Market Overview

First Northern Community Bancorp Reports Fourth Quarter 2017 Earnings


Net Income of $8.7 Million for Full Year

4% Stock Dividend Declared

First Northern Community Bancorp ((the "Company", OTCQB:FNRN), holding
company for First Northern Bank ("First Northern" or the "Bank"), today
reported year ended 2017 net income totaling $8.7 million, or $0.75 per
diluted share compared to net income of $8.1 million, or $0.70 per
diluted share for the year ended 2016, and net income totaling $0.9
million, or $0.08 per diluted share for the quarter ended December 31,
2017 compared to net income of $2.3 million, or $0.20 per diluted share
for the quarter ended December 31, 2016.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law.
Among other changes, the new law provides a reduction in the federal
corporate income tax rate from 35% to 21% effective January 1, 2018. As
a result of the reduction in the corporate income tax rate, the Company
re-measured its net deferred tax asset in December 2017 (as was required
given the law was enacted in 2017 even though the tax rate reduction did
not take effect until 2018). This re-measurement resulted in a reduction
in the value of our net deferred tax asset of $1.7 million, or $0.14 per
diluted share, which was recorded as additional income tax expense for
the fourth quarter of 2017.

Results for the year ended December 31, 2017 also include an after-tax
gain of $728,000 or $0.06 per diluted share recognized in the first
quarter 2017 related to the sale-leaseback of the land and building
partially occupied by our Auburn Branch.

Total assets at December 31, 2017 were $1.22 billion, an increase of
$51.0 million, or 4.4%, compared to December 31, 2016. Total deposits
were $1.10 billion at year end 2017, an increase of $41.0 million, or
3.9%, compared to December 31, 2016. During 2017, total net loans
(including loans held-for-sale) increased $67.1 million, or 10.0%, to
$740.2 million. The Company continued to be "well capitalized" under
regulatory definitions, exceeding the 10% total risk-based capital ratio
threshold at December 31, 2017.

Commenting on the Company's financial results, President & Chief
Executive Officer Louise Walker stated, "2017 was another tremendous
year for First Northern Community Bancorp. We posted near record
earnings, in spite of the increase of $1.7 million in tax expense we
incurred from the necessary one-time re-measurement of our net deferred
tax asset. We experienced solid gains in net interest income, investment
& brokerage services income, and mortgage-related income. In addition,
our relationship bankers were able to successfully attract many business
clients coming from a number of local banks in our region that have
recently been acquired. First Northern Bank prides itself on having a
Policy of Independence, adopted by its Board of Directors in 1996 to
communicate the Company's intention of remaining an independent local
community bank. Our Policy of Independence is considered a definite
competitive advantage, especially in today's environment."

The Company also reported that the Board of Directors recently approved
the payment of a 4% stock dividend payable March 29, 2018 to
shareholders of record as of February 28, 2018. All income per share
amounts have been adjusted to give retroactive effect to the stock

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. 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 September 30, 2017 (
The Bank can be found on the Web at,
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 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

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