First Northern Community Bancorp · NASDAQ:FNRN
First Northern Community Bancorp — Investor Presentation (June 2024)
30 slides from First Northern Community Bancorp's investor presentation, Jun 18, 2024
Slide 1: Investor Presentation June 18, 2024
Investor Presentation Date of Pres 2024 Investor Presentation June 18, 2024 First Northern Community Bancorp
Slide 2: Disclaimer
Disclaimer This investor presentation has been prepared by First Northern Community Bancorp (the “Company” or “FNRN”) solely for informational purposes based on its own information, as well as information from public sources. Certain of the information contained herein may be derived from informatio
Slide 3: First Northern Community Bancorp Branches
First Northern Community Bancorp Branches Community bank headquartered in Greater Sacramento Region; Opened in 1910 1910 EST, Strategic Footprint: 14 Branches; Colusa Branch (Colusa County), Willows and Orland Branches (Glenn County) acquired January 2023 86.5% of Deposits are Core Deposits 3 Experi
Slide 4: Senior Management Team
Senior Management Team 4 AMANDA CONNELL Senior Vice President KEVIN SPINK First Northern Community Bancorp JEFFREY ADAMSKI DENISE E. BURRIS MIKE WEBBERSenior Vice President Marketing & Communications Director JEREMIAH Z. SMITH President & CEO First Northern Bank & First Northern Community Bancorp BR
Slide 5: Our Purpose Statement
First Northern Bank exists to build long-lasting relationships where we can address specific financial needs on a personalized basis, provide opportunities for our employees, and be committed and passionate about making a difference in our communities. Our Purpose Statement 5
Slide 6: Attractive Markets
Attractive Markets 2022 Population: 449K 2022 Median Household Income: $93K 2023 Business Core Deposit Market Share: 16.78% 2022 Population: 222K 2022 Median Household Income: $82K 2023 Business Core Deposit Market Share: 24.33% 2022 Population: 1.6M 2022 Median Household Income: $84K 2023 Business
Slide 7: Diverse Commercial Client Portfolio (by industry)
Diverse Commercial Client Portfolio (by industry) 7 As of March 31, 2024
Slide 8: Competitive Advantages
While many banks claim to offer exceptional customer service, our annual customer retention rate of over 97% speaks volumes about our dedication to satisfying our customers. Maintaining our dominance in community bank market share within our key markets solidifies our position as the top choice. Commi
Slide 9: Investment Highlights
Investment Highlights 9 Capacity to Grow Featured Business Lines Consistent organic growth Robust capital levels Attractive markets SBA Preferred Lender Focus on local commercial lending relationships Core deposit franchise Strong Balance Sheet Favorable liquidity position Long history of low credit
Slide 10: Financial Highlights
Financial Highlights FIRST NORTHERN ILLEE OMMUNITY B: PEOPLE FIRST - ABSOLUTE INTEGRITY SZESI FOR EXCEREENGE 10
Slide 11: Results 2024 as of March 31, 2024
Results 2024 as of March 31, 2024 Strong Balance Sheet Growth Consistent Profitability (Year to Date) Positive Trends in Key Metrics Continued Strong Credit Quality Total Assets $1.89 Billion PTPP Earnings1 $5.6 Million ROAA 0.92% NPAs/Assets 0.5% Total Gross Loans $1.05 Billion Net Income $4.3 Milli
Slide 12: Consistent Balance Sheet Growth
12 Consistent Balance Sheet Growth Total Assets ($B) Total Deposits ($B) Total Gross Loans (Includes LHFS) ($MM) Total Equity ($MM) CAGR = Compound Annual Growth Rate CAGR = 7.5% CAGR = 5.6% CAGR = 3.8% CAGR = 8.0 % 133 151 151 125 159 162
Slide 13: Strong Profitability
13 Strong Profitability Net Income ($MM) Net Interest Income ($MM) Non-interest Expense ($MM) Pre-Tax, Pre-Provision Income ($MM)
Slide 14: Liquidity as of March 31, 2024
Liquidity as of March 31, 2024 14 Low Loan to Deposit Ratio Provides Margin Expansion Opportunities Ample Liquidity and Room for Loan Growth
Slide 15: Investment Portfolio
Investment Portfolio by fair value, as of March 31, 2024 Effective duration of 2.99 100% of investment securities classified as available for sale. Stable steady cash flow profile in both up and down rate scenarios provides ongoing reinvestment opportunities and liquidity. 15.2% 39.7% 20.1% 15.9% 9.0% 1
Slide 16: Loan Portfolio as of March 31, 2024
2024 loan yield through Represents a 7.7% improvement March 31, 2024 = 5.16%. over the 4.79% loan yield achieved for the first quarter of 2023. Loan Portfolio as of March 31, 2024 Interest Income ($000) & Yields on Loans 16 March 2024 LOAN MIX
Slide 17: Sound Credit Culture as of March 31, 2024
Commercial $266 $363 $133 $---- $---- 139 Commercial Real Estate 466 4,875 555 ---- ---- ---- Agriculture ---- 9,130 8,712 7,416 2,871 2,728 Residential Mortgage 172 153 138 123 424 1,315 Residential Construction ---- ---- ---- ---- ---- 4,000 Consumer 253 690 659 637 703 602 Total Nonaccrual $1,157
Slide 18: Attractive Deposit Franchise
Attractive Deposit Franchise as of March 31, 2024 Core Deposits 44.0% 22.5% 25.5% 8.0% 18 Q1 2024 DEPOSIT MIX
Slide 19: Strong Deposit Mix Drives Low Cost of Funds
Strong Deposit Mix Drives Low Cost of Funds 19 Non-Interest Bearing Deposits ($000) Interest Bearing Deposits ($000)
Slide 20: Robust Capital Position
Robust Capital Position 20 * Regulatory Capital - Bank Only 1 – Tangible common equity to tangible assets (the “tangible common equity ratio”) is a non-U.S. GAAP financial measure derived from U.S. GAAP based amounts. Refer to the non-GAAP reconciliation on page 27 for a reconciliation to U.S. GAAP-
Slide 21: Per Share Data
Per Share Data Basic Earnings per Share (EPS) Tangible Book Value per Share 21 1 1 – Tangible book value per share is a non-U.S. GAAP financial measure derived from U.S. GAAP based amounts. Refer to the non-GAAP reconciliation on page 27 for a reconciliation to U.S. GAAP-based amounts. 1
Slide 22: NASDAQ Peer Comparison
a NASDAQ Peer Comparison TotalAssets Market Cap. PLIMEPS LIM/ROATCE —_ Total Return thru 5/31/24 Company Name Ticker City, State (inbillions) —{inmillions) Price/Book As of March 31,2024 wD «1Year 10Year Bank of Marin Bancorp BMRC Novato, CA $3.8 $241.4 0.56 17.98 14.0% -28.0% 0.5% + —-7.6% Sierra B
Slide 23: People First - Absolute Integrity - Zest for Excellence
PEOPLE FIRST - ABSOLUTE INTEGRITY - ZEST FOR EXCELLENCE
Slide 24: Community Reinvestment
Elk Grove Food Bank Sacramento Century Ride for Families in Need Acres of Hope, Auburn, CA Keaton’s Cancer Alliance, Roseville, CA Community Reinvestment of Community Service since 2006 in Donations made to local non-profits since 2001. 104,532+ Hours $3.5 Million Through volunteerism and service on
Slide 25: Rankings and Recognition
Rankings and Recognition NATIONAL & STATE LOCAL Bauer Financial, Inc. Top Ranking “5-Star Superior” Veribanc, Inc. Rated “Green 3-Stars” American Banker Magazine Ranked in the Top 200 Community Banks in the nation (2019-2022). In 2022, First Northern Bank was one of 23 California banks that made the
Slide 26: Appendix
• • PEOPLE FIRST ABSOLUTE INTEGRITY ZEST F OR EXCELLENCE 26 • • Appendix
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangible common equity to tangible assets (the "tangible common equity ratio") and tangible book value per share are non-U.S. GAAP financial measures derived from U.S. GAAP-based amounts. We calculate the tangible common equity ratio by excluding the balance of intangible ass
Slide 28: Non-GAAP Reconciliation
28 Non-GAAP Reconciliation For periods presented below, efficiency ratio is a non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. This figure represents the ratio of non-interest expense less other real estate owned operations and amortization of intangible assets expense to the su
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Pre-tax, pre-provision income is an non-U.S. GAAP financial measure derived from U.S. GAAP-based amounts. We calculate pre-tax, pre-provision income by excluding income tax and provision for credit losses from net income. Management believes that the exclusion of such items f
Slide 30: Thank You
30 First Northern Community Bancorp June 18, 2024 THANK YOU
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