DIXON – First Northern Community Bancorp (OTCBB: FNRN), the holding company for First Northern Bank, reported its sixth consecutive positive earnings quarter and the strongest six-month start since the beginning of the financial crisis.

The bancorp announced its consolidated financial results as of and for the three and six-month periods ended June 30, 2011.

The firm reported year-to-date net income as of the end of June as $1,561,000, up 63 percent compared to net income of $960,000 reported for the same fiscal period last year.

Net income available to common shareholders at June 30, 2011 totaling $1,061,000 is up 128 percent compared to the total of $465,000 reported on June 30, 2010.

Diluted earnings per share for the six months ended June 30, 2011 was $0.12, up 140 percent from the diluted income per share of $0.05 reported for the same period a year ago.

Net income for the quarter ended June 30, 2011 was $795,000 compared to $599,000 for the same prior year period. Net income available to common shareholders for the second quarter totaled $544,000, or $0.06 per diluted common share, compared to $350,000, or $0.04 per diluted common share for the same quarter last year.

[caption id="attachment_38350" align="alignleft" width="176" caption="Louise Walker"][/caption]

“While operating revenues are strong, our profits continue to be impacted by loan write-downs and loan loss provisions,” said Louise Walker, president and CEO. “Loan demand remains depressed, but we are pleased that our concerted efforts to reduce non-interest expense and improve non-interest income are helping to offset the decline in interest income.”

According to Ms. Walker, loan interest income was down slightly, but was offset to some degree by interest paid on deposits.  “You have to look at all interest income categories to see the total picture. Overall, net interest income has been on the increase.” The company will report interest income categories in its Form 10-Q filing.

Consolidated total assets at June 30, 2011 were $747 million, an increase of $10.8 million, or 1.5 percent, compared to the same period in 2010.  Consolidated total deposits of $650.4 million increased $9.5 million, or 1.5 percent, compared to June 30, 2010 figures, reflecting a national trend toward higher savings rates caused by a loss of consumer confidence and market volatility.

During that same period, total net loans (including loans held for sale), decreased $21.8 million, or 4.8 percent, to $432.1 million.  Total risk-based capital was 16.9 percent -- far exceeding the “well-capitalized” threshold of 10 percent.

First Northern Bank, a leading independent community bank headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer Counties and the west slope of El Dorado County.

The bank’s 11 branches offer 24/7 real estate mortgage loans, free checking, trust services, SBA loans and non-FDIC insured investment and brokerage services.

“Times are difficult and we have had our share of challenges, but we diversified our operations into other lines of business. You have to make adjustments during up and down cycles. We are optimistic about business activity in Solano with strong agriculture and health care industries. We see a lot of opportunities,” Ms. Walker said.

First Northern Bank specializes in relationship banking and employs experts in the areas of small business, commercial, agribusiness and real estate banking, as well as wealth management.  The bank can be found on the Web at www.thatsmybank.com.