First Northern Community Bancorp Reports $3.67 Million Net Income in Q1 2025

First Northern Community Bancorp reported a net income of $3.67 million for the first quarter of 2025, a decrease of 14.2% from $4.28 million in the same period last year. The diluted earnings per share also fell to $0.23, down from $0.26 in the prior year. The company's net interest income increased by 3.8% to $15.94 million, driven by a rise in net interest margin to 3.64%, compared to 3.49% a year earlier. The provision for credit losses was recorded at $850,000, contrasting with a reversal of $300,000 in the same quarter of 2024.

Total assets for First Northern Community Bancorp stood at $1.88 billion as of March 31, 2025, reflecting a slight decline of 0.9% from $1.89 billion at the end of 2024. The company’s total net loans, including loans held-for-sale, decreased by 0.5% to $1.04 billion, while total investment securities rose by 0.5% to $637.17 million. Total deposits also saw a decline, falling by 1.5% to $1.67 billion, attributed to seasonal fluctuations and market conditions.

In terms of operational metrics, the company reported a loan-to-deposit ratio of 62.2%, up from 61.6% at the end of 2024. The number of non-accrual loans increased to $13.85 million, up from $11.21 million, indicating a growing concern over asset quality. The allowance for credit losses was adjusted to $16.54 million, representing 1.56% of total loans, compared to 1.49% at the end of the previous year.

Strategically, First Northern Community Bancorp declared a 5% stock dividend on January 23, 2025, which was paid on March 25, 2025. The company continues to focus on maintaining adequate liquidity and capital, with a leverage ratio of 10.85% and a common equity tier 1 ratio of 16.09%, both exceeding regulatory requirements for well-capitalized institutions. Looking ahead, the company anticipates that economic conditions and competitive pressures will influence its loan demand and deposit balances throughout 2025.