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.

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