First Northern Bank reports double-digit growth

By From page A13 | November 03, 2013

First Northern Community Bank reported year-to-date net income as of Sept. 30 of $4.2 million, up 20 compared to net income of $3.5 million for the same fiscal period last year. The figures were contained in the third-quarter earnings report released by Louise Walker, president and CEO of the bank.

Net income available to common shareholders totaled $3.6 million as of Sept. 30, up 38.5 percent compared to net income of $2.6 million available to common shareholders at Sept. 30, 2012. Diluted earnings per share for the nine months ended Sept. 30 was 39 cents, up 39.3 percent compared to diluted earnings per share of 28 cents reported for the same fiscal period a year ago.

Total assets as of Sept. 30 were $876 million, an increase of $70.4 million, or 8.7 percent, compared to the same period in 2012, Walker said. Total deposits of $783.5 million increased $77.6 million, or 11, compared to Sept. 30, 2012, figures.

During that same period, total net loans (including loans held for sale) increased $48.3 million, or 10.7 percent, to $499 million. Total risk-based capital was 15.42 percent, exceeding the “well-capitalized” threshold of 10 percent, she said.

“We are once again very pleased with the important progress we are making in growing our deposits and loans,” Walker said in a news release. “We are proud of our exceptional year-to-date loan growth.”

As a result, First Northern exceeded the specified loan growth targets set forth within the Small Business Lending Fund Participation Agreement, thereby reducing the dividend rate the bank pays to the U.S. Treasury Department from 5 percent to 1 percent on the remaining $12.8 million in capital and fulfilling the mission of increasing small business lending in its communities, Walker said.

“In addition, as further evidence of our commitment to growing small business lending, according to the most recent data provided by the Federal Financial Institutions Examination Council data on small business lending, First Northern Bank is one of the leading small business lenders in our region,” she added.

In the four-county region of Sacramento, Placer, Yolo and El Dorado, First Northern Bank was the fourth largest lender in 2012 with small business loans totaling $76 million and was the second largest lender in Solano County in 2012 with small business loans totaling $21 million.

First Northern Bank has a downtown Davis branch at 434 Second St. For more information, visit www.thatsmybank.com.

Enterprise staff

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