First Northern Community Bancorp reports third quarter 2022 results

Net loan growth excluding PPP lending increased 28.8% year-on-year1

DIXON, California, October 26, 2022–(BUSINESS WIRE)–First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company of First Northern Bank (“First Northern” or the “Bank”), today reported net income of $11.2 million, or 0, $80 per diluted share for the nine months ended September 30, 2022, up 1.5% from net income of $11.0 million or $0.77 per diluted share for the nine months ended September 30, 2022 September 2021.

Net income for the quarter ended September 30, 2022 was $4.6 million, or $0.33 per diluted share, an increase of 1.3% from net income of $4.5 million, or $0 $.32 per diluted share for the quarter ended September 30, 2021.

The provision for credit losses totaled $300,000 for the three months ended September 30, 2022 compared to a release of the provision for credit losses of $1,800,000 for the same period in 2021. The provision for credit losses was in the nine months ended September 30, 2022 for a total of $900,000. compared to a $1,500,000 release of the provision for credit losses for the same period in 2021. The current period provision for credit losses is primarily due to current year lending growth. The release of the provision for loan losses in the prior period was primarily due to a decrease in the specific provision for loans to a borrower.

Total assets as of September 30, 2022 were $1.93 billion, an increase of $8.2 million or 0.4% compared to September 30, 2021. Total deposits as of September 30, 2022 were 1 $.80 billion, up $49.9 million, or 2.9%. , compared to September 30, 2021. Total net loans (including loans totaling $0.5 million granted under the SBA’s Paycheck Protection Program (PPP)) as of September 30, 2022 were $971.2 million, an increase of $145.6 million, or 17.6%, compared to total net loans (including loans held for sale and loans totaling $72.0 million included in the of the SBA’s PPP) of $825.6 million as of September 30, 2021. The increase in net lending was primarily due to originations of commercial real estate, agricultural and residential mortgage loans, partially offset by repayments, and the ordinance and the SBA -Reimbursement for loans granted under the SBA’s PPP.

Excluding PPP loans, net loan growth as of September 30, 2022 was $217.10 million or 28.8% compared to September 30, 2021.1 The company continued to be “well capitalized” according to regulatory definitions, exceeding the 10% risk-based total capital ratio as of September 30, 2022.

Commenting on the company’s financial results, President & Chief Executive Officer Louise Walker said, “We remain focused on executing our strategic initiatives and are closely monitoring the risks associated with the continued impact of high inflation on both residential and commercial customers . With consistent earnings, a solid credit portfolio and excellent liquidity, we believe we are well positioned to help our clients navigate the challenging economic environment.”

About First Northern Bank

First Northern Bank is an independent community bank specializing in relationship banking. Headquartered in Solano County since 1910, the bank serves Solano, Yolo, Sacramento, Placer and Contra Costa Counties and the western slope of El Dorado County. Experts are available for small business, commercial, real estate and agribusiness lending and mortgage lending. The bank is a preferred lender of the SBA. Non-FDIC-insured investment 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 credit office in Walnut Creek. Small business real estate mortgage and loan officers are available by appointment at any of the bank’s 11 branches. First Northern is managed by Bauer Financial for the period ended June 30, 2022 (www.veribanc.com) and (www.bauerfinancial.com). You can find the bank online at thatsmybank.comon Facebook and further LinkedIn.

Forward-Looking Statements

This press release and other public statements may contain 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 regarding the implementation of strategic initiatives and the Company’s competitive position, and are subject to certain risks, uncertainties and changes in circumstances. Actual results could differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. With the many challenges and uncertainties arising from the coronavirus pandemic, such as B. the magnitude and duration of the impact on public health, the US and California economies, financial markets and consumer and corporate customers and customers, including economic activity, employment levels and market liquidity, and on our business, results of operations and financial condition and the various actions being taken by governments, regulators and others in response to the challenges and uncertainties, our forward-looking statements are subject to the risk that conditions will differ materially from those we currently anticipate. More detailed information regarding these risk factors is contained in the Company’s most recent reports on Forms 10-K and 10-Q, as amended, which identify important risk factors that may exist cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s most recent Reports on Form 10-K and Form 10-Q and all Reports on Form 8-K. The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made. For more information about the company, please read the company’s filings with the SEC, 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 this non-GAAP financial measure is useful to investors given the near-term and non-recurring impact of loans granted under the SBA’s PPP on the company’s financial statements.

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contacts

Louise A Walker
President & Chief Executive Officers
First Bancorp of the Northern Community
& First North Bank
PO Box 547
Dixon, California
678-3041

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