FFBW, Inc. (FFBW): Business Model Canvas [Dec-2025 Updated]

You're looking for the real blueprint behind FFBW, Inc.'s (FFBW) performance, trying to see past the quarterly noise, and honestly, their Business Model Canvas reveals a sharp focus on disciplined margin expansion right in their core Wisconsin market. As an analyst who's spent two decades mapping these structures, I can tell you their success hinges on relationship banking, evidenced by a strong 4.4% Net Interest Margin as of Q3 2025 while managing total assets of $276.3 million as of September 30, 2025. This model prioritizes local service and solid capital-you see that in the $16.42 tangible book value-over chasing scale, so check out the full breakdown below to see precisely how their key activities drive those revenue streams.

FFBW, Inc. (FFBW) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships FFBW, Inc. relies on to run its business as of late 2025. These aren't just vendors; they're critical for funding, operations, and community standing.

Local community and non-profit organizations in Milwaukee/Waukesha area

FFBW, Inc.'s standing in its primary assessment area of Waukesha and Milwaukee Counties is tied to its Community Reinvestment Act (CRA) performance. The Office of the Comptroller of the Currency assigned the First Federal Bank of Wisconsin an overall CRA Rating of Satisfactory following its February 20, 2025 evaluation, with the Lending Test also rated Satisfactory. The bank's performance in the Milwaukee-Waukesha MSA was deemed reasonable. This relationship is supported by board-level engagement, such as a director serving on the board of the United Way of Greater Milwaukee and Waukesha County (UWGMWC).

• CRA Overall Rating (as of Feb 20, 2025): Satisfactory
• Lending Test Rating: Satisfactory
• Number of branch locations in service area: six

Core banking system and data processing vendors

Operational efficiency hinges on these technology partners. We see the cost of these relationships reflected in noninterest expenses. For the three months ended March 31, 2025, noninterest expense increased by 6.5% to $2.4 million compared to the prior year period, primarily due to increases in employee and data processing expenses. Similarly, for the three months ended December 31, 2024, data processing expenses were cited as a driver for the 2.0% rise in noninterest expense to $2.4 million.

Mortgage and title insurance service providers

This area has seen a significant strategic shift. FFBW, Inc. has recently exited the residential mortgage market. This means the reliance on traditional mortgage origination partners and associated title/insurance providers for that specific product line has likely diminished or ceased entirely, though they still service existing loans. The loan portfolio as of September 30, 2024, was comprised of 19.9% residential real estate loans.

Federal Home Loan Bank (FHLB) for liquidity and funding

The FHLB remains a key source of wholesale funding and liquidity management. You can see the outstanding balance fluctuate based on the bank's needs and market conditions. Honestly, managing this balance sheet tool is defintely a core partnership function.

Here's the quick math on their FHLB advances as of the first quarter of 2025:

The total outstanding advances from the FHLB stood at $715.0 million as of March 31, 2025, down from $745.0 million at year-end 2024. Also, $435.0 million of this total carried quarterly callable features.

Local real estate professionals for loan origination

Given the recent strategic pivot, the relationship here is heavily weighted toward commercial real estate and business lending, which is the bank's primary focus. As of September 30, 2025, the loan portfolio is driven by commercial lending. The CEO noted a focus on relationship banking to replace transactional loans, which may include commercial real estate relationships.

• Commercial Loans as % of Portfolio (Sept 30, 2024): 80.1%
• Residential Real Estate Loans as % of Portfolio (Sept 30, 2024): 19.9%

Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Key Activities

You're looking at the core actions FFBW, Inc. takes to run its business as of late 2025. These activities are the engine behind their financial performance, especially as they push for relationship-based growth.

Loan origination across commercial and residential real estate

While specific origination volumes for commercial versus residential real estate loans aren't detailed in the latest reports, the focus is clearly on the quality of the assets being added. The CEO noted in November 2025 that the team might exit lower margin transactional loans to replace them with relationship-based customers, suggesting a shift in origination strategy toward higher-quality, stickier business.

Deposit gathering and management for consumer and business accounts

The management of funding costs is a key activity, evidenced by the reduction in interest expense. Total interest expense decreased $\text{443,000}$ for the three months ended September 30, 2025, compared to the same period in 2024, largely due to reduced reliance on alternative funding and certificates of deposit, pointing to successful gathering and management of lower-cost core deposits.

Strengthening Net Interest Margin (NIM) through disciplined pricing

Disciplined pricing on both loans and deposits is a primary, stated focus for the team to drive profit. This activity directly impacts the Net Interest Margin (NIM). The results show success in this area, with the NIM improving significantly year-over-year.

The following table summarizes the NIM performance, which is a direct result of this key activity:

Managing regulatory compliance and credit risk (low nonaccrual loans)

Maintaining rigorous credit discipline is a non-negotiable activity. The low level of nonaccrual loans demonstrates effective risk management. The allowance for credit losses remains well-calibrated to the loan portfolio size.

Here are the key credit quality indicators as of late 2025:

• Nonaccrual loans at September 30, 2025, were only $\text{\$37,000}$, representing 0.02% of total loans.
• Allowance for credit losses stood at $\text{\$2.7 million}$ at September 30, 2025.
• The allowance for credit losses as a percentage of total loans was 1.25% at September 30, 2025.
• Nonaccrual loans at March 31, 2025, were $\text{\$163,000}$, or 0.07% of total loans.

Executing the new relationship banking sales program

The new sales and service program, instituted in the first quarter of 2025, is designed to foster a bank-wide sales culture to expedite profitable growth. This is a forward-looking activity intended to secure the future quality of the loan and deposit base. The focus on relationship banking is a strategic pivot. This is supported by capital management activities, which enhance shareholder returns while the team executes this strategy.

Key supporting figures related to capital management and program execution include:

• Tangible book value per share was \$16.42 at September 30, 2025.
• Shares outstanding were 4,260,000 at September 30, 2025.
• A new share repurchase program of up to $\text{\$5,000,000}$ was announced on August 11, 2025.
• $\text{48,000}$ shares were repurchased under this new program as of November 10, 2025.

Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Key Resources

You're looking at the core assets FFBW, Inc. (FFBW) relies on to execute its business strategy as a community-focused bank. These aren't just line items; they are the engine for their commercial and consumer banking operations in Southeastern Wisconsin.

The most immediate resource is the financial backing. As of September 30, 2025, FFBW, Inc. reported total assets amounting to $276.3 million. That figure reflects the scale of the balance sheet they manage. To support that asset base and absorb potential losses, the firm maintains a specific reserve.

Specifically, the Allowance for Credit Losses totaled $2.7 million as of that same date, September 30, 2025. That reserve level is a direct reflection of management's assessment of credit risk in the loan portfolio. Honestly, for a bank of this size, that allowance is a critical piece of the capital structure.

The physical footprint is tightly focused on their primary market. FFBW, Inc. services customers through six physical branch locations. These branches are strategically placed across Waukesha and Milwaukee Counties, which is where they concentrate their relationship banking efforts.

The legal and regulatory foundation is also a key resource. FFBW, Inc. operates as the holding company for First Federal Bank of Wisconsin, which is a federally chartered stock savings bank license. This charter, along with the associated regulatory capital, is the permission slip to operate and take deposits.

The human capital driving commercial growth is another essential component. While I don't have an exact headcount for late 2025, we know the focus is on growth in this area. As recently as early 2025, the CEO noted they had added to their commercial sales team and looked to further expand that team throughout 2025 to drive earnings and customer base expansion. This team is tasked with developing new loan business and servicing existing commercial relationships.

Here's a quick look at the key financial metrics tied to these resources as of the third quarter of 2025:

The operational resources supporting the commercial effort include specialized personnel and the infrastructure to support lending activities. You can see the focus on the relationship side through the roles described:

• Commercial Loan Officer roles focused on developing new loan business.
• Commercial Loan & Deposit Coordinator supporting documentation and compliance.
• Senior Vice President and Commercial Lending Manager providing leadership.
• A stated goal to continue expanding the commercial sales team in 2025.

The regulatory capital underpinning the charter allows for specific business activities. The bank's leverage ratio was 22.9% at December 31, 2024, which is a strong indicator of the regulatory capital base supporting operations. This capital supports the ability to offer products like SBA 7a Loans, with loan amounts up to $5,000,000.

Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Value Propositions

FFBW, Inc. offers you a value proposition centered on comprehensive banking services delivered with a local touch. The core offering is full-service commercial and consumer banking offerings, provided through its subsidiary, First Federal Bank of Wisconsin, a federally chartered stock savings bank.

A key financial strength supporting this value proposition is the disciplined management of the balance sheet, which has resulted in a strong net interest margin (NIM) of 4.4% for the three months ended September 30, 2025.

The service model emphasizes a localized, community-focused relationship banking service. This focus is supported by the institution's stated goal to strengthen NIM through disciplined loan and deposit pricing and a focus on relationship opportunities.

Your access to capital needs is met through a range of diverse loan products: commercial, residential, and consumer offerings. The commitment to credit quality is evident, with the allowance for credit losses at September 30, 2025, standing at 1.25% of total loans, or $2.7 million.

For investors, the value is reflected in shareholder returns and capital strength. The company reported a high tangible book value per share of $16.42 as of September 30, 2025, based on 4,260,000 shares outstanding at that date. Furthermore, FFBW, Inc. announced a new share repurchase program of up to an additional $5,000,000 of common stock on August 11, 2025, signaling a commitment to enhancing shareholder value.

Here's a quick look at some of the financial metrics underpinning the current value proposition as of the end of Q3 2025:

The service delivery model supports this by focusing on:

• Full-service commercial banking access.
• Consumer banking solutions for individuals.
• Relationship-based service delivery.

The firm is actively managing its capital structure, having repurchased 48,000 shares under the new program as of November 10, 2025. This action directly supports the tangible book value proposition. Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Customer Relationships

You're looking at how FFBW, Inc. connects with its clients and owners as of late 2025. The core strategy centers on a relationship-driven approach, supported by physical presence and digital tools.

The foundation of FFBW, Inc.'s customer interaction is its commitment to a personal, in-branch service model, which the CEO explicitly linked to a focus on relationship banking when announcing first quarter 2025 results. This model is delivered through First Federal Bank of Wisconsin's six branch locations servicing Waukesha and Milwaukee Counties in Wisconsin.

For commercial clients, FFBW, Inc. emphasizes dedicated support. The company noted in March 2025 that it had added to its commercial sales team in recent quarters and planned to further expand this team throughout 2025 to drive earnings and customer base growth. The CEO also mentioned a growing pipeline of new loans and relationship opportunities as of November 2025. This suggests a high-touch approach for commercial relationships, which is the definition of dedicated relationship managers.

Digital access is also part of the relationship mix, offering self-service options. The bank provides Online Services to its customers. While specific digital platform usage statistics aren't public, the existence of these services supports the overall customer access strategy.

The high-touch service model extends to key financial stakeholders through direct shareholder engagement. FFBW, Inc. actively manages its capital structure to enhance shareholder value, a clear form of relationship management with owners. The company announced a new share repurchase program on August 11, 2025, authorizing up to an additional $5,000,000 of common stock.

Here's a look at the shareholder engagement metrics around that time:

The focus on relationship banking and commercial team expansion aligns with the stated goal of developing a bank-wide sales culture to expedite profitable growth. The tangible book value per share also reflects the impact of these capital actions:

• Tangible Book Value per Share at September 30, 2025: $16.42
• Tangible Book Value per Share at March 31, 2025: $15.85

The overall customer relationship strategy involves these key components:

• Focus on relationship banking culture
• Expansion of the commercial sales team in 2025
• Servicing customers across Waukesha and Milwaukee Counties
• Use of Online Services for customer access
• Active stock repurchase program to engage shareholders

Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Channels

FFBW, Inc. First Federal Bank of Wisconsin uses a mix of physical presence and digital tools to reach its customers in Waukesha and Milwaukee Counties, Wisconsin.

The physical footprint is anchored by its branch network, which services customers directly.

• Network of six physical branch locations in Wisconsin.
• Branch distribution: two in Waukesha, WI, three in Milwaukee, WI, and one in Brookfield, WI.

Digital channels support the physical locations, aiming for a seamless experience.

• Digital Banking includes online and mobile services for individuals and businesses.

For business clients, FFBW, Inc. deploys a dedicated sales force.

• Direct commercial sales team for business clients; the team was noted to be expanded in 2025.

Consumer convenience is addressed through access to cash withdrawal points.

• ATM network access for consumer convenience.

Shareholder communication flows through the Investor Relations section, which provides timely updates on financial performance and corporate actions.

Here's a look at some key metrics related to the company's structure and shareholder activity as of late 2025 reporting periods:

The commercial focus is clear in the loan book composition reported for the first quarter of 2025.

• Commercial loans comprised 80.1 percent of the loan portfolio by percentage as of September 30, 2024.
• Residential real estate loans comprised 19.9 percent of the loan portfolio as of September 30, 2024.

The company is actively managing its share count through repurchases.

• Shares repurchased under the new program as of November 10, 2025: 48,000 shares.

FFBW, Inc. (FFBW) - Canvas Business Model: Customer Segments

You're looking at the core customer base for FFBW, Inc. as of late 2025. This isn't just about who walks into a branch; it's about the specific economic activity the bank supports in its defined market.

The primary geographic focus for First Federal Bank of Wisconsin is clearly defined. They service customers across Waukesha and Milwaukee Counties in Wisconsin. You see this commitment in their physical footprint, operating through six branch locations within these counties.

The customer base is segmented by the type of banking relationship they maintain, which directly maps to the composition of their net loan portfolio, which stood at a decrease of $9.7 million, or 4.3%, from the end of 2024, totaling an unstated amount as of September 30, 2025, against total assets of $276.3 million.

For individuals and consumers, the bank offers a full suite of consumer banking services, including deposit accounts like checking, savings, money market, and health savings accounts, plus certificates of deposit. The deposit base, as of March 31, 2025, was substantial, with Deposits and escrow totaling $219,041 thousand. Consumer lending supports this segment with products like home equity lines of credit, auto loans, boat loans, RV loans, and loans secured by certificates of deposit.

The business and real estate segments represent the core of the lending activity. The CEO noted a focus on strengthening the net interest margin through disciplined loan pricing, suggesting an emphasis on relationship-based customers over purely transactional ones.

Here is a breakdown of the lending segments that define the commercial and real estate customer base:

The bank provides a variety of financial services to both individual and corporate customers. The overall credit quality remains tight, with Nonaccrual loans at $37,000, or just 0.02% of total loans, as of September 30, 2025. The Allowance for Credit Losses was $2.7 million at that date, representing 1.25% of total loans.

Finally, the retail investor base is a distinct segment, holding FFBW, Inc. common stock traded on OTCQX under the symbol FFBW. As of September 30, 2025, the market capitalization stood at $60.5M based on 4,260,000 shares outstanding and a stock price of $14.12.

The key customer types FFBW, Inc. serves include:

• Individuals and consumers in Waukesha and Milwaukee Counties, WI.
• Small to mid-sized businesses (Commercial and Industrial).
• Residential real estate owners and investors.
• Multifamily and commercial real estate developers.
• Retail investors holding FFBW common stock (OTCQX: FFBW).

The tangible book value per share for this investor segment was $16.42 at September 30, 2025. Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Cost Structure

You're looking at the cost side of FFBW, Inc.'s operations as of late 2025. For a bank like FFBW, Inc., the cost structure is heavily weighted toward funding costs and personnel, which is what the latest numbers from their third-quarter filings confirm.

Interest expense on deposits and borrowings (decreasing due to funding mix)

Interest expense has been trending down, which is a positive sign for the net interest margin. For the three months ended September 30, 2025, total interest expense was reported at $849,000. This represented a significant decrease of $443,000, or 34.3%, when compared to the $1.3 million expense recorded for the same period in 2024. This reduction stems directly from management's strategy: lower rates paid on core deposits and a reduced reliance on more expensive funding sources like alternative funding and certificates of deposit. To be fair, this cost management helped drive the net interest margin up to 4.4% for Q3 2025, compared to 3.7% at September 30, 2024.

Employee salaries and benefits (personnel expenses)

Personnel costs are a major, recurring expense. The increase in overall noninterest expense seen through 2025 has been explicitly linked to higher employee expenses. For instance, the noninterest expense for the three months ended September 30, 2025, which totaled $2.4 million, saw its increase primarily driven by higher employee expenses and consulting fees. This aligns with the CEO's comment in early 2025 about adding to the commercial sales team to drive growth. You can see the trend of rising personnel costs contributing to overall noninterest expense increases in the prior quarter as well.

Branch occupancy and operational expenses

FFBW, Inc. operates through six branch locations in Waukesha and Milwaukee Counties, Wisconsin. While specific 2025 figures for occupancy alone aren't broken out for the latest quarters, prior reporting indicated that occupancy and equipment expenses were a contributing factor to the rise in noninterest expense seen at the end of 2024. These fixed costs are a necessary part of maintaining their physical footprint and local service model.

Data processing and technology costs (increased in Q1 2025)

Technology is an area where costs have clearly moved up. For the first quarter of 2025, the increase in noninterest expense was attributed to both employee costs and data processing expenses. This mirrors the trend from the end of 2024, where data processing expenses were also cited as a driver for higher noninterest expense. The bank is investing in its tech stack, which shows up here.

Regulatory and compliance costs

Specific dollar amounts for regulatory and compliance costs are bundled within the broader noninterest expense category, and the search results don't isolate them for 2025. However, the results do note that management must consider potential impacts from changes in regulatory fees and capital requirements. Furthermore, credit quality factors dictated the reserve calculation, resulting in a negative credit loss provision of $80,000 for Q3 2025.

Here's a quick look at the key expense movements for the three months ended September 30, 2025, compared to the prior year period, showing where the money is going:

The components driving the Noninterest Expense increase in early 2025 included personnel and technology spending:

• Employee expenses (increased in Q3 2025)
• Data processing expenses (increased in Q1 2025)
• Occupancy and equipment expenses (contributed to Q4 2024 increase)

Finance: draft 13-week cash view by Friday.

FFBW, Inc. (FFBW) - Canvas Business Model: Revenue Streams

You're looking at the core ways FFBW, Inc. brings in money as of late 2025. For a bank like FFBW, Inc., the revenue engine is all about the spread between what they earn on assets and what they pay on liabilities, plus fees for services.

The primary driver remains the Net Interest Income from loan portfolio. The focus here is on the Net Interest Margin (NIM), which management is actively working to strengthen through disciplined pricing. For the three months ended September 30, 2025, the NIM stood at 4.4%, up from 3.7% at September 30, 2024. This expansion suggests better pricing power or a favorable shift in the asset/liability mix, even as total interest-earning assets declined. The total interest and dividend income, which feeds into this, was $3.6 million for the three months ended September 30, 2025.

Here's a quick look at the income components we can quantify for that same quarter:

The Interest and dividend income from investment securities is bundled into the Total Interest and Dividend Income figure of $3.6 million. The decrease in this total income line item was attributed to a decline in interest-earning assets, which was partially offset by an increase in the yield on those assets.

For Noninterest income from service charges and fees, the total Noninterest Income was $246,000 for the period, down from $252,000 year-over-year. The decrease in noninterest income is due in part to a decline in service charges and other fees.

Regarding Income from commercial and consumer loan origination, while FFBW, Inc. is focused on a growing pipeline of new loans and relationship opportunities, a specific dollar amount for origination income is not explicitly itemized in the latest public release data for this period. The overall loan portfolio saw net loans decrease by $9.7 million, or 4.3%, from December 31, 2024, to September 30, 2025.

The final reported figure for the period is the bottom line:

• Net income of $600,000 for the three months ended September 30, 2025.

To be fair, the strength in the NIM to 4.4% shows the core lending business is generating more profit per dollar of assets than it was last year, even with a smaller asset base. Finance: draft 13-week cash view by Friday.