SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2022

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

12.           SUBSEQUENT EVENTS

On November 5, 2022, First Northern Bank of Dixon (the “Bank”), a wholly-owned subsidiary of the Company, entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with Columbia State Bank, a Washington state-chartered commercial bank (“Columbia”) and a wholly-owned subsidiary of Columbia Banking System, Inc., to acquire three branches of Columbia located at: 558 Market Street, Colusa, California; 328 Walker Street, Orland, California; and 155 N. Tehama Street, Willows, California.

Pursuant to the Purchase Agreement, the Bank will acquire these branches for consideration totaling 3.15% of the average daily closing balance of certain deposit accounts plus the net book values of certain assets of Columbia and accrued interest and fees with respect to certain loans.  At the closing of the acquisition, and subject to the terms of the Purchase Agreement, the Bank will assume the deposit liabilities related to certain accounts. The aggregate deposits to be assumed totaled approximately $128 million, and the aggregate principal balance of the loans to be acquired totaled approximately $4 million. The final consideration will be based on balances at closing.