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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20160428_8k.htm

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

  

First National Community Bancorp, Inc. Reports

First Quarter 2016 Net Income

 

 

Dunmore, Pa., April 29, 2016/Globe Newswire/—First National Community Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), announced operating results for the quarter ended March 31, 2016. FNCB reported net income of $1.1 million, or $0.07 per basic and diluted share. Net income for the comparable period of 2015 was $3.5 million, or $0.21 per basic and diluted share. The $2.4 million decrease in first quarter earnings reflected lower non-interest income, a provision for loan and lease losses in 2016 versus a credit for loan and lease losses in 2015, partially offset by an increase in net interest income. Annualized return on average assets and return on average equity were 0.42% and 5.15%, respectively, for the three months ended March 31, 2016, compared to 1.45% and 26.34%, respectively, for the same three months of 2015. FNCB paid holders of its common stock a dividend of $0.02 per share for the first quarter of 2016. FNCB did not pay a dividend for the first quarter of 2015.

 

Performance Highlights:

 

 

Paid a dividend of $0.02 per share in the first quarter of 2016, the first quarterly dividend payment since the fourth quarter of 2009;

 

Year over year growth of $1.3 million, or 20.0%, in net interest income;

 

26 basis point improvement in tax-equivalent net interest margin in the first quarter of 2016 compared to same quarter of 2015;

 

Year over year growth of 9.4% in average earning assets; and

 

Paid $10.8 million in deferred and accrued interest on subordinated debt.

 

 

“We are pleased with FNCB’s first quarter results, which reflected normalized core earnings growth, net interest margin improvement and strong earning asset growth” stated Steven R. Tokach, President and Chief Executive Officer. “In addition, we were successful in achieving two significant goals during the first quarter. We were able to make our subordinated noteholders whole as to deferred interest, which significantly improved our leverage position, and provide a return to our loyal shareholders through the payment of a first quarter dividend. We sincerely appreciate the ongoing trust and support of these stakeholders,” concluded Mr. Tokach.

 

 
 

 

 

Summary Results for the Three Months Ended March 31, 2016

 

Net interest income before the provision for loan and lease losses was $7.5 million for the first three months of 2016, an increase of $1.3 million, or 20.0%, compared to $6.3 million for the same period in 2015. Tax-equivalent interest income increased $0.8 million, or 10.7%, to $8.7 million for the three-month period ended March 31, 2016 compared to $7.9 million in 2015. The increase primarily reflected an $84.9 million, or 9.4%, increase in average earning assets. Specifically, average loans grew $56.8 million, or 8.4%, comparing the first quarters of 2016 and 2015, while average investment securities increased $59.1 million, or 29.8%. Also positively impacting net interest income was a 27 basis point decrease in the cost of funds to 0.48% for the first three months of 2016 from 0.75% for the same three months of 2015, which was the primary factor leading to a $0.4 million reduction in interest expense. Causing the greatest impact in funding costs was a 168 basis point decrease in the cost of borrowed funds, which resulted from a modification of the interest rate on FNCB’s subordinated notes from 9.00% to 4.50% mid-2015. Partially offsetting the impact of the reduction in funding costs was an $81.5 million, or 10.8%, increase in average interest-bearing liabilities. The tax-equivalent net interest margin for the three months ended March 31, 2016 was 3.11%, an improvement of 26 basis points from 2.85% for the same period in 2015.

 

For the three months ended March 31, 2016 non-interest income totaled $1.3 million, a decrease of $2.1 million, or 61.1%, compared to $3.4 million for the same three months of 2015. The change resulted primarily from a decrease in net gains on the sale of securities of $2.1 million to $103 thousand in 2016 from $2.2 million in 2015. In addition, FNCB experienced a decrease of $40 thousand in other income, and a net loss of $5 thousand on the sale of OREO compared to a net gain of $5 thousand in 2015. Partially offsetting these decreases were increases in net gains on the sale of mortgage loans of $28 thousand, service charges on deposits of $27 thousand, loan-related fees of $17 thousand and income from bank-owned life insurance of $11 thousand.

 

Non-interest expense remained relatively flat comparing the three months ended March 31, 2016 and 2015, increasing by $22 thousand, or 0.3%. The increases were primarily a rise in salaries and benefits expense of $375 thousand, or 11.94%, along with a $74 thousand increase in data processing expenses and a $39 thousand increase in equipment expense. The increase in salaries and benefits expense resulted from additions to staff, coupled with a 30.8% increase in health insurance costs. The recent conversion to a new core operating system in the fourth quarter of 2015 and other planned improvements to FNCB’s technology infrastructure caused the increase in data processing expense and equipment expense, specifically maintenance contract costs and depreciation. These increases were mostly offset by decreases in regulatory assessments of $172 thousand, or 42.0%, occupancy expenses of $140 thousand, insurance expenses of $70 thousand, expenses of other real estate owned of $54 thousand, and legal expenses of $43 thousand.

 

Improved Asset Quality

 

FNCB’s asset quality continued to improve through March 31, 2016, a result of the effective management of problem credits and delinquent loans. Total non-performing loans decreased $219 thousand, or 5.8%, to $3.6 million at March 31, 2016 from December 31, 2015. The ratio of non-performing loans to total loans improved 3 basis points to 0.49% at March 31, 2016, compared to 0.52% at December 31, 2015. The allowance for loan and lease losses as a percentage of gross loans was 1.19% at March 31, 2016 versus 1.20% at the end of 2015. FNCB’s ratio of total delinquent loans to total loans at March 31, 2016 was 0.82%, a 2 basis point improvement from 0.84% at December 31, 2015. Each of these asset quality metrics compare favorably to industry peer.

 

 
 

 

 

Financial Condition

 

FNCB’s total assets were relatively stable, decreasing $5.6 million, or 0.5%, to $1.085 billion at March 31, 2016 from $1.091 billion at December 31, 2015. The balance sheet change primarily reflected reductions of $5.4 million in loans, net of the ALLL, $2.4 million in FHLB of Pittsburgh stock, $1.3 million in OREO and $2.9 million in cash and cash equivalents, which were mostly offset by an increase in available-for-sale securities of $9.8 million. Total deposits grew $61.6 million, or 7.5%, due primarily to the attainment of a new municipal deposit relationship, along with an influx of public deposits related to the release of state government funds in early 2016 as a result of the state budget impasse. The deposit growth was used to repay borrowings from the FHLB of Pittsburgh, which declined $61.3 million, or 45.1%, when comparing March 31, 2016 and December 31, 2015. In addition, FNCB repaid all accrued interest totaling $10.8 million that had been deferred on the subordinated notes for the period September 1, 2010 through May 31, 2015.

 

Total shareholders’ equity increased $5.9 million, or 6.8%, to $92.0 million at March 31, 2016 from $86.2 million at December 31, 2015. The capital improvement resulted primarily from a $5.0 million increase in accumulated other comprehensive income from the appreciation in the fair value of available-for-sale securities, net of tax effects, coupled with net income of $1.1 million for the first quarter of 2015. Partially offsetting these increases was $0.3 million in dividends paid to common shareholders.

 

Availability of Filings

 

Copies of FNCB’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. All of FNCB’s filings with the Securities and Exchange Commission are also available on the Investor Relations page of FNCB’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                    

 

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 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 FNCB to compete with other institutions for business; 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 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 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, 2015.

 

 

[The Company provides tabular information as follows]

 

 
 

 

 

First National Community Bancorp, Inc.

Selected Financial Data

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 
   

2016

   

2015

   

2015

   

2015

   

2015

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.07     $ 1.77     $ 0.14     $ 0.05     $ 0.21  

Cash dividends declared

  $ 0.02     $ -     $ -     $ -     $ -  

Book value

  $ 5.57     $ 5.22     $ 3.61     $ 3.33     $ 3.38  

Tangible book value

  $ 5.56     $ 5.21     $ 3.60     $ 3.31     $ 3.36  

Market value:

                                       

High

  $ 6.90     $ 5.50     $ 6.05     $ 6.55     $ 5.40  

Low

  $ 5.11     $ 5.06     $ 5.02     $ 5.15     $ 5.25  

Close

  $ 6.12     $ 5.25     $ 5.19     $ 6.05     $ 5.26  

Common shares outstanding

    16,530,432       16,514,245       16,500,945       16,500,945       16,500,945  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.42 %     10.99 %     0.91 %     0.34 %     1.45 %

Annualized return on average shareholders' equity

    5.15 %     192.68 %     16.38 %     5.89 %     26.34 %

Tier I leverage ratio

    7.08 %     7.27 %     6.57 %     6.64 %     6.57 %

Total risk-based capital to risk-adjusted assets

    11.81 %     11.79 %     11.20 %     11.60 %     12.96 %

Average shareholders' equity to average total assets

    8.15 %     5.70 %     5.55 %     5.73 %     5.52 %

Yield on earning assets (FTE)

    3.52 %     3.56 %     3.50 %     3.45 %     3.48 %

Cost of funds

    0.48 %     0.48 %     0.51 %     0.73 %     0.75 %

Net interest spread (FTE)

    3.04 %     3.08 %     2.98 %     2.72 %     2.73 %

Net interest margin (FTE)

    3.11 %     3.15 %     3.07 %     2.85 %     2.85 %

Total delinquent loans/total loans

    0.82 %     0.84 %     1.29 %     1.34 %     1.10 %

Allowance for loan and lease losses/total loans

    1.19 %     1.21 %     1.36 %     1.51 %     1.63 %

Non-performing loans/total loans

    0.49 %     0.52 %     0.93 %     0.84 %     0.77 %

Net charge-offs/average loans

    0.47 %     0.02 %     0.04 %     0.14 %     0.01 %

  

 
 

 

 

First National Community Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

March 31,

 

(in thousands, except share data)

 

2016

   

2015

 

Interest income

               

Interest and fees on loans

  $ 6,969     $ 6,472  

Interest and dividends on securities

               

U.S. government agencies

    930       971  

State and political subdivisions, tax-free

    10       50  

State and political subdivisions, taxable

    535       26  

Other securities

    96       157  

Total interest and dividends on securities

    1,571       1,204  

Interest on interest-bearing deposits in other banks

    4       21  

Total interest income

    8,544       7,697  

Interest expense

               

Interest on deposits

    642       683  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    148       120  

Interest on subordinated debentures

    159       563  

Interest on junior subordinated debentures

    57       49  

Total interest on borrowed funds

    364       732  

Total interest expense

    1,006       1,415  

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

    7,538       6,282  

Provision (credit) for loan and lease losses

    696       (494 )

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

    6,842       6,776  

Non-interest income

               

Deposit service charges

    701       674  

Net gain on the sale of securities

    103       2,224  

Net gain on the sale of mortgage loans held for sale

    68       40  

Net (loss) gain on the sale of other real estate owned

    (5 )     5  

Loan-related fees

    107       90  

Income from bank-owned life insurance

    146       135  

Other

    211       251  

Total non-interest income

    1,331       3,419  

Non-interest expense

               

Salaries and employee benefits

    3,514       3,139  

Occupancy expense

    493       633  

Equipment expense

    423       384  

Data processing expense

    523       448  

Regulatory assessments

    237       409  

Bank shares tax

    241       217  

Expense of other real estate owned

    46       100  

Legal expense

    120       163  

Professional fees

    287       301  

Insurance expense

    128       198  

Other operating expenses

    792       790  

Total non-interest expense

    6,804       6,782  

Income before income taxes

    1,369       3,413  

Income tax expense (benefit)

    226       (62 )

Net income

  $ 1,143     $ 3,475  
                 

Income per share

               

Basic

  $ 0.07     $ 0.21  

Diluted

  $ 0.07     $ 0.21  
                 

Cash dividends declared per common share

  $ 0.02     $ -  

Weighted average number of shares outstanding:

               

Basic

    16,519,759       16,490,111  

Diluted

    16,519,759       16,490,111  

 

 
 

 

 

First National Community Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands, except share data)

 

2016

   

2015

   

2015

   

2015

   

2015

 

Interest income

                                       

Interest and fees on loans

  $ 6,969     $ 7,032     $ 6,693     $ 6,475     $ 6,472  

Interest and dividends on securities

                                       

U.S. government agencies

    930       992       1,061       1,012       971  

State and political subdivisions, tax-free

    10       18       19       22       50  

State and political subdivisions, taxable

    535       458       324       97       26  

Other securities

    96       102       92       82       157  

Total interest and dividends on securities

    1,571       1,570       1,496       1,213       1,204  

Interest on interest-bearing deposits in other banks

    4       4       10       11       21  

Total interest income

    8,544       8,606       8,199       7,699       7,697  

Interest expense

                                       

Interest on deposits

    642       628       677       643       683  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    148       147       128       119       120  

Interest on subordinated debentures

    159       160       162       565       563  

Interest on junior subordinated debentures

    57       56       50       51       49  

Total interest on borrowed funds

    364       363       340       735       732  

Total interest expense

    1,006       991       1,017       1,378       1,415  

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

    7,538       7,615       7,182       6,321       6,282  

Provision (credit) for loan and lease losses

    696       (1,005 )     (191 )     345       (494 )

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

    6,842       8,620       7,373       5,976       6,776  

Non-interest income

                                       

Deposit service charges

    701       742       799       745       674  

Net gain (loss) on the sale of securities

    103       (6 )     4       74       2,224  

Net gain on the sale of mortgage loans held for sale

    68       223       13       16       40  

Net (loss) gain on the sale of other real estate owned

    (5 )     17       129       11       5  

Loan-related fees

    107       152       94       106       90  

Income from bank-owned life insurance

    146       149       145       135       135  

Legal settlements

    -       -       -       184       -  

Other

    211       180       195       274       251  

Total non-interest income

    1,331       1,457       1,379       1,545       3,419  

Non-interest expense

                                       

Salaries and employee benefits

    3,514       4,228       3,240       3,203       3,139  

Occupancy expense

    493       619       500       532       633  

Equipment expense

    423       423       408       442       384  

Data processing expense

    523       556       471       501       448  

Regulatory assessments

    237       239       203       99       409  

Bank shares tax

    241       53       217       218       217  

Expense of other real estate owned

    46       62       91       147       100  

Legal expense

    120       106       80       88       163  

Professional fees

    287       234       193       286       301  

Insurance expense

    128       131       128       202       198  

Legal settlement

    -       777       -       -       -  

Other operating expenses

    792       1,159       884       962       790  

Total non-interest expense

    6,804       8,587       6,415       6,680       6,782  

Income before income taxes

    1,369       1,490       2,337       841       3,413  

Income tax expense (benefit)

    226       (27,719 )     -       22       (62 )

Net income

  $ 1,143     $ 29,209     $ 2,337     $ 819     $ 3,475  
                                         

Income per share

                                       

Basic

  $ 0.07     $ 1.77     $ 0.14     $ 0.05     $ 0.21  

Diluted

  $ 0.07     $ 1.77     $ 0.14     $ 0.05     $ 0.21  
                                         

Cash dividends declared per common share

  $ 0.02     $ -     $ -     $ -     $ -  

Weighted average number of shares outstanding:

                                       

Basic

    16,519,759       16,506,294       16,500,945       16,500,945       16,490,111  

Diluted

    16,519,759       16,506,294       16,500,945       16,500,945       16,490,111  

  

 
 

 

 

First National Community Bancorp, Inc.

Consolidated Balance Sheets

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2016

   

2015

   

2015

   

2015

   

2015

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 16,367     $ 19,544     $ 20,631     $ 22,443     $ 19,985  

Interest-bearing deposits in other banks

    1,847       1,539       10,383       49,872       17,390  

Total cash and cash equivalents

    18,214       21,083       31,014       72,315       37,375  

Securities available for sale, at fair value

    263,523       253,773       249,228       226,539       204,635  

Stock in Federal Home Loan Bank of Pittsburgh at cost

    3,932       6,344       4,298       2,684       3,061  

Loans held for sale

    455       683       4,634       138       -  

Loans, net of net deferred costs and unearned income

    728,158       733,716       723,166       683,588       672,165  

Allowance for loan and lease losses

    (8,635 )     (8,790 )     (9,825 )     (10,328 )     (10,944 )

Net loans

    719,523       724,926       713,341       673,260       661,221  

Bank premises and equipment, net

    10,904       11,193       11,258       11,059       11,221  

Accrued interest receivable

    2,854       2,475       2,618       2,174       2,118  

Intangible assets

    96       137       179       220       261  

Bank-owned life insurance

    29,527       29,381       29,232       29,087       28,952  

Other real estate owned

    1,806       3,154       1,618       1,740       2,369  

Other assets

    34,181       37,469       7,799       8,455       9,028  

Total assets

  $ 1,085,015     $ 1,090,618     $ 1,055,219     $ 1,027,671     $ 960,241  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 162,882     $ 154,531     $ 152,038     $ 144,075     $ 134,993  

Interest-bearing

    720,243       667,015       700,004       721,293       640,118  

Total deposits

    883,125       821,546       852,042       865,368       775,111  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    74,511       135,802       93,058       57,771       67,612  

Subordinated debentures

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

Junior subordinated debentures

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

Total borrowed funds

    98,821       160,112       117,368       82,081       102,922  

Accrued interest payable

    333       11,165       11,187       11,344       10,788  

Other liabilities

    10,695       11,617       14,989       13,935       15,678  

Total liabilities

    992,974       1,004,440       995,586       972,728       904,499  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    20,663       20,643       20,626       20,626       20,626  

Additional paid-in capital

    62,069       62,059       61,939       61,870       61,801  

Retained earnings (accumulated deficit)

    4,527       3,714       (25,495 )     (27,832 )     (28,651 )

Accumulated other comprehensive income (loss)

    4,782       (238 )     2,563       279       1,966  

Total shareholders' equity

    92,041       86,178       59,633       54,943       55,742  

Total liabilities and shareholders’ equity

  $ 1,085,015     $ 1,090,618     $ 1,055,219     $ 1,027,671     $ 960,241  

  

 
 

 

 

First National Community Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(dollars in thousands)

 

2016

   

2015

   

2015

   

2015

   

2015

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 6,603     $ 6,694     $ 6,371     $ 6,148     $ 6,148  

Loans - tax-free

    555       512       488       495       491  

Total loans

    7,158       7,206       6,859       6,643       6,639  

Securities:

                                       

Securities, taxable

    1,561       1,552       1,477       1,191       1,154  

Securities, tax-free

    15       27       29       33       76  

Total interest and dividends on securities

    1,576       1,579       1,506       1,224       1,230  

Interest-bearing deposits in other banks

    4       4       10       11       21  

Total interest income

    8,738       8,789       8,375       7,878       7,890  

Interest expense

                                       

Deposits

    642       628       677       643       683  

Borrowed funds

    364       363       340       735       732  

Total interest expense

    1,006       991       1,017       1,378       1,415  

Net interest income

  $ 7,732     $ 7,798     $ 7,358     $ 6,500     $ 6,475  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 683,198     $ 685,795     $ 660,709     $ 637,005     $ 633,731  

Loans - tax-free

    48,433       43,429       41,746       42,225       41,125  

Total loans

    731,631       729,224       702,455       679,230       674,856  

Securities:

                                       

Securities, taxable

    256,555       251,108       241,799       211,833       194,268  

Securities, tax-free

    1,107       1,713       1,707       2,007       4,283  

Total securities

    257,662       252,821       243,506       213,840       198,551  

Interest-bearing deposits in other banks

    3,746       6,797       12,185       18,984       34,708  

Total interest-earning assets

    993,039       988,842       958,146       912,054       908,115  

Non-earning assets

    101,958       65,633       62,063       62,254       61,476  

Total assets

  $ 1,094,997     $ 1,054,475     $ 1,020,209     $ 974,308     $ 969,591  

Interest-bearing liabilities:

                                       

Deposits

  $ 725,369     $ 702,783     $ 690,039     $ 646,656     $ 658,193  

Borrowed funds

    113,386       119,281       105,109       108,234       99,046  

Total interest-bearing liabilities

    838,755       822,064       795,148       754,890       757,239  

Demand deposits

    146,994       146,457       143,140       137,674       132,316  

Other liabilities

    19,967       25,811       25,303       25,964       26,525  

Shareholders' equity

    89,281       60,143       56,618       55,780       53,511  

Total liabilities and shareholders' equity

  $ 1,094,997     $ 1,054,475     $ 1,020,209     $ 974,308     $ 969,591  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    3.87 %     3.90 %     3.86 %     3.86 %     3.88 %

Interest and fees on loans - tax-free

    4.58 %     4.72 %     4.67 %     4.69 %     4.78 %

Total loans

    3.91 %     3.95 %     3.91 %     3.91 %     3.94 %

Securities:

                                       

Securities, taxable

    2.43 %     2.47 %     2.44 %     2.25 %     2.38 %

Securities, tax-free

    5.48 %     6.37 %     6.75 %     6.64 %     7.10 %

Total securities

    2.45 %     2.50 %     2.47 %     2.29 %     2.48 %

Interest-bearing deposits in other banks

    0.43 %     0.24 %     0.33 %     0.23 %     0.24 %

Total earning assets

    3.52 %     3.56 %     3.50 %     3.45 %     3.48 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.35 %     0.36 %     0.39 %     0.40 %     0.42 %

Interest on borrowed funds

    1.28 %     1.22 %     1.29 %     2.72 %     2.96 %

Total interest-bearing liabilities

    0.48 %     0.48 %     0.51 %     0.73 %     0.75 %

Net interest spread

    3.04 %     3.08 %     2.98 %     2.72 %     2.73 %

Net interest margin

    3.11 %     3.15 %     3.07 %     2.85 %     2.85 %

  

 
 

 

 

First National Community Bancorp, Inc.

Asset Quality Data

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2016

   

2015

   

2015

   

2015

   

2015

 

At period end

                                       

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

  $ 3,569     $ 3,788     $ 6,741     $ 5,757     $ 5,184  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    3,569       3,788       6,741       5,757       5,184  

Other real estate owned (OREO)

    1,806       3,154       1,618       1,740       2,369  

Total non-performing loans and OREO

  $ 5,375     $ 6,942     $ 8,359     $ 7,497     $ 7,553  
                                         

Accruing TDRs

  $ 4,623     $ 4,982     $ 5,065     $ 5,289     $ 5,807  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 8,790     $ 9,825     $ 10,328     $ 10,944     $ 11,520  

Loans charged-off

    1,148       198       968       1,192       277  

Recoveries of charged-off loans

    297       168       656       231       195  

Net charge-offs

    851       30       312       961       82  

Provision (credit) for loan and lease losses

    696       (1,005 )     (191 )     345       (494 )

Ending balance

  $ 8,635     $ 8,790     $ 9,825     $ 10,328     $ 10,944