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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20151030_8k.htm

 EXHIBIT 99.1

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

  

First National Community Bancorp, Inc. Announces Third Quarter 2015 Net Income

 

Dunmore, Pa., October 30, 2015—First National Community Bancorp, Inc. (the “Company”) (OTCQX: FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), today reported net income for the three months ended September 30, 2015 of $2.3 million, or $0.14 per basic and diluted share. Net income for the comparable period of 2014 was $3.4 million, or $0.20 per basic and diluted share. The $1.1 million decrease in third quarter earnings was primarily attributable to a decrease in non-interest income partially offset by further non-interest expense reductions, an improvement in net interest income and an increase in the credit for loan and lease losses. For the nine months ended September 30, 2015, net income was $6.6 million, or $0.40 per basic and diluted share, a decrease of $6.9 million compared to $13.5 million, or $0.82 per basic and diluted share, for the same nine months of 2014. The decrease in year-to-date earnings reflected a $3.7 million decrease in gains on the sale of investment securities, coupled with non-recurring income recorded in 2014 related to two legal settlements and a gain on the sale of the Company’s retail banking operations in Monroe County. Annualized return on average assets was 0.91% and 0.90%, respectively for the three- and nine-month periods ended September 30, 2015, compared to 1.38% and 1.85%, respectively, for the same periods of 2014. For the third quarter and year-to-date periods of 2015, annualized return on average equity was 16.38% and 15.96%, respectively, and 26.81% and 41.43%, respectively, for the comparable 2014 periods.

 

Third Quarter 2015 Highlights:

 

 

Company was released from Written Agreement with the Federal Reserve Bank of Philadelphia (“Reserve Bank”) effective September 2, 2015

 

Growth in net loans of $40.1 million, or 6.0%, from the end of the second quarter of 2015

 

Tax-equivalent net interest margin improved 22 basis points in the third quarter compared to the second quarter of 2015

 

Decrease of $4.9 million, or 19.7%, in year-to-date non-interest expense

 

Increase in tangible book value of $0.50 per share to $3.60 at September 30, 2015 from $3.10 per share at December 31, 2014

 

On September 8, 2015, the Company received written notification that effective September 2, 2015 it was released from the Written Agreement by the Reserve Bank. On March 25, 2015, the Company was released from the Consent Order by the Office of the Comptroller of the Currency (“OCC”). Previously the Company had been operating under the Consent Order since September 2010 and the Written Agreement since November 2010. The releases signify that the Reserve Bank and the OCC have determined that the Company and the Bank have met all of the requirements mandated by the Written Agreement and Consent Order, respectively.

 

 
 

 

 

“The Company achieved yet another positive milestone in the third quarter with the release from the Written Agreement,” stated Steven R. Tokach, President and Chief Executive Officer. “The Company’s non-interest expense levels continued to be positively impacted by our improved risk profile. In addition, our net interest income levels rebounded in the third quarter with strong loan growth and the effect of the 44.0% principal prepayment and rate modification from 9.00% to 4.50% of the Company’s subordinated debentures at the end of the second quarter of 2015,” concluded Mr. Tokach.

 

Summary Results for the Three and Nine Months Ended September 30, 2015

 

Net interest income before the credit for loan and lease losses increased $371 thousand, or 5.4%, to $7.2 million for the third quarter of 2015 from $6.8 million for the same period of 2014. The increase was primarily a result of lower interest expense due to the $11.0 million principal prepayment and rate modification of the Company’s subordinated debentures completed on June 30, 2015. In addition, net interest income for the third quarter of 2015 improved $0.9 million, or 13.6%, compared to the second quarter of 2015, which largely reflected increased interest income due to higher average balances of loans and investment securities, coupled with lower interest expense resulting from the principal prepayment and rate modification on the subordinated debentures. The tax-equivalent net interest margin for third quarter 2015 was 3.07%, a decrease of 11 basis points compared to the same quarter of 2014. However, the tax-equivalent net interest margin improved 22 basis points compared to 2.85% for the second quarter of 2015.

 

Non-interest income was $1.4 million for the three months ended September 30, 2015, a decrease of $3.0 million, or 69.0%, compared to $4.4 million for the same period of 2014. The revenue decline was due entirely to a $3.0 million decrease in net gains received on security sales. Non-interest income totaled $6.3 million for the nine months ended September 30, 2015, a decrease of $6.6 million, or 50.7%, from $12.9 million for the same nine months of 2014. The reduction in non-interest income for the year-to-date periods reflected the decrease in net gains on investment security sales, coupled with non-recurring income earned in 2014. Year-to-date net gains on the sale of securities were $2.3 million in 2015, which was $3.7 million lower than the $6.0 million in net gains on the sale of securities recorded in 2014. In addition, non-interest income for the nine months ended September 30, 2014 included $2.1 million of non-recurring income received from the settlement of judgements filed pursuant to a large commercial credit relationship resulting in the recovery of all past due interest, late charges and legal and other expenses associated with a previously charged-off commercial real estate loan relationship, and a $0.6 million net gain recorded on the divestiture of the Company’s retail banking operations in Monroe County.

 

For the three months ended September 30, 2015, non-interest expense decreased $1.4 million, or 17.6%, to $6.4 million, from $7.8 million for the same three months of 2014. On a year-to-date basis, non-interest expense decreased $4.8 million, or 19.7%, to $19.9 million in 2015 from $24.7 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, regulatory assessments, legal expense professional fees and Federal Deposit Insurance Corporation (“FDIC”) insurance expense, all of which reflected improvement in the Company’s risk profile.

 

 
 

 

 

Asset Quality

 

Net charge-offs were $0.3 million and $1.4 million for the three and nine months ended September 30, 2015, respectively, compared to net charge-offs of $0.2 million for the three months ended September 30, 2014 and net recoveries of $3.5 million for the 2014 year-to-date period. Net charge-offs for the nine months ended September 30, 2015 resulted primarily from the partial charge-off of two commercial loan relationships: two construction, land acquisition and development loans to one commercial customer aggregating $0.7 million in the third quarter of 2015 and one commercial real estate loan to another commercial customer in the amount of $0.9 million in the second quarter of 2015. The net recovery position in 2014 was due largely to the previously mentioned legal settlement.

 

Total non-performing loans were $6.7 million at September 30, 2015, an increase of $1.0 million, or 17.1%, from $5.8 million at June 30, 2015, and $1.2 million, or 22.1%, from December 31, 2014. The ratio of non-performing loans to total loans was 0.93% at September 30, 2015 compared to 0.84% at June 30, 2015 and 0.82% at December 31, 2014. (At June 30, 2015, the most recent data available, the FDIC average for bank holding companies with assets between $1.0 billion and $3.0 billion was 0.92%.) At September 30, 2015, the Company’s allowance for loan and lease losses as a percentage of gross loans at September 30, 2015 equaled 1.36% which was comparable to that of the peer group. (The above described FDIC peer group average was 1.30% at June 30, 2015.)

 

Financial Condition

 

Total assets reached $1.1 billion at September 30, 2015, an increase of $85.2 million, or 8.8%, from $970.0 million at December 31, 2014. The Company experienced strong growth in its earning assets. Specifically, net loans grew $54.6 million, or 8.3%, to $713.3 million at September 30, 2015 from $658.7 million at December 31, 2014. In addition, available-for-sale securities increased $30.2 million, or 13.8%, to $249.2 million at the end of the third quarter of 2015 from $219.0 million at year-end 2014. Earning asset growth was funded primarily by an increase in total deposits of $56.7 million, or 7.1%, coupled with an increase in borrowed funds of $20.9 million, or 21.6%. With regard to deposit growth, interest-bearing deposits increased $28.7 million, or 4.3% from year-end 2014 to the close of the third quarter of 2015, while non-interest bearing demand deposits grew by $28.0 million, or 22.6%. The increase in interest-bearing deposits primarily reflected the attainment of a large commercial deposit relationship and normal cyclical deposit growth, partially offset by the planned runoff of higher-costing certificates of deposit generated through QwickRate®, a national deposit listing service. The increase in borrowed funds reflected an increase of $31.9 million, or 52.1%, in FHLB of Pittsburgh advances, partially offset by the $11.0 million, or 44.0%, prepayment of the Company’s subordinated debentures.

 

Total shareholders’ equity increased $8.2 million, or 16.0%, to $59.6 million at September 30, 2015 from $51.4 million at December 31, 2014. The capital improvement resulted primarily from net income of $6.6 million coupled with a $1.4 million increase in accumulated other comprehensive income, which resulted entirely from appreciation in the fair value of available-for-sale securities offset by the tax impact of the appreciation. At September 30, 2015, the Company’s total risk-based capital and Tier I leverage ratios were 11.20% and 6.57%, respectively. The respective ratios for the Bank at September 30, 2015 were 13.29% and 9.11%. The ratios 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.

  

 
 

 

 

First National Community Bancorp, Inc.

Selected Financial Data

 

 

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 
   

2015

   

2015

   

2015

   

2014

   

2014

 

Per share data:

                                       
                                         

Net income (fully diluted)

  $ 0.14     $ 0.05     $ 0.21     $ -     $ 0.20  
                                         

Cash dividends declared

  $ -     $ -     $ -     $ -     $ -  
                                         

Book value

  $ 3.61     $ 3.33     $ 3.38     $ 3.12     $ 3.06  
                                         

Tangible book value

  $ 3.60     $ 3.32     $ 3.36     $ 3.10     $ 3.03  
                                         

Market value:

                                       
                                         

High

  $ 6.05     $ 6.55     $ 5.40     $ 6.65     $ 6.85  
                                         

Low

  $ 5.02     $ 5.15     $ 5.25     $ 5.60     $ 5.75  
                                         

Close

  $ 5.19     $ 6.05     $ 5.26     $ 6.00     $ 6.75  
                                         

Common shares outstanding

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

Selected ratios:

                                       
                                         

Annualized return on average assets

    0.91 %     0.34 %     1.45 %     (0.01 )%     1.38 %
                                         

Annualized return on average shareholders' equity

    16.38 %     5.89 %     26.34 %     (0.24 )%     26.81 %
                                         

Tier I leverage ratio

    6.57 %     6.64 %     6.57 %     6.05 %     6.19 %
                                         

Total risk-based capital to risk-adjusted assets

    11.20 %     11.60 %     12.96 %     13.67 %     13.50 %
                                         

Average shareholders' equity to average total assets

    5.55 %     5.73 %     5.52 %     5.22 %     5.14 %
                                         

Yield on earning assets (FTE)

    3.50 %     3.45 %     3.48 %     3.56 %     3.84 %
                                         

Cost of funds

    0.51 %     0.73 %     0.75 %     0.79 %     0.80 %
                                         

Net interest spread (FTE)

    2.98 %     2.72 %     2.73 %     2.77 %     3.04 %
                                         

Net interest margin (FTE)

    3.07 %     2.85 %     2.85 %     2.90 %     3.18 %
                                         

Total delinquent loans/total loans

    1.29 %     1.34 %     1.10 %     1.21 %     1.16 %
                                         

Allowance for loan and lease losses/total loans

    1.36 %     1.51 %     1.63 %     1.72 %     1.76 %
                                         

Non-performing loans/total loans

    0.93 %     0.84 %     0.77 %     0.82 %     0.82 %
                                         

Net charge-offs/average loans

    0.04 %     0.14 %     0.01 %     0.02 %     0.03 %

 

 
 

 

 

First National Community Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

 

   

Nine Months Ended

 
   

September 30,

 

(in thousands, except share data)

 

2015

   

2014

 

Interest income

               

Interest and fees on loans

  $ 19,640     $ 19,958  

Interest and dividends on securities

               

U.S. government agencies

    3,044       2,496  

State and political subdivisions, tax-free

    91       1,679  

State and political subdivisions, taxable

    447       271  

Other securities

    331       206  

Total interest and dividends on securities

    3,913       4,652  

Interest on interest-bearing deposits in other banks

    42       44  

Total interest income

    23,595       24,654  

Interest expense

               

Interest on deposits

    2,003       2,435  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    367       334  

Interest on subordinated debentures

    1,290       1,706  

Interest on junior subordinated debentures

    150       149  

Total interest on borrowed funds

    1,807       2,189  

Total interest expense

    3,810       4,624  

Net interest income before credit for loan and lease losses

    19,785       20,030  

Credit for loan and lease losses

    (340 )     (5,629 )

Net interest income after credit for loan and lease losses

    20,125       25,659  

Non-interest income

               

Deposit service charges

    2,218       2,217  

Net gain on the sale of securities

    2,302       6,006  

Net gain on the sale of mortgage loans held for sale

    69       223  

Net loss on the sale of education loans

    -       (13 )

Net gain on the sale of other real estate owned

    145       103  

Gain on branch divestitures

    -       607  

Loan-related fees

    290       292  

Income from bank-owned life insurance

    415       496  

Legal settlements

    184       2,127  

Other

    720       799  

Total non-interest income

    6,343       12,857  

Non-interest expense

               

Salaries and employee benefits

    9,582       9,809  

Occupancy expense

    1,665       1,554  

Equipment expense

    1,234       1,068  

Advertising expense

    335       353  

Data processing expense

    1,420       1,556  

Regulatory assessments

    711       1,389  

Bank shares tax

    652       372  

Expense of other real estate owned

    338       2,495  

Legal expense

    331       1,428  

Professional fees

    780       1,240  

Insurance expense

    528       757  

Other operating expenses

    2,301       2,718  

Total non-interest expense

    19,877       24,739  

Income before income taxes

    6,591       13,777  

(Credit) provision for income taxes

    (40 )     326  

Net income

  $ 6,631     $ 13,451  
                 

Income per share

               

Basic

  $ 0.40     $ 0.82  

Diluted

  $ 0.40     $ 0.82  
                 

Cash dividends declared per common share

  $ -     $ -  

Weighted average number of shares outstanding:

               

Basic

    16,497,373       16,471,569  

Diluted

    16,497,373       16,471,851  

 

 
 

 

 

First National Community 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)

 

2015

   

2015

   

2015

   

2014

   

2014

 

Interest income

                                       

Interest and fees on loans

  $ 6,693     $ 6,475     $ 6,472     $ 6,671     $ 6,852  

Interest and dividends on securities

                                       

U.S. government agencies

    1,061       1,012       971       998       893  

State and political subdivisions, tax-free

    19       22       50       204       409  

State and political subdivisions, taxable

    324       97       26       53       76  

Other securities

    92       82       157       66       74  

Total interest and dividends on securities

    1,496       1,213       1,204       1,321       1,452  

Interest on interest-bearing deposits in other banks

    10       11       21       27       8  

Total interest income

    8,199       7,699       7,697       8,019       8,312  

Interest expense

                                       

Interest on deposits

    677       643       683       745       751  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    128       119       120       116       125  

Interest on subordinated debentures

    162       565       563       575       575  

Interest on junior subordinated debentures

    50       51       49       87       50  

Total interest on borrowed funds

    340       735       732       778       750  

Total interest expense

    1,017       1,378       1,415       1,523       1,501  

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

    7,182       6,321       6,282       6,496       6,811  

(Credit) provision for loan and lease losses

    (191 )     345       (494 )     (240 )     (54 )

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

    7,373       5,976       6,776       6,736       6,865  

Non-interest income

                                       

Deposit service charges

    799       745       674       758       781  

Net gain on the sale of securities

    4       74       2,224       634       2,958  

Net gain on the sale of mortgage loans held for sale

    13       16       40       69       57  

Net gain on the sale of other real estate owned

    129       11       5       106       35  

Loan-related fees

    94       106       90       148       101  

Income from bank-owned life insurance

    145       135       135       154       165  

Legal settlements

    -       184       -       -       -  

Other

    195       274       251       194       345  

Total non-interest income

    1,379       1,545       3,419       2,063       4,442  

Non-interest expense

                                       

Salaries and employee benefits

    3,240       3,203       3,139       3,302       3,316  

Occupancy expense

    500       532       633       534       438  

Equipment expense

    408       442       384       403       355  

Data processing expense

    471       501       448       532       508  

Regulatory assessments

    203       99       409       412       266  

Bank shares tax

    217       218       217       150       21  

Expense of other real estate owned

    91       147       100       74       514  

Legal expense

    80       88       163       371       268  

Professional fees

    193       286       301       327       306  

Insurance expense

    128       202       198       194       196  

Other operating expenses

    884       962       790       2,531       1,595  

Total non-interest expense

    6,415       6,680       6,782       8,830       7,783  

Income before income taxes

    2,337       841       3,413       (31 )     3,524  

Provision (Credit) for income taxes

    -       22       (62 )     -       166  

Net income

  $ 2,337     $ 819     $ 3,475     $ (31 )   $ 3,358  
                                         

Income per share

                                       

Basic

  $ 0.14     $ 0.05     $ 0.21     $ -     $ 0.20  

Diluted

  $ 0.14     $ 0.05     $ 0.21     $ -     $ 0.20  
                                         

Cash dividends declared per common share

  $ -     $ -     $ -     $ -     $ -  

Weighted average number of shares outstanding:

                                       

Basic

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

Diluted

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

 

 
 

 

 

First National Community Bancorp, Inc.

Consolidated Balance Sheets

 

 

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(in thousands)

 

2015

   

2015

   

2015

   

2014

   

2014

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 20,631     $ 22,443     $ 19,985     $ 22,657     $ 21,532  

Interest-bearing deposits in other banks

    10,383       49,872       17,390       13,010       18,461  

Total cash and cash equivalents

    31,014       72,315       37,375       35,667       39,993  

Securities available for sale, at fair value

    249,228       226,539       204,635       218,989       217,412  

Stock in Federal Home Loan Bank of Pittsburgh at cost

    4,298       2,684       3,061       2,803       4,356  

Loans held for sale

    4,634       138       -       603       171  

Loans, net of net deferred costs and unearned income

    723,166       683,588       672,165       670,267       678,160  

Allowance for loan and lease losses

    (9,825 )     (10,328 )     (10,944 )     (11,520 )     (11,898 )

Net loans

    713,341       673,260       661,221       658,747       666,262  

Bank premises and equipment, net

    11,258       11,059       11,221       11,003       11,094  

Accrued interest receivable

    2,618       2,174       2,118       2,075       2,158  

Intangible assets

    179       220       261       302       344  

Bank-owned life insurance

    29,232       29,087       28,952       28,817       28,663  

Other real estate owned

    1,618       1,740       2,369       2,255       2,617  

Other assets

    7,799       8,455       9,028       8,768       9,063  

Total assets

  $ 1,055,219     $ 1,027,671     $ 960,241     $ 970,029     $ 982,133  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 152,038     $ 144,075     $ 134,993     $ 124,064     $ 148,430  

Interest-bearing

    700,004       721,293       640,118       671,272       654,766  

Total deposits

    852,042       865,368       775,111       795,336       803,196  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    93,058       57,771       67,612       61,194       68,786  

Subordinated debentures

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

Junior subordinated debentures

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

Total borrowed funds

    117,368       82,081       102,922       96,504       104,096  

Accrued interest payable

    11,187       11,344       10,788       10,262       10,515  

Other liabilities

    14,989       13,935       15,678       16,529       14,005  

Total liabilities

    995,586       972,728       904,499       918,631       931,812  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

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

Additional paid-in capital

    61,939       61,870       61,801       61,781       61,692  

Accumulated deficit

    (25,495 )     (27,832 )     (28,651 )     (32,126 )     (32,095 )

Accumulated other comprehensive income

    2,563       279       1,966       1,138       135  

Total shareholders' equity

    59,633       54,943       55,742       51,398       50,321  

Total liabilities and shareholders’ equity

  $ 1,055,219     $ 1,027,671     $ 960,241     $ 970,029     $ 982,133  

 

 
 

 

 

First National Community Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

 

 

   

Three Months Ended

 
   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(dollars in thousands)

 

2015

   

2015

   

2015

   

2014

   

2014

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 6,371     $ 6,148     $ 6,148     $ 6,340     $ 6,524  

Loans - tax-free

    488       495       491       501       497  

Total loans

    6,859       6,643       6,639       6,841       7,021  

Securities:

                                       

Securities, taxable

    1,477       1,191       1,154       1,117       1,043  

Securities, tax-free

    29       33       76       309       620  

Total interest and dividends on securities

    1,506       1,224       1,230       1,426       1,663  

Interest-bearing deposits in other banks

    10       11       21       27       8  

Total interest income

    8,375       7,878       7,890       8,294       8,692  

Interest expense

                                       

Deposits

    677       643       683       745       751  

Borrowed funds

    340       735       732       778       750  

Total interest expense

    1,017       1,378       1,415       1,523       1,501  

Net interest income

  $ 7,358     $ 6,500     $ 6,475     $ 6,771     $ 7,191  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 660,709     $ 637,005     $ 633,731     $ 635,146     $ 635,032  

Loans - tax-free

    41,746       42,225       41,125       40,477       39,849  

Total loans

    702,455       679,230       674,856       675,623       674,881  

Securities:

                                       

Securities, taxable

    241,799       211,833       194,268       196,351       177,863  

Securities, tax-free

    1,707       2,007       4,283       17,055       36,246  

Total interest and dividends on securities

    243,506       213,840       198,551       213,406       214,109  

Interest-bearing deposits in other banks

    12,185       18,984       34,708       43,618       15,983  

Total interest-earning assets

    958,146       912,054       908,115       932,647       904,973  

Non-earning assets

    62,063       62,254       61,476       58,826       62,582  

Total assets

  $ 1,020,209     $ 974,308     $ 969,591     $ 991,473     $ 967,555  

Interest-bearing liabilities:

                                       

Deposits

  $ 690,039     $ 646,656     $ 658,193     $ 675,901     $ 640,394  

Borrowed funds

    105,109       108,234       99,046       99,251       114,137  

Total interest-bearing liabilities

    795,148       754,890       757,239       775,152       754,531  

Demand deposits

    143,140       137,674       132,316       139,336       137,992  

Other liabilities

    25,303       25,964       26,525       25,278       25,337  

Shareholders' equity

    56,618       55,780       53,511       51,707       49,695  

Total liabilities and shareholders' equity

  $ 1,020,209     $ 974,308     $ 969,591     $ 991,473     $ 967,555  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    3.86 %     3.86 %     3.88 %     3.99 %     4.11 %

Interest and fees on loans - tax-free

    4.67 %     4.69 %     4.78 %     4.95 %     4.99 %

Total loans

    3.91 %     3.91 %     3.94 %     4.05 %     4.16 %

Securities:

                                       

Securities, taxable

    2.44 %     2.25 %     2.38 %     2.28 %     2.35 %

Securities, tax-free

    6.75 %     6.64 %     7.10 %     7.25 %     6.84 %

Total interest and dividends on securities

    2.47 %     2.29 %     2.48 %     2.67 %     3.11 %

Interest on interest-bearing deposits in other banks

    0.33 %     0.23 %     0.24 %     0.25 %     0.20 %

Total earning assets

    3.50 %     3.45 %     3.48 %     3.56 %     3.84 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.39 %     0.40 %     0.42 %     0.44 %     0.47 %

Interest on borrowed funds

    1.29 %     2.72 %     2.96 %     3.14 %     2.63 %

Total interest-bearing liabilities

    0.51 %     0.73 %     0.75 %     0.79 %     0.80 %

Net interest spread

    2.98 %     2.72 %     2.73 %     2.77 %     3.04 %

Net interest margin

    3.07 %     2.85 %     2.85 %     2.90 %     3.18 %
 
 

 

 

First National Community Bancorp, Inc.

Asset Quality Data

 

 

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(in thousands)

 

2015

   

2015

   

2015

   

2014

   

2014

 

At period end

                                       

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

  $ 6,741     $ 5,757     $ 5,184     $ 5,522     $ 5,539  

Loans past due 90 days or more and still accruing

    -       -       -       -       49  

Total non-performing loans

    6,741       5,757       5,184       5,522       5,588  

Other real estate owned (OREO)

    1,618       1,740       2,369       2,255       2,617  

Total non-performing loans and OREO

  $ 8,359     $ 7,497     $ 7,553     $ 7,777     $ 8,205  
                                         

TDRs performing in accordance with modified terms

  $ 5,065     $ 5,289     $ 5,807     $ 5,282     $ 5,326  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

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

Loans charged-off

    968       1,192       277       427       359  

Recoveries of charged-off loans

    656       231       195       289       136  

Net charge-offs

    312       961       82       138       223  

(Credit) provsion for loan and lease losses

    (191 )     345       (494 )     (240 )     (54 )

Ending balance

  $ 9,825     $ 10,328     $ 10,944     $ 11,520     $ 11,898