First Northern Bank (FNRN) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $5.5 million, up 18.8% year-over-year; nine-month net income was $14.2 million, down 3.3% year-over-year.

• Diluted EPS for Q3 2024 was $0.36, up 20% from Q3 2023; nine-month diluted EPS was $0.92, down 4.2% year-over-year.

• Total assets reached $1.93 billion as of September 30, 2024, up 3.1% from December 31, 2023.

• Deposit growth of $25 million during the quarter, with total deposits at $1.73 billion, up 2.3% since year-end but down 0.8% year-over-year.

Financial highlights

• Net interest income for the nine months was $47.8 million; Q3 net interest income was $16.5 million, up 3.9% from Q3 2023.

• Net interest margin for the nine months was 3.60%, down from 3.68% last year; Q3 margin was 3.65%, up from 3.51% in Q3 2023.

• Provision for credit losses was $200,000 for the nine months, with a $550,000 reversal in Q3.

• Non-interest income declined 26.4% year-over-year for the nine months, mainly due to a prior year bargain purchase gain; Q3 non-interest income fell 13.4%.

• Book value per share rose to $11.92, up $1.17 or 10.9% from June 30, 2024.

Outlook and guidance

• Loan demand and deposit balances for the remainder of 2024 will depend on economic and competitive conditions, Federal Reserve actions, and market competition.

• The company emphasizes non-interest-bearing deposits and maintains significant liquidity and borrowing capacity.

• Management remains focused on improving shareholder value and maintaining net interest margin.

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