INVESTOR RELATIONS

 

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

Company Release - 10/21/2019 9:00 AM ET

DUNMORE, Pa., Oct. 21, 2019 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.403 million, or $0.12 per basic and diluted share, for the three months ended September 30, 2019, an increase of $553 thousand, or 29.9%, compared to net income of $1.850 million, or $0.11 per basic and diluted share, for the three months ended September 30, 2018. Net income for the nine months ended September 30, 2019 was $7.587 million, or $0.39 per basic and diluted share, an increase of $1.306 million, or 20.8%, from $6.281 million for the same year-to-date period of 2018. The increase in third quarter and year-to-date earnings primarily reflected a reduction in the provision loan and lease losses and an increase in non-interest income, partially offset by a decrease in net interest income and an increase in non-interest expense. 

For the three months and nine months ended September 30, 2019, the annualized return on average assets was 0.80% and 0.84%, respectively, and 0.59% and 0.69%, respectively, for the same periods of 2018. The annualized return on average equity was 7.30% and 8.32%, respectively, for the three- and nine-month periods ended September 30, 2019, and 8.41% and 9.68%, respectively, for the comparable periods of 2018. Dividends declared and paid were $0.05 per share for the third quarter and $0.15 per share for the year-to-date period of 2019, a 25.0% increase compared to $0.04 per share and $0.12 per share, respectively, for the three and nine months ended September 30, 2018. The dividend pay-out ratio for the nine months ended September 30, 2019, was 39.8%, compared to 30.3% for the comparable period of 2018.

Third Quarter 2019 Highlights:

  • 29.9% increase in net income comparing the third quarters of 2019 and 2018;  
  • Tax-equivalent yield on earning assets for the third quarter improved 18 basis points to 4.22% in 2019 from 4.04% in 2018;   
  • Tax-equivalent net interest margin for the third quarter of 2019 improved 7 basis points from the second quarter of 2019, and 11 basis points over the third quarter of 2018; and
  • Year-to-date 2019 dividend payout ratio of 39.8%.

“We are pleased with our Company's performance for the third quarter of 2019. Our ability to improve the tax-equivalent net interest margin for the second consecutive quarter, reflects positively on the asset/liability management employed," stated Gerard A. Champi, President and Chief Executive Officer. "Despite the challenging interest rate environment, we were able to increase the tax-equivalent yield on both the loan and investment portfolios, on a linked quarter basis, as well as comparing the third quarters of 2019 and 2018," continued Champi. "We realize there is more work to accomplish. For the remainder of 2019 and looking ahead to 2020, we are focused on furthering core deposit relationships within the personal and business sectors, enhancing non-interest revenue, and sustaining our asset quality," Champi concluded. 

Summary Results 

For the three months ended September 30, 2019, tax-equivalent net interest income decreased $0.2 million, or 2.5% to $9.2 million from $9.4 million for the same three months of 2018, which primarily reflected a $0.2 million reduction in tax-equivalent interest income. Total interest expense was relatively stable, increasing only $17 thousand comparing the third quarters of 2019 and 2018. Specifically, interest income decreased $0.2 million, or 1.9%, to $11.6 million for the third quarter of 2019 from $11.8 million for the same quarter of 2018. The decrease in third quarter tax-equivalent interest income resulted primarily from reductions in the average balances of total loans and total investment securities of $39.6 million, or 4.6%, and $36.4 million, or 11.8%, respectively. Partially offsetting the lower average balances was an 18 basis-point increase in the tax-equivalent yield on earning assets to 4.22% for the three months ended September 30, 2019 from 4.04% for the same three months of 2018. Specifically, the tax-equivalent yield on the loan portfolio improved 19 basis points to 4.67% for the third quarter of 2019 from 4.48% for the respective quarter of 2018, while the tax-equivalent yield on investment securities increased 11 basis points to 2.95% from 2.84% comparing the third quarters of 2019 and 2018, respectively. With respect to the quarter over quarter change in interest expense, reductions in the average balances of total interest-bearing deposits and borrowed funds were more than entirely offset by an increase in the cost of funds. For the nine months ended September 30, 2019, tax-equivalent net interest income decreased $0.4 million, or 1.6% to $27.3 million, from $27.7 million for the same nine months of 2018. The decrease in year-to-date tax-equivalent net interest income primarily reflected rising deposit and borrowing costs and higher average balances of interest-bearing deposits, partially offset by a reduction in the average balance of borrowed funds. A 25 basis-point increase in the tax-equivalent yield on loans, coupled with a 4 basis-point increase in the tax-equivalent yield on investment securities, also positively impacted net interest income levels comparing the year-to-date periods of 2019 and 2018. Despite the increase for the quarter over quarter and year-to-date periods, funding costs have appeared to stabilize and remained at 1.11% for the three consecutive quarters of 2019.  Additionally, FNCB’s tax-equivalent net interest margin, which decreased in the third and fourth quarters of 2018 and the first quarter of 2019, increased 7 basis points to 3.32% for the third quarter of 2019 from 3.25% for the second quarter of 2019 and 18 basis points from 3.14% for the first quarter of 2019. 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 nine months ended September 30, 2019 and 2018.

For the three months ended September 30, 2019, non-interest income increased $511 thousand, or 38.7%, to $1.8 million from $1.3 million for the same three months of 2018. The quarter over quarter increase in non-interest income primarily reflected an increase in net gains on the sale of available-for-sale securities, coupled with increases in deposit service charges and other income. Comparing the year-to-date periods, non-interest income increased $556 thousand, or 12.7%, to $4.9 million in 2019 from $4.4 million in 2018. Similar to the reasons for the quarterly increase, the year-to-date increase was largely due to net gains on the sale of available-for-sale securities, higher deposit service charges and other income. Partially offsetting these increases for the year-to-date periods was a reduction in net gains on the sale of SBA guaranteed loans.  FNCB realized net gains on the sale of available-for-sale debt securities of $379 thousand and $702 thousand for the third quarter and year-to-date periods of 2019, respectively. There were no gains realized on the sale of securities for the three months ended September 30, 2018 and a net loss of $4 thousand for the year-to-date period of 2018.

For the three months ended September 30, 2019, non-interest expense increased by $141 thousand, or 2.0%, to $7.3 million from $7.2 million for the comparable three months of 2018. Non-interest expense for the nine months ended September 30, 2019, increased $490 thousand, or 2.3%, to $21.9 million from $21.4 million for the same nine months of 2018. The increase for the three-months ended September 30,2 019 as compared to the same period of 2018 was primarily attributable to increases in salaries and employee benefits and other operating expenses, partially offset by a reduction in regulatory assessments. The increase comparing the year-to-date periods primarily reflected increases in salaries and employee benefits and data processing costs, which were partially offset by reductions in regulatory assessments, occupancy and other operating expenses. 

Asset Quality

Total non-performing loans increased $0.8 million to $6.1 million, or 0.73% of total loans, at September 30, 2019 from $5.3 million, or 0.65%, of total loans at June 30, 2019, and $1.4 million, or 30.3%, from $4.7 million, or 0.56% of total loans at December 31, 2018. Additionally, FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) increased to 1.16% at September 30, 2019 from 0.99% at June 30, 2019 and 0.93% at December 31, 2018.  The allowance for loan and lease losses was $9.3 million, or 1.11% of total outstanding loans, at September 30, 2019, compared to $8.9 million, or 1.10% of total loans outstanding, at June 30, 2019 and $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management actively manages problem credits and employs prudent, appropriate workout strategies to resolve borrower difficulties and minimize loss to FNCB. Net charge-offs were $267 thousand, or an annual rate of 0.13% of average loans, for the three months ended September 30, 2019 compared to $781 thousand, or an annual rate of 0.36% of average loans, for the same three months of 2018. 

Financial Condition

Total assets decreased $1.6 million, or 0.13%, to $1.197 billion at September 30, 2019, from $1.199 billion at June 30, 2019.  The change in the balance sheet primarily reflected a decrease in available-for-sale debt securities, partially offset by increases in loans, net of net deferred loan costs and unearned income, and cash and cash equivalents. Available-for-sale debt securities decreased $31.2 million, or 10.9%, to $254.7 million at September 30, 2019 from $285.9 million at June 30, 2019. Proceeds from the sale of available-for-sale debt securities, not re-invested back into the portfolio, were used to fund loan demand and pay down wholesale funds. Loans, net of net deferred loan costs and unearned income, grew $22.5 million, or 2.8%, to $836.9 million at September 30, 2019, from $814.4 million at June 30, 2019, which primarily reflected the strong demand for commercial real estate, construction, land acquisition and development, and commercial and industrial loans. Total deposits increased $3.0 million, or 0.31%, to $964.1 million at September 30, 2019 from $961.1 million at June 30, 2019. Non-interest-bearing demand deposits increased $21.1 million, or 13.4%, to $179.0 million at September 30, 2019 from $157.9 million at June 30, 2019. The increase in non-interest-bearing deposits was partially offset by a reduction in interest-bearing deposits of $18.1 million, or 2.3%, to $785.1 million at September 30, 2019 from $803.2 million at June 30, 2019, which largely reflected the runoff of retail certificates of deposit and a cyclical reduction in public funds. Total borrowed funds decreased $7.8 million to $89.7 million at September 30, 2019 from $97.5 million at June 30, 2019, which was entirely comprised of a decrease in FHLB of Pittsburgh advances. Total assets decreased $40.5 million, or 3.3%, from $1.238 billion at December 31, 2018.  The decrease from December 31, 2018 resulted primarily from a $41.4 million, or 14.0% decrease in available-for-sale debt securities, coupled with a $2.2 million, or 0.26%, reduction in loans net of net deferred costs and unearned income. Total deposits decreased $131.6 million, or 12.0%, from $1.096 billion at December 31, 2018, which included a $75.8 million, or 100.0%, reduction in brokered deposits. Conversely, total borrowed funds increased $55.5 million, or 162.2%, from $34.2 million at December 31, 2018. 

Total shareholders’ equity increased $2.9 million, or 2.2%, to $132.6 million at September 30, 2019 from $129.7 million at June 30, 2019, which was predominantly due to net income for the third quarter of 2019, partially offset by dividends declared, coupled with a positive change in accumulated other comprehensive income. In comparison to $97.2 million at December 31, 2018, total shareholders' equity increased $35.3 million, or 36.4%. 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 nine months ended September 30, 2019 of $7.6 million and a $9.1 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 $3.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.72% and 11.27%, respectively, at September 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
                
  Sept 30,  Jun 30,  Mar 31,  Dec 31,  Sept 30, 
  2019  2019  2019  2018  2018 
Per share data:                    
Net income (fully diluted) $0.12  $0.13  $0.14  $0.42  $0.11 
Cash dividends declared $0.05  $0.05  $0.05  $0.05  $0.04 
Book value $6.57  $6.44  $6.16  $5.78  $5.15 
Tangible book value $6.57  $6.44  $6.16  $5.78  $5.15 
Market value:                    
High $9.41  $8.12  $10.68  $10.39  $12.00 
Low $7.03  $7.16  $7.14  $8.21  $7.97 
Close $7.81  $7.74  $7.70  $8.44  $9.77 
Common shares outstanding  20,169,492   20,148,017   20,108,560   16,821,371   16,819,471 
                     
Selected ratios:                    
Annualized return on average assets  0.80%  0.85%  0.86%  2.26%  0.59%
Annualized return on average shareholders' equity  7.30%  8.19%  9.70%  32.26%  8.41%
Efficiency ratio  69.20%  68.12%  71.24%  47.59%  67.11%
Tier I leverage ratio  11.27%  11.02%  10.45%  8.50%  7.66%
Total risk-based capital to risk-adjusted assets  15.72%  15.71%  15.06%  12.69%  11.42%
Average shareholders' equity to average total assets  10.96%  10.41%  8.89%  7.00%  7.00%
Yield on earning assets (FTE)  4.22%  4.15%  4.06%  4.06%  4.04%
Cost of funds  1.11%  1.11%  1.11%  1.04%  1.00%
Net interest spread (FTE)  3.11%  3.04%  2.95%  3.02%  3.04%
Net interest margin (FTE)  3.32%  3.25%  3.14%  3.17%  3.21%
Total delinquent loans/total loans  1.16%  0.99%  1.28%  0.93%  0.90%
Allowance for loan and lease losses/total loans  1.11%  1.10%  1.10%  1.13%  1.14%
Non-performing loans/total loans  0.73%  0.65%  0.74%  0.56%  0.51%
Annualized net charge-offs/average loans  0.13%  0.32%  0.05%  0.05%  0.36%


 
FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
    
  Nine Months Ended 
  September 30, 
(in thousands, except share data) 2019  2018 
Interest income        
Interest and fees on loans $28,313  $26,820 
Interest and dividends on securities        
U.S. government agencies  2,723   2,675 
State and political subdivisions, tax-free  112   95 
State and political subdivisions, taxable  2,545   3,079 
Other securities  729   646 
Total interest and dividends on securities  6,109   6,495 
Interest on interest-bearing deposits in other banks  155   52 
Total interest income  34,577   33,367 
Interest expense        
Interest on deposits  6,283   3,760 
Interest on borrowed funds        
Interest on Federal Home Loan Bank of Pittsburgh advances  988   1,774 
Interest on subordinated debentures  24   171 
Interest on junior subordinated debentures  331   292 
Total interest on borrowed funds  1,343   2,237 
Total interest expense  7,626   5,997 
Net interest income before provision for loan and lease losses  26,951   27,370 
Provision for loan and lease losses  830   2,749 
Net interest income after provision for loan and lease losses  26,121   24,621 
Non-interest income        
Deposit service charges  2,203   2,160 
Net gain (loss) on the sale of securities  702   (4)
Net gain (loss) on equity securities  31   (34)
Net gain on the sale of mortgage loans held for sale  198   171 
Net gain on the sale of SBA guaranteed loans  -   322 
Net gain on the sale of other real estate owned  20   31 
Loan-related fees  231   245 
Income from bank-owned life insurance  394   413 
Other  1,145   1,064 
Total non-interest income  4,924   4,368 
Non-interest expense        
Salaries and employee benefits  11,634   10,732 
Occupancy expense  1,454   1,629 
Equipment expense  968   936 
Data processing expense  2,312   2,040 
Regulatory assessments  265   648 
Bank shares tax  760   767 
Professional fees  724   733 
Insurance expense  374   398 
Other operating expenses  3,385   3,503 
Total non-interest expense  21,876   21,386 
Income before income taxes  9,169   7,603 
Income tax expense  1,582   1,322 
Net income $7,587  $6,281 
         
Income per share        
Basic $0.39  $0.37 
Diluted $0.39  $0.37 
         
Cash dividends declared per common share  $0.15  $0.12 
Weighted average number of shares outstanding:        
Basic  19,678,031   16,791,815 
Diluted  19,683,522   16,813,948 


 
FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
 
  Three Months Ended 
  Sept 30,  Jun 30,  Mar 31,  Dec 31,  Sept 30, 
(in thousands, except share data) 2019  2019  2019  2018  2018 
Interest income                    
Interest and fees on loans $9,488  $9,418  $9,407  $9,561  $9,501 
Interest and dividends on securities                    
U.S. government agencies  924   906   893   890   899 
State and political subdivisions, tax-free  37   38   37   38   37 
State and political subdivisions, taxable  713   811   1,021   1,026   1,028 
Other securities  314   210   205   167   211 
Total interest and dividends on securities  1,988   1,965   2,156   2,121   2,175 
Interest on interest-bearing deposits in other banks  30   79   46   36   17 
Total interest income  11,506   11,462   11,609   11,718   11,693 
Interest expense                    
Interest on deposits  1,901   2,144   2,238   2,165   1,559 
Interest on borrowed funds                    
Interest on Federal Home Loan Bank of Pittsburgh advances  448   253   287   251   715 
Interest on subordinated debentures  0   0   24   57   58 
Interest on junior subordinated debentures  106   111   114   108   106 
Total interest on borrowed funds  554   364   425   416   879 
Total interest expense  2,455   2,508   2,663   2,581   2,438 
Net interest income before provision (credit) for loan and lease losses  9,051   8,954   8,946   9,137   9,255 
Provision (credit) for loan and lease losses  637   347   (154)  (199)  1,149 
Net interest income after provision (credit) for loan and lease losses  8,414   8,607   9,100   9,336   8,106 
Non-interest income                    
Deposit service charges  797   721   685   725   711 
Net gain on the sale of securities  379   163   160   -   - 
Net gain (loss) on equity securities  5   14   12   7   (8)
Net gain on the sale of mortgage loans held for sale  69   73   56   39   71 
Net gain on the sale of SBA guaranteed loans  -   -   -   -   - 
Net gain on the sale of other real estate owned  11   9   -   -   - 
Loan-related fees  80   72   79   145   85 
Income from bank-owned life insurance  134   129   131   142   141 
Insurance recovery  -   -   -   6,027   - 
Other  356   397   392   337   320 
Total non-interest income  1,831   1,578   1,515   7,422   1,320 
Non-interest expense                    
Salaries and employee benefits  3,911   3,824   3,899   4,048   3,581 
Occupancy expense  460   444   550   562   500 
Equipment expense  332   329   307   318   299 
Data processing expense  742   789   781   759   745 
Regulatory assessments  21   76   168   213   251 
Bank shares tax  205   277   278   (131)  278 
Professional fees  189   203   332   295   241 
Insurance expense  128   120   126   117   130 
Other operating expenses  1,341   1,060   984   1,760   1,163 
Total non-interest expense  7,329   7,122   7,425   7,941   7,188 
Income before income taxes  2,916   3,063   3,190   8,817   2,238 
Income tax expense  513   514   555   1,749   388 
Net income  $2,403  $2,549  $2,635  $7,068  $1,850 
                     
Income per share                    
Basic $0.12  $0.13  $0.14  $0.42  $0.11 
Diluted $0.12  $0.13  $0.14  $0.42  $0.11 
                     
Cash dividends declared per common share  $0.05  $0.05  $0.05  $0.05  $0.04 
Weighted average number of shares outstanding:                    
Basic  20,168,529   20,129,150   18,720,502   16,820,337   16,818,625 
Diluted  20,172,282   20,133,850   18,733,652   16,840,933   16,838,547 


 
FNCB Bancorp, Inc. 
Consolidated Balance Sheets
 
  Sept 30,  Jun 30,  Mar 31,  Dec 31,  Sept 30, 
(in thousands) 2019  2019  2019  2018  2018 
Assets                    
Cash and cash equivalents:                    
Cash and due from banks $30,900  $24,277  $25,683  $26,673  $23,051 
Interest-bearing deposits in other banks  6,611   5,627   7,062   9,808   7,246 
Total cash and cash equivalents  37,511   29,904   32,745   36,481   30,297 
Available-for-sale debt securities, at fair value  254,666   285,855   274,114   296,032   288,780 
Equity securities, at fair value  922   917   904   891   884 
Restricted stock, at cost  4,194   4,618   3,120   3,123   3,333 
Loans held for sale  1,140   419   609   820   938 
Loans, net of net deferred costs and unearned income  836,877   814,420   838,864   839,100   864,316 
Allowance for loan and lease losses  (9,315)  (8,945)  (9,253)  (9,519)  (9,827)
Net loans  827,562   805,475   829,611   829,581   854,489 
Bank premises and equipment, net  17,274   15,923   14,991   14,425   13,895 
Accrued interest receivable  3,038   3,640   3,706   3,614   4,061 
Bank-owned life insurance  31,104   31,275   31,146   31,015   30,873 
Other real estate owned  412   560   919   919   715 
Other assets  19,367   20,208   22,526   20,831   22,857 
Total assets $1,197,190  $1,198,794  $1,214,451  $1,237,732  $1,251,122 
                     
Liabilities                    
Deposits:                    
Demand (non-interest-bearing) $179,025  $157,856  $157,073  $156,600  $166,967 
Interest-bearing  785,035   803,208   883,017   939,029   928,154 
Total deposits  964,060   961,064   1,040,090   1,095,629   1,095,121 
Borrowed funds:                    
Federal Home Loan Bank of Pittsburgh advances  79,458   87,223   28,988   18,930   46,490 
Subordinated debentures  -   -   -   5,000   5,000 
Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
Total borrowed funds  89,768   97,533   39,298   34,240   61,800 
Accrued interest payable  401   389   339   338   318 
Other liabilities  10,394   10,102   10,942   10,306   7,306 
Total liabilities  1,064,623   1,069,088   1,090,669   1,140,513   1,164,545 
                     
Shareholders' equity                    
Preferred stock  -   -   -   -   - 
Common stock  25,211   25,184   25,135   21,026   21,024 
Additional paid-in capital  81,058   80,864   80,827   63,547   63,469 
Retained earnings  21,733   20,345   18,809   17,186   10,965 
Accumulated other comprehensive income (loss)  4,565   3,313   (989)  (4,540)  (8,881)
Total shareholders' equity  132,567   129,706   123,782   97,219   86,577 
    Total liabilities and shareholders’ equity $1,197,190  $1,198,794  $1,214,451  $1,237,732  $1,251,122 


 
FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
 
  Three Months Ended 
  Sept 30,  Jun 30,  Mar 31,  Dec 31,  Sept 30, 
(dollars in thousands) 2019  2019  2019  2018  2018 
Interest income                    
Loans:                    
Loans - taxable $9,170  $9,084  $8,940  $9,090  $9,059 
Loans - tax-free  403   423   591   596   559 
Total loans  9,573   9,507   9,531   9,686   9,618 
Securities:                    
Securities, taxable  1,951   1,927   2,119   2,083   2,138 
Securities, tax-free  47   48   47   48   47 
Total interest and dividends on securities  1,998   1,975   2,166   2,131   2,185 
Interest-bearing deposits in other banks  30   79   46   36   17 
Total interest income  11,601   11,561   11,743   11,853   11,820 
Interest expense                    
Deposits  1,901   2,144   2,238   2,165   1,559 
Borrowed funds  554   364   425   416   879 
Total interest expense  2,455   2,508   2,663   2,581   2,438 
Net interest income $9,146  $9,053  $9,080  $9,272  $9,382 
                     
Average balances                    
Earning assets:                    
Loans:                    
Loans - taxable $781,963  $778,540  $784,359  $796,886  $803,314 
Loans - tax-free  37,638   41,436   59,220   58,722   55,848 
Total loans  819,601   819,976   843,579   855,608   859,162 
Securities:                    
Securities, taxable  266,653   274,552   299,498   299,981   303,037 
Securities, tax-free  4,611   4,624   4,638   4,651   4,664 
Total securities  271,264   279,176   304,136   304,632   307,701 
Interest-bearing deposits in other banks  10,007   14,420   9,495   8,438   3,735 
Total interest-earning assets  1,100,872   1,113,572   1,157,210   1,168,678   1,170,598 
Non-earning assets  90,807   85,429   81,868   72,999   75,518 
Total assets $1,191,679  $1,199,001  $1,239,078  $1,241,677  $1,246,116 
Interest-bearing liabilities:                    
Deposits $794,971  $851,726  $903,542  $926,767  $827,570 
Borrowed funds  85,927   52,313   58,402   62,495   149,682 
Total interest-bearing liabilities  880,898   904,039   961,944   989,262   977,252 
Demand deposits  169,416   158,413   155,122   157,223   173,616 
Other liabilities  10,730   11,698   11,801   8,272   7,983 
Shareholders' equity  130,635   124,851   110,211   86,920   87,265 
Total liabilities and shareholders' equity $1,191,679  $1,199,001  $1,239,078  $1,241,677  $1,246,116 
                     
Yield/Cost                    
Earning assets:                    
Loans:                    
Interest and fees on loans - taxable  4.69%  4.67%  4.56%  4.56%  4.51%
Interest and fees on loans - tax-free  4.28%  4.08%  3.99%  4.06%  4.01%
Total loans  4.67%  4.64%  4.52%  4.53%  4.48%
Securities:                    
Securities, taxable  2.93%  2.81%  2.83%  2.78%  2.82%
Securities, tax-free  4.08%  4.15%  4.05%  4.13%  4.03%
Total securities  2.95%  2.83%  2.85%  2.80%  2.84%
Interest-bearing deposits in other banks  1.20%  2.19%  1.94%  1.71%  1.82%
Total earning assets  4.22%  4.15%  4.06%  4.06%  4.04%
Interest-bearing liabilities:                    
Interest on deposits  0.96%  1.01%  0.99%  0.93%  0.75%
Interest on borrowed funds  2.58%  2.78%  2.91%  2.66%  2.35%
Total interest-bearing liabilities  1.11%  1.11%  1.11%  1.04%  1.00%
Net interest spread  3.11%  3.04%  2.95%  3.02%  3.04%
Net interest margin  3.32%  3.25%  3.14%  3.17%  3.21%


 
FNCB Bancorp, Inc.
Asset Quality Data
 
  Sept 30,  Jun 30,  Mar 31,  Dec 31,  Sept 30, 
(in thousands) 2019  2019  2019  2018  2018 
At period end                    
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $6,119  $5,302  $6,175  $4,696  $4,391 
Loans past due 90 days or more and still accruing  -   -   -   -   - 
Total non-performing loans  6,119   5,302   6,175   4,696   4,391 
Other real estate owned (OREO)  412   560   919   919   715 
Other non-performing assets  1,900   1,900   1,900   1,900   1,900 
Total non-performing assets $8,431  $7,762  $8,994  $7,515  $7,006 
                     
Accruing TDRs $7,828  $7,897  $8,215  $8,457  $8,515 
                     
                     
For the three months ended                    
Allowance for loan and lease losses                    
Beginning balance $8,945  $9,253  $9,519  $9,827  $9,459 
Loans charged-off  417   1,123   454   392   1,037 
Recoveries of charged-off loans  150   468   342   283   256 
Net charge-offs  267   655   112   109   781 
Provision (credit) for loan and lease losses  637   347   (154)  (199)  1,149 
Ending balance $9,315  $8,945  $9,253  $9,519  $9,827 

 

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Source: FNCB Bancorp, Inc.
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