First Northern Community Bancorp Shows Strong Third Quarter Growth
First Northern Community Bancorp Reports Financial Performance
First Northern Community Bancorp (the “Company”, OTCQX: FNRN), the holding company for First Northern Bank, recently announced its financial results for the third quarter of 2024. The results highlight a net income of $5.5 million for the quarter, marking an impressive 18.8% increase compared to $4.6 million reported in the same quarter the previous year. This growth in net income translates to $0.36 per diluted share.
Overview of Financial Highlights
Total assets as of September 30, 2024, reached $1.93 billion, reflecting a notable increase of $28.4 million, or 1.5%, from the previous year. In terms of deposits, the Company reported total deposits of $1.73 billion, which is a slight decrease of $14.3 million, or 0.8%, compared to September 30, 2023. Importantly, total net loans, including those held for sale, increased to $1.042 billion, showing a growth of $4.9 million, or 0.5%. This increase was primarily attributed to growth in commercial, commercial real estate, and residential mortgage loans, balancing out declines in agricultural and residential construction loans.
Capitalization and Strategic Goals
The Company continues to maintain a strong capital position and is classified as “well capitalized” under regulatory criteria, exceeding the 10% total risk-based capital ratio requirement as of September 30, 2024. Jeremiah Smith, the President & Chief Executive Officer of First Northern, expressed satisfaction with the Company’s performance, highlighting a deposit growth of $25 million during the quarter while successfully maintaining the net interest margin.
Non-Performing Loan Improvements
CEO Smith elaborated on the successful resolution of a significant non-performing loan relationship during this quarter, resulting in a decrease in non-accrual loans from $6.8 million as of June 30, 2024, to $4.0 million as of September 30, 2024. This impressive reduction of $2.8 million, or 41%, not only improved the bank's asset quality but also contributed to a reversal of provision for credit losses amounting to $550 thousand for the quarter. With these developments, the book value per share has seen positive recognition, increasing to $11.92, up $1.17 or 10.9% compared to the $10.75 reported at the end of the previous quarter.
Looking Ahead with Confidence
First Northern Bank has been a steadfast leader in relationship banking since its inception in 1910, serving multiple counties and providing a range of financial services. The dedicated workforce at First Northern specializes in various sectors, including small business, commercial, real estate, agribusiness lending, and mortgage loans. Their status as an SBA Preferred Lender is a testament to their strong commitment to the community.
Commitment to Community and Service
The bank operates 14 branches across several key counties, along with a commercial lending office in Walnut Creek, ensuring they are well-positioned to meet the needs of their diverse clientele. Additionally, offering non-FDIC insured investment and brokerage services at each location, First Northern Bank continues to receive recognition for its performance and customer service. It has achieved a Veribanc “Green-3 Star Blue Ribbon” rating, as well as a “5-Star Superior” rating from Bauer Financial, affirming its strong financial health and commitment to shareholder value.
Frequently Asked Questions
What was First Northern Community Bancorp's net income for Q3 2024?
First Northern Community Bancorp reported a net income of $5.5 million for the third quarter of 2024.
How did total assets change from the last year?
Total assets increased by $28.4 million, or 1.5%, reaching $1.93 billion as of September 30, 2024.
What factors contributed to the growth in net loans?
The growth in net loans was primarily driven by increases in commercial, commercial real estate, and residential mortgage loans.
How is First Northern Bank capitalized according to regulatory standards?
As of September 30, 2024, First Northern Bank is classified as “well capitalized,” exceeding the 10% total risk-based capital ratio requirement.
What services does First Northern Bank offer?
First Northern Bank offers services in small business, commercial, real estate, and agribusiness lending, as well as mortgage loans and investment services.
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