First Northern Community Bancorp operates as the bank holding for First Northern Bank of Dixon that provides a full range of community banking services to individual and corporate customers throughout the California counties of Solano, Yolo, Placer, and Sacramento, as well as portions of El Dorado and Contra Costa counties. The company owns 100% of the capital stock of Yolano Realty Corporation, a subsidiary created for the purpose of managing selected other real estate owned properties.
The co...
First Northern Community Bancorp operates as the bank holding for First Northern Bank of Dixon that provides a full range of community banking services to individual and corporate customers throughout the California counties of Solano, Yolo, Placer, and Sacramento, as well as portions of El Dorado and Contra Costa counties. The company owns 100% of the capital stock of Yolano Realty Corporation, a subsidiary created for the purpose of managing selected other real estate owned properties.
The company owns branches of Columbia State Bank, a Washington state-chartered commercial bank (Columbia), and a wholly-owned subsidiary of Columbia Banking System, Inc., in the California towns of Colusa, Orland and Willows. The company has full-service branches located in the cities of Auburn, Colusa, Davis, Dixon, Fairfield, Orland, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, Willows and Woodland. The company has satellite banking office inside a retirement community in the city of Davis and a residential mortgage loan office in Davis. The company engages financial advisors, through Raymond James Financial Services, Inc., who offer non-FDIC insured investment and brokerage services throughout the region from offices strategically located in West Sacramento, Davis and Auburn. The bank also has a commercial loan office in the Contra Costa County city of Walnut Creek that serves the East Bay Area’s small- to medium-sized business lending needs. The bank’s operations center is located in Dixon and provides back-office support including information services, central operations, and the central loan department.
The bank is in the commercial banking business and generates most of its revenue by providing a wide range of products and services to small- and medium-sized businesses and individuals including accepting demand, interest bearing transaction, savings, and time deposits, and making commercial, consumer, and real estate related loans. It also issues cashier’s checks, rents safe deposit boxes, and provides other customary banking services.
The company offers a broad range of alternative investment products, fiduciary and other financial services through Raymond James Financial Services, Inc. The company also offers equipment leasing, credit cards, merchant card processing, payroll services, and limited international banking services through third parties.
Commercial: Commercial loans, whether secured or unsecured, generally are made to support the short-term operations and other needs of small businesses. These loans are generally secured by the receivables, equipment, and other real property of the business.
Commercial Real Estate: Commercial real estate loans generally fall into two categories: owner-occupied and non-owner occupied. Loans secured by owner-occupied real estate are primarily susceptible to changes in the market conditions of the related business.
Agriculture: Agricultural loans, whether secured or unsecured, generally are made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or service. Agricultural loans are generally secured by inventory, receivables, equipment, and other real property. Agricultural loans primarily are susceptible to changes in market demand for specific commodities.
Residential Mortgage Loans: Residential mortgage loans, which are secured by real estate, are primarily susceptible to four risks; non-payment due to diminished or lost income, over-extension of credit, a lack of borrower’s cash flow to sustain payments, and shortfalls in collateral value.
Residential Construction Loans: Construction loans, whether owner-occupied or non-owner occupied residential development loans, are not only susceptible to the risks related to residential mortgage loans, but the added risks of construction.
Consumer: Consumer loans, whether unsecured or secured, are primarily susceptible to four risks: non-payment due to diminished or lost income, over-extension of credit, a lack of borrower’s cash flow to sustain payments, and shortfall in collateral value.
Investment Portfolio
As of December 31, 2023, the company’s investment portfolio included U.S. Treasury securities; securities of U.S. government agencies and corporations; obligations of states and political subdivisions; collateralized mortgage obligations; and mortgage-backed securities.
Deposits
The company’s deposits include demand, interest-bearing transaction deposits, savings and MMDAs, time, $250,000 or less, and time, over $250,000.
Supervision and Regulation
The company is a bank holding company subject to the Bank Holding Company Act of 1956, as amended (BHCA). The company reports to, registers with, and is subject to supervision and examination by, the Board of Governors of the Federal Reserve System (FRB). The FRB also has the authority to examine the company’s subsidiaries.
The bank is subject to regulation, supervision and regular examination by the Financial Institutions Division of the California Department of Financial Protection and Innovation (DFPI) and the FDIC. The bank is a member of the Federal Deposit Insurance Corporation (FDIC) and all deposit accounts are insured by the FDIC to the maximum amount permitted by law, currently $250,000 per depositor. Most of the bank’s deposits are attracted from the market of northern and central Solano County, southern and central Yolo County and Placer County. The bank’s deposits are not received from a single depositor or group of affiliated depositors, the loss of any one which would have a materially adverse impact on the business of the bank. A material portion of the bank’s deposits are not concentrated within a single industry group of related industries.
While the bank is not a member of the FRB, it is directly subject to certain regulations of the FRB dealing with such matters as check clearing activities, establishment of banking reserves, Truth-in-Lending (Regulation Z), and Equal Credit Opportunity (Regulation B). The bank is also subject to regulations of (although not direct supervision and examination by) the Consumer Financial Protection Bureau (CFPB), which was created by the Dodd-Frank Wall Street Reform and Protection Act (Dodd-Frank Act).
The company complies with all provisions of the Gramm-Leach-Bliley Act (GLBA) and all implementing regulations, and that the bank has developed appropriate policies and procedures to meet its responsibilities in connection with the privacy provisions of GLBA.
The bank is a member of the Deposit Insurance Fund (DIF) maintained by the Federal Deposit Insurance Corporation (FDIC). Through the DIF, the FDIC insures the deposits of the bank up to prescribed limits for each depositor.
The bank is subject to certain fair lending requirements and reporting obligations involving its home mortgage lending operations and is also subject to the Community Reinvestment Act (CRA).
The Dodd-Frank Act, enacted in 2010, has resulted in sweeping changes to the U.S. financial system and financial institutions, including the company.
Competition
For agricultural loans, the bank competes with constituent entities with the Federal Farm Credit System.
History
First Northern Community Bancorp was founded in 1910.
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