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FNCB Bancorp, Inc. Reports Increase in 2018 Earnings

Company Release - 1/25/2019 4:42 PM ET

DUNMORE, Pa., Jan. 25, 2019 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $13.3 million, or $0.79 per basic and diluted share, for 2018, compared to net income of $0.1 million, or $0.01 per basic and diluted share, for 2017. For the fourth quarter of 2018, FNCB recorded net income of $7.1 million, or $0.42 per basic and diluted share, compared to a net loss of $6.1 million, or $0.36 per basic and diluted share for the respective quarter of 2017. The increase in earnings for the fourth quarter and year-to-date periods were due largely to a decrease in income tax expense, coupled with increases in net interest income and non-interest income. Income tax expense decreased $7.0 million and $8.2 million comparing the three months and year ended December 31, 2018 and 2017, respectively. During the fourth quarter of 2017, FNCB had recognized additional, non-recurring income tax expense of $8.0 million resulting from the revaluation of FNCB’s net deferred tax assets following the enactment of the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. With regard to non-interest revenue, in the fourth quarter of 2018, FNCB, the Bank and Fidelity Deposit Company of Maryland resolved a dispute by entering into a mutual release of all claims, which resulted in FNCB recognizing an insurance recovery after related expenses of $6.0 million. Partially offsetting these positive factors for the year ended December 31, 2018 were increases in the provision for loan and lease losses and non-interest expense.

Return on average assets and return on average shareholders’ equity were 1.09% and 15.38%, respectively, in 2018, compared to 0.01% and 0.15%, respectively in 2017. For the three months ended December 31, 2018, return on average assets and return on average shareholders’ equity were 2.26% and 32.26%, respectively. Comparatively, return on average assets was (2.09%) and return on average shareholders’ equity was (24.98%) for the three months ended December 31, 2017.

2018 Performance Highlights:

  • Year-to-date total revenue (net interest income and non-interest income) increased $8.0 million, or 19.9% year over year;
  • Net interest income (FTE) increased 3.3% and 9.6%, comparing the quarter and year ended December 31 of 2018 and 2017, respectively;
  • Efficiency ratio for the fourth quarter improved to 47.59% in 2018 from 73.42% in 2017;
  • Yield on earning assets (FTE) for the fourth quarter of 2018 improved 22 basis points compared to the same quarter of 2017;
  • Year over year growth in total loans, net of net deferred costs and unearned income, of $68.5 million, or 8.9%;
  • Total deposits grew $93.2 million, or 9.3%, comparing December 31, 2018 and 2017; and
  • Total capital increased $8.0 million, or 9.0%, comparing December 31, 2018 and 2017.

“We are very pleased with our 2018 operating performance,” stated Gerard A. Champi, President and Chief Executive Officer. “The solid results reflected the ongoing efforts of the entire FNCB team focused on organic loan and core deposit growth, funding cost management and controlling non-interest expense. We experienced strong demand for loans and deposits and were able to grow interest revenue and maintain our net interest margin in 2018 amid what proved to be a very challenging interest rate environment and competitive marketplace,” continued Champi. “We realize we still have much work to do ahead but are encouraged as we enter into 2019. We believe our strong balance sheet leaves us well positioned to advance our performance into the new year and continue to create long-term value for our shareholders,” concluded Champi.

Cash Dividends Declared

Dividends declared and paid were $0.05 per share for the fourth quarter and $0.17 per share for the year-to-date period of 2018, which represented increases of 25.0% and 30.8% compared to $0.04 per share and $0.13 per share, respectively, for the fourth quarter and year-to-date periods ended December 31, 2017. Total dividends declared and paid for 2018 equated to a dividend yield of approximately 2.01% based on the closing stock price of $8.44 per share at December 31, 2018.

Summary Results for 2018

For the three months ended December 31, 2018, tax-equivalent net interest income increased $0.3 million, or 3.3% to $9.3 million from $9.0 million for the same three months of 2017. Despite the increase in net interest income, FNCB’s tax-equivalent net interest margin for the fourth quarter of 2018 contracted 18 basis points to 3.17% compared to 3.35% for the same quarter of 2017. The margin contraction primarily reflected a 45 basis-point increase in the cost of funds to 1.04% for the three months ended December 31, 2018 from 0.59% for the same three months of 2017. For the year ended December 31, 2018, tax-equivalent net interest income increased $3.2 million, or 9.6%, to $37.0 million compared to $33.7 million for the year ended December 31, 2017. The improvement in net interest income for the year-to-date period was largely due to growth in average earning assets and higher earning-asset yields, partially offset by higher funding costs. Average earning assets grew $100.7 million, or 9.6%, to $1.147 billion in 2018 from $1.046 billion in 2017. Tax-equivalent earning-asset yields improved 29 basis points to 3.97% in 2018 compared to 3.68% in 2017. For the year ended December 31, 2018, the cost of funds increased 35 basis points to 0.90% from 0.55% for the year ended December 31, 2017. The tax-equivalent net interest margin decreased 1 basis point to 3.22% in 2018 from 3.23% in 2017.  The net interest margin for the fourth quarter of 2018 decreased 4 basis points to 3.17% from 3.21% for the third quarter of 2018. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for 2018 and 34.0% for 2017.

For the quarter ended December 31, 2018, non-interest income amounted to $7.4 million, an increase of $5.5 million, or 287.0%, compared to $1.9 million for the same period of 2017. Non-interest income totaled $11.8 million for the year ended December 31, 2018, an increase of $4.6 million, or 63.2%, compared to $7.2 million for the year ended December 31, 2017. The increase in non-interest income for the fourth quarter and year-to-date periods was primarily due to the insurance recovery, net of related expenses, of $6.0 million received in the fourth quarter of 2018. Included in non-interest income for the three months and year ended December 31, 2017 were net gains on the sale of available-for sale securities of $0.3 million and $1.6 million, respectively. Comparatively, there were no net gains on the sale of available-for-sale securities for the three months ended December 31, 2018. For the year ended December 31, 2018, FNCB realized net losses on the sale of available-for-sale securities of $4 thousand.

For the three months ended December 31, 2018, non-interest expense increased by $0.1 million, or 1.8%, to $7.9 million from $7.8 million for the comparable three months of 2017. Non-interest expense for all of 2018 totaled $29.3 million, an increase of $1.2 million, or 4.5%, from $28.1 million for 2017. The increase in non-interest expense resulted largely from higher salaries and employee benefits expense related to staffing additions within FNCB Bank’s retail and commercial lending and credit administration units, coupled with increases in regulatory assessments, which, we believe, primarily reflected strong balance sheet growth.

Asset Quality

Total non-performing loans increased $2.1 million to $4.7 million, or 0.56% of total loans, at December 31, 2018, from $2.6 million, or 0.34% of total loans at December 31, 2017. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 0.93% at December 31, 2018 compared to 0.72% at the end of 2017. The increase in non-performing loans and loan delinquencies was primarily attributable to two commercial relationships that were placed on non-accrual status during 2018. The allowance for loan and lease losses as a percentage of gross loans was 1.13% and 1.17% at December 31, 2018 and 2017, respectively.

Financial Condition

Total assets increased $75.4 million, or 6.5%, to $1.238 billion at December 31, 2018 from $1.162 billion at December 31, 2017. The increase in total assets primarily reflected strong growth in interest-earning assets. Specifically, loans, net of net deferred costs and unearned income, increased $68.5 million, or 8.9%, to $839.1 million at December 31, 2018 from $770.6 million at December 31, 2017. Available-for-sale securities increased $6.5 million to $296.0 million at December 31, 2018 from $289.5 million at December 31, 2017. The asset growth was funded with an increase in total deposits of $93.2 million, or 9.3%, to $1.096 billion at December 31, 2018 from $1.002 billion at December 31, 2017. The increase in deposits was primarily attributable to increases in retail and wholesale time deposits. Borrowings through the Federal Home Loan Bank of Pittsburgh decreased $26.0 million to $18.9 million at December 31, 2018 from $44.9 million at December 31, 2017.

Total shareholders’ equity increased $8.0 million, or 9.0%, to $97.2 million at December 31, 2018 from $89.2 million at December 31, 2017. The capital increase resulted primarily from net income in 2018 of $13.3 million, partially offset by a $2.8 million increase in accumulated other comprehensive loss related to depreciation in the fair value of available-for-sale debt securities, net of deferred taxes, and year-to-date dividends declared of $2.9 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 12.69% and 8.50%, respectively, at December 31, 2018 from $12.08% and 7.74%, respectively, at December 31, 2017. 

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 a premier community bank in Northeastern Pennsylvania – 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 16 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, 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, including for deposit and loan growth: 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 ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; 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 
             
     
   Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
    2018   2018   2018   2018  2017 
Per share data:           
Net income (loss) (fully diluted) $  0.42  $  0.11  $  0.14  $  0.12  $  (0.36) 
Cash dividends declared $  0.05  $  0.04  $  0.04  $  0.04  $  0.04  
Book value $  5.78  $  5.15  $  5.18  $  5.17  $  5.32  
Tangible book value $  5.78  $  5.15  $  5.18  $  5.17  $  5.32  
Market value:           
 High  $  10.39  $  12.00  $  10.00  $  9.98  $  7.99  
 Low $  8.21  $  7.97  $  8.01  $  7.01  $  6.54  
 Close $  8.44  $  9.77  $  8.88  $  9.24  $  7.30  
Common shares outstanding    16,821,371     16,819,471     16,817,097     16,766,600     16,757,963  
             
Selected ratios:           
Annualized return on average assets  2.26%  0.59%  0.79%  0.70%  (2.09%) 
Annualized return on average shareholders' equity  32.26%  8.41%  11.23%  9.44%  (24.98%) 
Efficiency ratio  47.59%  67.11%  63.94%  68.78%  73.42% 
Tier I leverage ratio  8.50%  7.66%  7.69%  7.80%  7.74% 
Total risk-based capital to risk-adjusted assets  12.69%  11.42%  11.31%  11.70%  12.08% 
Average shareholders' equity to average total assets  7.00%  7.00%  7.05%  7.38%  8.35% 
Yield on earning assets (FTE)  4.06%  4.04%  3.96%  3.83%  3.84% 
Cost of funds  1.04%  1.00%  0.84%  0.69%  0.59% 
Net interest spread (FTE)  3.02%  3.04%  3.12%  3.15%  3.25% 
Net interest margin (FTE)  3.17%  3.21%  3.26%  3.26%  3.35% 
Total delinquent loans/total loans  0.93%  0.90%  0.71%  0.73%  0.72% 
Allowance for loan and lease losses/total loans  1.13%  1.14%  1.11%  1.18%  1.17% 
Non-performing loans/total loans  0.56%  0.51%  0.41%  0.30%  0.34% 
Annualized net charge-offs/average loans  0.05%  0.36%  0.47%  0.10%  0.06% 
             

 

FNCB Bancorp, Inc. 
Year-to-Date Consolidated Statements of Income 
 Year Ended 
 December 31, 
(in thousands, except share data)  2018   2017 
Interest income     
Interest and fees on loans $  36,381  $  29,821 
Interest and dividends on securities     
 U.S. government agencies    3,565     3,426 
 State and political subdivisions, tax-free    133     49 
 State and political subdivisions, taxable    4,105     3,809 
 Other securities    813     563 
  Total interest and dividends on securities    8,616     7,847 
Interest on interest-bearing deposits in other banks    88     180 
   Total interest income    45,085     37,848 
Interest expense     
Interest on deposits    5,925     3,521 
Interest on borrowed funds     
 Interest on Federal Home Loan Bank of Pittsburgh advances    2,025     599 
 Interest on subordinated debentures    228     380 
 Interest on junior subordinated debentures     400     300 
  Total interest on borrowed funds    2,653     1,279 
   Total interest expense    8,578     4,800 
Net interest income before provision for loan and lease losses    36,507     33,048 
Provision for loan and lease losses    2,550     769 
Net interest income after provision for loan and lease losses    33,957     32,279 
Non-interest income     
Deposit service charges    2,885     2,903 
Net (loss) gain on the sale of securities    (4)    1,597 
Net loss on equity securities    (27)    - 
Net gain on the sale of mortgage loans held for sale    210     304 
Net gain on the sale of SBA guaranteed loans    322     79 
Net gain on the sale of other repossessed assets    -     47 
Net gain on the sale of other real estate owned    31     79 
Loan-related fees    390     384 
Income from bank-owned life insurance    555     527 
Insurance recovery    6,027     - 
Other      1,401     1,305 
   Total non-interest income    11,790     7,225 
Non-interest expense     
Salaries and employee benefits    14,780     14,161 
Occupancy expense    2,191     2,105 
Equipment expense    1,254     1,815 
Data processing expense    2,799     2,023 
Regulatory assessments    861     686 
Bank shares tax    636     800 
Professional fees    1,028     956 
Insurance expense    515     519 
Other operating expenses    5,263     5,004 
   Total non-interest expense    29,327     28,069 
Income before income taxes    16,420     11,435 
Income tax expense    3,071     11,288 
Net income  $  13,349  $  147 
         
Income per share     
 Basic  $  0.79  $  0.01 
 Diluted  $  0.79  $  0.01 
         
Cash dividends declared per common  share  $  0.17  $  0.13 
Weighted average number of shares outstanding:     
 Basic   16,799,004   16,722,966 
 Diluted   16,820,753   16,740,288 
 

 

FNCB Bancorp, Inc. 
Quarter-to-Date Consolidated Statements of Income (Loss) 
               
 Three Months Ended 
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
(in thousands, except share data)  2018   2018   2018   2018   2017  
Interest income           
Interest and fees on loans $  9,561  $  9,501  $  9,031  $  8,288  $  8,073  
Interest and dividends on securities           
 U.S. government agencies    890     899     886     890     860  
 State and political subdivisions, tax-free    38     37     38     20     7  
 State and political subdivisions, taxable    1,026     1,028     1,027     1,024     993  
 Other securities    167     211     240     195     154  
  Total interest and dividends on securities    2,121     2,175     2,191     2,129     2,014  
Interest on interest-bearing deposits in other banks    36     17     12     23     34  
   Total interest income    11,718     11,693     11,234     10,440     10,121  
Interest expense           
Interest on deposits    2,165     1,559     1,134     1,067     1,008  
Interest on borrowed funds           
 Interest on Federal Home Loan Bank of Pittsburgh advances    251     715     707     352     175  
 Interest on subordinated debentures    57     58     57     56     57  
 Interest on junior subordinated debentures     108     106     99     87     81  
  Total interest on borrowed funds    416     879     863     495     313  
   Total interest expense    2,581     2,438     1,997     1,562     1,321  
Net interest income before (credit) provision for loan and lease losses    9,137     9,255     9,237     8,878     8,800  
(Credit) provision for loan and lease losses    (199)    1,149     880     720     283  
Net interest income after (credit) provision for loan and lease losses    9,336     8,106     8,357     8,158     8,517  
Non-interest income           
Deposit service charges    725     711     747     702     756  
Net (loss) gain on the sale of securities    -     -     (4)    -     259  
Net gain (loss) on equity securities    7     (8)    (7)    (19)    -  
Net gain on the sale of mortgage loans held for sale    39     71     51     49     63  
Net gain on the sale of SBA guaranteed loans    -     -     71     251     -  
Net (loss) gain on the sale of other real estate owned    -     -     (7)    38     22  
Loan-related fees    145     85     76     84     132  
Income from bank-owned life insurance    142     141     138     134     128  
Insurance recovery    6,027     -     -     -     -  
Other      337     320     464     280     558  
   Total non-interest income    7,422     1,320     1,529     1,519     1,918  
Non-interest expense           
Salaries and employee benefits    4,048     3,581     3,485     3,666     4,092  
Occupancy expense    562     500     526     603     538  
Equipment expense    318     299     323     314     435  
Data processing expense    759     745     647     648     521  
Regulatory assessments    213     251     196     201     189  
Bank shares tax    (131)    278     222     267     38  
Professional fees    295     241     196     296     294  
Insurance expense    117     130     133     135     134  
Other operating expenses    1,760     1,163     1,238     1,102     1,563  
   Total non-interest expense    7,941     7,188     6,966     7,232     7,804  
Income before income taxes    8,817     2,238     2,920     2,445     2,631  
Income tax expense     1,749     388     508     426     8,745  
Net income (loss) $  7,068  $  1,850  $  2,412  $  2,019  $  (6,114) 
               
Income (loss) per share           
 Basic  $  0.42  $  0.11  $  0.14  $  0.12  $  (0.36) 
 Diluted  $  0.42  $  0.11  $  0.14  $  0.12  $  (0.36) 
               
Cash dividends declared per common  share  $  0.05  $  0.04  $  0.04  $  0.04  $  0.04  
Weighted average number of shares outstanding:           
 Basic   16,820,337   16,818,625   16,792,812   16,763,401   16,757,963  
 Diluted   16,840,933   16,838,547   16,819,286   16,789,336   16,774,209  
 

 

FNCB Bancorp, Inc.
Consolidated Balance Sheets
              
  
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2018   2018   2018   2018   2017 
Assets            
Cash and cash equivalents:          
 Cash and due from banks $  26,673  $  23,051  $  16,500  $  12,323  $  22,755 
 Interest-bearing deposits in other banks    9,808     7,246     4,624     1,873     14,991 
  Total cash and cash equivalents    36,481     30,297     21,124     14,196     37,746 
Securities available for sale, at fair value    296,032     288,780     290,863     298,314     289,459 
Equity securities, at fair value    891     884     892     899     918 
Restricted stock, at cost    3,123     3,333     7,964     5,703     2,763 
Loans held for sale    820     938     629     366     1,095 
Loans, net of net deferred costs and unearned income    839,100     864,316     855,391     808,202     770,643 
Allowance for loan and lease losses    (9,519)    (9,827)    (9,459)    (9,562)    (9,034)
Net loans     829,581     854,489     845,932     798,640     761,609 
Bank premises and equipment, net    14,425     13,895     13,900     12,870     10,388 
Accrued interest receivable    3,614     4,061     3,654     3,430     3,234 
Bank-owned life insurance    31,015     30,873     30,732     30,594     30,460 
Other real estate owned    919     715     787     579     1,023 
Other assets     20,831     22,857     22,810     23,669     23,610 
   Total assets $  1,237,732  $  1,251,122  $  1,239,287  $  1,189,260  $  1,162,305 
              
Liabilities           
Deposits:           
 Demand (non-interest-bearing) $  156,600  $  166,967  $  177,388  $  172,896  $  176,325 
 Interest-bearing     939,029     928,154     777,855     782,357     826,123 
  Total deposits    1,095,629     1,095,121     955,243     955,253     1,002,448 
Borrowed funds:          
 Federal Home Loan Bank of Pittsburgh advances    18,930     46,490     174,251     121,485     44,968 
 Subordinated debentures    5,000     5,000     5,000     5,000     5,000 
 Junior subordinated debentures    10,310     10,310     10,310     10,310     10,310 
  Total borrowed funds    34,240     61,800     189,561     136,795     60,278 
Accrued interest payable    338     318     331     284     241 
Other liabilities    10,306     7,306     7,027     10,190     10,147 
  Total liabilities    1,140,513     1,164,545     1,152,162     1,102,522     1,073,114 
              
Shareholders' equity          
Preferred stock    -     -     -     -     - 
Common stock    21,026     21,024     21,021     20,958     20,947 
Additional paid-in capital    63,547     63,469     63,374     63,335     63,210 
Retained earnings    17,186     10,965     9,792     8,057     6,779 
Accumulated other comprehensive loss    (4,540)    (8,881)    (7,062)    (5,612)    (1,745)
  Total shareholders' equity    97,219     86,577     87,125     86,738     89,191 
   Total liabilities and shareholders’ equity $  1,237,732  $  1,251,122  $  1,239,287  $  1,189,260  $  1,162,305 
     

 

FNCB Bancorp, Inc. 
Summary Tax-equivalent Net Interest Income 
               
     Three Months Ended 
     Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
(dollars in thousands)  2018   2018   2018   2018  2017 
Interest income           
Loans:             
Loans - taxable $  9,090  $  9,059  $  8,631  $  7,934  $  7,736  
Loans - tax-free    596     559     506     448     511  
 Total loans    9,686     9,618     9,137     8,382     8,247  
Securities:            
Securities, taxable    2,083     2,138     2,153     2,109     2,007  
Securities, tax-free    48     47     48     25     11  
 Total interest and dividends on securities    2,131     2,185     2,201     2,134     2,018  
Interest-bearing deposits in other banks    36     17     12     23     34  
   Total interest income    11,853     11,820     11,350     10,539     10,299  
Interest expense           
Deposits     2,165     1,559     1,134     1,067     1,008  
Borrowed funds    416     879     863     495     313  
        2,581     2,438     1,997     1,562     1,321  
   Net interest income $  9,272  $  9,382  $  9,353  $  8,977  $  8,978  
 
Average balances           
Earning assets:           
Loans:             
Loans - taxable $  796,886  $  803,314  $  784,427  $  748,375  $  725,988  
Loans - tax-free    58,722     55,848     49,855     44,383     41,548  
 Total loans    855,608     859,162     834,282     792,758     767,536  
Securities:            
Securities, taxable    299,981     303,037     305,627     301,032     292,307  
Securities, tax-free    4,651     4,664     4,677     2,325     600  
 Total securities    304,632     307,701     310,304     303,357     292,907  
Interest-bearing deposits in other banks    8,438     3,735     2,629     3,825     12,215  
   Total interest-earning assets    1,168,678     1,170,598     1,147,215     1,099,940     1,072,658  
Non-earning assets    72,999     75,518     74,188     76,114     89,801  
   Total assets $  1,241,677  $  1,246,116  $  1,221,403  $  1,176,054  $  1,162,459  
Interest-bearing liabilities:           
Deposits  $  926,767  $  827,570  $  790,233  $  806,494  $  824,680  
Borrowed funds    62,495     149,682     163,547     102,676     67,476  
   Total interest-bearing liabilities    989,262     977,252     953,780     909,170     892,156  
Demand deposits    157,223     173,616     173,037     169,450     162,135  
Other liabilities    8,272     7,983     8,444     10,663     11,079  
Shareholders' equity    86,920     87,265     86,142     86,771     97,089  
 Total liabilities and shareholders' equity $  1,241,677  $  1,246,116  $  1,221,403  $  1,176,054  $  1,162,459  
             
Yield/Cost  
Earning assets: 
Loans:   
Interest and fees on loans - taxable  4.56%  4.51%  4.40%  4.24%  4.26% 
Interest and fees on loans - tax-free  4.06%  4.01%  4.06%  4.04%  4.92% 
 Total loans  4.53%  4.48%  4.38%  4.23%  4.30% 
Securities:            
Securities, taxable  2.78%  2.82%  2.82%  2.80%  2.75% 
Securities, tax-free  4.13%  4.03%  4.11%  4.30%  7.33% 
 Total securities  2.80%  2.84%  2.84%  2.81%  2.76% 
Interest-bearing deposits in other banks  1.71%  1.82%  1.83%  2.41%  1.11% 
   Total earning assets  4.06%  4.04%  3.96%  3.83%  3.84% 
Interest-bearing liabilities:           
Interest on deposits  0.93%  0.75%  0.57%  0.53%  0.49% 
Interest on borrowed funds  2.66%  2.35%  2.11%  1.93%  1.86% 
   Total interest-bearing liabilities  1.04%  1.00%  0.84%  0.69%  0.59% 
   Net interest spread  3.02%  3.04%  3.12%  3.15%  3.25% 
 Net interest margin  3.17%  3.21%  3.26%  3.26%  3.35% 

 

FNCB Bancorp, Inc.
Asset Quality Data
             
          
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2018  2018 2018 2018 2017
At period end          
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $  4,696  $  4,391 $  3,469 $  2,403 $  2,578
Loans past due 90 days or more and still accruing    -     -    -    -    -
 Total non-performing loans    4,696     4,391    3,469    2,403    2,578
Other real estate owned (OREO)    919     715    787    579    1,023
Other non-performing assets    1,900     1,900    1,900    1,900    1,900
 Total non-performing assets $  7,515  $  7,006 $  6,156 $  4,882 $  5,501
             
Accruing TDRs  $  8,457  $  8,515 $  8,741 $  8,797 $  9,299
             
             
For the three months ended          
Allowance for loan and lease losses          
Beginning balance $  9,827  $  9,459 $  9,562 $  9,034 $  8,862
Loans charged-off    392     1,037    1,310    400    310
Recoveries of charged-off loans    283     256    327    208    199
Net charge-offs     109     781    983    192    111
(Credit) provision for loan and lease losses    (199)    1,149    880    720    283
Ending balance $  9,519  $  9,827 $  9,459 $  9,562 $  9,034
             

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Source: FNCB Bancorp, Inc.