First Northern Community Bancorp Reports First Quarter 2025 Net Income of $3.7 Million

First Northern Community Bancorp Reports First Quarter 2025 Net Income of $3.7 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 $3.7 million, or $0.23 per diluted share, for the three months ended March 31, 2025, down 14.2% compared to net income of $4.3 million, or $0.26 per diluted share, for the three months ended March 31, 2024. Total assets as of March 31, 2025, were $1.88 billion, a decrease of $11.4 million, or 0.6%, compared to March 31, 2024. Total net loans (including loans held-for-sale) as of March 31, 2025, were $1.04 billion, a decrease of $6.1 million, or 0.6%, compared to total net loans (including loans held-for-sale) of $1.05 billion as of March 31, 2024. The decrease in net loans was primarily driven by net reductions in commercial real estate and agricultural loans, which were partially offset by growth in commercial loans. Total deposits as of March 31, 2025, were $1.67 billion, a decrease of $34.1 million, or 2.0%, compared to March 31, 2024. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of March 31, 2025. Commenting on the Company’s first quarter financial results, First Northern Bank’s President & Chief Executive Officer, Jeremiah Z. Smith, stated, “First quarter results reported continued momentum in improving our net margin, which increased from 3.49% for the three months ended March 31, 2024, to 3.64% for the three months ended March 31, 2025, an improvement of 15 basis points, or 4.3%. This improvement was partially due to increased yields on our securities portfolio and disciplined pricing on our interest-bearing deposits, which, when combined with our high levels of non-interest-bearing deposits, continued to keep our cost of funds low. Our improvement in net margin was offset by an increase in loan loss provision due to a specific reserve of $2.8 million, which was recorded during the first quarter. This was partially offset by a decrease in total reserve required due to a decrease in calculated loss rates as of March 31, 2025. As a result, the Company recorded provision expense of $850,000 for the quarter compared to a release of provision of $300,000 for the same period last year.” Commenting further, President & CEO Smith stated: “We remain committed to improving shareholder value, with stockholders’ equity improving from $176.3 million on December 31, 2024, to $187.8 million on March 31, 2025 - an increase of $11.5 million, or 6.5% primarily due to net income of $3.7 million and a decrease in accumulated other comprehensive loss of $8.9 million. This growth in stockholders’ equity contributed to an increase in book value per share, which rose from $11.06 at the end of 2024 to $11.81 at the end of the first quarter of 2025 - an increase of $0.75, or 6.8%.” On March 25, 2025, the Company paid a 5% stock dividend to all shareholders of record as of February 28, 2025. Per share data in this press release has been adjusted for this stock dividend. FIRST 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) March 31, 2025 December 31, 2024 March 31, 2024 Return on average assets (“ROAA”) (annualized) 0.79 % 1.20 % 0.92 % Return on average equity (“ROAE”) (annualized) 8.23 % 12.96 % 10.69 % Pre-tax income $ 4,956 $ 8,135 $ 5,942 Net income $ 3,671 $ 5,846 $ 4,276 Net interest margin (annualized) 3.64 % 3.60 % 3.49 % Cost of funds (annualized) 0.86 % 0.86 % 0.76 % Efficiency ratio 66.62 % 57.34 % 66.55 % Basic earnings per common share $ 0.23 $ 0.37 $ 0.27 Diluted earnings per common share $ 0.23 $ 0.37 $ 0.26 Weighted average basic common shares outstanding 15,650,176 15,727,458 15,976,904 Weighted average diluted common shares outstanding 15,879,822 15,975,949 15,976,904 Shares outstanding at end of period 15,897,929 15,943,051 16,309,307 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, except per share data) March 31, 2025 December 31, 2024 $ Change % Change Selected operating data: Net interest income $ 15,943 $ 16,524 $ (581 ) (3.52 )% Provision for (reversal of) credit losses 850 (450 ) 1,300 (288.89 )% Non-interest income 1,453 1,490 (37 ) (2.48 )% Non-interest expense 11,590 10,329 1,261 12.21 % Pre-tax income 4,956 8,135 (3,179 ) (39.08 )% Provision for income taxes 1,285 2,289 (1,004 ) (43.86 )% Net income $ 3,671 $ 5,846 $ (2,175 ) (37.20 )% Three months ended (in thousands, except per share data) March 31, 2025 March 31, 2024 $ Change % Change Selected operating data: Net interest income $ 15,943 $ 15,362 $ 581 3.78 % Provision for (reversal of) credit losses 850 (300 ) 1,150 (383.33 )% Non-interest income 1,453 1,507 (54 ) (3.58 )% Non-interest expense 11,590 11,227 363 3.23 % Pre-tax income 4,956 5,942 (986 ) (16.59 )% Provision for income taxes 1,285 1,666 (381 ) (22.87 )% Net income $ 3,671 $ 4,276 $ (605 ) (14.15 )% Balance Sheet Summary (Unaudited) (in thousands) March 31, 2025 December 31, 2024 $ Change % Change Selected financial condition data: Total assets $ 1,875,700 $ 1,891,722 $ (16,022) (0.85)% Cash and cash equivalents 111,717 119,448 (7,731) (6.47)% Total loans, net (including loans held-for-sale) 1,041,210 1,046,852 (5,642) (0.54)% Total investments 637,168 633,853 3,315 0.52% Total liabilities 1,687,895 1,715,390 (27,495) (1.60)% Total deposits 1,674,807 1,700,089 (25,282) (1.49)% Total shareholders’ equity 187,805 176,332 11,473 6.51% 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 endedMarch 31, 2025December 31, 2024March 31, 2024YieldsYieldsYieldsInterestEarned/InterestEarned/InterestEarned/AverageIncome/RatesAverageIncome/RatesAverageIncome/RatesBalanceExpensePaidBalanceExpensePaidBalanceExpensePaidAssetsInterest-earning assets:Loans $ 1,042,559 $ 13,602 5.29 % $ 1,044,552 $ 13,769 5.23 % $ 1,047,358 $ 13,475 5.16 % Certificates of deposit 15,868 161 4.11 % 17,320 182 4.17 % 18,669 183 3.93 % Interest-bearing due from Banks 70,468 727 4.18 % 104,261 1,400 5.33 % 123,224 1,532 4.99 % Investment securities, Taxable 587,332 4,348 3.00 % 598,665 4,276 2.83 % 525,261 2,845 2.17 % Investment securities, non-taxable 50,403 393 3.16 % 51,392 391 3.03 % 37,975 252 2.66 % Other interest-earning assets 10,518 272 10.49 % 10,518 267 10.10 % 10,518 256 9.76 % Total average interest-earning assets 1,777,148 19,503 4.45 % 1,826,708 20,285 4.42 % 1,763,005 18,543 4.22 % Non-interest-earning assets:Cash and due from banks 34,338 38,617 36,100 Premises & equipment, net 9,145 9,336 9,852 Interest receivable and other assets 52,755 53,265 56,451 Total average assets $ 1,873,386 $ 1,927,926 $ 1,865,408 Liabilities and Stockholders’ EquityInterest-bearing liabilities:Interest-bearing transaction deposits $ 385,953 $ 691 0.73 % $ 377,274 $ 657 0.69 % $ 372,188 $ 511 0.55 % Savings and MMDA’s 451,198 1,550 1.39 % 452,828 1,569 1.38 % 430,611 1,195 1.11 % Time, $250,000 and under 99,503 973 3.97 % 110,293 1,352 4.88 % 115,881 1,211 4.19 % Time, over $250,000 44,028 346 3.19 % 42,018 183 1.73 % 26,556 264 3.99 % Total average interest- bearing liabilities 980,682 3,560 1.47 % 982,413 3,761 1.52 % 945,236 3,181 1.35 % Non-interest-bearing liabilities:Non-interest-bearing demand deposits 697,972 749,973 741,886 Interest payable and other liabilities 13,919 16,602 17,913 Total average liabilities 1,692,573 1,748,988 1,705,035 Total average stockholders’ equity 180,813 178,938 160,373 Total average liabilities and stockholders’ equity $ 1,873,386 $ 1,927,926 $ 1,865.408 Net interest income and net interest margin $ 15,943 3.64 % $ 16,524 3.60 % $ 15,362 3.49 % 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 December 31, 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. 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