First Northern Bank (FNRN) Q2 2025 earnings summary

Executive summary

• Net income for the six months ended June 30, 2025 was $9.1 million, up 5.0% year-over-year; Q2 net income was $5.5 million, up 23.6% from Q2 2024.

• Diluted EPS for the six months was $0.58, up 7.4% year-over-year; Q2 diluted EPS was $0.35, up 29.6%.

• Net interest margin for Q2 2025 was 3.85%, up 19 bps year-over-year, driving a 6.1% increase in net interest income.

• No provision for credit losses in Q2 2025 due to a $2.8 million reserve release, offset by increases in pooled and unfunded reserves.

• Shareholder value initiatives included repurchasing 215,883 shares for $2.2 million in the first half of 2025.

Financial highlights

• Total assets as of June 30, 2025 were $1.87 billion, down 1.0% from December 31, 2024.

• Net loans grew 1.3% year-over-year to $1.06 billion, driven by commercial loan growth.

• Total deposits were $1.66 billion, down 2.2% from year-end 2024.

• Net interest income for Q2 2025 was $16.95 million, up $0.98 million (6.1%) from Q2 2024.

• Non-interest income for Q2 2025 was $1.54 million, up 3.6% year-over-year.

Outlook and guidance

• Loan demand for the remainder of 2025 will depend on economic and competitive conditions.

• Deposit outlook is subject to Federal Reserve actions and heightened competition.

• The company does not anticipate paying a cash dividend on common stock in the foreseeable future.

• Management remains focused on improving shareholder value and disciplined deposit pricing.

• Forward-looking statements caution that actual results may differ due to economic, market, and regulatory factors.