First Northern Bank (FNRN) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $3.7 million, or $0.23 per diluted share, down 14.2% year-over-year from $4.3 million, or $0.26 per diluted share.

• Total assets were $1.88 billion, down 0.9% from December 2024 and 0.6% year-over-year; net loans declined 0.6% to $1.04 billion, mainly due to reductions in commercial real estate and agricultural loans.

• Deposits fell 2.0% year-over-year and 1.5% sequentially to $1.67 billion.

• Stockholders' equity increased 6.5% sequentially to $187.8 million, with book value per share rising 6.8% to $11.81.

• A 5% stock dividend was declared in January 2025 and paid in March 2025.

Financial highlights

• Net interest income for Q1 2025 was $15.94 million, up 3.8% year-over-year; net interest margin improved to 3.64% from 3.49%.

• Provision for credit losses was $0.85 million in Q1 2025, compared to a reversal of $0.3 million in Q1 2024.

• Non-interest income declined 3.6% year-over-year to $1.45 million; non-interest expenses increased 3.2% to $11.59 million.

• Efficiency ratio was 66.62%, nearly flat year-over-year.

Outlook and guidance

• Loan demand and deposit outlook for 2025 are subject to economic and competitive conditions, Federal Reserve policy, and heightened competition.

• Management expects continued focus on non-interest-bearing deposits, prudent liquidity management, and disciplined pricing to support low cost of funds and shareholder value.