First Northern Community Bancorp (OTCQX: FNRN), the holding company for First Northern Bank, recently announced its financial results for the first quarter of 2024. The company reported a net income of $4.3 million, or $0.28 per diluted share, which represents a 22.1% decrease compared to the same period in 2023.
One of the contributing factors to the lower net income for Q1 2024 was the absence of a bargain purchase gain from the acquisition of three branches in the first quarter of 2023. Last year’s net income included a bargain purchase gain of $1.0 million, or $0.07 per share, which positively impacted the results.
Total assets as of March 31, 2024, were $1.89 billion, a slight decrease of $16.2 million, or 0.9%, compared to the previous year. Total deposits also decreased by $42.2 million, or 2.4%, to $1.71 billion. However, total net loans, including loans held-for-sale, increased by $72.7 million, or 7.5%, reaching $1.05 billion. This increase was primarily driven by growth in commercial real estate, residential mortgage, and commercial loans.
Despite the challenges faced, First Northern Bank remained “well capitalized” according to regulatory standards, surpassing the 10% total risk-based capital ratio threshold.
Jeremiah Smith, President and CEO of First Northern Bank, expressed his satisfaction with the performance in the first quarter. He highlighted a growth of 8.8% in average loans, which resulted in an 18.4% increase in interest income on loans compared to the same period last year. The company also managed to keep its cost of funds at a low 0.76% for the quarter.
The bank’s focus on improving operating efficiency led to a decrease in total non-interest expenses, despite an inflationary environment. Salaries and benefits expense saw a decline of 2.0% compared to the same period in 2023.
First Northern Community Bancorp remains committed to enhancing shareholder value, as evidenced by the rise in book value per share to $10.44 as of March 31, 2024.
In conclusion, First Northern Community Bancorp faced some challenges in the first quarter of 2024, resulting in decreased net income compared to the previous year. However, the bank remains well-capitalized and is committed to improving its financial performance and delivering value to its shareholders.
First Northern Community Bancorp, the holding company for First Northern Bank, reported a decreased net income for the first quarter of 2024 compared to the same period in 2023. The net income for Q1 2024 was $4.3 million, representing a 22.1% decrease. This decrease can be attributed to the absence of a bargain purchase gain from the acquisition of three branches in the first quarter of 2023, which positively impacted last year’s net income.
Despite the decrease in net income, First Northern Bank remained “well capitalized” according to regulatory standards, surpassing the 10% total risk-based capital ratio threshold. This indicates the bank’s strong financial position and ability to handle potential risks.
Total assets as of March 31, 2024, were $1.89 billion, a slight decrease of $16.2 million, or 0.9%, compared to the previous year. Total deposits also decreased by $42.2 million, or 2.4%, to $1.71 billion. However, total net loans, including loans held-for-sale, increased by $72.7 million, or 7.5%, reaching $1.05 billion. This growth in loans was mainly driven by the increase in commercial real estate, residential mortgage, and commercial loans.
Jeremiah Smith, the President and CEO of First Northern Bank, expressed satisfaction with the performance in the first quarter, highlighting the growth in average loans and the increase in interest income on loans compared to the same period last year. The bank’s focus on improving operating efficiency also led to a decrease in total non-interest expenses, despite an inflationary environment.
One key challenge faced by First Northern Community Bancorp is the decrease in total deposits. This could be a result of increased competition in the market or changes in customer preferences. To address this challenge, the bank may need to implement strategies to attract and retain depositors.
Another challenge or controversy associated with the subject is the potential impact of economic conditions on loan performance. As the economy experiences fluctuations, loan delinquencies or defaults may increase, affecting the bank’s financial performance. First Northern Community Bancorp needs to closely monitor economic indicators and implement risk management practices to mitigate potential losses.
In terms of market trends, the banking industry is witnessing increased digitization and the adoption of technology-driven solutions. Banks are investing in digital platforms and mobile banking services to enhance customer experience and improve operational efficiency. First Northern Community Bancorp may need to consider investing in technological advancements to stay competitive in the market.
Looking ahead, the bank’s commitment to enhancing shareholder value is evident in the rise of book value per share to $10.44 as of March 31, 2024. This indicates the bank’s efforts to generate long-term value for its shareholders.
In summary, despite facing challenges in the first quarter of 2024, First Northern Community Bancorp remains well-capitalized and is committed to improving its financial performance. The bank’s focus on loan growth, operating efficiency, and shareholder value demonstrates its determination to deliver value to stakeholders.
For more information on First Northern Community Bancorp, you can visit their official website: link.