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

First Northern Community Bancorp Reports Second Quarter 2025 Net Income of $5.5 Million 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 March 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 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. 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