First Northern Community Bancorp Reports Third Quarter 2020 Net Income of $3.4 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 $8.8 million, or $0.68 per diluted share, for the nine months ended September 30, 2020, compared to net income of $11.1 million, or $0.86 per diluted share, for the nine months ended September 30, 2019.
Net income for the quarter ended September 30, 2020 was $3.4 million, or $0.27 per diluted share, compared to net income of $3.8 million, or $0.29 per diluted share for the quarter ended September 30, 2019.
The decrease in net income for the quarter and the nine months ended September 30, 2020 was driven by increased provision for loan losses and non-interest expenses, offset by an increase in gains on sale of residential mortgage loans and available for sale investment securities. Included in net interest income was $2.1 million and $4.1 million in Paycheck Protection Program (PPP) processing fees recognized during the three and nine months ended, September 30, 2020, respectively, as compared to nil for the same periods last year.
Total assets as of September 30, 2020 were $1.68 billion, an increase of $390.0 million, or 30.3%, compared to September 30, 2019. Total deposits as of September 30, 2020 were $1.50 billion, an increase of $361.0 million, or 31.7%, compared to September 30, 2019. Total net loans (including loans held-for-sale) as of September 30, 2020 were $970.5 million, an increase of $212.0 million, or 28.0%, compared to September 30, 2019. The increase in net loans was primarily driven by PPP loans totaling $232.5 million as of September 30, 2020. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of September 30, 2020.
Commenting on the Company’s financial results, President & Chief Executive Officer Louise Walker stated, “We are very pleased with our performance during this unprecedented environment we all are facing. We believe that First Northern Bank is well positioned for the economic uncertainties that lie ahead. Our capital and liquidity positions, as well as our loan loss provision are all at levels deemed to be prudent for times such as these. Our relationship bankers are doing a great job staying in close touch with our clients. We have deployed new technologies to enhance the customer-experience, and the adoption by customers has been tremendous. And, best of all, we continue to gain market share across our entire geographic footprint as the First Northern Bank story continues to be told.”