FFBW, Inc. (FFBW): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of FFBW, Inc.'s business lines through the BCG Matrix lens, and honestly, for a small community bank, the lines are often less about product segments and more about strategic focus and capital deployment. Here's the quick math on where their cash is coming from and where they're aiming to grow, using the latest numbers up to September 30, 2025. We'll show you how aggressive growth plays in commercial banking are fueling the Stars, supported by a strong core of Cash Cows boasting a 22.9% leverage ratio, while the bank navigates shrinking legacy assets (Dogs) and a recent 4.3% dip in net loans that highlights the uncertainty in their Question Marks.

Background of FFBW, Inc. (FFBW)

You're looking at FFBW, Inc. (FFBW), which operates as the holding company for First Federal Bank of Wisconsin, the Bank. This entity is a federally chartered stock savings bank, and as of late 2025, it serves customers across Waukesha and Milwaukee Counties in Wisconsin, maintaining six branch locations. Honestly, the company's structure is pretty straightforward: FFBW, Inc. is the parent, and the Bank is the wholly owned subsidiary doing the day-to-day banking.

The Bank offers a full suite of services, covering both commercial and consumer banking needs. On the deposit side, this includes noninterest-bearing and interest-bearing checking accounts, money market accounts, statement savings, health savings accounts, and certificates of deposit. For lending, the portfolio is diversified across one- to four-family owner-occupied and investor-owned residential real estate, multifamily residential real estate, commercial real estate, and commercial and industrial loans.

Let's look at the numbers from the most recent filing, the three months ended September 30, 2025. For that quarter, FFBW, Inc. reported a net income of $600,000, which translated to $0.16 per diluted share. You'll notice the net interest margin improved to 4.4% for the period, up from 3.7% at September 30, 2024, showing some pricing discipline is paying off.

The balance sheet reflects some recent activity, too. Total assets stood at $276.3 million as of September 30, 2025, a slight decrease from the end of 2024, largely due to accelerated loan payoffs. The company has been aggressive with capital management; CEO Edward H. Schaefer noted that share repurchases have reduced the outstanding share count by 45% since 2020. Just recently, on August 11, 2025, they announced another program to repurchase up to an additional $5,000,000 of common stock.

At that September 30, 2025, snapshot, the tangible book value per share was $16.42, based on 4,260,000 shares outstanding. The stock trades publicly on the OTCQX under the ticker symbol FFBW, which is definitely something to keep an eye on as they execute these capital return strategies.

FFBW, Inc. (FFBW) - BCG Matrix: Stars

You're looking at the business units within FFBW, Inc. (FFBW) that are clearly leading their segment, demanding investment to maintain that edge. These are the areas with high market share in markets that are still growing, which is why they consume significant cash to fuel that growth.

The Commercial relationship banking unit fits this profile, evidenced by the strategic actions taken early in the year. In the first quarter of 2025, CEO Edward H. Schaefer confirmed the institution instituted a new sales and service program specifically focused on relationship banking. The goal here was clear: to develop a bank-wide sales culture that expedites profitable growth and supports continued net interest margin expansion. This is the investment required to keep a Star shining.

To support this growth initiative, FFBW, Inc. is actively building out its revenue-generating capacity. As of the March 12, 2025, announcement, the company noted that in recent quarters, they had already added to their commercial sales team and planned to further expand the team in 2025 to increase both the customer base and overall earnings. This expansion is a direct cash outlay to support a high-growth area.

The results of these focused efforts are showing up in the forward-looking indicators. By the time the third quarter 2025 results were released in November 2025, the CEO pointed to a growing pipeline of new loans and relationship opportunities for late 2025, signaling strong near-term potential for this segment. This pipeline is what you expect from a Star-future revenue being built right now.

The disciplined pricing strategy supporting this segment is demonstrably working, leading to significant Net Interest Margin (NIM) expansion. This focus on disciplined loan and deposit pricing is what management pointed to as key to strengthening the NIM. Here's a quick look at how the margin has trended across the year, showing consistent improvement:

This progression shows the immediate positive impact of the strategy. The NIM reached its high point of 4.4% in Q3 2025, a clear indicator of success in the pricing discipline applied to the loan and deposit mix, which is central to the commercial banking unit's performance. The key actions driving this Star status are:

• Instituted new relationship banking sales program in Q1 2025.
• Plan to further expand the commercial sales team in 2025.
• CEO noted a growing pipeline of new loan opportunities late in 2025.
• Achieved a peak NIM of 4.4% in Q3 2025.

To be fair, maintaining this growth means FFBW, Inc. is likely reinvesting heavily, keeping the cash flow neutral for now, but the trajectory suggests a strong future Cash Cow if market growth stabilizes.

FFBW, Inc. (FFBW) - BCG Matrix: Cash Cows

Cash Cows for FFBW, Inc. represent stable business units or products that command a high market share within a mature segment, generating excess cash flow that supports the rest of the portfolio. These are the core profit engines you depend on to fund growth elsewhere in the business.

The strength of these Cash Cows at FFBW, Inc. is evident in several key financial metrics as of late 2025, showing a mature, high-share position that requires minimal growth investment but strong operational support.

You see this stability reflected in the composition of the lending activities and the bank's overall capital strength.

• Core deposit base: showing reduced reliance on expensive alternative funding and Certificates of Deposit (CDs) as of Q3 2025.
• Net Interest Margin (NIM) for the three months ended September 30, 2025, stood at 4.4%.
• Tangible book value per share was $16.42 at September 30, 2025.

The primary lending focus, which acts as a major cash generator, is clearly concentrated.

This concentration in commercial lending, a segment where FFBW, Inc. likely holds a leading position, is what drives the high cash generation. You want to maintain that share without overspending on expansion in that specific area.

The bank's capital structure confirms its ability to withstand market shifts and support operations without strain. High capital ratios mean you have a strong buffer.

The Bank's leverage ratio was a strong 22.9% at December 31, 2024. This ratio is well above regulatory minimums, showing you have significant capital backing your assets.

The consistent operating cash flow is quantified by the recent earnings performance, which is the direct output of these Cash Cow units.

Steady net interest income provided the following result:

• Q3 2025 net income was $600,000.

To support these cash generators, investments should focus on efficiency, not market share battles. For instance, total assets were $276.3 million at September 30, 2025, down from $287.9 million at December 31, 2024, showing asset management focused on quality over sheer volume, which is typical for milking a Cash Cow.

Also, note the efficiency in funding costs; total interest expense for Q3 2025 was $849,000, a decrease from $1.3 million in Q3 2024, directly supporting higher margins.

FFBW, Inc. (FFBW) - BCG Matrix: Dogs

You're looking at the units in FFBW, Inc. (FFBW) that are stuck in low-growth markets and have low relative market share. These are the Dogs; they tie up capital without offering much return. Expensive turn-around plans rarely work here, so divestiture is usually the move.

Residential Real Estate Loans and Legacy Portfolio

FFBW, Inc. has made a clear strategic move by exiting the residential mortgage market. This action signals a deliberate reduction in exposure to a segment now classified as a Dog. The legacy residential portfolio, which is in runoff mode, still represented a significant portion of the balance sheet as of September 2024.

Here's how that legacy book looked against the total loan book at that point:

The overall asset base reflects this low-growth environment, showing a contraction as the bank executes these strategic exits. Total assets decreased to $276.3 million at September 30, 2025, down from $287.9 million at December 31, 2024. This reduction of $11.6 million, or 4.0%, was primarily due to a decrease in net loans of $9.7 million, or 4.3%, resulting from accelerated loan payoffs.

Shrinking Non-Interest Income

The non-interest income segment is another area showing Dog characteristics-low growth, trending down. For the three months ended September 30, 2025, noninterest income decreased by 2.4% compared to the same period in 2024, falling to $246,000 from $252,000. Honestly, that decline of $6,000 is small in absolute terms, but the trend matters.

You can see the recent trend in this metric:

• Noninterest income for Q3 2025: $246,000
• Noninterest income decrease (Q3 2025 vs Q3 2024): $6,000
• Percentage decrease in Q3 2025: 2.4%

The CEO noted this decrease was due in part to a decline in service charges and other fees. That's cash flow that isn't growing, which is classic Dog behavior.

Asset Base Contraction

The low market growth environment for these units is reflected in the balance sheet's overall size. FFBW, Inc.'s total assets were reported at $276.3 million as of September 30, 2025. This is a continuation of a shrinking trend, as total assets were $294.8 million at March 31, 2025.

Consider the key balance sheet metrics showing this contraction:

The focus here is minimizing cash consumption and managing the runoff. Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - BCG Matrix: Question Marks

These business units represent FFBW, Inc.'s high-growth market efforts coupled with a currently low market share, demanding significant cash investment to move toward Star status.

Net loan growth figures for the first nine months of 2025 show a contraction, which is counterintuitive for a high-growth segment but aligns with the strategy of exiting certain loan types.

The focus on relationship customers necessitates strategic loan exits, which are essentially shedding lower-margin, transactional business to clear space for higher-quality, relationship-based assets.

• Strategic loan exits were noted as impacting earnings in the second quarter of 2025.
• These exits target lower-margin transactional loans.
• The goal is replacement with relationship customer assets.

Capital rationalization is aggressive, showing a clear commitment to returning capital to shareholders, which consumes cash but is intended to boost per-share metrics, a common tactic for Question Marks hoping to signal future value.

The scale of capital return is significant, as evidenced by the cumulative reduction in share count.

Market share within the core operating area remains a challenge, indicating that despite growth prospects, the current footprint is small relative to the competitive landscape in the targeted counties. This small footprint is a classic characteristic of a Question Mark needing heavy investment to gain traction.

• Operating area includes Waukesha County and Milwaukee County.
• The Bank services this area with only six branch locations.
• This limited physical presence suggests a low current market share in a competitive environment.

The strategy here is clear: invest heavily in the sales culture and pipeline to quickly convert these low-share, high-growth market opportunities into Stars, or risk them becoming Dogs if market adoption stalls. If onboarding takes 14+ days, churn risk rises.