5% Stock Dividend
Declared
First Northern Community Bancorp (the “Company”, OTCQB: FNRN),
holding company for First Northern Bank (“First Northern” or the
“Bank”), today reported 2022 annual net income of $15.9 million, or
$1.09 per diluted share, increases of 12% and 14.7%, respectively,
when compared to net income of $14.2 million, or $.95 per diluted
share, for 2021. Net income for the quarter ended December 31, 2022
totaled $4.7 million, or $.33 per diluted share, compared to net
income of $3.2 million, or $.22 per diluted share, for the quarter
ended December 31, 2021.
There was no provision for loan losses for each of the three
months ended December 31, 2022 and 2021. This was primarily due to
changes in loan demand during the fourth quarter of 2022 and 2021.
Provision for loan losses totaled $900,000 for the year ended
December 31, 2022, compared to a reversal of provision for loan
losses totaling $1,500,000 for the year ended December 31, 2021.
The year-to-date provision for loan loss was primarily due to loan
growth. The prior year-to-date reversal of provision for loan
losses was primarily due to a decrease in specific reserves on
loans to one borrower.
Total assets as of December 31, 2022 were $1.87 billion, a
decrease of $27.7 million, or 1.5%, compared to December 31, 2021.
Total deposits as of December 31, 2022 were $1.73 billion, a
decrease of $1.43 million, or 0.1%, compared to December 31, 2021.
Total net loans (including loans totaling $0.5 million made under
the SBA’s Paycheck Protection Program (PPP)) as of December 31,
2022 were $970.1 million, an increase of $116.4 million, or 13.6%,
compared to total net loans (including loans held-for-sale and
loans totaling $37.3 million made under the SBA’s PPP) of $853.8
million as of December 31, 2021. The increase in net loans was
primarily driven by originations of commercial real estate,
agriculture, and residential mortgage loans, which was partially
offset by payoffs, and the forgiveness and SBA reimbursement on
loans made under the SBA’s PPP.
Excluding PPP loans, net loan growth as of December 31, 2022 was
$153.2 million, or 18.8%, compared to December 31, 2021.1 The
Company continued to be “well capitalized” under regulatory
definitions, exceeding the 10% total risk-based capital ratio
threshold as of December 31, 2022.
Commenting on the Company’s financial results, First Northern’s
President & Chief Executive Officer Jeremiah Smith stated, “We
attribute our record-year performance to robust loan growth and an
increasing interest rate environment driving a continuing rise in
interest income over the course of the year. We reported record net
interest income of $54.7 million for the year when compared to
$46.3 million for the year prior, an improvement of $8.5 million or
18.2%. Net interest margin was 3.06% for the year ended 2022 which
was a 16.8% or 44 basis point improvement from the 2.62% reported a
year prior. This improvement drove our record net income of $15.9
million for the year ending December 31, 2022, up 12% over the
$14.2 million earned one year ago.
“While not included in the quarterly results, we’re very excited
to have welcomed the Orland, Willows and Colusa branches of
Columbia Bank into First Northern on January 21, 2023. These
branches are a perfect complement to our existing franchise and
will improve our growth prospects for years to come.”
The Company also reported that at their regular meeting on
January 26, 2023, the Board of Directors approved the payment of a
5% stock dividend payable March 24, 2023 to shareholders of record
as of February 28, 2023. All income per share amounts have been
adjusted to give retroactive effect to the stock dividend.
About First Northern Bank
First Northern Bank is an independent community bank that
specializes in relationship banking. The Bank, headquartered in
Solano County since 1910, serves Solano, Yolo, Sacramento, Placer,
and Contra Costa Counties, as well as the west slope of El Dorado
County. Experts are available in small-business, commercial, real
estate and agribusiness lending, as well as mortgage loans. The
Bank is an SBA Preferred Lender. Non-FDIC insured Investment and
Brokerage Services are available at every branch location,
including Dixon, Davis, West Sacramento, Fairfield, Vacaville,
Winters, Woodland, Sacramento, Roseville, Auburn, Rancho Cordova,
Colusa, Willows, and Orland. The Bank also has a commercial lending
office in Walnut Creek. Real estate mortgage and small-business
loan officers are available by appointment in any of the Bank’s 14
branches. First Northern is rated as a Veribanc “Blue Ribbon” Bank
and a “5-Star Superior” Bank by Bauer Financial for the earnings
period ended September 30, 2022 (www.veribanc.com) and
(www.bauerfinancial.com). The Bank can be found on the Web at
thatsmybank.com, on 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 anticipated
impact of the branch acquisitions and growth prospects, 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 extent and duration of the impact on public
health, the U.S. and California economies, financial markets and
consumer and corporate customers and clients, including economic
activity, employment levels and market liquidity, and on our
business, results of operation and financial condition, as well as
the various actions taken in response to the challenges and
uncertainties by governments, regulatory agencies and others, our
forward-looking statements are subject to the risk that conditions
will be substantially different than we are currently expecting.
More detailed information about 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 as it may be
amended from time to time, which identify important risk factors
that could cause actual results to differ materially from those
contained in the forward-looking statements. The financial
information contained in this release should be read in conjunction
with the consolidated financial statements and notes thereto
included in the Company’s most recent reports on Form 10-K and Form
10-Q, and any reports on Form 8-K. The Company undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances arising after the date on which they are
made. For further information regarding the Company, please read
the Company’s reports filed with the SEC and available at
www.sec.gov.
_________________________
1 The presentation of net loan growth, excluding loans under the
SBA’s PPP, is a non-GAAP financial measure. Management believes
that this non-GAAP financial measure is useful to investors in
light of the short-term and non-recurring impact of loans made
under the SBA’s PPP on the Company’s financial statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230127005456/en/
Jeremiah Z. Smith President & Chief Executive Officer First
Northern Community Bancorp & First Northern Bank P.O. Box 547
Dixon, California (707) 678-3041