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FIRST NORTHERN COMMUNITY BANCORP (FNRN)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 diluted EPS was $0.37 and net income was $5.8M, down 15.1% year over year due to a materially smaller reversal of provision for credit losses versus Q4 2023 when the bank recovered $2.6M from a non‑performing agricultural loan payoff .
- Balance sheet ended strong: total assets $1.89B (+1.1% YoY) and deposits $1.70B (+0.5% YoY); stockholders’ equity was $176.3M (+10.7% YoY), increasing book value per share to $11.06 from $9.80 in 2023 .
- Cost discipline and funding mix continued to support profitability; management highlighted full‑year cost of funds at 0.84% despite higher rate environment and a 1.9% YoY decline in non‑interest expenses .
- Board declared a 5% stock dividend payable March 25, 2025 (record date Feb 28, 2025), a near‑term shareholder return catalyst .
- No earnings call transcript or formal guidance was available; consensus estimates (S&P Global) were unavailable at time of writing due to request limits, preventing beat/miss analysis [GetEstimates error – S&P Global values unavailable].
What Went Well and What Went Wrong
What Went Well
- Deposit costs and funding remained attractive: “our total cost of funds remained low at just 0.84% for the year,” underpinning net interest income resilience in a high‑rate environment .
- Capital and book value increased materially: stockholders’ equity +10.7% YoY to $176.3M and book value per share rose to $11.06, reflecting earnings retention and AOCI dynamics across the year .
- Credit resolution success earlier in the year: Q3 saw “successful resolution and full collection of a non‑performing loan relationship,” reducing nonaccruals by 41% and enabling a $550k reversal of provision; management also delivered deposit growth of $25M while “maintaining our net interest margin” .
What Went Wrong
- Q4 YoY earnings decline: net income fell 15.1% YoY to $5.8M as the reversal of provision dropped to $450k versus $2.0M in Q4 2023; the prior year benefited from a one‑off $2.6M recovery on a non‑performing agricultural loan .
- Loan balances dipped in Q4: total net loans were $1.047B, down 0.5% YoY, primarily from reductions in agricultural and residential construction, partially offset by commercial loan growth .
- Deposit base growth muted YoY: deposits ended Q4 at $1.70B (+0.5% YoY), and Q3 press release noted deposits were down 0.8% YoY at that time, highlighting a mixed trajectory through 2024 .
Financial Results
Quarterly Results (Income and EPS)
Sequential Changes (QoQ)
Year-over-Year (YoY) Comparisons by Quarter
Profitability and Return Metrics (YTD basis)
Balance Sheet and Shareholder Metrics
Guidance Changes
No other quantitative guidance (revenue, margins, OpEx, OI&E, tax rate) was disclosed in Q4 materials .
Earnings Call Themes & Trends
No Q4 2024 earnings call transcript was available; themes below synthesize management commentary across Q2, Q3, and Q4 press releases.
Management Commentary
- “Compared to 2023, total interest and dividend income increased by $4.5 million, or 6.1%, while total non‑interest expenses decreased by $849,000, or 1.9%... our deposit costs were carefully managed. As a result, our total cost of funds remained low at just 0.84% for the year.” — Jeremiah Z. Smith, President & CEO (Q4 release) .
- “We remain committed to improving shareholder value, with total stockholders’ equity of $176.3 million at year‑end 2024... book value per share... rose from $9.80 at the end of 2023 to $11.06 at the end of 2024.” — Jeremiah Z. Smith (Q4 release) .
- “We are pleased with our performance during the third quarter with deposit growth of $25 million during the quarter while maintaining our net interest margin.” — Jeremiah Z. Smith (Q3 release) .
- “We saw successful resolution and full collection of a non‑performing loan relationship... nonaccrual loans decreased... This resolution contributed to the reversal of the provision for credit losses of $550 thousand for the quarter.” — Jeremiah Z. Smith (Q3 release) .
- “Our net interest margin improving from 3.49% in the first quarter of 2024 to 3.65% in the second quarter... We continued to fund our balance sheet favorably, with 43.4% of average total deposits being non‑interest bearing.” — Jeremiah Z. Smith (Q2 release) .
Q&A Highlights
No Q4 2024 earnings call transcript was available; therefore, no Q&A commentary, clarifications, or tone assessment can be provided from a call transcript [ListDocuments earnings-call-transcript: none].
Estimates Context
- Wall Street consensus estimates (S&P Global) for Q4 2024 EPS and revenue were unavailable due to request limits at time of analysis, so we cannot provide beat/miss determination against consensus. Values retrieved from S&P Global were unavailable due to request limits.
Key Takeaways for Investors
- Earnings normalization: Q4 YoY decline reflects lower provision reversal tailwinds versus a uniquely favorable Q4 2023 recovery; underlying operations remain supported by attractive funding costs and disciplined expenses .
- Funding advantage: Cost of funds at 0.84% (FY) is a competitive tailwind for NII durability if deposit mix remains favorable and rate pressures moderate .
- Capital and BVPS build: Equity and BVPS increased meaningfully YoY, enhancing loss‑absorption capacity and shareholder value; short‑term catalyst from 5% stock dividend declaration .
- Credit dynamics: Positive credit resolutions earlier in the year narrowed in Q4; watch provisioning trends and nonaccruals as tailwinds subside .
- Loan mix: Commercial loan growth offsets weakness in agricultural and residential construction; trajectory into 2025 depends on regional macro conditions and demand .
- Efficiency actions: Ongoing cost controls (workforce and incentive adjustments) improving operating leverage; monitor sustainability of non‑interest expense reductions amid inflation .
- Data watch: With no guidance or consensus available here, monitor upcoming filings for NIM trends, deposit betas, and credit costs to assess earnings path and potential estimate revisions.