First Business Financial Services Inc
NASDAQ:FBIZ
First Business Financial Services Inc
First Business Financial Services, Inc. operates as a bank holding company, which engages in the provision of commercial banking services. The company is headquartered in Madison, Wisconsin and currently employs 312 full-time employees. The company went IPO on 2005-10-07. The firm is engaged in the commercial banking business through its bank subsidiary, First Business Bank (the Bank). The company operates through the Bank and First Business Specialty Finance, LLC. The Bank operates as a business bank, which delivers a full line of commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. Its products and services include those for business banking, private wealth and bank consulting. The company also offers commercial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration lending and servicing, treasury management services, and company retirement plans. Its private wealth management services include trust and estate administration, financial planning, investment management, consumer lending and private banking.
First Business Financial Services, Inc. operates as a bank holding company, which engages in the provision of commercial banking services. The company is headquartered in Madison, Wisconsin and currently employs 312 full-time employees. The company went IPO on 2005-10-07. The firm is engaged in the commercial banking business through its bank subsidiary, First Business Bank (the Bank). The company operates through the Bank and First Business Specialty Finance, LLC. The Bank operates as a business bank, which delivers a full line of commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. Its products and services include those for business banking, private wealth and bank consulting. The company also offers commercial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration lending and servicing, treasury management services, and company retirement plans. Its private wealth management services include trust and estate administration, financial planning, investment management, consumer lending and private banking.
EPS Growth: First Business Bank delivered a 14% increase in earnings per share for 2025, exceeding its long-term 10% growth target.
Dividend Increase: The board approved a 17% boost to the quarterly cash dividend, reflecting management's confidence in continued performance.
Loan & Deposit Growth: Loan balances grew 8% year-over-year and core deposits rose 12%, with management expecting a return to double-digit loan growth in 2026.
Net Interest Margin: Net interest margin declined to 3.53% in Q4 due to a nonaccrual loan, but excluding this, margin would have been 3.63%. The target range of 3.60%–3.65% is maintained.
Credit Quality: A single large CRE relationship was downgraded, but management emphasized this is isolated and well-collateralized, with no current charge-offs or reserves required.
Operating Efficiency: Positive operating leverage was achieved for the fourth straight year, aided by operating revenue up 10% and expenses up 6.5%.
Fee Income Outlook: Fee income is expected to grow 10% in 2026, with particular strength in private wealth and SBA gains.
Outlook: Management is optimistic about 2026, expecting strong pipelines, solid credit quality, and continued above-industry growth.
