INVESTOR RELATIONS

 

FNCB Bancorp, Inc. Announces Increase in Second Quarter and Year-to-date 2019 Earnings

Company Release - 7/22/2019 8:30 AM ET

DUNMORE, Pa., July 22, 2019 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.549 million, or $0.13 per basic and diluted share, for the three months ended June 30, 2019, an increase of $137 thousand, or 5.7%, compared to net income of $2.412 million, or $0.14 per basic and diluted share, for the three months ended June 30, 2018. Net income for the six months ended June 30, 2019 was $5.184 million, or $0.27 per basic and diluted share, an increase of $753 thousand, or 17.0%, from $4.431 million for the same six months of 2018. The increase in second quarter and year-to-date earnings primarily reflected a reduction in the provision loan and lease losses, coupled with an increase in non-interest income. Partially offsetting these positive factors was a decrease in net interest income and an increase in non-interest expense.

For the three months and six months ended June 30, 2019, the annualized return on average assets was 0.85% and 0.86%, respectively, and 0.79% and 0.75%, respectively, for the same periods of 2018. The annualized return on average equity was 8.19% and 8.89%, respectively, for the three- and six-month periods ended June 30, 2019, and 11.23% and 10.34%, respectively, for the comparable periods of 2018. Dividends declared and paid were $0.05 per share for the second quarter and $0.10 per share for the year-to-date period of 2019, a 25.0% increase compared to $0.04 per share and $0.08 per share, respectively, for the three and six months ended June 30, 2018. The dividend pay-out ratio for the six months ended June 30, 2019, was 38.8%, compared to 30.3% for the comparable period of 2018.

Second Quarter 2019 Highlights:

  • Opened a new community banking office in Mountain Top, Luzerne County, Pennsylvania;
  • Completed the relocation of our main office into a new state-of-the-art facility in Dunmore, Lackawanna County, Pennsylvania;
  • Tax-equivalent net interest margin improved 11 basis points on a linked quarter basis to 3.25% for the second quarter of 2019, compared to 3.14% for the first quarter of 2019;
  • Year-to-date 2019 dividend payout ratio of 38.8%; and
  • FNCB Bancorp, Inc. added as a member of the Russell 3000® Index as part of FTSE Russell reconstitution after market close on June 28, 2019.

"The second quarter of 2019 was another profitable quarter for FNCB. Through effective asset/liability management we were able to stabilize funding costs and improve our net interest margin over the prior quarter, as well as improve operating efficiency within our franchise," stated Gerard A. Champi, President and Chief Executive Officer. "At the end of the second quarter of 2019, we were pleased to announce the opening of our newest and seventeenth full-service, banking office in Mountain Top, Pennsylvania and we are excited to be part of, and serve the people and businesses in, the Mountain Top community. Additionally, at the end of the second quarter, we completed the relocation of our main office to a brand new, state-of-the-art facility. Both locations feature an open, relaxed, cafe-like atmosphere designed to enhance our customer's in-branch banking experience," continued Champi. "For the remainder of 2019, we are focused on enhancements to our mobile-banking platforms, as well as furthering core deposit relationships within the personal and business sectors," Champi concluded.

Summary Results

For the three months ended June 30, 2019, tax-equivalent net interest income decreased $0.3 million, or 3.2% to $9.1 million from $9.4 million for the same three months of 2018. Specifically, interest expense increased $0.5 million, or 25.6%, to $2.5 million for the second quarter of 2019 from $2.0 million for the same quarter of 2018. The increase in interest expense was partially mitigated by an increase in tax-equivalent interest income of $0.2 million, or 1.9%, comparing the second quarters of 2019 and 2018. The increase in second quarter interest expense resulted primarily from a 44-basis point increase in the cost of deposits, coupled with a $61.5 million, or 7.8%, increase in average interest-bearing deposits. The increase in the average balance and cost of interest-bearing deposits was partially offset by a $111.2 million, or 68.0%, reduction in average borrowed funds. Comparing the second quarter of 2019 and 2018, the increase in tax-equivalent interest income was largely caused by a 26-basis point increase in the tax-equivalent yield on loans, partially offset by a $14.3 million decrease in average loans. For the six months ended June 30, 2019, tax-equivalent net interest income decreased $0.2 million, or 1.1% to $18.1 million, from $18.3 million for the same six months of 2018. Similar to the quarter-to-date period, the decrease in year-to-date tax-equivalent net interest income reflected rising deposit costs and higher average balances of interest-bearing deposits, partially offset by a reduction in the average balance of borrowed funds. A 27-basis point increase in the tax-equivalent yield on loans, coupled with a moderate $18.7 million, or 2.2%, increase in average loans, also positively impacted net interest income levels comparing the year-to-date periods of 2019 and 2018. Despite the increase for the quarter and year-to-date periods, deposit costs have stabilized, increasing by 2 basis points on a linked quarter basis from the first quarter of 2019. Additionally, FNCB’s tax-equivalent net interest margin, which decreased consistently over the prior four quarters, increased 11 basis points to 3.25% for the second quarter of 2019 from 3.14% for the first quarter of 2019 and was comparable to the tax-equivalent net interest margin of 3.26% for the second 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 the three and six months ended June 30, 2019 and 2018.

Non-interest income increased moderately comparing the quarter and year-to-date periods of 2019 and 2018 due primarily to net gains on the sale of available-for-sale securities, partially offset by a reduction in deposit service charges. FNCB realized net gains on the sale of available-for-sale debt securities of $163 thousand and $323 thousand for the second quarter and year-to-date periods of 2019, respectively, compared to a net loss of $4 thousand for both respective periods of 2018. Deposit services charges decreased $26 thousand and $43 thousand comparing the three months and six months ended June 30, 2019 and 2018, respectively. FNCB implemented a tiered structure for NSF charges during the first quarter of 2019, which was the primary factor causing the reduction in deposit service charges.

For the three months ended June 30, 2019, non-interest expense increased by $156 thousand, or 2.2%, to $7.1 million from $7.0 million for the comparable three months of 2018. Non-interest expense for the six months ended June 30, 2019, increased $349 thousand, or 2.5%, to $14.5 million from $14.2 million for the same six months of 2018. The increase in the three- and six-month periods primarily reflected increases in salaries and employee benefits, data processing costs and bank shares tax, which were partially offset by reductions in occupancy expense, regulatory assessments and other operating expenses.

Asset Quality

Total non-performing loans decreased $0.9 million to $5.3 million, or 0.65% of total loans, at June 30, 2019 from $6.2 million, or 0.74%, of total loans at March 31, 2019. Additionally, FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) improved to 0.99% at June 30, 2019 from 1.28% at March 31, 2019. The allowance for loan and lease losses was $8.9 million, or 1.10% of total outstanding loans, at June 30, 2019, compared to $9.3 million, or 1.10% of total loans outstanding, at March 31, 2019 and $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management actively manages 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 $655 thousand, or an annual rate of 0.32% of average loans, for the three months ended June 30, 2019 compared to $983 thousand, or an annual rate of 0.47% of average loans, for the same three months of 2018.

Financial Condition

The balance sheet contracted by $15.7 million, or 1.3%, to $1.199 billion at June 30, 2019, from $1.214 billion at March 31, 2019. The decrease in total assets primarily reflected a $24.5 million, or 2.9%, decrease in loans, net of deferred costs and unearned income, to $814.4 million at June 30, 2019 from $838.9 million at March 31, 2019, which primarily reflected the planned runoff of indirect automobile loan balances and the anticipated payoff of two large municipal loans, partially offset by growth in construction, land acquisition and development loans. The decrease in loans was partially offset by an $11.8 million, or 4.3% increase in available-for-sale securities to $285.9 million at June 30, 2019 from $274.1 million at March 31, 2019. Total deposits decreased $79.0 million, or 7.6%, to $961.1 million at June 30, 2019 from $1.040 billion at March 31, 2019, which largely reflected the cyclical deposit trends of municipal customers, coupled with a decrease in time deposits. Conversely, total borrowed funds increased $58.2 million to $97.5 million at June 30, 2019 from $39.3 million at March 31, 2019, which was entirely comprised of an increase in FHLB of Pittsburgh advances. Total assets decreased $38.9 million, or 3.1%, from $1.238 billion at December 31, 2018. Similar to the change for the quarter, the decrease from December 31, 2018 reflected a $24.7 million, or 2.9% decrease in loans, net of deferred costs and unearned income, partially offset by an increase of $10.1 million, or 3.4%, in available-for-sale securities. Total deposits decreased $134.5 million, or 12.3%, from $1.096 billion at December 31, 2018, while total borrowed funds increased $63.3 million, or 185.1%, from $34.2 million at December 31, 2018.

Total shareholders’ equity increased $32.5 million, or 33.4%, to $129.7 million at June 30, 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 in the first quarter of 2019. Also factoring into the capital improvement was net income for the six months ended June 30, 2019 of $5.2 million and a $7.9 million positive change in other comprehensive income related entirely to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $2.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.71% and 11.02%, respectively, at June 30, 2019 from 12.69% and 8.50%, respectively, at December 31, 2018.

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 17 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
 
  Jun 30,  Mar 31,  Dec 31,  Sept 30,  Jun 30, 
  2019  2019  2018  2018  2018 
Per share data:                    
Net income (fully diluted) $0.13  $0.14  $0.42  $0.11  $0.14 
Cash dividends declared $0.05  $0.05  $0.05  $0.04  $0.04 
Book value $6.44  $6.16  $5.78  $5.15  $5.18 
Tangible book value $6.44  $6.16  $5.78  $5.15  $5.18 
Market value:                    
High $8.12  $10.68  $10.39  $12.00  $10.00 
Low $7.16  $7.14  $8.21  $7.97  $8.01 
Close $7.74  $7.70  $8.44  $9.77  $8.88 
Common shares outstanding  20,148,017   20,108,560   16,821,371   16,819,471   16,817,097 
                     
Selected ratios:                    
Annualized return on average assets  0.85%  0.86%  2.26%  0.59%  0.79%
Annualized return on average shareholders' equity  8.19%  9.70%  32.26%  8.41%  11.23%
Efficiency ratio  68.12%  71.24%  47.59%  67.11%  63.94%
Tier I leverage ratio  11.02%  10.45%  8.50%  7.66%  7.69%
Total risk-based capital to risk-adjusted assets  15.71%  15.06%  12.69%  11.42%  11.31%
Average shareholders' equity to average total assets  10.41%  8.89%  7.00%  7.00%  7.05%
Yield on earning assets (FTE)  4.15%  4.06%  4.06%  4.04%  3.96%
Cost of funds  1.11%  1.11%  1.04%  1.00%  0.84%
Net interest spread (FTE)  3.04%  2.95%  3.02%  3.04%  3.12%
Net interest margin (FTE)  3.25%  3.14%  3.17%  3.21%  3.26%
Total delinquent loans/total loans  0.99%  1.28%  0.93%  0.90%  0.71%
Allowance for loan and lease losses/total loans  1.10%  1.10%  1.13%  1.14%  1.11%
Non-performing loans/total loans  0.65%  0.74%  0.56%  0.51%  0.41%
Annualized net charge-offs/average loans  0.32%  0.05%  0.05%  0.36%  0.47%


FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
 
  Six Months Ended 
  June 30, 
(in thousands, except share data) 2019  2018 
Interest income        
Interest and fees on loans $18,825  $17,319 
Interest and dividends on securities        
U.S. government agencies  1,799   1,776 
State and political subdivisions, tax-free  75   58 
State and political subdivisions, taxable  1,832   2,051 
Other securities  415   435 
Total interest and dividends on securities  4,121   4,320 
Interest on interest-bearing deposits in other banks  125   35 
Total interest income  23,071   21,674 
Interest expense        
Interest on deposits  4,382   2,201 
Interest on borrowed funds        
Interest on Federal Home Loan Bank of Pittsburgh advances  540   1,059 
Interest on subordinated debentures  24   113 
Interest on junior subordinated debentures  225   186 
Total interest on borrowed funds  789   1,358 
Total interest expense  5,171   3,559 
Net interest income before provision for loan and lease losses  17,900   18,115 
Provision for loan and lease losses  193   1,600 
Net interest income after provision for loan and lease losses  17,707   16,515 
Non-interest income        
Deposit service charges  1,406   1,449 
Net gain (loss) on the sale of securities  323   (4)
Net gain (loss) on equity securities  26   (26)
Net gain on the sale of mortgage loans held for sale  129   100 
Net gain on the sale of SBA guaranteed loans  -   322 
Net gain (loss) on the sale of other real estate owned  9   31 
Loan-related fees  151   160 
Income from bank-owned life insurance  260   272 
Other  789   744 
Total non-interest income  3,093   3,048 
Non-interest expense        
Salaries and employee benefits  7,723   7,151 
Occupancy expense  994   1,129 
Equipment expense  636   637 
Data processing expense  1,570   1,295 
Regulatory assessments  244   397 
Bank shares tax  555   489 
Professional fees  535   492 
Insurance expense  246   268 
Other operating expenses  2,044   2,340 
Total non-interest expense  14,547   14,198 
Income before income taxes  6,253   5,365 
Income tax expense  1,069   934 
Net income $5,184  $4,431 
         
Income per share        
Basic $0.27  $0.26 
Diluted $0.27  $0.26 
         
Cash dividends declared per common share  $0.10  $0.08 
Weighted average number of shares outstanding:        
Basic  19,428,717   16,778,188 
Diluted  19,435,076   16,801,426 


FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
 
  Three Months Ended 
  Jun 30,  Mar 31,  Dec 31,  Sept 30,  Jun 30, 
(in thousands, except share data) 2019  2019  2018  2018  2018 
Interest income                    
Interest and fees on loans $9,418  $9,407  $9,561  $9,501  $9,031 
Interest and dividends on securities                    
U.S. government agencies  906   893   890   899   886 
State and political subdivisions, tax-free  38   37   38   37   38 
State and political subdivisions, taxable  811   1,021   1,026   1,028   1,027 
Other securities  210   205   167   211   240 
Total interest and dividends on securities  1,965   2,156   2,121   2,175   2,191 
Interest on interest-bearing deposits in other banks  79   46   36   17   12 
Total interest income   11,462   11,609   11,718   11,693   11,234 
Interest expense                    
Interest on deposits  2,144   2,238   2,165   1,559   1,134 
Interest on borrowed funds                    
Interest on Federal Home Loan Bank of Pittsburgh advances  253   287   251   715   707 
Interest on subordinated debentures  0   24   57   58   57 
Interest on junior subordinated debentures  111   114   108   106   99 
Total interest on borrowed funds  364   425   416   879   863 
Total interest expense   2,508   2,663   2,581   2,438   1,997 
Net interest income before provision (credit) for loan and lease losses   8,954   8,946   9,137   9,255   9,237 
Provision (credit) for loan and lease losses  347   (154)  (199)  1,149   880 
Net interest income after provision (credit) for loan and lease losses   8,607   9,100   9,336   8,106   8,357 
Non-interest income                    
Deposit service charges  721   685   725   711   747 
Net gain (loss) on the sale of securities  163   160   -   -   (4)
Net gain (loss) on equity securities  14   12   7   (8)  (7)
Net gain on the sale of mortgage loans held for sale  73   56   39   71   51 
Net gain on the sale of SBA guaranteed loans  -   -   -   -   71 
Net (loss) gain on the sale of other real estate owned  9   -   -   -   (7)
Loan-related fees  72   79   145   85   76 
Income from bank-owned life insurance  129   131   142   141   138 
Insurance recovery  -   -   6,027   -   - 
Other  397   392   337   320   464 
Total non-interest income   1,578   1,515   7,422   1,320   1,529 
Non-interest expense                    
Salaries and employee benefits  3,824   3,899   4,048   3,581   3,485 
Occupancy expense  444   550   562   500   526 
Equipment expense  329   307   318   299   323 
Data processing expense  789   781   759   745   647 
Regulatory assessments  76   168   213   251   196 
Bank shares tax  277   278   (131)  278   222 
Professional fees  203   332   295   241   196 
Insurance expense  120   126   117   130   133 
Other operating expenses  1,060   984   1,760   1,163   1,238 
Total non-interest expense   7,122   7,425   7,941   7,188   6,966 
Income before income taxes   3,063   3,190   8,817   2,238   2,920 
Income tax expense  514   555   1,749   388   508 
Net income  $2,549  $2,635  $7,068  $1,850  $2,412 
                     
Income per share                    
Basic $0.13  $0.14  $0.42  $0.11  $0.14 
Diluted $0.13  $0.14  $0.42  $0.11  $0.14 
                     
Cash dividends declared per common share  $0.05  $0.05  $0.05  $0.04  $0.04 
Weighted average number of shares outstanding:                    
Basic  20,129,150   18,720,502   16,820,337   16,818,625   16,792,812 
Diluted  20,133,850   18,733,652   16,840,933   16,838,547   16,819,286 


FNCB Bancorp, Inc.
Consolidated Balance Sheets
 
  Jun 30,  Mar 31,  Dec 31,  Sept 30,  Jun 30, 
(in thousands) 2019  2019  2018  2018  2018 
Assets                    
Cash and cash equivalents:                    
Cash and due from banks $24,277  $25,683  $26,673  $23,051  $16,500 
Interest-bearing deposits in other banks  5,627   7,062   9,808   7,246   4,624 
Total cash and cash equivalents  29,904   32,745   36,481   30,297   21,124 
Available-for-sale debt securities, at fair value  285,855   274,114   296,032   288,780   290,863 
Equity securities, at fair value  917   904   891   884   892 
Restricted stock, at cost  4,618   3,120   3,123   3,333   7,964 
Loans held for sale  419   609   820   938   629 
Loans, net of net deferred costs and unearned income  814,420   838,864   839,100   864,316   855,391 
Allowance for loan and lease losses  (8,945)  (9,253)  (9,519)  (9,827)  (9,459)
Net loans  805,475   829,611   829,581   854,489   845,932 
Bank premises and equipment, net  15,923   14,991   14,425   13,895   13,900 
Accrued interest receivable  3,640   3,706   3,614   4,061   3,654 
Bank-owned life insurance  31,275   31,146   31,015   30,873   30,732 
Other real estate owned  560   919   919   715   787 
Other assets  20,208   22,526   20,831   22,857   22,810 
Total assets  $1,198,794  $1,214,451  $1,237,732  $1,251,122  $1,239,287 
                     
Liabilities                    
Deposits:                    
Demand (non-interest-bearing) $157,856  $157,073  $156,600  $166,967  $177,388 
Interest-bearing  803,208   883,017   939,029   928,154   777,855 
Total deposits  961,064   1,040,090   1,095,629   1,095,121   955,243 
Borrowed funds:                    
Federal Home Loan Bank of Pittsburgh advances  87,223   28,988   18,930   46,490   174,251 
Subordinated debentures  -   -   5,000   5,000   5,000 
Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
Total borrowed funds  97,533   39,298   34,240   61,800   189,561 
Accrued interest payable  389   339   338   318   331 
Other liabilities  10,102   10,942   10,306   7,306   7,027 
Total liabilities   1,069,088   1,090,669   1,140,513   1,164,545   1,152,162 
                     
Shareholders' equity                    
Preferred stock  -   -   -   -   - 
Common stock  25,184   25,135   21,026   21,024   21,021 
Additional paid-in capital  80,864   80,827   63,547   63,469   63,374 
Retained earnings  20,345   18,809   17,186   10,965   9,792 
Accumulated other comprehensive income (loss)  3,313   (989)  (4,540)  (8,881)  (7,062)
Total shareholders' equity   129,706   123,782   97,219   86,577   87,125 
Total liabilities and shareholders’ equity  $1,198,794  $1,214,451  $1,237,732  $1,251,122  $1,239,287 


FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
 
  Three Months Ended 
  Jun 30,  Mar 31,  Dec 31,  Sept 30,  Jun 30, 
(dollars in thousands) 2019  2019  2018  2018  2018 
Interest income                    
Loans:                    
Loans - taxable $9,084  $8,940  $9,090  $9,059  $8,631 
Loans - tax-free  423   591   596   559   506 
Total loans  9,507   9,531   9,686   9,618   9,137 
Securities:                    
Securities, taxable  1,927   2,119   2,083   2,138   2,153 
Securities, tax-free  48   47   48   47   48 
Total interest and dividends on securities  1,975   2,166   2,131   2,185   2,201 
Interest-bearing deposits in other banks  79   46   36   17   12 
Total interest income   11,561   11,743   11,853   11,820   11,350 
Interest expense                    
Deposits  2,144   2,238   2,165   1,559   1,134 
Borrowed funds  364   425   416   879   863 
Total interest expense  2,508   2,663   2,581   2,438   1,997 
Net interest income  $9,053  $9,080  $9,272  $9,382  $9,353 
                     
Average balances                    
Earning assets:                    
Loans:                    
Loans - taxable $778,540  $784,359  $796,886  $803,314  $784,427 
Loans - tax-free  41,436   59,220   58,722   55,848   49,855 
Total loans  819,976   843,579   855,608   859,162   834,282 
Securities:                    
Securities, taxable  274,552   299,498   299,981   303,037   305,627 
Securities, tax-free  4,624   4,638   4,651   4,664   4,677 
Total securities  279,176   304,136   304,632   307,701   310,304 
Interest-bearing deposits in other banks  14,420   9,495   8,438   3,735   2,629 
Total interest-earning assets   1,113,572   1,157,210   1,168,678   1,170,598   1,147,215 
Non-earning assets  85,429   81,868   72,999   75,518   74,188 
Total assets  $1,199,001  $1,239,078  $1,241,677  $1,246,116  $1,221,403 
Interest-bearing liabilities:                    
Deposits $851,726  $903,542  $926,767  $827,570  $790,233 
Borrowed funds  52,313   58,402   62,495   149,682   163,547 
Total interest-bearing liabilities   904,039   961,944   989,262   977,252   953,780 
Demand deposits  158,413   155,122   157,223   173,616   173,037 
Other liabilities  11,698   11,801   8,272   7,983   8,444 
Shareholders' equity  124,851   110,211   86,920   87,265   86,142 
Total liabilities and shareholders' equity  $1,199,001  $1,239,078  $1,241,677  $1,246,116  $1,221,403 
                     
Yield/Cost                    
Earning assets:                    
Loans:                    
Interest and fees on loans - taxable  4.67%  4.56%  4.56%  4.51%  4.40%
Interest and fees on loans - tax-free  4.08%  3.99%  4.06%  4.01%  4.06%
Total loans  4.64%  4.52%  4.53%  4.48%  4.38%
Securities:                    
Securities, taxable  2.81%  2.83%  2.78%  2.82%  2.82%
Securities, tax-free  4.15%  4.05%  4.13%  4.03%  4.11%
Total securities  2.83%  2.85%  2.80%  2.84%  2.84%
Interest-bearing deposits in other banks  2.19%  1.94%  1.71%  1.82%  1.83%
Total earning assets   4.15%  4.06%  4.06%  4.04%  3.96%
Interest-bearing liabilities:                    
Interest on deposits  1.01%  0.99%  0.93%  0.75%  0.57%
Interest on borrowed funds  2.78%  2.91%  2.66%  2.35%  2.11%
Total interest-bearing liabilities   1.11%  1.11%  1.04%  1.00%  0.84%
Net interest spread   3.04%  2.95%  3.02%  3.04%  3.12%
Net interest margin   3.25%  3.14%  3.17%  3.21%  3.26%


FNCB Bancorp, Inc.
Asset Quality Data
 
  Jun 30,  Mar 31,  Dec 31,  Sept 30,  Jun 30, 
(in thousands) 2019  2019  2018  2018  2018 
At period end                    
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $5,302  $6,175  $4,696  $4,391  $3,469 
Loans past due 90 days or more and still accruing  -   -   -   -   - 
Total non-performing loans  5,302   6,175   4,696   4,391   3,469 
Other real estate owned (OREO)  560   919   919   715   787 
Other non-performing assets  1,900   1,900   1,900   1,900   1,900 
Total non-performing assets $7,762  $8,994  $7,515  $7,006  $6,156 
                     
Accruing TDRs $7,897  $8,215  $8,457  $8,515  $8,741 
                     
                     
For the three months ended                    
Allowance for loan and lease losses                    
Beginning balance $9,253  $9,519  $9,827  $9,459  $9,562 
Loans charged-off  1,123   454   392   1,037   1,310 
Recoveries of charged-off loans  468   342   283   256   327 
Net charge-offs  655   112   109   781   983 
(Credit) provision for loan and lease losses  347   (154)  (199)  1,149   880 
Ending balance $8,945  $9,253  $9,519  $9,827  $9,459 


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Source: FNCB Bancorp, Inc.
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