First Northern Community Bancorp Reports First Quarter 2020 Net Income of $2.7 Million

First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $2.7 million, or $0.21 per diluted share, for the three months ended March 31, 2020, compared to net income of $4.0 million, or $0.31 per diluted share, for the three months ended March 31, 2019.

Total assets at March 31, 2020 were $1.34 billion, an increase of $122.2 million, or 10.0%, compared to March 31, 2019. Total deposits at March 31, 2020 were $1.18 billion, an increase of $95.8 million, or 8.8%, compared to March 31, 2019. Total net loans (including loans held-for-sale) at March 31, 2020 were $764.7 million, an increase of $30.7 million, or 4.2%, compared to March 31, 2019. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold at March 31, 2020.

Commenting on the Company’s financial results, President & Chief Executive Officer Louise Walker stated, “First Northern experienced strong growth in deposits, loans and assets this past quarter despite the very challenging business environment created by the coronavirus pandemic. Even though our business has had to adapt to the “stay-at-home” mandate by the State of California, we continue to serve our customers and grow our business. First Northern responded swiftly to the current situation by increasing debit card limits, waiving non-sufficient funds fees, offering loan payment relief options, and readying ourselves for accepting SBA Paycheck Protection Program loan applications from our small business clients. In response to the economic weakness caused by the pandemic, management set aside $650,000 in the first quarter for provision for probable loan losses. It goes without saying, the Federal Reserve’s recent rate cuts have had a negative impact on our net interest margin, in spite of our growing loan totals. This is a hard time for all businesses; we are grateful for the incredible work our employees are doing, and thankful for our customers and shareholders for their continued support and confidence in First Northern Community Bancorp.”