First Berlin Bancorp, Inc. Reports Fourth Quarter 2025 Earnings of $0.96 Per Share

First Berlin Bancorp, Inc. (OTCQX: FTFI) (“FBB”), the holding company for Fortifi Bank (“Fortifi”), today reported net income of $2.6 million, or $0.96 per common share, for the fourth quarter ended December 31, 2025. This compares to net income of $2.9 million, or $1.06 per common share, for the third quarter ended September 30, 2025, and $2.3 million, or $0.84 per common share, for the fourth quarter ended December 31, 2024.

FBB’s fourth quarter 2025 operating results reflected improved net interest margin driven by higher asset yields, increased noninterest income primarily from mortgage banking income and interchange revenue, and stable noninterest expense.

“Our fourth quarter results reflect disciplined execution and continued balance sheet strength,” said Greg Lundberg, President and Chief Executive Officer of Fortifi Bank. “We delivered solid earnings growth driven by higher asset yields, stable expenses, and strong loan and deposit growth. Our teams remained focused on serving our customers while maintaining prudent credit standards and capital levels, which contributed to improved tangible book value and consistent returns for shareholders.”

Quarter Ended December 31, 2025 – Financial Highlights

• Net interest income increased to $7.5 million for the quarter ended December 31, 2025, compared to $7.3 million for the quarter ended September 30, 2025, due largely to growth in earning assets.
• Noninterest income increased to $877,199, compared to $850,207 in the prior quarter, primarily driven by mortgage banking income and interchange revenue.
• Noninterest expense increased modestly to $4.4 million, compared to $4.2 million for the third quarter of 2025.
• Net loans increased $12.9 million, or 2.4%, during the quarter to $559.4 million compared to September 30, 2025.
• Allowance for credit losses decreased to 1.23% of total loans, compared to 1.26% in the prior quarter.
• Non-performing loans decreased by $907,000 to $6.3 million, or 1.11% of total loans, compared to 1.31% in the prior quarter. The decrease was primarily related to continued lot sales in a residential development.  The largest non-performing loan is a $3.7 million non-owner occupied commercial office loan that matured during the third quarter and lacked sufficient lease income for renewal. The loan is considered adequately collateralized based on a recent appraisal and there currently is no specific reserve for this loan.
• Total deposits increased $44.8 million in the fourth quarter after growing $26.0 million in third quarter.
• Tangible book value per common share increased to $31.09, an increase of $4.82 per share from the prior year, representing a 18.3% year-over-year increase.

Balance Sheet and Asset Quality Review

Total loans increased $12.9 million to $559.4 million at December 31, 2025, compared to September 30, 2025. Commercial real estate loans decreased $2.1 million to $325.8 million, while commercial and industrial loans increased $13.1 million to $96.2 million.  Residential real estate loans increased by $4.5 million to $124.7 million.

The loan portfolio was composed of:

• Commercial real estate and construction loans: $325.8 million (57.6%)
• Residential real estate loans: $124.7 million (22.0%)
• Commercial non-real estate loans: $96.2 million (16.9%)
• Consumer and other loans: $19.3 million (3.5%)

The allowance for credit losses remained at $6.9 million or 1.23% of total loans at December 31, 2025. Non-performing assets totaled $6.3 million, or 1.11% of total loans, compared to $7.2 million or 1.31% of total loans at September 30, 2025. The bank did take a charge-off of $275,000 during the fourth quarter related to one agricultural loan.  The bank had a specific reserve in the same amount on that relationship.  Approximately 83.4% of non-performing assets were concentrated in two relationships. As of quarter end, no collateral shortfall had been identified for the two largest non-performing loans.

Total deposits increased $44.8 million to $605.2 million.  The bank reported a $27.4 million increase in core deposits and a $4.0 million decrease in brokered deposits.  Large time deposits increased by $2.7 million. The bank does have municipal deposit accounts and $18.5 million of the increase is attributed to short-term seasonal deposits due to tax collections.  Non-interest-bearing demand deposits represented 21.0% of total deposits, compared to 22.0% in the prior quarter.

FHLB borrowings remained $47.5 million quarter over quarter, while brokered CDs decreased $4.0 million to $44.1 million during the fourth quarter.

Tangible book value per common share increased $1.00 during the quarter to $31.09, driven primarily by earnings and improved fair market values of available-for-sale investments. Accumulated other comprehensive loss declined to $3.7 million, compared to $4.4 million one quarter earlier.  During the fourth 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 increased to $7.5 million, with a net interest margin of 4.09% for the quarter ended December 31, 2025, compared to $6.6 million and a 4.03% margin in the fourth quarter of 2024. The increase was driven by higher loan yields combined with only a slight increase in funding costs year over year.

Earning asset yields increased to 6.20% during the quarter ended December 31, 2025, compared to 6.12% in same quarter the prior year. Funding costs increased to 2.11% from 2.09% year over year due to higher time deposit balances and higher brokered deposit balances.

Noninterest income increased $26,992 quarter over quarter, primarily from mortgage banking income and interchange fees.

Noninterest expense increased by $267,911 quarter over quarter.  The increase was primarily driven by higher salary expense of $107,213 and $69,492 in higher employee benefit expense from the prior 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.