First Northern Community Bancorp Reports $20M Net Income for Fiscal Year 2024

First Northern Community Bancorp reported a net income of $20.0 million for the fiscal year ending December 31, 2024, reflecting a 7.1% decrease from the previous year's net income of $21.6 million. The earnings per share also declined, with basic earnings per share at $1.26, down from $1.35 in 2023. The decrease in profitability was primarily attributed to a reduction in net interest income, which fell to $64.4 million from $66.5 million in 2023, largely due to increased interest expenses on deposits. The net interest margin decreased to 3.60% from 3.70% in the prior year.

The company experienced a slight increase in total assets, which rose to approximately $1.89 billion, up from $1.87 billion in 2023. This growth was driven by a 10.7% increase in investment securities, totaling $633.9 million, while loans decreased slightly to $1.047 billion from $1.052 billion. The composition of the loan portfolio saw a notable shift, with commercial loans increasing by 10.3% to $117.9 million, while agricultural loans decreased by 12.5% to $92.6 million. Total deposits also saw a modest increase of 0.5%, reaching $1.70 billion.

In terms of strategic developments, First Northern completed the acquisition of three branches from Columbia State Bank in January 2023, which contributed to an increase in core deposits and expanded the company's footprint. The acquisition resulted in a bargain purchase gain of $1.4 million in 2023, which was not repeated in 2024, contributing to the decline in non-interest income, which fell to $6.0 million from $7.8 million in the previous year.

Operationally, the company employed 187 full-time equivalent employees as of December 31, 2024, maintaining a stable workforce. The allowance for credit losses decreased to $15.9 million, or 1.49% of total loans, down from $16.6 million, or 1.55%, in 2023. The company reported a reversal of provision for credit losses of $0.3 million in 2024, compared to a provision of $1.1 million in 2023, indicating improved asset quality.

Looking ahead, First Northern Community Bancorp anticipates continued challenges due to economic conditions and regulatory changes. The company remains focused on maintaining its capital position, with stockholders' equity increasing to $176.3 million, a 10.7% rise from the previous year. The management believes that the current capital levels are adequate to support future growth and navigate potential market fluctuations.