FFBW, Inc. (FFBW): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, you're defintely watching regional banks for signs of disciplined growth and shareholder focus, so how does FFBW, Inc. (FFBW) - the holding company for First Federal Bank of Wisconsin - stack up in the current environment?

This community bank, operating with six branch locations in the Waukesha and Milwaukee Counties of Wisconsin, shows a clear commitment to capital rationalization, having announced a new share repurchase program of up to an additional $5,000,000 in August 2025, which significantly enhances earnings per share. For the third quarter ended September 30, 2025, the company reported a solid net interest margin of 4.4% and a tangible book value per share of $16.42, despite total assets decreasing to $276.3 million.

Are those numbers a signal of a well-managed niche player, or a small-cap facing headwinds from loan payoffs? Let's break down the history, mission, and how this focused business model generates its revenue.

FFBW, Inc. (FFBW) History

You're looking for the bedrock of FFBW, Inc. (FFBW), and it's a story of a century-old community bank evolving into a modern, publicly-traded financial holding company. The core institution, First Federal Bank of Wisconsin, has a deep history, but the current corporate structure is a relatively recent, strategic move to unlock capital and drive growth.

Given Company's Founding Timeline

Year established

The operating subsidiary, First Federal Bank of Wisconsin, was established in 1922.

Original location

The bank's roots are in Waukesha County, Wisconsin, and the current corporate headquarters for FFBW, Inc. is located in Brookfield, Wisconsin.

Founding team members

While the original 1922 founders are not widely documented in public filings, the current leadership steering the company's modern trajectory includes President and Chief Executive Officer Edward H. Schaefer, who has held the role since July 2016.

Initial capital/funding

The initial capital from the 1922 founding isn't publicly detailed, but the first major public funding event was the 2017 minority stock issuance. This offering included a contribution to a charitable foundation of $250,000 in cash and 25,000 shares of common stock, valued at $250,000 at the $10.00 per share offering price. The bank's total assets at that time were $236.1 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The single most transformative decision was the move away from the mutual holding company (MHC) structure to a fully public stock holding company.

This conversion, completed in January 2020, was crucial because it allowed the company to raise capital more freely and provided the necessary liquidity for strategic initiatives, shifting the focus to maximizing shareholder return. It was a defintely necessary step for growth.

More recently, the company's capital management strategy has been a major differentiator, especially in 2025. Here's the quick math: share repurchases have reduced the outstanding share count by 45% since 2020.

This aggressive capital rationalization is directly aimed at enhancing earnings per share (EPS), even while net income for the three months ended September 30, 2025, was $600,000, a 15.8% decrease from the prior year's quarter. The tangible book value per share still rose to $16.42 by September 30, 2025, showing the impact of fewer shares outstanding.

• Conversion: Freed up capital for expansion and acquisitions, like the previous one of Mitchell Bank.
• Repurchases: Reduced dilutive weighted average shares outstanding to 3,850,000 by Q3 2025, boosting per-share metrics.
• Margin Focus: Net interest margin (NIM) improved to 4.4% in Q3 2025, up from 3.7% in Q3 2024, reflecting disciplined loan and deposit pricing.

To be fair, sustained EPS growth requires profit expansion, not just share reduction, so the focus on strengthening NIM is a clear action for the near-term. You can see how this strategy aligns with their core purpose by reviewing their Mission Statement, Vision, & Core Values of FFBW, Inc. (FFBW).

FFBW, Inc. (FFBW) Ownership Structure

FFBW, Inc. operates under a mutual holding company (MHC) structure, which means a majority of the shares are held by FFBW, MHC, a non-stock entity that exists for the benefit of depositors. This setup ensures that the company's strategic direction is controlled by the mutual entity, not solely by public stockholders, which is a key factor in its governance.

Given Company's Current Status

FFBW, Inc. is a publicly traded company, but it is not listed on a major exchange like the NYSE or Nasdaq. Instead, it trades on the OTCQX Best Market, which is part of the over-the-counter (OTC) markets, under the ticker symbol FFBW. This listing status often means lower trading volume and less institutional coverage, which is defintely something to keep in mind when analyzing its stock. The company acts as the holding company for its wholly-owned subsidiary, First Federal Bank of Wisconsin, a federally chartered stock savings bank.

As of September 30, 2025, FFBW, Inc. reported total assets of $276.3 million, reflecting a 4.0% decrease from the end of the prior fiscal year. For the three months ended September 30, 2025, the company's net income was $600,000, translating to $0.16 per diluted share. If you want a deeper dive into how this translates to long-term value, you should review the Mission Statement, Vision, & Core Values of FFBW, Inc. (FFBW).

Given Company's Ownership Breakdown

The company's structure, where FFBW, MHC holds a majority stake, is typical for a thrift conversion. This arrangement limits the voting power of public shareholders, keeping control centralized. Here's the quick math on how the ownership breaks down, based on the initial offering structure and current insider filings:

Given Company's Leadership

The leadership team is seasoned, blending long-term industry experience with recent financial expertise. Their focus is clearly on capital rationalization through share repurchases and strengthening the net interest margin, as noted by the CEO.

The key executives steering FFBW, Inc. as of November 2025 are:

• Edward H. Schaefer: Chief Executive Officer (CEO) and Director. He has over 30 years of banking experience.
• Steven L. Wierschem: President, Chief Financial Officer (CFO), and Director. He was promoted to President in January 2025 and is the primary contact for investor questions.
• DeVona Cottrell: Corporate Secretary and Vice Chairperson.
• Leann Eddingsaas: Principal Accounting Officer and Controller.

The board is led by Independent Chairperson Christine Specht, ensuring a degree of separation between management and oversight. The average tenure for the management team is six years, showing a stable, experienced hand at the wheel.

FFBW, Inc. (FFBW) Mission and Values

FFBW, Inc., through its subsidiary First Federal Bank of Wisconsin, centers its purpose on being a true community bank, prioritizing long-term relationships and local support over purely transactional profits. This cultural DNA is built on integrity, personalized service, and a tangible commitment to the financial health of the Waukesha and Milwaukee County communities it serves.

Given Company's Core Purpose

As a seasoned analyst, I look past the glossy annual reports to see what a company actually stands for. With FFBW, Inc., the core purpose is clear: it's about being a trusted financial partner, not just a place to hold money. They aim to build lasting relationships through financial expertise and honest dealings, a model that keeps them deeply rooted in their local market.

Official mission statement

While a single, rigid mission statement isn't always published, the operating philosophy of First Federal Bank of Wisconsin is to provide individualized service and financial expertise to help customers achieve their goals. This is a relationship-banking model, not a volume-based one. The key components of this commitment include:

• Conducting business with honesty and integrity.
• Building trust through individualized service and financial expertise.
• Supporting local communities and neighbors to help them thrive.

This focus is a critical component of their stability, as evidenced by a strong allowance for credit losses of $2.7 million, or 1.25% of total loans, as of September 30, 2025. That's a solid buffer, defintely reflecting a prudent, relationship-based lending approach.

Vision statement

The company's vision is to be the premier community bank in its Wisconsin market, a goal that extends beyond mere market share to include social impact. The vision is to make banking convenient and easy, but also to be a foundational pillar for local progress.

• Be the expert in products and services for customer financial goals.
• Play a vital role in building and enhancing the well-being of the communities.
• Support specific community needs like education and affordable housing.

The tangible book value per share, at $16.42 as of September 30, 2025, shows they are growing book value for shareholders while maintaining this community focus. You can see more on the ownership structure and who's buying in Exploring FFBW, Inc. (FFBW) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

The company's core identity is captured in its operating mantra, which is more than a simple marketing slogan; it's the culture.

• The Community Bank Difference.

This difference is quantified by actions like giving over $100,000 to community causes in 2024 alone, focusing on building strong families and supporting the less fortunate. That's a clear example of their commitment to their stated values.

FFBW, Inc. (FFBW) How It Works

FFBW, Inc. operates as the holding company for First Federal Bank of Wisconsin, a community-focused savings bank that primarily generates revenue by taking in local deposits and lending those funds back out to individuals and businesses. The company makes money from the net interest margin (NIM)-the difference between interest earned on its loan and investment portfolio and the interest paid on deposits and borrowings.

FFBW, Inc.'s Product/Service Portfolio

FFBW, Inc.'s Operational Framework

The operational framework centers on a classic community banking model, but with a sharp focus on capital efficiency and disciplined pricing to manage interest rate risk. The bank operates through six branch locations in the Waukesha and Milwaukee Counties of Wisconsin, plus it offers digital banking services for convenience.

Here's the quick math on recent performance: for the three months ended September 30, 2025, the company reported a net interest margin (NIM) of 4.4%, which is a strong indicator of effective asset-liability management. Nonaccrual loans-loans not currently generating interest-were exceptionally low at only $37,000, or 0.02% of total loans, as of September 30, 2025, which defintely shows tight credit discipline.

• Value Creation Process: Gather core deposits (low-cost funding) $\rightarrow$ Invest in higher-yield loans (CRE, residential) $\rightarrow$ Generate Net Interest Income.
• Capital Management: Aggressively repurchasing common stock; the company has reduced outstanding shares by 45% since 2020 to enhance earnings per share (EPS).
• Expense Control: Noninterest expense for the quarter ended September 30, 2025, was $2.4 million, up 10.8% year-over-year, primarily due to increases in employee expenses and consulting fees as the bank invests in growth.

You can learn more about the capital strategy and ownership structure in Exploring FFBW, Inc. (FFBW) Investor Profile: Who's Buying and Why?

FFBW, Inc.'s Strategic Advantages

FFBW's market success is driven by its hyper-local focus and a capital strategy that directly benefits shareholders, giving it an edge over larger, less nimble regional banks.

• Pricing Discipline: The bank's emphasis on disciplined loan and deposit pricing has resulted in a lower cost of funds and improved net interest margin, which is a key profitability driver in the current rate environment.
• Exceptional Credit Quality: Nonaccrual loans are near zero, demonstrating superior underwriting and risk management compared to many peers.
• Capital Rationalization: The ongoing, significant share repurchase program-including a new $5.0 million program announced in August 2025-boosts tangible book value per share, which was $16.42 as of September 30, 2025. This is a direct way to maximize shareholder returns.
• Low Volatility: The stock has a low beta of 0.17, suggesting its share price is significantly less volatile than the S&P 500, appealing to risk-averse investors.

FFBW, Inc. (FFBW) How It Makes Money

FFBW, Inc. (FFBW), the holding company for First Federal Bank of Wisconsin, primarily makes money through the classic banking model: borrowing at a lower rate (deposits) and lending at a higher rate (loans), which generates net interest income. A smaller but still important part of its revenue comes from noninterest activities like service charges and fees on customer accounts and services.

FFBW, Inc.'s Revenue Breakdown

For the three months ended September 30, 2025, FFBW's revenue streams show a heavy reliance on its core lending business, a typical structure for a community-focused savings bank. Total revenue for the quarter was approximately $3.846 million, with the vast majority coming from interest income.

Business Economics

The core economic engine of FFBW is its net interest margin (NIM), which is the difference between the interest income earned on loans and investments and the interest paid on deposits and borrowings. You can see the management's focus here: they are actively working to improve this spread, even as total interest income has declined.

• Net Interest Margin (NIM) Expansion: The NIM for the third quarter of 2025 was a strong 4.4%, up significantly from 3.7% in the same period last year. This improvement is defintely a result of disciplined loan and deposit pricing, meaning they are paying less for deposits and/or earning more on new loans.
• Cost of Funds Reduction: Total interest expense decreased by 34.3%, or $443,000, to $849,000 for the quarter ended September 30, 2025. This is a huge win, achieved by reducing reliance on expensive funding sources like certificates of deposit (CDs) and alternative borrowings, and lowering rates paid on core deposits.
• Noninterest Income Pressure: Noninterest income, which includes service charges and fees, is a small piece of the pie and is under pressure, decreasing by $6,000 to $246,000 in Q3 2025. This suggests fee-based services aren't a current growth driver; they are focusing on the spread.

Here's the quick math on the NIM improvement: Interest income fell 8.7%, but interest expense fell 34.3%. The gap widened in their favor, so the margin expanded. You can read more about the drivers of this performance in Exploring FFBW, Inc. (FFBW) Investor Profile: Who's Buying and Why?

FFBW, Inc.'s Financial Performance

The company's financial health as of September 30, 2025, shows a strong capital position and a focus on shareholder value through capital return, even as net income saw a quarterly dip. Total assets stood at $276.3 million at the end of Q3 2025.

• Net Income and EPS: Net income for Q3 2025 was $600,000, a 15.8% decrease from the $713,000 reported in Q3 2024. However, diluted earnings per share (EPS) remained flat at $0.16.
• Share Repurchase Impact: The stable EPS despite lower net income is a direct result of the company's aggressive share repurchase program. The diluted weighted average shares outstanding dropped significantly to 3,850,000 in Q3 2025 from 4,452,000 a year prior. This is a clear action to enhance shareholder value.
• Tangible Book Value: The tangible book value per share is a key metric for banks, and FFBW's was $16.42 at September 30, 2025. The stock repurchases are specifically designed to push this number higher.
• Asset Quality: Nonaccrual loans-loans where the bank is not recognizing interest income due to doubt about repayment-were very low at only $37,000, or 0.02% of total loans, at September 30, 2025. That's a sign of excellent credit discipline.

FFBW, Inc. (FFBW) Market Position & Future Outlook

FFBW, Inc. maintains a niche but highly stable position within the competitive Milwaukee-Waukesha Metropolitan Statistical Area (MSA) banking market, primarily by focusing on commercial lending and disciplined capital management. The company's future outlook hinges on its strategy to expand net interest margin (NIM) and enhance shareholder value through aggressive share repurchases, a clear path to sustained earnings per share (EPS) growth.

Competitive Landscape

You need to understand that FFBW, Inc. operates in a market dominated by massive regional and national institutions, which means its strategy must be about specialization, not scale. The latest FDIC data shows the company is a very small player, ranking 24th out of 39 institutions in its assessment area (AA).

This is a highly fragmented market, so FFBW's tiny deposit share is not a surprise, but it does highlight the challenge of customer acquisition. The one-liner here is simple: FFBW is a small fish in a very big pond.

Opportunities & Challenges

We see clear, actionable opportunities tied to FFBW's core strengths, but you must be aware of the near-term operational risks associated with their strategic shift.

The company's focus on disciplined loan and deposit pricing is defintely the right move to push that NIM higher, but it means they might lose some customers in the process. What this estimate hides is the execution risk of the new 'relationship banking' sales program.

Industry Position

FFBW, Inc. is positioned as a highly capitalized, low-risk, commercial-focused community bank in the greater Milwaukee area. Its holding company structure and trading on the OTCQX under the symbol FFBW give it a public profile, but its operations are purely local.

• Primary Focus: Commercial lending, which comprised 80.1% of the loan portfolio as of September 30, 2024.
• Capital Strength: The bank's leverage ratio was a robust 22.9% at December 31, 2024, far exceeding regulatory minimums.
• Shareholder Return: Aggressive capital return is a core part of the strategy, with share repurchases reducing the outstanding share count by 45% since 2020.
• Valuation Metric: The tangible book value per share stood at $16.42 as of September 30, 2025, which is a key metric for thrift conversions like FFBW.

The shift away from the residential mortgage market, noted in 2025, underscores a commitment to its higher-margin commercial loan strategy. For a deeper dive into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of FFBW, Inc. (FFBW). The bottom line is they are a well-run, small-scale bank focused on maximizing book value per share through tight credit control and capital deployment.