First Northern Community Bancorp Reports $15.15 Million Net Income for Nine Months Ended September 30, 2025

First Northern Community Bancorp reported a net income of $15.15 million for the nine months ended September 30, 2025, reflecting a 6.8% increase from $14.19 million in the same period last year. For the third quarter alone, the company achieved a net income of $6.01 million, up 9.6% from $5.49 million in the prior year. Basic earnings per share rose to $0.97 for the nine months and $0.39 for the third quarter, compared to $0.89 and $0.35, respectively, in 2024. The bank's net interest income also increased, totaling $49.74 million for the nine months, a 4% rise from $47.84 million in 2024, while the net interest margin improved to 3.75%, up from 3.60% in the previous year.

The company's total assets reached $1.91 billion as of September 30, 2025, marking a 0.9% increase from $1.89 billion at the end of 2024. Total net loans, including loans held-for-sale, increased by 0.9% to $1.06 billion, while total investment securities decreased by 5.1% to $601.5 million. Total deposits fell by 0.8% to $1.69 billion, attributed to seasonal fluctuations and market conditions. The bank's loan-to-deposit ratio stood at 62.6%, up from 61.6% at the end of the previous year.

In terms of operational developments, First Northern Community Bancorp has seen a significant increase in its provision for credit losses, which rose to $850,000 for the nine months ended September 30, 2025, compared to $200,000 in the same period last year. This increase is attributed to a rise in loans receivable and negative trends in economic forecasts. The bank reported no provision for credit losses in the third quarter, contrasting with a reversal of $550,000 in the same quarter of 2024. The allowance for credit losses as a percentage of total loans remained stable at 1.47%.

Looking ahead, First Northern Community Bancorp anticipates continued growth in its loan portfolio, driven by strategic initiatives and market demand. The bank is focused on maintaining its asset quality and managing credit risk effectively, with a commitment to diversifying its loan portfolio. The management remains cautious about potential economic challenges and is prepared to adjust its strategies accordingly. The bank's capital ratios exceed regulatory requirements, positioning it well for future growth and stability.