First Business Financial Services (FBIZ)
NASDAQ:FBIZ
Top Page
First Business Financial
(NASDAQ:FBIZ)
Select Model
Select Model
Rating:77Outperform
Price Target:
$67.00
▲(14.65% Upside)
Action:ReiteratedDate:04/15/26
FBIZ scores well on fundamentals and outlook, supported by strong multi-year growth, improving profitability and leverage trends, and upbeat guidance with continued operating leverage. The low P/E and ~2% dividend further strengthen the profile. The main constraints are somewhat stretched technical momentum and bank-specific cyclicality/credit-event sensitivity highlighted by recent one-off credit and margin impacts.
Positive Factors
Core Deposit Franchise
A growing, high-share core deposit base materially strengthens funding stability and lowers reliance on volatile wholesale funding. Over the next 2–6 months this reduces funding cost sensitivity, supports loan growth targets, and gives the bank flexibility to manage NII and balance sheet mix during rate cycles.
Negative Factors
Isolated CRE Credit Event
A single large CRE downgrade shows the portfolio remains exposed to idiosyncratic credit shocks. Such events can compress NII, increase capital provisioning, and create episodic earnings volatility. For regional banks this credit sensitivity is a persistent risk across credit cycles and local markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Core Deposit Franchise
A growing, high-share core deposit base materially strengthens funding stability and lowers reliance on volatile wholesale funding. Over the next 2–6 months this reduces funding cost sensitivity, supports loan growth targets, and gives the bank flexibility to manage NII and balance sheet mix during rate cycles.
Read all positive factors
First Business Financial (FBIZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$489.89M
Dividend Yield2.08%
Average Volume (3M)25.29K
Price to Earnings (P/E)8.8
Beta (1Y)0.79
Revenue Growth8.21%
EPS Growth29.65%
CountryUS
Employees354
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.58
Shares Outstanding8,342,827
10 Day Avg. Volume17,199
30 Day Avg. Volume25,287
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.19
Price to Sales (P/S)1.59
P/FCF Ratio7.25
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda11.32
Forecast
1Y Price Target
$66.50Price Target Upside13.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)6.04
Revenue Forecast (FY)$181.47M
First Business Financial Business Overview & Revenue Model
Company Description
First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high...
How the Company Makes Money
FBIZ primarily makes money through (1) net interest income and (2) noninterest (fee) income. Net interest income is earned from the spread between interest the bank receives on interest-earning assets—primarily commercial and industrial loans, com...
First Business Financial Key Performance Indicators (KPIs)
First Business Financial Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a solid positive picture: the company met or exceeded several strategic goals (double-digit revenue and NII growth, EPS +14%, tangible book +14%, ROATCE >15%), reported strong deposit growth (+12% in Q4) and durable fee income gains, and reiterated targeted NIM and double-digit growth guidance. The principal negatives are isolated and manageable: a single CRE downgrade ($20.4M) that caused a one-time interest reversal (~$892k), elevated payoff activity that temporarily moderated reported loan growth (management normalizes growth to ~11%), partnership income variability and a small number of legacy asset-related charge-offs. Overall, the positive operating and capital results materially outweigh the limited, largely idiosyncratic headwinds, supporting a favorable outlook.Positive Updates
Strong Profitability and Shareholder Returns
EPS grew 14% in 2025 versus 2024, exceeding the long-term 10% earnings growth goal; pretax pre-provision earnings grew nearly 15% year-over-year; return on average tangible common equity was over 15% for the year; tangible book value per share increased 14% year-over-year.
Negative Updates
Isolated CRE Nonaccrual and One-Time Interest Reversal
Downgraded $20.4 million of CRE loans related to a single Wisconsin borrower with total loans outstanding of $29.7 million; no specific reserve recorded due to appraised collateral values, but a nonaccrual interest reversal of $892,000 reduced Q4 net interest income and compressed margin by ~10 basis points.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability and Shareholder Returns
EPS grew 14% in 2025 versus 2024, exceeding the long-term 10% earnings growth goal; pretax pre-provision earnings grew nearly 15% year-over-year; return on average tangible common equity was over 15% for the year; tangible book value per share increased 14% year-over-year.
Read all positive updates
Company Guidance
The company guided to sustained double‑digit top‑line growth and stable margins, reiterating a net interest margin target range of 3.60%–3.65% (Q4 NIM 3.53% — 3.63% ex a 10 bp nonaccrual interest reversal of $892k; FY‑2025 NIM 3.64% vs 3.66% in 2024) and a 10% annual growth target for loans, deposits, revenue and net interest income; management said loan balances grew $39M (≈5% annualized) in Q4 and $261M (≈8% YoY) with average loans up 8% annualized, that 2025 payoffs ran roughly $60–$70M above normal (implying an adjusted full‑year loan growth of ~11%), and core deposits were up 12% quarter‑to‑quarter and year‑over‑year with double‑digit core deposit growth expected to continue. For 2026 they expect to sustain positive operating leverage (2025 operating revenue +10% with operating expenses ≈+6.5%), modestly higher compensation, a continued effective tax rate around 16%–18% (2025 = 16.8%), and fee income growth of ~10% (noting a $904k accounting reclassification and excluding certain one‑offs of $537k and $234k); other key metrics cited as context were pretax pre‑provision earnings +~15% vs 2024, return on average tangible common equity >15%, tangible book value per share +14% YoY, EPS +14% in 2025 (10% long‑term EPS goal; 12% 10‑yr CAGR), Q4 Private Wealth fees $3.8M (+11% YoY), service charges +~20% YoY, net charge‑offs $2.5M, and a 17% increase to the quarterly cash dividend.First Business Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 279.25M | 262.38M | 226.24M | 150.80M | 124.09M |
| Gross Profit | 159.97M | 144.63M | 135.71M | 131.72M | 118.56M |
| EBITDA | 60.45M | 54.89M | 50.77M | 56.31M | 50.58M |
| Net Income | 50.32M | 44.24M | 37.03M | 40.86M | 35.76M |
Balance Sheet | |||||
| Total Assets | 4.08B | 3.85B | 3.51B | 2.98B | 2.65B |
| Cash, Cash Equivalents and Short-Term Investments | 39.48M | 499.09M | 436.52M | 314.71M | 262.81M |
| Total Debt | 259.41M | 327.98M | 339.87M | 466.98M | 418.93M |
| Total Liabilities | 3.71B | 3.52B | 3.22B | 2.72B | 2.42B |
| Stockholders Equity | 371.58M | 328.59M | 289.59M | 260.64M | 232.42M |
Cash Flow | |||||
| Free Cash Flow | 61.10M | 57.27M | 49.41M | 35.42M | 35.60M |
| Operating Cash Flow | 61.70M | 57.49M | 52.29M | 38.65M | 35.99M |
| Investing Cash Flow | -373.38M | -328.47M | -506.85M | -245.27M | -111.01M |
| Financing Cash Flow | 193.47M | 289.17M | 491.38M | 252.19M | 75.22M |
First Business Financial Technical Analysis
Positive
58.44
Price Trends
55.63
Positive
55.18
Positive
52.70
Positive
Market Momentum
1.15
Negative
67.09
Neutral
85.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIZ, the sentiment is Positive. The current price of 58.44 is above the 20-day moving average (MA) of 54.88, above the 50-day MA of 55.63, and above the 200-day MA of 52.70, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIZ.
First Business Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $617.01M | 11.15 | 12.35% | 0.73% | 7.81% | 26.91% | |
77 Outperform | $489.89M | 8.80 | 14.27% | 2.08% | 8.21% | 29.65% | |
73 Outperform | $506.54M | 9.75 | 11.03% | 1.92% | 6.25% | 24.92% | |
69 Neutral | $542.81M | 12.67 | 7.65% | ― | 6.62% | 117.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $520.50M | 12.32 | 4.31% | 5.80% | 4.38% | ― | |
58 Neutral | $455.45M | 14.61 | 6.16% | 3.69% | 50.36% | -56.64% |
* Financial Sector Average
FBIZ
First Business Financial
58.44
13.75
30.78%
HBCP
Home Bancorp
64.55
22.04
51.84%
KRNY
Kearny Financial
7.98
2.54
46.61%
CARE
Carter Bankshares
24.44
9.94
68.55%
RRBI
Red River Bancshares
95.32
46.89
96.83%
COFS
ChoiceOne Financial Services
30.37
5.21
20.69%
First Business Financial Corporate Events
Executive/Board ChangesFinancial Disclosures
First Business Financial Announces Superior PRSU Vesting for Executives
Positive
Apr 14, 2026
On April 9, 2026, the Compensation Committee of First Business Financial Services, Inc. approved the vesting of Performance Restricted Stock Units granted in 2023 to eligible executive officers under its Long-Term Incentive Plan for the 2023–...
Business Operations and StrategyFinancial Disclosures
First Business Financial Highlights Strong 2025 Strategic Performance
Positive
Mar 12, 2026
On March 12, 2026, First Business Financial Services, Inc. released a CEO letter reviewing its performance for the year ended December 31, 2025, highlighting the execution of a long-term strategy centered on business banking without branches and a...
Business Operations and StrategyDividendsFinancial Disclosures
First Business Financial Highlights Strong Q4 Momentum, Strategy
Positive
Feb 3, 2026
On February 3, 2026, First Business Financial Services posted a new fourth-quarter 2025 investor presentation outlining solid operating momentum and progress on its 2024–2028 strategic plan, highlighted by 15% year-over-year growth in pre-ta...
Executive/Board ChangesShareholder Meetings
First Business Financial announces orderly board leadership transition
Neutral
Feb 2, 2026
On January 29, 2026, First Business Financial Services, Inc. announced that longtime director Ralph R. Kauten, who has served on the Board since 2018, intends to retire from the Board at the conclusion of the company’s 2026 Annual Meeting of...
Business Operations and StrategyDividendsFinancial Disclosures
First Business Financial Posts Solid Q4 Results, Raises Dividend
Positive
Jan 29, 2026
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 contin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.