First Northern Community Bancorp Reports Second Quarter 2023 Net Income of $4.6 Million - Seite 2

“For the quarter ended June 2023, our net interest margin improved to 3.97%, including a 28 basis point positive benefit as a result of the previously mentioned $1.3 million interest recovery. We continued to see margin expansion this quarter, both including and excluding the interest recovery. We are pleased with our performance relative to the 3.55% net interest margin reported for the first quarter of 2023.

“We also continued to manage our deposit costs, while our levels of deposits outstanding largely stabilized over the quarter. Total costs of interest-bearing deposits increased 24 basis points to 0.62% for the quarter when compared to the 0.38% reported for the first quarter of 2023.

“While we are happy to report a positive resolution on the non-performing agricultural loan relationship this quarter, the Company unfortunately experienced a credit event related to a different agricultural relationship that required a charge-off of $2.6 million during the quarter. This charge-off, coupled with our strong quarterly loan growth, resulted in provision for credit loss expense of $2.6 million for the quarter to replenish our allowance for credit losses. Outside of this relationship, management believes credit quality is sound and our allowance for loan losses is adequate as of June 30, 2023. As of June 30, deposits which were not insured by the FDIC (as calculated per regulatory guidance) were $639.1 million, or 36.3% of total deposits.”

About First Northern Bank

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, Colusa, Glenn 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, Auburn, Rancho Cordova, Colusa, Willows, and Orland. The Bank also has 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 14 branches. First Northern is rated as a Veribanc “Green-3 Star” Bank and a “5-Star Superior” Bank by Bauer Financial for the earnings period ended March 31, 2023 (www.veribanc.com) and (www.bauerfinancial.com). The Bank can be found on the Web at thatsmybank.com, on Facebook and on LinkedIn.