First Business Financial Posts Solid Q4 Results, Raises Dividend

An update from First Business Financial ( (FBIZ) ) is now available.

On January 29, 2026, First Business Bank reported fourth quarter 2025 net income available to common shareholders of $13.1 million, or $1.58 per share, down modestly from $1.70 in the prior quarter and $1.71 a year earlier, but supported by continued balance sheet growth, a stronger efficiency ratio, and expanding tangible book value. Management highlighted robust core deposit growth of 12.5% annualized from the prior quarter and 11.5% year-on-year, as well as loan growth of 4.6% annualized quarter-on-quarter and 8.4% from the fourth quarter of 2024, even as elevated commercial real estate payoffs tempered lending momentum. Net interest margin came in at 3.53%, or 3.63% excluding a 10 basis point drag from non-accrual interest reversals tied largely to a single client, with executives stressing that overall credit quality across the performing portfolio remained stable. The bank’s efficiency ratio improved to 56.61% in the quarter and 58.78% for the full year, marking a fourth consecutive year of positive operating leverage, while tangible book value per share climbed nearly 16% annualized from the prior quarter and 13.7% from a year ago. For full-year 2025, First Business delivered more than 14% growth in both pre-tax, pre-provision adjusted earnings and earnings per share and maintained a 20-year track record of 10% compound annual EPS growth, enabling a 17% increase in its quarterly cash dividend to $0.34 per share—its 14th consecutive annual dividend hike—reinforcing the bank’s shareholder-return story and underscoring its confidence in sustaining double-digit growth targets.

The most recent analyst rating on (FBIZ) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on First Business Financial stock, see the FBIZ Stock Forecast page.

Spark’s Take on FBIZ Stock

According to Spark, TipRanks’ AI Analyst, FBIZ is a Outperform.

First Business Financial Services exhibits strong financial performance with robust profitability and effective leverage management. Technical indicators show positive momentum, though caution is advised due to potential overbought conditions. The valuation is attractive with a low P/E ratio. The earnings call reinforced confidence with positive growth and strategic positioning, despite minor concerns about nonrecurring income and external uncertainties.

To see Spark’s full report on FBIZ stock, click here.

More about First Business Financial

First Business Financial Services, Inc., which operates as First Business Bank, is a Madison, Wisconsin-based commercial bank holding company focused on serving businesses, business owners, and high-net-worth individuals. Traded on Nasdaq under the symbol FBIZ, the bank emphasizes loan and deposit growth, a private wealth platform, and diversified fee income, while pursuing a multi-year strategy centered on double-digit revenue and earnings expansion, disciplined expense management, and improving operating efficiency.

Average Trading Volume: 24,226

Technical Sentiment Signal: Buy

Current Market Cap: $471.1M

Learn more about FBIZ stock on TipRanks’ Stock Analysis page.