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First Northern Community Bancorp

First Northern Community Bancorp Reports Second Quarter 2025 Net Income of $5.5 Million

DIXON, Calif.--(BUSINESS WIRE)--Jul. 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 $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.

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