First Business Financial Services Reports Strong Earnings Growth

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: Jan 29 2026

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FBIZ+0.57%

Should l Buy FBIZ?

Source: Newsfilter

Earnings Growth: First Business Financial Services reported a net income of $13.1 million for Q4 2025, translating to an EPS of $1.58, reflecting strong performance in deposit and loan growth despite a decrease from $14.2 million in Q3 2025.
Dividend Increase: The company announced a 17% increase in its quarterly cash dividend to $0.34 per share, marking the 14th consecutive annual increase, demonstrating its commitment to shareholder returns amid strong profitability.
Deposit and Loan Growth: Core deposits grew by $80.9 million, or 12.5% annualized, while total loans increased by $38.6 million, or 4.6% annualized, showcasing the company's competitive position and expansion of client relationships.
Efficiency Ratio Improvement: The efficiency ratio improved to 56.61% from 57.44% in the prior quarter, indicating ongoing efforts in cost management and operational efficiency, which support future profitability growth.

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FBIZ

$59.85+Infinity%1D

Analyst Views on FBIZ

Wall Street analysts forecast FBIZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FBIZ is 61.00 USD with a low forecast of 61.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Analyst Rating

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 59.510

Low

61.00

Averages

61.00

High

61.00

Current: 59.510

Low

61.00

Averages

61.00

High

61.00

Piper Sandler

Nathan Race

Overweight

maintain

$61 -> $70

2026-02-03

Reason

Piper Sandler

Nathan Race

Price Target

$61 -> $70

AI Analysis

2026-02-03

maintain

Overweight

Reason

Piper Sandler analyst Nathan Race raised the firm's price target on First Business Financial to $70 from $61 and keeps an Overweight rating on the shares. The firm says that apart from some credit noise that also resulted in net interest margin compression, First Business generated solid Q4 results with 6% PPNR upside on good cost controls and continued strong core deposit gathering that helped further reduce its wholesale funding reliance.

Keefe Bruyette

Damon DelMonte

Outperform

maintain

$59 -> $63

2026-02-02

Reason

Keefe Bruyette

Damon DelMonte

Price Target

$59 -> $63

2026-02-02

maintain

Outperform

Reason

Keefe Bruyette analyst Damon DelMonte raised the firm's price target on First Business Financial to $63 from $59 and keeps an Outperform rating on the shares.

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About FBIZ

First Business Financial Services, Inc. is a bank holding company. It is engaged in the commercial banking business through its bank subsidiary, First Business Bank (the Bank). The Bank operates as a business bank, delivering a full line of commercial banking products and services tailored to meet the specific needs of small and medium-sized businesses, business owners, executives, professionals, and high-net-worth individuals. Its products and services are focused on business banking, private wealth, and bank consulting. Within business banking, it offers commercial real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions and company retirement services. Its private wealth management services include trust and estate administration, financial planning, investment management and private banking.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

First Business Financial Services, Inc. Q4 2025 Earnings Highlights

Jan 30 2026seekingalpha

Significant Earnings Growth: First Business Bank reported a 14% year-over-year increase in EPS for Q4 2025, exceeding the company's long-term growth target of 10%, indicating strong profitability and sustained market competitiveness.
Strong Private Wealth Performance: The Private Wealth division generated $3.8 million in fee income, an 11% year-over-year increase, with service charges rising nearly 20%, demonstrating the company's successful expansion in high-end client services.
Dividend Increase: The company announced a 17% increase in its quarterly cash dividend, reflecting its robust financial position and commitment to shareholder returns, while also enhancing its attractiveness to future investors.
Credit Quality Concerns: While management emphasized that most of the loan portfolio is performing well, a $20.4 million downgrade in commercial real estate loans due to issues with a single borrower highlights challenges in credit quality management.