First Northern Community Bancorp Reports Third Quarter 2025 Net Income of $6.0 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 $15.2 million, or $0.96 per diluted share, for the nine months ended September 30, 2025, up 6.8% compared to net income of $14.2 million, or $0.88 per diluted share, for the nine months ended September 30, 2024.

Net income for the quarter ended September 30, 2025, was $6.0 million, or $0.38 per diluted share, up 9.6% compared to net income of $5.5 million, or $0.34 per diluted share, for the quarter ended September 30, 2024.

Total assets as of September 30, 2025, were $1.91 billion, a decrease of $22.5 million, or 1.2%, compared to September 30, 2024. Total net loans as of September 30, 2025, were $1.06 billion, an increase of $13.7 million, or 1.3%, compared to September 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 and residential mortgage loans. Total deposits as of September 30, 2025, were $1.69 billion, a decrease of $45.6 million, or 2.6%, compared to September 30, 2024.

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

Commenting on the Company’s third quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “We are pleased to report another strong quarter with net income increasing by 9.6% compared to the same quarter last year. Our net interest margin expanded to 3.75%, up 10 basis points from 3.65% for the same quarter last year. This improvement reflected higher yields on our securities portfolio and disciplined deposit pricing that reduced our interest-bearing liability costs by 7 basis points when compared to the same quarter last year. We recorded no provision for credit losses in the quarter, compared to a $0.5 million reversal for the same quarter last year.”

Commenting further, President & CEO Smith stated: “In addition, we executed a tax planning strategy during the quarter that significantly reduced our effective tax rate and related tax expense when compared to prior quarters. This reduction primarily resulted from the purchase of investment tax credits tied to alternative energy projects, which were acquired at a discount and recognized as a reduction to income tax expense in the quarter utilized. We remained focused on improving shareholder value, as reflected in our book value per share, which increased to $13.02 as of September 30, 2025, up $0.70, or 5.7%, from $12.32 at the end of the prior quarter.”

THIRD QUARTER HIGHLIGHTS (UNAUDITED)

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

Summary Results (Unaudited)

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

Balance Sheet Summary (Unaudited)

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:

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 June 30, 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, 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.