First Northern Community Bancorp Reports First Quarter 2022 Net Income of $3.0 Million

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 $3.0 million, or $0.22 per diluted share, for the three months ended March 31, 2022, down 4.3% from net earnings of $3.2 million, or $0.22 per diluted share, for the quarter ended March 31, 2021.

Total assets as of March 31, 2022 were $1.87 billion, an increase of $87.7 million, or 4.9%, from March 31, 2021. Total deposits as of March 31, 2022 was $1.72 billion, an increase of $109.0 million, or 6.8% from March 31, 2021. Total net loans (including loans held for sale and loans totaling $14.8 million made under the SBA’s Paycheck Protection Program (PPP) as of March 31, 2022 was $874.4 million, a decrease of $76.4 million or 8.0% of total net loans (including loans held for sale and loans totaling $202.6 million under the SBA PPP) of 950, $8 million as of March 31, 2021. The decrease in net lending is primarily attributable to repayments and the SBA loan forgiveness and repayment s granted under the SBA’s PPP.

Excluding PPP loans, net loan growth as of March 31, 2022 was $111.4 million, or 14.9%, compared to March 31, 2021.1 The Company continued to be “well capitalized” by regulatory definitions, exceeding the 10% threshold of total risk-based capital ratio as of March 31, 2022.

Commenting on the Company’s financial results, President and CEO Louise Walker said, “We remain optimistic for 2022; our first quarter 2022 results reflect our strong and growing deposit base and our ability to grow net interest income by deploying excess liquidity into lending and investment opportunities as well as redemptions and discount and redemption through the SBA of loans made under the SBA’s PPP lending program, resulting in increased recognition of PPP-related fee revenue, which helped offset lower mortgage-related revenue due to lower loan activity. refinancing. Net interest income increased by $766,000 or 7.1% as at March 31, 2022, compared to the same period a year ago. We are pleased to report that our credit trends continue to be positive, that our small business, agribusiness and corporate lending pipelines have returned to pre-pandemic levels and that the quality of our loan portfolio is strong. We believe the Company is well positioned to weather rising interest rates. »

On March 25, 2022, the Company paid a 5% stock dividend to all shareholders of record as of February 28, 2022.

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 rated as a Veribanc “Blue Ribbon” bank and a “5 Star Superior” bank by Bauer Financial for the results period ended December 31, 2021 (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 company’s expectations regarding our assessment of economic conditions and their impact on our business, the company’s filing base, company, credit trends, loan portfolio and positioning, 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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