First Northern Community Bancorp — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter ended September 30, 2026, was $6.2 million ($0.38 per diluted share), up 3.1% compared to $6.0 million ($0.36 per diluted share) in the same quarter of 2025.
• Net income for the nine months ended September 30, 2026, was $16.8 million ($1.02 per diluted share), up 11.1% compared to $15.2 million ($0.91 per diluted share) in the prior year period.
• Net interest income for the quarter was $19.366 million, an increase of 14.95% compared to $16.847 million in the third quarter of 2025.
• Net interest margin was 4.12% for the quarter, compared to 3.75% in the second quarter of 2026 and 3.75% in the third quarter of 2025.
• Non-interest income was $1.636 million, a decrease of 1.33% compared to $1.658 million in the prior year quarter.
• Non-interest expense was $12.706 million, an increase of 6.57% compared to $11.923 million in the prior year quarter.
• Provision for credit losses was $0 for the quarter, compared to $0 in the prior year quarter.
• Total assets were $1.99 billion as of September 30, 2026, an increase of 4.3% compared to September 30, 2025.
• Total net loans, including loans held-for-sale, were $1.13 billion, an increase of 7.4% compared to September 30, 2025.
• Total deposits were $1.76 billion, an increase of 4.4% compared to September 30, 2025.
• Return on average assets (annualized) was 1.24% for the quarter, compared to 1.27% in the prior year quarter.
• Return on average equity (annualized) was 11.25% for the quarter, compared to 12.15% in the prior year quarter.
• Efficiency ratio was 60.50% for the quarter, compared to 64.43% in the prior year quarter.
• Common equity tier 1 capital ratio was 17.3% as of September 30, 2026, compared to 17.4% in the prior year quarter.
• Tangible common equity ratio was 10.2% as of September 30, 2026, compared to 10.5% in the prior year quarter.

Business Segments and Product Lines:

• Loan growth was driven primarily by commercial loans, partially offset by net reductions in commercial real estate, agriculture, residential mortgage, and consumer loans.
• 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.
• 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.
• The company successfully resolved a longstanding nonaccrual lending relationship, reducing nonaccrual loans by $1.2 million (25.6%) during the quarter.
• Nonaccrual interest income recognized increased by $1.8 million compared to the same quarter last year, contributing to the rise in net interest income.

Management Commentary and Tone:

• President and CEO Jeremiah Smith described the quarter as having "strong momentum," highlighted by accelerating loan growth and solid deposit generation.
• Management noted that project-related investments for a major system upgrade contributed to a modest increase in non-interest expenses during the third quarter, with additional costs expected in the fourth quarter.
• Management expressed confidence in the company's long-term strategy, citing the Nasdaq listing and inclusion in the Russell 3000 Index as significant milestones.
• The tone emphasized building a "resilient, efficient and competitive bank" while delivering value to customers, communities, employees, and shareholders.

Other Key Points:

• On October 13, 2026, the company completed a major system upgrade, replacing its core banking platform to establish a modern technology foundation.
• The company remains "well capitalized," exceeding the 10% total risk-based capital ratio threshold as of September 30, 2026.
• The company serves Solano, Yolo, Sacramento, Placer, Colusa, and Glenn counties, as well as the west slope of El Dorado County, operating 14 branch locations.
• First Northern Bank holds ratings as a Veribanc "Green-3 Star Blue Ribbon" Bank and a "5-Star Superior" Bank by Bauer Financial.