8-K
FIRST BUSINESS FINANCIAL SERVICES, INC. (FBIZ)
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 29, 2026 |
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First Business Financial Services, Inc.
(Exact name of Registrant as Specified in Its Charter)
| Wisconsin | 001-34095 | 39-1576570 |
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| (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 | ||
| --- |
(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 29, 2026, First Business Financial Services, Inc. (the “Company”) announced its earnings for the quarter ended December 31, 2025, as well as the declaration of a quarterly cash dividend on its common stock and 7% series A preferred stock. A copy of the Company’s press release containing this information is being “furnished” as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On January 29, 2026, 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 2025 earnings call to be held at 1:00 p.m. Central time on January 30, 2026, and from time to time when the Company's executives interact with shareholders, analysts, and other third parties. A copy of the registrant’s presentation is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is being “furnished” as part of this Current Report on Form 8-K:
| 99.1 | Press release of the registrant dated January 29, 2026, containing financial information for its quarter ended December 31, 2025. |
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| 99.2 | Supplemental earnings call slides |
| 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 29, 2026 | 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 ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND 17% CASH DIVIDEND INCREASE
-- Continued balance sheet growth and operating efficiency drive strong earnings and tangible book value expansion --
-- 17% increase in quarterly cash dividend announced, marking 14th consecutive annual increase --
MADISON, Wis., January 29, 2026 (BUSINESS WIRE) -- First Business Financial Services, Inc. (the “Company”, the “Bank”, or “First Business Bank”) (Nasdaq: FBIZ) reported quarterly net income available to common shareholders of $13.1 million, or earnings per share ("EPS") of $1.58. This compares to net income available to common shareholders of $14.2 million, or $1.70 per share, in the third quarter of 2025 and $14.2 million, or $1.71 per share, in the fourth quarter of 2024.
“First Business Bank continued to produce strong deposit and loan growth that outpaced the industry, expanding client relationships and driving outstanding financial performance during the fourth quarter,” said Corey Chambas, Chief Executive Officer. “We concluded 2025 with positive momentum. Our revenue growth goals continued to be supported by robust loan pipelines, expansion of our private wealth platform, core deposit growth, and diversified fee income sources. While we saw an increase in nonperforming loans due to a single client relationship, we continue to experience stable credit quality across our performing portfolio. We are pleased to report strong profitability despite this isolated event. We are on track with our five-year strategic plan, achieving 10% growth in top-line revenue and maintaining an efficiency ratio below 60%. This momentum continued to drive above-target performance on return on average tangible common equity and growth in tangible book value for 2025."
“We continued our track record of producing double-digit annual growth, exceeding 14% growth in both pre-tax, pre-provision adjusted earnings and earnings per share in 2025," Chambas continued. "We are particularly proud that we have sustained 10% compound average annual growth in earnings per share for the past 20 years. This consistent growth in earnings has supported our ability to provide shareholders a strong cash dividend that has grown for 14 consecutive years. We continue to target double-digit growth going forward."
Quarterly Highlights
- Robust Core Deposit Growth. Core deposits grew $80.9 million, or 12.5% annualized, from the linked quarter and $276.6 million, or 11.5%, from the fourth quarter of 2024. Core deposit funding mix improved to 74.7% compared to 71.5% in the linked quarter and 70.7% in the fourth quarter of 2024.
- Continued Loan Growth. Loans increased $38.6 million, or 4.6% annualized, from the third quarter of 2025, and $261.4 million, or 8.4%, from the fourth quarter of 2024. Loan growth was muted by elevated commercial real estate payoffs in the second half of 2025.
- Net Interest Margin. The Company's net interest margin of 3.53% included a 10 basis point impact of non-accrual interest reversals during the quarter. Net interest margin was 3.63% excluding this item, reflecting the Bank's effective match-funding strategy and pricing discipline. This compared to 3.68% for the linked quarter and 3.77% for the prior-year quarter.
- Commitment to Efficiency. The Company’s efficiency ratio improved to 56.61% from 57.44% and 56.94% in the linked and prior-year quarters, respectively. Efficiency ratio for the full year was 58.78% compared to 60.61%, producing positive operating leverage for the fourth consecutive year. We expect our disciplined expense management and balanced revenue growth to support positive operating leverage going forward.
- Continued 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 15.9% annualized increase compared to the linked quarter and a 13.7% increase compared to the prior-year quarter.
- Dividend Increase. The Company's quarterly cash dividend was increased 17%, to $0.34 per share, marking the Company's 14th consecutive annual increase.
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>2025 | September 30,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Net interest income | $34,762 | $34,886 | $33,148 | $136,690 | $124,206 |
| Adjusted non-interest income (1) | 7,461 | 9,406 | 8,005 | 31,703 | 29,259 |
| Operating revenue (1) | 42,223 | 44,292 | 41,153 | 168,393 | 153,465 |
| Operating expense (1) | 23,901 | 25,440 | 23,434 | 98,983 | 93,016 |
| Pre-tax, pre-provision adjusted earnings (1) | 18,322 | 18,852 | 17,719 | 69,410 | 60,449 |
| Less: | |||||
| Provision for credit losses | 1,855 | 1,440 | 2,701 | 8,655 | 8,827 |
| Net loss on repossessed assets | — | 31 | 5 | 27 | 168 |
| Contribution to First Business Charitable Foundation | — | 234 | — | 234 | — |
| SBA recourse benefit | — | (5) | (687) | (64) | (104) |
| Impairment of tax credit investments | 229 | — | 400 | 339 | 400 |
| Add: | |||||
| Bank-owned life insurance claim | — | 234 | — | 234 | — |
| Net loss on sale of securities | — | — | — | — | (8) |
| Income before income tax expense | 16,238 | 17,386 | 15,300 | 60,453 | 51,150 |
| Income tax expense | 2,905 | 2,993 | 885 | 10,134 | 6,905 |
| Net income | $13,333 | $14,393 | $14,415 | $50,319 | $44,245 |
| Preferred stock dividends | 219 | 218 | 219 | 875 | 875 |
| Net income available to common shareholders | $13,114 | $14,175 | $14,196 | $49,444 | $43,370 |
| Earnings per share, diluted | $1.58 | $1.70 | $1.71 | $5.94 | $5.20 |
| Book value per share | $43.19 | $41.60 | $38.17 | $43.19 | $38.17 |
| Tangible book value per share (1) | $41.75 | $40.16 | $36.74 | $41.75 | $36.74 |
| Net interest margin (2) | 3.53% | 3.68% | 3.77% | 3.64% | 3.66% |
| Fee income ratio (non-interest income / total revenue) | 17.67% | 21.65% | 19.45% | 18.94% | 19.06% |
| Efficiency ratio (1) | 56.61% | 57.44% | 56.94% | 58.78% | 60.61% |
| Return on average assets (2) | 1.25% | 1.40% | 1.52% | 1.24% | 1.20% |
| Return on average tangible common equity (2) | 14.83% | 17.29% | 19.21% | 15.25% | 15.35% |
| Period-end loans and leases receivable | $3,373,241 | $3,334,956 | $3,113,128 | $3,373,241 | $3,113,128 |
| Average loans and leases receivable | $3,363,752 | $3,295,880 | $3,103,703 | $3,271,872 | $2,996,881 |
| Period-end core deposits | $2,673,003 | $2,592,110 | $2,396,429 | $2,673,003 | $2,396,429 |
| Average core deposits | $2,765,730 | $2,597,031 | $2,416,919 | $2,531,828 | $2,378,465 |
| Allowance for credit losses, including unfunded commitment reserves | $37,692 | $38,382 | $37,268 | $37,692 | $37,268 |
| Non-performing assets | $43,855 | $23,513 | $28,418 | $43,855 | $28,418 |
| Allowance for credit losses as a percent of total gross loans and leases | 1.12% | 1.15% | 1.20% | 1.12% | 1.20% |
| Non-performing assets as a percent of total assets | 1.07% | 0.58% | 0.74% | 1.07% | 0.74% |
- 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 2025 Compared to Third Quarter 2025
Net interest income decreased $124,000, or 0.4%, to $34.8 million.
- The decrease in net interest income was driven by non-accrual interest reversals in the current quarter and non-accrual interest recoveries in the linked quarter, partially offset by higher average loans and leases receivable. Average loans and leases receivable grew by $67.9 million, or 8.2% annualized, to $3.364 billion. Excluding non-accrual interest activity in both periods, net interest income increased $1.1 million, or 3.1%.
- The yield on average interest-earning assets decreased 34 basis points to 6.38% from 6.72% mainly due to non-accrual interest reversals in the current quarter and non-accrual interest recoveries in the linked quarter and reduction in short-term market rates. Excluding non-accrual interest activity in both periods, the yield on average interest-earning assets was 6.47% compared to 6.69% in the linked quarter. Excluding non-accrual interest activity in both periods, the interest-earning asset beta was 54.1%. 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 core deposits decreased 25 basis points to 2.64% from 2.89%. The rate paid for average total bank funding decreased 19 basis points to 2.95% from 3.14%. Total bank funding is defined as total deposits plus Federal Home Loan Bank (“FHLB”) advances. The core deposit beta and total bank funding beta compared to the prior quarter was 62.5% and 47.5%, respectively.
- Net interest margin was 3.53% compared to 3.68% for the linked quarter. The decrease in net interest margin was driven primarily by non-accrual interest reversals in the current quarter and non-accrual interest recoveries in the linked quarter. Excluding non-accrual interest activity in both periods, net interest margin was 3.63% compared to 3.64% in the linked quarter.
- 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 provision for credit losses of $1.9 million compared to $1.4 million in the linked quarter. The current quarter provision primarily reflects net charge-offs and loan growth, partially offset by improvement in the economic outlook in our model forecast and a decrease in general reserve qualitative factors. Specific reserves were flat reflecting a decrease in reserve requirements in equipment finance lending offset by an increase in reserves in accounts receivable financing.
Non-interest income decreased $2.2 million, or 22.6%, to $7.5 million.
- Gain on sale of SBA loans decreased $242,000, or 63.4%, to $140,000, mainly due to delays related to the government shutdown.
- Commercial loan swap fee income decreased $236,000, or 24.2%, to $738,000. Swap fee income varies from period to period based on loan activity and the interest rate environment.
- Other non-interest income decreased $1.5 million, or 76.9%, to $458,000 mainly due to a reclassification of partnership investment expenses and $537,000 of nonrecurring fee income in accounts receivable financing in the prior quarter. In the fourth quarter, the Company reclassified $904,000 of investment expenses incurred during the first nine months of 2025 to net against the related revenue to present the net benefit of our partnership investments. The Company will continue this method of disclosure on a go-forward basis and prior-year periods were not adjusted due to immateriality.
- Bank-owned life insurance income decreased $226,000, or 23.4%, to $739,000 primarily due to a $234,000 insurance claim received in the prior quarter.
Non-interest expense decreased $1.6 million, or 6.1%, to $24.1 million, while operating expense decreased $1.5 million, or 6.0%, to $23.9 million.
- Compensation expense was $17.2 million, decreasing $291,000, or 1.7%, primarily due to a decrease in annual cash bonus and 401(k) accruals, partially offset by an increase in individual incentive compensation. Average full-time equivalents (“FTEs”) for the fourth quarter of 2025 were 368, up from 366 in the linked quarter.
- Other non-interest expense decreased $1.5 million, or 86.6%, to $225,000, primarily due to the aforementioned reclassification of partnership investment expenses and a decrease in donations and contributions.
Income tax expense decreased $88,000 to $2.9 million. The effective tax rate was 17.9% for the three months ended December 31, 2025, compared to 17.2% for the linked quarter. The change in tax expense reflects a decrease in pre-tax income and updated tax credit partnership estimates. The effective tax rate for the year ended December 31, 2025 was 16.8%. The Company expects to report an effective tax rate between 16% and 18% for 2026.
Total period-end loans and leases receivable increased $38.6 million, or 4.6% annualized, to $3.375 billion. Loan growth was muted due to elevated commercial real estate loan payoffs in the second half of 2025. The average rate earned on average loans and leases receivable was 6.77%, down 33 basis points from 7.10% in the prior quarter. Excluding the non-accrual interest reversals and recoveries, the average rate earned on average loans and leases receivable was 6.87% compared to 7.06% in the linked quarter.
Total period-end core deposits increased $80.9 million, or 12.5% annualized, to $2.673 billion. The average rate paid was 2.64%, down 25 basis points from 2.89% in the prior quarter primarily due to a decrease in short-term market rates.
Period-end wholesale funding, including FHLB advances and brokered deposits, decreased $48.2 million, or 5.1%, to $904.7 million due to an increase in core deposits. 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 decreased $33.5 million to $707.4 million. The average rate paid on wholesale deposits increased one basis point to 4.04% and the weighted average original maturity increased to 4.4 years from 4.3 years.
- FHLB advances decreased $14.7 million to $197.2 million. The average rate paid on FHLB advances decreased two basis points to 3.18% and the weighted average original maturity increased to 5.7 years from 5.3 years.
Non-performing assets increased $20.3 million to $43.9 million, or 1.07% of total assets, compared to 0.58% in the prior quarter. The increase primarily reflects the downgrade of $20.4 million of CRE loans from a single southeast Wisconsin-based client relationship. Management has evaluated the Bank's collateral position of these loans and concluded no specific reserves are required. This increase in non-performing assets was partially offset by lower non-accrual equipment finance loans.
The allowance for credit losses, including the unfunded credit commitments reserve, decreased $690,000, or 1.8%, primarily due to decreases in general reserves due to an improvement in the economic outlook in our model forecast, improvement in qualitative factors, and a decrease in specific reserves, partially offset by loan growth, general reserve model updates, and an increase in unfunded commitment reserves. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.12% compared to 1.15% in the prior quarter.
Fourth Quarter 2025 Compared to Fourth Quarter 2024
Net interest income increased $1.6 million, or 4.9%, to $34.8 million.
Growth reflects higher average gross loans and leases partially offset by the aforementioned non-accrual interest activity and lower prepayment fees. Excluding the non-accrual interest activity, net interest income increased $2.4 million, or 7.3%.
The yield on average interest-earning assets decreased 46 basis points to 6.38% from 6.84%. Excluding the non-accrual interest activity, the yield on average interest-earning assets measured 6.47%. This decrease in yield was primarily due to the decrease in short-term market rates and lower prepayment fees, partially offset by the reinvestment of cash flows from the securities and fixed-rate loan portfolios. Excluding the non-accrual interest activity, the interest-earning asset beta was 46.7%
The rate paid for average interest-bearing core deposits decreased 51 basis points to 3.14% from 3.65%. The rate paid for average total bank funding decreased 23 basis points to 2.95% from 3.18%. The core deposit and total bank funding betas compared to the prior year were 45.3% and 30.7%, respectively.
Net interest margin decreased 24 basis points to 3.53% from 3.77%. Excluding the non-accrual interest activity, net interest margin was 3.63%. The remaining decrease in net interest margin was mainly due to a reduction in prepayment fees and the decrease in earning asset yields outpacing the decrease in total bank funding costs.
The Company reported provision for credit losses of $1.9 million, compared to $2.7 million in the fourth quarter of 2024. See the Provision for Credit Loss breakdown table below for more detail.
Non-interest income decreased $544,000, or 6.8%, to $7.5 million.
- Gain on sale of SBA loans decreased $798,000, or 85.1%, to $140,000, primarily due to delays caused by the government shutdown.
- Loan fee income decreased $504,000, or 55.1%, to $410,000, primarily due to a reclassification of certain types of C&I loan fees from non-interest income to interest income.
- Other non-interest income decreased $303,000, or 38.9%, to $458,000, primarily due to the aforementioned partnership investment expense reclassification, partially offset by increases in credit card fee income and income from partnership investments.
- Private wealth fee income increased $362,000, or 10.6%, to $3.8 million. Private wealth assets under management and administration measured $3.815 billion at December 31, 2025 up $396.0 million, or 11.6%.
- Bank-owned life insurance income increased $321,000, or 76.8%, to $739,000, primarily due to the purchase of new policies.
- Service charges on deposits increased $228,000, or 23.8%, to $1.2 million, primarily driven by new and expanded core deposit relationships and a reduction in earnings credit rates.
- Commercial loan swap fee income increased $150,000, or 25.5%, to $738,000. Swap fee income varies period to period based on loan activity and the interest rate environment.
Non-interest expense increased $978,000, or 4.2%, to $24.1 million. Operating expense increased $467,000 or 2.0%, to $23.9 million.
- Compensation expense increased $1.6 million, or 10.4%, to $17.2 million. Growth reflects an increase in average FTEs, salary increases, and an increase in the annual cash bonus accrual. Average FTEs increased 5.4% to 368 in the fourth quarter of 2025, compared to 349 in the fourth quarter of 2024.
- Computer software expense increased $317,000, or 20.0%, to $1.9 million, due to ongoing investment in innovative technology to support growth initiatives, enhance productivity and security, and improve the client experience.
- Data processing expense decreased $489,000, or 29.7%, to $1.2 million, primarily due to a one-time expense related to a change in credit card vendors in the prior-year quarter.
- Professional fees decreased $322,000, or 24.3%, to $1.0 million, primarily due to timing of recruiting and legal fees.
- Other non-interest expense decreased $292,000, or 56.5%, to $225,000, primarily due to the aforementioned reclassification of partnership investment expenses, partially offset by an increase in liquidation expenses.
Total period-end loans and leases receivable increased $261.4 million, or 8.4%, to $3.375 billion. The average yield decreased 44 basis points to 6.77%, primarily due to a decrease in short-term market rates and the aforementioned non-accrual interest reversal. Excluding the non-accrual interest reversal, average yield was 6.87%.
- CRE loans increased $143.1 million, or 7.5%, to $2.060 billion, primarily due to growth across the Wisconsin and Kansas City markets.
- C&I loans increased $122.3 million, or 10.6%, to $1.274 billion, primarily due to growth across our bank markets and in our floorplan, asset-based lending, and equipment finance businesses.
Total period-end core deposits grew $276.6 million, or 11.5%, to $2.673 billion. The average rate paid decreased 34 basis points to 2.64%, reflecting a decrease in short-term market rates.
Period-end wholesale funding decreased $71.3 million, or 7.3%, to $904.7 million.
- Wholesale deposits decreased $3.3 million, or 0.5%, to $707.4 million. The average rate paid on wholesale deposits decreased seven basis points to 4.04% and the weighted average original maturity increased to 4.4 years from 3.9 years.
- FHLB advances decreased $68.1 million to $197.2 million. The average rate paid on FHLB advances increased 27 basis points to 3.18% and the weighted average original maturity increased to 5.7 years from 5.4 years.
Non-performing assets increased to $43.9 million, or 1.07% of total assets, compared to $28.4 million, or 0.74% of total assets, primarily driven by the downgrade of $20.4 million of CRE loans from a single client relationship, partially offset by lower non-accrual equipment finance loans.
The allowance for credit losses, including unfunded commitment reserves, increased $424,000 to $37.7 million primarily due to higher general reserves as a result of loan growth and quantitative factors, partially offset by lower specific reserves. The allowance for credit losses as a percent of total gross loans and leases was 1.12%, compared with 1.20% in the prior year.
Dividend Increase Announced
On January 29, 2026, the Company's Board of Directors declared a quarterly cash dividend on its common stock of $0.34 per share, which is equivalent to a dividend yield of 2.45% based on the market close price of $55.44 on Wednesday, January 28, 2026. The quarterly dividend represents a 17% increase over the quarterly dividend declared in October 2025 and marks the 14th consecutive annual dividend raise. Based on fourth quarter 2025 earnings per share, this represents a dividend payout ratio of 22%. This regular cash dividend is payable on February 28, 2026, to shareholders of record at the close of business on February 14, 2026.
The Board of Directors also declared a dividend on the Company’s 7% Series A Preferred Stock of $17.50 per share, payable on March 16, 2026, to shareholders of record on February 27, 2026.
2026 CEO Succession Plan
On May 5, 2025, the Company announced that Corey A. Chambas intends to retire from his role as Chief Executive Officer on May 2, 2026. The Company will name President and Chief Operating Officer David R. Seiler to succeed him as President and CEO effective the same date.
Earnings Release Supplement and Conference Call
On January 29, 2026, the Company posted an earnings release supplement to its website firstbusiness.bank under the “Investor Relations” tab which will also be furnished to the U.S. Securities and Exchange Commission on January 29, 2026. The information included in the supplement provides an overview of the Company’s recent operating performance, financial condition, and other data relevant to the quarter. The Company intends to use this supplement in connection with its fourth quarter 2025 earnings call to be held at 1:00 p.m. Central time on January 30, 2026. The conference call can be accessed at 800-549-8228 (646-564-2877 if outside the United States and Canada), using the conference call access code: FBIZ, 15092. Investors may also listen live via webcast at: https://events.q4inc.com/attendee/437898665. A replay of the call will be available through Friday, February 6, 2026, by calling 888-660-6264 (646-517-3975 if outside the United States and Canada). 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.
Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, prolonged shutdown of the federal government, and other significant policy matters.
Competitive pressures among depository and other financial institutions nationally and in the Company’s markets.
Increases in defaults by borrowers and other delinquencies.
Management’s ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure, and internal management systems.
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.
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, 2024, 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>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Assets | |||||
| Cash and cash equivalents | $39,485 | $44,349 | $123,208 | $170,617 | $157,702 |
| Securities available-for-sale, at fair value | 422,087 | 411,111 | 382,365 | 359,394 | 341,392 |
| Securities held-to-maturity, at amortized cost | 5,210 | 5,584 | 5,714 | 6,590 | 6,741 |
| Loans held for sale | 18,849 | 13,482 | 12,415 | 10,523 | 13,498 |
| Loans and leases receivable | 3,373,241 | 3,334,956 | 3,250,925 | 3,184,400 | 3,113,128 |
| Allowance for credit losses | (35,877) | (36,690) | (36,861) | (35,236) | (35,785) |
| Loans and leases receivable, net | 3,337,364 | 3,298,266 | 3,214,064 | 3,149,164 | 3,077,343 |
| Premises and equipment, net | 4,669 | 4,936 | 5,063 | 5,017 | 5,227 |
| Repossessed assets | — | 0 | 31 | 36 | 51 |
| Right-of-use assets | 5,317 | 5,577 | 5,713 | 5,439 | 5,702 |
| Bank-owned life insurance | 83,994 | 83,255 | 82,761 | 57,647 | 57,210 |
| Federal Home Loan Bank stock, at cost | 8,940 | 9,605 | 10,027 | 10,434 | 11,616 |
| Goodwill and other intangible assets | 11,985 | 12,041 | 12,049 | 12,058 | 11,912 |
| Derivatives | 36,515 | 37,634 | 40,814 | 48,405 | 65,762 |
| Accrued interest receivable and other assets | 107,472 | 109,005 | 108,501 | 109,555 | 99,059 |
| Total assets | $4,081,887 | $4,034,845 | $4,002,725 | $3,944,879 | $3,853,215 |
| Liabilities and Stockholders’ Equity | |||||
| Core deposits | $2,673,003 | $2,592,110 | $2,533,099 | $2,462,695 | $2,396,429 |
| Wholesale deposits | 707,412 | 740,961 | 772,123 | 780,348 | 710,711 |
| Total deposits | 3,380,415 | 3,333,071 | 3,305,222 | 3,243,043 | 3,107,140 |
| Federal Home Loan Bank advances and<br> other borrowings | 252,051 | 266,677 | 276,131 | 286,590 | 320,049 |
| Lease liabilities | 7,361 | 7,687 | 7,887 | 7,604 | 7,926 |
| Derivatives | 36,926 | 38,726 | 41,228 | 45,612 | 57,068 |
| Accrued interest payable and other liabilities | 33,549 | 30,365 | 27,462 | 25,967 | 32,443 |
| Total liabilities | 3,710,302 | 3,676,526 | 3,657,930 | 3,608,816 | 3,524,626 |
| Total stockholders’ equity | 371,585 | 358,319 | 344,795 | 336,063 | 328,589 |
| Total liabilities and stockholders’ equity | $4,081,887 | $4,034,845 | $4,002,725 | $3,944,879 | $3,853,215 |
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>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Total interest income | $62,752 | $63,746 | $61,282 | $59,530 | $60,110 | $247,310 | $233,130 |
| Total interest expense | 27,990 | 28,860 | 27,498 | 26,272 | 26,962 | 110,620 | 108,924 |
| Net interest income | 34,762 | 34,886 | 33,784 | 33,258 | 33,148 | 136,690 | 124,206 |
| Provision for credit losses | 1,855 | 1,440 | 2,701 | 2,659 | 2,701 | 8,655 | 8,827 |
| Net interest income after provision for credit losses | 32,907 | 33,446 | 31,083 | 30,599 | 30,447 | 128,035 | 115,379 |
| Private wealth management service fees | 3,788 | 3,687 | 3,748 | 3,492 | 3,426 | 14,716 | 13,262 |
| Gain on sale of SBA loans | 140 | 382 | 397 | 963 | 938 | 1,882 | 1,942 |
| Service charges on deposits | 1,188 | 1,151 | 1,103 | 1,048 | 960 | 4,491 | 3,771 |
| Loan fees | 410 | 501 | 424 | 388 | 914 | 1,724 | 3,399 |
| Bank owned life insurance income | 739 | 965 | 615 | 437 | 418 | 2,755 | 1,649 |
| Loss on sale of securities | — | — | — | — | — | — | (8) |
| Swap fees | 738 | 974 | 170 | 113 | 588 | 1,995 | 1,403 |
| Other non-interest income | 458 | 1,980 | 798 | 1,138 | 761 | 4,374 | 3,833 |
| Total non-interest income | 7,461 | 9,640 | 7,255 | 7,579 | 8,005 | 31,937 | 29,251 |
| Compensation | 17,151 | 17,442 | 16,534 | 16,747 | 15,535 | 67,874 | 63,105 |
| Occupancy | 581 | 567 | 564 | 590 | 588 | 2,303 | 2,373 |
| Professional fees | 1,001 | 1,071 | 1,487 | 1,459 | 1,323 | 5,018 | 5,671 |
| Data processing | 1,158 | 1,123 | 1,368 | 1,082 | 1,647 | 4,732 | 4,892 |
| Marketing | 938 | 876 | 1,062 | 968 | 928 | 3,844 | 3,518 |
| Equipment | 374 | 296 | 335 | 376 | 301 | 1,381 | 1,314 |
| Computer software | 1,902 | 1,826 | 1,656 | 1,603 | 1,585 | 6,987 | 6,166 |
| FDIC insurance | 800 | 817 | 834 | 780 | 728 | 3,231 | 2,760 |
| Other non-interest expense | 225 | 1,682 | 1,128 | 1,114 | 517 | 4,149 | 3,681 |
| Total non-interest expense | 24,130 | 25,700 | 24,968 | 24,719 | 23,152 | 99,519 | 93,480 |
| Income before income tax expense | 16,238 | 17,386 | 13,370 | 13,459 | 15,300 | 60,453 | 51,150 |
| Income tax expense | 2,905 | 2,993 | 1,948 | 2,288 | 885 | 10,134 | 6,905 |
| Net income | $13,333 | $14,393 | $11,422 | $11,171 | $14,415 | $50,319 | $44,245 |
| Preferred stock dividends | 219 | 218 | 219 | 219 | 219 | 875 | 875 |
| Net income available to common shareholders | $13,114 | $14,175 | $11,203 | $10,952 | $14,196 | $49,444 | $43,370 |
| Per common share: | |||||||
| Basic earnings | $1.58 | $1.70 | $1.35 | $1.32 | $1.71 | $5.94 | $5.20 |
| Diluted earnings | 1.58 | 1.70 | 1.35 | 1.32 | 1.71 | 5.94 | 5.20 |
| Dividends declared | 0.29 | 0.29 | 0.29 | 0.29 | 0.25 | 1.16 | 1.00 |
| Book value | 43.19 | 41.60 | 39.98 | 39.04 | 38.17 | 43.19 | 38.17 |
| Tangible book value | 41.75 | 40.16 | 38.54 | 37.58 | 36.74 | 41.75 | 36.74 |
| Weighted-average common shares<br> outstanding(1) | 8,173,059 | 8,171,404 | 8,141,159 | 8,130,743 | 8,107,308 | 8,158,208 | 8,148,259 |
| Weighted-average diluted common shares<br> outstanding(1) | 8,173,059 | 8,171,404 | 8,141,159 | 8,130,743 | 8,107,308 | 8,158,208 | 8,148,259 |
- Excluding participating securities.
NET INTEREST INCOME ANALYSIS
| (Unaudited) | For the Three Months Ended | ||
|---|---|---|---|
| (Dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 |
| AverageBalance | AverageBalance | AverageBalance | |
| Interest-earning assets | |||
| Commercial real estate and<br> other mortgage loans(1) | 2,039,138 | 1,986,541 | 1,879,136 |
| Commercial and industrial<br> loans(1) | 1,280,406 | 1,259,448 | 1,176,175 |
| Consumer and other loans(1) | 44,208 | 49,891 | 48,392 |
| Total loans and leases<br> receivable(1) | 3,363,752 | 3,295,880 | 3,103,703 |
| Mortgage-related securities(2) | 366,158 | 350,971 | 290,471 |
| Other investment securities(3) | 49,716 | 47,367 | 45,174 |
| FHLB stock | 8,614 | 9,420 | 11,788 |
| Short-term investments | 145,425 | 90,852 | 65,254 |
| Total interest-earning assets | 3,933,665 | 3,794,490 | 3,516,390 |
| Non-interest-earning assets | 247,676 | 249,026 | 230,218 |
| Total assets | 4,181,341 | 4,043,516 | 3,746,608 |
| Interest-bearing liabilities | |||
| Transaction accounts | 1,108,916 | 1,050,822 | 928,428 |
| Money market | 920,194 | 851,659 | 833,501 |
| Certificates of deposit | 299,349 | 278,191 | 210,307 |
| Wholesale deposits | 725,607 | 754,690 | 594,578 |
| Total interest-bearing<br> deposits | 3,054,066 | 2,935,362 | 2,566,814 |
| FHLB advances | 189,900 | 207,762 | 270,476 |
| Other borrowings | 54,787 | 54,761 | 54,672 |
| Total interest-bearing<br> liabilities | 3,298,753 | 3,197,885 | 2,891,962 |
| Non-interest-bearing demand<br> deposit accounts | 437,271 | 416,359 | 444,683 |
| Other non-interest-bearing<br> liabilities | 79,505 | 77,300 | 90,555 |
| Total liabilities | 3,815,529 | 3,691,544 | 3,427,200 |
| Stockholders’ equity | 365,812 | 351,972 | 319,408 |
| Total liabilities and<br> stockholders’ equity | 4,181,341 | 4,043,516 | 3,746,608 |
| Net interest income | |||
| Interest rate spread | |||
| Net interest-earning assets | 634,912 | 596,605 | 624,428 |
| 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.
| For the Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| AverageBalance | AverageBalance | AverageBalance | |
| (Dollars in Thousands) | |||
| Interest-earning assets | |||
| Commercial real estate and other mortgage loans(1) | 1,971,337 | 1,793,041 | 1,586,967 |
| Commercial and industrial loans(1) | 1,252,779 | 1,153,955 | 1,013,866 |
| Consumer and other loans(1) | 47,756 | 49,885 | 47,018 |
| Total loans and leases receivable(1) | 3,271,872 | 2,996,881 | 2,647,851 |
| Mortgage-related securities(2) | 340,173 | 266,098 | 200,383 |
| Other investment securities(3) | 46,681 | 56,301 | 62,921 |
| FHLB and FRB stock | 11,109 | 12,167 | 15,162 |
| Short-term investments | 85,305 | 59,853 | 54,311 |
| Total interest-earning assets | 3,755,140 | 3,391,300 | 2,980,628 |
| Non-interest-earning assets | 244,738 | 234,973 | 231,521 |
| Total assets | 3,999,878 | 3,626,273 | 3,212,149 |
| Interest-bearing liabilities | |||
| Transaction accounts | 1,018,735 | 884,321 | 689,500 |
| Money market accounts | 856,554 | 815,603 | 681,336 |
| Certificates of deposit | 236,848 | 237,228 | 273,387 |
| Wholesale deposits | 737,253 | 515,197 | 346,285 |
| Total interest-bearing deposits | 2,849,390 | 2,452,349 | 1,990,508 |
| FHLB advances | 246,485 | 282,437 | 351,990 |
| Other borrowings | 54,748 | 51,072 | 38,891 |
| Total interest-bearing liabilities | 3,150,623 | 2,785,858 | 2,381,389 |
| Non-interest-bearing demand deposit accounts | 419,691 | 441,313 | 453,930 |
| Other non-interest-bearing liabilities | 81,427 | 92,708 | 102,668 |
| Total liabilities | 3,651,741 | 3,319,879 | 2,937,987 |
| Stockholders’ equity | 348,137 | 306,394 | 274,162 |
| Total liabilities and stockholders’ equity | 3,999,878 | 3,626,273 | 3,212,149 |
| Net interest income | |||
| Interest rate spread | |||
| Net interest-earning assets | 604,517 | 605,442 | 599,239 |
| Net interest margin | |||
| Average interest-earning assets to average interest-bearing liabilities | 119.19% | 121.73% | 125.16% |
| Return on average assets | 1.24% | 1.20% | 1.13% |
| Return on average tangible common equity | 15.25% | 15.35% | 14.46% |
| Average equity to average assets | 8.70% | 8.45% | 8.54% |
| Non-interest expense to average assets | 2.49% | 2.58% | 2.76% |
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.
BETA ANALYSIS
| For the Three Months Ended | For the Year Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||
| Average Yield/Rate (3) | Average Yield/Rate (3) | Increase (Decrease) | Average Yield/Rate (3) | Increase (Decrease) | Average Yield/Rate | Average Yield/Rate | Increase (Decrease) | ||
| Total loans and leases<br> receivable (a)(1) | 6.87% | 7.06% | (0.19)% | 7.20% | (0.33)% | 6.96% | 7.23% | (0.27)% | |
| Total interest-earning assets(b)(1) | 6.47% | 6.69% | (0.22)% | 6.82% | (0.35)% | 6.60% | 6.87% | (0.27)% | |
| Total core deposits(e) | 2.64% | 2.89% | (0.25)% | 2.98% | (0.34)% | 2.75% | 3.23% | (0.48)% | |
| Total bank funding(f) | 2.95% | 3.14% | (0.19)% | 3.18% | (0.23)% | 3.05% | 3.33% | (0.28)% | |
| Net interest margin(g)(1) | 3.63% | 3.64% | (0.02)% | 3.76% | (0.13)% | 3.65% | 3.66% | (0.01)% | |
| — | |||||||||
| Effective fed funds rate (2)(i) | 3.90% | 4.30% | (0.40)% | 4.65% | (0.75)% | 4.21% | 5.14% | (0.93)% | |
| Beta Calculations: | |||||||||
| Total loans and leases<br> receivable(a)/(i) | 46.7% | 43.4% | 29.0% | ||||||
| Total interest-earning assets(b)/(i) | 54.1% | 46.7% | 29.0% | ||||||
| Total core deposits(e/i) | 62.5% | 45.3% | 51.6% | ||||||
| Total bank funding(f)/(i) | 47.5% | 30.7% | 30.1% | ||||||
| Net interest margin(g/i) | 4.6% | 17.9% | 1.1% |
- Excludes non-accrual interest activity in all periods of comparison.
- Board of Governors of the Federal Reserve System (US), Effective Federal Funds Rate [DFF]. Retrieved from FRED, Federal Reserve Bank of St. Louis. Represents average daily rate.
- Represents annualized yields/rates.
PROVISION FOR CREDIT LOSS COMPOSITION
| (Unaudited) | For the Three Months Ended | For the Twelve Months Ended | |||||
|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Change due to qualitative factor changes | $(538) | $(243) | $590 | $(355) | $(460) | $(546) | $332 |
| Change due to quantitative factor<br> changes | (607) | (173) | 746 | 1,560 | (598) | 1,526 | (977) |
| Charge-offs | 2,809 | 1,708 | 1,338 | 3,810 | 1,132 | 9,665 | 5,255 |
| Recoveries | (264) | (440) | (332) | (398) | (190) | (1,434) | (699) |
| Change in reserves on individually<br> evaluated loans, net | (76) | (550) | (247) | (2,495) | 2,579 | (3,368) | 2,928 |
| Change due to loan growth, net | 408 | 795 | 536 | 741 | 577 | 2,480 | 2,227 |
| Change in unfunded commitment<br> reserves | 123 | 343 | 70 | (204) | (339) | 332 | (239) |
| Total provision for credit losses | $1,855 | $1,440 | $2,701 | $2,659 | $2,701 | $8,655 | $8,827 |
ALLOWANCE FOR CREDIT LOSS COMPOSITION
| As of | |||||
|---|---|---|---|---|---|
| December 31,2025 | September 30,2025 | June 30,2025 | March 31,2025 | December 31,2024 | |
| (In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | (In Thousands) | |
| Allowance for credit losses: | |||||
| Loans collectively evaluated | 30,327 | 31,065 | 30,685 | 28,813 | 26,867 |
| Loans individually evaluated | 5,550 | 5,625 | 6,176 | 6,423 | 8,918 |
| Unfunded commitments reserve | 1,815 | 1,692 | 1,349 | 1,279 | 1,483 |
| Total | 37,692 | 38,382 | 38,210 | 36,515 | 37,268 |
| Loans and lease receivables: | 3,373,241 | 3,334,956 | 3,250,925 | 3,184,400 | 3,113,128 |
All values are in US Dollars.
PERFORMANCE RATIOS
| For the Three Months Ended | For the Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| (Unaudited) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Return on average assets (annualized) | 1.25% | 1.40% | 1.14% | 1.14% | 1.52% | 1.24% | 1.20% |
| Return on average tangible common equity (annualized) | 14.83% | 17.29% | 14.17% | 14.13% | 19.21% | 15.25% | 15.35% |
| Efficiency ratio | 56.61% | 57.44% | 60.97% | 60.28% | 56.94% | 58.78% | 60.61% |
| Interest rate spread | 2.99% | 3.11% | 3.10% | 3.11% | 3.11% | 3.07% | 2.96% |
| Net interest margin | 3.53% | 3.68% | 3.67% | 3.69% | 3.77% | 3.64% | 3.66% |
| Average interest-earning assets to average interest-bearing liabilities | 119.25% | 118.66% | 118.94% | 119.95% | 121.59% | 119.19% | 121.73% |
ASSET QUALITY RATIOS
| (Unaudited) | As of | ||||
|---|---|---|---|---|---|
| (Dollars in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Non-accrual loans and leases | $43,855 | $23,513 | $28,633 | $24,056 | $28,367 |
| Repossessed assets | — | — | 31 | 36 | 51 |
| Total non-performing assets | $43,855 | $23,513 | $28,664 | $24,092 | $28,418 |
| Non-accrual loans and leases as a<br> percent of total gross loans and leases | 1.30% | 0.70% | 0.88% | 0.76% | 0.91% |
| Non-performing assets as a percent of<br> total gross loans and leases plus<br> repossessed assets | 1.30% | 0.70% | 0.88% | 0.76% | 0.91% |
| Non-performing assets as a percent of<br> total assets | 1.07% | 0.58% | 0.72% | 0.61% | 0.74% |
| Allowance for credit losses as a percent<br> of total gross loans and leases | 1.12% | 1.15% | 1.18% | 1.15% | 1.20% |
| Allowance for credit losses as a percent<br> of non-accrual loans and leases | 85.95% | 163.24% | 133.45% | 151.79% | 131.38% |
NET CHARGE-OFFS (RECOVERIES)
| (Unaudited) | For the Three Months Ended | For the Twelve Months Ended | |||||
|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Charge-offs | $2,809 | $1,708 | $1,338 | $3,810 | $1,132 | $9,665 | $5,255 |
| Recoveries | (264) | (440) | (332) | (398) | (190) | (1,434) | (699) |
| Net charge-offs (recoveries) | $2,545 | $1,268 | $1,006 | $3,412 | $942 | $8,231 | $4,556 |
| Net charge-offs (recoveries) as a percent of average gross loans and leases (annualized) | 0.30% | 0.15% | 0.12% | 0.43% | 0.12% | 0.25% | 0.15% |
CAPITAL RATIOS
| As of and for the Three Months Ended | |||||
|---|---|---|---|---|---|
| (Unaudited) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Total capital to risk-weighted assets | 12.24% | 12.18% | 12.25% | 12.20% | 12.08% |
| Tier I capital to risk-weighted assets | 9.79% | 9.67% | 9.66% | 9.60% | 9.45% |
| Common equity tier I capital to risk-<br> weighted assets | 9.48% | 9.34% | 9.33% | 9.26% | 9.10% |
| Tier I capital to adjusted assets | 8.86% | 8.87% | 8.82% | 8.77% | 8.78% |
| Tangible common equity to tangible<br> assets | 8.54% | 8.31% | 8.04% | 7.93% | 7.93% |
LOAN AND LEASE RECEIVABLE COMPOSITION
| (Unaudited) | As of | ||||
|---|---|---|---|---|---|
| (in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Commercial real estate: | |||||
| Commercial real estate - owner occupied | $293,706 | $287,005 | $262,988 | $258,050 | $273,397 |
| Commercial real estate - non-owner occupied | 885,870 | 871,807 | 846,990 | 838,634 | 845,298 |
| Construction | 248,560 | 236,590 | 218,840 | 215,613 | 221,086 |
| Multi-family | 571,468 | 565,102 | 573,208 | 549,220 | 530,853 |
| 1-4 family | 60,661 | 66,735 | 45,171 | 48,450 | 46,496 |
| Total commercial real estate | 2,060,265 | 2,027,239 | 1,947,197 | 1,909,967 | 1,917,130 |
| Commercial and industrial | 1,273,997 | 1,264,111 | 1,259,171 | 1,229,098 | 1,151,720 |
| Consumer and other | 40,965 | 45,323 | 45,744 | 46,190 | 45,000 |
| Total gross loans and leases receivable | 3,375,227 | 3,336,673 | 3,252,112 | 3,185,255 | 3,113,850 |
| Less: | |||||
| Allowance for credit losses | 35,877 | 36,690 | 36,861 | 35,236 | 35,785 |
| Deferred loan fees | 1,986 | 1,717 | 1,187 | 855 | 722 |
| Loans and leases receivable, net | $3,337,364 | $3,298,266 | $3,214,064 | $3,149,164 | $3,077,343 |
DEPOSIT COMPOSITION
| (Unaudited) | As of | ||||
|---|---|---|---|---|---|
| (in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Non-interest-bearing transaction accounts | $378,770 | $400,697 | $396,448 | $433,201 | $436,111 |
| Interest-bearing transaction accounts | 1,103,696 | 1,050,233 | 1,047,434 | 1,015,846 | 965,637 |
| Money market accounts | 905,773 | 840,477 | 833,684 | 831,897 | 809,695 |
| Certificates of deposit | 284,764 | 300,703 | 255,533 | 181,751 | 184,986 |
| Wholesale deposits | 707,412 | 740,961 | 772,123 | 780,348 | 710,711 |
| Total deposits | $3,380,415 | $3,333,071 | $3,305,222 | $3,243,043 | $3,107,140 |
| Uninsured deposits | $1,220,177 | $1,100,868 | $1,069,509 | $1,055,347 | $980,278 |
| Less: uninsured deposits collateralized by pledged assets | 68,656 | 72,561 | 67,990 | 9,344 | 6,864 |
| Total uninsured, net of collateralized deposits | 1,151,521 | 1,028,307 | 1,001,519 | 1,046,003 | 973,414 |
| % of total deposits | 34.1% | 30.9% | 30.3% | 32.3% | 31.3% |
SOURCES OF LIQUIDITY
| (Unaudited) | As of | ||||
|---|---|---|---|---|---|
| (in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Short-term investments | $8,714 | $8,074 | $72,520 | $136,033 | $128,207 |
| Collateral value of unencumbered pledged loans | 992,398 | 906,042 | 893,499 | 973,494 | 444,453 |
| Market value of unencumbered securities | 388,474 | 376,783 | 347,196 | 324,365 | 310,125 |
| Readily accessible liquidity | 1,389,586 | 1,290,899 | 1,313,215 | 1,433,892 | 882,785 |
| Fed fund lines | 45,000 | 45,000 | 45,000 | 45,000 | 45,000 |
| Excess brokered CD capacity(1) | 775,851 | 732,951 | 645,843 | 477,468 | 981,463 |
| Total liquidity | $2,210,437 | $2,068,850 | $2,004,058 | $1,956,360 | $1,909,248 |
| Total uninsured, net of collateralized deposits | 1,151,521 | 1,028,307 | 1,001,519 | 1,046,003 | 973,414 |
- Bank internal policy limits brokered CDs to 50% of total bank funding when combined with value of unencumbered pledged loans.
PRIVATE WEALTH OFF-BALANCE SHEET COMPOSITION
| (Unaudited) | As of | ||||
|---|---|---|---|---|---|
| (in thousands) | December 31,<br>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Trust assets under management | $3,541,768 | $3,543,594 | $3,461,659 | $3,184,197 | $3,160,449 |
| Trust assets under administration | 272,910 | 270,222 | 268,996 | 240,366 | 258,255 |
| Total trust assets | $3,814,678 | $3,813,816 | $3,730,655 | $3,424,563 | $3,418,704 |
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>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Common stockholders’ equity | $359,593 | $346,327 | $332,803 | $324,071 | $316,597 |
| Less: Goodwill and other intangible assets | (11,985) | (12,041) | (12,049) | (12,058) | (11,912) |
| Tangible common equity | $347,608 | $334,286 | $320,754 | $312,013 | $304,685 |
| Common shares outstanding | 8,325,376 | 8,324,387 | 8,323,470 | 8,301,967 | 8,293,928 |
| Book value per share | $43.19 | $41.60 | $39.98 | $39.04 | $38.17 |
| Tangible book value per share | 41.75 | 40.16 | 38.54 | 37.58 | 36.74 |
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, 2024. 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>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 |
| Common stockholders’ equity | $359,593 | $346,327 | $332,803 | $324,071 | $316,597 |
| Less: Goodwill and other intangible assets | (11,985) | (12,041) | (12,049) | (12,058) | (11,912) |
| Tangible common equity (a) | $347,608 | $334,286 | $320,754 | $312,013 | $304,685 |
| Total assets | $4,081,887 | $4,034,845 | $4,002,725 | $3,944,879 | $3,853,215 |
| Less: Goodwill and other intangible assets | (11,985) | (12,041) | (12,049) | (12,058) | (11,912) |
| Tangible assets (b) | $4,069,902 | $4,022,804 | $3,990,676 | $3,932,821 | $3,841,303 |
| Tangible common equity to tangible assets | 8.54% | 8.31% | 8.04% | 7.93% | 7.93% |
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>2025 | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | December 31,<br>2025 | December 31,<br>2024 |
| Total non-interest expense | $24,130 | $25,700 | $24,968 | $24,719 | $23,152 | $99,519 | $93,480 |
| Less: | |||||||
| Net loss on repossessed assets | — | 31 | 4 | (8) | 5 | 27 | 168 |
| Impairment of tax credit investments | 229 | — | — | 110 | 400 | 339 | 400 |
| Contribution to First Business Charitable Foundation | — | 234 | — | — | 0 | 234 | — |
| SBA recourse (benefit) provision | 0 | (5) | (59) | — | (687) | (64) | (104) |
| Total operating expense (a) | $23,901 | $25,440 | $25,023 | $24,617 | $23,434 | $98,983 | $93,016 |
| Net interest income | $34,762 | $34,886 | $33,784 | $33,258 | $33,148 | $136,690 | $124,206 |
| Total non-interest income | 7,461 | 9,640 | 7,255 | 7,579 | 8,005 | 31,937 | 29,251 |
| Less: | |||||||
| Net loss on sale of securities | — | — | — | — | — | — | (8) |
| Bank owned life insurance claim | — | 234 | — | — | — | 234 | — |
| Adjusted non-interest income | 7,461 | 9,406 | 7,255 | 7,579 | 8,005 | 31,703 | 29,259 |
| Total operating revenue (b) | $42,223 | $44,292 | $41,039 | $40,837 | $41,153 | $168,393 | $153,465 |
| Efficiency ratio | 56.61% | 57.44% | 60.97% | 60.28% | 56.94% | 58.78% | 60.61% |
| Pre-tax, pre-provision adjusted earnings (b - a) | $18,322 | $18,852 | $16,016 | $16,220 | $17,719 | $69,410 | $60,449 |
| Average total assets | $4,181,341 | $4,043,516 | $3,928,087 | $3,842,368 | $3,746,608 | $3,999,878 | $3,626,273 |
NASDAQ: FBIZ Earnings Release Supplement Fourth Quarter 2025
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; (ii) Uncertainty created by potential federal government actions relating to the authority of regulatory agencies (including bank regulators), international trade policy, and other significant 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 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, 2024 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
Highlights Q4 2025 Full Year PTPP Earnings +15% Continued loan and deposit growth and diversified fee income sources drove 15% annual growth in pre-tax, pre-provision earnings and 14% annual growth in net income. Efficiency 56.61% Efficiency ratio improved to 56.61%. Efficiency ratio for the full year was 58.78% compared to 60.61% for 2024, producing positive operating leverage for the fourth consecutive year. Loans +5% Loans grew 4.6% annualized from the linked quarter and 8.4% year-over-year. Loan growth was muted by elevated payoffs in the second half of 2025 Core Deposits +12% NIM 3.53% Included a 10 bp impact of non-accrual interest reversals in the quarter. Net interest margin was 3.63% excluding this item, compared to 3.68% in the linked quarter, reflecting effective match funding strategy and pricing discipline. Dividend +17% Quarterly cash dividend was increased 17%, to $0.34 per share, marking the 14th consecutive annual increase. TBVPS +16% Tangible book value per share grew 15.9% annualized from the linked quarter and 13.7% from Q4 2024. Core deposits grew 12.5% annualized from the linked quarter and 11.5% from Q4 2024. Core deposit funding mix improved to 74.7% from 71.5% in the linked quarter.
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.
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 Goal is 10% annual deposit and loan growth Total payoffs in 2025 exceeded 2024 levels by almost $70 million Full year 2025 total loan growth was 11% when normalized for the above-average payoffs Niche lending businesses provide support across various economic cycles core deposit growth supports loan growth +12% LQA +11% YOY +5% LQA +8% YOY
Diversified Lending Growth Continuing To Grow Higher-Yielding C&I PORTFOLIO 3-Year Loan CAGR C&I = 18% CRE & Other = 10%
Strong and Resilient Net Interest Margin Represents $892,000 of non-accrual interest reversals in Q4. 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 4Q25. MATCH FUNDING STRATEGY SUPPORTS Long-term NIM stability Included a 10bp impact of non-accrual interest reversals
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
Operating Revenue Highlights Continued strong revenue supported by: Robust loan and deposit growth Strong and stable net interest margin Diverse sources of non‐interest income, including service fees from our Private Wealth Management business, which comprised 46% of YTD total non‐interest income Strategic investments drive growth while maintaining positive long‐term operating leverage 1. Operating Revenue is a non-GAAP measurement. Refer to the non-GAAP reconciliation schedule section of the Company’s Q4 earnings release.. Balanced and Steady Growth DIVERSIFIED REVENUE SOURCES Operating Revenue1 +10% YOY
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 For more detailed definitions of credit quality categories, see the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2025. As of 12/31/25, 92% 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 Loans - Quarterly 4Q24 1Q25 2Q25 3Q25 4Q25 Current 99.3% 99.9% 99.9% 99.8% 99.4% 30-59 PD 0.7% 0.0% 0.1% 0.1% 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 loans comprised 99% of the Bank’s total loan portfolio as of December 31, 2025 Outside the isolated NPL, 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 Equipment finance transportation portfolio continues to improve and shrink CRE markets are strong Niche C&I businesses performing well and growing Credit Quality Indicators
Non-Performing Assets SINGLE BORROWER DOWNGRADE IN Q4 2025 WITH STRONG COLLATERAL POSITION For more detailed definitions of credit quality categories, see the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2025. $20.4 million of CRE loans related to a single Wisconsin-based borrower were downgraded in Q4 2025 Isolated, internal management challenges limited the client’s ability to advance raw land projects to multi-family development Land is in healthy markets and appraisals exceed carrying values; no specific reserve was recorded The reduced coverage ratio is indicative of the strong collateral positions on these loans The client’s $9 million additional outstanding loans are current, well-occupied multi-family properties
Robust Liquidity with Stable Deposit Base Stable Core Deposit Base Substantial Liquidity Source 12/31/2025 12/31/2024 Short-term investments $8,714 $128,207 Collateral value of unencumbered pledged loans 992,398 444,453 Market value of unencumbered securities 388,474 310,125 Readily accessible liquidity $1,389,586 $882,785 Fed fund lines 45,000 45,000 Excess brokered CD capacity (1) 775,851 981,463 Total liquidity $2,210,437 $1,909,248 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 12/31/2025 12/31/2024 Uninsured deposits $1,220,177 $980,278 Collateralized public funds 68,656 6,864 FDIC insured deposits 2,091,582 2,119,998 Total deposits $3,380,415 $3,107,140 Percent insured or collateralized 66% 69%
Robust Capital Base Strong Capital Ratios (%) +16% LQ +14% YOY STRONG EARNINGS GENERATE CAPITAL FOR GROWTH 1. “Tangible Book Value Per Share" is a non‐GAAP measurement. Refer to the non-GAAP reconciliation schedule section of the Company’s Q4 earnings release.
Deliver above-average total shareholder return compared to peer median ROATCE and TBV/share are non-GAAP measurements. Refer to the non-GAAP reconciliation schedule of the Company’s Q4 earnings release for additional detail. Represents data from the 2025 employee engagement survey. Net promoter score assesses likelihood to recommend on an 11‐point scale, where detractors (scores 0‐6) are subtracted from promoters (scores 9‐10), while passives (scores 7‐8) are not considered. 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 2024 2025 ROATCE1 ≥15% by 2028 15.4% 15.3% TBV Growth1 ≥10% per year 15.0% 13.7% Revenue Growth ≥10% per year 6.6% 9.7% Efficiency Ratio <60% by 2028 60.61% 58.78% Core Deposits to Total Funding ≥75% 71% 75% Employee Engagement & Participation2 ≥85% 86% 85% Net Promoter Score3 ≥70 70 78