First Berlin Bancorp, Inc. Reports First Quarter 2026 Earnings of $1.08 Per Share

First Berlin Bancorp, Inc. (OTCQX: FTFI) (“FBB”), the holding company for Fortifi Bank (“Fortifi”), today reported net income of $2.8 million, or $1.08 per common share, for the first quarter ended March 31, 2026. This compares to net income of $2.9 million, or $1.08 per common share, for the fourth quarter ended December 31, 2025, and $2.6 million, or $0.95 per common share, for the first quarter ended March 31, 2025.

FBB’s first quarter 2026 operating results reflected strong net interest margin supported by high asset yields, steady noninterest income primarily from mortgage banking income and interchange revenue, and stable noninterest expense.

“Our first quarter results reflect continued disciplined execution and solid profitability,” said Greg Lundberg, President and Chief Executive Officer of Fortifi Bank. “We delivered strong earnings driven by favorable asset yields, stable expenses, and continued loan growth, while tangible book value increased meaningfully during the quarter. Asset quality remained manageable, with identified credit issues appropriately reserved, and our teams remained focused on consistently serving our customers and communities.”

Quarter Ended March 31, 2026 – Financial Highlights

• Net interest income decreased slightly to $7.4 million for the quarter ended March 31, 2026, compared to $7.5 million for the quarter ended December 31, 2025, due to a slight decrease in net interest margin quarter over quarter.
• Noninterest income decreased to $851,880, compared to $877,199 in the prior quarter, primarily driven by lower mortgage volume.
• Noninterest expense held steady at $4.4 million for the first quarter 2026, compared to $4.4 million for the fourth quarter of 2025.
• Net loans increased $18.9 million, or 3.4%, during the quarter to $578.3 million compared to December 31, 2025.
• Allowance for credit losses increased to 1.26% of total loans, compared to 1.23% in the prior quarter.
• Non-performing loans increased by $7.0 million to $13.3 million, or 2.27% of total loans, compared to 1.11% in the prior quarter. The increase was primarily related to one specific commercial and industrial relationship.  The bank has completed an impairment analysis on this relationship and is currently adequately reserved.  This represents the bank’s largest non-performing loan relationship.
• Total deposits decreased $21.6 million in the first quarter after growing $44.8 million in fourth quarter of 2025.  Total deposits of $583.6 million as of March 31, 2026 did represent a $54.1 million increase year over year.
• Tangible book value per common share increased to $31.97, an increase of $0.88 per share from the prior quarter and a $4.42 per share increase year-over-year.  This represents a 16.0% year-over-year increase.

Balance Sheet and Asset Quality Review

Total loans (net) increased $18.9 million to $578.3 million at March 31, 2026, compared to December 31, 2025. Commercial real estate loans increased $7.7 million to $333.5 million, while commercial and industrial loans increased $8.3 million to $104.5 million.  Residential real estate loans decreased by $3.4 million to $121.3 million.

The loan portfolio was composed of:

• Commercial real estate and construction loans: $333.5 million (56.9%)
• Residential real estate loans: $121.3 million (20.7%)
• Commercial non-real estate loans: $104.5 million (17.8%)
• Consumer and other loans: $26.5 million (4.5%)

The allowance for credit losses increased to $7.4 million or 1.26% of total loans at March 31, 2026. The allowance for credit losses was $6.9 million or 1.23% of total loans as of December 31, 2025.  Non-performing assets totaled $13.3 million, or 2.27% of total loans, compared to $6.3 million or 1.11% of total loans at December 31, 2025.  Approximately 89.5% or $11.9 million of non-performing assets were concentrated in three relationships. Only one of the three relationships was not adequately collateralized and for that relationship the bank has identified a specific reserve.

Total deposits decreased $21.6 million to $583.6 million.  The bank reported a $22.6 million decrease in core deposits and a $2.3 million increase in brokered deposits.  Large time deposits decreased by $1.3 million. The bank does have municipal deposit accounts and approximately $20.4 million of the total decrease is attributed to short-term seasonal deposits due to tax collections.  Non-interest-bearing demand deposits represented 21.7% of total deposits, compared to 21.0% in the prior quarter.

FHLB borrowings remained at $47.5 million quarter over quarter, while brokered CDs increased $2.3 million to $46.4 million during the first quarter.

Tangible book value per common share increased $0.88 during the quarter to $31.97, driven primarily by earnings.  The fair market values of available-for-sale investments decreased this quarter. Accumulated other comprehensive loss increased to $4.4 million, compared to $3.7 million one quarter earlier.  During the first quarter the bank re-purchased 75,000 shares of stock from a shareholder. These shares are now held in Treasury Stock.

Operations Review

Net interest income decreased to $7.4 million, with a net interest margin of 4.14% for the quarter ended March 31, 2026, compared to $7.5 million and a net interest margin of 4.09% for the fourth quarter ended December 31, 2025.  The bank reported net interest income of $6.9 million and a 4.23% margin in the first quarter of 2025.

Yields on earning assets decreased slightly to 6.20% as of March 31, 2026 compared to the first quarter of 2025 when they were 6.27%.  Funding costs increased to 2.06% from 2.04% year over year due to higher time deposit balances.

Noninterest income decreased $25,319 quarter over quarter, primarily from mortgage banking income being lower.

Noninterest expense held steady at $4.4 million quarter over quarter.

About First Berlin Bancorp, Inc.

First Berlin Bancorp, Inc. is the parent company of Fortifi Bank, a community bank headquartered in Berlin, Wisconsin. Fortifi operates nine full-service banking locations across Brown, Winnebago, Fond du Lac, Green Lake, Marquette, and Dane counties in Wisconsin. First Berlin Bancorp, Inc. trades on the OTCQX Market under the symbol FTFI. Additional information is available at www.fortifibank.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such factors include economic conditions, interest rate changes, government policy, execution of strategic initiatives, potential merger and acquisition activity, and global economic instability. Forward-looking statements speak only as of the date made, and FBB undertakes no obligation to update them.