First Northern Community Bancorp (FNRN) risk factors, FY2024 10-K

First Northern Community Bancorp's FY2024 10-K, filed Mar 07, 2025, lists 20 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
200 groups
Section length
10k wordsItem 1A

First Northern Community Bancorp's biggest risks in the FY2024 10-K

  • The bank's risk profile centers on commercial and real estate loan concentration in California.
  • Regional bank failures, California wildfires, and home insurance pullbacks increase credit and default risks.

The risks most specific to First Northern Community Bancorp

  • Recent Negative Developments in the Banking Industry, and any Legislative and/or Bank Regulatory Actions that may Result, Could Adversely Affect our Business Operations, Results of Operations and Financial Condition

    Failures of banks like Silicon Valley Bank and Signature Bank can create significant market trading volatility and negative attention for regional and community banks like us.

  • The Bank is Subject to Lending Risks of Loss and Repayment Associated with Commercial Banking Activities

    Our heavy focus on commercial business, agricultural, construction, and real estate loans exposes us to borrower cash flow problems and economic downturns.

  • Increases in the Allowance for Credit Losses Would Adversely Affect the Bank’s Financial Condition and Results of Operations

    Our allowance for credit losses was $15.9 million, or 1.49% of total loans, at December 31, 2024, and future increases would harm our financial condition.

  • The Bank’s Dependence on Real Estate Lending Increases Our Risk of Losses

    Real estate mortgage loans and construction loans comprised approximately 90% and 3% of our total loan portfolio at December 31, 2024, increasing our risk of loss.

  • Industry specific risks are beyond the Bank’s control and could adversely affect the Bank’s portfolio of loans, potentially resulting in an increase in non-performing loans or charge-offs and a slowing of growth or reduction in our loan portfolio

    Wildfires across California and our market areas have caused significant property destruction and economic damage to our customers, increasing non-performing loans and charge-offs.

  • The long-term impact of these developments on the markets we serve cannot be predicted at this time

    California home insurance providers pausing or limiting new policies could increase the risk of loss in our real estate secured loan portfolio.

  • The Bank is Subject to Interest Rate Risk

    Our income depends heavily on interest rate differentials between our interest-earning assets and interest-bearing liabilities like deposits and borrowings.

  • Competition Adversely Affects our Profitability

    Major commercial banks with larger capital bases and lending limits dominate our primary market area in California and adversely affect our profitability.

  • There is a Limited Public Market for the Company’s Common Stock Which May Make It Difficult for Shareholders to Dispose of Their Shares

    Our common stock is not listed on an exchange and trades only on the OTC Markets under the symbol FNRN, creating a limited public market.

All 20 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Recent Negative Developments in the Banking Industry, and any Legislative and/or Bank Regulatory Actions that may Result, Could Adversely Affect our Business Operations, Results of Operations and Financial Condition
  2. 02The Bank is Subject to Lending Risks of Loss and Repayment Associated with Commercial Banking Activities
  3. 03Increases in the Allowance for Credit Losses Would Adversely Affect the Bank’s Financial Condition and Results of Operations
  4. 04Material 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
  5. 05The Bank’s Dependence on Real Estate Lending Increases Our Risk of Losses
  6. 06Adverse Economic Factors Affecting Certain Industries the Bank Serves Could Adversely Affect Our Business
  7. 07Industry specific risks are beyond the Bank’s control and could adversely affect the Bank’s portfolio of loans, potentially resulting in an increase in non-performing loans or charge-offs and a slowing of growth or reduction in our loan portfolio
  8. 08The long-term impact of these developments on the markets we serve cannot be predicted at this time
  9. 09borrowers, improving underwriting standards, and increasing accountability and transparency in the securitization process
  10. 10The Bank is Subject to Interest Rate Risk
  11. 11Our Ability to Pay Dividends is Subject to Legal Restrictions
  12. 12Competition Adversely Affects our Profitability
  13. 13Government Regulation and Legislation Could Adversely Affect the Company
  14. 14Changes in Deposit Insurance Premiums Could Adversely Affect Our Business
  15. 15Negative Public Opinion Could Damage Our Reputation and Adversely Affect Our Earnings
  16. 16Changes in Accounting Standards Could Materially Impact Our Financial Statements
  17. 17There is a Limited Public Market for the Company’s Common Stock Which May Make It Difficult for Shareholders to Dispose of Their Shares
  18. 18Information Security Breaches or Other Technological Difficulties Could Adversely Affect the Company
  19. 19Environmental Hazards Could Have a Material Adverse Effect on the Company’s Business, Financial Condition, and Results of Operations
  20. 20The Company May Not Be Successful in Raising Additional Capital Needed in the Future

Other First Northern Community Bancorp 10-Ks

  • FY2025 10-K risk factors
    19 risks1 dropped9 reworded

    Allowance for credit losses decreased to $14.5 million or 1.36% of total loans at December 31, 2025. Real estate-secured loans decreased from 87% to 84% of total loans.

    Filed Mar 13, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.