First Northern Community Bancorp Reports Second Quarter 2025 Net Income of $5.5 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 $9.1 million, or $0.58 per diluted share, for the six months ended June 30, 2025, up 5.0% compared to net income of $8.7 million, or $0.54 per diluted share, for the six months ended June 30, 2024.

Net income for the quarter ended June 30, 2025, was $5.5 million, or $0.35 per diluted share, up 23.6% compared to net income of $4.4 million, or $0.27 per diluted share, for the quarter ended June 30, 2024.

Total assets as of June 30, 2025, were $1.87 billion, a decrease of $16.0 million, or 0.9%, compared to June 30, 2024. Total net loans (including loans held-for-sale) as of June 30, 2025, were $1.06 billion, an increase of $14.1 million, or 1.3%, compared to total net loans (including loans held-for-sale) of $1.05 billion as of June 30, 2024. The increase in net loans was primarily driven by growth in commercial loans, which was partially offset by net reductions in commercial real estate, agricultural, and residential mortgage loans. Total deposits as of June 30, 2025, were $1.66 billion, a decrease of $43.8 million, or 2.6%, compared to June 30, 2024.

The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of June 30, 2025.

Commenting on the Company’s second quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “We are pleased to report strong second quarter results, with net income increasing by 23.6% compared to the same quarter last year. Our net margin expanded to 3.85%, an increase of 19 basis points from 3.66%, driving a $1.0 million, or 6.1%, increase in net interest income when compared to the year prior. This improvement was due to higher yields on our loan and securities portfolios, along with disciplined deposit pricing that kept interest-bearing liability costs nearly flat during the quarter. We recorded no provision for credit losses in the quarter, due to the release of a $2.8 million specific reserve initially recorded during the first quarter of 2025. The release of specific provision was offset by an increase in pooled and unfunded reserves tied to loan growth and changes in economic forecasts.”

Commenting further, President & CEO Smith stated: “We remain committed to improving shareholder value. During the first two quarters of the year, we repurchased 215,883 shares for total consideration of $2.2 million. Shareholders’ equity improved from $187.8 million on March 31, 2025, to $194.9 million on June 30, 2025 - an increase of $7.1 million, or 3.8%, primarily driven by net income of $5.5 million and a $2.3 million improvement in accumulated other comprehensive loss for the quarter. As a result, book value per share increased $0.51 to $12.32 as of June 30, 2025, up 4.3% compared to March 31, 2025.”

SECOND 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)	June 30, 2025				March 31, 2025				June 30, 2024
Return on average assets (“ROAA”) (annualized)		1.18	%			0.79	%			0.95	%
Return on average equity (“ROAE”) (annualized)		11.67	%			8.23	%			10.87	%
Pre-tax income	$	7,597			$	4,956			$	6,113
Net income	$	5,466			$	3,671			$	4,424
Net interest margin (annualized)		3.85	%			3.64	%			3.66	%
Cost of funds (annualized)		0.88	%			0.86	%			0.84	%
Efficiency ratio		58.91	%			66.62	%			58.98	%
Basic earnings per common share	$	0.35			$	0.23			$	0.28
Diluted earnings per common share	$	0.35			$	0.23			$	0.27
Weighted average basic common shares outstanding		15,606,764				15,650,176				15,949,825
Weighted average diluted common shares outstanding		15,811,754				15,879,822				16,149,929
Shares outstanding at end of period		15,818,328				15,897,929				16,178,149

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)	June 30, 2025				March 31, 2025				$ Change				% Change
Selected operating data:
Net interest income	$	16,953			$	15,943			$	1,010				6.34	%
Provision for credit losses		—				850				(850	)			(100.00	)%
Non-interest income		1,537				1,453				84				5.78	%
Non-interest expense		10,893				11,590				(697	)			(6.01	)%
Pre-tax income		7,597				4,956				2,641				53.29	%
Provision for income taxes		2,131				1,285				846				65.84	%
Net income	$	5,466			$	3,671			$	1,795				48.90	%

	Three months ended
(in thousands)	June 30, 2025				June 30, 2024				$ Change				% Change
Selected operating data:
Net interest income	$	16,953			$	15,978			$	975				6.10	%
Provision for credit losses		—				1,050				(1,050	)			(100.00	)%
Non-interest income		1,537				1,484				53				3.57	%
Non-interest expense		10,893				10,299				594				5.77	%
Pre-tax income		7,597				6,113				1,484				24.28	%
Provision for income taxes		2,131				1,689				442				26.17	%
Net income	$	5,466			$	4,424			$	1,042				23.55	%

Balance Sheet Summary (Unaudited)

(in thousands)	June 30, 2025			December 31, 2024			$ Change				% Change
Selected financial condition data:
Total assets	$	1,871,990		$	1,891,722		$	(19,732	)			(1.04	)%
Cash and cash equivalents		126,851			119,448			7,403				6.20	%
Total loans, net (including loans held-for-sale)		1,063,458			1,046,852			16,606				1.59	%
Total investments		593,550			633,853			(40,303	)			(6.36	)%
Total liabilities		1,677,105			1,715,390			(38,285	)			(2.23	)%
Total deposits		1,663,277			1,700,089			(36,812	)			(2.17	)%
Total shareholders’ equity		194,885			176,332			18,553				10.52	%

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
		June 30, 2025									March 31, 2025								June 30, 2024
(in thousands)		Average Balance			Interest Income/ Expense		Yields Earned/ Rates Paid (1)				Average Balance			Interest Income/ Expense		Yields Earned/ Rates Paid (1)				Average Balance			Interest Income/ Expense		Yields Earned/ Rates Paid (1)
Assets
Interest-earning assets:
Loans	$	1,044,581		$	14,629		5.62	%		$	1,042,559		$	13,602		5.29	%		$	1,041,102		$	13,830		5.34	%
Certificates of deposit		15,112			157		4.17	%			15,868			161		4.11	%			17,081			171		4.03	%
Interest-bearing due from Banks		85,828			1,010		4.72	%			70,468			727		4.18	%			130,963			1,913		5.87	%
Investment securities, Taxable		560,021			4,137		2.96	%			587,332			4,348		3.00	%			519,789			3,088		2.39	%
Investment securities, non-taxable		49,497			391		3.17	%			50,403			393		3.16	%			38,055			261		2.76	%
Other interest-earning assets		10,808			250		9.28	%			10,518			272		10.49	%			10,518			267		10.21	%
Total average interest- earning assets		1,765,847			20,574		4.67	%			1,777,148			19,503		4.45	%			1,757,508			19,530		4.47	%
Non-interest-earning assets:
Cash and due from banks		30,777									34,338									39,630
Premises & equipment, net		7,866									9,145									9,642
Interest receivable and other assets		53,556									52,755									59,523
Total average assets	$	1,858,046								$	1,873,386								$	1,866,303
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	383,761			693		0.72	%		$	385,953		$	691		0.73	%		$	371,657			622		0.67	%
Savings and MMDA’s		447,276			1,602		1.44	%			451,198			1,550		1.39	%			425,601			1,272		1.20	%
Time, $250,000 and under		88,024			889		4.05	%			99,503			973		3.97	%			123,303			1,356		4.42	%
Time, over $250,000		51,942			362		2.80	%			44,028			346		3.19	%			34,605			302		3.51	%
FHLB advances		6,593			75		4.56	%			—			—		—				—			—		—
Total average interest- bearing liabilities		977,596			3,621		1.49	%			980,682			3,560		1.47	%			955,166			3,552		1.50	%
Non-interest-bearing liabilities:
Non-interest-bearing demand deposits		679,144									697,972									732,153
Interest payable and other liabilities		13,505									13,919									15,737
Total average liabilities		1,670,245									1,692,573									1,703,056
Total average stockholders’ equity		187,801									180,813									163,247
Total average liabilities and stockholders’ equity	$	1,858,046								$	1,873,386								$	1,866,303
Net interest income and net interest margin				$	16,953		3.85	%					$	15,943		3.64	%					$	15,978		3.66	%

(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 March 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 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/20250729529930/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