First Northern Community Bancorp: Year-End 2024 Financial Overview
First Northern Community Bancorp Reports Year-End Financial Results
In 2024, First Northern Community Bancorp (OTCQX: FNRN) released its annual financial results, revealing a net income of $20.0 million, equivalent to $1.24 per diluted share. This marks a decline of 7.5% compared to the previous year’s net income of $21.6 million or $1.34 per diluted share. A significant factor contributing to this year's results was the absence of a one-time bargain purchase gain from the acquisition of three branches that occurred in 2023.
Quarterly Performance Insights
Addressing the financials for the last quarter of 2024, the company reported a net income of $5.8 million, representing a decline of 15.1% from $6.9 million in the same quarter of 2023. A primary reason for this dip was a lower reversal of provision for credit losses, which dropped from $2.0 million in 2023 to just $450,000 in 2024. This was partly due to a previous recovery relating to a non-performing agricultural loan that did not recur.
Asset and Loan Portfolio Analysis
As of December 31, 2024, First Northern Community Bancorp reported total assets of $1.89 billion, reflecting a modest increase of $19.9 million or 1.1% compared to the prior year. Total deposits grew slightly to $1.70 billion, up by $7.6 million or 0.5%. However, net loans, including loans held-for-sale, decreased by $5.6 million to $1.047 billion, primarily driven by reductions in agricultural and residential construction loans, even as commercial loans expanded.
Regulatory Standing and Capital Position
Despite the fluctuations in income and lending, the Company maintained its status as “well capitalized” under regulatory definitions, surpassing the minimum 10% total risk-based capital ratio requisite.
Management Comments on Financial Health
Jeremiah Z. Smith, President & CEO of First Northern Bank, expressed satisfaction with ending the year on a strong note regarding interest income growth. In 2024, total interest and dividend income saw an increase of $4.5 million, or 6.1%, while non-interest expenses declined by $849,000, or 1.9%. These efforts highlighted the Bank's commitment to managing costs effectively amidst an inflation-rich environment.
Shareholder Value Enhancement
CEO Smith further emphasized the bank's dedication to enhancing shareholder value. By year-end 2024, total stockholders’ equity reached $176.3 million, marking an increase of $17.1 million or 10.7% compared to 2023. The rise in equity contributed to an enhanced book value per share, which increased from $9.80 to $11.06—an impressive 12.9% growth.
Stock Dividend Announcement
The Board of Directors has announced a 5% stock dividend, set to be payable on March 25, 2025, for shareholders who are on record as of February 28, 2025. This dividend reflects the company's ongoing commitment to returning value to its shareholders.
A Look at Financial Highlights
Key Financial Metrics as of December 31, 2024:
- Total Assets: $1,891,722
- Total Deposits: $1,700,089
- Net Loans: $1,046,852
- Stockholders’ Equity: $176,332
- Net Income: $20,034
About First Northern Bank
First Northern Bank operates as an independent community bank focusing on relationship-driven banking. Since 1910, the Bank has actively served diverse areas, providing expertise in small business, commercial, real estate, and agribusiness lending. They are noted for their preferred status as an SBA lender, providing various loan services across 14 branches. Recent recognitions include ratings from Veribanc and Bauer Financial, placing the bank in commendable positions for customer trust and service quality.
Frequently Asked Questions
What were First Northern Bank's net income and earnings per share for 2024?
First Northern Bank reported a net income of $20.0 million, translating to $1.24 per diluted share for 2024.
How does the 2024 performance compare to 2023?
The net income for 2024 decreased by 7.5% compared to 2023's performance, where the Company outlined a gain from a previous acquisition.
What is the status of First Northern Bank's assets and loans?
At year-end 2024, the Bank reported total assets of $1.89 billion, a slight increase, while net loans fell by 0.5% to $1.047 billion.
What is First Northern Bank's approach to managing costs?
The Bank remains focused on disciplined cost management, successfully reducing non-interest expenses even amid rising interest rates.
What shareholder actions have been taken recently?
The Board of Directors announced a 5% stock dividend payable on March 25, 2025, demonstrating the Bank's commitment to rewarding shareholders.
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