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First Northern Community Bancorp

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

DIXON, Calif.--(BUSINESS WIRE)--Apr. 29, 2025-- 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.

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