First Northern Community Bancorp Reports First Quarter 2021 Net Income of $3.2 Million, Up 18.6% from One Year Ago

First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $3.2 million, or $0.23 per diluted share, for the three months ended March 31, 2021, up 18.6% compared to net income of $2.7 million, or $0.20 per diluted share, for the three months ended March 31, 2020.

Total assets as of March 31, 2021 were $1.78 billion, an increase of $438.8 million, or 32.7%, compared to March 31, 2020. Total deposits as of March 31, 2021 were $1.61 billion, an increase of $425.0 million, or 36.0%, compared to March 31, 2020. Total net loans (including loans held-for-sale) as of March 31, 2021 were $950.8 million, an increase of $186.1 million, or 24.3%, compared to March 31, 2020. The increase in net loans was primarily driven by loans made under the SBA’s Paycheck Protection Program (PPP) totaling $202.6 million as of March 31, 2021 and $47.4 million in purchased commercial real estate loans during the first quarter of 2021. These increases were partially offset by a decrease in agriculture and residential construction loans largely due to paydowns and an overall decrease in demand. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold as of March 31, 2021.

Commenting on the Company’s financial results, President & Chief Executive Officer Louise Walker stated, “We are proud to report another quarter of strong performance. In addition to the 18.6% increase in net income, non-interest income on March 31, 2021 was $2.29 million, up 38.9%, or $641,000, compared to the $1.65 million earned in the same period a year ago. The primary contributors to this increase were from gains from mortgage-related activities and debit card income. Mortgage loan originations for the three months ended March 31, 2021 totaled $29.6 million compared to $17.7 million in the first quarter last year, representing an increase of 67.3%. A significant number of new client relationships were established in PPP-Round 1, and the trend has continued in PPP-Round 2 which began on January 15, 2021. We believe the deepening of these new relationships, in addition to growth in quality loans from our robust pipeline should contribute to solid and sustainable core earnings increasing over the long term.”