FT Markets Data
First Northern Community Bancorp

First Northern Community Bancorp Reports Fourth Quarter 2025 Net Income of $6.0 Million

DIXON, Calif.--(BUSINESS WIRE)--Jan. 29, 2026-- First Northern Community Bancorp (the “Company”, OTCQX: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $21.1 million, or $1.27 per diluted share, for the twelve months ended December 31, 2025, up 5.5% compared to net income of $20.0 million, or $1.19 per diluted share, for the twelve months ended December 31, 2024.

Net income for the quarter ended December 31, 2025, was $6.0 million, or $0.36 per diluted share, up 2.3% compared to net income of $5.8 million, or $0.35 per diluted share, for the quarter ended December 31, 2024.

Total assets as of December 31, 2025, were $1.91 billion, an increase of $19.2 million, or 1.0%, compared to December 31, 2024. Total net loans as of December 31, 2025, were $1.05 billion, an increase of $3.6 million, or 0.4%, compared to December 31, 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 December 31, 2025, were $1.68 billion, a decrease of $20.9 million, or 1.2%, compared to December 31, 2024.

The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of December 31, 2025.

Commenting on the Company’s fourth quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “Our emphasis on building shareholder value continued in the fourth quarter with strong financial results as reflected in return on equity, return on assets, net interest margin, and operating efficiency. Shareholder’s equity totaled $212.0 million on December 31, 2025, an increase of $35.7 million, or 20.2%, compared to the prior year. Book value per share as of December 31, 2025, was $12.92, up $2.38, or 22.6%, compared to the prior year. The increases in equity and book value were driven by increases in retained earnings and fair value of our investment portfolio during 2025.”

Commenting further, President & CEO Smith stated: “We continued to see improvement in our net interest margin during the quarter. Yields on total average earning assets improved by 29 basis points, or 9.6%, compared to the same quarter last year, while our cost of funds increased only 5 basis points, or 3.2%. This resulted in a 25-basis-point improvement in net interest margin to 3.85% for the three months ended December 31, 2025, compared to 3.60% for the same quarter one year prior. This improvement was primarily driven by higher yields on our loan and securities portfolios and continued discipline in our deposit pricing.”

The Company also reported that, at their regular meeting on January 22, 2026, the Board of Directors approved the payment of a 5% stock dividend payable March 25, 2026, to shareholders of record as of February 27, 2026. All income per share amounts have been adjusted to give retroactive effect to the stock dividend.

FOURTH QUARTER HIGHLIGHTS (UNAUDITED)

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

 

 

Three months ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(in thousands, except per share and share data)

 

2025

 

 

2025

 

 

2024

 

Return on average assets (“ROAA”) (annualized)

 

 

1.23

%

 

 

1.27

%

 

 

1.20

%

Return on average equity (“ROAE”) (annualized)

 

 

11.40

%

 

 

12.15

%

 

 

12.96

%

Pre-tax income

 

$

8,270

 

 

$

6,582

 

 

$

8,135

 

Net income

 

$

5,978

 

 

$

6,013

 

 

$

5,846

 

Net interest margin (annualized)

 

 

3.85

%

 

 

3.75

%

 

 

3.60

%

Cost of funds (annualized)

 

 

0.92

%

 

 

0.88

%

 

 

0.86

%

Efficiency ratio

 

 

61.31

%

 

 

64.43

%

 

 

57.34

%

Basic earnings per common share

 

$

0.37

 

 

$

0.37

 

 

$

0.35

 

Diluted earnings per common share

 

$

0.36

 

 

$

0.36

 

 

$

0.35

 

Weighted average basic common shares outstanding

 

 

16,165,014

 

 

 

16,266,955

 

 

 

16,494,513

 

Weighted average diluted common shares outstanding

 

 

16,534,164

 

 

 

16,545,837

 

 

 

16,755,429

 

Shares outstanding at end of period

 

 

16,406,281

 

 

 

16,502,035

 

 

 

16,723,686

 

Book value per share

 

$

12.92

 

 

$

12.41

 

 

$

10.54

 

Summary Results (Unaudited)

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

 

 

Three months ended

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

 

 

 

 

 

 

(in thousands)

 

2025

 

 

2025

 

 

$ Change

 

% Change

Selected operating data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,729

 

 

$

16,847

 

 

$

882

 

 

 

5.24

%

Reversal of credit losses

 

 

(850

)

 

 

—

 

 

 

(850

)

 

 

—

 

Non-interest income

 

 

1,449

 

 

 

1,658

 

 

 

(209

)

 

 

(12.61

)%

Non-interest expense

 

 

11,758

 

 

 

11,923

 

 

 

(165

)

 

 

(1.38

)%

Pre-tax income

 

 

8,270

 

 

 

6,582

 

 

 

1,688

 

 

 

25.65

%

Provision for income taxes

 

 

2,292

 

 

 

569

 

 

 

1,723

 

 

 

302.81

%

Net income

 

$

5,978

 

 

$

6,013

 

 

$

(35

)

 

 

(0.58

)%

 

 

Three months ended

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

 

(in thousands)

 

2025

 

 

2024

 

 

$ Change

 

% Change

Selected operating data:

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,729

 

 

$

16,524

 

 

$

1,205

 

 

 

7.29

%

Reversal of credit losses

 

 

(850

)

 

 

(450

)

 

 

(400

)

 

 

88.89

%

Non-interest income

 

 

1,449

 

 

 

1,490

 

 

 

(41

)

 

 

(2.75

)%

Non-interest expense

 

 

11,758

 

 

 

10,329

 

 

 

1,429

 

 

 

13.83

%

Pre-tax income

 

 

8,270

 

 

 

8,135

 

 

 

135

 

 

 

1.66

%

Provision for income taxes

 

 

2,292

 

 

 

2,289

 

 

 

3

 

 

 

0.13

%

Net income

 

$

5,978

 

 

$

5,846

 

 

$

132

 

 

 

2.26

%

Balance Sheet Summary (Unaudited)

 

 

December 31,

 

 

December 31,

 

 

 

 

 

 

 

 

(in thousands)

 

2025

 

 

2024

 

 

$ Change

 

% Change

 

Selected financial condition data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,910,950

 

 

$

1,891,722

 

 

$

19,228

 

 

 

1.02

%

Cash and cash equivalents

 

 

145,554

 

 

 

119,448

 

 

 

26,106

 

 

 

21.86

%

Total loans, net

 

 

1,050,473

 

 

 

1,046,852

 

 

 

3,621

 

 

 

0.35

%

Total investments

 

 

617,243

 

 

 

633,853

 

 

 

(16,610

)

 

 

-2.62

%

Total liabilities

 

 

1,698,932

 

 

 

1,715,390

 

 

 

(16,458

)

 

 

-0.96

%

Total deposits

 

 

1,679,143

 

 

 

1,700,089

 

 

 

(20,946

)

 

 

-1.23

%

Total shareholders’ equity

 

 

212,018

 

 

 

176,332

 

 

 

35,686

 

 

 

20.24

%

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

 

 

 

 

December 31, 2025

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,050,919

 

 

$

15,179

 

 

 

5.73

%

 

$

1,055,924

 

 

$

14,589

 

 

 

5.48

%

 

$

1,044,552

 

 

$

13,769

 

 

 

5.24

%

Certificates of deposit

 

 

11,709

 

 

 

122

 

 

 

4.13

%

 

 

14,332

 

 

 

152

 

 

 

4.21

%

 

 

17,320

 

 

 

182

 

 

 

4.18

%

Interest-bearing due from banks

 

 

139,963

 

 

 

1,465

 

 

 

4.15

%

 

 

105,545

 

 

 

1,071

 

 

 

4.03

%

 

 

104,261

 

 

 

1,400

 

 

 

5.34

%

Investment securities, taxable

 

 

557,389

 

 

 

4,230

 

 

 

3.01

%

 

 

545,004

 

 

 

4,068

 

 

 

2.96

%

 

 

598,665

 

 

 

4,276

 

 

 

2.84

%

Investment securities, non-taxable

 

 

56,151

 

 

 

439

 

 

 

3.10

%

 

 

52,042

 

 

 

419

 

 

 

3.19

%

 

 

51,392

 

 

 

391

 

 

 

3.03

%

Other interest-earning assets

 

 

10,871

 

 

 

251

 

 

 

9.16

%

 

 

10,870

 

 

 

245

 

 

 

8.94

%

 

 

10,518

 

 

 

267

 

 

 

10.10

%

Total average interest-earning assets

 

 

1,827,002

 

 

 

21,686

 

 

 

4.71

%

 

 

1,783,717

 

 

 

20,544

 

 

 

4.57

%

 

 

1,826,708

 

 

 

20,285

 

 

 

4.42

%

Non-interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

31,324

 

 

 

 

 

 

 

 

 

 

 

32,326

 

 

 

 

 

 

 

 

 

 

 

38,617

 

 

 

 

 

 

 

 

 

Premises & equipment, net

 

 

8,466

 

 

 

 

 

 

 

 

 

 

 

8,133

 

 

 

 

 

 

 

 

 

 

 

9,336

 

 

 

 

 

 

 

 

 

Interest receivable and other assets

 

 

66,699

 

 

 

 

 

 

 

 

 

 

 

59,211

 

 

 

 

 

 

 

 

 

 

 

53,265

 

 

 

 

 

 

 

 

 

Total average assets

 

$

1,933,491

 

 

 

 

 

 

 

 

 

 

$

1,883,387

 

 

 

 

 

 

 

 

 

 

$

1,927,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction deposits

 

$

383,185

 

 

$

770

 

 

 

0.80

%

 

$

390,689

 

 

$

767

 

 

 

0.78

%

 

$

377,280

 

 

$

657

 

 

 

0.69

%

Savings and MMDA’s

 

 

471,222

 

 

 

1,928

 

 

 

1.62

%

 

 

459,869

 

 

 

1,723

 

 

 

1.49

%

 

 

452,828

 

 

 

1,569

 

 

 

1.38

%

Time, $250,000 and under

 

 

89,058

 

 

 

973

 

 

 

4.33

%

 

 

84,002

 

 

 

758

 

 

 

3.58

%

 

 

110,293

 

 

 

1,352

 

 

 

4.88

%

Time, over $250,000

 

 

54,256

 

 

 

286

 

 

 

2.09

%

 

 

51,446

 

 

 

449

 

 

 

3.46

%

 

 

42,018

 

 

 

183

 

 

 

1.73

%

Total average interest-bearing liabilities

 

 

997,721

 

 

 

3,957

 

 

 

1.57

%

 

 

986,006

 

 

 

3,697

 

 

 

1.49

%

 

 

982,419

 

 

 

3,761

 

 

 

1.52

%

Non-interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

710,187

 

 

 

 

 

 

 

 

 

 

 

685,713

 

 

 

 

 

 

 

 

 

 

 

749,923

 

 

 

 

 

 

 

 

 

Interest payable and other liabilities

 

 

17,496

 

 

 

 

 

 

 

 

 

 

 

15,265

 

 

 

 

 

 

 

 

 

 

 

16,596

 

 

 

 

 

 

 

 

 

Total average liabilities

 

 

1,725,404

 

 

 

 

 

 

 

 

 

 

 

1,686,984

 

 

 

 

 

 

 

 

 

 

 

1,748,938

 

 

 

 

 

 

 

 

 

Total average stockholders’ equity

 

 

208,087

 

 

 

 

 

 

 

 

 

 

 

196,403

 

 

 

 

 

 

 

 

 

 

 

178,988

 

 

 

 

 

 

 

 

 

Total average liabilities and stockholders’ equity

 

$

1,933,491

 

 

 

 

 

 

 

 

 

 

$

1,883,387

 

 

 

 

 

 

 

 

 

 

$

1,927,926

 

 

 

 

 

 

 

 

 

Net interest income and net interest margin

 

 

 

 

 

$

17,729

 

 

 

3.85

%

 

 

 

 

 

$

16,847

 

 

 

3.75

%

 

 

 

 

 

$

16,524

 

 

 

3.60

%

(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 September 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 the stock dividend payable March 25, 2026, to shareholders of record as of February 27, 2026, 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.

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