First Northern Community Bancorp Reports Third Quarter 2026 Net Income of $6.2 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 $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.