First Northern Community Bancorp Reports First Quarter 2026 Net Income of $5.9 Million

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

cost of funds financial

The cost of funds is the average price a company or bank pays to obtain money—through deposits, loans, bonds or other borrowings—that it uses to run the business or make investments. It matters to investors because higher borrowing costs act like a heavier mortgage payment for a household, reducing profits, cash flow and the ability to pay dividends or invest in growth, while lower costs boost competitiveness and valuation.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

return on average assets financial

Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.

return on average equity financial

Return on average equity (ROAE) measures how much profit a company generates for its shareholders’ invested capital over a period, calculated by dividing net profit by the average shareholder equity during that period. It matters to investors because it shows how efficiently management turns owners’ money into earnings—like how much bread a baker bakes from the same oven space—helping compare profitability across companies and track performance over time.

provision for credit losses financial

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

tangible common equity ratio financial

Tangible common equity ratio measures how much real, loss-absorbing capital common shareholders have relative to a company's tangible assets—calculated by removing intangible items (like goodwill) and preferred equity from total equity and comparing that net amount to tangible assets. Think of it as the thickness of a safety cushion made of solid, visible value rather than accounting entries; investors use it to judge how well a company could withstand losses and protect common shareholders' claims.

tier 1 capital ratio financial

A tier 1 capital ratio measures a bank’s core financial strength by comparing its most reliable capital — such as shareholder equity and retained profits — to its assets after adjusting for how risky those assets are. Think of it as the firm’s shock-absorbing cushion relative to the danger of its exposures; higher ratios mean the bank is better positioned to absorb losses, meet regulations and continue lending, which matters to investors assessing safety and long-term returns.

DIXON, Calif.--(BUSINESS WIRE)-- First Northern Community Bancorp (the “Company”, NASDAQ: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $5.9 million, or $0.36 per diluted share, for the three months ended March 31, 2026, up 60.9% compared to net income of $3.7 million, or $0.22 per diluted share, for the three months ended March 31, 2025.

Total assets as of March 31, 2026, were $1.92 billion, an increase of $48.8 million, or 2.6%, compared to March 31, 2025. Total net loans as of March 31, 2026, were $1.06 billion, an increase of $23.8 million, or 2.3%, compared to March 31, 2025. The increase in net loans was primarily driven by growth in commercial loans, which was partially offset by net reductions in commercial real estate, agriculture, residential mortgage and consumer loans. Total deposits as of March 31, 2026, were $1.69 billion, an increase of $19.9 million, or 1.2%, compared to March 31, 2025.

The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of March 31, 2026.

Jeremiah Smith, President and Chief Executive Officer commented, “The Company delivered strong financial results in the first quarter with net income of $5.9 million, an increase of 60.9% when compared to the net income of $3.7 million in the first quarter of 2025. Net interest margin expanded to 3.83%, up 19 basis points or 5.2% from 3.64% reported for the same quarter last year. This improvement was driven by loan growth and improved yields on interest-earning assets, while we maintained a disciplined cost of funds at 90 basis points for the first quarter. As a result, net interest income after provision for credit losses increased by $1.8 million or 12.0%.”

Commenting further, “In addition to the growth in net interest income we experienced an increase in non-interest income, primarily driven by our Beacon Wealth client acquisition in the fourth quarter of 2025. Investment and Brokerage income rose 154.3% in the first quarter when compared to the same quarter last year. At the same time, we maintained strong expense discipline, with operating expenses decreasing by 4.8% year-over-year, primarily due to lower consulting fees and loan collection expenses incurred during the current period.”

Lastly, Mr. Smith commented, “We remained focused on enhancing shareholder value, as reflected in our book value per share, increasing from $12.92 at December 31, 2025 to $13.03 at March 31, 2026. We also returned capital to shareholders through a 5% stock dividend paid on March 25, 2026, and announced a new stock repurchase program of up to 6% of outstanding shares on March 26, 2026. Subsequent to quarter-end, we uplisted from the OTCQX and the Company's common stock commenced trading on The Nasdaq Capital Market on April 24, 2026, which should further strengthen our market presence.”

FIRST QUARTER HIGHLIGHTS (UNAUDITED)

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

		Three months ended
		March 31,				December 31,				March 31,
(in thousands, except per share and share data)			2026				2025				2025
Return on average assets (“ROAA”) (annualized)			1.24	%			1.23	%			0.79	%
Return on average equity (“ROAE”) (annualized)			11.21	%			11.40	%			8.23	%
Pre-tax income		$	7,612			$	8,270			$	4,956
Net income		$	5,906			$	5,978			$	3,671
Net interest margin (annualized)			3.83	%			3.85	%			3.64	%
Cost of funds (annualized)			0.90	%			0.92	%			0.86	%
Efficiency ratio			58.23	%			61.31	%			66.62	%
Basic earnings per common share		$	0.37			$	0.37			$	0.22
Diluted earnings per common share		$	0.36			$	0.36			$	0.22
Weighted average basic common shares outstanding			16,133,555				16,165,014				16,420,431
Weighted average diluted common shares outstanding			16,490,162				16,534,164				16,661,559
Shares outstanding at end of period			16,409,660				16,406,281				16,692,825
Book value per share		$	13.03			$	12.92			$	11.25
Leverage ratio			11.7	%			11.3	%			10.9	%
Common equity tier 1 capital ratio			17.8	%			17.6	%			16.1	%
Tier 1 capital ratio			17.8	%			17.6	%			16.1	%
Total capital ratio			19.1	%			18.9	%			17.4	%
Tangible common equity ratio			10.87	%			10.84	%			9.80	%
Reconciliation of Non-GAAP Financial Measures
Total shareholders' equity		$	213,799			$	212,018			$	187,805
Less mortgage servicing rights			(1,126	)			(1,159	)			(1,279	)
Less intangible assets			(4,079	)			(4,332	)			(3,132	)
Total tangible common stockholders' equity		$	208,594			$	206,527			$	183,394
Total assets		$	1,924,548			$	1,910,950			$	1,875,700
Less mortgage servicing rights			(1,126	)			(1,159	)			(1,279	)
Less intangible assets			(4,079	)			(4,332	)			(3,132	)
Total tangible assets		$	1,919,343			$	1,905,459			$	1,871,289
Tangible common equity ratio			10.87	%			10.84	%			9.80	%

Summary Results (Unaudited)

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

		Three months ended
		March 31,				December 31,
(in thousands)			2026				2025			$ Change				% Change
Selected operating data:
Net interest income		$	17,204			$	17,729			$	(525	)		(2.96	)%
Provision for (reversal of) credit losses			300				(850	)			1,150			135.29	%
Non-interest income			1,740				1,449				291			20.08	%
Non-interest expense			11,032				11,758				(726	)		(6.17	)%
Pre-tax income			7,612				8,270				(658	)		(7.96	)%
Provision for income taxes			1,706				2,292				(586	)		(25.57	)%
Net income		$	5,906			$	5,978			$	(72	)		(1.20	)%

		Three months ended
		March 31,				March 31,
(in thousands)			2026				2025			$ Change				% Change
Selected operating data:
Net interest income		$	17,204			$	15,943			$	1,261			7.91	%
Provision for credit losses			300				850				(550	)		(64.71	)%
Non-interest income			1,740				1,453				287			19.75	%
Non-interest expense			11,032				11,590				(558	)		(4.81	)%
Pre-tax income			7,612				4,956				2,656			53.59	%
Provision for income taxes			1,706				1,285				421			32.76	%
Net income		$	5,906			$	3,671			$	2,235			60.88	%

Balance Sheet Summary (Unaudited)

		March 31,				December 31,
(in thousands)			2026				2025			$ Change				% Change
Selected financial condition data:
Cash and cash equivalents		$	139,584			$	145,554			$	(5,970	)		(4.10	)%
Total investments			623,282				617,243				6,039			0.98	%
Total loans, net			1,064,622				1,050,473				14,149			1.35	%
Total assets			1,924,548				1,910,950				13,598			0.71	%
Total deposits			1,694,698				1,679,143				15,555			0.93	%
Total liabilities			1,710,749				1,698,932				11,817			0.70	%
Total shareholders’ equity			213,799				212,018				1,781			0.84	%

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, 2026												December 31, 2025												March 31, 2025
										Yields												Yields												Yields
						Interest				Earned/								Interest				Earned/								Interest				Earned/
		Average				Income/				Rates				Average				Income/				Rates				Average				Income/				Rates
(in thousands)		Balance				Expense				Paid (1)				Balance				Expense				Paid (1)				Balance				Expense				Paid (1)
Assets
Interest-earning assets:
Loans		$	1,044,166			$	14,322				5.56	%		$	1,050,919			$	15,179				5.73	%		$	1,042,559			$	13,602				5.29	%
Certificates of deposit			10,558				106				4.07	%			11,709				122				4.13	%			15,868				161				4.11	%
Interest-bearing due from banks			125,045				1,098				3.56	%			139,963				1,465				4.15	%			70,468				727				4.18	%
Investment securities, taxable			573,637				4,434				3.13	%			557,389				4,230				3.01	%			587,332				4,348				3.00	%
Investment securities, non-taxable			57,685				447				3.14	%			56,151				439				3.10	%			50,403				393				3.16	%
Other interest-earning assets			10,870				555				20.71	%			10,871				251				9.16	%			10,518				272				10.49	%
Total average interest-earning assets			1,821,961				20,962				4.67	%			1,827,002				21,686				4.71	%			1,777,148				19,503				4.45	%
Non-interest-earning assets:
Cash and due from banks			29,481												31,324												34,338
Premises & equipment, net			8,693												8,466												9,145
Interest receivable and other assets			65,134												66,699												52,755
Total average assets		$	1,925,269											$	1,933,491											$	1,873,386
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits		$	444,368				766				0.70	%		$	427,612				770				0.71	%		$	432,335				691				0.65	%
Savings and MMDA’s			475,494				1,809				1.54	%			471,222				1,928				1.62	%			451,198				1,550				1.39	%
Time, $250,000 and under			85,614				723				3.42	%			89,058				973				4.33	%			99,503				973				3.97	%
Time, over $250,000			55,793				460				3.34	%			54,256				286				2.09	%			44,028				346				3.19	%
Total average interest-bearing liabilities			1,061,269				3,758				1.44	%			1,042,148				3,957				1.51	%			1,027,064				3,560				1.41	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits			632,800												665,760												651,590
Interest payable and other liabilities			17,462												17,496												13,919
Total average liabilities			1,711,531												1,725,404												1,692,573
Total average stockholders’ equity			213,738												208,087												180,813
Total average liabilities and stockholders’ equity		$	1,925,269											$	1,933,491											$	1,873,386
Net interest income and net interest margin						$	17,204				3.83	%						$	17,729				3.85	%						$	15,943				3.64	%

(1)	For disclosure purposes, yield/rates are annualized by dividing the number of days in the reported period by 365.

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, 2025 (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 the potential benefits of the uplisting of the Company’s common stock to The Nasdaq Capital Market, 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. Any anticipated benefits of the uplisting of the Company’s common stock to The Nasdaq Capital Market are subject to market conditions and other factors outside of the Company’s control, and no assurance can be given as to the effect that the uplisting may have on the trading volume of our stock or on the liquidity of an investment in our stock. 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. Readers are cautioned not to place undue reliance on forward‑looking statements, which speak only as of the date made. 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, except as may be required by applicable law. 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/20260429568379/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