First Business Financial Services Reports Strong Q4 Results

Bank highlights resilient net interest margin, core deposit growth, and expanding fee income in 2025

Jan. 30, 2026 at 4:47pm

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First Business Financial Services (NASDAQ:FBIZ) executives highlighted another outstanding quarter to close 2025, pointing to resilient net interest margin, strong core deposit growth, expanding fee income from Private Wealth, and improved efficiency that supported profitability and capital generation. However, the bank also addressed an isolated credit issue tied to a single commercial real estate borrower that compressed net interest income and lowered net interest margin in Q4.

Why it matters

First Business Financial Services' performance in 2025 demonstrates its ability to navigate challenging economic conditions and maintain solid profitability. The bank's focus on organic growth, relationship-driven lending, and diversified revenue streams has allowed it to deliver consistent earnings growth over the past decade. The isolated credit issue, while concerning, appears manageable and not indicative of broader credit quality problems.

The details

First Business Financial Services reported 14% earnings per share growth in 2025 versus 2024, exceeding the company's long-term annual goal of 10%. The bank also increased its quarterly cash dividend by 17%, citing the year's performance and expectations for continued financial success. However, the bank did record a $20.4 million downgrade of commercial real estate loans tied to a single Wisconsin-based borrower, leading to a $892,000 non-accrual interest reversal that compressed net interest income and lowered net interest margin by 10 basis points in Q4. Management said the majority of the non-performing loans were collateralized by land zoned for multifamily development, with appraised land values exceeding the carrying value of the loans.

  • First Business Financial Services reported Q4 2025 earnings on January 30, 2026.
  • The bank's board approved a 17% increase to the quarterly cash dividend in Q4 2025.

The players

Corey Chambas

CEO of First Business Financial Services.

Dave Seiler

President and COO of First Business Financial Services.

Brian Spielmann

CFO of First Business Financial Services.

First Business Financial Services

A bank holding company headquartered in Madison, Wisconsin, offering commercial banking and financial services through its wholly owned subsidiary, First Business Bank.

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What they’re saying

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— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.