FIRST NORTHERN COMMUNITY BANCORP
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
What changed in Risk Factors?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001140361-24-025147
ITEM 1A. – RISK FACTORSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001140361-24-036573
ITEM 1A. – RISK FACTORSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 9 previous paragraphs and 16 current paragraphs.
6 unchanged; 2 reworded; 7 added; 1 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Increases in the Allowance for Credit Losses Would Adversely Affect the Bank’s Financial Condition and Results of Operations
Current report
The Bank’s allowance for credit losses on loans was approximately $17.0 million, or 1.60% of total loans, at June 30, 2024, compared to $16.6 million, or 1.55% of total loans, at December 31, 2023, and 250.2% of total non-performing loans net of guaranteed portions at June 30, 2024, compared to 199.1% of total non-performing loans, net of guaranteed portions at December 31, 2023. Provision for credit losses totaling $1.1 and $2.6 million for the three month periods ended June 30, 2024 and June 30, 2023, respectively. Provision for credit losses totaling $0.8 and $2.6 million for the six month periods ended June 30, 2024 and June 30, 2023, respectively.
Current report
Material future additions to the allowance for estimated losses on loans may be necessary if material adverse changes in economic conditions in our markets were to continue to occur and the performance of the Bank’s loan portfolio were to deteriorate.
Current report
Other real estate owned is initially recorded at fair value less estimated costs to sell the property, thereby establishing the new cost basis of other real estate. Losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. Subsequent to acquisition, such properties are carried at the lower of cost or fair value less estimated selling expenses, determined on an individual asset basis. Any deficiency resulting from the excess of cost over fair value less estimated selling expenses is recognized as a valuation allowance. Any subsequent increase in fair value up to its cost basis is recorded as a reduction of the valuation allowance. The FDIC and the California DFPI, as an integral part of their examination process, periodically review the Bank’s allowance for credit losses on loans and the carrying value of its assets. Increases in the provision for credit losses on loans and valuation allowance on foreclosed assets would adversely affect the Bank’s financial condition and results of operations.
Current report
The Bank’s primary lending focus has historically been commercial (including agricultural), construction, and real estate mortgage. At June 30, 2024, real estate mortgage (excluding loans held-for-sale) and construction loans (residential and other) comprised approximately 90% and 3%, respectively, of the total loans in the Bank’s portfolio. At June 30, 2024, all of the Bank’s real estate mortgage and construction loans and approximately 1% of its commercial loans were secured fully or in part by deeds of trust on underlying real estate. The Company’s dependence on real estate increases the risk of loss in both the Bank’s loan portfolio and its holdings of other real estate owned if economic conditions in Northern California were to deteriorate. Deterioration of the real estate market in Northern California would have a material adverse effect on the Company’s business, financial condition, and results of operations.
Current report
The CFPB has adopted various regulations which have impacted, and will continue to impact, our residential mortgage lending business.
Removed paragraphs (1)
Reworded paragraphs (2)
Previous wording
For a discussion of risk factors relating to our business, please refer to Part I, Item 1A of our 2023 Report on Form 10-K, which is incorporated by reference herein.
Current wording
For a discussion of risk factors relating to our business, please refer to Part I, Item 1A of our 2023 Form 10-K, which is incorporated by reference herein, and to the following:
Previous wording
At March 31, 2024, real estate mortgage (excluding loans held-for-sale) and construction loans (residential and other) comprised approximately 89% and 3%, respectively, of the principal amount of total loans in the Bank’s portfolio. At March 31, 2024, all of the Bank’s real estate mortgage and construction loans were secured fully or in part by deeds of trust on underlying real estate. Most of the Company’s customers, including its loan customers, are located in the State of California.
Current wording
At June 30, 2024, real estate mortgage (excluding loans held-for-sale) and construction loans (residential and other) comprised approximately 90% and 3%, respectively, of the principal amount of total loans in the Bank’s portfolio. At June 30, 2024, all of the Bank’s real estate mortgage and construction loans were secured fully or in part by deeds of trust on underlying real estate. Most of the Company’s customers, including its loan customers, are located in the State of California.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Bank’s Dependence on Real Estate Lending Increases Our Risk of Losses