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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20171107_8k.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

FNCB Bancorp, Inc. Announces

13% Increase in Third Quarter 2017 Earnings and 31% Increase in 2017 Year-to-Date Earnings

 

Dunmore, Pa., November 7, 2017/Globe Newswire/—FNCB Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), reported net income of $2.272 million, or $0.14 per basic and diluted share, for the third quarter of 2017, an increase of $255 thousand, or 12.6%, compared to net income of $2.017 million, or $0.12 per basic and diluted share, for the same quarter of 2016. Net income for the nine months ended September 30, 2017 increased $1.5 million, or 30.8%, to $6.3 million, or $0.37 per basic and diluted share, from $4.8 million, or $0.29 per basic and diluted share, for the comparable nine-month period of 2016. The favorable variances in third quarter and year-to-date earnings were largely due to improved net interest income and non-interest income, coupled with a reduction in non-interest expense. Annualized return on average assets was 0.80% and 0.74%, respectively, for the three and nine months ended September 30, 2017, compared to 0.73% and 0.58%, for the respective periods of 2016. Annualized return on average equity was 9.27% and 8.87%, respectively, for the three- and nine-month periods ended September 30, 2017, compared to 8.46% and 6.95%, respectively, for the comparable periods in 2016. Dividends declared and paid were $0.03 per share for the third quarter of 2017 and $0.09 per share for the year-to-date period of 2017, which represented a 50.0% increase compared to $0.02 per share and $0.06 per share, respectively, for the three and nine months ended September 30, 2016. Year-to-date dividends declared and paid represented a 1.6% annualized return to shareholders based on the closing stock price of $7.57 per share at September 30, 2017.

 

Performance Highlights:

 

 

7.9% increase in tax-equivalent net interest income, comparing the third quarters of 2017 and 2016;

 

Earning asset yield improves 19 basis points comparing third quarters of 2017 and 2016;

 

Tax-equivalent net interest margin increases 13 basis points comparing the third quarters of 2017 and 2016;

 

Efficiency ratio improved to 65.09% for the third quarter of 2017 from 70.96% for the comparable quarter of 2016;

 

Year over year growth in total deposits of $52.3 million, or 5.6%;

 

Closing stock price increases $2.57 per share, or 51.4%, year over year;

 

Tier I leverage ratio at September 30, 2017 improved 57 basis points, or 7.6%, from December 31, 2016;

 

Accelerated a $5.0 million principal reduction on FNCB’s subordinated notes originally due September 1, 2018 to September 1, 2017; and

 

Elected three new members to the boards of directors of FNCB and the Bank.

 

 

 

 

Our strong third quarter performance reflected solid, organic loan and deposit growth, improved earning asset yields and a continued focus on improving efficiency and maintaining stable non-interest expense levels,” stated Gerard A. Champi, President and Chief Executive Officer. “Also in the third quarter, we were pleased to welcome three new members to the boards of directors of both FNCB and the Bank. The new directors, all accomplished leaders among their respective industries and the communities we serve, will add great value and support to our organization in executing our strategic objectives,” concluded Mr. Champi.

 

Summary Results for the Three and Nine Months Ended September 30, 2017

 

Tax-equivalent net interest income improved $0.6 million, or 7.9%, to $8.5 million for the third quarter of 2017, from $7.9 million for the same quarter of 2016. For the nine months ended September 30, 2017, tax-equivalent net interest income increased $1.4 million, or 5.9%, to $24.8 million, compared to $23.4 million for the same nine months of 2016. The improvement for both the quarter and year-to-date periods primarily reflected higher yields earned on and growth in average earning assets, coupled with reduced reliance on borrowed funds, partially offset by higher funding costs. Tax-equivalent earning asset yields improved 19 basis points for the third quarter and 8 basis points for the nine months ended September 30, 2017 over the same periods of 2016. Average earning assets grew $36.8 million, or 3.7%, and $41.1 million, or 4.1%, comparing the quarter and year-to-date periods ended September 30, 2017 and 2016, respectively. Strong growth in lower-costing interest-bearing demand and savings accounts resulted in reduced reliance on higher-costing Federal Home Loan Bank of Pittsburgh (“FHLB”) advances, which provided for relatively stable funding costs despite upward movements in short-term interest rates. Comparing the three months ended September 30, 2017 and 2016, average interest-bearing deposits increased $55.2 million, or 7.5%, while average borrowed funds decreased $30.7 million, or 29.5%. For the nine months ended September 30, interest-bearing deposits averaged $794.7 million in 2017, an increase of $65.2 million, or 8.9%, compared to $729.5 million in 2016. Conversely, borrowed funds averaged $74.6 million for the nine months ended September 30, 2017, a decrease of $36.9 million, or 33.1%, from $111.5 million averaged for the same period of 2016. Comparing the three months and nine months ended September 30, 2017 and 2016, FNCB’s cost of funds increased 7 basis points and 3 basis points, respectively. The tax-equivalent net interest margin improved 13 basis points to 3.27% for the third quarter of 2017 from 3.14% for the same quarter 2016. In addition, the third quarter 2017 margin was a 6-basis point improvement from 3.21% for the second quarter of 2017. For the nine months ended September 30, 2017 the tax-equivalent net interest margin was 3.18%, a 5-basis point improvement compared to 3.13% for the same nine months of 2016.

 

For the three months and nine months ended September 30, 2017, non-interest income increased $0.3 million, or 24.2%, and $0.5 million, or 10.4%, compared to the respective periods of 2016. The improvement in both the quarter and year-to-date periods resulted primarily from increases in net gains realized on the sale of available-for-sale securities.

 

For the three months ended September 30, 2017, non-interest expense totaled $6.4 million, a decrease of $0.2 million, or 2.4%, from $6.6 million for the same three months of 2016. The decrease in non-interest expense comparing the quarterly periods reflected a decrease in rent expense associated with long-term facilities planning, coupled with reductions in legal, regulatory, and advertising expenses and other losses. For the nine months ended September 30, 2017, non-interest expense decreased $0.1 million, or 0.6%, compared to the same year-to-date period of 2016. The decrease in non-interest expense for the year-to-date periods was due largely to lower salary and benefit costs due to open positions and a decline in severance costs, coupled with lower regulatory and legal expenses, partially offset by higher occupancy and equipment expenses.

 

 

 

 

Asset Quality

 

Asset quality improved during the third quarter, as total non-performing loans decreased $1.0 million to $2.6 million at September 30, 2017 from $3.7 million at June 30, 2017, but were $0.4 million higher than $2.2 million at December 31, 2016. The ratio of non-performing loans to total loans was 0.35% at September 30, 2017, compared to 0.50% at June 30, 2017 and 0.31% at December 31, 2016. FNCB’s asset quality compared favorably to the peer average of 0.70% at June 30, 2017, the most recent data reported for FDIC-insured banks having assets between $1.0 billion and $3.0 billion. The allowance for loan and lease losses as a percentage of gross loans was 1.17% at September 30, 2017, compared to 1.16% at June 30, 2017 and 1.15% at December 31, 2016.

 

Financial Condition

 

Total assets increased $49.4 million, or 4.5%, to $1.157 billion at September 30, 2017 from $1.108 billion at June 30, 2017. The increase reflected strong deposit growth, which was used to fund earning asset growth and accelerate a $5.0 million principal payment on FNCB’s subordinated notes originally due September 1, 2018 to September 1, 2017. Total deposits increased $50.5 million, or 5.4%, which was due largely to cyclical deposit trends of municipal customers, as well as the development of new municipal relationships. Net loans grew $31.0 million, or 4.3%, to $750.6 million at September 30, 2017 from $719.6 million at June 30, 2017.

 

Total assets at September 30, 2017 decreased $38.5 million, or 3.2%, from $1.196 billion at December 31, 2016. The change in total assets from year-end 2016, primarily resulted from a $68.6 million, or 61.0%, reduction in cash and cash equivalents, which was driven by a $31.9 million reduction in total deposits, coupled with the repayment of borrowed funds of $18.2 million. The decrease in total deposits was attributed primarily to the anticipated exit of short-term deposits in the first quarter of 2017 that were received late in 2016, with the remainder used to fund earning asset growth. Net loans grew $27.8 million, or 3.8%, to $750.6 million at September 30, 2017 from $722.9 million at December 31, 2016. Additionally, securities available for sale increased $6.0 million, or 2.2%, to $282.0 million at the end of the third quarter of 2017 from $276.0 million at year-end 2016.

 

Total shareholders’ equity increased $7.1 million, or 7.9%, to $97.5 million at September 30, 2017 from $90.4 million at December 31, 2016. The capital improvement resulted primarily from net income of $6.3 million, coupled with a $1.7 million increase in accumulated other comprehensive income, from the appreciation in the fair value of available-for-sale securities, net of tax effects.

 

Availability of Filings

 

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

 

 

 

 

About FNCB Bancorp, Inc.:

FNCB Bancorp, Inc. is the bank holding company of FNCB Bank, which provides personal, small business and commercial banking services to individuals and businesses throughout Northeastern Pennsylvania through its 18 branch offices and Allentown-based Limited Purpose Banking Office. The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore, and had been operating under the name First National Community Bank from 1988 through June 2016. Effective June 30, 2016, the institution changed its name to FNCB Bank upon its conversion from a national charter to a Pennsylvania state charter. For more information about BauerFinancial 5-Star rated FNCB, visit www.fncb.com.

 

INVESTOR CONTACT:                          

James M. Bone, Jr., CPA          

Executive Vice President and           

Chief Financial Officer               

FNCB Bank               

(570) 348-6419               

james.bone@fncb.com                    

 

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

 

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control). The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary, fiscal and tax policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business; the composition and concentrations of FNCB’s lending risk and the adequacy of FNCB’s reserves to manage those risks; the valuation of FNCB’s investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB stock and fluctuations in the value of FNCB’s share price; the effectiveness of FNCB’s system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services’ laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the 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, 2016.

 

[FNCB provides tabular information as follows]

 

 

 

FNCB Bancorp, Inc.

Selected Financial Data

 

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 
   

2017

   

2017

   

2017

   

2016

   

2016

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.14     $ 0.11     $ 0.13     $ 0.09     $ 0.12  

Cash dividends declared

  $ 0.03     $ 0.03     $ 0.03     $ 0.03     $ 0.02  

Book value

  $ 5.82     $ 5.76     $ 5.58     $ 5.43     $ 5.81  

Tangible book value

  $ 5.82     $ 5.76     $ 5.58     $ 5.43     $ 5.81  

Market value:

                                       

High

  $ 8.00     $ 8.13     $ 7.50     $ 6.30     $ 6.00  

Low

  $ 7.41     $ 6.35     $ 6.05     $ 5.00     $ 4.75  

Close

  $ 7.57     $ 7.80     $ 6.37     $ 6.05     $ 5.00  

Common shares outstanding

    16,757,963       16,757,963       16,692,314       16,645,845       16,614,856  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.80 %     0.65 %     0.78 %     0.55 %     0.73 %

Annualized return on average shareholders' equity

    9.27 %     7.60 %     9.77 %     6.43 %     8.46 %

Efficiency ratio

    65.09 %     72.81 %     74.08 %     77.25 %     70.96 %

Tier I leverage ratio

    8.10 %     7.99 %     7.55 %     7.53 %     7.52 %

Total risk-based capital to risk-adjusted assets

    12.17 %     12.53 %     12.38 %     12.06 %     12.37 %

Average shareholders' equity to average total assets

    8.61 %     8.49 %     7.97 %     8.50 %     8.63 %

Yield on earning assets (FTE)

    3.77 %     3.66 %     3.47 %     3.53 %     3.58 %

Cost of funds

    0.59 %     0.53 %     0.48 %     0.49 %     0.52 %

Net interest spread (FTE)

    3.18 %     3.13 %     2.99 %     3.03 %     3.06 %

Net interest margin (FTE)

    3.27 %     3.21 %     3.07 %     3.11 %     3.14 %

Total delinquent loans/total loans

    0.81 %     0.94 %     0.75 %     0.81 %     0.72 %

Allowance for loan and lease losses/total loans

    1.17 %     1.16 %     1.16 %     1.15 %     1.17 %

Non-performing loans/total loans

    0.35 %     0.50 %     0.27 %     0.31 %     0.33 %

Annualized net charge-offs (recoveries)/average loans

    0.08 %     0.14 %     (0.20 %)     0.20 %     (0.09 %)

 

 

 

 

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Nine Months Ended

 
   

September 30,

 

(in thousands, except share data)

 

2017

   

2016

 

Interest income

               

Interest and fees on loans

  $ 21,748     $ 20,984  

Interest and dividends on securities

               

U.S. government agencies

    2,566       2,678  

State and political subdivisions, tax-free

    42       30  

State and political subdivisions, taxable

    2,816       1,834  

Other securities

    409       432  

Total interest and dividends on securities

    5,833       4,974  

Interest on interest-bearing deposits in other banks

    146       14  

Total interest income

    27,727       25,972  

Interest expense

               

Interest on deposits

    2,513       2,009  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    424       472  

Interest on subordinated debentures

    323       480  

Interest on junior subordinated debentures

    219       180  

Total interest on borrowed funds

    966       1,132  

Total interest expense

    3,479       3,141  

Net interest income before provision for loan and lease losses

    24,248       22,831  

Provision for loan and lease losses

    486       858  

Net interest income after provision for loan and lease losses

    23,762       21,973  

Non-interest income

               

Deposit service charges

    2,147       2,157  

Net gain on the sale of securities

    1,338       960  

Net gain on the sale of mortgage loans held for sale

    241       238  

Net gain on the sale of SBA guaranteed loans

    79       51  

Net gain on the sale of other repossessed assets

    47       -  

Net gain on the sale of other real estate owned

    57       29  

Loan-related fees

    252       287  

Income from bank-owned life insurance

    399       426  

Other

    747       657  

Total non-interest income

    5,307       4,805  

Non-interest expense

               

Salaries and employee benefits

    10,069       10,366  

Occupancy expense

    1,567       1,301  

Equipment expense

    1,380       1,277  

Data processing expense

    1,502       1,522  

Regulatory assessments

    497       629  

Bank shares tax

    762       746  

Expense of other real estate owned

    432       335  

Legal expense

    115       285  

Professional fees

    662       716  

Insurance expense

    385       384  

Other operating expenses

    2,894       2,821  

Total non-interest expense

    20,265       20,382  

Income before income taxes

    8,804       6,396  

Income tax expense

    2,543       1,611  

Net income

  $ 6,261     $ 4,785  
                 

Income per share

               

Basic

  $ 0.37     $ 0.29  

Diluted

  $ 0.37     $ 0.29  
                 

Cash dividends declared per common share

  $ 0.09     $ 0.06  

Weighted average number of shares outstanding:

               

Basic

    16,711,172       16,554,391  

Diluted

    16,728,852       16,556,154  

 

 

 
 

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(in thousands, except share data)

 

2017

   

2017

   

2017

   

2016

   

2016

 

Interest income

                                       

Interest and fees on loans

  $ 7,576     $ 7,192     $ 6,980     $ 7,008     $ 7,098  

Interest and dividends on securities

                                       

U.S. government agencies

    816       850       900       879       848  

State and political subdivisions, tax-free

    7       12       23       16       9  

State and political subdivisions, taxable

    1,016       978       822       740       675  

Other securities

    166       119       124       114       127  

Total interest and dividends on securities

    2,005       1,959       1,869       1,749       1,659  

Interest on interest-bearing deposits in other banks

    24       32       90       19       8  

Total interest income

    9,605       9,183       8,939       8,776       8,765  

Interest expense

                                       

Interest on deposits

    943       826       744       721       704  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    163       130       131       123       157  

Interest on subordinated debentures

    97       114       112       145       162  

Interest on junior subordinated debentures

    77       73       69       67       62  

Total interest on borrowed funds

    337       317       312       335       381  

Total interest expense

    1,280       1,143       1,056       1,056       1,085  

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

    8,325       8,040       7,883       7,720       7,680  

Provision (credit) for loan and lease losses

    543       421       (478 )     295       (234 )

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

    7,782       7,619       8,361       7,425       7,914  

Non-interest income

                                       

Deposit service charges

    728       728       691       735       739  

Net gain on the sale of securities

    367       693       278       -       -  

Net gain on the sale of mortgage loans held for sale

    106       110       25       102       99  

Net (loss) gain on the sale of other repossessed assets

    -       (10 )     57       -       -  

Net gain on the sale of SBA guaranteed loans

    23       56       -       -       51  

Net gain on the sale of other real estate owned

    -       6       51       20       32  

Loan-related fees

    96       65       91       152       85  

Income from bank-owned life insurance

    129       135       135       126       137  

Other

    265       240       242       263       237  

Total non-interest income

    1,714       2,023       1,570       1,398       1,380  

Non-interest expense

                                       

Salaries and employee benefits

    3,247       3,298       3,524       3,954       3,263  

Occupancy expense

    394       586       587       476       479  

Equipment expense

    474       446       460       455       429  

Data processing expense

    506       509       487       475       505  

Regulatory assessments

    160       164       173       100       199  

Bank shares tax

    252       252       258       90       253  

Expense of other real estate owned

    104       288       40       74       95  

Legal expense

    23       24       68       77       79  

Professional fees

    206       180       276       245       157  

Insurance expense

    132       128       125       132       131  

Other operating expenses

    899       1,065       930       1,085       963  

Total non-interest expense

    6,397       6,940       6,928       7,163       6,553  

Income before income taxes

    3,099       2,702       3,003       1,660       2,741  

Income tax expense

    827       910       806       136       724  

Net income

  $ 2,272     $ 1,792     $ 2,197     $ 1,524     $ 2,017  
                                         

Income per share

                                       

Basic

  $ 0.14     $ 0.11     $ 0.13     $ 0.09     $ 0.12  

Diluted

  $ 0.14     $ 0.11     $ 0.13     $ 0.09     $ 0.12  
                                         

Cash dividends declared per common share

  $ 0.03     $ 0.03     $ 0.03     $ 0.03     $ 0.02  

Weighted average number of shares outstanding:

                                       

Basic

    16,757,963       16,716,899       16,657,551       16,621,467       16,593,811  

Diluted

    16,777,671       16,736,995       16,670,788       16,621,467       16,593,811  

 

 

 

 

FNCB Bancorp, Inc.

Consolidated Balance Sheets

 

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(in thousands)

 

2017

   

2017

   

2017

   

2016

   

2016

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 24,881     $ 24,169     $ 23,571     $ 20,562     $ 24,558  

Interest-bearing deposits in other banks

    18,929       1,991       3,154       91,883       32,778  

Total cash and cash equivalents

    43,810       26,160       26,725       112,445       57,336  

Securities available for sale, at fair value

    282,037       283,040       288,295       276,015       266,951  

Stock in Federal Home Loan Bank of Pittsburgh at cost

    2,450       2,282       2,678       3,311       2,741  

Loans held for sale

    147       617       563       596       185  

Loans, net of net deferred costs and unearned income

    759,489       728,141       715,450       731,279       726,662  

Allowance for loan and lease losses

    (8,862 )     (8,469 )     (8,306 )     (8,419 )     (8,490 )

Net loans

    750,627       719,672       707,144       722,860       718,172  

Bank premises and equipment, net

    10,482       10,715       10,914       10,784       10,615  

Accrued interest receivable

    3,203       2,784       2,950       2,757       2,736  

Bank-owned life insurance

    30,332       30,203       30,068       29,933       29,807  

Other real estate owned

    1,088       1,183       1,352       2,048       2,065  

Other assets

    32,935       31,083       33,414       34,850       31,293  

Total assets

  $ 1,157,111     $ 1,107,739     $ 1,104,103     $ 1,195,599     $ 1,121,901  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 162,426     $ 147,878     $ 156,901     $ 173,702     $ 157,119  

Interest-bearing

    820,786       784,872       766,525       841,437       773,840  

Total deposits

    983,212       932,750       923,426       1,015,139       930,959  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    45,350       44,903       56,632       58,537       58,837  

Subordinated debentures

    5,000       10,000       10,000       10,000       14,000  

Junior subordinated debentures

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

Total borrowed funds

    60,660       65,213       76,942       78,847       83,147  

Accrued interest payable

    244       235       225       242       294  

Other liabilities

    15,513       12,797       10,107       11,000       10,614  

Total liabilities

    1,059,629       1,010,995       1,010,700       1,105,228       1,025,014  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    20,947       20,947       20,865       20,807       20,768  

Additional paid-in capital

    63,143       63,076       62,841       62,593       62,381  

Retained earnings

    13,282       11,517       10,228       8,531       7,506  

Accumulated other comprehensive income (loss)

    110       1,204       (531 )     (1,560 )     6,232  

Total shareholders' equity

    97,482       96,744       93,403       90,371       96,887  

Total liabilities and shareholders’ equity

  $ 1,157,111     $ 1,107,739     $ 1,104,103     $ 1,195,599     $ 1,121,901  

 

 

 
 

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(dollars in thousands)

 

2017

   

2017

   

2017

   

2016

   

2016

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 7,266     $ 6,874     $ 6,643     $ 6,709     $ 6,751  

Loans - tax-free

    470       482       511       453       526  

Total loans

    7,736       7,356       7,154       7,162       7,277  

Securities:

                                       

Securities, taxable

    1,998       1,947       1,846       1,733       1,650  

Securities, tax-free

    11       18       35       24       14  

Total interest and dividends on securities

    2,009       1,965       1,881       1,757       1,664  

Interest-bearing deposits in other banks

    24       32       90       19       8  

Total interest income

    9,769       9,353       9,125       8,938       8,949  

Interest expense

                                       

Deposits

    943       826       744       721       704  

Borrowed funds

    337       317       312       335       381  
      1,280       1,143       1,056       1,056       1,085  

Net interest income

  $ 8,489     $ 8,210     $ 8,069     $ 7,882     $ 7,864  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 700,729     $ 682,426     $ 680,518     $ 684,225     $ 685,038  

Loans - tax-free

    38,109       40,190       43,822       41,081       47,620  

Total loans

    738,838       722,616       724,340       725,306       732,658  

Securities:

                                       

Securities, taxable

    290,348       287,133       284,712       270,634       260,431  

Securities, tax-free

    600       1,105       2,571       1,664       905  

Total securities

    290,948       288,238       287,283       272,298       261,336  

Interest-bearing deposits in other banks

    7,499       12,676       39,520       15,727       6,448  

Total interest-earning assets

    1,037,285       1,023,530       1,051,143       1,013,331       1,000,442  

Non-earning assets

    92,603       90,672       92,368       95,322       99,010  

Total assets

  $ 1,129,888     $ 1,114,202     $ 1,143,511     $ 1,108,653     $ 1,099,452  

Interest-bearing liabilities:

                                       

Deposits

  $ 792,649     $ 783,672     $ 807,981     $ 775,565     $ 737,431  

Borrowed funds

    73,168       72,347       78,306       78,780       103,821  

Total interest-bearing liabilities

    865,817       856,019       886,287       854,345       841,252  

Demand deposits

    156,483       152,974       155,010       149,008       152,319  

Other liabilities

    10,325       10,633       11,045       11,029       11,006  

Shareholders' equity

    97,263       94,576       91,169       94,271       94,875  

Total liabilities and shareholders' equity

  $ 1,129,888     $ 1,114,202     $ 1,143,511     $ 1,108,653     $ 1,099,452  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    4.15 %     4.03 %     3.90 %     3.94 %     3.94 %

Interest and fees on loans - tax-free

    4.93 %     4.80 %     4.66 %     4.41 %     4.42 %

Total loans

    4.19 %     4.07 %     3.95 %     3.97 %     3.97 %

Securities:

                                       

Securities, taxable

    2.75 %     2.71 %     2.59 %     2.56 %     2.53 %

Securities, tax-free

    7.33 %     6.51 %     5.42 %     5.83 %     6.19 %

Total securities

    2.76 %     2.73 %     2.62 %     2.58 %     2.55 %

Interest-bearing deposits in other banks

    1.28 %     1.01 %     0.91 %     0.48 %     0.50 %

Total earning assets

    3.77 %     3.66 %     3.47 %     3.53 %     3.58 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.48 %     0.42 %     0.37 %     0.37 %     0.38 %

Interest on borrowed funds

    1.84 %     1.75 %     1.59 %     1.70 %     1.47 %

Total interest-bearing liabilities

    0.59 %     0.53 %     0.48 %     0.49 %     0.52 %

Net interest spread

    3.18 %     3.13 %     2.99 %     3.03 %     3.06 %

Net interest margin

    3.27 %     3.21 %     3.07 %     3.11 %     3.14 %

 

 

 
 

FNCB Bancorp, Inc.

Asset Quality Data

 

   

Sept 30,

   

June 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

 

(in thousands)

 

2017

   

2017

   

2017

   

2016

   

2016

 

At period end

                                       

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

  $ 2,642     $ 3,681     $ 1,922     $ 2,234     $ 2,416  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    2,642       3,681       1,922       2,234       2,416  

Other real estate owned (OREO)

    1,088       1,183       1,352       2,048       2,065  

Other non-performing assets

    1,900       1,900       2,006       2,160       260  

Total non-performing assets

  $ 5,630     $ 6,764     $ 5,280     $ 6,442     $ 4,741  
                                         

Accruing TDRs

  $ 9,283     $ 9,306     $ 8,775     $ 4,176     $ 4,106  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 8,469     $ 8,306     $ 8,419     $ 8,490     $ 8,559  

Loans charged-off

    377       465       297       572       189  

Recoveries of charged-off loans

    227       207       662       206       354  

Net charge-offs (recoveries)

    150       258       (365 )     366       (165 )

Provision (credit) for loan and lease losses

    543       421       (478 )     295       (234 )

Ending balance

  $ 8,862     $ 8,469     $ 8,306     $ 8,419     $ 8,490