**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D.C. 20549**

**FORM      10-Q**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the Quarterly Period Ended September 30, 2005**

**Commission      File Number 000-30707**

**First      Northern Community Bancorp**

| **California**                                                                |   | **68-0450397**                                         |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification Number) |

| **195                N. First St., Dixon, CA**                               |
|------------------------------------------------------------------------------|
| **(Address                of principal executive offices)**                  |
|                                                                         |
| **95620**                                                                    |
| **(Zip                Code)**                                                |
|                                                                         |
| **707-678-3041**                                                             |
| **(Registrant’s                telephone number including area code)** |
|                                                                         |

|  **Yes                [X]** |   **No                [  ]** |
|----------------------------------|---------------------------------------------|

** **

|  **Yes                [X]** |  **No                [                 ]** |
|----------------------------------|------------------------------------------------------|

** **

|  **Yes                [  ]** |  **No                [X]** |
|---------------------------------------------|---------------------------------|

----

|                    |                                 |                                                                                                                            | **Page** |
|-------------------------|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|----------|
| PART                I:  | FINANCIAL                INFORMATION |                                                                                                                            |
|                    |                            |                                                                                                                            |     |
| Item                1   |                            | Financial Statements                                                                                                       |     |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Unaudited                Condensed Consolidated Balance Sheets                                                                  | 3        |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Unaudited                Condensed Consolidated Statements of Income                                                            | 4        |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Unaudited                Condensed Consolidated Statement of Stockholders’ Equity and Comprehensive                Income | 5        |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Unaudited                Condensed Consolidated Statements of Cash Flows                                                        | 6        |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Notes                to Unaudited Condensed Consolidated Financial Statements                                                   | 7        |
|                    |                                 |                                                                                                                            |     |
| Item                2   |                            | Management’s                Discussion and Analysis of Financial Condition and Results of Operations                      | 12       |
|                    |                                 |                                                                                                                            |     |
| Item                3   |                            | Quantitative                and Qualitative Disclosures About Market Risk                                                       | 21       |
|                    |                                 |                                                                                                                            |     |
| Item                4   |                            | Controls                and Procedures                                                                                          | 21       |
|                    |                                 |                                                                                                                            |     |
| PART                II: | OTHER                INFORMATION     |                                                                                                                            |
|                    |                                 |                                                                                                                            |     |
| Item                2   |                            | Unregistered                Sales of Equity Securities and Use of Proceeds                                                      | 22       |
|                    |                                 |                                                                                                                            |     |
| Item                6   |                            | Exhibits                                                                                                                        | 23       |
|                    |                                 |                                                                                                                            |     |
|                    |                            | Signatures                                                                                                                      | 23       |
|                    |                                 |                                                                                                                            |     |

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1.**

**FINANCIAL      STATEMENTS**

***UNAUDITED      CONDENSED CONSOLIDATED BALANCE SHEETS***

|                                                                                                                                                                        |   |                              |          |                             |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------------|----------------------------------|--------|
|                                                                                                                                                                        |   | (UNAUDITED)                       |          |                             |   |
|                                                                                                                                                                        |   | September                30, 2005 |          | December                31, 2004 |   |
| ASSETS                                                                                                                                                                      |   |                              |          |                             |   |   |   |
| Cash                and due from banks                                                                                                                                      |   | $                                 | 30,379        |                             | $      | 25,399 |   |
| Federal                funds sold                                                                                                                                           |   |                              | 90,250        |                             |   | 91,305 |   |
| Investment                securities - available for sale                                                                                                                   |   |                              | 46,802        |                             |   | 55,154 |   |
| Loans,                net of allowance for loan losses of$7,948                at September 30, 2005 and $7,445 at December 31, 2004                                        |   |                              |  445,600 |                             |   |  428,872 |   |
| Loans                held-for-sale                                                                                                                                          |   |                              | 7,087         |                             |   |  3,719 |   |
| Premises                and equipment, net                                                                                                                                  |   |                              | 8,539         |                             |   | 7,435 |   |
| Other                real estate owned                                                                                                                                      |   |                              | 1,851         |                             |   |  — |   |
| Accrued                interest receivable and other assets                                                                                                                 |   |                              | 19,160        |                             |   |  16,789 |   |
| TOTAL                ASSETS                                                                                                                                                 |   | $                                 | 649,668       |                             | $      | 628,673 |   |
|                                                                                                                                                                        |   |                              |          |                             |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                                         |   |                              |          |                             |   |   |   |
| Liabilities                                                                                                                                                                 |   |                              |          |                             |   |   |   |
| Deposits                                                                                                                                                                    |   |                              |          |                             |   |   |   |
| Demand                                                                                                                                                                      |   | $                                 | 189,705       |                             | $      | 169,266 |   |
| Interest-bearing                transaction deposits                                                                                                                        |   |                              | 83,221        |                             |   | 65,008 |   |
| Savings                & MMDA's                                                                                                                                         |   |                              | 185,204       |                             |   | 193,658 |   |
| Time,                under $100,000                                                                                                                                         |   |                              | 53,810        |                             |   | 57,468 |   |
| Time,                $100,000 and over                                                                                                                                      |   |                              |  62,137  |                             |   |  71,786 |   |
| Total                deposits                                                                                                                                               |   |                              | 574,077       |                             |   | 557,186 |   |
| FHLB                advance and other borrowings                                                                                                                            |   |                              | 14,623        |                             |   | 15,456 |   |
| Accrued                interest payable and other liabilities                                                                                                               |   |                              | 5,901         |                             |   | 4,130 |   |
| TOTAL                LIABILITIES                                                                                                                                            |   |                              | 594,601       |                             |   | 576,772 |   |
|                                                                                                                                                                        |   |                              |          |                             |   |   |   |
|                                                                                                                                                                        |   |                              |          |                             |   |   |   |
| Stockholders'                equity                                                                                                                                         |   |                              |          |                             |   |   |   |
| Common                stock, no par value; 16,000,000 shares authorized;                                                                                                    |   |                              |          |                             |   |   |   |
| 7,554,462                shares issued and outstanding at September 30, 2005 and 7,202,334                shares                issued and outstanding at December 31, 2004 |   |                              | 36,461        |                             |   | 32,848 |   |
| Additional                paid-in capital                                                                                                                                   |   |                              | 977           |                             |   | 977 |   |
| Retained                earnings                                                                                                                                            |   |                              | 17,350        |                             |   | 17,091 |   |
| Accumulated                other comprehensive income                                                                                                                       |   |                              | 279           |                             |   | 985 |   |
| TOTAL                STOCKHOLDERS' EQUITY                                                                                                                                   |   |                              | 55,067        |                             |   | 51,901 |   |
|                                                                                                                                                                        |   |                              |          |                             |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                   |   | $                                 | 649,668       |                             | $      | 628,673 |   |

----

***UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF INCOME***

|                                                                                                                                                             |   | Three                months       |   | Three                months       |   | Nine                months        |   | Nine                months        |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|---------|
|                                                                                                                                                             |   | ended                             |   | ended                             |   | ended                             |   | ended                             |    |
|                                                                                                                                                             |   | September                30, 2005 |   | September                30, 2004 |   | September                30, 2005 |   | September                30, 2004 |    |
| Interest Income                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|      Loans                                                                                                                              |   | $                                 | 9,331  |                              | $      | 7,260                             |   | $                                 | 26,248  |   | $ | 20,312 |   |
|      Federal funds sold                                                                                                       |   |                              | 671    |                              |   | 236                               |   |                              | 1,602   |   |   | 541 |   |
|      Investment securities                                                                                                         |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|           Taxable                                                                                              |   |                              | 452    |                              |   | 545                               |   |                              | 1,489   |   |   | 1,639 |   |
|           Non-taxable                                                                                          |   |                              | 136    |                              |   | 153                               |   |                              | 427     |   |   | 464 |   |
|                Total interest income                                        |   |                              | 10,590 |                              |   | 8,194                             |   |                              | 29,766  |   |   | 22,956 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
| Interest Expense                                                                                                                                            |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|      Deposits                                                                                                                           |   |                              | 1,445  |                              |   | 759                               |   |                              | 3,556   |   |   | 2,201 |   |
|      Other borrowings                                                                                                              |   |                              | 123    |                              |   | 124                               |   |                              | 371     |   |   | 316 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|                Total interest expense                                       |   |                              | 1,568  |                              |   | 883                               |   |                              | 3,927   |   |   | 2,517 |   |
|                Net interest income                                          |   |                              | 9,022  |                              |   | 7,311                             |   |                              | 25,839  |   |   | 20,439 |   |
| (Credit) provision for loan losses                                                                                                           |   |                              | (69    | )                                 |   | —                           |   |                              | — |   |   | 207 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|                Net interest income after (credit)                 |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|                     provision for loan losses |   |                              | 9,091  |                              |   | 7,311                             |   |                              | 25,839  |   |   | 20,232 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
| Other operating income                                                                                                                                 |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|      Service charges on deposit accounts                                                                            |   |                              | 618    |                              |   | 664                               |   |                              | 1,788   |   |   | 1,591 |   |
|      Gains on available                for sale securities                                                                    |   |                              | 15     |                              |   | 3                                 |   |                              | 15      |   |   | 3 |   |
|      Gains on other                real estate owned                                                                          |   |                              | 27     |                              |   | 28                                |   |                              | 27      |   |   | 28 |   |
|      Gains on sales of loans                                                                                        |   |                              | 147    |                              |   | 105                               |   |                              | 313     |   |   | 382 |   |
|      Investment and brokerage services income                                                                       |   |                              | 45     |                              |   | 63                                |   |                              | 210     |   |   | 250 |   |
|      ATM fees                                                                                                                      |   |                              | 80     |                              |   | 79                                |   |                              | 195     |   |   | 220 |   |
|      Mortgage brokerage income                                                                                                |   |                              | 142    |                              |   | 145                               |   |                              | 325     |   |   | 353 |   |
|      Loan servicing income                                                                                                    |   |                              | 156    |                              |   | 76                                |   |                              | 343     |   |   | 302 |   |
|      Other income                                                                                                                  |   |                              | 276    |                              |   | 257                               |   |                              | 854     |   |   | 741 |   |
|                Total other operating income                            |   |                              | 1,506  |                              |   | 1,420                             |   |                              | 4,070   |   |   | 3,870 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
| Other operating expenses                                                                                                                               |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|      Salaries and employee benefits                                                                                      |   |                              | 4,132  |                              |   | 3,653                             |   |                              | 11,961  |   |   | 9,904 |   |
|      Occupancy and equipment                                                                                                  |   |                              | 826    |                              |   | 788                               |   |                              | 2,387   |   |   | 2,253 |   |
|      Data processing                                                                                                               |   |                              | 308    |                              |   | 297                               |   |                              | 892     |   |   | 816 |   |
|      Stationery and supplies                                                                                                  |   |                              | 106    |                              |   | 166                               |   |                              | 360     |   |   | 391 |   |
|      Advertising                                                                                                                        |   |                              | 198    |                              |   | 108                               |   |                              | 491     |   |   | 285 |   |
|      Directors’ fees                                                                                                         |   |                              | 31     |                              |   | 30                                |   |                              | 88      |   |   | 87 |   |
| Other real                estate owned expense                                                                                                              |   |                              | 21     |                              |   | —                           |   |                              | 21      |   |   | — |   |
|      Other expense                                                                                                                 |   |                              | 1,138  |                              |   | 1,001                             |   |                              | 3,757   |   |   | 3,058 |   |
|                Total other operating expenses                          |   |                              | 6,760  |                              |   | 6,043                             |   |                              | 19,957  |   |   | 16,794 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|                Income before income tax expense                   |   |                              | 3,837  |                              |   | 2,688                             |   |                              | 9,952   |   |   | 7,308 |   |
| Provision for income tax expense                                                                                                             |   |                              | 1,419  |                              |   | 961                               |   |                              | 3,519   |   |   | 2,573 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
|                Net income                                                        |   | $                                 | 2,418  |                              | $      | 1,727                             |   | $                                 | 6,433   |   | $ | 4,735 |   |
|                                                                                                                                                             |   |                              |   |                              |   |                              |   |                              |    |   |   |   |   |
| Basic Income per share                                                                                                                       |   | $                                 | 0.32   |                              | $      | 0.23                              |   | $                                 | 0.85    |   | $ | 0.62 |   |
| Diluted Income per share                                                                                                                          |   | $                                 | 0.31   |                              | $      | 0.22                              |   | $                                 | 0.81    |   | $ | 0.60 |   |

----

***UNAUDITED      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE      INCOME***

|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|---------|--------|---------------|--------|------------|--------|----------|--------|---------------|--------|--------|--------|
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   | Accumulated   |   |   |   |
|                                                                                                                                  |   | Common |      |    |   |          |   | Additional |   |     |   | Other         |   |   |   |
|                                                                                                                                  |   | Stock  |      |    |   | Comprehensive |   | Paid-in    |   | Retained |   | Comprehensive |   |   |   |
| Description                                                                                                                           |   | Shares |      | Amounts |   | Income        |   | Capital    |   | Earnings |   | Income        |   | Total  |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2004                                                                                           |   |   | 7,202,334 |    | $      | 32,848        |   |       |   |     |   | 977           |   |   | 17,091 |   |   | 985 |   |   | 51,901 |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income:                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                             |   |   |      |    |   |          |   | $          | 6,433  |     |   |          |   |   | 6,433  |   |   |   |   |   | 6,433 |   |
| Other                comprehensive loss:                                                                                              |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding losses arising during the current period, net of tax effect                of                ($477) |   |   |      |    |   |          |   |       | (715   | )        |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Reclassification                adjustment due to gains realized, net of tax effect of $6                                             |   |   |      |    |   |          |   |       | 9      |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Total                other comprehensive loss, net of tax effect of ($471)                                                            |   |   |      |    |   |          |   |       | (706   | )        |   |          |   |   |   |   |   | (706 | ) |   | (706 | ) |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                   |   |   |      |    |   |          |   | $          | 5,727  |     |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| 6%                stock dividend                                                                                                      |   |   | 432,132   |    |   | 6,158         |   |       |   |     |   |          |   |   | (6,158 | ) |   |   |   |   |   |   |
| Cash                in lieu of fractional shares                                                                                      |   |   |      |    |   |          |   |       |   |     |   |          |   |   | (16    | ) |   |   |   |   | (16 | ) |
| Stock-based                compensation and related tax benefits                                                                      |   |   |      |    |   | 307           |   |       |   |     |   |          |   |   |   |   |   |   |   |   | 307 |   |
| Common                shares issued                                                                                                   |   |   | 56,868    |    |   | 96            |   |       |   |     |   |          |   |   |   |   |   |   |   |   | 96 |   |
| Stock                repurchase and retirement                                                                                        |   |   | (136,872  | )       |   | (2,948        | )      |       |   |     |   |          |   |   |   |   |   |   |   |   | (2,948 | ) |
|                                                                                                                                  |   |   |      |    |   |          |   |       |   |     |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2005                                                                                          |   |   | 7,554,462 |    | $      | 36,461        |   |       |   |     |   | 977           |   |   | 17,350 |   |   | 279 |   |   | 55,067 |   |

----

***UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS***

|                                                                                                                                                                                                                      |   | Nine                months Ended September 30, 2005 |    | Nine                months Ended September 30, 2004 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|-----------------------------------------------------|--------|
| **Operating                Activities**                                                                                                                                                                                   |   |                                                |    |                                                |   |   |   |
|           Net Income                                                                                                                                               |   | $                                                   | 6,433   |                                                | $      | 4,735 |   |
|           Adjustments to reconcile net income to net                                                                                      |   |                                                |    |                                                |   |   |   |
|             cash provided by operating activities:                                                                                        |   |                                                |    |                                                |   |   |   |
| Depreciation                                                                                                                                                                                                              |   |                                                | 760     |                                                |   | 758 |   |
| Provision for loan losses                                                                                                                                                                                  |   |                                                | — |                                                |   | 207 |   |
| Gain on available for sale securities                                                                                                                                                            |   |                                                | 15      |                                                |   | 3 |   |
| Gain                on sale of loans                                                                                                                                                                                      |   |                                                | (313    | )                                                   |   | (382 | ) |
| Gain on other                real estate owned                                                                                                                                                                  |   |                                                | 27      |                                                |   | 28 |   |
| Proceeds from sales of loans held-for-sale                                                                                                                                                       |   |                                                | 43,848  |                                                |   | 45,314 |   |
| Originations of loans held-for-sale                                                                                                                                                                        |   |                                                | (46,903 | )                                                   |   | (43,153 | ) |
| Increase in accrued interest receivable and other assets                                                                                                                               |   |                                                | (3,241  | )                                                   |   | (1,292 | ) |
| Increase (decrease) in accrued interest payable and other liabilities                                                                                                             |   |                                                | 1,771   |                                                |   | (54 | ) |
|                     Net cash provided by operating activities                                |   |                                                | 2,397   |                                                |   | 6,164 |   |
|                                                                                                                                                                                                                      |   |                                                |    |                                                |   |   |   |
| **Investing Activities**                                                                                                                                                                                             |   |                                                |    |                                                |   |   |   |
|           Net decrease (increase) in investment securities                                                                                     |   |                                                | 8,808   |                                                |   | (894 | ) |
|           Net increase in loans                                                                                                                          |   |                                                | (19,954 | )                                                   |   | (40,993 | ) |
|           Net increase in OREO                                                                                                                           |   |                                                | 1,348   |                                                |   | (28 | ) |
|           Purchases of premises and equipment, net                                                                                             |   |                                                | (1,864  | )                                                   |   | (395 | ) |
|                      Net cash used in investing activities                              |   |                                                | (11,662 | )                                                   |   | (42,310 | ) |
|                                                                                                                                                                                                                      |   |                                                |    |                                                |   |   |   |
| **Financing Activities**                                                                                                                                                                                             |   |                                                |    |                                                |   |   |   |
|           Net increase in deposits                                                                                                                       |   |                                                | 16,891  |                                                |   | 30,620 |   |
|           Net (decrease) increase in FHLB advances                                                                                             |   |                                                | (833    | )                                                   |   | 5,918 |   |
|           Cash dividends paid                                                                                                                                 |   |                                                | (16     | )                                                   |   | (12 | ) |
|           Stock options exercised                                                                                                                        |   |                                                | 96      |                                                |   | 225 |   |
|           Repurchase of stock                                                                                                                                 |   |                                                | (2,948  | )                                                   |   | (1,414 | ) |
|                     Net cash provided by financing activities                                |   |                                                | 13,190  |                                                |   | 35,337 |   |
|                                                                                                                                                                                                            |   |                                                |    |                                                |   |   |   |
|                     Net increase                (decrease) in cash and cash equivalents |   |                                                | 3,925   |                                                |   | (809 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                                       |   |                                                | 116,704 |                                                |   | 104,759 |   |
|                                                                                                                                                                                                                      |   |                                                |    |                                                |   |   |   |
| Cash and cash equivalents at end of period                                                                                                                                             |   | $                                                   | 120,629 |                                                | $      | 103,950 |   |
|                                                                                                                                                                                                                      |   |                                                |    |                                                |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                                               |   |                                                |    |                                                |   |   |   |
| Cash paid during the period for:                                                                                                                                                                 |   |                                                |    |                                                |   |   |   |
|                     Interest                                                                                          |   | $                                                   | 3,917   |                                                | $      | 2,527 |   |
|                     Income Taxes                                                                                 |   | $                                                   | 4,846   |                                                | $      | 2,987 |   |
| Supplemental disclosures of non-cash investing                and financing activities:                                                                                                               |   |                                                |    |                                                |   |   |   |
| Transfer                of loans held-to-maturity to OREO                                                                                                                                                                 |   | $                                                   | 3,226   |                                                | $      | — |   |
| Stock plan accruals                                                                                                                                                                                             |   | $                                                   | 307     |                                                | $      | 153 |   |
| Tax benefit for stock options                                                                                                                                                                         |   | $                                                   | — |                                                | $      | 145 |   |
| Stock dividend distributed                                                                                                                                                                                      |   | $                                                   | 6,158   |                                                | $      | 5,537 |   |

----

*NOTES      TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS*

| 1. | BASIS                OF PRESENTATION |
|----|--------------------------------------|

----

| 2. | ALLOWANCE                FOR LOAN LOSSES |
|----|------------------------------------------|

|                                        |   | Nine                months endedSeptember                30, |    | Year                endedDecember                31, |   |
|---------------------------------------------|--------|--------------------------------------------------------------|---------|------------------------------------------------------|--------|
|                                        |   | 2005                                                         |    | 2004                                                 |   | 2004 |   |
| Balance,                beginning of period |   | $                                                            | 7,445   |                                                 | $      | 7,006 |   | $ | 7,006 |   |
| Provision                for loan losses    |   |                                                         | — |                                                 |   | 207 |   |   | 207 |   |
| Loan                charge-offs             |   |                                                         | (201    | )                                                    |   | (349 | ) |   | (382 | ) |
| Loan                recoveries              |   |                                                         | 704     |                                                 |   | 611 |   |   | 614 |   |
| Balance,                end of period       |   | $                                                            | 7,948   |                                                 | $      | 7,475 |   | $ | 7,445 |   |

| 3. | MORTGAGE                OPERATIONS |
|----|------------------------------------|

| (Dollars                in thousands)    |   | December                31, 2004 |   | Additions |   | Reductions |   | September                30, 2005 |   |
|------------------------------------------|--------|----------------------------------|--------|-----------|--------|------------|--------|-----------------------------------|--------|
| Mortgage                servicing rights |   | $                                | 787    |      | $      | 262        |   | $                                 | 127    |   | $ | 922 |   |

----

| 4. | OUTSTANDING                SHARES AND EARNINGS PER SHARE |
|----|----------------------------------------------------------|

|                                       |   | Three                months ended September 30, |      | Nine                months ended September 30, |   |
|--------------------------------------------|--------|-------------------------------------------------|-----------|------------------------------------------------|--------|
|                                       |   | 2005                                            |      | 2004                                           |   | 2005 |   | 2004 |   |
| Basic                earnings per share:   |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Net                income                  |   |  $                                         | 2,418     |                                           |   | 1,727 |   |   | 6,433 |   |   | 4,735 |   |
|                                       |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Weighted                average common     |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| shares                outstanding          |   |                                            | 7,563,987 |                                           |   | 7,636,040 |   |   | 7,611,961 |   |   | 7,661,132 |   |
| Basic                EPS                   |   |  $                                         | 0.32      |                                           |   | 0.23 |   |   | 0.85 |   |   | 0.62 |   |
|                                       |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share: |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Net                income                  |   |  $                                         | 2,418     |                                           |   | 1,727 |   |   | 6,433 |   |   | 4,735 |   |
|                                       |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Weighted                average common     |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| shares                outstanding          |   |                                            | 7,563,987 |                                           |   | 7,636,040 |   |   | 7,611,961 |   |   | 7,661,132 |   |
|                                       |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
| Effect                of dilutive options  |   |                                            | 362,140   |                                           |   | 188,034 |   |   | 316,097 |   |   | 189,342 |   |
|                                       |   |                                            |      |                                           |   |   |   |   |   |   |   |   |   |
|                                       |   |                                            | 7,926,127 |                                           |   | 7,824,074 |   |   | 7,928,058 |   |   | 7,850,474 |   |
| Diluted                EPS                 |   |  $                                         | 0.31      |                                           |   | 0.22 |   |   | 0.81 |   |   | 0.60 |   |

----

| 5. | STOCK                OPTION PLAN |
|----|----------------------------------|

* *

|                                                                                                                                                                                                    |   | Three                months endedSeptember                30, |   | Nine                months ended September                30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                                                                                    |   | 2005                                                          |   | 2004                                                          |   | 2005 |   | 2004 |   |
| Net                income, as reported                                                                                                                                                                  |   | $                                                             | 2,418  |                                                          | $      | 1,727 |   |   | 6,433 |   |   | 4,735 |   |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Add:                Stock-based employee compensation expense included in reported net                income,                net of related tax effects                                                 |   |                                                          | 72     |                                                          |   | 51 |   |   | 215 |   |   | 153 |   |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method for all awards, net of related tax                effects |   |                                                          | (90    | )                                                             |   | (91 | ) |   | (268 | ) |   | (273 | ) |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Pro                forma net income                                                                                                                                                                     |   | $                                                             | 2,400  |                                                          | $      | 1,687 |   | $ | 6,380 |   | $ | 4,615 |   |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Earnings                per share:                                                                                                                                                                      |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Basic-as                reported                                                                                                                                                                        |   | $                                                             | 0.32   |                                                          | $      | 0.23 |   | $ | 0.85 |   | $ | 0.62 |   |
| Basic-pro                forma                                                                                                                                                                          |   | $                                                             | 0.32   |                                                          | $      | 0.22 |   | $ | 0.84 |   | $ | 0.60 |   |
|                                                                                                                                                                                                    |   |                                                          |   |                                                          |   |   |   |   |   |   |   |   |   |
| Diluted-as                reported                                                                                                                                                                      |   | $                                                             | 0.31   |                                                          | $      | 0.22 |   | $ | 0.81 |   | $ | 0.60 |   |
| Diluted-pro                forma                                                                                                                                                                        |   | $                                                             | 0.30   |                                                          | $      | 0.22 |   | $ | 0.80 |   | $ | 0.59 |   |

----

| 6. | FIRST                NORTHERN BANK - EXECUTIVE SALARY CONTINUATION                PLAN |
|----|----------------------------------------------------------------------------------------|

|                                                    |   | Three                months endedSeptember                30, |   |
|---------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                    |   | 2005                                                          |   | 2004 |   |
| Components                of Net Periodic Benefit Cost: |   |                                                          |   |   |   |   |   |
| Service                Cost                             |   | $                                                             | 40,049 |   | $ | 38,971 |   |
| Interest                Cost                            |   |                                                          | 13,321 |   |   | 11,740 |   |
| Amortization                of prior service cost       |   |                                                          | 3,257  |   |   | 3,257 |   |
| Net                periodic benefit cost                |   | $                                                             | 56,627 |   | $ | 53,968 |   |

| 7. | FIRST                NORTHERN BANK - DIRECTORS’ RETIREMENT                PLAN |
|----|--------------------------------------------------------------------------------------|

|                                                    |   | Three                months endedSeptember                30, |   |
|---------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                    |   | 2005                                                          |   | 2004 |   |
| Components                of Net Periodic Benefit Cost: |   |                                                          |   |   |   |   |   |
| Service                Cost                             |   | $                                                             | 18,218 |   | $ | 17,683 |   |
| Interest                Cost                            |   |                                                          | 5,233  |   |   | 4,795 |   |
| Amortization                of net loss                 |   |                                                          | 1,295  |   |   | 752 |   |
| Net                periodic benefit cost                |   | $                                                             | 24,746 |   | $ | 23,230 |   |

----

**ITEM      2.**

**MANAGEMENT’S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATIONS**

**FORWARD-LOOKING      STATEMENTS**

**SUMMARY**

----

**CHANGES      IN FINANCIAL CONDITION**

----

**CHANGES      IN RESULTS OF OPERATIONS**

----

----

----

| (Dollars                in thousands)       |   | September                30, 2005 |    | December                31, 2004 |   |
|---------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
| Undisbursed                loan commitments |   | $                                 | 208,739 |                             | $      | 173,205 |   |
| Standby                letters of credit    |   |                              | 13,230  |                             |   | 9,378 |   |
|                                        |   | $                                 | 221,969 |                             | $      | 182,583 |   |

----

*See      *

----

|                                                                                                                                                            |   | Nine                months ended |    | Year                ended   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|-----------------------------|--------|
|                                                                                                                                                            |   | September                30,     |    | December                31, |   |
|                                                                                                                                                            |   | 2005                             |    | 2004                        |   | 2004 |   |
| Balance at Beginning of Period                                                                                                              |   | $                                | 7,445   |                        | $      | 7,006 |   | $ | 7,006 |   |
| Provision for Loan Losses                                                                                                                        |   |                             | — |                        |   | 207 |   |   | 207 |   |
| Loans Charged-Off:                                                                                                                                         |   |                             |    |                        |   |   |   |   |   |   |
|    Commercial                                                                                                                                    |   |                             | (91     | )                           |   | (121 | ) |   | (122 | ) |
|    Agriculture                                                                                                                                   |   |                             | — |                        |   | (214 | ) |   | (214 | ) |
|    Real Estate Mortgage                                                                                                                |   |                             | — |                        |   | — |   |   | — |   |
|    Real Estate Construction                                                                                                            |   |                             | — |                        |   | — |   |   | — |   |
|    Installment Loans to Individuals                                                                                               |   |                             | (110    | )                           |   | (14 | ) |   | (46 | ) |
|                                                                                                                                                            |   |                             |    |                        |   |   |   |   |   |   |
|         Total Charged-Off                                                                                          |   |                             | (201    | )                           |   | (349 | ) |   | (382 | ) |
| Recoveries:                                                                                                                                                     |   |                             |    |                        |   |   |   |   |   |   |
|    Commercial                                                                                                                                    |   |                             | — |                        |   | 199 |   |   | 199 |   |
|    Agriculture                                                                                                                                   |   |                             | 663     |                        |   | 398 |   |   | 399 |   |
|    Real Estate Mortgage                                                                                                                |   |                             | — |                        |   | — |   |   | — |   |
|    Real Estate Construction                                                                                                            |   |                             | — |                        |   | — |   |   | — |   |
|    Installment Loans to Individuals                                                                                               |   |                             | 41      |                        |   | 14 |   |   | 16 |   |
|                                                                                                                                                            |   |                             |    |                        |   |   |   |   |   |   |
|         Total Recoveries                                                                                           |   |                             | 704     |                        |   | 611 |   |   | 614 |   |
| Net Recoveries                                                                                                                                        |   |                             | 503     |                        |   | 262 |   |   | 232 |   |
| Balance at End of Period                                                                                                                    |   | $                                | 7,948   |                        | $      | 7,475 |   | $ | 7,445 |   |
| Ratio of Net Recoveries                                                                                                                     |   |                             |    |                        |   |   |   |   |   |   |
|    To Average Loans Outstanding During the Period                                                                  |   |                             | 0.11    | %                           |   | 0.07 | % |   | 0.06 | % |
| Allowance for Loan Losses                                                                                                                        |   |                             |    |                        |   |   |   |   |   |   |
|    To Total Loans                (excluding Loans                Held-for-Sale) at the end of the Period |   |                             | 1.75    | %                           |   | 1.79 | % |   | 1.71 | % |
|    To Non-performing Loans at the end of the Period                                                      |   |                             | 247.14  | %                           |   | 858.21 | % |   | 150.04 | % |

----

| (Dollars                in thousands)        |   | September                30, 2005 |   | December                31, 2004 |   |
|----------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
| Three                months or less          |   | $                                 | 25,221 |                             | $      | 37,713 |   |
| Over                three thru twelve months |   |                              | 33,956 |                             |   | 29,272 |   |
| Over                twelve months            |   |                              | 2,960  |                             |   | 4,801 |   |
| Total                                        |   | $                                 | 62,137 |                             | $      | 71,786 |   |

|                             |   | Actual  |   | Well                Capitalized Ratio |   | Minimum     |
|----------------------------------|--------|---------|--------|---------------------------------------|--------|-------------|
|                             |   | Capital |   | Ratio                                 |   | Requirement |   | Capital |
| Leverage                         |   | $       | 53,512 |                                  | 8.28   | %           |   | 5.0 | % |   | 4.0 | % |
| Tier                1 Risk-Based |   | $       | 53,512 |                                  | 10.26  | %           |   | 6.0 | % |   | 4.0 | % |
| Total                Risk-Based  |   | $       | 59,752 |                                  | 11.46  | %           |   | 10.0 | % |   | 8.0 | % |

|                                                                                          |   | Nine                months ended September 30, 2005 |   | Nine                months ended September 30, 2004 |   | Year                ended December 31, 2004 |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|-----------------------------------------------------|--------|---------------------------------------------|
| Annualized                return on average assets                                            |   | 1.35                                                | %      |                                                | 1.10   | %                                           |   | 1.14 | % |
|                                                                                          |   |                                                |   |                                                |   |                                        |   |   |   |
| Annualized                return on beginning core equity*                                    |   | 16.85                                               | %      |                                                | 14.00  | %                                           |   | 13.73 | % |
|                                                                                          |   |                                                |   |                                                |   |                                        |   |   |   |
| *                Core equity consisted of $50,916,000 at December 31, 2004.    |   |                                                |   |                                                |   |                                        |

----

* *

* *

**ITEM      3.**

**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM      4.  **

**CONTROLS      AND PROCEDURES**

----

**PART      II - OTHER INFORMATION**

**ITEM      2. **

**UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Repurchases      of Equity Securities**

|  Period                                    |   | (a)Total                number of shares purchased |   | (b)Average                price paid per share | (c)Total                Number of shares purchased as part of publicly announced plans or                programs |   | (d)Maximum                number of shares that may yet be purchased under the plans or                programs |   |
|-------------------------------------------------|--------|----------------------------------------------------|--------|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
| July                1 - July 31, 2005           |   |                                               | 38,190 |                                           | $                                                                                                                 | 23.26  |                                                                                                            |   | 38,190 |   |   | 57,968 |   |
| August                1- August 31, 2005        |   |                                               | 400    |                                           | $                                                                                                                 | 23.75  |                                                                                                            |   | 400 |   |   | 68,694 |   |
| September                1 - September 30, 2005 |   |                                               | 9,880  |                                           | $                                                                                                                 | 24.51  |                                                                                                            |   | 9,880 |   |   | 62,465 |   |
| Total                                           |   |                                               | 48,470 |                                           | $                                                                                                                 | 23.52  |                                                                                                            |   | 48,470 |   |   | 62,465 |   |

----

**ITEM      6. **

**EXHIBITS**

| **Exhibit** |                                                                                                                                                                                                                                              |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Number**  | **Exhibits**                                                                                                                                                                                                                                      |
|        |                                                                                                                                                                                                                                              |
| 3.1         | Amended                and Restated Bylaws of First Northern Community Bancorp (incorporated                by                reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated                September 15, 2005) |
| 31.1        | Certification                of the Company’s Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                              |
| 31.2        | Certification                of the Company’s Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                              |
| 32.1        | Certification                of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002                                 |
| 32.2        | Certification                of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350,                as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002                                 |

**SIGNATURES**

|   |                                   |   | FIRST                NORTHERN COMMUNITY BANCORP  |
|--------|----------------------------------------|--------|-------------------------------------------------------|
|   |                                   |   |                                                  |   |
|   |                                   |   |                                                  |   |
| Date   | November                9, 2005   |   | by                                                    | /s/                Louise A. Walker |
|   |                                   |   |                                                  |   |
|   |                                   |   |                                                  | Louise                A. Walker, Sr. Executive Vice President / Chief Financial                Officer |
|   |                                   |   |                                                  | (Principal                Financial Officer and Duly Authorized Officer) |
|   |                                   |   |                                                  |   |

----