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CST: 12/08/2020 13:08:39   

FNCB Bancorp, Inc. Announces Increase in Third Quarter and Year-to-date 2019 Earnings

296 Days ago

DUNMORE, Pa., Oct. 21, 2019 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.403 million, or $0.12 per basic and diluted share, for the three months ended September 30, 2019, an increase of $553 thousand, or 29.9%, compared to net income of $1.850 million, or $0.11 per basic and diluted share, for the three months ended September 30, 2018. Net income for the nine months ended September 30, 2019 was $7.587 million, or $0.39 per basic and diluted share, an increase of $1.306 million, or 20.8%, from $6.281 million for the same year-to-date period of 2018. The increase in third quarter and year-to-date earnings primarily reflected a reduction in the provision loan and lease losses and an increase in non-interest income, partially offset by a decrease in net interest income and an increase in non-interest expense. 

For the three months and nine months ended September 30, 2019, the annualized return on average assets was 0.80% and 0.84%, respectively, and 0.59% and 0.69%, respectively, for the same periods of 2018. The annualized return on average equity was 7.30% and 8.32%, respectively, for the three- and nine-month periods ended September 30, 2019, and 8.41% and 9.68%, respectively, for the comparable periods of 2018. Dividends declared and paid were $0.05 per share for the third quarter and $0.15 per share for the year-to-date period of 2019, a 25.0% increase compared to $0.04 per share and $0.12 per share, respectively, for the three and nine months ended September 30, 2018. The dividend pay-out ratio for the nine months ended September 30, 2019, was 39.8%, compared to 30.3% for the comparable period of 2018.

Third Quarter 2019 Highlights:

  • 29.9% increase in net income comparing the third quarters of 2019 and 2018;  
  • Tax-equivalent yield on earning assets for the third quarter improved 18 basis points to 4.22% in 2019 from 4.04% in 2018;   
  • Tax-equivalent net interest margin for the third quarter of 2019 improved 7 basis points from the second quarter of 2019, and 11 basis points over the third quarter of 2018; and
  • Year-to-date 2019 dividend payout ratio of 39.8%.

“We are pleased with our Company's performance for the third quarter of 2019. Our ability to improve the tax-equivalent net interest margin for the second consecutive quarter, reflects positively on the asset/liability management employed," stated Gerard A. Champi, President and Chief Executive Officer. "Despite the challenging interest rate environment, we were able to increase the tax-equivalent yield on both the loan and investment portfolios, on a linked quarter basis, as well as comparing the third quarters of 2019 and 2018," continued Champi. "We realize there is more work to accomplish. For the remainder of 2019 and looking ahead to 2020, we are focused on furthering core deposit relationships within the personal and business sectors, enhancing non-interest revenue, and sustaining our asset quality," Champi concluded. 

Summary Results 

For the three months ended September 30, 2019, tax-equivalent net interest income decreased $0.2 million, or 2.5% to $9.2 million from $9.4 million for the same three months of 2018, which primarily reflected a $0.2 million reduction in tax-equivalent interest income. Total interest expense was relatively stable, increasing only $17 thousand comparing the third quarters of 2019 and 2018. Specifically, interest income decreased $0.2 million, or 1.9%, to $11.6 million for the third quarter of 2019 from $11.8 million for the same quarter of 2018. The decrease in third quarter tax-equivalent interest income resulted primarily from reductions in the average balances of total loans and total investment securities of $39.6 million, or 4.6%, and $36.4 million, or 11.8%, respectively. Partially offsetting the lower average balances was an 18 basis-point increase in the tax-equivalent yield on earning assets to 4.22% for the three months ended September 30, 2019 from 4.04% for the same three months of 2018. Specifically, the tax-equivalent yield on the loan portfolio improved 19 basis points to 4.67% for the third quarter of 2019 from 4.48% for the respective quarter of 2018, while the tax-equivalent yield on investment securities increased 11 basis points to 2.95% from 2.84% comparing the third quarters of 2019 and 2018, respectively. With respect to the quarter over quarter change in interest expense, reductions in the average balances of total interest-bearing deposits and borrowed funds were more than entirely offset by an increase in the cost of funds. For the nine months ended September 30, 2019, tax-equivalent net interest income decreased $0.4 million, or 1.6% to $27.3 million, from $27.7 million for the same nine months of 2018. The decrease in year-to-date tax-equivalent net interest income primarily reflected rising deposit and borrowing costs and higher average balances of interest-bearing deposits, partially offset by a reduction in the average balance of borrowed funds. A 25 basis-point increase in the tax-equivalent yield on loans, coupled with a 4 basis-point increase in the tax-equivalent yield on investment securities, also positively impacted net interest income levels comparing the year-to-date periods of 2019 and 2018. Despite the increase for the quarter over quarter and year-to-date periods, funding costs have appeared to stabilize and remained at 1.11% for the three consecutive quarters of 2019.  Additionally, FNCB’s tax-equivalent net interest margin, which decreased in the third and fourth quarters of 2018 and the first quarter of 2019, increased 7 basis points to 3.32% for the third quarter of 2019 from 3.25% for the second quarter of 2019 and 18 basis points from 3.14% for the first quarter of 2019. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for the three and nine months ended September 30, 2019 and 2018.

For the three months ended September 30, 2019, non-interest income increased $511 thousand, or 38.7%, to $1.8 million from $1.3 million for the same three months of 2018. The quarter over quarter increase in non-interest income primarily reflected an increase in net gains on the sale of available-for-sale securities, coupled with increases in deposit service charges and other income. Comparing the year-to-date periods, non-interest income increased $556 thousand, or 12.7%, to $4.9 million in 2019 from $4.4 million in 2018. Similar to the reasons for the quarterly increase, the year-to-date increase was largely due to net gains on the sale of available-for-sale securities, higher deposit service charges and other income. Partially offsetting these increases for the year-to-date periods was a reduction in net gains on the sale of SBA guaranteed loans.  FNCB realized net gains on the sale of available-for-sale debt securities of $379 thousand and $702 thousand for the third quarter and year-to-date periods of 2019, respectively. There were no gains realized on the sale of securities for the three months ended September 30, 2018 and a net loss of $4 thousand for the year-to-date period of 2018.

For the three months ended September 30, 2019, non-interest expense increased by $141 thousand, or 2.0%, to $7.3 million from $7.2 million for the comparable three months of 2018. Non-interest expense for the nine months ended September 30, 2019, increased $490 thousand, or 2.3%, to $21.9 million from $21.4 million for the same nine months of 2018. The increase for the three-months ended September 30,2 019 as compared to the same period of 2018 was primarily attributable to increases in salaries and employee benefits and other operating expenses, partially offset by a reduction in regulatory assessments. The increase comparing the year-to-date periods primarily reflected increases in salaries and employee benefits and data processing costs, which were partially offset by reductions in regulatory assessments, occupancy and other operating expenses. 

Asset Quality

Total non-performing loans increased $0.8 million to $6.1 million, or 0.73% of total loans, at September 30, 2019 from $5.3 million, or 0.65%, of total loans at June 30, 2019, and $1.4 million, or 30.3%, from $4.7 million, or 0.56% of total loans at December 31, 2018. Additionally, FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) increased to 1.16% at September 30, 2019 from 0.99% at June 30, 2019 and 0.93% at December 31, 2018.  The allowance for loan and lease losses was $9.3 million, or 1.11% of total outstanding loans, at September 30, 2019, compared to $8.9 million, or 1.10% of total loans outstanding, at June 30, 2019 and $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management actively manages problem credits and employs prudent, appropriate workout strategies to resolve borrower difficulties and minimize loss to FNCB. Net charge-offs were $267 thousand, or an annual rate of 0.13% of average loans, for the three months ended September 30, 2019 compared to $781 thousand, or an annual rate of 0.36% of average loans, for the same three months of 2018. 

Financial Condition

Total assets decreased $1.6 million, or 0.13%, to $1.197 billion at September 30, 2019, from $1.199 billion at June 30, 2019.  The change in the balance sheet primarily reflected a decrease in available-for-sale debt securities, partially offset by increases in loans, net of net deferred loan costs and unearned income, and cash and cash equivalents. Available-for-sale debt securities decreased $31.2 million, or 10.9%, to $254.7 million at September 30, 2019 from $285.9 million at June 30, 2019. Proceeds from the sale of available-for-sale debt securities, not re-invested back into the portfolio, were used to fund loan demand and pay down wholesale funds. Loans, net of net deferred loan costs and unearned income, grew $22.5 million, or 2.8%, to $836.9 million at September 30, 2019, from $814.4 million at June 30, 2019, which primarily reflected the strong demand for commercial real estate, construction, land acquisition and development, and commercial and industrial loans. Total deposits increased $3.0 million, or 0.31%, to $964.1 million at September 30, 2019 from $961.1 million at June 30, 2019. Non-interest-bearing demand deposits increased $21.1 million, or 13.4%, to $179.0 million at September 30, 2019 from $157.9 million at June 30, 2019. The increase in non-interest-bearing deposits was partially offset by a reduction in interest-bearing deposits of $18.1 million, or 2.3%, to $785.1 million at September 30, 2019 from $803.2 million at June 30, 2019, which largely reflected the runoff of retail certificates of deposit and a cyclical reduction in public funds. Total borrowed funds decreased $7.8 million to $89.7 million at September 30, 2019 from $97.5 million at June 30, 2019, which was entirely comprised of a decrease in FHLB of Pittsburgh advances. Total assets decreased $40.5 million, or 3.3%, from $1.238 billion at December 31, 2018.  The decrease from December 31, 2018 resulted primarily from a $41.4 million, or 14.0% decrease in available-for-sale debt securities, coupled with a $2.2 million, or 0.26%, reduction in loans net of net deferred costs and unearned income. Total deposits decreased $131.6 million, or 12.0%, from $1.096 billion at December 31, 2018, which included a $75.8 million, or 100.0%, reduction in brokered deposits. Conversely, total borrowed funds increased $55.5 million, or 162.2%, from $34.2 million at December 31, 2018. 

Total shareholders’ equity increased $2.9 million, or 2.2%, to $132.6 million at September 30, 2019 from $129.7 million at June 30, 2019, which was predominantly due to net income for the third quarter of 2019, partially offset by dividends declared, coupled with a positive change in accumulated other comprehensive income. In comparison to $97.2 million at December 31, 2018, total shareholders' equity increased $35.3 million, or 36.4%. FNCB successfully completed a public offering of its common stock, which resulted in a net increase to capital after offering expenses of $21.3 million in the first quarter of 2019. Also factoring into the capital improvement was net income for the nine months ended September 30, 2019 of $7.6 million and a $9.1 million positive change in other comprehensive income related entirely to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $3.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.72% and 11.27%, respectively, at September 30, 2019 from 12.69% and 8.50%, respectively, at December 31, 2018.

Availability of Filings

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Reports on form 10-Q will be provided upon request from: Shareholder Relations, FNCB Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. FNCB’s SEC filings including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available free of charge on the Investor Relations page of the FNCB’s website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as a premier community bank in Northeastern Pennsylvania – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB currently operates through 17 community offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making its customers’ banking experience simply better. For more information about FNCB, visit www.fncb.com.

INVESTOR CONTACT:

James M. Bone, Jr., CPA
Executive Vice President and Chief Financial Officer               
FNCB Bank
(570) 348-6419
james.bone@fncb.com

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control). The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary, fiscal and tax policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business, including for deposit and loan growth: the composition and concentrations of FNCB’s lending risk and the adequacy of FNCB’s reserves to manage those risks; the valuation of FNCB’s investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB stock and fluctuations in the value of FNCB’s share price; the effectiveness of FNCB’s system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services’ laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; the impact of technological changes and security risks upon our information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of FNCB at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in FNCB’s filings with the SEC.

FNCB cautions that the foregoing list of important factors is not all inclusive. Readers are also cautioned not to place undue reliance on any forward-looking statements, which reflect management’s analysis only as of the date of this report, even if subsequently made available by FNCB on its website or otherwise. FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this report.

Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2018.


FNCB Bancorp, Inc.
Selected Financial Data
                               
    Sept 30,     Jun 30,     Mar 31,     Dec 31,     Sept 30,  
    2019     2019     2019     2018     2018  
Per share data:                                        
Net income (fully diluted)   $ 0.12     $ 0.13     $ 0.14     $ 0.42     $ 0.11  
Cash dividends declared   $ 0.05     $ 0.05     $ 0.05     $ 0.05     $ 0.04  
Book value   $ 6.57     $ 6.44     $ 6.16     $ 5.78     $ 5.15  
Tangible book value   $ 6.57     $ 6.44     $ 6.16     $ 5.78     $ 5.15  
Market value:                                        
High   $ 9.41     $ 8.12     $ 10.68     $ 10.39     $ 12.00  
Low   $ 7.03     $ 7.16     $ 7.14     $ 8.21     $ 7.97  
Close   $ 7.81     $ 7.74     $ 7.70     $ 8.44     $ 9.77  
Common shares outstanding     20,169,492       20,148,017       20,108,560       16,821,371       16,819,471  
                                         
Selected ratios:                                        
Annualized return on average assets     0.80 %     0.85 %     0.86 %     2.26 %     0.59 %
Annualized return on average shareholders' equity     7.30 %     8.19 %     9.70 %     32.26 %     8.41 %
Efficiency ratio     69.20 %     68.12 %     71.24 %     47.59 %     67.11 %
Tier I leverage ratio     11.27 %     11.02 %     10.45 %     8.50 %     7.66 %
Total risk-based capital to risk-adjusted assets     15.72 %     15.71 %     15.06 %     12.69 %     11.42 %
Average shareholders' equity to average total assets     10.96 %     10.41 %     8.89 %     7.00 %     7.00 %
Yield on earning assets (FTE)     4.22 %     4.15 %     4.06 %     4.06 %     4.04 %
Cost of funds     1.11 %     1.11 %     1.11 %     1.04 %     1.00 %
Net interest spread (FTE)     3.11 %     3.04 %     2.95 %     3.02 %     3.04 %
Net interest margin (FTE)     3.32 %     3.25 %     3.14 %     3.17 %     3.21 %
Total delinquent loans/total loans     1.16 %     0.99 %     1.28 %     0.93 %     0.90 %
Allowance for loan and lease losses/total loans     1.11 %     1.10 %     1.10 %     1.13 %     1.14 %
Non-performing loans/total loans     0.73 %     0.65 %     0.74 %     0.56 %     0.51 %
Annualized net charge-offs/average loans     0.13 %     0.32 %     0.05 %     0.05 %     0.36 %


 
FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
       
    Nine Months Ended  
    September 30,  
(in thousands, except share data)   2019     2018  
Interest income                
Interest and fees on loans   $ 28,313     $ 26,820  
Interest and dividends on securities                
U.S. government agencies     2,723       2,675  
State and political subdivisions, tax-free     112       95  
State and political subdivisions, taxable     2,545       3,079  
Other securities     729       646  
Total interest and dividends on securities     6,109       6,495  
Interest on interest-bearing deposits in other banks     155       52  
Total interest income     34,577       33,367  
Interest expense                
Interest on deposits     6,283       3,760  
Interest on borrowed funds                
Interest on Federal Home Loan Bank of Pittsburgh advances     988       1,774  
Interest on subordinated debentures     24       171  
Interest on junior subordinated debentures     331       292  
Total interest on borrowed funds     1,343       2,237  
Total interest expense     7,626       5,997  
Net interest income before provision for loan and lease losses     26,951       27,370  
Provision for loan and lease losses     830       2,749  
Net interest income after provision for loan and lease losses     26,121       24,621  
Non-interest income                
Deposit service charges     2,203       2,160  
Net gain (loss) on the sale of securities     702       (4 )
Net gain (loss) on equity securities     31       (34 )
Net gain on the sale of mortgage loans held for sale     198       171  
Net gain on the sale of SBA guaranteed loans     -       322  
Net gain on the sale of other real estate owned     20       31  
Loan-related fees     231       245  
Income from bank-owned life insurance     394       413  
Other     1,145       1,064  
Total non-interest income     4,924       4,368  
Non-interest expense                
Salaries and employee benefits     11,634       10,732  
Occupancy expense     1,454       1,629  
Equipment expense     968       936  
Data processing expense     2,312       2,040  
Regulatory assessments     265       648  
Bank shares tax     760       767  
Professional fees     724       733  
Insurance expense     374       398  
Other operating expenses     3,385       3,503  
Total non-interest expense     21,876       21,386  
Income before income taxes     9,169       7,603  
Income tax expense     1,582       1,322  
Net income   $ 7,587     $ 6,281  
                 
Income per share                
Basic   $ 0.39     $ 0.37  
Diluted   $ 0.39     $ 0.37  
                 
Cash dividends declared per common share   $ 0.15     $ 0.12  
Weighted average number of shares outstanding:                
Basic     19,678,031       16,791,815  
Diluted     19,683,522       16,813,948  


 
FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
 
    Three Months Ended  
    Sept 30,     Jun 30,     Mar 31,     Dec 31,     Sept 30,  
(in thousands, except share data)   2019     2019     2019     2018     2018  
Interest income                                        
Interest and fees on loans   $ 9,488     $ 9,418     $ 9,407     $ 9,561     $ 9,501  
Interest and dividends on securities                                        
U.S. government agencies     924       906       893       890       899  
State and political subdivisions, tax-free     37       38       37       38       37  
State and political subdivisions, taxable     713       811       1,021       1,026       1,028  
Other securities     314       210       205       167       211  
Total interest and dividends on securities     1,988       1,965       2,156       2,121       2,175  
Interest on interest-bearing deposits in other banks     30       79       46       36       17  
Total interest income     11,506       11,462       11,609       11,718       11,693  
Interest expense                                        
Interest on deposits     1,901       2,144       2,238       2,165       1,559  
Interest on borrowed funds                                        
Interest on Federal Home Loan Bank of Pittsburgh advances     448       253       287       251       715  
Interest on subordinated debentures     0       0       24       57       58  
Interest on junior subordinated debentures     106       111       114       108       106  
Total interest on borrowed funds     554       364       425       416       879  
Total interest expense     2,455       2,508       2,663       2,581       2,438  
Net interest income before provision (credit) for loan and lease losses     9,051       8,954       8,946       9,137       9,255  
Provision (credit) for loan and lease losses     637       347       (154 )     (199 )     1,149  
Net interest income after provision (credit) for loan and lease losses     8,414       8,607       9,100       9,336       8,106  
Non-interest income                                        
Deposit service charges     797       721       685       725       711  
Net gain on the sale of securities     379       163       160       -       -  
Net gain (loss) on equity securities     5       14       12       7       (8 )
Net gain on the sale of mortgage loans held for sale     69       73       56       39       71  
Net gain on the sale of SBA guaranteed loans     -       -       -       -       -  
Net gain on the sale of other real estate owned     11       9       -       -       -  
Loan-related fees     80       72       79       145       85  
Income from bank-owned life insurance     134       129       131       142       141  
Insurance recovery     -       -       -       6,027       -  
Other     356       397       392       337       320  
Total non-interest income     1,831       1,578       1,515       7,422       1,320  
Non-interest expense                                        
Salaries and employee benefits     3,911       3,824       3,899       4,048       3,581  
Occupancy expense     460       444       550       562       500  
Equipment expense     332       329       307       318       299  
Data processing expense     742       789       781       759       745  
Regulatory assessments     21       76       168       213       251  
Bank shares tax     205       277       278       (131 )     278  
Professional fees     189       203       332       295       241  
Insurance expense     128       120       126       117       130  
Other operating expenses     1,341       1,060       984       1,760       1,163  
Total non-interest expense     7,329       7,122       7,425       7,941       7,188  
Income before income taxes     2,916       3,063       3,190       8,817       2,238  
Income tax expense     513       514       555       1,749       388  
Net income   $ 2,403     $ 2,549     $ 2,635     $ 7,068     $ 1,850  
                                         
Income per share                                        
Basic   $ 0.12     $ 0.13     $ 0.14     $ 0.42     $ 0.11  
Diluted   $ 0.12     $ 0.13     $ 0.14     $ 0.42     $ 0.11  
                                         
Cash dividends declared per common share   $ 0.05     $ 0.05     $ 0.05     $ 0.05     $ 0.04  
Weighted average number of shares outstanding:                                        
Basic     20,168,529       20,129,150       18,720,502       16,820,337       16,818,625  
Diluted     20,172,282       20,133,850       18,733,652       16,840,933       16,838,547  


 
FNCB Bancorp, Inc. 
Consolidated Balance Sheets
 
    Sept 30,     Jun 30,     Mar 31,     Dec 31,     Sept 30,  
(in thousands)   2019     2019     2019     2018     2018  
Assets                                        
Cash and cash equivalents:                                        
Cash and due from banks   $ 30,900     $ 24,277     $ 25,683     $ 26,673     $ 23,051  
Interest-bearing deposits in other banks     6,611       5,627       7,062       9,808       7,246  
Total cash and cash equivalents     37,511       29,904       32,745       36,481       30,297  
Available-for-sale debt securities, at fair value     254,666       285,855       274,114       296,032       288,780  
Equity securities, at fair value     922       917       904       891       884  
Restricted stock, at cost     4,194       4,618       3,120       3,123       3,333  
Loans held for sale     1,140       419       609       820       938  
Loans, net of net deferred costs and unearned income     836,877       814,420       838,864       839,100       864,316  
Allowance for loan and lease losses     (9,315 )     (8,945 )     (9,253 )     (9,519 )     (9,827 )
Net loans     827,562       805,475       829,611       829,581       854,489  
Bank premises and equipment, net     17,274       15,923       14,991       14,425       13,895  
Accrued interest receivable     3,038       3,640       3,706       3,614       4,061  
Bank-owned life insurance     31,104       31,275       31,146       31,015       30,873  
Other real estate owned     412       560       919       919       715  
Other assets     19,367       20,208       22,526       20,831       22,857  
Total assets   $ 1,197,190     $ 1,198,794     $ 1,214,451     $ 1,237,732     $ 1,251,122  
                                         
Liabilities                                        
Deposits:                                        
Demand (non-interest-bearing)   $ 179,025     $ 157,856     $ 157,073     $ 156,600     $ 166,967  
Interest-bearing     785,035       803,208       883,017       939,029       928,154  
Total deposits     964,060       961,064       1,040,090       1,095,629       1,095,121  
Borrowed funds:                                        
Federal Home Loan Bank of Pittsburgh advances     79,458       87,223       28,988       18,930       46,490  
Subordinated debentures     -       -       -       5,000       5,000  
Junior subordinated debentures     10,310       10,310       10,310       10,310       10,310  
Total borrowed funds     89,768       97,533       39,298       34,240       61,800  
Accrued interest payable     401       389       339       338       318  
Other liabilities     10,394       10,102       10,942       10,306       7,306  
Total liabilities     1,064,623       1,069,088       1,090,669       1,140,513       1,164,545  
                                         
Shareholders' equity                                        
Preferred stock     -       -       -       -       -  
Common stock     25,211       25,184       25,135       21,026       21,024  
Additional paid-in capital     81,058       80,864       80,827       63,547       63,469  
Retained earnings     21,733       20,345       18,809       17,186       10,965  
Accumulated other comprehensive income (loss)     4,565       3,313       (989 )     (4,540 )     (8,881 )
Total shareholders' equity     132,567       129,706       123,782       97,219       86,577  
    Total liabilities and shareholders’ equity   $ 1,197,190     $ 1,198,794     $ 1,214,451     $ 1,237,732     $ 1,251,122  


 
FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
 
    Three Months Ended  
    Sept 30,     Jun 30,     Mar 31,     Dec 31,     Sept 30,  
(dollars in thousands)   2019     2019     2019     2018     2018  
Interest income                                        
Loans:                                        
Loans - taxable   $ 9,170     $ 9,084     $ 8,940     $ 9,090     $ 9,059  
Loans - tax-free     403       423       591       596       559  
Total loans     9,573       9,507       9,531       9,686       9,618  
Securities:                                        
Securities, taxable     1,951       1,927       2,119       2,083       2,138  
Securities, tax-free     47       48       47       48       47  
Total interest and dividends on securities     1,998       1,975       2,166       2,131       2,185  
Interest-bearing deposits in other banks     30       79       46       36       17  
Total interest income     11,601       11,561       11,743       11,853       11,820  
Interest expense                                        
Deposits     1,901       2,144       2,238       2,165       1,559  
Borrowed funds     554       364       425       416       879  
Total interest expense     2,455       2,508       2,663       2,581       2,438  
Net interest income   $ 9,146     $ 9,053     $ 9,080     $ 9,272     $ 9,382  
                                         
Average balances                                        
Earning assets:                                        
Loans:                                        
Loans - taxable   $ 781,963     $ 778,540     $ 784,359     $ 796,886     $ 803,314  
Loans - tax-free     37,638       41,436       59,220       58,722       55,848  
Total loans     819,601       819,976       843,579       855,608       859,162  
Securities:                                        
Securities, taxable     266,653       274,552       299,498       299,981       303,037  
Securities, tax-free     4,611       4,624       4,638       4,651       4,664  
Total securities     271,264       279,176       304,136       304,632       307,701  
Interest-bearing deposits in other banks     10,007       14,420       9,495       8,438       3,735  
Total interest-earning assets     1,100,872       1,113,572       1,157,210       1,168,678       1,170,598  
Non-earning assets     90,807       85,429       81,868       72,999       75,518  
Total assets   $ 1,191,679     $ 1,199,001     $ 1,239,078     $ 1,241,677     $ 1,246,116  
Interest-bearing liabilities:                                        
Deposits   $ 794,971     $ 851,726     $ 903,542     $ 926,767     $ 827,570  
Borrowed funds     85,927       52,313       58,402       62,495       149,682  
Total interest-bearing liabilities     880,898       904,039       961,944       989,262       977,252  
Demand deposits     169,416       158,413       155,122       157,223       173,616  
Other liabilities     10,730       11,698       11,801       8,272       7,983  
Shareholders' equity     130,635       124,851       110,211       86,920       87,265  
Total liabilities and shareholders' equity   $ 1,191,679     $ 1,199,001     $ 1,239,078     $ 1,241,677     $ 1,246,116  
                                         
Yield/Cost                                        
Earning assets:                                        
Loans:                                        
Interest and fees on loans - taxable     4.69 %     4.67 %     4.56 %     4.56 %     4.51 %
Interest and fees on loans - tax-free     4.28 %     4.08 %     3.99 %     4.06 %     4.01 %
Total loans     4.67 %     4.64 %     4.52 %     4.53 %     4.48 %
Securities:                                        
Securities, taxable     2.93 %     2.81 %     2.83 %     2.78 %     2.82 %
Securities, tax-free     4.08 %     4.15 %     4.05 %     4.13 %     4.03 %
Total securities     2.95 %     2.83 %     2.85 %     2.80 %     2.84 %
Interest-bearing deposits in other banks     1.20 %     2.19 %     1.94 %     1.71 %     1.82 %
Total earning assets     4.22 %     4.15 %     4.06 %     4.06 %     4.04 %
Interest-bearing liabilities:                                        
Interest on deposits     0.96 %     1.01 %     0.99 %     0.93 %     0.75 %
Interest on borrowed funds     2.58 %     2.78 %     2.91 %     2.66 %     2.35 %
Total interest-bearing liabilities     1.11 %     1.11 %     1.11 %     1.04 %     1.00 %
Net interest spread     3.11 %     3.04 %     2.95 %     3.02 %     3.04 %
Net interest margin     3.32 %     3.25 %     3.14 %     3.17 %     3.21 %


 
FNCB Bancorp, Inc.
Asset Quality Data
 
    Sept 30,     Jun 30,     Mar 31,     Dec 31,     Sept 30,  
(in thousands)   2019     2019     2019     2018     2018  
At period end                                        
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)   $ 6,119     $ 5,302     $ 6,175     $ 4,696     $ 4,391  
Loans past due 90 days or more and still accruing     -       -       -       -       -  
Total non-performing loans     6,119       5,302       6,175       4,696       4,391  
Other real estate owned (OREO)     412       560       919       919       715  
Other non-performing assets     1,900       1,900       1,900       1,900       1,900  
Total non-performing assets   $ 8,431     $ 7,762     $ 8,994     $ 7,515     $ 7,006  
                                         
Accruing TDRs   $ 7,828     $ 7,897     $ 8,215     $ 8,457     $ 8,515  
                                         
                                         
For the three months ended                                        
Allowance for loan and lease losses                                        
Beginning balance   $ 8,945     $ 9,253     $ 9,519     $ 9,827     $ 9,459  
Loans charged-off     417       1,123       454       392       1,037  
Recoveries of charged-off loans     150       468       342       283       256  
Net charge-offs     267       655       112       109       781  
Provision (credit) for loan and lease losses     637       347       (154 )     (199 )     1,149  
Ending balance   $ 9,315     $ 8,945     $ 9,253     $ 9,519     $ 9,827  

 

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