DIXON, Calif.--(BUSINESS WIRE)--
First Northern Community Bancorp (OTCQB:FNRN), the parent company of
First Northern Bank, announced today that it has received an investment
of $22.8 million in the Company’s preferred stock from the U. S.
Department of Treasury under the Small Business Lending Fund (SBLF).
The SBLF is a voluntary program intended to encourage small-business
lending by providing capital to qualified community banks at favorable
rates. The initial dividend rate on the preferred stock is 5%. Depending
on the Bank’s success in meeting certain loan growth targets, the
dividend rate could go as low as 1% for a period of time. Based on
current loan levels, First Northern will continue to pay the 5% rate.
The Bank’s participation in the SBLF was authorized by shareholders at a
special meeting on September 14.
“We are pleased to have been selected among healthy financial
institutions to participate in this important program. We have completed
the SBLF capital infusion in support of our small-business lending
operations and have repaid the CPP investment,” said Louise A. Walker,
President and CEO of First Northern. “Our participation in the SBLF
program is a great opportunity for our company to continue to meet the
credit needs of small businesses in the communities we serve.”
Simultaneously with the receipt of the SBLF funds, the Bank redeemed
$17.4 million of shares of preferred stock issued to the Treasury in
March 2009 under the Capital Purchase Program (CPP), a part of the
Troubled Asset Relief Program (TARP). “Funding under CPP allowed added
protection to shareholders and depositors at a time when there was much
uncertainty in the financial markets,” Walker explained.
The Treasury continues to hold a warrant to purchase 352,977 shares of
the Company's common stock at a price of $7.39. “The Bank will attempt
to repurchase these warrants from Treasury in the coming weeks,” she
added.
More details regarding the transactions described above can be found in
the Bank’s Current Report on Form 8-K that was filed with the Securities
and Exchange Commission (www.sec.gov)
earlier today.
About First Northern Bank
First Northern Bank (OTCQB:FNRN), an independent community bank
headquartered in Solano County since 1910, serves Solano, Yolo,
Sacramento, Placer and the west slope of El Dorado County. First
Northern has 11 branches located in Dixon, Davis, West Sacramento,
Fairfield, Vacaville (2), Winters, Woodland, Downtown Sacramento,
Roseville, and Auburn, and has a full service Trust Department in
Sacramento. First Northern Bank also offers 24/7 real estate mortgage
loans, SBA loans, and non-FDIC insured Investment & Brokerage Services
at each branch location. Real Estate Mortgage Loan offices are located
in Davis, Roseville and Folsom, and real estate loan representatives are
available to meet customers at any of the Bank’s branches by
appointment. The Bank specializes in relationship banking and employs
experts in the area of small business, commercial, agribusiness, and
real estate lending, as well as wealth management. The Bank can be found
on the Web at www.thatsmybank.com
and on Facebook.
Forward-Looking Statements
This press release may include certain “forward-looking statements”
about First Northern Community Bancorp (the “Company”). These
forward-looking statements are based on management’s current
expectations 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. 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,
10-Q and 8-K, 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. The Company undertakes no obligation to update these
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.
Source: First Northern Community Bancorp
Contact:
First Northern Bank
Louise A. Walker, 707-678-3041
President/CEO