First Northern Community Bancorp Reports First Quarter 2025 Net Income of $3.7 Million

DIXON, Calif.--(BUSINESS WIRE)-- First Northern Community Bancorp (the “Company”, OTCQX: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $3.7 million, or $0.23 per diluted share, for the three months ended March 31, 2025, down 14.2% compared to net income of $4.3 million, or $0.26 per diluted share, for the three months ended March 31, 2024.

Total assets as of March 31, 2025, were $1.88 billion, a decrease of $11.4 million, or 0.6%, compared to March 31, 2024. Total net loans (including loans held-for-sale) as of March 31, 2025, were $1.04 billion, a decrease of $6.1 million, or 0.6%, compared to total net loans (including loans held-for-sale) of $1.05 billion as of March 31, 2024. The decrease in net loans was primarily driven by net reductions in commercial real estate and agricultural loans, which were partially offset by growth in commercial loans. Total deposits as of March 31, 2025, were $1.67 billion, a decrease of $34.1 million, or 2.0%, compared to March 31, 2024.

The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of March 31, 2025.

Commenting on the Company’s first quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “First quarter results reported continued momentum in improving our net margin, which increased from 3.49% for the three months ended March 31, 2024, to 3.64% for the three months ended March 31, 2025, an improvement of 15 basis points, or 4.3%. This improvement was partially due to increased yields on our securities portfolio and disciplined pricing on our interest-bearing deposits, which, when combined with our high levels of non-interest-bearing deposits, continued to keep our cost of funds low. Our improvement in net margin was offset by an increase in loan loss provision due to a specific reserve of $2.8 million, which was recorded during the first quarter. This was partially offset by a decrease in total reserve required due to a decrease in calculated loss rates as of March 31, 2025. As a result, the Company recorded provision expense of $850,000 for the quarter compared to a release of provision of $300,000 for the same period last year.”

Commenting further, President & CEO Smith stated: “We remain committed to improving shareholder value, with stockholders’ equity improving from $176.3 million on December 31, 2024, to $187.8 million on March 31, 2025 - an increase of $11.5 million, or 6.5% primarily due to net income of $3.7 million and a decrease in accumulated other comprehensive loss of $8.9 million. This growth in stockholders’ equity contributed to an increase in book value per share, which rose from $11.06 at the end of 2024 to $11.81 at the end of the first quarter of 2025 - an increase of $0.75, or 6.8%.”

On March 25, 2025, the Company paid a 5% stock dividend to all shareholders of record as of February 28, 2025. Per share data in this press release has been adjusted for this stock dividend.

FIRST QUARTER HIGHLIGHTS (UNAUDITED)

Performance and operating highlights for the Company for the periods noted below included the following:

	Three months ended
(in thousands, except per share and share data)	March 31, 2025				December 31, 2024				March 31, 2024
Return on average assets (“ROAA”) (annualized)		0.79	%			1.20	%			0.92	%
Return on average equity (“ROAE”) (annualized)		8.23	%			12.96	%			10.69	%
Pre-tax income	$	4,956			$	8,135			$	5,942
Net income	$	3,671			$	5,846			$	4,276
Net interest margin (annualized)		3.64	%			3.60	%			3.49	%
Cost of funds (annualized)		0.86	%			0.86	%			0.76	%
Efficiency ratio		66.62	%			57.34	%			66.55	%
Basic earnings per common share	$	0.23			$	0.37			$	0.27
Diluted earnings per common share	$	0.23			$	0.37			$	0.26
Weighted average basic common shares outstanding		15,650,176				15,727,458				15,976,904
Weighted average diluted common shares outstanding		15,879,822				15,975,949				15,976,904
Shares outstanding at end of period		15,897,929				15,943,051				16,309,307

Summary Results (Unaudited)

The following is a summary of the components of the Company’s operating results for the periods indicated:

	Three months ended
(in thousands, except per share data)	March 31, 2025				December 31, 2024					$ Change				% Change
Selected operating data:
Net interest income	$	15,943			$	16,524				$	(581	)			(3.52	)%
Provision for (reversal of) credit losses		850				(450	)				1,300				(288.89	)%
Non-interest income		1,453				1,490					(37	)			(2.48	)%
Non-interest expense		11,590				10,329					1,261				12.21	%
Pre-tax income		4,956				8,135					(3,179	)			(39.08	)%
Provision for income taxes		1,285				2,289					(1,004	)			(43.86	)%
Net income	$	3,671			$	5,846				$	(2,175	)			(37.20	)%

	Three months ended
(in thousands, except per share data)	March 31, 2025				March 31, 2024					$ Change				% Change
Selected operating data:
Net interest income	$	15,943			$	15,362				$	581				3.78	%
Provision for (reversal of) credit losses		850				(300	)				1,150				(383.33	)%
Non-interest income		1,453				1,507					(54	)			(3.58	)%
Non-interest expense		11,590				11,227					363				3.23	%
Pre-tax income		4,956				5,942					(986	)			(16.59	)%
Provision for income taxes		1,285				1,666					(381	)			(22.87	)%
Net income	$	3,671			$	4,276				$	(605	)			(14.15	)%

Balance Sheet Summary (Unaudited)

(in thousands)	March 31, 2025			December 31, 2024			$ Change			% Change
Selected financial condition data:
Total assets	$	1,875,700		$	1,891,722		$	(16,022)			(0.85)%
Cash and cash equivalents		111,717			119,448			(7,731)			(6.47)%
Total loans, net (including loans held-for-sale)		1,041,210			1,046,852			(5,642)			(0.54)%
Total investments		637,168			633,853			3,315			0.52%
Total liabilities		1,687,895			1,715,390			(27,495)			(1.60)%
Total deposits		1,674,807			1,700,089			(25,282)			(1.49)%
Total shareholders’ equity		187,805			176,332			11,473			6.51%

Net Interest Income and Net Interest Margin (Unaudited)

The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

		Three months ended
		March 31, 2025									December 31, 2024									March 31, 2024
								Yields									Yields									Yields
					Interest			Earned/						Interest			Earned/						Interest			Earned/
		Average			Income/			Rates			Average			Income/			Rates			Average			Income/			Rates
		Balance			Expense			Paid			Balance			Expense			Paid			Balance			Expense			Paid
Assets
Interest-earning assets:
Loans		$	1,042,559		$	13,602		5.29	%		$	1,044,552		$	13,769		5.23	%		$	1,047,358		$	13,475		5.16	%
Certificates of deposit			15,868			161		4.11	%			17,320			182		4.17	%			18,669			183		3.93	%
Interest-bearing due from Banks			70,468			727		4.18	%			104,261			1,400		5.33	%			123,224			1,532		4.99	%
Investment securities, Taxable			587,332			4,348		3.00	%			598,665			4,276		2.83	%			525,261			2,845		2.17	%
Investment securities, non-taxable			50,403			393		3.16	%			51,392			391		3.03	%			37,975			252		2.66	%
Other interest-earning assets			10,518			272		10.49	%			10,518			267		10.10	%			10,518			256		9.76	%
Total average interest-earning assets			1,777,148			19,503		4.45	%			1,826,708			20,285		4.42	%			1,763,005			18,543		4.22	%
Non-interest-earning assets:
Cash and due from banks			34,338									38,617									36,100
Premises & equipment, net			9,145									9,336									9,852
Interest receivable and other assets			52,755									53,265									56,451
Total average assets		$	1,873,386								$	1,927,926								$	1,865,408
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits		$	385,953		$	691		0.73	%		$	377,274		$	657		0.69	%		$	372,188		$	511		0.55	%
Savings and MMDA’s			451,198			1,550		1.39	%			452,828			1,569		1.38	%			430,611			1,195		1.11	%
Time, $250,000 and under			99,503			973		3.97	%			110,293			1,352		4.88	%			115,881			1,211		4.19	%
Time, over $250,000			44,028			346		3.19	%			42,018			183		1.73	%			26,556			264		3.99	%
Total average interest- bearing liabilities			980,682			3,560		1.47	%			982,413			3,761		1.52	%			945,236			3,181		1.35	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits			697,972									749,973									741,886
Interest payable and other liabilities			13,919									16,602									17,913
Total average liabilities			1,692,573									1,748,988									1,705,035
Total average stockholders’ equity			180,813									178,938									160,373
Total average liabilities and stockholders’ equity		$	1,873,386								$	1,927,926								$	1,865.408
Net interest income and net interest margin					$	15,943		3.64	%					$	16,524		3.60	%					$	15,362		3.49	%

About First Northern Bank

First Northern Bank is an independent community bank that specializes in relationship banking. The Bank, headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer, Colusa, and Glenn counties, as well as the west slope of El Dorado County. Experts are available in small business, commercial, real estate, and agribusiness lending, as well as mortgage loans. The Bank is an SBA Preferred Lender. Real estate mortgage and small-business loan officers are available by appointment at any of the Bank’s 14 branches, including Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville, Auburn, Rancho Cordova, Colusa, Willows, and Orland. Non-FDIC insured Investment and Brokerage Services are also available at every branch location. First Northern Bank is rated as a Veribanc “Green-3 Star Blue Ribbon” Bank and a “5-Star Superior” Bank by Bauer Financial for the earnings period ended December 31, 2024 (www.veribanc.com) and (www.bauerfinancial.com). For additional information, please visit thatsmybank.com or call (707) 678-7742. Member FDIC. Equal Housing Lender.

Forward-Looking Statements

This press release and other public statements may include certain “forward-looking statements” about First Northern Community Bancorp and its subsidiaries (the “Company”). These forward-looking statements are based on management’s current expectations, including but not limited to statements about the Company’s performance and focus on improving shareholder value, and are subject to certain risks, uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, trade, business, competitive, market and regulatory factors. More detailed information about these risk factors is contained in the Company’s reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent reports on Form 10-K and Form 10-Q, and any reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made. For further information regarding the Company, please read the Company’s reports filed with the SEC and available at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250429531630/en/

Jeremiah Z. Smith

President & Chief Executive Officer

First Northern Community Bancorp

& First Northern Bank

P.O. Box 547

Dixon, California (707) 678-3041

Source: First Northern Community Bancorp