Market Overview

First Northern Community Bancorp Reports Second Quarter 2017 Earnings

Share:

Net Income of $2.5 Million for Quarter

Second Quarter Diluted Earnings per Share Up 27.8%

Total Net Loans up 6.3% from prior year

First Northern Community Bancorp (the "Company," ticker symbol FNRN:
OTCQB), holding company for First Northern Bank ("First Northern" or the
"Bank"), today announced earnings through the second quarter of 2017.
Louise Walker, President and Chief Executive Officer, stated, "The
Company reported net income of $5.1 million for the six months ended
June 30, 2017, up 34.2% compared to net income of $3.8 million reported
for the same period last year. These results include a pre-tax gain of
$1.2 million related to the sale-leaseback of land and building that is
partially occupied by our Auburn Branch. Diluted earnings per share for
the six months ended June 30, 2017 was $0.45, up 32.4% compared to
diluted earnings per share of $0.34 for the same period last year."

Net income for the quarter ended June 30, 2017 was $2.5 million, up
25.0% compared to net income of $2.0 million reported for the same
period last year. Diluted earnings per share for the three months ended
June 30, 2017 was $0.23, up 27.8% compared to diluted earnings per share
of $0.18 for the same period last year.

Total assets at June 30, 2017 were $1.16 billion, an increase of $87.1
million, or 8.1%, compared to June 30, 2016. Total deposits of $1.05
billion increased $79.4 million, or 8.2%, compared to June 30, 2016.
During the same period, total net loans (including loans held-for-sale)
increased $40.2 million, or 6.3%, to $675.8 million. The Company
continued to be "well capitalized" under regulatory definitions,
exceeding the 10% total risk-based capital ratio threshold at June 30,
2017.

Further commenting on the Company's financial results, Walker stated,
"Our operating results from the second quarter 2017 improved 25.0% over
the same period last year. This record year-to-date earnings performance
was driven by improved credit quality resulting in no loan loss
provision expense being necessary for the quarter, coupled with loan and
investment interest income growth, improvements in non-interest income
from the areas of mortgage loan origination and wealth management, as
well as our ongoing operating expense management initiatives. Our
operating efficiency ratio as of June 30, 2017 was 61.8%, an improvement
from the 67.0% recorded a year ago. This is an exciting time for First
Northern Community Bancorp as we believe we continue to build momentum
from the investments we've been making in our company: technology
enhancements, branch transformations, process improvements, and the
continuing effort to attract the area's best bankers to build our bench
strength in support of our growing client base."

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 County,
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. 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 is rated as a Veribanc "Blue Ribbon" Bank for the
earnings period ended March 31, 2017 (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 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 current expectations about strategic focus and
investments, client base growth, 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.

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