First Northern Community Bancorp (OTCQB: FNRN, thatsmybank.com), holding company for First Northern Bank in Solano County, Thursday evening reported first-quarter earnings increased 8.7 percent from a year before, and net loans rose by 10.1 percent.
Net income was $2.7 million, or 23 cents per diluted share, for the three months ended March 31, compared with $2.5 million, or 22 cents, in the first quarter of 2017.
“By growing the balance sheet and increasing the size of our quality loan portfolio, we have been able to report consistent gains in our net interest income,” said Louise Walker, president and CEO, in the announcement.
Total assets at quarter-end were $1.2 billion, up $37.6 million, or 3.2 percent, from a year before. Total net loans, including those held for sale, increased $66.3 million to $721.0 million.
Total deposits were $1.1 billion, up $32.1 million, or 3.0 percent.
The company said it continued to be “well-capitalized,” under regulatory definitions, exceeding the 10 percent total risk-based capital ratio threshold for the quarter.
Net interest income was $10.5 million, up 12.9 percent from the first quarter of 2017.
Noninterest income declined $1.0 million, or 36.6 percent. The bancorp attributed that primarily to the $1.2 million one-time gain on the sale-leaseback of the Auburn branch, a gain recognized in the first quarter of 2017.
A “bright spot” in noninterest income was investment and brokerage income from the Wealth Management division, according to Walker. That increased 12.6 percent from 12 months before.
The bancorp’s effective tax rate declined to 28.0 percent from 38.0 percent a year before because of the Tax Cuts and Jobs Act, the institution said. The provision for income taxes decreased by $0.5 million, or 31.0 percent.
Started in 1910, the community bank is based in Dixon. It serves Solano, Yolo, Sacramento, Placer and Contra Costa counties plus the west slope of El Dorado County from 10 branches in Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville and Auburn.