First Northern Bank (FNRN) Q2 2026 earnings summary

Executive summary

• Net income for the six months ended June 30, 2026 was $10.6 million, up 16.4% year-over-year; Q2 net income was $4.7 million, down 13.5% from Q2 2025.

• Diluted EPS for the six months was $0.64, up 16.4% year-over-year; Q2 diluted EPS was $0.29, down 12.1% from Q2 2025.

• Total assets reached $1.93 billion, up 2.9% year-over-year and 0.8% from December 31, 2025.

• Commercial loan growth drove net loan increases, offsetting declines in other loan categories.

• Uplisting to Nasdaq and inclusion in the Russell 3000 Index improved stock liquidity and visibility.

Financial highlights

• Net interest income for the six months was $34.2 million, up 4.0% year-over-year; Q2 net interest income was $17.0 million, up 0.3% year-over-year.

• Non-interest income rose 14.7% year-over-year to $1.8 million, driven by investment and brokerage services.

• Non-interest expense increased 9.7% year-over-year due to systems upgrade and staffing.

• Net interest margin for the six months was 3.79%, up from 3.74% year-over-year; Q2 margin was 3.75%, down from 3.85% in Q2 2025.

• Book value per share increased to $13.24 at June 30, 2026.

Outlook and guidance

• Elevated operating expenses expected to continue through Q4 2026 due to ongoing systems upgrade, with anticipated efficiency gains and long-term benefits starting in 2027.

• Loan demand and deposit balances for the remainder of 2026 will depend on economic and competitive conditions, with a focus on non-interest-bearing deposits.

• The company does not intend to elect the community bank leverage ratio framework and expects to maintain capital ratios above regulatory requirements.

• Management remains focused on disciplined balance sheet management and shareholder value creation.