First Northern Community Bancorp Reports 60.9% Increase in Net Income for Q1 2026

First Northern Community Bancorp reported a significant increase in financial performance for the first quarter of 2026, with net income rising to $5.9 million, a 60.9% increase from $3.7 million in the same period last year. This growth translated to diluted earnings per share of $0.36, up from $0.22 in the prior year. The bank's net interest income also saw a 7.9% increase, reaching $17.2 million, while the net interest margin improved to 3.83%, compared to 3.64% a year earlier. The provision for credit losses decreased significantly to $300,000, down 64.7% from $850,000 in the previous year, reflecting improved asset quality.

Total assets for First Northern Community Bancorp increased to $1.92 billion as of March 31, 2026, up 0.7% from $1.91 billion at the end of 2025. The bank's loan portfolio also grew, with net loans rising to $1.06 billion, a 1.3% increase from the previous quarter. Investment securities increased by 1.0% to $623.3 million, while total deposits rose to $1.69 billion, reflecting a 0.9% increase. The bank's loan-to-deposit ratio stood at 62.8%, slightly up from 62.6% at the end of 2025.

Operationally, First Northern Community Bancorp has focused on enhancing its service offerings, which contributed to a 19.8% increase in non-interest income, totaling $1.74 million for the quarter. This growth was primarily driven by investment and brokerage services income, bolstered by the acquisition of Beacon Wealth in late 2025. The bank's total non-interest expenses decreased by 4.8% to $11.03 million, attributed to lower occupancy and equipment costs, despite increases in salaries and employee benefits.

The bank's asset quality showed improvement, with non-accrual loans decreasing to $4.92 million from $6.03 million at the end of 2025. The allowance for credit losses was maintained at 1.37% of total loans, reflecting management's confidence in the quality of the loan portfolio. The bank's capital ratios also exceeded regulatory requirements, with a common equity tier 1 ratio of 17.8%, well above the 6.5% minimum requirement for well-capitalized institutions.

Looking ahead, First Northern Community Bancorp remains optimistic about its growth trajectory, focusing on expanding its loan portfolio and enhancing customer service. The bank is well-positioned to navigate potential economic challenges, with a strong capital base and a commitment to maintaining asset quality. Management anticipates continued growth in both deposits and loans, supported by favorable market conditions and strategic initiatives.