First Northern Community Bancorp Reports Second Quarter 2018 Earnings

Net Income of $3.0 Million for Quarter Sets All-time Record

Total Net Loans Up 8.4% from Prior Year

DIXON, Calif.--()--First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $5.7 million, or $0.49 per diluted share, for the six months ended June 30, 2018 compared to net income of $5.1 million, or $0.43 per diluted share, for the six months ended June 30, 2017.

Net income for the quarter ended June 30, 2018 was $3.0 million, or $0.26 per diluted share, compared to net income of $2.5 million, or $0.22 per diluted share for the quarter ended June 30, 2017.

Total assets at June 30, 2018 were $1.2 billion, an increase of $29.3 million, or 2.5%, compared to June 30, 2017. Total deposits at June 30, 2018 were $1.1 billion, an increase of $22.3 million, or 2.1%, compared to June 30, 2017. During the same period, total net loans (including loans held-for-sale) increased $56.5 million, or 8.4%, to $732.3 million. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold at June 30, 2018.

Commenting on the Company’s financial results, President & Chief Executive Officer, Louise Walker stated, “First Northern posted record net income of $3.0 million for the quarter ended June 30, 2018. These results represent a 17.9% increase when compared to the second quarter of 2017. On a year-to-date basis, net income was $5.7 million, a 13.3% increase over the same period last year, largely driven by an increase in net interest income of 12.4% and a decrease in provision for income taxes of 29.6% when compared to the same period last year. In the area of non-interest income for the first six months of 2018, two of our bright spots were investment & brokerage services income and debit card income, up 11.1% and 7.2% respectively, over the same period in 2017. We are pleased with our performance and believe it is a result of the disciplined execution of our strategic initiatives and our widening net interest margin.”

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. In June, the Bank opened a Residential Mortgage Loan Office in Sonoma. 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 and Auburn. The Bank has a full-service Trust Department in Sacramento and 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 10 branches. First Northern recently launched Lightning Loans, its new digital channel for small businesses to get a $2,500 to $50,000 loan or line of credit in minutes. The Bank is rated as a Veribanc “Blue Ribbon” Bank for the earnings period ended March 31, 2018 (www.veribanc.com). The Bank can be found on the Web at www.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 market conditions and the anticipated impact of recent tax law changes and current expectations about strategic focus and competitive advantages, 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.

Contacts

First Northern Community Bancorp & First Northern Bank
Louise A. Walker, 707-678-3041
President & Chief Executive Officer

Release Summary

First Northern Community Bancorp Reports Second Quarter 2018 Earnings; Net Income for Quarter Sets New Record

Contacts

First Northern Community Bancorp & First Northern Bank
Louise A. Walker, 707-678-3041
President & Chief Executive Officer