Here are a few brief analogies for First Northern Community Bancorp (FNRN):

• It's like a community-focused version of Bank of America, tailored for specific towns in Northern California.
• Think of it as a regional Wells Fargo, specifically serving individuals and businesses in Northern California communities.
• It's the local, hometown bank equivalent of a larger institution, providing comprehensive services in its Northern California service areas.

• Deposit Accounts: Offers various accounts including demand deposits, interest-bearing transaction deposits, savings, money market accounts, and time deposits.
• Commercial Loans: Provides financing for general business operations, commercial real estate, and agriculture.
• Residential Loans: Offers loans for purchasing, refinancing, and constructing residential properties.
• Consumer Loans: Supplies personal loans for individual financial needs.
• Credit Cards: Issues credit products for personal and business use.
• Investment & Brokerage Services: Assists clients with investment management, securities trading, and alternative investment products.
• Fiduciary Services: Provides trust and asset management services for individuals and businesses.
• Business Support Services: Offers equipment leasing, merchant card processing, payroll, and international banking services.
• General Banking Services: Provides customary services such as cashier's checks and safe deposit box rentals.

First Northern Community Bancorp (FNRN) provides commercial banking products and services to a diverse customer base within its operational area in California. Given the nature of a regional bank, its customer base is broad rather than concentrated in a few named major corporate customers. Therefore, the customers are best described in categories rather than by specific names.

The major customer categories served by First Northern Community Bancorp are:

1. Individuals: This category includes customers seeking a range of personal banking services such as demand deposits, interest-bearing transaction deposits, savings and money market accounts, time deposits, residential mortgages, residential construction loans, consumer loans, credit cards, investment and brokerage services, alternative investment products, and fiduciary services.

2. Small to Medium-Sized Businesses: This segment comprises businesses that utilize the bank's commercial banking products and services, including commercial loans, commercial real estate loans, equipment leasing, merchant card processing, payroll, and international banking services.

3. Agricultural Businesses: A specialized subset of businesses, particularly relevant in the bank's service area, engaged in agriculture and utilizing specific services such as agriculture loans.

Jeremiah Z. Smith, President & Chief Executive Officer

Jeremiah Z. Smith was named President & Chief Executive Officer of First Northern Community Bancorp and its subsidiary, First Northern Bank, effective January 1, 2023. He previously served as Senior Executive Vice President and Chief Operating Officer of First Northern from 2014 to 2022, and as Executive Vice President and Chief Financial Officer from 2010 to 2014. Mr. Smith joined the Bank in 2003. He holds a Bachelor of Science in Business Administration with a concentration in Finance from California State University, Sacramento, and is a graduate of the Pacific Coast Banking School.

Kevin M. Spink, Executive Vice President & Chief Financial Officer

Kevin M. Spink was appointed Executive Vice President/Chief Financial Officer of First Northern Bank in February 2018. He joined the Bank in 2016 as Senior Vice President/Corporate Controller. Prior to First Northern, Mr. Spink spent seven years with KPMG, LLP, gaining audit expertise in the banking and finance industries, and five years with Rabobank, where his last position was Senior Vice President/Chief Accounting Officer. He is a Certified Public Accountant (CPA) and a graduate of the Pacific Coast Banking School.

Brett Hamilton, Executive VP & Chief Credit Officer

Brett Hamilton serves as Executive Vice President & Chief Credit Officer.

Duane Swizer, Executive Vice President & Chief Information Officer

Duane Swizer holds the position of Executive Vice President & Chief Information Officer.

Libby Sanchez, Executive Vice President & Chief Human Resources Officer

Libby Sanchez joined First Northern Bank in 2019 and serves as Executive Vice President/Chief Human Resources Officer. She holds a B.S. in Business Administration-Marketing from San Jose State University and is certified as SHRM-SCP, SPHR, and PHRca. Ms. Sanchez serves on the board of the Society for the Blind.

The most significant risks include:

1. Credit Risk and Economic Downturns: As a community bank, First Northern Community Bancorp's profitability is highly dependent on the credit quality of its loan portfolio, which includes a substantial portion of commercial, commercial real estate, agriculture, and residential mortgage loans. An economic downturn, particularly in the California counties it serves, or weakness in the real estate market, could lead to increased loan defaults and losses, materially impacting its financial condition and results of operations. The bank's dependence on real estate lending increases its risk of losses.
2. Interest Rate Risk and Funding Costs: Fluctuations in interest rates can significantly affect the bank's net interest margin and overall profitability. Recent reports indicate a decline in loan yields and a decrease in average non-interest-bearing deposits, which could increase funding costs if the mix shifts towards interest-bearing accounts. Upward pressure on interest rates due to broader economic factors, such as government debt and fiscal policies, could also adversely affect the bank's investment securities portfolio and the general level of business activity.
3. Competition and Regulatory Environment: First Northern Community Bancorp operates in a competitive banking landscape and is subject to extensive supervision by federal and state regulators. Changes in government monetary and fiscal policies, evolving privacy and consumer protection rules, and intense industry competition can impact the bank's earnings and growth, requiring continuous adaptation and investment in compliance and services.

The clear emerging threats to First Northern Community Bancorp (FNRN) primarily arise from the rapid growth of **digital-first banks and specialized financial technology (fintech) companies**. These competitors offer banking products and services (such as demand deposits, interest-bearing accounts, various loans, and payment processing) through online and mobile platforms, often with lower overheads, more competitive rates, and superior digital user experiences. This trend directly challenges FNRN's traditional branch-based model and its reliance on a physical footprint, allowing customers, including individuals and small to medium-sized businesses, to access comprehensive banking services without the need for physical branches, thereby eroding FNRN's market share and competitive advantage in its operating regions.

Here are the expected drivers of future revenue growth for First Northern Community Bancorp (FNRN) over the next 2-3 years:

1. Commercial Loan Growth: First Northern Community Bancorp anticipates continued revenue growth through an increase in its commercial loan portfolio. The company's net interest income in the first quarter of 2026 was notably driven by overall loan growth and improved yields on interest-earning assets, with a specific increase in commercial loans contributing to this trend.
2. Expansion of Non-Interest Income through Wealth Management: Growth in non-interest income, particularly from investment and brokerage services, is expected to be a significant driver. This is primarily fueled by client acquisition initiatives, such as the Beacon Wealth client acquisition completed in the fourth quarter of 2025, which led to a substantial rise in investment and brokerage income in the first quarter of 2026.
3. Net Interest Margin Expansion: The company's ability to expand its net interest margin (NIM) will contribute to future revenue growth. In Q1 2026, the net interest margin expanded to 3.83%, an increase from the prior year, attributed to loan growth and effective management of funding costs. Sustaining or further expanding this margin will directly enhance interest income.
4. Enhanced Digital Banking and Technology Modernization: Strategic investments in technology modernization and improvements to the client experience are aimed at driving future growth. Initiatives for 2026 include modernizing the core banking platform and redesigning online banking and mobile applications to provide a more intuitive digital experience. These enhancements are expected to attract and retain clients, supporting thoughtful growth through improved access and service delivery.

Share Repurchases

• A stock repurchase program was authorized on March 30, 2026, allowing for repurchases of up to 984,579 shares, or approximately $15.6 million, effective from May 1, 2026, to April 30, 2028.
• A previous stock repurchase program was announced on June 2, 2021, authorizing repurchases of up to 547,203 shares, or approximately $6.2 million, effective from June 15, 2021, to June 14, 2023.

Share Issuance

• A 5% stock dividend was declared on January 22, 2026, and paid on March 25, 2026.
• A 5% stock dividend was also declared on January 23, 2025.
• An equity grant of 2,500 shares of common stock was awarded to Executive Vice President and Chief Commercial Banking Officer Charles Cochran.

Outbound Investments

• First Northern Bank acquired Beacon Wealth Strategies in late 2025, expanding its investment and brokerage services.

Capital Expenditures

• The company focuses on disciplined capital management, maintaining a well-capitalized status with robust capital ratios.
• Capital management has focused on maintaining a low cost of funds, optimizing funding sources, and effectively managing interest rate fluctuations.