First Berlin Bancorp, Inc. Reports Second Quarter 2026 Earnings of $0.84 Per Share

First Berlin Bancorp, Inc. (OTCQX: FTFI) (“FBB”), the holding company for Fortifi Bank (“Fortifi”), today reported net income of $2.2 million, or $0.84 per common share, for the second quarter ended June 30, 2026. This compares to net income of $2.8 million, or $1.08 per common share, for the first quarter ended March 31, 2026, and $2.6 million, or $0.93 per common share, for the second quarter ended June 30, 2025.

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

“Our second 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 as we continued to address a small number of previously identified credit relationships. During the quarter, we increased reserves based on currently available information while continuing to work through liquidation and recovery efforts. Our teams remain focused on prudent risk management and consistently serving our customers and communities.”

Quarter Ended June 30, 2026 – Financial Highlights

• Net interest income, including loan fee income, increased slightly to $7.6 million for the quarter ended June 30, 2026, compared to $7.4 million for the quarter ended March 31, 2026. This increase was primarily driven by commercial loan fee income from several large commercial loan originations.
• Noninterest income decreased to $828,616, compared to $851,880 in the prior quarter, primarily driven by lower mortgage volume.
• Noninterest expense increased to $4.8 million for the second quarter of 2026, compared to $4.4 million for the first quarter of 2026, primarily driven by expenses related to non-accrual commercial loans.
• Net loans decreased $27.6 million, or 4.7%, during the second quarter to $550.7 million as of June 30, 2026, compared to $578.3 million as of March 31, 2026, due to large commercial loan payoffs near the end of the quarter.
• Allowance for credit losses increased to 1.48% of total loans, compared to 1.26% in the prior quarter. The increase is due to increasing the loan loss provision for non-accrual loans and having an overall decrease in loan balances at quarter-end.
• Non-performing loans decreased by $200,000 to $13.1 million, however, as a percentage of total loans the number increased to 2.38% of total loans, compared to 2.27% in the prior quarter. The decrease was a combination of charged off loans, loan payoffs, and loans moving back to accrual status.
• Total deposits increased $24.6 million as of June 30, 2026, to $608.3 million compared to $583.7 million as of March 31, 2026. A majority of this increase came from promotion specials related to certificate of deposits throughout the second quarter and an increase in brokered deposits.
• Tangible book value per common share increased to $32.98, an increase of $1.01 per share from the prior quarter and a $4.18 per share increase year-over-year.  This represents a 14.5% year-over-year increase.

Balance Sheet and Asset Quality Review

Total loans (net) decreased $27.6 million to $550.7 million as of June 30, 2026, compared to March 31, 2026. Commercial real estate loans decreased $25 million to $308.2 million, while commercial and industrial loans decreased $3.4 million to $101.1 million.  Residential real estate loans increased by $700,000 to $122.0 million.

The loan portfolio was composed of:

• Commercial real estate and construction loans: $308.5 million (55.2%)
• Residential real estate loans: $122.1 million (21.8%)
• Commercial non-real estate loans: $101.1 million (18.1%)
• Consumer and other loans: $27.3 million (4.9%)

The allowance for credit losses increased to $8.3 million, or 1.48% of total loans, as of June 30, 2026, compared to $7.4 million, or 1.26% of total loans, as of March 31, 2026. Non-performing assets totaled $13.1 million, or 2.38% of total loans, compared to $13.3 million, or 2.27% of total loans, as of March 31, 2026. Approximately 88.2%, or $11.6 million, of non-performing assets were concentrated in three relationships, while 53.7%, or $7.0 million, were concentrated in a single relationship. During the quarter, the Company increased its allowance for credit losses based on updated evaluations of certain non-performing credits and estimated collateral recovery values. Because liquidation and recovery efforts remain ongoing for certain relationships, actual losses may differ from current estimates. Management will continue to monitor these credits and adjust the allowance for credit losses as additional information becomes available.

Total deposits increased $24.6 million to $608.3 million as of June 30, 2026.  The bank reported a $14.6 million increase in core deposits and a $10.0 million increase in brokered deposits quarter over quarter. Time deposits less than $250,000 increased by $8.4 million and demand deposits increased $8.2 million quarter over quarter. Non-interest-bearing demand deposits represented 22.3% of total deposits, compared to 21.8% in the prior quarter.

FHLB borrowings remained at $47.5 million quarter over quarter, while brokered CDs increased $10.0 million to $56.4 million during the second quarter.

Tangible book value per common share increased $1.01 during the quarter to $32.98, driven primarily by earnings and a decrease in unrealized losses on securities.  Unrealized losses on securities decreased from $6.7 million as of March 31, 2026 to $6.1 million as of June 30, 2026. Accumulated other comprehensive loss decreased to $3.9 million, compared to $4.4 million one quarter earlier.

Operations Review

Net interest income increased to $7.6 million, with a net interest margin of 4.11% for the quarter ended June 30, 2026, compared to $7.4 million and a net interest margin of 4.14% for the quarter ended March 31, 2026.  The bank reported net interest income of $7.1 million and a 4.19% margin in the second quarter of 2025.

Yields on earning assets decreased slightly to 6.15% as of June 30, 2026 compared to the first quarter of 2026 when they were 6.20%.  Funding costs decreased to 2.04% from 2.06% in the prior quarter due to increased non-interest-bearing demand deposits.

Noninterest income decreased $23,264 quarter over quarter, primarily from mortgage banking income being lower.

Noninterest expense increased to $400,000 quarter over quarter, primarily driven by expenses related to non-accrual commercial loans.

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.