First Northern Community Bancorp (the “Company”, OTCQX: FNRN),
holding company for First Northern Bank (“First Northern” or the
“Bank”), today reported net income of $8.7 million, or $0.57 per
diluted share, for the six months ended June 30, 2024, down 13.5%
compared to net income of $10.1 million, or $0.66 per diluted
share, for the six months ended June 30, 2023.
Net income for the quarter ended June 30, 2024, was $4.4
million, or $0.29 per diluted share, down 3.1% compared to net
income of $4.6 million, or $0.30 per diluted share, for the quarter
ended June 30, 2023.
Comparing our 2024 results to prior year, net income for the six
months ended June 30, 2023, included a substantial paydown on a
non-performing agricultural loan relationship, the recognition of a
bargain purchase gain from our branch acquisition completed in the
first quarter, as well as a substantial charge off that, when
coupled with our strong quarterly loan growth, resulted in
provision for loan loss of $2.6M for the quarter to replenish our
allowance for credit losses. On a combined basis these items
contributed an additional $0.8 million to pre-tax income for the
six months ended June 30, 2023, and reduced pre-tax income by $0.6
million for the three months ended June 30, 2023.
Total assets as of June 30, 2024, were $1.89 billion, a decrease
of $25.5 million, or 1.3%, compared to June 30, 2023. Total
deposits as of June 30, 2024, were $1.71 billion, a decrease of
$51.6 million, or 2.9%, compared to June 30, 2023. Total net loans
(including loans held-for-sale) as of June 30, 2024, were $1.05
billion, an increase of $30.7 million, or 3.0%, compared to total
net loans (including loans held-for-sale) of $1.02 billion as of
June 30, 2023. The increase in net loans was primarily driven by
growth in commercial real estate, residential mortgage and
commercial loans, partially offset by net reductions in
agricultural and residential construction loans.
The Company continued to be “well capitalized” under regulatory
definitions, exceeding the 10% total risk-based capital ratio
threshold as of June 30, 2024.
Commenting on the Company’s financial results, First Northern’s
President & Chief Executive Officer, Jeremiah Smith, stated,
“We are pleased with our performance in the second quarter with our
net interest margin improving from 3.49% in the first quarter of
2024 to 3.65% in the second quarter of 2024, an increase of 16
basis points, or 4.6%. We continued to fund our balance sheet
favorably, with 43.4% of average total deposits being non-interest
bearing for the quarter ended June 30, 2024.”
CEO Smith further stated, “We continue to focus on improving our
operating efficiency, resulting in a quarter-over-quarter decrease
in total non-interest expenses of $0.9 million, or 8.3%, in the
continued inflationary landscape. This decline was primarily
attributable to a decrease in salaries and benefits associated with
workforce reductions and incentive and profit-sharing accrual
adjustments. We remain committed to improving shareholder value,
and as of June 30, 2024, our book value per share rose to $10.75,
an increase of $0.31, or 3.0%, when compared to the $10.44 reported
for March 31, 2024, largely due to earnings retention.”
FINANCIAL HIGHLIGHTS
As of June 30, 2024 (Unaudited)
(thousands)
CONDENSED CONSOLIDATED BALANCE
SHEET
JUNE 30, 2024
ASSETS
Cash and Cash Equivalents
$
181,783
Investment Securities
561,074
Total Loans (including loans
held-for-sale)
1,049,415
Other Assets
95,743
Total Assets
$
1,888,015
LIABILITIES AND CAPITAL
Total Deposits
1,707,059
Other Liabilities
15,229
Stockholders’ Equity
165,727
Total Liabilities and Capital
$
1,888,015
CONSOLIDATED INCOME STATEMENT
Six Months Ended June 30, 2024
Interest Income
$
38,073
Interest Expense
(6,733
)
Net Interest Income
31,340
Provision for Credit Losses
(750
)
Non-interest Income
2,991
Non-interest Expense
(21,526
)
Provision for Income Tax
(3,355
)
Net Income
$
8,700
PER SHARE INFO AND FINANCIAL RETURN
METRICS
Book Value per Share
$
10.75
Basic Income per Share
(Quarter-to-date)
$
0.29
Diluted Income per Share
(Quarter-to-date)
$
0.29
Basic Income per Share (Year-to-date)
$
0.57
Diluted Income per Share
(Year-to-date)
$
0.57
Consolidated ROAA (Year-to-date)
0.94
%
Consolidated ROAE (Year-to-date)
10.72
%
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,
Colusa, Glenn, 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. Real estate
mortgage and small-business loan officers are available by
appointment at any of the Bank’s 14 branches, 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. Non-FDIC insured Investment and Brokerage Services are also
available at every branch location. First Northern Bank is rated as
a Veribanc “Green-3 Star” Bank and a “5-Star Superior” Bank by
Bauer Financial for the earnings period ended March 31, 2024
(www.veribanc.com) and (www.bauerfinancial.com). For additional
information, please visit thatsmybank.com or call (707) 678-7742.
Member FDIC. Equal Housing Lender.
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
performance and strategic initiatives, assessment of economic
conditions, and focus on improving operating efficiency and
shareholder value, 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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240729472471/en/
Jeremiah Z. Smith President & Chief Executive Officer First
Northern Community Bancorp & First Northern Bank P.O. Box 547
Dixon, California (707) 678-3041