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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20180419_8k.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

FNCB Bancorp, Inc. Announces 1st Quarter 2018 Earnings

 

Dunmore, Pa., April 20, 2018—FNCB Bancorp, Inc. (NASDAQ: FNCB) (“FNCB”), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.0 million, or $0.12 per basic and diluted share, for the three months ended March 31, 2018, compared to net income of $2.2 million, or $0.13 per basic and diluted share, for the same period of 2017. For the first quarter of 2018, higher net interest income and a reduction in income tax expense were slightly more than offset by an increase in non-interest expense and a $0.7 million provision for loan and lease losses compared to a credit for loan and lease losses of $0.5 million for the same three months of 2017. The provision for loan losses for the first quarter of 2018 largely reflected strong loan growth, as loans, net of unearned income and net deferred loan costs, increased $37.6 million, or 4.9%, from December 31, 2017. Annualized return on average assets and return on average equity was 0.70% and 9.44%, respectively, for the three months ended March 31, 2018, compared to 0.78% and 9.77%, respectively, for the same three months of 2017. FNCB paid holders of its common stock a dividend of $0.04 per share for the first quarter of 2018, a 33.3% increase compared to $0.03 per share for the same period of 2017.

 

 

1st QUARTER 2018 HIGHLIGHTS

 

 

Net interest income increases $1.0 million, or 12.6%, comparing first quarters of 2018 and 2017;

 

First quarter 2018 net interest margin (FTE) improves 19 basis points to 3.26%, compared to 3.07% for the same quarter of 2017;

 

Year over year growth in loans, net of unearned income, of $92.8 million, or 13.0%;

 

FNCB common stock began trading on The Nasdaq Capital Market effective with the opening bell on March 5, 2018;

 

First quarter dividend increases 33.3% comparing 2018 and 2017.

 

 

“Strong, organic loan growth was the driving factor behind our operating performance for the first quarter of 2018, leading to significant improvement in net interest income,” said Gerard A. Champi, President and Chief Executive Officer. “The loan growth directly factored into a higher loan and lease loss provision, as our asset quality continues to remain favorable,” continued Champi. “We are excited to enter the second quarter of 2018 and look forward to the opening of our new, state-of-the-art branch office located in Plains Township, Luzerne County, Pennsylvania. This new branch, which will feature the “personal banker” model, will provide our customers with an enhanced, more personalized banking experience,” concluded Champi.

 

Summary Results for the First Three Months of 2018

Tax-equivalent net interest income increased $0.9 million, or 11.3%, to $9.0 million for the first three months of 2018, from $8.1 million for the same period in 2017. The improvement reflected strong growth in average-earning assets and higher yields on the loan and investment portfolios due to increases in market interest rates, partially offset by an increase in the cost of funds. Tax-equivalent interest income increased $1.4 million, or 15.5%, to $10.5 million for the three-month period ended March 31, 2018 compared to $9.1 million for the same period of 2017. Partially offsetting the increase in interest income was a $0.5 million increase in interest expense comparing the first quarters of 2018 and 2017. The increase in tax-equivalent interest income comparing the three months ended March 31, 2018 and 2017 primarily resulted from a $48.8 million, or 4.6%, increase in average earning assets, specifically a $68.4 million, or 9.4%, increase in average loans and a $16.1 million, or 5.6%, increase in average available-for-sale investment securities, partially offset by a decrease in average interest-bearing deposits in other banks of $35.7 million. The tax-equivalent yields earned on the loan and investment portfolios increased 28 basis points and 19 basis points, respectively, comparing the first quarters of 2018 and 2017. Interest expense increased $0.5 million, or 47.9%, to $1.6 million for the three months ended March 31, 2018 from $1.1 million for the same period of 2017. Impacted by higher market interest rates, FNCB’s cost of funds rose 21 basis points to 0.69% for the first quarter of 2018 from 0.48% for the same quarter of 2017. Average interest-bearing deposits declined $1.5 million to $806.5 million for the three months ended March 31, 2018 from $808.0 million for the same three months of 2017. Conversely, average borrowed funds increased $24.4 million, or 31.1%, to $102.7 million for the first quarter of 2018 from $78.3 million for the same quarter of 2017.

 

 

 

 

For the three months ended March 31, 2018, non-interest income totaled $1.5 million compared to $1.6 million for the same three months of 2017. Included in non-interest income for 2017 were net gains on the sale of available-for-sale securities of $278 thousand. There were no net gains on sales of available-for-sale securities during the first quarter of 2018. FNCB did record net gains on the sale of loans guaranteed by the Small Business Administration (SBA) for the first quarter of 2018 in the amount of $251 thousand.

 

Non-interest expense for the three months ended March 31, 2018 was $7.2 million, an increase of $0.3 million, or 4.4%, compared to $6.9 million for the same three months of 2017. The increase largely reflected increases in salaries and employee benefits expense due mostly to additional staff and other expenses.

 

Financial Position

 

Total assets increased $27.0 million, or 2.3%, to $1.189 billion at March 31, 2018 from $1.162 billion at December 31, 2017. The growth in the balance sheet largely reflected strong demand for the Bank’s lending products as loans, net of net deferred loan costs and unearned income grew $37.6 million, or 4.9%, to $808.2 million at March 31, 2018 from $770.6 million at December 31, 2017. In addition, available-for-sale investment securities increased $8.8 million, or 3.1%, to $298.3 million at March 31, 2018 from $289.5 million at the end of 2017. Total deposits decreased $47.2 million, or 4.7%, to $955.3 million at March 31, 2018 from $1.002 billion at December 31, 2017. The decrease in total deposits was due primarily to the cyclical deposit trends of public funds. Despite the decrease from year-end 2017, FNCB experienced solid growth year over year in both non-interest bearing and interest-bearing deposits, as total deposits grew $31.8 million, or 3.4%, from $923.4 million at March 31, 2017.

 

FNCB’s asset quality improved, as total non-performing assets decreased $0.6 million, or 11.3%, to $4.9 million at March 31, 2018 from $5.5 million at December 31, 2017. The improvement was primarily due to a $0.4 million reduction in other real estate owned to $0.6 million at March 31, 2018 from $1.0 million at year-end 2017. In addition, non-accrual loans decreased $0.2 million to $2.4 million at March 31, 2018 from $2.6 million at December 31, 2017. The ratio of non-performing loans to total loans improved to 0.30% at March 31, 2018, compared to 0.34% at December 31, 2017. Annualized net charge-offs were 0.10% of average loans outstanding for the quarter ended March 31, 2018, compared to a net recovery of 0.20% of average loans outstanding for the same quarter of 2017. The allowance for loan losses as a percentage of loans, net of unearned income and net deferred loan costs, was 1.18% and 1.17% at March 31, 2018 and December 31, 2017, respectively.

 

 

 

 

Total shareholders’ equity was $86.7 million at March 31, 2018 compared to $89.2 million at December 31, 2017. The $2.5 million reduction was due primarily to an increase in accumulated other comprehensive loss of $3.9 million resulting from market value depreciation of FNCB’s available-for-sale investment securities, net of deferred income taxes, coupled with dividends declared and paid of $0.7 million. Partially offsetting these reductions was net income of $2.0 million for the three months ended March 31, 2018.

 

FNCB’s total risk-based capital ratio and the Tier 1 leverage ratio were 11.70% and 7.80%, respectively at March 31, 2018, compared to 12.08% and 7.74%, respectively, at December 31, 2017. 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.

 

Availability of Filings

 

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

 

 

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as Northeastern Pennsylvania’s premier community bank – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB operates through 18 branch offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making our customers’ banking experience simply better. For more information about FNCB, visit www.fncb.com.

 

INVESTOR CONTACT:

James M. Bone, Jr., CPA

Executive Vice President and

Chief Financial Officer

FNCB Bank

(570) 348-6419

james.bone@fncb.com

 

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

 

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control). The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary 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, 2017.

 

 

[FNCB provides tabular information as follows]

 

 

 

 

FNCB Bancorp, Inc.

Selected Financial Data

 

   

Mar 31,

2018

   

Dec 31,

2017

   

Sept 30,

2017

   

Jun 30,

2017

   

Mar 31,

2017

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.12     $ (0.36 )   $ 0.14     $ 0.11     $ 0.13  

Cash dividends declared

  $ 0.04     $ 0.04     $ 0.03     $ 0.03     $ 0.03  

Book value

  $ 5.17     $ 5.32     $ 5.82     $ 5.76     $ 5.58  

Tangible book value

  $ 5.17     $ 5.32     $ 5.82     $ 5.76     $ 5.58  

Market value:

                                       

High

  $ 9.98     $ 7.99     $ 8.00     $ 8.13     $ 7.50  

Low

  $ 7.01     $ 6.54     $ 7.41     $ 6.35     $ 6.05  

Close

  $ 9.24     $ 7.30     $ 7.57     $ 7.80     $ 6.37  

Common shares outstanding

    16,766,600       16,757,963       16,757,963       16,757,963       16,692,314  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.70 %     (2.09% )     0.80 %     0.65 %     0.78 %

Annualized return on average shareholders' equity

    9.44 %     (24.98% )     9.27 %     7.60 %     9.77 %

Efficiency ratio

    68.23 %     73.42 %     65.09 %     72.81 %     74.08 %

Tier I leverage ratio

    7.80 %     7.74 %     8.10 %     7.99 %     7.55 %

Total risk-based capital to risk-adjusted assets

    11.70 %     12.08 %     12.17 %     12.53 %     12.38 %

Average shareholders' equity to average total assets

    7.38 %     8.35 %     8.61 %     8.49 %     7.97 %

Yield on earning assets (FTE)

    3.83 %     3.84 %     3.77 %     3.66 %     3.47 %

Cost of funds

    0.69 %     0.59 %     0.59 %     0.53 %     0.48 %

Net interest spread (FTE)

    3.15 %     3.25 %     3.18 %     3.13 %     2.99 %

Net interest margin (FTE)

    3.26 %     3.35 %     3.27 %     3.21 %     3.07 %

Total delinquent loans/total loans

    0.73 %     0.72 %     0.81 %     0.94 %     0.75 %

Allowance for loan and lease losses/total loans

    1.18 %     1.17 %     1.17 %     1.16 %     1.16 %

Non-performing loans/total loans

    0.30 %     0.34 %     0.35 %     0.50 %     0.27 %

Annualized net charge-offs (recoveries)/average loans

    0.10 %     0.06 %     0.08 %     0.14 %     (0.20% )

 

 

 

 

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

March 31,

 

(in thousands, except share data)

 

2018

   

2017

 

Interest income

               

Interest and fees on loans

  $ 8,288     $ 6,980  

Interest and dividends on securities

               

U.S. government agencies

    890       900  

State and political subdivisions, tax-free

    20       23  

State and political subdivisions, taxable

    1,024       822  

Other securities

    195       124  

Total interest and dividends on securities

    2,129       1,869  

Interest on interest-bearing deposits in other banks

    23       90  

Total interest income

    10,440       8,939  

Interest expense

               

Interest on deposits

    1,067       744  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    352       131  

Interest on subordinated debentures

    56       112  

Interest on junior subordinated debentures

    87       69  

Total interest on borrowed funds

    495       312  

Total interest expense

    1,562       1,056  

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

    8,878       7,883  

Provision (credit) for loan and lease losses

    720       (478 )

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

    8,158       8,361  

Non-interest income

               

Deposit service charges

    702       691  

Net gain on the sale of securities

    -       278  

Net loss on equity securities

    (19 )     -  

Net gain on the sale of mortgage loans held for sale

    49       25  

Net gain on the sale of SBA guaranteed loans

    251       -  

Net gain on the sale of other repossessed assets

    -       57  

Net gain on the sale of other real estate owned

    37       51  

Loan-related fees

    84       91  

Income from bank-owned life insurance

    134       135  

Other

    281       242  

Total non-interest income

    1,519       1,570  

Non-interest expense

               

Salaries and employee benefits

    3,666       3,524  

Occupancy expense

    603       587  

Equipment expense

    314       460  

Data processing expense

    648       487  

Regulatory assessments

    201       173  

Bank shares tax

    267       258  

Professional fees

    296       276  

Insurance expense

    135       125  

Other operating expenses

    1,102       1,038  

Total non-interest expense

    7,232       6,928  

Income before income taxes

    2,445       3,003  

Income tax expense

    426       806  

Net income

  $ 2,019     $ 2,197  
                 

Income per share

               

Basic

  $ 0.12     $ 0.13  

Diluted

  $ 0.12     $ 0.13  
                 

Cash dividends declared per common share

  $ 0.04     $ 0.03  

Weighted average number of shares outstanding:

               

Basic

    16,763,401       16,657,551  

Diluted

    16,789,336       16,670,788  

 

 

 

 

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income (Loss)

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands, except share data)

 

2018

   

2017

   

2017

   

2017

   

2017

 

Interest income

                                       

Interest and fees on loans

  $ 8,288     $ 8,073     $ 7,576     $ 7,192     $ 6,980  

Interest and dividends on securities

                                       

U.S. government agencies

    890       860       816       850       900  

State and political subdivisions, tax-free

    20       7       7       12       23  

State and political subdivisions, taxable

    1,024       993       1,016       978       822  

Other securities

    195       154       166       119       124  

Total interest and dividends on securities

    2,129       2,014       2,005       1,959       1,869  

Interest on interest-bearing deposits in other banks

    23       34       24       32       90  

Total interest income

    10,440       10,121       9,605       9,183       8,939  

Interest expense

                                       

Interest on deposits

    1,067       1,008       943       826       744  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    352       175       163       130       131  

Interest on subordinated debentures

    56       57       97       114       112  

Interest on junior subordinated debentures

    87       81       77       73       69  

Total interest on borrowed funds

    495       313       337       317       312  

Total interest expense

    1,562       1,321       1,280       1,143       1,056  

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

    8,878       8,800       8,325       8,040       7,883  

Provision (credit) for loan and lease losses

    720       283       543       421       (478 )

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

    8,158       8,517       7,782       7,619       8,361  

Non-interest income

                                       

Deposit service charges

    702       756       728       728       691  

Net gain on the sale of securities

    -       259       367       693       278  

Net loss on equity securities

    (19 )     -       -       -       -  

Net gain on the sale of mortgage loans held for sale

    49       63       106       110       25  

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

    -       -       -       (10 )     57  

Net gain on the sale of SBA guaranteed loans

    251       -       23       56       -  

Net gain on the sale of other real estate owned

    37       22       -       6       51  

Loan-related fees

    84       132       96       65       91  

Income from bank-owned life insurance

    134       128       129       135       135  

Other

    281       558       265       240       242  

Total non-interest income

    1,519       1,918       1,714       2,023       1,570  

Non-interest expense

                                       

Salaries and employee benefits

    3,666       4,092       3,247       3,298       3,524  

Occupancy expense

    603       538       394       586       587  

Equipment expense

    314       435       474       446       460  

Data processing expense

    648       521       506       509       487  

Regulatory assessments

    201       189       160       164       173  

Bank shares tax

    267       38       252       252       258  

Professional fees

    296       294       206       180       276  

Insurance expense

    135       134       132       128       125  

Other operating expenses

    1,102       1,563       1,026       1,377       1,106  

Total non-interest expense

    7,232       7,804       6,397       6,940       6,928  

Income before income taxes

    2,445       2,631       3,099       2,702       3,003  

Income tax expense

    426       8,745       827       910       806  

Net income (loss)

  $ 2,019     $ (6,114 )   $ 2,272     $ 1,792     $ 2,197  
                                         

Income (loss) per share

                                       

Basic

  $ 0.12     $ (0.36 )   $ 0.14     $ 0.11     $ 0.13  

Diluted

  $ 0.12     $ (0.36 )   $ 0.14     $ 0.11     $ 0.13  
                                         

Cash dividends declared per common share

  $ 0.04     $ 0.04     $ 0.03     $ 0.03     $ 0.03  

Weighted average number of shares outstanding:

                                       

Basic

    16,763,401       16,757,963       16,757,963       16,716,899       16,657,551  

Diluted

    16,789,336       16,774,209       16,777,671       16,736,995       16,670,788  

 

 

 

 

FNCB Bancorp, Inc.

Consolidated Balance Sheets

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2018

   

2017

   

2017

   

2017

   

2017

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 12,323     $ 22,755     $ 24,881     $ 24,169     $ 23,571  

Interest-bearing deposits in other banks

    1,873       14,991       18,929       1,991       3,154  

Total cash and cash equivalents

    14,196       37,746       43,810       26,160       26,725  

Securities available for sale, at fair value

    298,314       289,459       281,102       282,106       287,362  

Equity securities, at fair value

    899       918       925       924       923  

Restricted stock, at cost

    5,703       2,763       2,460       2,292       2,688  

Loans held for sale

    366       1,095       147       617       563  

Loans, net of net deferred costs and unearned income

    808,202       770,643       759,489       728,141       715,450  

Allowance for loan and lease losses

    (9,562 )     (9,034 )     (8,862 )     (8,469 )     (8,306 )

Net loans

    798,640       761,609       750,627       719,672       707,144  

Bank premises and equipment, net

    12,870       10,388       10,482       10,715       10,914  

Accrued interest receivable

    3,430       3,234       3,203       2,784       2,950  

Bank-owned life insurance

    30,594       30,460       30,332       30,203       30,068  

Other real estate owned

    579       1,023       1,088       1,183       1,352  

Other assets

    23,669       23,610       32,935       31,083       33,414  

Total assets

  $ 1,189,260     $ 1,162,305     $ 1,157,111     $ 1,107,739     $ 1,104,103  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 172,896     $ 176,325     $ 162,426     $ 147,878     $ 156,901  

Interest-bearing

    782,357       826,123       820,786       784,872       766,525  

Total deposits

    955,253       1,002,448       983,212       932,750       923,426  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    121,485       44,968       45,350       44,903       56,632  

Subordinated debentures

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

Junior subordinated debentures

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

Total borrowed funds

    136,795       60,278       60,660       65,213       76,942  

Accrued interest payable

    284       241       244       235       225  

Other liabilities

    10,190       10,147       15,513       12,797       10,107  

Total liabilities

    1,102,522       1,073,114       1,059,629       1,010,995       1,010,700  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    20,958       20,947       20,947       20,947       20,865  

Additional paid-in capital

    63,335       63,210       63,143       63,076       62,841  

Retained earnings

    8,057       6,779       13,282       11,517       10,228  

Accumulated other comprehensive (loss) income

    (5,612 )     (1,745 )     110       1,204       (531 )

Total shareholders' equity

    86,738       89,191       97,482       96,744       93,403  

Total liabilities and shareholders’ equity

  $ 1,189,260     $ 1,162,305     $ 1,157,111     $ 1,107,739     $ 1,104,103  

 

 

 

 

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(dollars in thousands)

 

2018

   

2017

   

2017

   

2017

   

2017

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 7,934     $ 7,736     $ 7,266     $ 6,874     $ 6,643  

Loans - tax-free

    448       511       470       482       511  

Total loans

    8,382       8,247       7,736       7,356       7,154  

Securities:

                                       

Securities, taxable

    2,109       2,007       1,998       1,947       1,846  

Securities, tax-free

    25       11       11       18       35  

Total interest and dividends on securities

    2,134       2,018       2,009       1,965       1,881  

Interest-bearing deposits in other banks

    23       34       24       32       90  

Total interest income

    10,539       10,299       9,769       9,353       9,125  

Interest expense

                                       

Deposits

    1,067       1,008       943       826       744  

Borrowed funds

    495       313       337       317       312  
      1,562       1,321       1,280       1,143       1,056  

Net interest income

  $ 8,977     $ 8,978     $ 8,489     $ 8,210     $ 8,069  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 748,375     $ 725,988     $ 700,729     $ 682,426     $ 680,518  

Loans - tax-free

    44,383       41,548       38,109       40,190       43,822  

Total loans

    792,758       767,536       738,838       722,616       724,340  

Securities:

                                       

Securities, taxable

    301,032       292,307       290,348       287,133       284,712  

Securities, tax-free

    2,325       600       600       1,105       2,571  

Total securities

    303,357       292,907       290,948       288,238       287,283  

Interest-bearing deposits in other banks

    3,825       12,215       7,499       12,676       39,520  

Total interest-earning assets

    1,099,940       1,072,658       1,037,285       1,023,530       1,051,143  

Non-earning assets

    76,114       89,801       92,603       90,672       92,368  

Total assets

  $ 1,176,054     $ 1,162,459     $ 1,129,888     $ 1,114,202     $ 1,143,511  

Interest-bearing liabilities:

                                       

Deposits

  $ 806,494     $ 824,680     $ 792,649     $ 783,672     $ 807,981  

Borrowed funds

    102,676       67,476       73,168       72,347       78,306  

Total interest-bearing liabilities

    909,170       892,156       865,817       856,019       886,287  

Demand deposits

    169,450       162,135       156,483       152,974       155,010  

Other liabilities

    10,663       11,079       10,325       10,633       11,045  

Shareholders' equity

    86,771       97,089       97,263       94,576       91,169  

Total liabilities and shareholders' equity

  $ 1,176,054     $ 1,162,459     $ 1,129,888     $ 1,114,202     $ 1,143,511  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    4.24 %     4.26 %     4.15 %     4.03 %     3.90 %

Interest and fees on loans - tax-free

    4.04 %     4.92 %     4.93 %     4.80 %     4.66 %

Total loans

    4.23 %     4.30 %     4.19 %     4.07 %     3.95 %

Securities:

                                       

Securities, taxable

    2.80 %     2.75 %     2.75 %     2.71 %     2.59 %

Securities, tax-free

    4.30 %     7.33 %     7.33 %     6.51 %     5.42 %

Total securities

    2.81 %     2.76 %     2.76 %     2.73 %     2.62 %

Interest-bearing deposits in other banks

    2.41 %     1.11 %     1.28 %     1.01 %     0.91 %

Total earning assets

    3.83 %     3.84 %     3.77 %     3.66 %     3.47 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.53 %     0.49 %     0.48 %     0.42 %     0.37 %

Interest on borrowed funds

    1.93 %     1.86 %     1.84 %     1.75 %     1.59 %

Total interest-bearing liabilities

    0.69 %     0.59 %     0.59 %     0.53 %     0.48 %

Net interest spread

    3.15 %     3.25 %     3.18 %     3.13 %     2.99 %

Net interest margin

    3.26 %     3.35 %     3.27 %     3.21 %     3.07 %

 

 

 

 

FNCB Bancorp, Inc.

Asset Quality Data

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2018

   

2017

   

2017

   

2017

   

2017

 

At period end

                                       

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

  $ 2,403     $ 2,578     $ 2,642     $ 3,681     $ 1,922  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    2,403       2,578       2,642       3,681       1,922  

Other real estate owned (OREO)

    579       1,023       1,088       1,183       1,352  

Other non-performing assets

    1,900       1,900       1,900       1,900       2,006  

Total non-performing assets

  $ 4,882     $ 5,501     $ 5,630     $ 6,764     $ 5,280  
                                         

Accruing TDRs

  $ 8,797     $ 9,299     $ 9,283     $ 9,306     $ 8,775  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 9,034     $ 8,862     $ 8,469     $ 8,306     $ 8,419  

Loans charged-off

    400       310       377       465       297  

Recoveries of charged-off loans

    208       199       227       207       662  

Net charge-offs (recoveries)

    192       111       150       258       (365 )

Provision (credit) for loan and lease losses

    720       283       543       421       (478 )

Ending balance

  $ 9,562     $ 9,034     $ 8,862     $ 8,469     $ 8,306