EX-99.1 2 exhibit99_1.htm FIRST NORTHERN COMMUNITY BANCORP EARNINGS RELEASE DATED JULY 29, 2025
EXHIBIT 99.1

              


First Northern Community Bancorp Reports Second Quarter 2025 Net Income of $5.5 Million
For immediate release


Dixon, Calif., July 29, 2025 — First Northern Community Bancorp (the “Company”, OTCQX: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $9.1 million, or $0.58 per diluted share, for the six months ended June 30, 2025, up 5.0% compared to net income of $8.7 million, or $0.54 per diluted share, for the six months ended June 30, 2024.

Net income for the quarter ended June 30, 2025, was $5.5 million, or $0.35 per diluted share, up 23.6% compared to net income of $4.4 million, or $0.27 per diluted share, for the quarter ended June 30, 2024.
Total assets as of June 30, 2025, were $1.87 billion, a decrease of $16.0 million, or 0.9%, compared to June 30, 2024. Total net loans (including loans held-for-sale) as of June 30, 2025, were $1.06 billion, an increase of $14.1 million, or 1.3%, compared to total net loans (including loans held-for-sale) of $1.05 billion as of June 30, 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, agricultural, and residential mortgage loans. Total deposits as of June 30, 2025, were $1.66 billion, a decrease of $43.8 million, or 2.6%, compared to June 30, 2024.
The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of June 30, 2025.
Commenting on the Company’s second quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “We are pleased to report strong second quarter results, with net income increasing by 23.6% compared to the same quarter last year. Our net margin expanded to 3.85%, an increase of 19 basis points from 3.66%, driving a $1.0 million, or 6.1%, increase in net interest income when compared to the year prior. This improvement was due to higher yields on our loan and securities portfolios, along with disciplined deposit pricing that kept interest-bearing liability costs nearly flat during the quarter. We recorded no provision for credit losses in the quarter, due to the release of a $2.8 million specific reserve initially recorded during the first quarter of 2025. The release of specific provision was offset by an increase in pooled and unfunded reserves tied to loan growth and changes in economic forecasts”.
Commenting further, President & CEO Smith stated: “We remain committed to improving shareholder value. During the first two quarters of the year, we repurchased 215,883 shares for total consideration of $2.2 million. Shareholders’ equity improved from $187.8 million on March 31, 2025, to $194.9 million on June 30, 2025 - an increase of $7.1 million, or 3.8%, primarily driven by net income of $5.5 million and a $2.3 million improvement in accumulated other comprehensive loss for the quarter. As a result, book value per share increased $0.51 to $12.32 as of June 30, 2025, up 4.3% compared to March 31, 2025.”
SECOND QUARTER HIGHLIGHTS (UNAUDITED)

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

   
Three months ended
  
(in thousands, except per share and share data)
  
June 30,
2025
    
March 31,
2025
    
June 30,
2024
  
Return on average assets (“ROAA”) (annualized)
    
1.18
%
    
0.79
%
    
0.95
%
Return on average equity (“ROAE”) (annualized)
    
11.67
%
    
8.23
%
    
10.87
%
Pre-tax income
  
$
7,597
    
$
4,956
    
$
6,113
  
Net income
  
$
5,466
    
$
3,671
    
$
4,424
  
Net interest margin (annualized)
    
3.85
%
    
3.64
%
    
3.66
%
Cost of funds (annualized)
    
0.88
%
    
0.86
%
    
0.84
%
Efficiency ratio
    
58.91
%
    
66.62
%
    
58.98
%
Basic earnings per common share
  
$
0.35
    
$
0.23
    
$
0.28
  
Diluted earnings per common share
  
$
0.35
    
$
0.23
    
$
0.27
  
Weighted average basic common shares outstanding
    
15,606,764
      
15,650,176
      
15,949,825
  
Weighted average diluted common shares outstanding
    
15,811,754
      
15,879,822
      
16,149,929
  
Shares outstanding at end of period
    
15,818,328
      
15,897,929
      
16,178,149
  

Summary Results (Unaudited)

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

   
Three months ended
              
(in thousands)
  
June 30,
2025
    
March 31,
2025
    
$ Change
    
% Change
  
Selected operating data:
                        
   Net interest income
  
$
16,953
    
$
15,943
    
$
1,010
      
6.34
%
   Provision for credit losses
    
—
      
850
      
(850
)
    
(100.00
)%
   Non-interest income
    
1,537
      
1,453
      
84
      
5.78
%
   Non-interest expense
    
10,893
      
11,590
      
(697
)
    
(6.01
)%
   Pre-tax income
    
7,597
      
4,956
      
2,641
      
53.29
%
   Provision for income taxes
    
2,131
      
1,285
      
846
      
65.84
%
   Net income
  
$
5,466
    
$
3,671
    
$
1,795
      
48.90
%

   
Three months ended
              
(in thousands)
  
June 30,
2025
    
June 30,
2024
    
$ Change
    
% Change
  
Selected operating data:
                        
   Net interest income
  
$
16,953
    
$
15,978
    
$
975
      
6.10
%
   Provision for credit losses
    
—
      
1,050
      
(1,050
)
    
(100.00
)%
   Non-interest income
    
1,537
      
1,484
      
53
      
3.57
%
   Non-interest expense
    
10,893
      
10,299
      
594
      
5.77
%
   Pre-tax income
    
7,597
      
6,113
      
1,484
      
24.28
%
   Provision for income taxes
    
2,131
      
1,689
      
442
      
26.17
%
   Net income
  
$
5,466
    
$
4,424
    
$
1,042
      
23.55
%

Balance Sheet Summary (Unaudited)

(in thousands) 
  
June 30,
2025
    
December 31,
2024
    
$ Change
    
% Change
  
Selected financial condition data:
                        
   Total assets
  
$
1,871,990
    
$
1,891,722
    
$
(19,732
)
    
(1.04
)%
   Cash and cash equivalents
    
126,851
      
119,448
      
7,403
      
6.20
%
   Total loans, net (including loans held-for-sale)
    
1,063,458
      
1,046,852
      
16,606
      
1.59
%
   Total investments
    
593,550
      
633,853
      
(40,303
)
    
(6.36
)%
   Total liabilities
    
1,677,105
      
1,715,390
      
(38,285
)
    
(2.23
)%
   Total deposits
    
1,663,277
      
1,700,089
      
(36,812
)
    
(2.17
)%
   Total shareholders’ equity
    
194,885
      
176,332
      
18,553
      
10.52
%

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
  
 
  
June 30, 2025
          
March 31, 2025
          
June 30, 2024
  
(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
  
$
1,044,581
    
$
14,629
      
5.62
%
  
$
1,042,559
    
$
13,602
      
5.29
%
  
$
1,041,102
    
$
13,830
      
5.34
%
   Certificates of deposit
    
15,112
      
157
      
4.17
%
    
15,868
      
161
      
4.11
%
    
17,081
      
171
      
4.03
%
   Interest-bearing due from
      Banks
    
85,828
      
1,010
      
4.72
%
    
70,468
      
727
      
4.18
%
    
130,963
      
1,913
      
5.87
%
   Investment securities,
      Taxable
    
560,021
      
4,137
      
2.96
%
    
587,332
      
4,348
      
3.00
%
    
519,789
      
3,088
      
2.39
%
   Investment securities,
      non-taxable
    
49,497
      
391
      
3.17
%
    
50,403
      
393
      
3.16
%
    
38,055
      
261
      
2.76
%
   Other interest-earning
      assets
    
10,808
      
250
      
9.28
%
    
10,518
      
272
      
10.49
%
    
10,518
      
267
      
10.21
%
      Total average interest-
         earning assets
    
1,765,847
      
20,574
      
4.67
%
    
1,777,148
      
19,503
      
4.45
%
    
1,757,508
      
19,530
      
4.47
%
Non-interest-earning assets: 
                                                                        
   Cash and due from banks
    
30,777
                      
34,338
                      
39,630
                  
   Premises & equipment, net
    
7,866
                      
9,145
                      
9,642
                  
   Interest receivable and other assets
    
53,556
                      
52,755
                      
59,523
                  
Total average assets
  
$
1,858,046
                    
$
1,873,386
                    
$
1,866,303
                  
                                                                         
Liabilities and Stockholders’ Equity
                                                                        
Interest-bearing liabilities:
                                                                        
   Interest-bearing transaction
      deposits
  
$
383,761
      
693
      
0.72
%
  
$
385,953
    
$
691
      
0.73
%
  
$
371,657
      
622
      
0.67
%
   Savings and MMDA’s
    
447,276
      
1,602
      
1.44
%
    
451,198
      
1,550
      
1.39
%
    
425,601
      
1,272
      
1.20
%
   Time, $250,000 and under
    
88,024
      
889
      
4.05
%
    
99,503
      
973
      
3.97
%
    
123,303
      
1,356
      
4.42
%
   Time, over $250,000
    
51,942
      
362
      
2.80
%
    
44,028
      
346
      
3.19
%
    
34,605
      
302
      
3.51
%
   FHLB advances
    
6,593
      
75
      
4.56
%
    
—
      
—
      
—
      
—
      
—
      
—
  
      Total average interest-
         bearing liabilities
    
977,596
      
3,621
      
1.49
%
    
980,682
      
3,560
      
1.47
%
    
955,166
      
3,552
      
1.50
%
Non-interest-bearing
   liabilities:
                                                                        
   Non-interest-bearing
      demand deposits
    
679,144
                      
697,972
                      
732,153
                  
   Interest payable and
      other liabilities
    
13,505
                      
13,919
                      
15,737
                  
      Total average liabilities
    
1,670,245
                      
1,692,573
                      
1,703,056
                  
Total average stockholders’
   equity
    
187,801
                      
180,813
                      
163,247
                  
Total average liabilities and
   stockholders’ equity
  
$
1,858,046
                    
$
1,873,386
                    
$
1,866,303
                  
Net interest income and net
   interest margin
          
$
16,953
      
3.85
%
          
$
15,943
      
3.64
%
          
$
15,978
      
3.66
%

(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, 2024 (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 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. For further information regarding the Company, please read the Company’s reports filed with the SEC and available at www.sec.gov.


Contact:
Jeremiah Z. Smith
President & Chief Executive Officer
First Northern Community Bancorp
& First Northern Bank
P.O. Box 547
Dixon, California (707) 678-3041