FIRST NORTHERN COMMUNITY BANCORP - FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report April 29, 2020

(Date of Earliest event reported)

FIRST NORTHERN COMMUNITY BANCORP

(Exact name of registrant as specified in its charter)

California	000-30707	68-0450397
(State of Incorporation)	(Commission File No.)	(IRS Employer ID Number)

195 North First Street, P.O. Box 547, Dixon, California	95620
(Address of principal executive offices)	(Zip Code)

(707) 678-3041

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

ITEM 2.02 RESULTS OF OPERATION AND FINANCIAL CONDITION

On April 29, 2020, First Northern Community Bancorp issued a press release concerning financial results for the 1^st quarter of 2020, a copy of which is included as ITEM 9.01 (c) Exhibit 99.1 and incorporated herein by reference in both ITEM 2.02 and ITEM 7.01. The Company does not intend for this exhibit to be incorporated by reference into future filings under the Securities Exchange Act of 1934.

ITEM 7.01 REGULATION FD DISCLOSURE

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99.1 Earnings Press Release, dated April 29, 2020

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 29, 2020	First Northern Community Bancorp (Registrant)


	/s/ Jeremiah Z. Smith
	By: Jeremiah Z. Smith
	Senior Executive Vice President/
	Chief Operating Officer

EXHIBIT INDEX

Exhibit	Document

99.1	Earnings Press Release, dated April 29, 2020

EXHIBIT 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

Contact: Louise A. Walker April 29, 2020

President & Chief Executive Officer

First Northern Community Bancorp

& First Northern Bank

P.O. Box 547

Dixon, California

(707) 678-3041

First Northern Community Bancorp Reports

First Quarter 2020 Net Income of $2.7 Million

Dixon, California—First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company for First Northern Bank (“First Northern” or the “Bank”), today reported net income of $2.7 million, or $0.21 per diluted share, for the three months ended March 31, 2020, compared to net income of $4.0 million, or $0.31 per diluted share, for the three months ended March 31, 2019.

Total assets at March 31, 2020 were $1.34 billion, an increase of $122.2 million, or 10.0%, compared to March 31, 2019. Total deposits at March 31, 2020 were $1.18 billion, an increase of $95.8 million, or 8.8%, compared to March 31, 2019. Total net loans (including loans held-for-sale) at March 31, 2020 were $764.7 million, an increase of $30.7 million, or 4.2%, compared to March 31, 2019. The Company continued to be “well capitalized” under regulatory definitions, exceeding the 10% total risk-based capital ratio threshold at March 31, 2020.

Commenting on the Company’s financial results, President & Chief Executive Officer Louise Walker stated, “First Northern experienced strong growth in deposits, loans and assets this past quarter despite the very challenging business environment created by the coronavirus pandemic. Even though our business has had to adapt to the “stay-at-home” mandate by the State of California, we continue to serve our customers and grow our business. First Northern responded swiftly to the current situation by increasing debit card limits, waiving non-sufficient funds fees, offering loan payment relief options, and readying ourselves for accepting SBA Paycheck Protection Program loan applications from our small business clients. In response to the economic weakness caused by the pandemic, management set aside $650,000 in the first quarter for provision for probable loan losses. It goes without saying, the Federal Reserve’s recent rate cuts have had a negative impact on our net interest margin, in spite of our growing loan totals. This is a hard time for all businesses; we are grateful for the incredible work our employees are doing, and thankful for our customers and shareholders for their continued support and confidence in First Northern Community Bancorp.”

Further commenting on the potential impacts of COVID-19 to the loan portfolio, Walker stated, “Our commercial real estate loan portfolio exposure to industries most affected by the stay-at-home order includes 7.6% to retail properties and business; 1.9% to restaurants and 1.2% to the hospitality/hotel sector. Loans to these customers are generally secured by real estate with relatively low loan-to-value ratios and strong guarantors. By April 20, 2020, the Bank had received requests covering approximately $82.2 million in loan balances for payment deferrals or interest-only payments on amortizing loans. On previously performing loans, the Bank is granting payment deferrals of three to six months, providing relief until economic conditions improve. At that date, 78.3% of the loan balances where relief is requested are secured by commercial real estate with relatively low loan-to-value ratios.”

On March 25, 2020, the Company paid a 5% stock dividend to all shareholders of record as of February 28, 2020.

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, 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 and Rancho Cordova. The Bank also has a commercial lending office in Walnut Creek and a mortgage loan office in Sonoma. Real estate mortgage and small-business loan officers are available by appointment in any of the Bank’s 11 branches. First Northern is rated as a Veribanc “Blue Ribbon” Bank and a “5-Star Superior” Bank by Bauer Financial for the earnings period ended December 31, 2019 (www.veribanc.com) and www.bauerfinancial.com). The Bank can be found on the Web at thatsmybank.com, on Facebook and on LinkedIn.

Forward-Looking Statements

This press release and other public statements may include certain “forward-looking statements” about First Northern Community Bancorp and its subsidiaries (the “Company”). These forward-looking statements are based on management’s current expectations, including but not limited to statements about the Company’s responses to the coronavirus pandemic, the potential impacts of COVID-19 to the loan portfolio, and business growth, and are subject to certain risks, uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. Given the many challenges and uncertainties resulting from the coronavirus pandemic, such as the extent and duration of the impact on public health, the U.S. and California economies, financial markets and consumer and corporate customers and clients, including economic activity, employment levels and market liquidity, and on our business, results of operation and financial condition, as well as the various actions taken in response to the challenges and uncertainties by governments, regulatory agencies and others, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. More detailed information about these risk factors is contained in the Company’s most recent reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent reports on Form 10-K and Form 10-Q, and any reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made. For further information regarding the Company, please read the Company’s reports filed with the SEC and available at www.sec.gov.

xxx

Stock widget

Investing forum

FIRST NORTHERN COMMUNITY BANCORP Reports