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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20150730_8k.htm

EXHIBIT 99.1

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

First National Community Bancorp, Inc. Announces

Second Quarter 2015 Net Income

 

Dunmore, Pa., July 30, 2015—First National Community Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), today reported net income for the three months ended June 30, 2015 of $0.8 million, or $0.05 per basic and diluted share. Net income for the comparable period of 2014 was $6.6 million, or $0.40 per basic and diluted share. For the six months ended June 30, 2015, net income was $4.3 million, or $0.26 per basic and diluted share, a decrease of $5.8 million compared to $10.1 million, or $0.61 per basic and diluted share, for the same six months of 2014. The decrease in quarter- and year-to-date earnings reflected non-recurring income recorded in 2014 related to two legal settlements received in the second quarter of 2014 and a gain on the sale of the Company’s retail banking operations in Monroe County in the first quarter of 2014.

 

Annualized return on average assets was 0.34% and 0.89%, respectively for the three and six-month periods ended June 30, 2015, compared to 2.73% and 2.09%, respectively, for the same periods of 2014. For the second quarter and year-to-date periods of 2015, annualized return on average equity was 5.89% and 15.84%, respectively, and 60.91% and 50.62%, respectively, for the comparable 2014 periods.

 

On June 30, 2015, pursuant to approval from both the holders of the Company’s fixed-rate subordinated notes due 2019 (the “Notes”) and the Federal Reserve Bank of Philadelphia, the Company amended the original terms of the Notes to reduce the annual interest rate from 9.00% to 4.50% effective July 1, 2015 and to accelerate a partial repayment of principal amount. On June 30, 2015, the Company repaid $11.0 million, or 44.0%, of outstanding principal. These changes equate to a savings of $1.6 million in annual interest expense related to the Notes.

 

Second Quarter 2015 Highlights:

 

 

Lowered annual interest rate on the Notes by 50.0% and made a 44.0% principal reduction payment;

 

Total deposit growth of $70.0 million, or 8.8%, from the end of 2014 and $90.3 million, or 11.6%, from the end of the first quarter of 2015; and

 

Non-interest expense decreased 20.6% comparing the six-month periods ended June 30, 2015 and 2014.

 

“Amending the interest rate and accelerating repayment of 44.0% of the principal on the Notes was a key strategic transaction for the Company that will improve our net interest margin and profitability going forward,” stated Steven R. Tokach, President and Chief Executive Officer. “Additionally, future non-interest expense levels should benefit from reduced insurance costs, given our improved risk profile,” concluded Mr. Tokach.

 

 
 

 

 

Summary Results for the Three and Six Months Ended June 30, 2015

 

Net interest income before credit for loan and lease losses was $6.3 million for the second quarter, and $12.6 million for the six months ended June 30, 2015 compared to $6.7 million and $13.2 million for the same periods in 2014. The decrease was primarily a result of lower interest and dividend income on securities, which reflected tax planning strategies involving the repositioning of the investment portfolio from tax-exempt securities into taxable securities and the timing of the reinvestment of sales proceeds. Partially offsetting the reduction in interest income was a $0.3 million reduction in interest expense, which was primarily due to a decrease in funding costs. The tax-equivalent net interest margin for second quarter 2015 was 2.85%, which was unchanged from the first quarter of 2015, and a decrease of 30 basis points from the prior year period. The Company anticipates an improvement in its future funding costs and tax-equivalent net interest margin as a result of the 50.0% reduction in the annual interest rate and 44.0% principal reduction of the Notes.

 

Non-interest income was $1.6 million and $5.0 million, respectively, for the three and six months ended June 30, 2015, compared to $5.0 million and $8.4 million, respectively, for the same periods in 2014. The decrease in second quarter and year-to-date 2015 non-interest income was primarily due to nonrecurring income recorded in the comparable periods of 2014. In the second quarter of 2014, the Company received $2.1 million in recoveries related to two legal settlements, one of which was the recovery of all past due interest, late charges and legal and other expenses as part of a settlement of previously charged-off commercial real estate loans, and the other was a recovery in connection with a previously disclosed shareholder derivative suit. In addition, net gains on the sale of securities decreased $1.4 million and $0.7 million, respectively, comparing the three and six month periods ended June 30, 2015 and 2014. Also impacting the decrease in non-interest income for the year-to-date periods, were nonrecurring income in 2014 from the legal settlements detailed above and the divestiture of retail banking operations in Monroe County.

 

For the three months ended June 30, 2015, non-interest expense decreased $2.3 million, or 25.5%, to $6.7 million, from $9.0 million for the same three months of 2014. On a year-to-date basis, non-interest expense decreased $3.5 million, or 20.6%, to $13.5 million in 2015 from $17.0 million in 2014. For both the three-month and year-to-date periods, the decrease resulted primarily from reductions in expenses of other real estate owned, legal expense and Federal Deposit Insurance Corporate (“FDIC”) insurance expense. With regard to the reduction in FDIC insurance, the Company was notified during the second quarter of 2015 that it was now considered in Risk Category I, the lowest risk category, for assessment purposes. Also during the second quarter of 2015, due to its improved risk profile, the Company renewed its professional liability, fidelity bond and errors and omissions insurance policies at considerably lower rates.

 

Asset Quality

 

The Company recorded net charge-offs of $1.0 million and $1.1 million, respectively, for the three and six months ended June 30, 2015, respectively, compared to net recoveries of $3.6 million and $3.7 million, respectively, for the same periods of 2014. During the second quarter of 2015, the Company recorded a partial charge-off in the amount of $0.9 million on one commercial real estate loan. The net recovery position in 2014 was due largely to the previously mentioned legal settlement. The majority of the balance of net charge-offs was recorded during the second quarter of 2015.

 

Total non-performing loans were $5.8 million at June 30, 2015, an increase of $0.6 million, or 11.1%, from $5.2 million at March 31, 2015, and $0.2 million, or 4.3%, from December 31, 2014. The ratio of non-performing loans to total loans was 0.84% at June 30, 2015 compared to 0.77% at March 31, 2015 and 0.82% at December 31, 2014. (At March 31, 2015, the most recent data available, the FDIC average for commercial banks with assets between $1.0 billion and $3.0 billion at March 31, 2015 was 0.91%.) The allowance for loan and lease losses as a percentage of gross loans was 1.51% at June 30, 2015, 1.63% at March 31, 2015 and 1.72% at the end of 2014. (The above described FDIC peer group average was 1.35% at March 31, 2015.)

 

 
 

 

 

Financial Condition

 

Total assets increased $57.6 million, or 5.9%, to $1.0 billion at June 30, 2015 as compared to $970.0 million at December 31, 2014. The balance sheet growth largely reflected a $36.6 million increase in cash and cash equivalents, which resulted from a $70.0 million or 8.8%, increase in total deposits, partially offset by a $14.4 million, or 14.9%, reduction in borrowed funds. Interest-bearing deposits increased $50.0 million, or 7.5% from year-end 2014 to the close of the second quarter of 2015, while non-interest bearing demand deposits grew by $20.0 million, or 16.1%. The increase in interest-bearing deposits primarily reflected the attainment of a large deposit relationship, partially offset by the planned runoff of higher-costing certificates of deposit generated through QwickRate®, a national deposit listing service. The Company experienced moderate loan demand, as loans, net of unearned income, net deferred loan fees and costs and the ALLL, increased $14.5 million, or 2.2% from December 31, 2014 to June 30, 2015. The reduction in borrowed funds reflected decreases of $3.4 million, or 5.6%, in FHLB of Pittsburgh advances and $11.0 million, or 44.0%, in the Company’s Notes.

 

Total shareholders’ equity increased $3.5 million, or 6.9%, to $54.9 million at June 30, 2015 from $51.4 million at December 31, 2014. The capital improvement resulted primarily from net income of $4.3 million partially offset by a $0.8 million decrease in accumulated other comprehensive income, which resulted entirely from depreciation in the fair value of available-for-sale securities offset by the tax impact of the depreciation. At June 30, 2015, the Company’s total risk-based capital and Tier I leverage ratios were 11.60% and 6.64%, respectively. The respective ratios for the Bank at June 30, 2015 were 13.82% and 9.28%. The ratios well exceeded the 10.00% and 5.00% required to be well capitalized under the prompt corrective action provisions of the Basel III capital framework for U.S. banking organizations, which became effective for the Company and the Bank on January 1, 2015.

 

Availability of Filings

 

Copies of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q will be provided upon request from: Shareholder Relations, First National Community Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. These reports, along with all of the Company’s filings with the Securities and Exchange Commission are also available on the Investor Relations page of the Company’s website, www.fncb.com/investorrelations.

 

About First National Community Bank:

First National Community Bancorp, Inc. is the bank holding company of First National Community Bank, which provides personal, small business and commercial banking services to individuals and businesses throughout Lackawanna, Luzerne, and Wayne Counties in Northeastern Pennsylvania. The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore, and has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.

 

 
 

 

 

INVESTOR CONTACT:                          

James M. Bone, Jr., CPA          

Executive Vice President and           

Chief Financial Officer               

First National Community Bank               

 (570) 348-6419               

james.bone@fncb.com                    

 

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

 

These forward-looking statements include statements with respect to the Company’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 the Company’s 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 the Company’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 the Company’s markets; the effects of, and changes in trade, monetary and fiscal 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 the Company to compete with other institutions for business; the composition and concentrations of the Company’s lending risk and the adequacy of the Company’s reserves to manage those risks; the valuation of the Company’s investment securities; the ability of the Company to pay dividends or repurchase common shares; the ability of the Company to retain key personnel; the impact of any pending or threatened litigation against the Company; the marketability of shares of the Company and fluctuations in the value of the Company’s share price; the impact of the Company’s ability to comply with its regulatory agreements and orders; the effectiveness of the Company’s system of internal controls; the ability of the Company 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 impact of technological changes and security risks upon the Company’s information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of the Company at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in the Company’s filings with the SEC.

 

The Company 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 the Company on its website or otherwise. The Company 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 the Company 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 the Company periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2014.

 

 

[The Company provides tabular information as follows]

 

 
 

 

 

First National Community Bancorp, Inc.

Selected Financial Data

 

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 
   

2015

   

2015

   

2014

   

2014

   

2014

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.05     $ 0.21     $ -     $ 0.20     $ 0.40  

Cash dividends declared

  $ -     $ -     $ -     $ -     $ -  

Book value

  $ 3.33     $ 3.38     $ 3.12     $ 3.06     $ 2.99  

Tangible book value

  $ 3.32     $ 3.36     $ 3.10     $ 3.03     $ 2.96  

Market value:

                                       

High

  $ 6.55     $ 5.40     $ 6.65     $ 6.85     $ 6.85  

Low

  $ 5.15     $ 5.25     $ 5.60     $ 5.75     $ 5.16  

Close

  $ 6.05     $ 5.26     $ 6.00     $ 6.75     $ 6.05  

Common shares outstanding

    16,500,945       16,500,945       16,484,419       16,471,569       16,471,569  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.34 %     1.45 %     (0.01 )%     1.38 %     2.73 %

Annualized return on average shareholders' equity

    5.89 %     26.34 %     (0.24 )%     26.81 %     60.91 %

Tier I leverage ratio

    6.64 %     6.57 %     6.05 %     6.19 %     5.84 %

Total risk-based captial to risk-adjusted assets

    11.60 %     12.96 %     13.67 %     13.50 %     13.07 %

Average shareholders' equity to average total assets

    5.73 %     5.52 %     5.22 %     5.14 %     4.49 %

Yield on earning assets (FTE)

    3.45 %     3.48 %     3.56 %     3.84 %     3.83 %

Cost of funds

    0.73 %     0.75 %     0.79 %     0.80 %     0.80 %

Net interest spread (FTE)

    2.72 %     2.73 %     2.77 %     3.04 %     3.03 %

Net interest margin (FTE)

    2.85 %     2.85 %     2.90 %     3.18 %     3.15 %

Total delinquent loans/total loans

    1.34 %     1.10 %     1.21 %     1.16 %     1.24 %

Allowance for loan and lease losses/total loans

    1.51 %     1.63 %     1.72 %     1.76 %     1.82 %

Non-performing loans/total loans

    0.84 %     0.77 %     0.82 %     0.82 %     0.83 %

Net charge-offs (recoveries)/average loans

    0.14 %     0.01 %     0.02 %     0.03 %     (0.54 )%

 

 
 

 

 

First National Community Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Six Months Ended

 
   

June 30,

 

(in thousands, except share data)

 

2015

   

2014

 

Interest income

               

Interest and fees on loans

  $ 12,947     $ 13,106  

Interest and dividends on securities

               

U.S. government agencies

    1,983       1,603  

State and political subdivisions, tax-free

    72       1,270  

State and political subdivisions, taxable

    123       195  

Other securities

    239       132  

Total interest and dividends on securities

    2,417       3,200  

Interest on interest-bearing deposits in other banks

    32       36  

Total interest income

    15,396       16,342  

Interest expense

               

Interest on deposits

    1,326       1,684  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    239       209  

Interest on subordinated debentures

    1,128       1,131  

Interest on junior subordinated debentures

    100       99  

Total interest on borrowed funds

    1,467       1,439  

Total interest expense

    2,793       3,123  

Net interest income before provision (credit) for loan and lease losses

    12,603       13,219  

Provision (Credit) for loan and lease losses

    (149 )     (5,575 )

Net interest income after provision (credit) for loan and lease losses

    12,752       18,794  

Non-interest income

               

Deposit service charges

    1,419       1,436  

Net gain on the sale of securities

    2,298       3,048  

Net gain on the sale of mortgage loans held for sale

    56       166  

Net loss on the sale of education loans

    -       (13 )

Net gain on the sale of other real estate owned

    16       68  

Gain on branch divestitures

    -       607  

Loan-related fees

    196       191  

Income from bank-owned life insurance

    270       331  

Legal settlements

    184       2,127  

Other

    525       454  

Total non-interest income

    4,964       8,415  

Non-interest expense

               

Salaries and employee benefits

    6,342       6,493  

Occupancy expense

    1,165       1,116  

Equipment expense

    826       713  

Advertising expense

    249       244  

Data processing expense

    949       1,048  

Regulatory assessments

    508       1,123  

Bank shares tax

    435       351  

Expense of other real estate owned

    247       1,981  

Legal expense

    251       1,160  

Professional fees

    587       934  

Insurance expense

    400       561  

Other operating expenses

    1,503       1,232  

Total non-interest expense

    13,462       16,956  

Income before income taxes

    4,254       10,253  

(Credit) provision for income taxes

    (40 )     160  

Net income

  $ 4,294     $ 10,093  
                 

Income per share

               

Basic

  $ 0.26     $ 0.61  

Diluted

  $ 0.26     $ 0.61  
                 

Cash dividends declared per common share

  $ -     $ -  

Weighted average number of shares outstanding:

               

Basic

    16,495,558       16,471,569  

Diluted

    16,495,558       15,471,992  

 

 
 

 

 

First National Community Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

 

   

Three Months Ended

 
   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands, except share data)

 

2015

   

2015

   

2014

   

2014

   

2014

 

Interest income

                                       

Interest and fees on loans

  $ 6,475     $ 6,472     $ 6,671     $ 6,852     $ 6,612  

Interest and dividends on securities

                                       

U.S. government agencies

    1,012       971       998       893       860  

State and political subdivisions, tax-free

    22       50       204       409       560  

State and political subdivisions, taxable

    97       26       53       76       97  

Other securities

    82       157       66       74       76  

Total interest and dividends on securities

    1,213       1,204       1,321       1,452       1,593  

Interest on interest-bearing deposits in other banks

    11       21       27       8       13  

Total interest income

    7,699       7,697       8,019       8,312       8,218  

Interest expense

                                       

Interest on deposits

    643       683       745       751       819  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    119       120       116       125       113  

Interest on subordinated debentures

    565       563       575       575       568  

Interest on junior subordinated debentures

    51       49       87       50       50  

Total interest on borrowed funds

    735       732       778       750       731  

Total interest expense

    1,378       1,415       1,523       1,501       1,550  

Net interest income before provision (credit) for loan and lease losses

    6,321       6,282       6,496       6,811       6,668  

Provision (Credit) for loan and lease losses

    345       (494 )     (240 )     (54 )     (4,005 )

Net interest income after provision (credit) for loan and lease losses

    5,976       6,776       6,736       6,865       10,673  

Non-interest income

                                       

Deposit service charges

    745       674       758       781       746  

Net gain on the sale of securities

    74       2,224       634       2,958       1,480  

Net gain on the sale of mortgage loans held for sale

    16       40       69       57       91  

Net loss on the sale of education loans

    -       -       -       -       -  

Net gain on the sale of other real estate owned

    11       5       106       35       39  

Loan-related fees

    106       90       148       101       98  

Income from bank-owned life insurance

    135       135       154       165       164  

Legal settlements

    184       -       -       -       2,127  

Other

    274       251       194       345       217  

Total non-interest income

    1,545       3,419       2,063       4,442       4,962  

Non-interest expense

                                       

Salaries and employee benefits

    3,203       3,139       3,302       3,316       3,093  

Occupancy expense

    532       633       534       438       472  

Equipment expense

    442       384       403       355       357  

Data processing expense

    501       448       532       508       526  

Regulatory assessments

    99       409       412       266       450  

Bank shares tax

    218       217       150       21       175  

Expense of other real estate owned

    147       100       74       514       1,818  

Legal expense

    88       163       371       268       513  

Professional fees

    286       301       327       306       484  

Insurance expense

    202       198       194       196       279  

Other operating expenses

    962       790       2,531       1,595       798  

Total non-interest expense

    6,680       6,782       8,830       7,783       8,965  

Income before income taxes

    841       3,413       (31 )     3,524       6,670  

Provision (Credit) for income taxes

    22       (62 )     -       166       90  

Net income

  $ 819     $ 3,475     $ (31 )   $ 3,358     $ 6,580  
                                         

Income per share

                                       

Basic

  $ 0.05     $ 0.21     $ -     $ 0.20     $ 0.40  

Diluted

  $ 0.05     $ 0.21     $ -     $ 0.20     $ 0.40  
                                         

Cash dividends declared per common share

  $ -     $ -     $ -     $ -     $ -  

Weighted average number of shares outstanding:

                                       

Basic

    16,500,945       16,490,111       16,475,899       16,471,569       16,471,569  

Diluted

    16,500,945       16,490,111       16,475,899       16,471,569       16,471,569  

 

 
 

 

 

First National Community Bancorp, Inc.

Consolidated Balance Sheets

 

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands)

 

2015

   

2015

   

2014

   

2014

   

2014

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 22,443     $ 19,985     $ 22,657     $ 21,532     $ 21,429  

Interest-bearing deposits in other banks

    49,872       17,390       13,010       18,461       9,220  

Total cash and cash equivalents

    72,315       37,375       35,667       39,993       30,649  

Securities available for sale at fair value

    226,539       204,635       218,989       217,412       209,264  

Stock in Federal Home Loan Bank of Pittsburgh at cost

    2,684       3,061       2,803       4,356       4,339  

Loans held for sale

    138       -       603       171       424  

Loans, net of net deferred costs and unearned income

    683,588       672,165       670,267       678,160       670,977  

Allowance for loan and lease losses

    (10,328 )     (10,944 )     (11,520 )     (11,898 )     (12,175 )

Net loans

    673,260       661,221       658,747       666,262       658,802  

Bank premises and equipment, net

    11,059       11,221       11,003       11,094       11,338  

Accrued interest receivable

    2,174       2,118       2,075       2,158       2,272  

Intangible assets

    220       261       302       344       385  

Bank-owned life insurance

    29,087       28,952       28,817       28,663       28,498  

Other real estate owned

    1,740       2,369       2,255       2,617       3,182  

Other assets

    8,455       9,028       8,768       9,063       8,722  

Total assets

  $ 1,027,671     $ 960,241     $ 970,029     $ 982,133     $ 957,875  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 144,075     $ 134,993     $ 124,064     $ 148,430     $ 125,578  

Interest-bearing

    721,293       640,118       671,272       654,766       644,660  

Total deposits

    865,368       775,111       795,336       803,196       770,238  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    57,771       67,612       61,194       68,786       77,378  

Subordinated debentures

    14,000       25,000       25,000       25,000       25,000  

Junior subordinated debentures

    10,310       10,310       10,310       10,310       10,310  

Total borrowed funds

    82,081       102,922       96,504       104,096       112,688  

Accrued interest payable

    11,344       10,788       10,262       10,515       9,953  

Other liabilities

    13,935       15,678       16,529       14,005       15,790  

Total liabilities

    972,728       904,499       918,631       931,812       908,669  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    20,626       20,626       20,605       20,589       20,589  

Additional paid-in capital

    61,870       61,801       61,781       61,692       61,664  

Accumulated deficit

    (27,832 )     (28,651 )     (32,126 )     (32,095 )     (35,453 )

Accumulated other comprehensive income

    279       1,966       1,138       135       2,406  

Total shareholders' equity

    54,943       55,742       51,398       50,321       49,206  

Total liabilities and shareholders’ equity

  $ 1,027,671     $ 960,241     $ 970,029     $ 982,133     $ 957,875  

 

 
 

 

 

First National Community Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

 

   

Three Months Ended

 
   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(dollars in thousands)

 

2015

   

2015

   

2014

   

2014

   

2014

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 6,148     $ 6,148     $ 6,340     $ 6,524     $ 6,292  

Loans - tax-free

    495       491       501       497       485  

Total loans

    6,643       6,639       6,841       7,021       6,777  

Securities:

                                       

Securities, taxable

    1,191       1,154       1,117       1,043       1,033  

Securities, tax-free

    33       76       309       620       848  

Total interest and dividends on securities

    1,224       1,230       1,426       1,663       1,881  

Interest-bearing deposits in other banks

    11       21       27       8       13  

Total interest income

    7,878       7,890       8,294       8,692       8,671  

Interest expense

                                       

Deposits

    643       683       745       751       819  

Borrowed funds

    735       732       778       750       731  

Total interest expense

    1,378       1,415       1,523       1,501       1,550  

Net interest income

  $ 6,500     $ 6,475     $ 6,771     $ 7,191     $ 7,121  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 637,005     $ 633,731     $ 635,146     $ 635,032     $ 622,815  

Loans - tax-free

    42,225       41,125       40,477       39,849       39,465  

Total loans

    679,230       674,856       675,623       674,881       662,280  

Securities:

                                       

Securities, taxable

    211,833       194,268       196,351       177,863       174,076  

Securities, tax-free

    2,007       4,283       17,055       36,246       48,349  

Total interest and dividends on securities

    213,840       198,551       213,406       214,109       222,425  

Interest-bearing deposits in other banks

    18,984       34,708       43,618       15,983       20,782  

Total interest-earning assets

    912,054       908,115       932,647       904,973       905,487  

Non-earning assets

    62,254       61,476       58,826       62,582       60,607  

Total assets

  $ 974,308     $ 969,591     $ 991,473     $ 967,555     $ 966,094  

Interest-bearing liabilities:

                                       

Deposits

  $ 646,656     $ 658,193     $ 675,901     $ 640,394     $ 676,969  

Borrowed funds

    108,234       99,046       99,251       114,137       94,952  

Total interest-bearing liabilities

    754,890       757,239       775,152       754,531       771,921  

Demand deposits

    137,674       132,316       139,336       137,992       126,372  

Other liabilities

    25,964       26,525       25,278       25,337       24,470  

Shareholders' equity

    55,780       53,511       51,707       49,695       43,331  

Total liabilities and shareholders' equity

  $ 974,308     $ 969,591     $ 991,473     $ 967,555     $ 966,094  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    3.86 %     3.88 %     3.99 %     4.11 %     4.04 %

Interest and fees on loans - tax-free

    4.69 %     4.78 %     4.95 %     4.99 %     4.91 %

Total loans

    3.91 %     3.94 %     4.05 %     4.16 %     4.09 %

Securities:

                                       

Securities, taxable

    2.25 %     2.38 %     2.28 %     2.35 %     2.37 %

Securities, tax-free

    6.64 %     7.10 %     7.25 %     6.84 %     7.02 %

Total interest and dividends on securities

    2.29 %     2.48 %     2.67 %     3.11 %     3.38 %

Interest on interest-bearing deposits in other banks

    0.23 %     0.24 %     0.25 %     0.20 %     0.25 %

Total earning assets

    3.45 %     3.48 %     3.56 %     3.84 %     3.83 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.40 %     0.42 %     0.44 %     0.47 %     0.48 %

Interest on borrowed funds

    2.72 %     2.96 %     3.14 %     2.63 %     3.08 %

Total interest-bearing liabilities

    0.73 %     0.75 %     0.79 %     0.80 %     0.80 %

Net interest spread

    2.72 %     2.73 %     2.77 %     3.04 %     3.03 %

Net interest margin

    2.85 %     2.85 %     2.90 %     3.18 %     3.15 %

 

 
 

 

 

First National Community Bancorp, Inc.

Asset Quality Data

 

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands)

 

2015

   

2015

   

2014

   

2014

   

2014

 

At period end

                                       

Non-accural loans, including non-performing troubled debt restructured loans (TDRs)

  $ 5,757     $ 5,184     $ 5,522     $ 5,539     $ 5,550  

Loans past due 90 days or more and still accruing

    -       -       -       49       -  

Total non-performing loans

    5,757       5,184       5,522       5,588       5,550  

Other real estate owned (OREO)

    1,740       2,369       2,255       2,617       3,182  

Total non-performing loans and OREO

  $ 7,497     $ 7,553     $ 7,777     $ 8,205     $ 8,732  
                                         

TDRs performing in accordance with modified terms

  $ 5,289     $ 5,807     $ 5,282     $ 5,326     $ 4,991  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 10,944     $ 11,520     $ 11,898     $ 12,175     $ 12,589  

Loans charged-off

    1,192       277       427       359       333  

Recoveries of charged-off loans

    231       195       289       136       3,924  

Net charge-offs (recoveries)

    961       82       138       223       (3,591 )

Provision (credit) for loan and lease losses

    345       (494 )     (240 )     (54 )     (4,005 )

Ending balance

  $ 10,328     $ 10,944     $ 11,520     $ 11,898     $ 12,175