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FNCB Bancorp, Inc. Announces 13% Increase in Third Quarter 2017 Earnings and 31% Increase in 2017 Year-to-Date Earnings

Company Release - 11/7/2017 8:29 PM ET

DUNMORE, Pa., Nov. 07, 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 
             

Source: FNCB Bancorp, Inc.