DIXON, Calif.--(BUSINESS WIRE)--
First Northern Community Bancorp (OTCQB:FNRN), the parent company of
First Northern Bank, announced today that it has redeemed $10 million of
the $22.8 million in preferred stock it issued on September 20, 2011 to
the United States Department of Treasury (“Treasury”) under the Small
Business Lending Fund (the “SBLF”). The SBLF was developed as a
voluntary program intended to encourage small-business lending by
providing capital to qualified community banks at favorable rates.
“We were delighted to be approved by the Treasury for participation in
the SBLF in late 2011,” stated Louise A. Walker, President and Chief
Executive Officer. “The SBLF capital infusion was a great opportunity
for our company to continue to meet the credit needs of small businesses
in the communities we serve. However, our improving asset quality,
earnings and increasing deposit levels give us the flexibility to
continue to meet small business loan needs while beginning to execute on
our objective of redeeming our SBLF capital as time and conditions
allow.”
Ms. Walker continued, “This initial partial redemption of the SBLF
preferred stock is a significant step in our long-term capital
management strategy. This redemption will reduce the SBLF preferred
stock annual dividend payment by $500,000 at the current annual dividend
rate of five percent. Combined with our solid growth in diluted earnings
per share in recent quarters and continued strong progress in the
reduction of our level of non-performing assets, this action
demonstrates our capability to self-fund the redemption of our SBLF
capital, which we believe will continue to drive improved value for our
shareholders.”
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 10 branches located in Dixon, Davis, West Sacramento,
Fairfield, Vacaville, 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 and
Roseville, 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 includes 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, national and local 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 any of 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 any of 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.
First Northern Community Bancorp & First Northern Bank
Louise
A. Walker, President/CEO
707-678-3041
Source: First Northern Community Bancorp