The following table summarizes both the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at March 31, 2017 and December 31, 2016, respectively:



	Actual				Minimum Required for Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in Thousands)
As of March 31, 2017
Total capital (to risk-weighted assets)
Consolidated	$	206,010	11.55	%	$	142,712	8.00	%	165,011		9.250	%	N/A		N/A
First Business Bank	148,557		11.35		104,691		8.00		121,049		9.250		$	130,863	10.00	%
First Business Bank — Milwaukee	24,865		10.51		18,920		8.00		21,876		9.250		23,650		10.00
Alterra Bank	31,562		13.23		19,079		8.00		22,060		9.250		23,849		10.00
Tier 1 capital (to risk-weighted assets)
Consolidated	$	163,413	9.16	%	$	107,034	6.00	%	$	129,333	7.250	%	N/A		N/A
First Business Bank	134,629		10.29		78,518		6.00		94,876		7.250		$	104,691	8.00	%
First Business Bank — Milwaukee	22,787		9.64		14,190		6.00		17,146		7.250		18,920		8.00
Alterra Bank	28,548		11.97		14,309		6.00		17,290		7.250		19,079		8.00
Common equity tier 1 capital (to risk-weighted assets)
Consolidated	$	153,405	8.60	%	$	80,276	4.50	%	$	102,574	5.750	%	N/A		N/A
First Business Bank	134,629		10.29		58,888		4.50		75,246		5.750		$	85,061	6.50	%
First Business Bank — Milwaukee	22,787		9.64		10,642		4.50		13,599		5.750		15,372		6.50
Alterra Bank	28,548		11.97		10,732		4.50		13,713		5.750		15,502		6.50
Tier 1 leverage capital (to adjusted assets)
Consolidated	$	163,413	9.26	%	$	70,575	4.00	%	$	70,575	4.00	%	N/A		N/A
First Business Bank	134,629		10.38		51,862		4.00		51,862		4.00		$	64,827	5.00	%
First Business Bank — Milwaukee	22,787		8.93		10,206		4.00		10,206		4.00		12,757		5.00
Alterra Bank	28,548		11.55		9,888		4.00		9,888		4.00		12,360		5.00



	Actual				Minimum Required for Capital Adequacy Purposes				For Capital Adequacy Purposes Plus Capital Conservation Buffer				Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in Thousands)
As of December 31, 2016
Total capital (to risk-weighted assets)
Consolidated	$	204,117	11.74	%	$	139,101	8.00	%	$	149,968	8.625	%	N/A		N/A
First Business Bank	147,811		11.55		102,362		8.00		110,360		8.625		$	127,953	10.00	%
First Business Bank — Milwaukee	24,347		11.02		17,680		8.00		19,062		8.625		22,101		10.00
Alterra Bank	31,699		13.27		19,106		8.00		20,599		8.625		23,882		10.00
Tier 1 capital (to risk-weighted assets)
Consolidated	$	160,964	9.26	%	$	104,326	6.00	%	$	115,193	6.625	%	N/A		N/A
First Business Bank	134,208		10.49		76,772		6.00		84,769		6.625		$	102,362	8.00	%
First Business Bank — Milwaukee	22,323		10.10		13,260		6.00		14,642		6.625		17,680		8.00
Alterra Bank	28,685		12.01		14,329		6.00		15,822		6.625		19,106		8.00
Common equity tier 1 capital (to risk-weighted assets)
Consolidated	$	150,960	8.68	%	$	78,244	4.50	%	$	89,111	5.125	%	N/A		N/A
First Business Bank	134,208		10.49		57,579		4.50		65,576		5.125		$	83,170	6.50	%
First Business Bank — Milwaukee	22,323		10.10		9,945		4.50		11,327		5.125		14,365		6.50
Alterra Bank	28,685		12.01		10,747		4.50		12,240		5.125		15,524		6.50
Tier 1 leverage capital (to adjusted assets)
Consolidated	$	160,964	9.07	%	$	70,985	4.00	%	$	70,985	4.00	%	N/A		N/A
First Business Bank	134,208		10.40		51,600		4.00		51,600		4.00		$	64,500	5.00	%
First Business Bank — Milwaukee	22,323		9.15		9,758		4.00		9,758		4.00		12,198		5.00
Alterra Bank	28,685		10.58		10,842		4.00		10,842		4.00		13,552		5.00