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FNCB Bancorp, Inc. Reports Increase in First Quarter 2019 Earnings

Company Release - 4/22/2019 4:05 PM ET

DUNMORE, Pa., April 22, 2019 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.6 million, or $0.14 per basic and diluted share, for the three months ended March 31, 2019, an increase of $0.6 million, or 30.5%, compared to net income of $2.0 million, or $0.12 per basic and diluted share, for the same three months of 2018. The increase in first quarter earnings reflected a credit for loan and lease losses in 2019 compared to a provision in 2018 and an increase in net interest income, partially offset by moderately higher non-interest expense. Return on average assets and return on average shareholders’ equity were 0.86% and 9.70%, respectively, for the first three months of 2019, compared to 0.70% and 9.44%, respectively for the same three months of 2018. 

First Quarter 2019 Highlights:

  • 30.5% increase in net income comparing the first quarters of 2019 and 2018;
  • Successfully completed a $23.0 million common stock offering;
  • Total risk-based capital and Tier I Leverage ratios improved to 15.06% and 10.45% at March 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;
  • Accelerated final payment on subordinated debt; and
  • Increased first quarter dividend by 25.0% comparing 2019 and 2018.

“Our first quarter operating results provides us with a solid start to 2019,” stated Gerard A. Champi, President and Chief Executive Officer. "The current rate environment and the highly competitive marketplace in which we operate has started to place pressure on our net interest margin, as increases in funding costs have outpaced earning asset yields. One of our foremost strategic objectives is growing core deposit relationships, which will benefit our liquidity position and assist us in managing funding costs," continued Champi. "We remain focused on creating efficiency within the balance sheet through effective asset/liability management initiatives in order to build on our first quarter results," Champi concluded. 

Summary Results 

For the three months ended March 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.1% to $9.1 million from $9.0 million for the same three months of 2018. Specifically, comparing the first quarters of 2019 and 2018, a $1.2 million, or 11.4%, increase in tax-equivalent interest income was almost entirely offset by a $1.1 million, or 70.5%, increase in interest expense.  FNCB’s tax-equivalent net interest margin for the first quarter of 2019 contracted 12 basis points to 3.14% compared to 3.26% for the same quarter of 2018. The margin contraction primarily reflected a 42 basis-point increase in the cost of funds to 1.11% for the three months ended March 31, 2019 from 0.69% for the same three months of 2018. The increase in funding costs almost entirely offset the effects of strong earning asset growth and a 23 basis-point increase in the tax-equivalent yield on earning assets. Average earning assets grew $57.3 million, or 5.2%, to $1.157 billion for the three months ended March 31, 2019 from $1.100 billion for the same period of 2018, while tax-equivalent earning-asset yields improved 23 basis points to 4.06% for the three months ended March 31, 2019 compared to 3.83% for the three months ended March 31, 2018. Average interest-bearing liabilities increased $52.8 million, or 5.8%, to $961.9 million for the first quarter of 2019 from $909.2 million for the same quarter of 2018. The growth in interest-bearing liabilities resulted in only a negligible increase in interest expense, as the impact of a $97.0 million, or 12.0%, increase in average interest-bearing deposits was almost entirely mitigated by a $44.3 million , or 43.1%, reduction in average borrowed funds. 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 the three months ended March 31, 2019 and 2018.

Non-interest income was $1.5 million for the three months ended March 31, 2019 and 2018. FNCB realized net gains on the sale of available-for-sale debt securities of $160 thousand for the first quarter of 2019. There were no gains on the sale of available-for-sale debt securities realized during the same period of 2018. Additionally, other income increased $112 thousand to $392 thousand for the three months ended March 31, 2019 from $280 thousand for the same three months of 2018. Partially offsetting these positive factors were decreases in net gains on the sales of SBA guaranteed loans and other real estate owned. During the first quarter of 2018, FNCB realized net gains on the sales of SBA guaranteed loans and other real estate owned of $251 thousand and $38 thousand, respectively.  The were no such gains realized in the first quarter of 2019.

For the three months ended March 31, 2019, non-interest expense increased by $193 thousand, or 2.7%, to $7.4 million from $7.2 million for the comparable three months of 2018. The increase primarily reflected increases in salaries and employee benefits and data processing costs, partially offset by reductions in occupancy expense and other operating expenses. 

Asset Quality

FNCB's asset quality weakened slightly as total non-performing loans increased $1.5 million to $6.2 million, or 0.74% of total loans, at March 31, 2019 from $4.7 million, or 0.56%, of total loans at December 31, 2018. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 1.28% at March 31, 2019 compared to 0.93% at December 31, 2018. The increase in non-performing loans and loan delinquencies was primarily attributable to two commercial relationships that were placed on non-accrual status during the first quarter of 2019. The allowance for loan and lease losses was $9.3 million, or 1.10% of total loans outstanding, at March 31, 2019, compared to $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management is actively managing problem credits through heightened workout efforts focused on developing strategies to resolve borrower difficulties through liquidation of collateral and other appropriate means. Net charge-offs were $112 thousand, or an annual rate of 0.05% of average loans, for the three months ended March 31, 2019 compared to $192 thousand, or an annual rate of 0.10% of average loans, for the same three months of 2018. FNCB recorded a credit for loan and leases losses of $154 thousand for the first quarter of 2019 compared to a provision for loan and lease losses of $720 thousand for the same quarter of 2018. The $874 thousand variance primarily reflected a decrease in historical net charge-off rates.

Financial Condition

Total assets were $1.214 billion at March 31, 2019, a decrease of $23.3 million, or 1.9%, from $1.238 billion at December 31, 2018. The moderate contraction in total assets primarily reflected a $21.9 million, or 7.4%, decrease in available-for-sale securities to $274.1 million at March 31, 2019 from $296.0 million at December 31, 2018. The proceeds from the sale of securities was used to supplement cyclical deposit trends and minimize wholesale funding utilization. Total deposits decreased $55.5 million, or 5.1%, to $1.040 billion at March 31, 2019 from $1.096 billion at December 31, 2018, which largely reflected the cyclical deposit trends of municipal customers. Loans, net of net deferred costs and unearned income, were $838.9 million at March 31, 2019, a slight decrease of $0.2 million compared to $839.1 million at December 31, 2018. Total borrowed funds increased $5.1 million to $39.3 million at March 31, 2019 from $34.2 million at December 31, 2018, reflecting a $10.0 million increase in FHLB of Pittsburgh advances partially offset by a $5.0 million principal repayment on the subordinated debt. 

Total shareholders’ equity increased $26.6 million, or 27.3%, to $123.8 million at March 31, 2019 from $97.2 million at December 31, 2018. FNCB successfully completed a public offering of its common stock, which resulted in a net increase to capital after offering expenses of $21.3 million. Also factoring into the capital improvement was net income for the three months ended March 31, 2019 of $2.6 million and a $3.6 million decrease in accumulated other comprehensive loss related to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $1.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.06% and 10.45%, respectively, at March 31, 2019 from 12.69% and 8.50%, respectively, at December 31, 2018. Dividends declared and paid for the first quarter were $0.05 per share in 2019, an increase of 25.0% from $0.04 per share in 2018. The dividend payout ratio, dividends declared divided by net income, was 38.2% and 33.2% for the three months ended March 31, 2019 and 2018, respectively. 

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 currently operates through 16 community offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making its 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, 2018.

FNCB Bancorp, Inc.
Selected Financial Data

  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
  2019  2018  2018  2018  2018 
Per share data:                    
Net income (fully diluted) $0.14  $0.42  $0.11  $0.14  $0.12 
Cash dividends declared $0.05  $0.05  $0.04  $0.04  $0.04 
Book value $6.16  $5.78  $5.15  $5.18  $5.17 
Tangible book value $6.16  $5.78  $5.15  $5.18  $5.17 
Market value:                    
High $10.68  $10.39  $12.00  $10.00  $9.98 
Low $7.14  $8.21  $7.97  $8.01  $7.01 
Close $7.70  $8.44  $9.77  $8.88  $9.24 
Common shares outstanding  20,108,560   16,821,371   16,819,471   16,817,097   16,766,600 
                     
Selected ratios:                    
Annualized return on average assets  0.86%  2.26%  0.59%  0.79%  0.70%
Annualized return on average shareholders' equity  9.70%  32.26%  8.41%  11.23%  9.44%
Efficiency ratio  71.24%  47.59%  67.11%  63.94%  68.78%
Tier I leverage ratio  10.45%  8.50%  7.66%  7.69%  7.80%
Total risk-based capital to risk-adjusted assets  15.06%  12.69%  11.42%  11.31%  11.70%
Average shareholders' equity to average total assets  8.89%  7.00%  7.00%  7.05%  7.38%
Yield on earning assets (FTE)  4.06%  4.06%  4.04%  3.96%  3.83%
Cost of funds  1.11%  1.04%  1.00%  0.84%  0.69%
Net interest spread (FTE)  2.95%  3.02%  3.04%  3.12%  3.15%
Net interest margin (FTE)  3.14%  3.17%  3.21%  3.26%  3.26%
Total delinquent loans/total loans  1.28%  0.93%  0.90%  0.71%  0.73%
Allowance for loan and lease losses/total loans  1.10%  1.13%  1.14%  1.11%  1.18%
Non-performing loans/total loans  0.74%  0.56%  0.51%  0.41%  0.30%
Annualized net charge-offs/average loans  0.05%  0.05%  0.36%  0.47%  0.10%
                     

FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income

  Three Months Ended 
  March 31, 
(in thousands, except share data) 2019  2018 
Interest income        
Interest and fees on loans $9,407  $8,288 
Interest and dividends on securities        
U.S. government agencies  893   890 
State and political subdivisions, tax-free  37   20 
State and political subdivisions, taxable  1,021   1,024 
Other securities  205   195 
Total interest and dividends on securities  2,156   2,129 
Interest on interest-bearing deposits in other banks  46   23 
Total interest income  11,609   10,440 
Interest expense        
Interest on deposits  2,238   1,067 
Interest on borrowed funds        
Interest on Federal Home Loan Bank of Pittsburgh advances  287   352 
Interest on subordinated debentures  24   56 
Interest on junior subordinated debentures  114   87 
Total interest on borrowed funds  425   495 
Total interest expense  2,663   1,562 
Net interest income before (credit) provision for loan and lease losses   8,946   8,878 
(Credit) provision for loan and lease losses  (154)  720 
Net interest income after (credit) provision for loan and lease losses   9,100   8,158 
Non-interest income        
Deposit service charges  685   702 
Net gain on the sale of securities  160   - 
Net gain (loss) on equity securities  12   (19)
Net gain on the sale of mortgage loans held for sale  56   49 
Net gain on the sale of SBA guaranteed loans  -   251 
Net gain on the sale of other real estate owned  -   38 
Loan-related fees  79   84 
Income from bank-owned life insurance  131   134 
Other  392   280 
Total non-interest income  1,515   1,519 
Non-interest expense        
Salaries and employee benefits  3,899   3,666 
Occupancy expense  550   603 
Equipment expense  307   314 
Data processing expense  781   648 
Regulatory assessments  168   201 
Bank shares tax  278   267 
Professional fees  332   296 
Insurance expense  126   135 
Other operating expenses  984   1,102 
Total non-interest expense  7,425   7,232 
Income before income taxes  3,190   2,445 
Income tax expense  555   426 
Net income $2,635  $2,019 
         
Income per share        
Basic $0.14  $0.12 
Diluted $0.14  $0.12 
         
Cash dividends declared per common share  $0.05  $0.04 
Weighted average number of shares outstanding:        
Basic  18,720,502   16,763,401 
Diluted  18,733,652   16,789,336 
         

FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income

  Three Months Ended 
  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands, except share data) 2019  2018  2018  2018  2018 
Interest income                    
Interest and fees on loans $9,407  $9,561  $9,501  $9,031  $8,288 
Interest and dividends on securities                    
U.S. government agencies  893   890   899   886   890 
State and political subdivisions, tax-free  37   38   37   38   20 
State and political subdivisions, taxable  1,021   1,026   1,028   1,027   1,024 
Other securities  205   167   211   240   195 
Total interest and dividends on securities  2,156   2,121   2,175   2,191   2,129 
Interest on interest-bearing deposits in other banks  46   36   17   12   23 
Total interest income  11,609   11,718   11,693   11,234   10,440 
Interest expense                    
Interest on deposits  2,238   2,165   1,559   1,134   1,067 
Interest on borrowed funds                    
Interest on Federal Home Loan Bank of Pittsburgh advances  287   251   715   707   352 
Interest on subordinated debentures  24   57   58   57   56 
Interest on junior subordinated debentures  114   108   106   99   87 
Total interest on borrowed funds  425   416   879   863   495 
Total interest expense  2,663   2,581   2,438   1,997   1,562 
Net interest income before (credit) provision for loan and lease losses  8,946   9,137   9,255   9,237   8,878 
(Credit) provision for loan and lease losses  (154)  (199)  1,149   880   720 
Net interest income after (credit) provision for loan and lease losses  9,100   9,336   8,106   8,357   8,158 
Non-interest income                    
Deposit service charges  685   725   711   747   702 
Net gain (loss) on the sale of securities  160   -   -   (4)  - 
Net gain (loss) on equity securities  12   7   (8)  (7)  (19)
Net gain on the sale of mortgage loans held for sale  56   39   71   51   49 
Net gain on the sale of SBA guaranteed loans  -   -   -   71   251 
Net (loss) gain on the sale of other real estate owned  -   -   -   (7)  38 
Loan-related fees  79   145   85   76   84 
Income from bank-owned life insurance  131   142   141   138   134 
Insurance recovery  -   6,027   -   -   - 
Other  392   337   320   464   280 
Total non-interest income  1,515   7,422   1,320   1,529   1,519 
Non-interest expense                    
Salaries and employee benefits  3,899   4,048   3,581   3,485   3,666 
Occupancy expense  550   562   500   526   603 
Equipment expense  307   318   299   323   314 
Data processing expense  781   759   745   647   648 
Regulatory assessments  168   213   251   196   201 
Bank shares tax  278   (131)  278   222   267 
Professional fees  332   295   241   196   296 
Insurance expense  126   117   130   133   135 
Other operating expenses  984   1,760   1,163   1,238   1,102 
Total non-interest expense  7,425   7,941   7,188   6,966   7,232 
Income before income taxes  3,190   8,817   2,238   2,920   2,445 
Income tax expense  555   1,749   388   508   426 
Net income  $2,635  $7,068  $1,850  $2,412  $2,019 
                     
Income per share                    
Basic $0.14  $0.42  $0.11  $0.14  $0.12 
Diluted $0.14  $0.42  $0.11  $0.14  $0.12 
                     
Cash dividends declared per common share  $0.05  $0.05  $0.04  $0.04  $0.04 
Weighted average number of shares outstanding:                    
Basic  18,720,502   16,820,337   16,818,625   16,792,812   16,763,401 
Diluted  18,733,652   16,840,933   16,838,547   16,819,286   16,789,336 
                     

FNCB Bancorp, Inc.
Consolidated Balance Sheets

  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands) 2019  2018  2018  2018  2018 
Assets                    
Cash and cash equivalents:                    
Cash and due from banks $25,683  $26,673  $23,051  $16,500  $12,323 
Interest-bearing deposits in other banks  7,062   9,808   7,246   4,624   1,873 
Total cash and cash equivalents  32,745   36,481   30,297   21,124   14,196 
Available-for-sale debt securities, at fair value  274,114   296,032   288,780   290,863   298,314 
Equity securities, at fair value  904   891   884   892   899 
Restricted stock, at cost  3,120   3,123   3,333   7,964   5,703 
Loans held for sale  609   820   938   629   366 
Loans, net of net deferred costs and unearned income  838,864   839,100   864,316   855,391   808,202 
Allowance for loan and lease losses  (9,253)  (9,519)  (9,827)  (9,459)  (9,562)
Net loans  829,611   829,581   854,489   845,932   798,640 
Bank premises and equipment, net  14,991   14,425   13,895   13,900   12,870 
Accrued interest receivable  3,706   3,614   4,061   3,654   3,430 
Bank-owned life insurance  31,146   31,015   30,873   30,732   30,594 
Other real estate owned  919   919   715   787   579 
Other assets  22,526   20,831   22,857   22,810   23,669 
Total assets $1,214,451  $1,237,732  $1,251,122  $1,239,287  $1,189,260 
                     
Liabilities                    
Deposits:                    
Demand (non-interest-bearing) $157,073  $156,600  $166,967  $177,388  $172,896 
Interest-bearing  883,017   939,029   928,154   777,855   782,357 
Total deposits  1,040,090   1,095,629   1,095,121   955,243   955,253 
Borrowed funds:                    
Federal Home Loan Bank of Pittsburgh advances  28,988   18,930   46,490   174,251   121,485 
Subordinated debentures  -   5,000   5,000   5,000   5,000 
Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
Total borrowed funds  39,298   34,240   61,800   189,561   136,795 
Accrued interest payable  339   338   318   331   284 
Other liabilities  10,942   10,306   7,306   7,027   10,190 
Total liabilities  1,090,669   1,140,513   1,164,545   1,152,162   1,102,522 
                     
Shareholders' equity                    
Preferred stock  -   -   -   -   - 
Common stock  25,135   21,026   21,024   21,021   20,958 
Additional paid-in capital  80,827   63,547   63,469   63,374   63,335 
Retained earnings  18,809   17,186   10,965   9,792   8,057 
Accumulated other comprehensive loss  (989)  (4,540)  (8,881)  (7,062)  (5,612)
Total shareholders' equity  123,782   97,219   86,577   87,125   86,738 
Total liabilities and shareholders’ equity $1,214,451  $1,237,732  $1,251,122  $1,239,287  $1,189,260 
                     

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) 2019  2018  2018  2018  2018 
Interest income                    
Loans:                    
Loans - taxable $8,940  $9,090  $9,059  $8,631  $7,934 
Loans - tax-free  591   596   559   506   448 
Total loans  9,531   9,686   9,618   9,137   8,382 
Securities:                    
Securities, taxable  2,119   2,083   2,138   2,153   2,109 
Securities, tax-free  47   48   47   48   25 
Total interest and dividends on securities  2,166   2,131   2,185   2,201   2,134 
Interest-bearing deposits in other banks  46   36   17   12   23 
Total interest income   11,743   11,853   11,820   11,350   10,539 
Interest expense                    
Deposits  2,238   2,165   1,559   1,134   1,067 
Borrowed funds  425   416   879   863   495 
   2,663   2,581   2,438   1,997   1,562 
Net interest income  $9,080  $9,272  $9,382  $9,353  $8,977 
                     
Average balances                    
Earning assets:                    
Loans:                    
Loans - taxable $784,359  $796,886  $803,314  $784,427  $748,375 
Loans - tax-free  59,220   58,722   55,848   49,855   44,383 
Total loans  843,579   855,608   859,162   834,282   792,758 
Securities:                    
Securities, taxable  299,498   299,981   303,037   305,627   301,032 
Securities, tax-free  4,638   4,651   4,664   4,677   2,325 
Total securities  304,136   304,632   307,701   310,304   303,357 
Interest-bearing deposits in other banks  9,495   8,438   3,735   2,629   3,825 
Total interest-earning assets  1,157,210   1,168,678   1,170,598   1,147,215   1,099,940 
Non-earning assets  81,868   72,999   75,518   74,188   76,114 
Total assets $1,239,078  $1,241,677  $1,246,116  $1,221,403  $1,176,054 
Interest-bearing liabilities:                    
Deposits $903,542  $926,767  $827,570  $790,233  $806,494 
Borrowed funds  58,402   62,495   149,682   163,547   102,676 
Total interest-bearing liabilities  961,944   989,262   977,252   953,780   909,170 
Demand deposits  155,122   157,223   173,616   173,037   169,450 
Other liabilities  11,801   8,272   7,983   8,444   10,663 
Shareholders' equity  110,211   86,920   87,265   86,142   86,771 
Total liabilities and shareholders' equity $1,239,078  $1,241,677  $1,246,116  $1,221,403  $1,176,054 
                     
Yield/Cost                    
Earning assets:                    
Loans:                    
Interest and fees on loans - taxable  4.56%  4.56%  4.51%  4.40%  4.24%
Interest and fees on loans - tax-free  3.99%  4.06%  4.01%  4.06%  4.04%
Total loans  4.52%  4.53%  4.48%  4.38%  4.23%
Securities:                    
Securities, taxable  2.83%  2.78%  2.82%  2.82%  2.80%
Securities, tax-free  4.05%  4.13%  4.03%  4.11%  4.30%
Total securities  2.85%  2.80%  2.84%  2.84%  2.81%
Interest-bearing deposits in other banks  1.94%  1.71%  1.82%  1.83%  2.41%
Total earning assets  4.06%  4.06%  4.04%  3.96%  3.83%
Interest-bearing liabilities:                    
Interest on deposits  0.99%  0.93%  0.75%  0.57%  0.53%
Interest on borrowed funds  2.91%  2.66%  2.35%  2.11%  1.93%
Total interest-bearing liabilities  1.11%  1.04%  1.00%  0.84%  0.69%
Net interest spread  2.95%  3.02%  3.04%  3.12%  3.15%
Net interest margin  3.14%  3.17%  3.21%  3.26%  3.26%
                     

FNCB Bancorp, Inc.
Asset Quality Data

  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands) 2019  2018  2018  2018  2018 
At period end                    
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $6,175  $4,696  $4,391  $3,469  $2,403 
Loans past due 90 days or more and still accruing  -   -   -   -   - 
Total non-performing loans  6,175   4,696   4,391   3,469   2,403 
Other real estate owned (OREO)  919   919   715   787   579 
Other non-performing assets  1,900   1,900   1,900   1,900   1,900 
Total non-performing assets $8,994  $7,515  $7,006  $6,156  $4,882 
                     
Accruing TDRs $8,215  $8,457  $8,515  $8,741  $8,797 
                     
                     
For the three months ended                    
Allowance for loan and lease losses                    
Beginning balance $9,519  $9,827  $9,459  $9,562  $9,034 
Loans charged-off  454   392   1,037   1,310   400 
Recoveries of charged-off loans  342   283   256   327   208 
Net charge-offs  112   109   781   983   192 
(Credit) provision for loan and lease losses  (154)  (199)  1,149   880   720 
Ending balance $9,253  $9,519  $9,827  $9,459  $9,562 
                     

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Source: FNCB Bancorp, Inc.