2,087	$1,713	$2,326	$2,572	$8,827	$8,182

PERFORMANCE RATIOS

	For the Three Months Ended					For the Twelve Months Ended
(Unaudited)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Return on average assets (annualized)	1.52%	1.13%	1.14%	0.98%	1.11%	1.20%	1.13%
Return on average tangible common equity (annualized)	19.21%	14.40%	14.73%	12.79%	14.64%	15.35%	14.45%
Efficiency ratio	56.94%	59.44%	62.75%	63.76%	58.34%	60.61%	60.99%
Interest rate spread	3.11%	2.92%	2.95%	2.88%	2.97%	2.96%	3.08%
Net interest margin	3.77%	3.64%	3.65%	3.58%	3.69%	3.66%	3.78%
Average interest-earning assets to average interest-bearing liabilities	121.59%	121.84%	121.37%	122.15%	123.02%	121.73%	125.16%

ASSET QUALITY RATIOS

(Unaudited)	As of
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Non-accrual loans and leases	$28,367	$19,364	$18,999	$19,829	$20,597
Repossessed assets	51	56	54	317	247
Total non-performing assets	$28,418	$19,420	$19,053	$20,146	$20,844
Non-accrual loans and leases as a<br> percent of total gross loans and leases	0.91%	0.63%	0.64%	0.68%	0.72%
Non-performing assets as a percent of<br> total gross loans and leases plus<br> repossessed assets	0.91%	0.64%	0.64%	0.69%	0.73%
Non-performing assets as a percent of<br> total assets	0.74%	0.52%	0.53%	0.57%	0.59%
Allowance for credit losses as a percent<br> of total gross loans and leases	1.20%	1.16%	1.17%	1.19%	1.16%
Allowance for credit losses as a percent<br> of non-accrual loans and leases	131.38%	183.38%	183.96%	174.64%	160.21%

NET CHARGE-OFFS (RECOVERIES)

(Unaudited)	For the Three Months Ended					For the Twelve Months Ended
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Charge-offs	$1,132	$1,619	$1,583	$921	$724	$5,255	$1,781
Recoveries	(190)	(91)	(191)	(227)	(114)	(699)	(548)
Net charge-offs (recoveries)	$942	$1,528	$1,392	$694	$610	$4,556	$1,233
Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized)	0.12%	0.20%	0.19%	0.10%	0.09%	0.15%	0.05%

CAPITAL RATIOS

	As of and for the Three Months Ended
(Unaudited)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Total capital to risk-weighted assets	12.08%	11.72%	11.45%	11.36%	11.19%
Tier I capital to risk-weighted assets	9.45%	9.11%	8.99%	8.86%	8.74%
Common equity tier I capital to risk-<br> weighted assets	9.10%	8.76%	8.64%	8.51%	8.38%
Tier I capital to adjusted assets	8.78%	8.68%	8.51%	8.45%	8.43%
Tangible common equity to tangible<br> assets	7.93%	7.78%	7.80%	7.78%	7.60%

LOAN AND LEASE RECEIVABLE COMPOSITION

(Unaudited)	As of
(in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Commercial real estate:
Commercial real estate - owner occupied	$273,397	$259,532	$258,636	$263,748	$256,479
Commercial real estate - non-owner occupied	845,298	768,195	777,704	792,858	773,494
Construction	221,086	266,762	229,181	202,382	193,080
Multi-family	530,853	494,954	470,176	453,321	450,529
1-4 family	46,496	39,933	39,680	27,482	26,289
Total commercial real estate	1,917,130	1,829,376	1,775,377	1,739,791	1,699,871
Commercial and industrial	1,151,720	1,174,295	1,161,711	1,120,779	1,105,835
Consumer and other	45,000	46,610	48,145	50,020	44,312
Total gross loans and leases receivable	3,113,850	3,050,281	2,985,233	2,910,590	2,850,018
Less:
Allowance for credit losses	35,785	33,688	33,088	32,799	31,275
Deferred loan fees	722	202	(181)	(274)	(243)
Loans and leases receivable, net	$3,077,343	$3,016,391	$2,952,326	$2,878,065	$2,818,986

DEPOSIT COMPOSITION

(Unaudited)	As of
(in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Non-interest-bearing transaction accounts	$436,111	$428,012	$406,804	$400,267	$445,376
Interest-bearing transaction accounts	965,637	930,252	841,146	818,080	895,319
Money market accounts	809,695	817,129	837,569	813,467	711,245
Certificates of deposit	184,986	207,337	224,116	266,029	287,131
Wholesale deposits	710,711	587,217	575,548	457,563	457,708
Total deposits	$3,107,140	$2,969,947	$2,885,183	$2,755,406	$2,796,779
Uninsured deposits	$980,278	$1,088,496	$1,011,977	$995,428	$994,687
Less: uninsured deposits collateralized by pledged assets	6,864	10,755	34,810	16,622	17,051
Total uninsured, net of collateralized deposits	973,414	1,077,741	977,167	978,806	977,636
% of total deposits	31.3%	36.3%	33.9%	35.5%	35.0%

SOURCES OF LIQUIDITY

(Unaudited)	As of
(in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Short-term investments	$128,207	$86,670	$54,680	$46,984	$107,162
Collateral value of unencumbered pledged loans	444,453	397,852	401,602	340,639	367,471
Market value of unencumbered securities	310,125	279,191	289,104	288,965	259,791
Readily accessible liquidity	882,785	763,713	745,386	676,588	734,424
Fed fund lines	45,000	45,000	45,000	45,000	45,000
Excess brokered CD capacity(1)	981,463	1,102,767	1,051,678	1,166,661	1,231,791
Total liquidity	$1,909,248	$1,911,480	$1,842,064	$1,888,249	$2,011,215
Total uninsured, net of collateralized deposits	973,414	1,077,741	977,167	978,806	977,636

Bank internal policy limits brokered CDs to 50% of total bank funding when combined with FHLB advances.

PRIVATE WEALTH OFF-BALANCE SHEET COMPOSITION

(Unaudited)	As of
(in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Trust assets under management	$3,160,449	$3,145,789	$3,008,897	$3,080,951	$2,898,516
Trust assets under administration	258,255	252,152	239,766	239,249	223,013
Total trust assets	$3,418,704	$3,397,941	$3,248,663	$3,320,200	$3,121,529

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)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Common stockholders’ equity	$316,597	$299,990	$293,178	$285,796	$277,596
Less: Goodwill and other intangible assets	(11,912)	(11,834)	(11,841)	(11,950)	(12,023)
Tangible common equity	$304,685	$288,156	$281,337	$273,846	$265,573
Common shares outstanding	8,293,928	8,295,017	8,294,589	8,306,573	8,314,778
Book value per share	$38.17	$36.17	$35.35	$34.41	$33.39
Tangible book value per share	36.74	34.74	33.92	32.97	31.94

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. Adjusted TCE ratio is defined as TCE adjusted for net fair value adjustments of financial assets and liabilities. For more information on fair value adjustments please refer to Note 19 - Fair Value Disclosures in the annual report on Form 10-K for the year ended December 31, 2023. 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.

	As of
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023
Common stockholders’ equity	$316,597	$299,990	$293,178	$285,796	$277,596
Less: Goodwill and other intangible assets	(11,912)	(11,834)	(11,841)	(11,950)	(12,023)
Tangible common equity (a)	$304,685	$288,156	$281,337	$273,846	$265,573
Total assets	$3,853,215	$3,715,724	$3,617,061	$3,531,358	$3,507,846
Less: Goodwill and other intangible assets	(11,912)	(11,834)	(11,841)	(11,950)	(12,023)
Tangible assets (b)	$3,841,303	$3,703,890	$3,605,220	$3,519,408	$3,495,823
Tangible common equity to tangible assets	7.93%	7.78%	7.80%	7.78%	7.60%
Fair Value Adjustments:
Financial assets - MTM (c)	$(26,580)	$(17,615)	$(17,432)	$(29,019)	$(29,136)
Financial liabilities - MTM (d)	$5,946	$8,358	$9,032	$12,560	$11,945
Net MTM, after-tax e = (c-d)*(1-21%)	$(16,301)	$(7,313)	$(6,636)	$(13,003)	$(13,581)
Adjusted tangible equity f = (a-e)	$288,384	$280,843	$274,701	$260,843	$251,992
Adjusted tangible assets g = (b-c)	$3,814,723	$3,686,275	$3,587,788	$3,490,389	$3,466,687
Adjusted TCE ratio (f/g)	7.56%	7.62%	7.66%	7.47%	7.27%

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 Twelve Months Ended
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Total non-interest expense	$23,152	$23,107	$23,879	$23,342	$21,588	$93,480	$88,575
Less:
Net loss on repossessed assets	5	11	65	86	4	168	13
Impairment of tax credit investments	400	0	0	0	0	400	0
SBA recourse (benefit) provision	(687)	466	(9)	126	210	(104)	775
Total operating expense (a)	$23,434	$22,630	$23,823	$23,130	$21,374	$93,016	$87,787
Net interest income	$33,148	$31,007	$30,540	$29,511	$29,540	$124,206	$112,588
Total non-interest income	8,005	7,064	7,425	6,757	7,094	29,251	31,308
Less:
Net loss on sale of securities	—	—	—	(8)	—	(8)	(45)
Adjusted non-interest income	8,005	7,064	7,425	6,765	7,094	29,259	31,353
Total operating revenue (b)	$41,153	$38,071	$37,965	$36,276	$36,634	$153,465	$143,941
Efficiency ratio	56.94%	59.44%	62.75%	63.76%	58.34%	60.61%	60.99%
Pre-tax, pre-provision adjusted earnings (b - a)	$17,719	$15,441	$14,142	$13,146	$15,260	$60,449	$56,154
Average total assets	$3,746,608	$3,636,887	$3,592,215	$3,527,941	$3,454,652	$3,626,273	$3,212,149

ADJUSTED NET INTEREST MARGIN

(Unaudited)	For the Three Months Ended					For the Twelve Months Ended
(Dollars in thousands)	December 31,<br>2024	September 30,<br>2024	June 30,<br>2024	March 31,<br>2024	December 31,<br>2023	December 31,<br>2024	December 31,<br>2023
Interest income	$60,110	$59,327	$57,910	$55,783	$54,762	$233,130	$194,928
Interest expense	26,962	28,320	27,370	26,272	25,222	108,924	82,340
Net interest income (a)	33,148	31,007	30,540	29,511	29,540	124,206	112,588
Less:
Fees in lieu of interest	2,359	1,002	1,306	849	1,121	5,516	3,452
FRB interest income and FHLB dividend income	1,062	841	959	1,436	1,466	4,298	4,056
Adjusted net interest income (b)	$29,727	$29,164	$28,275	$27,226	$26,953	$114,392	$105,080
Average interest-earning assets (c)	$3,516,390	$3,405,534	$3,347,027	$3,294,717	$3,199,485	$3,391,300	$2,980,628
Less:
Average FRB cash and FHLB stock	76,576	52,603	61,082	97,036	99,118	71,784	69,014
Average non-accrual loans and leases	19,077	18,954	19,807	20,540	18,602	19,589	10,450
Adjusted average interest-earning assets (d)	$3,420,737	$3,333,977	$3,266,138	$3,177,141	$3,081,765	$3,299,927	$2,901,164
Net interest margin (a / c)	3.77%	3.64%	3.65%	3.58%	3.69%	3.66%	3.78%
Adjusted net interest margin (b / d)	3.48%	3.50%	3.46%	3.43%	3.50%	3.47%	3.62%

Investor Presentation Fourth Quarter 2024

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, and the adverse effects of public health events on the global, national, and local economy, which may affect the Corporation’s credit quality, revenue, and business operations; (ii) Competitive pressures among depository and other financial institutions nationally and in our markets; (iii) Increases in defaults by borrowers and other delinquencies; (iv) Our ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems; (v) Fluctuations in interest rates and market prices; (vi) Changes in legislative or regulatory requirements applicable to us and our subsidiaries; (vii) Changes in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations; (viii) Fraud, including client and system failure or breaches of our network security, including our internet banking activities; (ix) Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portions of SBA loans. (x) 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, (xi) the proportion of the Corporation’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk, and (xii) 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 risks could cause actual results to differ materially from what we have 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, 2023 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 Q4 2024 Results 4 Company Snapshot 5 Strategic Plan 6 Why FBIZ? 10 Drivers of Growth & Profitability 18 Appendix 27

EPS $1.71 Private Wealth $3.4 B in AUM&A Loans +8% NIM 3.77% TBV per Share +23% Fourth Quarter 2024 Highlights Record operating revenue, strong net interest margin, and positive operating leverage drive record pre-tax, pre-provision earnings Note: Percentages represent growth over the prior quarter. PTPP Income +15% Strong earnings generation produced a 23.0% annualized increase in tangible book value per share compared to the linked quarter and 15.0% compared to the prior year quarter Robust Private Wealth Management assets under management grew to a record $3.419 billion PWM fee income totaled $3.4 million for Q4 2024, up 16.8% over Q4 2023 Record performance reflects continued balance sheet growth coupled with operational efficiency PTPP income totaled $17.7 million for Q4 2024, up 16.1% from Q4 2023 Consistent loan growth throughout the Company Loans grew 8.3% annualized from the prior quarter and 9.3% from the Q4 2023 Match funding strategy and pricing discipline produced a strong net interest margin of 3.77% Fees in lieu of interest grew $1.4 million for Q4 2024, up 139% from the prior quarter Reported earnings elevated by tax benefit and SBA recourse reserve Excluding these benefits the fourth quarter EPS was $1.43

Serving unique needs of business executives, entrepreneurs, and high net worth individuals through Business Banking, Private Wealth, and Bank Consulting Within Business Banking, our commercial banking offerings are focused on our stable and attractive Midwest markets while Specialty Finance products and services have national reach Efficient and highly scalable model with very limited branch network and exceptional digital capabilities Headquarters: Madison, WI Mission: Build long-term shareholder value as an entrepreneurial banking partner that drives success for businesses, investors, and our communities FBIZ Business Banking2 $3.8 Billion3 FBIZ Private Wealth $3.4 Billion3 IN ASSETS UNDER MANAGEMENT & ADMINISTRATION Market capitalization as of 1/29/2025. Consists of all on-balance sheet assets for First Business Financial Services, Inc. on a consolidated basis. Data as of 12/31/2024. 5 IN TOTAL ASSETS First Business Bank NASDAQ: FBIZ — $405 million Market Cap1

Five Year Strategic Plan

2024-2028 Strategies OBJECTIVE 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 Goals & Progress Plan aims to deliver above average total shareholder return compared to peer median ROATCE and TBV Growth includes the impact of a $1.7 million benefit from a partial release of a state deferred tax valuation allowance recognized in Q4 2024. Revenue growth muted in 2024 due to exceptional SBIC and swap fee income recognized in 2023. Represents data from the 2024 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 2024 survey. Goals 2024-2028 2024 ROATCE1 ≥15% by 2028 15.4% TBV Growth1 ≥10% per year 15.0% Revenue Growth2 ≥10% per year 6.6% Efficiency Ratio <60% by 2028 60.61% Core Deposits to Total Funding ≥75% 71% Employee Engagement & Participation3 ≥85% 86% Net Promoter Score4 ≥70 70

Note: Peer Group defined as publicly traded banks with total assets between $1.75 billion and $7.0 billion. 1-Year, 3-Year, and 5-Year TSR is through 12/31/2024. Data as of 9/30/2024. Total Shareholder Return Above Peer Group Median Despite recent outperformance, Price/LTM EPS remains below peers

WHY FBIZ?

Growing Profitability FBIZ’s Historic and 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 business expertise Strong & Stable Deposit Franchise Track record of double-digit growth driven by deep client relationships Creates relatively 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 long-term positive operating leverage Consistent double-digit TBV growth History of double-digit top line revenue growth 13% 5-year Loan CAGR 2019-2024 12% 5-year Core Deposit CAGR 2019-2024 12% 5-year TBV/Share CAGR 2019-2024

Balanced and Steady Growth Operating Fundamentals Drive Earnings Power 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". "Adjusted Net Interest Income" and "Net Operating Income" are non-GAAP measurements. See appendix for non-GAAP reconciliation schedules. "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. "Fees in Lieu of Interest" is defined as prepayment fees, asset-based loan fees, non-accrual interest, and loan fee amortization. Steady revenue expansion supported by: Double-digit 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 43% of total non-interest income Strategic investments drive growth while maintaining positive long-term operating leverage Strong earnings power reflected in 2024 ROAA of 1.20%. 5 Net Operating Income Year CAGR = XX% Operating Income Highlights

Margin Strength Through Rate Cycles Match-Funding Strategy Better Positions Balance Sheet for Rate Changes Peer Group defined as publicly-traded banks with total assets between $1.75 billion and $7.0 billion.

Disciplined Interest Rate Risk Management Match-Funding Strategy Insulates Balance Sheet throughout Various Rate Cycles Methodical Approach 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 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 54% as of 12/31/24 Balances as of 12/31/24: 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 46% as of 12/31/24 46% Fixed Rate Loans as of 9/30/24 54% Variable Rate Loans as of 9/30/24 Loans Deposits SOFR = $1.268 B SOFR = $678 MM Prime = $400.0 MM Managed rate, non-maturity = $1.011 B

Operating Leverage Outperforms Peers History of Growing Revenues Faster than Expenses Note: Peer group defined as publicly traded bank with total assets between $1.75 billion and $7 billion. 3Q24 represent data for the trailing 12 months. Peer data not yet available for full year 2024. 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 2019-TTM 9/30/24 We aim to achieve 10% revenue growth on an annual basis, with positive operating leverage Despite headwinds related to outsized NIM in 2023, we achieved positive operating leverage in 2024 for the sixth consecutive year 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 10.4% outpaces operating expense 5-year CAGR of 8.4% 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 1 FBIZ Avg2 = 3.3% Peer Avg2 = -1.8%

Growth and Profitability Exceeds Peers Top Line Revenue Growth and Efficient Capital Management Drives Strong Profitability Note: Peer group defined as publicly traded bank with total assets between $1.75 billion and $7 billion. Peer data not yet available for full year 2024.

Shareholder Value Creation History of Steady, Consistent TBV and Dividend Growth Through Economic and Interest Rate Cycles TBV 5YR CAGR = 12% Div/Share 5YR CAGR = 11% CAGR = 11%

Drivers of Growth & Profitability

Relationship Banking Key to Success Solid Core Deposit Growth Despite Banking Industry Trends Long-term client relationships drive core deposit growth, aided by clients’ comfort with utilizing the Bank’s longstanding extended deposit insurance products Successful execution of client deposit initiatives has attracted new relationships and increased gross treasury management service charges Long-held top-quartile deposit pricing strategy promotes retention Net Promoter Score1 of 70 is well above industry benchmark score of 24. 1. Net promoter score benchmarks reported in “The State of B2B Account Experience: B2B NPS & CX Benchmarking Report,” CustomerGauge, 2021 NPS benchmarks reported in “The State of B2B Account Experience: B2B NPS & CX Benchmarking Report,” CustomerGauge, 2021. 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. The score ranges from -100 to +100. 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. Growth over prior year = 13% Growth over prior year = 11%

Core Deposit Strength FBIZ Continues to Grow Core Deposits as Industry and Peers Decline Source: S&P Capital IQ. Core Deposits defined as deposits in U.S. offices excluding time deposits over $250,000 and brokered deposits of $250,000 or less. Peer banks defined as publicly traded bank with total assets between $1.75 billion and $7 billion. Core Deposit2 Growth: 2Q22 through 1Q23 FBIZ 3.8% Proxy Peers Median -6.8% All Publicly Traded Banks Median Public Banks with $1.5-$5.5 Assets Median

Deposit-Centric Strategy Key to Growth Double Digit Core Deposit Growth Supports Double Digit Loan Growth Core deposits defined as total deposits less wholesale deposits. Period end balances are presented. Deposit growth remains one of our major strategic priorities under our new 5-year plan Deposit-centric sales strategy led by treasury management sales located in all bank markets with direct production and outside calling goals Bankers trained to fund their loan production with deposit growth goals Deposit-focused individual banker incentive compensation and bank level bonus plans 5YR CAGR = 11.4% DDA 5-Year CAGR = 8% Total Core Deposits 5-Year CAGR = 12%

Diversified Lending Growth Continuing to Grow Higher Yielding C&I Lending Mix Period end balances excluding PPP loans are presented. On January 1, 2023, the Bank adopted ASU 2016-03 Financial Instruments - Credit losses (“ASC 326”). The Bank adopted ASC 326 using the modified retrospective method which does not require restatement of prior periods. The balances as of December 31, 2023 reflect a reclassification of $43 million to commercial and industrial from commercial real estate, and $7 million from consumer and other to commercial real estate. Average balances excluding PPP loans are presented. Excluding the impact of PPP loan fees and interest income 5 Year CAGR = 13% Exceeds strategic plan goal of 10%

Robust Profitability Metrics Strong Balance Sheet Growth and Resilient Net Interest Margin Support Robust ROAA Note: Peer group defined as publicly-traded bank with total assets between $1.75 billion and $7 billion. Peer data not yet available for 4Q24. "Adjusted Net Interest Margin" is a non-GAAP measurement. See appendix for non-GAAP reconciliation schedules. "Recurring, variable components" is defined as fees in lieu of interest, FRB interest income, and FHLB dividend income. $1.7 million benefit from a partial release of a state deferred tax valuation allowance recognized in Q4 2024 3

Net Interest Margin Components Wholesale funding defined as brokered CDs and non-reciprocal interest-bearing transaction accounts plus FHLB advances. 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. NIM range in forecast Rate assumptions in forecast Beta outlook Impact under differing scenarios 5YR CAGR = 11.4%

Solid Asset Quality Non-Performing Assets/Total Assets Remain Well Managed Note: Peer group defined as publicly-traded bank with total assets between $1.75 billion and $7.0 billion. Peer data not yet available for 4Q24. Represents a fully collateralized ABL credit, for which the Company expects full repayment. Excluding this credit, non-performing assets totaled $22.2 million, or 0.58% of total assets as of 12/31/24. For more detailed definitions on credit quality categories see the Bank's 10-K filed with the SEC on February 28, 2024. As of 12/31/2024, 95% of the loan portfolio was classified in category I(2) and 99% of loans were current. In the ABL pool, we continue to expect full repayment related to the second quarter 2023 $10.9 million default, now paid down to $6.2 million. Excluding this credit, non-performing assets totaled $22.2 million, or 0.58% of total assets as of 12/31/24. Isolated weakness in the $41 million transportation segment of the Equipment Finance portfolio.

Maturing Over Time Equipment Finance Portfolio by Industry For more detailed definitions on credit quality categories see the Bank's 10-Q filed with the SEC on July 26, 2024. Category IV represents non-performing loans. Equipment Finance Portfolio Analysis Strong and diversified portfolio; Transportation sub-category showing sector-specific weakness Asset Quality Breakdown1 Equipment Finance (EF) loans diversified across industries EF comprised 28% of C&I loans and 10% of Total Loans at 12/31/2024 Transportation sector comprised 13% of EF, 3.6% of C&I, and 1.3% of Total Loans Stable asset quality in EF portfolio excluding Transportation sector, which is experiencing isolated industry weakness Equipment Finance excl. Transportation 12/31/2022 12/31/2023 12/31/2024 Total Portfolio $147.0 MM $226.4 MM $284.3 MM Category I 96% 96% 98% Category II 2% 1% 0% Category III 1% 1% 0% Category IV 1% 2% 2% Transportation 12/31/2022 12/31/2023 12/31/2024 Total Portfolio $50.8 MM $60.9 MM $41.2 MM Category I 98% 90% 87% Category II 1% 1% 0% Category III 0% 2% 0% Category IV 1% 7% 13%

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 Note: 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. The score ranges from -100 to +100. Striving for Continuous Improvement Net Promoter Score is the most widely used measure of likelihood to recommend a company to others Anonymous survey conducted annually by a third party to assess client satisfaction Allows us to compare our performance against other leading financial institutions

ESG Framework Environmental, social, and governance practices are integrated into our core business strategy Branch-lite model with only one location in each of the banking markets we serve Support hybrid and remote work options to reduce carbon emissions related to commuting (even prior to COVID) Reduced paper usage via implementation of Docusign Minimal technology eco-footprint by continued use of state-of-the art technology to minimize power consumption Annually recycle company-generated and employee-owned e-waste Employee e-waste recycling is now offered year-round Named to the national list of Top Workplaces USA for the third straight year Awarded nine culture of excellence awards by Top Workplaces Increased advisory board diversity (to over 40%) to enhance our business development efforts with a diverse client base in all markets Provide all employees with 8 hours of paid time to support volunteer efforts and give back to their communities in a meaningful way of their choosing Corporate Governance and Nominating Committee monitors key governance structure risks, effectiveness of the Board DEI policy practices and strategies, and oversight of the overall ESG program To ensure alignment with the Company's ESG principles, responsibility for Board delegated ESG risks and opportunities are defined in all committee charters Board diversity – 29% female and 14% ethnic or racial directors and 50% of standing committees chaired by female directors 86% director independence, and 100% committee membership independence

Robust Liquidity and Capital Base Stable Core Deposit Base Substantial Liquidity Strong Capital Ratios (%) Source 12/31/2024 Short-term Investments $128,207 Collateral value of unencumbered pledged loans 444,453 Market value of unencumbered securities 310,125 Readily accessible liquidity 882,785 Fed fund lines 45,000 Excess brokered CD capacity (1) 981,463 Total Liquidity 1,909,248 Uninsured Deposits Collateralized Public Funds FDIC Insured Approximately 68% of deposits are insured or collateralized 1. Bank internal policy limits brokered CDs to 50% of total bank funding when combined with FHLB advances.

Capital Strength 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 Total Regulatory Capital $421,639 $407,421 $392,359 $384,083 $375,440 Total Risk-Weighted Assets $3,491,626 $3,477,734 $3,425,925 $3,381,059 $3,356,247 Leverage Ratio 8.78% 8.68% 8.51% 8.45% 8.43% Common Equity Tier 1 Capital Ratio 9.10% 8.76% 8.64% 8.51% 8.38% Tier 1 Ratio 9.45% 9.11% 8.99% 8.86% 8.74% Total Capital Ratio 12.08% 11.72% 11.45% 11.36% 11.19% Total Shareholders' Equity $328,589 $311,982 $305,170 $297,788 $289,588 Tangible Common Shareholders' Equity $304,685 $288,156 $281,337 $273,846 $265,573 Total Shares Outstanding 8,293,928 8,295,017 8,294,589 8,306,573 8,314,778 Book Value Per Share $38.2 $36.2 $35.4 $34.4 $33.4 Tangible Book Value Per Share $36.7 $34.7 $33.9 $33.0 $31.9 Cash Dividends Per Share $0.25 $0.25 $0.25 $0.25 $0.2275 Regulatory capital ratios remain solid including a Total Capital Ratio of 12.08% and a Tier 1 Ratio of 9.45%. Tangible book value per share increased 23% annualized from the prior quarter and 15% from the prior year quarter. Quarterly cash dividend of $0.25 per share. HIGHLIGHTS

Balanced Deposit Portfolio Diversified Product Base with Long-Tenured, Deep Client Relationships Longstanding deposit insurance options available through IntraFi and Reich & Tang to provide further security for our large clients Funding is augmented by non-callable wholesale deposits rather than non-relationship sourced funds Our deposit relationships span multiple industry segments Diverse deposit base has an average deposit relationship tenure of over 10 years History of offering competitive deposit rates supported by growth in higher-yielding commercial & industrial lending Nearly 50% of the top 50 deposit relationships also have a commercial loan relationship (Unaudited) As of (in thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 Non-interest-bearing transaction accounts $ 436,111 $ 428,012 $ 406,804 $ 400,267 $ 445,376 Interest-bearing transaction accounts 965,637 930,252 841,146 818,080 895,319 Money market accounts 809,695 817,129 837,569 813,467 711,245 Certificates of deposit 184,986 207,337 224,116 266,029 287,131 Wholesale deposits 710,711 587,217 575,548 457,563 457,708 Total deposits $ 3,107,140 $ 2,969,947 $ 2,885,183 $ 2,755,406 $ 2,796,779 Uninsured deposits $ 980,278 $ 1,088,496 $ 1,011,977 $ 995,428 $ 994,687 Less: uninsured deposits collateralized by pledged assets 6,864 10,755 34,810 16,622 17,051 Total uninsured, net of collateralized deposits 973,414 1,077,741 977,167 978,806 977,636 % of total deposits 31.3% 36.3% 33.9% 35.5% 35.0%

Diversified Lending Products Double digit loan growth driven by stellar performance across all areas of the bank Note: Period end balances as of 12/31/2024 presented.

Product Profile Target small to medium-sized companies Lines of credit and term loans focused on businesses with annual sales of up to $75.0 million 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 89% of all office loans have recourse Office loans consist of 69% Class A space Office represents 9% of total loans as of 12/31/24 Majority of office loan maturity terms are 2031 and beyond All office loans with 2031+ maturities are conventional fixed rate or fixed to the client via an interest rate swap Note: The office specific loan data presented in charts on this slide represents office loans greater than $3 million, which represents 76% of total office loans. Source: Q4 2024 CoStar market reports. For more detailed definitions on credit quality categories see the Bank's 10-K filed with the SEC on February 21, 2024. CRE Office Portfolio Analysis Exceptional credit quality on office loans throughout the Midwest Vacancy Rates: Madison = 6.0% Milwaukee = 11.3% Kansas City = 11.6% National = 13.9%

Loans focused in our bank markets and concentrated in Wisconsin Exceptional asset quality with no non-performing loans in the portfolio Represents 17% of total loans 90% of all multi-family loans have recourse All multi-family loans with 2031+ maturities are conventional fixed rate or fixed to the client via an interest rate swap Source: Q4 2024 CoStar market reports. For more detailed definitions on credit quality categories see the Bank's 10-K filed with the SEC on February 21, 2024. Multi-Family Portfolio Analysis Exceptional credit quality on Multi-Family loans throughout the Midwest Vacancy Rates: Madison = 5.6% Milwaukee = 5.6% Kansas City = 8.0% National = 8.0%

Product Profile Target small and medium companies in a variety of industries Financings range from $250,000 to $10 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

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 appendix for non-GAAP reconciliation schedules. 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

“Adjusted Net Interest Margin” is a non-GAAP measure representing net interest income excluding the fees in lieu of interest and other recurring, but volatile, components of net interest margin divided by average interest-earning assets excluding other recurring, but volatile, components of average interest-earning assets. Fees in lieu of interest are defined as prepayment fees, asset-based loan fees, non-accrual interest, and loan fee amortization. In the judgment of the Company’s management, the adjustments made to net interest income allow investors and analysts to better assess the Company’s net interest income in relation to its core client-facing loan and deposit rate changes by removing the volatility that is associated with these recurring but volatile components. The information provided below reconciles the net interest margin to its most comparable GAAP measure. Adjusted Net Interest Margin Non-GAAP Reconciliation For the Three Months Ended (Dollars in Thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Interest income $54,762 $55,783 $57,910 $59,327 $60,110 Interest expense 25,222 26,272 27,370 28,320 26,962 Net interest income 29,540 29,511 30,540 31,007 33,148 Less fees in lieu of interest 1,121 849 1,306 1,002 2,359 Less FRB interest income and FHLB dividend income 1,466 1,436 959 841 1,062 Adjusted net interest income $26,953 $27,226 $28,275 $29,164 $29,727 Average interest-earning assets $3,199,485 $3,294,717 $3,347,027 $3,405,534 $3,516,390 Less Average FRB cash and FHLB stock 99,118 97,036 61,082 52,603 76,576 Less Average non-accrual loans and leases 18,602 20,540 19,807 18,954 19,077 Adjusted average interest-earning assets $3,081,765 $3,177,141 $3,266,138 $3,333,977 $3,420,737 Net interest margin 3.69% 3.58% 3.65% 3.64% 3.77% Adjusted net interest margin 3.50% 3.43% 3.46% 3.50% 3.48%

"Adjusted Net Interest Income" is defined as net interest income less fees in lieu of interest and other recurring, but volatile components of net interest income . "Fees in Lieu of Interest" is defined as prepayment fees, asset-based loan fees, non-accrual interest, and loan fee amortization. We believe that this measure is important to many investors in the marketplace who are interested in the trends in our net interest margin. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. Adjusted Net Interest Income Non-GAAP Reconciliation For the Year Ended (Dollars in Thousands) December 31, 2019 December 31,2020 December 31,2021 December 31,2022 December 31,2023 December 31,2024 Net Interest income $69,855 $77,071 $84,662 $98,422 $112,588 $124,206 Less fees in lieu of interest 6,479 9,300 11,160 5,283 3,452 5,516 Less FRB and FHLB income 934 789 741 1,525 4,055 4,298 Adjusted net interest income (non-GAAP) $62,371 $66,850 $72,665 $91,440 $105,081 $114,392

"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. Net Operating Income Non-GAAP Reconciliation For the Year Ended (Dollars in Thousands) December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Net income $23,324 $16,978 $35,755 $40,858 $37,027 $44,245 Less income tax expense (1,175) (1,327) (11,275) (11,386) (10,112) (6,905) Less provision for credit losses (2,085) (16,808) 5,803 3,868 (8,182) (8,827) Income before taxes and provision for credit losses (non-GAAP) 26,584 35,113 41,227 48,376 55,321 59,977 Less non-operating income Net gain on sale of state tax credits - 275 - - - - BOLI death benefit - - - 809 - - Net (loss) gain on sale of securities (46) (4) 29 - (45) (8) Total non-operating income (non-GAAP) (46) 271 29 809 (45) (8) Less non-operating expense Net loss on repossessed assets 224 383 15 49 12 168 Amortization of other intangible assets 40 35 25 - - - Contribution to First Business Charitable Foundation - - - 809 - - SBA recourse (benefit) provision 188 (278) (76) (188) 775 (104) Tax credit investment impairment (recovery) 4,094 2,395 - 351 - 400 Loss on early extinguishment of debt - 744 - - - - Total non-operating expense (non-GAAP) 4,546 3,279 (36) 319 787 464 Add net tax credit benefit (non-GAAP) 1,352 969 - 338 1,206 1,630 Net operating income $32,528 $39,090 $41,162 $48,224 $57,359 $62,078

‘‘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. Cost of Funds Non-GAAP Reconciliation For the Three Months Ended (Dollars in Thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Interest expense on total interest-bearing deposits $22,644 $23,837 $24,676 $25,290 $24,120 Interest expense on FHLB advances 1,851 1,717 1,974 2,059 1,969 Total interest expense on deposits and FHLB advances $24,495 $25,554 $26,650 $27,349 $26,089 Average interest-bearing deposits $2,249,701 $2,360,573 $2,414,282 $2,466,313 $2,566,814 Average non-interest-bearing deposits 448,818 443,416 436,968 440,161 444,683 Average FHLB advances 301,773 287,307 294,043 278,103 270,476 Total average deposits and total average FHLB advances $3,000,292 $3,091,296 $3,145,293 $3,184,577 $3,281,969 Cost of funds 3.27% 3.31% 3.39% 3.44% 3.18%