The holding company for First Northern Bank reported earnings rose 43.5 percent last year, a jump attributed to federal tax cuts plus a growing loan portfolio.
Dixon-based First Northern Community Bancorp (FNRN) on Tuesday evening reported net income was $12.6 million, or $1.02 per diluted share, compared with $8.7 million, or 71 cents, for 2017. Fourth-quarter earnings soared to $3.3 million, or 27 per diluted share, from $900,000, or 7 cents, a year before.
President and Chief Executive Officer Louise Walker said several factors contributed to the rise: increases in net interest, debit card, and investment and brokerage services income as well as lower corporate tax rate, effective January 2018 (21 percent versus 35 percent).
“We also had a growing loan portfolio and continued to experience healthy increases in low cost demand deposits,” Walker said in the announcement.
Year-end total assets were $1.25 billion, up $32.2 million, or 2.6 percent, from 2017. Total deposits were $1.12 billion, up $19.9 million, or 1.8 percent.
Net loans (including loans held-for-sale) increased to $765.7 million, up 3.5 percent, or $25.5 million.
The company said it continues to be “well capitalized” under regulatory definitions, exceeding the 10 percent total risk-based capital ratio threshold at year end.
The First Northern board of directors approved the payment of a 5 percent stock dividend, payable March 29 to shareholders of record as of Feb. 28. Income per share has been adjusted to give retroactive effect to the stock dividend.
Founded in 1910, the community bank has 10 branch offices in Solano, Yolo, Sacramento, Placer and Contra Costa counties plus a commercial lending office in Walnut Creek and a mortgage loan office in Sonoma.
In October, First Northern entered an agreement to sell its trust department to Santa Rosa-based Exchange Bank.
The price of First Northern shares were $11.24 in mid-day trading Wednesday, up 9 cents a share, or 0.81 percent.