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

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 [phone]. 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.