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 |
% |
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(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 (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 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429568379/en/
Jeremiah Z. Smith
President & Chief Executive Officer
First Northern Community Bancorp
& First Northern Bank
P.O. Box 547
Dixon, California (707) 678-3041
KEYWORDS: California United States North America
INDUSTRY KEYWORDS: Banking Professional Services Finance
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