First Northern Community Bancorp Reports First Quarter 2021 Net Income of $ 3.2 Million, Up 18.6% Year-On-Year


DIXON, Calif .– (BUSINESS WIRE)–First Northern Community Bancorp (the “Company”, OTCQB: FNRN), a holding company of First Northern Bank (“First Northern” or the “Bank”), today reported net income of $ 3.2 million, or $ 0.23 per diluted share, for three months. ended March 31, 2021, up 18.6% from net income of $ 2.7 million, or $ 0.20 per diluted share, for the three months ended March 31, 2020.

Total assets as at March 31, 2021 were $ 1.78 billion, an increase of $ 438.8 million, or 32.7%, from March 31, 2020. Total deposits as at March 31 2021 was $ 1.61 billion, an increase of $ 425.0 million, or 36.0% from March 31, 2020. Total net lending (including loans held for sale) as at March 31, 2021 was $ 950.8 million, an increase of $ 186.1 million, or 24.3%, from March 31, 2020. The increase in Net lending is primarily due to loans under the SBA’s Paycheck Protection Program (PPP) totaling $ 202.6 million as of March 31, 2021 and $ 47.4 million in commercial real estate loans purchased during the first quarter of 2021. These increases were partially offset by a decrease in loans to agriculture and large residential construction by tie due to refunds and an overall drop in demand. The company was still “well capitalized” by regulatory definitions, exceeding the 10% risk-based capital ratio threshold as of March 31, 2021.

Commenting on the company’s financial results, President and CEO Louise Walker said, “We are proud to report another quarter of strong performance. In addition to the 18.6% increase in net income, non-interest income as at March 31, 2021 was $ 2.29 million, up 38.9%, or $ 641,000, compared to $ 1.65 million earned in the same period a year ago. The main contributors to this increase came from gains in mortgage lending and debit card revenues. Mortgage initiations for the three months ended March 31, 2021 totaled $ 29.6 million compared to $ 17.7 million in the first quarter of last year, an increase of 67.3%. A significant number of new customer relationships were established during PPP-Round 1, and the trend continued during PPP-Round 2 which began on January 15, 2021. We believe in the deepening of these new relationships, by Further growth in quality loans from our strong pipeline is expected to contribute to strong and sustainable long-term core earnings growth. ”

PPP-Round 2 resulted in a processing fee of approximately $ 4.8 million from the SBA, which is recorded as an adjustment to the actual yield over the expected term of the loan. Processing fees for unearned P3s totaled $ 5.9 million and $ 1.9 million as of March 31, 2021 and December 31, 2020, respectively. PPP processing fees totaling approximately $ 760,000 were recorded in interest income for the three-month period ended March 31, 2021.

The allowance for loan losses totaled $ 300,000 for the quarter ended March 31, 2021 compared to $ 650,000 for the same period in 2020. The decrease in the allowance for loan losses is mainly explained by the overall improvement in the economic situation, which was partially offset by an increase in specific reserves on doubtful loans.

On March 25, 2021, the Company paid a stock dividend of 5% to all shareholders of record on February 26, 2021.

About First Northern Bank

First Northern Bank is an independent community bank specializing in relationship banking. The Bank, based in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer and Contra Costa counties, as well as the western side of El Dorado County. Experts are available in small business, commercial, real estate and agri-food lending, as well as mortgage lending. The Bank is a preferred lender of the SBA. Non-FDIC-insured investment and brokerage services are available at all branches, including Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville, Auburn, and Rancho Cordova. The Bank also has a commercial loan office in Walnut Creek and a mortgage office in Sonoma. Mortgage and small business loan officers are available by appointment at any of the Bank’s 11 branches. First Northern is rated Veribanc “Blue Ribbon” Bank and “5-Star Superior” by Bauer Financial for the reporting period ended December 31, 2020 (www.veribanc.com) and (www.bauerfinancial.com). The Bank can be found on the web at thatsmybank.com, at Facebook and on LinkedIn.

Forward-looking statements

This press release and other public statements may include certain “forward-looking statements” about First Northern Community Bancorp and its subsidiaries (the “Company”). These forward-looking statements are based on management’s current expectations, including, but not limited to, statements about the company’s expectations regarding earnings, loan growth and new customer relationships resulting from the participation. from the Bank to PPP, and are subject to certain risks, uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. Given the many challenges and uncertainties resulting from the coronavirus pandemic, such as the magnitude and duration of the impact on public health, the U.S. and California economies, financial markets, and consumers and businesses, including the economic activity, employment levels and market liquidity, and on our business, results of operations and financial condition, as well as the various actions taken in response to the challenges and uncertainties of governments, regulators and Others, our forward-looking statements are subject to the risk that conditions will differ materially from what we currently expect. More detailed information on these risk factors is contained in the Company’s most recent reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, each subject to change from time to time. , which identify material risk factors that could cause actual results to differ materially from those contained in forward-looking statements. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and related notes included in the most recent reports of the Company on Form 10-K and Form 10-Q, and all reports on Form 8- K. The Company assumes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date on which they are made. For more information on the company, please read the company reports filed with the SEC and available at www.sec.gov.


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