NORTHERN CALIFORNIA, CA (MPG) – First Northern Community Bancorp reported net income of $10.6 million for the first six months of 2026, an increase of 16.4% over the same period last year, while second quarter earnings declined from a year earlier despite continued loan growth and higher non-interest income.
The company, parent of First Northern Bank, reported net income of $4.7 million, or 29 cents per diluted share, for the quarter ending June 30. That compares with $5.5 million, or 33 cents per diluted share, during the second quarter of 2025.
As of June 30, total assets reached $1.93 billion, up 2.9% from a year earlier. Total net loans, including loans held for sale, increased 2.7% to $1.09 billion, while deposits rose 1.7% to $1.69 billion.
According to the company, growth in commercial lending offset declines in commercial real estate, agricultural, residential mortgage and consumer loans.
President and Chief Executive Officer Jeremiah Smith said the quarter reflected continued progress across several areas of the bank’s operations.
“We are pleased with our second quarter performance, highlighted by strong loan growth, continued credit quality improvements, and disciplined balance sheet management,” Smith said.
Smith said net loans increased by $27.9 million during the quarter, representing an annualized growth rate of 10.5%. He also noted that non-accrual loans declined 7.1% to $4.6 million.
“Our net interest margin remained strong at 3.75%, and our cost of funds was well managed at 0.90%, reflecting the ongoing strength of our low-cost deposit franchise,” Smith said.
The company also credited its acquisition of Beacon Wealth in late 2025 with helping increase non-interest income. Investment and brokerage services income increased 141.3% from the second quarter of last year, contributing to a 14.7% increase in total non-interest income.
Smith said First Northern continues to invest in technology while managing expenses.
“We also remain focused on managing operating expenses while investing in the future of the Bank,” Smith said. “During the second quarter, our systems upgrade project accelerated, resulting in modest increases in staffing, data processing, and consulting expenses.”
He said the higher costs are expected to continue through the planned implementation later this year before improving efficiencies in 2027.
Smith also highlighted the company’s recent listing on The Nasdaq Capital Market and its addition to the Russell 3000 Index.
“Together, these achievements reflect the continued execution of our long-term strategy to create value for our shareholders while positioning the Company for future growth,” Smith said.
The company said it remained “well capitalized” under federal regulatory standards as of June 30, exceeding the required total risk-based capital ratio threshold.