First Northern Community Bancorp reports net income of $14.2 million at the end of 2021

DIXON, Calif.–(BUSINESS WIRE)–First of all Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company of First Northern Bank (“First Northern” or the “Bank”), today announced net income of $14.2 million for the fiscal 2021, or $1.00 per diluted share, up 16.7% compared to net earnings of $12.2 million, or $0.85 per diluted share, for the fiscal year ended December 31, 2020. Net earnings for the three months ended December 31, 2021 totaled $3.2 million, or $0.23 per diluted share, compared to net earnings of $3.4 million, or $0.23 per diluted share , for the quarter ended December 31, 2020.

Total assets as of December 31, 2021 were $1.90 billion, an increase of $243.7 million, or 14.7%, from December 31, 2020. Total deposits as of December 31, 2021 were $1.73 billion, an increase of $250.1 million, or 16.9%. , as of December 31, 2020. Total net lending (including loans held for sale and loans totaling $37.3 million made under the Paycheck Protection Program (PPP) of SBA) as of December 31, 2021 was $853.8 million, a decrease of $31.2 million. , or 3.5%, of total net lending (including loans held for sale and loans totaling $155.0 million under the SBA PPP) of $885.0 million as of December 31, 2020. The decrease in net loans is mainly due to repayments and forgiveness of loans granted under the SBA PPP. Excluding these PPP loans, net loan growth for the year ended 2021 was $86.5 million, or 11.9%, compared to the same period in 2020.1 The Company continued to be “well capitalized” according to regulatory definitions, exceeding the threshold of 10% of the capital ratio based on total risk as of December 31, 2021.

Commenting on the company’s financial results, President and CEO Louise Walker said, “We are pleased to report that First Northern Community Bancorp delivered another year of strong financial performance for 2021. We posted growth at double-digit year-over-year net profit, total deposits, total loans (excluding PPPs), and total assets. While total net lending declined due to repayments and loan forgiveness made under the SBA’s Paycheck Protection Program, First Northern saw increases in commercial, agricultural and residential real estate loans. Other bright spots for 2021 include improved credit quality and growth in non-interest revenue, including service fee revenue and debit card revenue, which was partially offset by lower gains on loans held for sale, compared to the year ended 2020.”

There was no loan loss provision for the three months ended December 31, 2021, compared to a loan loss provision of $800,000 for the same period in 2020. The reversal of loan loss provision totaled 1 $500,000 for the year ended December 31, 2021, compared to a provision for loan losses of $3,050,000 for the same period in 2020. The reversal of the provision for loan losses is mainly due to a decrease in reserves specific lending to a borrower coupled with an overall decline in qualitative factors resulting from improved economic conditions.

The Company also reported that at its regular meeting on January 27, 2022, the Board of Directors approved the payment of a 5% stock dividend payable March 25, 2022 to shareholders of record as of February 28, 2022. All amounts earnings per share have been adjusted to give retroactive effect to the stock dividend.

About First Northern Bank

First Northern Bank is an independent community bank specializing in relationship banking. The Bank, headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer, and Contra Costa counties, as well as the western edge of El Dorado County. Experts are available for small business, commercial, real estate and agribusiness loans, as well as mortgages. The bank is a preferred lender of the SBA. Non-FDIC insured investing 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. Home and small business loan officers are available by appointment at any of the Bank’s 11 branches. First Northern is classified as a Veribanc “Blue Ribbon” bank and a “5-Star Superior” bank by Bauer Financial for the results period ended September 30, 2021 (www.veribanc.com) and (www.bauerfinancial.com). The Bank can be found on the web at it’smabanque.comto 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 our assessment of economic conditions and their impact on our business, as well as the payment of a stock dividend and its timing, 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, business 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 business customers and clients, including including 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 challenges and uncertainties by governments, regulators and others, our forward-looking statements are subject to the risk that conditions may differ materially from what we currently expect. 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 may be amended from time to time. other, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. The financial information in this release should be read in conjunction with the consolidated financial statements and accompanying notes 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 forward-looking statements to reflect events or circumstances occurring after the date on which they are made. For additional information regarding the Company, please read the Company’s reports filed with the SEC and available at www.sec.gov.

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1 The presentation of net loan growth, excluding SBA PPP loans, is a non-GAAP financial measure. Management believes this non-GAAP financial measure is useful to investors given the short-term, one-time impact of the SBA PPP loans on the Company’s financial statements.

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