Net interest income accelerated to $38.1 million in 2026Q2, a 12.9% year-over-year increase, while the efficiency ratio improved to 37.8%, demonstrating positive operating leverage as revenue growth outpaces expense increases.
First Business Financial Services, Inc. (FBIZ) annual income statement — 23-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Net Interest Income | 143.31M | 136.69M | 124.21M | 112.59M | 98.42M | 84.66M | 77.07M | 69.86M | 67.34M | 60.61M | 63.33M | 58.64M | 46.13M | 42.1M | 37.88M | 35.46M | 31.95M | 28.03M | 26.26M | 23.21M | 18.97M | 17.78M | 16.86M | 15.33M |
| NII Growth % | 37.08% | 10.05% | 10.32% | 14.39% | 16.25% | 9.85% | 10.33% | 3.73% | 11.11% | -4.29% | 7.99% | 27.12% | 9.56% | 11.15% | 6.82% | 10.99% | 13.97% | 6.76% | 13.14% | 22.33% | 6.72% | 5.41% | 10.01% | - |
| Net Interest Margin % | 3.25% | 3.35% | 3.22% | 3.21% | 3.31% | 3.19% | 3% | 3.33% | 3.42% | 3.38% | 3.56% | 3.29% | 2.83% | 3.32% | 3.09% | 3.01% | 2.89% | 2.51% | 2.6% | 2.53% | 2.41% | 2.66% | 3% | 2.96% |
| Interest Income | 253.41M | 247.31M | 233.13M | 194.93M | 121.37M | 96M | 94.18M | 102.04M | 91.28M | 75.81M | 78.12M | 72.47M | 57.7M | 53.81M | 54.77M | 56.22M | 56.63M | 56.36M | 59.77M | 59.49M | 47.66M | 36.51M | 28.14M | 27M |
| Interest Expense | 110.11M | 110.62M | 108.92M | 82.34M | 22.95M | 11.33M | 17.11M | 32.18M | 23.93M | 15.2M | 14.79M | 13.83M | 11.57M | 11.71M | 16.89M | 20.76M | 24.68M | 28.32M | 33.52M | 36.28M | 28.69M | 18.73M | 11.27M | 11.68M |
| Loan Loss Provision | 8.32M | 8.65M | 8.83M | 8.18M | -3.87M | -5.8M | 16.81M | 2.27M | 7.41M | 8.41M | 9.89M | 3.39M | 1.24M | -959K | 4.24M | 4.25M | 7.04M | 8.22M | 4.3M | 2.9M | 1.52M | 400K | -540K | 200K |
| Non-Interest Income | 34.44M | 31.94M | 29.25M | 31.31M | 29.43M | 28.1M | 24.55M | 19.33M | 16.08M | 13.88M | 14.3M | 17.01M | 10.1M | 8.44M | 8.7M | 7.06M | 6.74M | 6.45M | 5.11M | 4.42M | 3.67M | 4.24M | 3.27M | -12.92M |
| Non-Interest Income % | 19.38% | 18.94% | 19.06% | 21.76% | 23.02% | 24.92% | 24.15% | 21.67% | 19.28% | 18.63% | 18.42% | 22.49% | 17.97% | 16.7% | 18.68% | 16.6% | 17.43% | 18.7% | 16.28% | 15.99% | 16.22% | 19.26% | 16.23% | -537.34% |
| Total Net Revenue | 177.75M | 168.63M | 153.46M | 143.9M | 127.85M | 112.76M | 101.62M | 89.19M | 83.43M | 74.49M | 77.63M | 75.65M | 56.23M | 50.55M | 46.58M | 42.52M | 38.69M | 34.48M | 31.36M | 27.62M | 22.64M | 22.02M | 20.13M | 2.4M |
| Revenue Growth % | 10.34% | 9.89% | 6.64% | 12.55% | 13.38% | 10.97% | 13.94% | 6.9% | 12% | -4.04% | 2.61% | 34.53% | 11.25% | 8.52% | 9.55% | 9.89% | 12.21% | 9.95% | 13.54% | 21.99% | 2.86% | 9.36% | 737.05% | - |
| Non-Interest Expense | 104.63M | 99.52M | 93.48M | 88.58M | 79.47M | 71.53M | 66.5M | 62.41M | 58.37M | 51.85M | 50.67M | 47.37M | 33.77M | 30.37M | 28.66M | 26.4M | 28.36M | 24.5M | 21.88M | 19.66M | 15.7M | 14.4M | 13.16M | -5.06M |
| Efficiency Ratio | 58.86% | 59.02% | 60.92% | 61.55% | 62.16% | 63.44% | 65.45% | 69.98% | 69.96% | 69.6% | 65.28% | 62.62% | 60.06% | 60.08% | 61.53% | 62.08% | 73.29% | 71.05% | 69.78% | 71.16% | 69.32% | 65.42% | 65.36% | -210.27% |
| Operating Income | 64.8M | 60.45M | 51.15M | 47.14M | 52.24M | 47.03M | 18.3M | 24.5M | 17.65M | 14.23M | 17.07M | 24.89M | 21.22M | 21.14M | 13.68M | 11.87M | 3.29M | 1.76M | 5.18M | 5.06M | 5.43M | 7.21M | 7.51M | 7.26M |
| Operating Margin % | 36.46% | 35.85% | 33.33% | 32.76% | 40.86% | 41.71% | 18.01% | 27.47% | 21.16% | 19.1% | 21.98% | 32.9% | 37.74% | 41.81% | 29.36% | 27.93% | 8.5% | 5.1% | 16.52% | 18.33% | 23.97% | 32.76% | 37.33% | 301.95% |
| Operating Income Growth % | - | 18.19% | 8.51% | -9.77% | 11.09% | 156.92% | -25.28% | 38.77% | 24.05% | -16.61% | -31.44% | 17.29% | 0.41% | 54.54% | 15.18% | 260.91% | 87.14% | -66.06% | 2.31% | -6.72% | -24.74% | -4.02% | 3.47% | - |
| Pretax Income | 64.8M | 60.45M | 51.15M | 47.14M | 52.24M | 47.03M | 18.3M | 24.5M | 17.65M | 14.23M | 17.07M | 24.89M | 21.22M | 21.14M | 13.68M | 11.87M | 3.29M | 1.76M | 5.18M | 5.06M | 5.43M | 7.21M | 7.51M | 7.26M |
| Pretax Margin % | 36.46% | 35.85% | 33.33% | 32.76% | 40.86% | 41.71% | 18.01% | 27.47% | 21.16% | 19.1% | 21.98% | 32.9% | 37.74% | 41.81% | 29.36% | 27.93% | 8.5% | 5.1% | 16.52% | 18.33% | 23.97% | 32.76% | 37.33% | 301.95% |
| Income Tax | 9.29M | 10.13M | 6.91M | 10.11M | 11.39M | 11.28M | 1.33M | 1.18M | 1.35M | 2.33M | 2.16M | 8.38M | 7.08M | 7.39M | 4.75M | 3.45M | 2.35M | 717K | 2.06M | 1.81M | 1.68M | 2.46M | 3.25M | 873K |
| Effective Tax Rate % | 14.34% | 16.76% | 13.5% | 21.45% | 21.79% | 23.97% | 7.25% | 4.8% | 7.65% | 16.34% | 12.63% | 33.65% | 33.38% | 34.96% | 34.73% | 29.05% | 71.4% | 40.78% | 39.69% | 35.69% | 30.97% | 34.04% | 43.32% | 12.02% |
| Net Income | 55.51M | 50.32M | 44.24M | 37.03M | 40.86M | 35.76M | 16.98M | 23.32M | 16.3M | 11.9M | 14.91M | 16.51M | 14.14M | 13.75M | 8.93M | 8.43M | 941K | 1.04M | 3.12M | 3.26M | 3.75M | 4.76M | 4.26M | 5.65M |
| Net Margin % | 31.23% | 29.84% | 28.83% | 25.73% | 31.96% | 31.71% | 16.71% | 26.15% | 19.54% | 15.98% | 19.21% | 21.83% | 25.14% | 27.19% | 19.16% | 19.81% | 2.43% | 3.02% | 9.96% | 11.79% | 16.55% | 21.61% | 21.16% | 234.84% |
| Net Income Growth % | 16.77% | 13.73% | 19.49% | -9.38% | 14.27% | 110.6% | -27.21% | 43.07% | 36.94% | -20.15% | -9.72% | 16.8% | 2.86% | 54% | 5.95% | 795.32% | -9.61% | -66.68% | -4.05% | -13.1% | -21.23% | 11.69% | -24.59% | - |
| Net Income (Continuing) | 55.51M | 50.32M | 44.24M | 37.03M | 40.86M | 35.76M | 16.98M | 23.32M | 16.3M | 11.9M | 14.91M | 16.51M | 14.14M | 13.75M | 8.93M | 8.43M | 941K | 1.04M | 3.12M | 3.26M | 3.75M | 4.76M | 4.26M | 6.39M |
| EPS (Diluted) | 6.76 | 6.06 | 5.20 | 4.33 | 4.75 | 4.17 | 1.97 | 2.68 | 1.86 | 1.36 | 1.71 | 1.90 | 1.76 | 1.75 | 1.65 | 1.62 | 0.19 | 0.21 | 0.62 | 0.66 | 0.75 | 0.97 | 0.92 | 1.01 |
| EPS Growth % | 17.97% | 16.54% | 20.09% | -8.84% | 13.91% | 111.68% | -26.49% | 44.09% | 36.76% | -20.47% | -10% | 7.95% | 0.57% | 6.06% | 1.85% | 752.63% | -9.52% | -66.13% | -6.06% | -12% | -22.68% | 5.43% | -8.91% | - |
| EPS (Basic) | - | 6.06 | 5.20 | 4.33 | 4.75 | 4.17 | 1.97 | 2.68 | 1.86 | 1.36 | 1.71 | 1.90 | 1.76 | 1.75 | 1.65 | 1.62 | 0.19 | 0.21 | 0.62 | 0.67 | 0.76 | 0.98 | 0.95 | 1.41 |
| Diluted Shares Outstanding | 8.21M | 8.16M | 8.15M | 8.13M | 8.23M | 8.31M | 8.38M | 8.52M | 8.64M | 8.61M | 8.57M | 8.55M | 7.9M | 7.88M | 7.83M | 5.02M | 4.97M | 4.91M | 4.86M | 4.93M | 5M | 4.93M | 4.64M | 5.59M |
Quick answers to the most common questions about buying FBIZ stock.
For fiscal year 2025, First Business Financial Services, Inc. (FBIZ) reported total revenue of $168.6M. This represents a 6911.5% increase compared to $2.4M in 2003.
First Business Financial Services, Inc. (FBIZ) is profitable, generating $50.3M in net income for the fiscal year ending 2025 with a net profit margin of 18.0%.
First Business Financial Services, Inc. (FBIZ) reported an operating income of $60.5M, resulting in an operating profit margin of 21.6%. This margin reflects the operational efficiency of the business before interest and taxes.
First Business Financial Services, Inc. (FBIZ) generated $160.0M in gross profit for the year, representing a gross profit margin of 57.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Fee income volatility and provision swings
Metrics are mathematically derived from official filings.
NII Growth Accelerates on Volume and Spread
Net interest income grew 12.9% year-over-year in 2026Q2, reaching $38.1 million, driven by consistent loan volume expansion and a stable net interest margin environment, as reported in the company's quarterly financial statements.
The sustained double-digit NII growth trajectory, with NII expanding from $29.5M in 2024Q1 to $38.1M in 2026Q2, suggests the bank is successfully growing its earning asset base. This growth appears to be volume-driven rather than margin-driven, as NIM has remained relatively stable in the 0.8%-0.9% range, indicating disciplined loan pricing and deposit gathering in the current rate environment.
NIM Stability Amidst Rate Uncertainty
Net interest margin has remained remarkably stable between 0.8% and 0.9% over the past ten quarters, suggesting effective asset-liability management despite fluctuating interest rates, according to the company's reported financial metrics.
The consistency in NIM, holding at 0.9% in the most recent quarter, indicates the bank has managed its deposit betas and asset repricing effectively. This stability is noteworthy for a regional bank and suggests the balance sheet is well-positioned for the current rate cycle, though investors should monitor whether this stability can be maintained if the Federal Reserve alters its policy stance significantly.
Efficiency Ratio Improves on Revenue Scale
The efficiency ratio improved to 37.8% in 2026Q2 from 37.3% in 2024Q1, demonstrating positive operating leverage as revenue growth outpaces non-interest expense increases, based on the company's quarterly operational data.
The improving efficiency ratio, which has trended down from the 37% range to the high-30s, suggests the bank is scaling its operations effectively. This operational discipline is translating into stronger pre-provision net revenue (PPNR), with operating income growing from $10.6M to $16.8M over the period, indicating the bank is converting revenue growth into profitability.
Provision Volatility Reflects Credit Cycle Awareness
Provision expense has fluctuated significantly, ranging from $1.4M to $3.0M over the past ten quarters, suggesting management is actively adjusting reserves based on evolving credit conditions rather than maintaining a static provisioning approach.
The variability in provision expense, with the most recent quarter at $2.1M following a $3.0M provision in 2026Q1, indicates the bank is taking a dynamic approach to credit risk management. This pattern suggests management is responding to specific portfolio developments rather than following a mechanical formula, which warrants monitoring to assess whether these adjustments accurately reflect underlying credit quality trends.
Fee Income Contribution Remains Modest but Stable
Non-interest income represented 11.6% of total revenue in 2026Q2, with fee income ranging between 10.6% and 13.1% over the past ten quarters, indicating a consistent but limited contribution to overall earnings.
The relatively stable fee income contribution suggests the bank has a consistent, though not dominant, non-interest revenue stream. The modest fee percentage indicates the bank remains primarily dependent on net interest income for earnings, which may limit revenue diversification benefits but also reduces exposure to volatile capital markets or transaction-based fee cycles.
NIM Compression Risk in a Falling Rate Environment
The bank's stable NIM of 0.9% is highly sensitive to interest rate movements, and a potential Federal Reserve rate cut cycle could compress margins if asset yields reprice faster than deposit costs, as indicated by the tight spread between asset yields and funding costs.
While the current NIM stability is a strength, it also represents a vulnerability. The bank's NIM has not expanded significantly during the recent high-rate period, suggesting limited upside from further rate increases. Conversely, in a rate-cutting cycle, the bank's asset-sensitive balance sheet could see NIM contract if loan yields decline before deposit costs adjust downward, potentially pressuring earnings growth. Investors should monitor the bank's deposit mix and loan repricing characteristics for evidence of this risk.