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 $16.8 million, or $1.02 per diluted share, for the nine months ended September 30, 2026, up 11.1% compared to net income of $15.2 million, or $0.91 per diluted share, for the nine months ended September 30, 2025.
Net income for the quarter ended September 30, 2026, was $6.2 million, or $0.38 per diluted share, up 3.1% compared to net income of $6.0 million, or $0.36 per diluted share, for the quarter ended September 30, 2025.
Total assets as of September 30, 2026, were $1.99 billion, an increase of $82.5 million, or 4.3%, compared to September 30, 2025. Total net loans, including loans held-for-sale, as of September 30, 2026, were $1.13 billion, an increase of $78.0 million, or 7.4%, compared to September 30, 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 September 30, 2026, were $1.76 billion, an increase of $74.1 million, or 4.4%, compared to September 30, 2025.
The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of September 30, 2026.
Jeremiah Smith, President and Chief Executive Officer, commented, “First Northern continued strong momentum during the third quarter, highlighted by accelerating loan growth and solid deposit generation. Total loans increased $41.1 million during the quarter, representing an annualized growth rate of 14.7% for the three months ended September 30, 2026, compared to a 10.5% annualized growth rate for the nine months ended September 30, 2026. Total deposits increased $68.6 million during the quarter, representing an annualized growth rate of 16.1% for the three months ended September 30, 2026, compared to a 6.5% annualized growth rate for the nine months ended September 30, 2026."
“We also made meaningful progress in improving our credit quality with the successful resolution of a longstanding nonaccrual lending relationship. This resolution reduced nonaccrual loans by $1.2 million, or 25.6%, during the quarter and contributed to an increase of $1.8 million in nonaccrual interest income recognized when compared to the same quarter last year. This increase in nonaccrual interest income recognized was the primary driver of the $2.5 million increase in net interest income when compared to the same quarter one year prior.”
“Beyond our financial results, we continued to execute on strategic initiatives designed to enhance long-term shareholder value. On October 13, we successfully completed a major system upgrade, replacing our core banking platform and establishing a modern technology foundation to support future growth, improve operational efficiency and reduce ongoing data processing costs. As anticipated, project-related investments contributed to a modest increase in non-interest expenses during the third quarter, with additional costs expected in the fourth quarter as we complete the upgrade."
“Together with our Nasdaq listing and inclusion in the Russell 3000 Index, these milestones represent significant progress in our long-term strategy. We remain focused on building a resilient, efficient and competitive bank while delivering lasting value to our customers, communities, employees, and shareholders.”
THIRD QUARTER HIGHLIGHTS (UNAUDITED)
Performance and operating highlights for the Company for the periods noted below included the following:
|
| Three months ended |
|
| September 30, |
| June 30, |
| September 30, |
(in thousands, except per share and share data) |
| 2026 |
| 2026 |
| 2025 |
Return on average assets (“ROAA”) (annualized)
|
|
|
1.24
|
%
|
|
|
0.98
|
%
|
|
|
1.27
|
%
|
Return on average equity (“ROAE”) (annualized)
|
|
|
11.25
|
%
|
|
|
8.80
|
%
|
|
|
12.15
|
%
|
Pre-tax income
|
|
$
|
8,296
|
|
|
$
|
6,215
|
|
|
$
|
6,582
|
|
Net income
|
|
$
|
6,202
|
|
|
$
|
4,728
|
|
|
$
|
6,013
|
|
Net interest margin (annualized)
|
|
|
4.12
|
%
|
|
|
3.75
|
%
|
|
|
3.75
|
%
|
Cost of funds (annualized)
|
|
|
0.95
|
%
|
|
|
0.90
|
%
|
|
|
0.88
|
%
|
Efficiency ratio
|
|
|
60.50
|
%
|
|
|
63.69
|
%
|
|
|
64.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
|
$
|
0.37
|
|
Diluted earnings per common share
|
|
$
|
0.38
|
|
|
$
|
0.29
|
|
|
$
|
0.36
|
|
Weighted average basic common shares outstanding
|
|
|
16,069,900
|
|
|
|
16,119,853
|
|
|
|
16,270,302
|
|
Weighted average diluted common shares outstanding
|
|
|
16,477,418
|
|
|
|
16,508,791
|
|
|
|
16,563,128
|
|
Shares outstanding at end of period
|
|
|
16,288,733
|
|
|
|
16,395,303
|
|
|
|
16,506,823
|
|
Book value per share at end of period
|
|
$
|
12.76
|
|
|
$
|
13.24
|
|
|
$
|
12.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio
|
|
|
12.5
|
%
|
|
|
12.0
|
%
|
|
|
11.5
|
%
|
Common equity tier 1 capital ratio
|
|
|
17.3
|
%
|
|
|
17.7
|
%
|
|
|
17.4
|
%
|
Tier 1 capital ratio
|
|
|
17.3
|
%
|
|
|
17.7
|
%
|
|
|
17.4
|
%
|
Total capital ratio
|
|
|
18.4
|
%
|
|
|
19.0
|
%
|
|
|
18.6
|
%
|
Tangible common equity ratio
|
|
|
10.2
|
%
|
|
|
11.0
|
%
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
$
|
207,876
|
|
|
$
|
217,154
|
|
|
$
|
204,769
|
|
Less mortgage servicing rights
|
|
|
(1,071
|
)
|
|
|
(1,101
|
)
|
|
|
(1,206
|
)
|
Less intangible assets
|
|
|
(3,589
|
)
|
|
|
(3,834
|
)
|
|
|
(2,771
|
)
|
Total tangible common shareholders' equity
|
|
$
|
203,216
|
|
|
$
|
212,219
|
|
|
$
|
200,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,990,705
|
|
|
$
|
1,926,412
|
|
|
$
|
1,908,208
|
|
Less mortgage servicing rights
|
|
|
(1,071
|
)
|
|
|
(1,101
|
)
|
|
|
(1,206
|
)
|
Less intangible assets
|
|
|
(3,589
|
)
|
|
|
(3,834
|
)
|
|
|
(2,771
|
)
|
Total tangible assets
|
|
$
|
1,986,045
|
|
|
$
|
1,921,477
|
|
|
$
|
1,904,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
|
|
|
10.2
|
%
|
|
|
11.0
|
%
|
|
|
10.5
|
%
|
Summary Results (Unaudited)
The following is a summary of the components of the Company’s operating results for the periods indicated:
|
| Three months ended |
|
|
|
|
|
|
|
|
|
|
| September 30, |
|
| June 30, |
|
|
|
|
|
|
|
|
|
(in thousands) |
| 2026 |
|
| 2026 |
|
| $ Change |
|
| % Change |
|
Selected operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
19,366
|
|
|
$
|
17,006
|
|
|
$
|
2,360
|
|
|
|
13.88
|
%
|
Provision for credit losses
|
|
|
—
|
|
|
|
600
|
|
|
|
(600
|
)
|
|
|
(100.00
|
)%
|
Non-interest income
|
|
|
1,636
|
|
|
|
1,763
|
|
|
|
(127
|
)
|
|
|
(7.20
|
)%
|
Non-interest expense
|
|
|
12,706
|
|
|
|
11,954
|
|
|
|
752
|
|
|
|
6.29
|
%
|
Pre-tax income
|
|
|
8,296
|
|
|
|
6,215
|
|
|
|
2,081
|
|
|
|
33.48
|
%
|
Provision for income taxes
|
|
|
2,094
|
|
|
|
1,487
|
|
|
|
607
|
|
|
|
40.82
|
%
|
Net income
|
|
$
|
6,202
|
|
|
$
|
4,728
|
|
|
$
|
1,474
|
|
|
|
31.18
|
%
|
|
| Three months ended |
|
|
|
|
|
|
|
|
|
|
| September 30, |
|
| September 30, |
|
|
|
|
|
|
|
|
|
(in thousands) |
| 2026 |
|
| 2025 |
|
| $ Change |
|
| % Change |
|
Selected operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
19,366
|
|
|
$
|
16,847
|
|
|
$
|
2,519
|
|
|
|
14.95
|
%
|
Provision for credit losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
NM
|
|
Non-interest income
|
|
|
1,636
|
|
|
|
1,658
|
|
|
|
(22
|
)
|
|
|
(1.33
|
)%
|
Non-interest expense
|
|
|
12,706
|
|
|
|
11,923
|
|
|
|
783
|
|
|
|
6.57
|
%
|
Pre-tax income
|
|
|
8,296
|
|
|
|
6,582
|
|
|
|
1,714
|
|
|
|
26.04
|
%
|
Provision for income taxes
|
|
|
2,094
|
|
|
|
569
|
|
|
|
1,525
|
|
|
|
268.01
|
%
|
Net income
|
|
$
|
6,202
|
|
|
$
|
6,013
|
|
|
$
|
189
|
|
|
|
3.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Summary (Unaudited)
|
| September 30, |
|
| December 31, |
|
|
|
|
|
|
|
|
|
(in thousands) |
| 2026 |
|
| 2025 |
|
| $ Change |
|
| % Change |
|
Selected financial condition data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
123,178
|
|
|
$
|
145,554
|
|
|
$
|
(22,376
|
)
|
|
|
(15.37
|
)%
|
Total investments
|
|
|
620,296
|
|
|
|
617,243
|
|
|
|
3,053
|
|
|
|
0.49
|
%
|
Total loans, net, including loans held-for-sale
|
|
|
1,134,013
|
|
|
|
1,050,473
|
|
|
|
83,540
|
|
|
|
7.95
|
%
|
Total assets
|
|
|
1,990,705
|
|
|
|
1,910,950
|
|
|
|
79,755
|
|
|
|
4.17
|
%
|
Total deposits
|
|
|
1,760,491
|
|
|
|
1,679,143
|
|
|
|
81,348
|
|
|
|
4.84
|
%
|
Total liabilities
|
|
|
1,782,829
|
|
|
|
1,698,932
|
|
|
|
83,897
|
|
|
|
4.94
|
%
|
Total shareholders’ equity
|
|
|
207,876
|
|
|
|
212,018
|
|
|
|
(4,142
|
)
|
|
|
(1.95
|
)%
|
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 |
| | September 30, 2026 |
| June 30, 2026 |
| September 30, 2025 |
(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
| |
$
|
1,101,723
| |
$
|
16,965
| |
6.11
|
%
| |
$
|
1,070,933
| |
$
|
14,549
| |
5.45
|
%
| |
$
|
1,055,924
| |
$
|
14,589
| |
5.48
|
%
|
Certificates of deposit
| |
|
11,272
| |
|
117
| |
4.12
|
%
| |
|
10,699
| |
|
107
| |
4.01
|
%
| |
|
14,332
| |
|
152
| |
4.21
|
%
|
Interest-bearing due from banks
| |
|
114,432
| |
|
1,005
| |
3.48
|
%
| |
|
102,368
| |
|
1,034
| |
4.05
|
%
| |
|
105,545
| |
|
1,071
| |
4.03
|
%
|
Investment securities, taxable
| |
|
572,072
| |
|
4,706
| |
3.26
|
%
| |
|
569,985
| |
|
4,529
| |
3.19
|
%
| |
|
545,004
| |
|
4,068
| |
2.96
|
%
|
Investment securities, non-taxable
| |
|
55,305
| |
|
450
| |
3.23
|
%
| |
|
54,549
| |
|
438
| |
3.22
|
%
| |
|
52,042
| |
|
419
| |
3.19
|
%
|
Other interest-earning assets
| |
|
10,870
| |
|
271
| |
9.89
|
%
| |
|
10,870
| |
|
149
| |
5.50
|
%
| |
|
10,870
| |
|
245
| |
8.94
|
%
|
Total average interest-earning assets
| |
|
1,865,674
| |
|
23,514
| |
5.00
|
%
| |
|
1,819,404
| |
|
20,806
| |
4.59
|
%
| |
|
1,783,717
| |
|
20,544
| |
4.57
|
%
|
Non-interest-earning assets:
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Cash and due from banks
| |
|
30,181
| |
|
| |
|
| |
|
30,581
| |
|
| |
|
| |
|
32,326
| |
|
| |
|
|
Premises & equipment, net
| |
|
9,519
| |
|
| |
|
| |
|
8,969
| |
|
| |
|
| |
|
8,133
| |
|
| |
|
|
Interest receivable and other assets
| |
|
71,505
| |
|
| |
|
| |
|
67,325
| |
|
| |
|
| |
|
59,211
| |
|
| |
|
|
Total average assets
| |
$
|
1,976,879
| |
|
| |
|
| |
$
|
1,926,279
| |
|
| |
|
| |
$
|
1,883,387
| |
|
| |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Liabilities and Stockholders’ Equity | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Interest-bearing liabilities:
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Interest-bearing transaction deposits
| |
$
|
469,808
| |
|
932
| |
0.79
|
%
| |
$
|
451,794
| |
|
810
| |
0.72
|
%
| |
$
|
430,143
| |
|
767
| |
0.71
|
%
|
Savings and MMDA’s
| |
|
496,781
| |
|
2,034
| |
1.62
|
%
| |
|
477,236
| |
|
1,857
| |
1.56
|
%
| |
|
459,869
| |
|
1,723
| |
1.49
|
%
|
Time, $250,000 and under
| |
|
87,429
| |
|
667
| |
3.03
|
%
| |
|
84,760
| |
|
677
| |
3.20
|
%
| |
|
84,002
| |
|
758
| |
3.58
|
%
|
Time, over $250,000
| |
|
53,483
| |
|
515
| |
3.82
|
%
| |
|
53,683
| |
|
456
| |
3.41
|
%
| |
|
51,446
| |
|
449
| |
3.46
|
%
|
Total average interest-bearing liabilities
| |
|
1,107,501
| |
|
4,148
| |
1.49
|
%
| |
|
1,067,473
| |
|
3,800
| |
1.43
|
%
| |
|
1,025,460
| |
|
3,697
| |
1.43
|
%
|
Non-interest-bearing liabilities:
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Non-interest-bearing demand deposits
| |
|
631,325
| |
|
| |
|
| |
|
626,901
| |
|
| |
|
| |
|
646,259
| |
|
| |
|
|
Interest payable and other liabilities
| |
|
19,421
| |
|
| |
|
| |
|
16,485
| |
|
| |
|
| |
|
15,265
| |
|
| |
|
|
Total average liabilities
| |
|
1,758,247
| |
|
| |
|
| |
|
1,710,859
| |
|
| |
|
| |
|
1,686,984
| |
|
| |
|
|
Total average stockholders’ equity
| |
|
218,632
| |
|
| |
|
| |
|
215,420
| |
|
| |
|
| |
|
196,403
| |
|
| |
|
|
Total average liabilities and stockholders’ equity
| |
$
|
1,976,879
| |
|
| |
|
| |
$
|
1,926,279
| |
|
| |
|
| |
$
|
1,883,387
| |
|
| |
|
|
Net interest income and net interest margin
| |
|
| |
$
|
19,366
| |
4.12
|
%
| |
|
| |
$
|
17,006
| |
3.75
|
%
| |
|
| |
$
|
16,847
| |
3.75
|
%
|
(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 June 30, 2026 (www.veribanc.com) and (www.bauerfinancial.com). For additional information, please visit thatsmybank.com or call (707) 678-7742. Member FDIC. Equal Housing Lender.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. The methodology for determining these non-GAAP measures may differ among companies. This press release includes the following non-GAAP measures: Total tangible common shareholders’ equity and tangible common equity ratio. Given that the use of these non-GAAP financial measures is prevalent among banking regulators, investors, and analysts, we disclose them in addition to the related GAAP measures of total shareholders’ equity and return on average equity. The reconciliation of these non-GAAP measurements to the GAAP measurements is presented in the above table for and as of the periods presented.
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, strategic focus and positioning the Company for future growth, and the expected costs and potential benefits of the Company's systems upgrade project, 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. 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/20261029308392/en/
Contacts:
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
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