First Northern Community Bancorp Announces Stock Repurchase Program

Rhea-AI Summary

The Board of Directors of First Northern Community Bancorp (FNRN) announced a stock repurchase program allowing buybacks of up to 4% of its outstanding shares, totaling 547,203 shares, beginning June 15, 2021, and ending June 14, 2023. With a closing price of $11.35 on June 2, 2021, this could represent approximately $6.2 million in repurchases. The program aims to enhance shareholder value, improve return on equity, and provide market liquidity. The Board confirmed that the buybacks will not adversely affect the company's capital.

Positive

• Stock repurchase program may enhance shareholder value by increasing return on equity.
• The program is designed to improve market liquidity for FNRN shares.

Negative

• Potential opportunity cost of using capital for buybacks instead of growth investments.

The Board of Directors of First Northern Community Bancorp (FNRN), holding company of First Northern Bank, has announced a stock repurchase program for the Company’s outstanding common stock. Based on market conditions, share repurchases may be made from time to time in the open market or in privately negotiated transactions. The repurchase program will begin June 15, 2021 and will remain in effect until June 14, 2023. The program allows repurchases in an aggregate amount of no more than 4% of First Northern Community Bancorp’s 13,680,085 outstanding shares of common stock as of March 31, 2021. This represents total shares of 547,203 eligible for repurchase which, at the closing price of $11.35 on June 2, 2021, would equate to total consideration of approximately $6.2M if all eligible shares were repurchased. The Board of Directors has determined that the maximum aggregate repurchases will not impair the capital of the Corporation. Any repurchases are intended to be conducted in accordance with the limitations, guidelines, and restrictions relative to timing, price, manner, and volume of Rule 10b-18 promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.

The stock repurchase program is intended to provide management with an effective mechanism for capital management, increase return on equity to our existing shareholders and provide additional market liquidity for our common shares outstanding. Commenting on the stock repurchase program, Louise Walker, President & Chief Executive Officer said, “The Bancorp’s stock repurchase program demonstrates our ongoing commitment to providing fundamental value for our shareholders.”

About First Northern Bank

First Northern Bank is an independent community bank that specializes in relationship banking. The Bank, headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer, and Contra Costa Counties, as well as the west slope of El Dorado County. Experts are available in small-business, commercial, real estate and agribusiness lending, as well as mortgage loans. The Bank is an SBA Preferred Lender. Non-FDIC insured Investment and Brokerage Services are available at every branch location, including Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville, Auburn and Rancho Cordova. The Bank also has a commercial lending office in Walnut Creek. Real estate mortgage and small-business loan officers are available by appointment in any of the Bank’s 11 branches. First Northern is rated as a Veribanc “Blue Ribbon” Bank and a “5-Star Superior” Bank by Bauer Financial for the earnings period ended March 31, 2021 (www.veribanc.com) and (www.bauerfinancial.com). The Bank can be found on the Web at thatsmybank.com, on Facebook and on LinkedIn.

Forward Looking Statements

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in First Northern'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 from those contained in the forward-looking statements. First Northern disclaims any intent or obligation to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210602006116/en/

FAQ

What is the purpose of FNRN's stock repurchase program?

The stock repurchase program aims to enhance shareholder value, increase return on equity, and improve market liquidity.

When does FNRN's stock repurchase program start and end?

The stock repurchase program will begin on June 15, 2021, and will remain in effect until June 14, 2023.

How many shares is FNRN planning to repurchase?

FNRN plans to repurchase up to 547,203 shares, equating to 4% of its outstanding shares.

What is the estimated value of FNRN's stock repurchase program?

If all eligible shares are repurchased, it would equate to approximately $6.2 million based on a closing price of $11.35.

Will the stock buyback program affect FNRN's capital?

The Board has confirmed that the stock repurchases will not impair the capital of the Corporation.