INVESTOR RELATIONS

 

FNCB Bancorp, Inc. Announces 2019 Earnings

Company Release - 1/24/2020 4:05 PM ET

DUNMORE, Pa., Jan. 24, 2020 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income for 2019 of $11.1 million, or $0.56 per basic and diluted share, compared to net income of $13.3 million, or $0.79 per basic and diluted share, for 2018. The $2.3 million, or 17.0%, earnings reduction was largely due to a $4.2 million decrease in non-interest revenue, partially offset by decreases in the provision for loan and lease losses and income tax expense of $1.8 million and $0.7 million, respectively. Net income for the fourth quarter of 2019 was $3.5 million, a decrease of $3.6 million, or 50.7%, compared to $7.1 million for the same quarter of 2018, which primarily reflected a $4.7 million decrease in non-interest income, partially offset by a $1.0 million decrease in income tax expense. Included in non-interest income for the three months and year ended December 31, 2018 was $6.0 million in non-recurring income related to an insurance recovery.

Return on average assets and return on average shareholders’ equity were 0.92% and 8.88%, respectively, in 2019, compared to 1.09% and 15.38%, respectively in 2018. For the three months ended December 31, 2019, annualized return on average assets and annualized return on average shareholders’ equity were 1.15% and 10.43%, respectively. Comparatively, annualized return on average assets was 2.26% and annualized return on average shareholders’ equity was 32.26% for the three months ended December 31, 2018.

Dividends declared and paid in 2019 totaled $0.20 per share, an increase of $0.03 per share, or 17.6%, compared to $0.17 per share for 2018. Total dividends declared and paid for 2019 equated to a dividend yield of approximately 2.37% based on the closing stock price of $8.45 per share at December 31, 2019.

2019 Highlights:

  • Successfully completed a $23.0 million common stock offering in the first quarter of 2019;  
  • Joined the Russell 3000® Index effective July 1, 2019;  
  • Celebrated the grand opening of FNCB Bank's 17th community office located in Mountain Top, Luzerne County, Pennsylvania in the second quarter of 2019;   
  • Completed the relocation and new construction of FNCB Bank's Main Office to a brand new, state-of-the-art facility with a grand re-opening in the fourth quarter of 2019;  
  • Total risk-based capital and Tier I Leverage ratios improved to 16.11% and 11.37% at December 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;  
  • Yield on earning assets (FTE) for the fourth quarter increased 10 basis points year over year to 4.16% in 2019 compared to 4.06% in 2018;
  • Cost of funds for the fourth quarter of 2019 decreased 6 basis points to 0.98% from 1.04% for the fourth quarter of 2018;
  • Net interest margin (FTE) improved 21 basis points to 3.38% from 3.17% comparing the fourth quarters for 2019 and 2018, respectively; and    
  • Dividend payout ratio reached 36.4% in 2019.

“2019 was a successful year for our Company, and we would like to thank our entire FNCB team for all their hard work," stated Gerard A. Champi, President and Chief Executive Officer. "We were able to take advantage of changes in market conditions to re-position and create efficiency within our balance sheet by trading off lower-yielding assets for higher-yielding, higher-quality earning assets, while reducing our reliance on more expensive wholesale funding. This strategy has translated into consistent increases in earning asset yields, reductions in funding costs and improvement in our net interest margin throughout 2019," continued Champi. "We believe we are well-positioned to continue to create value within our franchise as we move forward into 2020," Champi concluded.  

Summary Results 

For the three months ended December 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.6% to $9.4 million from $9.3 million for the same three months of 2018. Additionally, FNCB’s tax-equivalent net interest margin for the fourth quarter of 2019 improved 21 basis points to 3.38% compared to 3.17% for the same quarter of 2018. The margin improvement primarily reflected an increase in the tax-equivalent yield on average earning assets of 10 basis points to 4.16% for the fourth quarter of 2019 from 4.06% for the same quarter of 2018, coupled with a 6 basis-point decrease in the cost of funds to 0.98% for the three months ended December 31, 2019 from 1.04% for the same three months of 2018. For the year ended December 31, 2019, tax-equivalent net interest income decreased $0.3 million, or 0.8%, to $36.7 million compared to $37.0 million for the year ended December 31, 2018. The modest decrease in net interest income for the year-to-date period was largely due to higher funding costs, partially offset by an increase in the tax-equivalent yield on average earning assets. For the year ended December 31, 2019, the cost of funds increased 18 basis points to 1.08% from 0.90% for the year ended December 31, 2018. Conversely, the tax-equivalent earning-asset yields improved 18 basis points to 4.15% in 2019 compared to 3.97% in 2018. The tax-equivalent net interest margin improved 5 basis points to 3.27% in 2019 from 3.22% in 2018. Additionally, the net interest margin for the fourth quarter of 2019 improved 6 basis points to 3.38% from 3.32% for the third 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 2019 and 2018.

For the quarter ended December 31, 2019, non-interest income amounted to $2.7 million, a decrease of $4.7 million, or 63.7%, compared to $7.4 million for the same period of 2018. Non-interest income totaled $7.6 million for the year ended December 31, 2019, a decrease of $4.2 million, or 35.4%, compared to $11.8 million for the year ended December 31, 2018. The decrease in non-interest income for the fourth quarter and year-to-date periods was primarily due to an insurance recovery, net of related expenses, of $6.0 million received in the fourth quarter of 2018. Included in non-interest income for the three months and year ended December 31, 2019 were net gains on the sale of available-for-sale securities of $0.5 million and $1.2 million, respectively. Comparatively, there were no net gains on the sale of available-for-sale securities for the three months ended December 31, 2018. For the year ended December 31, 2018, FNCB realized net losses on the sale of available-for-sale securities of $4 thousand.

For the three months ended December 31, 2019, non-interest expense decreased by $0.1 million, or 1.7%, to $7.8 million from $7.9 million for the comparable three months of 2018. Non-interest expense for all of 2019 totaled $29.7 million, an increase of $0.4 million, or 1.2%, from $29.3 million for 2018. The increase in non-interest expense resulted largely from higher salaries and employee benefits expense related to staffing additions and annual merit increases, coupled with higher data processing costs and other expenses, which were partially offset by decreases in regulatory assessments, other losses and bank shares tax. 

Asset Quality

Total non-performing loans increased $4.4 million to $9.1 million, or 1.10% of total loans, at December 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 1.46% at December 31, 2019 compared to 0.93% at the end of 2018. The increase in non-performing loans and loan delinquencies primarily reflected several large commercial relationships that were placed on non-accrual status during 2019. The net loans charged off, as a percentage of average loans, was 0.16% for 2019 compared to 0.25% for 2018. The allowance for loan and lease losses as a percentage of gross loans was 1.08% and 1.13% at December 31, 2019 and 2018, respectively.

Financial Condition

Total assets decreased $34.2 million, or 2.8%, to $1.204 billion at December 31, 2019, from $1.238 billion at December 31, 2018.  The change in the balance sheet primarily reflected decreases in available-for-sale debt securities, loans, net of net deferred loan costs and unearned income, and cash and cash equivalents. Available-for-sale debt securities decreased $23.2 million, or 7.8%, to $272.8 million at December 31, 2019 from $296.0 million at December 31, 2018. Proceeds from the sale of available-for-sale debt securities, not re-invested back into the portfolio, were used to supplement deposit gathering. Loans, net of net deferred loan costs and unearned income, contracted $10.6 million, or 1.3%, to $828.5 million at December 31, 2019, from $839.1 million at December 31, 2018, which primarily reflected a planned reduction in the indirect automobile loan portfolio. Total deposits decreased $93.9 million, or 8.6%, to $1.002 billion at December 31, 2019 from $1.096 billion at December 31, 2018. Interest-bearing deposits decreased $116.8 million, or 12.4%, to $822.2 million at December 31, 2019 from $939.0 million at December 31, 2018, which largely reflected a $75.8 million reduction in wholesale time deposits and the runoff of retail certificates of deposit. Partially offsetting the reduction in interest-bearing deposits was a $22.9 million, or 14.6%, increase in non-interest-bearing demand deposits to $179.5 million at December 31, 2019 from $156.6 million at December 31, 2018. Total borrowed funds increased $23.0 million to $57.2 million at December 31, 2019 from $34.2 million at December 31, 2018. 

Total shareholders’ equity increased $36.4 million, or 37.4%, to $133.6 million at December 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 in the first quarter of 2019. Also factoring into the capital improvement was net income for 2019 of $11.1 million and a $7.6 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 $4.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 16.11% and 11.37%, respectively, at December 31, 2019 compared to 12.69% and 8.50%, respectively, at December 31, 2018. Additionally, tangible book value improved $0.84, or 14.5%, to $6.62 per share at December 31, 2019 from $5.78 per share 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 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
                
  Dec 31,  Sept 30,  Jun 30,  Mar 31,  Dec 31, 
  2019  2019  2019  2019  2018 
Per share data:                    
Net income (fully diluted) $0.17  $0.12  $0.13  $0.14  $0.42 
Cash dividends declared $0.05  $0.05  $0.05  $0.05  $0.05 
Book value $6.62  $6.57  $6.44  $6.16  $5.78 
Tangible book value $6.62  $6.57  $6.44  $6.16  $5.78 
Market value:                    
High $8.86  $9.41  $8.12  $10.68  $10.39 
Low $7.03  $7.03  $7.16  $7.14  $8.21 
Close $8.45  $7.81  $7.74  $7.70  $8.44 
Common shares outstanding  20,171,408   20,169,492   20,148,017   20,108,560   16,821,371 
                     
Selected ratios:                    
Annualized return on average assets  1.15%  0.80%  0.85%  0.86%  2.26%
Annualized return on average shareholders' equity  10.43%  7.30%  8.19%  9.70%  32.26%
Efficiency ratio  67.35%  69.20%  68.12%  71.24%  47.59%
Tier I leverage ratio  11.37%  11.27%  11.02%  10.45%  8.50%
Total risk-based capital to risk-adjusted assets  16.11%  15.72%  15.71%  15.06%  12.69%
Average shareholders' equity to average total assets  11.01%  10.96%  10.41%  8.89%  7.00%
Yield on earning assets (FTE)  4.16%  4.22%  4.15%  4.06%  4.06%
Cost of funds  0.98%  1.11%  1.11%  1.11%  1.04%
Net interest spread (FTE)  3.18%  3.11%  3.04%  2.95%  3.02%
Net interest margin (FTE)  3.38%  3.32%  3.25%  3.14%  3.17%
Total delinquent loans/total loans  1.46%  1.16%  0.99%  1.28%  0.93%
Allowance for loan and lease losses/total loans  1.08%  1.11%  1.10%  1.10%  1.13%
Non-performing loans/total loans  1.10%  0.73%  0.65%  0.74%  0.56%
Annualized net charge-offs/average loans  0.16%  0.13%  0.32%  0.05%  0.05%
                     


FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
    
  Year Ended 
  December 31, 
(in thousands, except share data) 2019  2018 
Interest income        
Interest and fees on loans $37,818  $36,381 
Interest and dividends on securities        
U.S. government agencies  3,545   3,565 
State and political subdivisions, tax-free  149   133 
State and political subdivisions, taxable  3,263   4,105 
Other securities  1,093   813 
Total interest and dividends on securities  8,050   8,616 
Interest on interest-bearing deposits in other banks  188   88 
Total interest income  46,056   45,085 
Interest expense        
Interest on deposits  8,101   5,925 
Interest on borrowed funds        
Interest on Federal Home Loan Bank of Pittsburgh advances  1,241   2,025 
Interest on subordinated debentures  24   228 
Interest on junior subordinated debentures  430   400 
Total interest on borrowed funds  1,695   2,653 
Total interest expense  9,796   8,578 
Net interest income before provision for loan and lease losses  36,260   36,507 
Provision for loan and lease losses  797   2,550 
Net interest income after provision for loan and lease losses  35,463   33,957 
Non-interest income        
Deposit service charges  3,035   2,885 
Net gain (loss) on the sale of securities  1,227   (4)
Net gain (loss) on equity securities  29   (27)
Net gain on the sale of mortgage loans held for sale  253   210 
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  378   390 
Income from bank-owned life insurance  520   555 
Insurance recovery  -   6,027 
Other  2,158   1,401 
Total non-interest income  7,620   11,790 
Non-interest expense        
Salaries and employee benefits  15,518   14,780 
Occupancy expense  1,948   2,191 
Equipment expense  1,319   1,254 
Data processing expense  3,113   2,799 
Regulatory assessments  306   861 
Bank shares tax  566   636 
Professional fees  1,056   1,028 
Other operating expenses  5,856   5,778 
Total non-interest expense  29,682   29,327 
Income before income taxes  13,401   16,420 
Income tax expense  2,326   3,071 
Net income $11,075  $13,349 
         
Income per share        
Basic $0.56  $0.79 
Diluted $0.56  $0.79 
         
Cash dividends declared per common share $0.20  $0.17 
Weighted average number of shares outstanding:        
Basic  19,802,095   16,799,004 
Diluted  19,807,592   16,820,753 
         


FNCB Bancorp, Inc. 
Quarter-to-Date Consolidated Statements of Income 
    
  Three Months Ended 
  Dec 31,  Sept 30,  Jun 30,  Mar 31,  Dec 31, 
(in thousands, except share data) 2019  2019  2019  2019  2018 
Interest income                    
Interest and fees on loans $9,505  $9,488  $9,418  $9,407  $9,561 
Interest and dividends on securities                    
U.S. government agencies  822   924   906   893   890 
State and political subdivisions, tax-free  37   37   38   37   38 
State and political subdivisions, taxable  718   713   811   1,021   1,026 
Other securities  364   314   210   205   167 
Total interest and dividends on securities  1,941   1,988   1,965   2,156   2,121 
Interest on interest-bearing deposits in other banks  33   30   79   46   36 
Total interest income  11,479   11,506   11,462   11,609   11,718 
Interest expense                    
Interest on deposits  1,818   1,901   2,144   2,238   2,165 
Interest on borrowed funds                    
Interest on Federal Home Loan Bank of Pittsburgh advances  253   448   253   287   251 
Interest on subordinated debentures  0   0   0   24   57 
Interest on junior subordinated debentures  99   106   111   114   108 
Total interest on borrowed funds  352   554   364   425   416 
Total interest expense  2,170   2,455   2,508   2,663   2,581 
Net interest income before (credit) provision for loan and lease losses  9,309   9,051   8,954   8,946   9,137 
(Credit) Provision for loan and lease losses  (33)  637   347   (154)  (199)
Net interest income after (credit) provision for loan and lease losses  9,342   8,414   8,607   9,100   9,336 
Non-interest income                    
Deposit service charges  832   797   721   685   725 
Net gain on the sale of securities  525   379   163   160   - 
Net (loss) gain on equity securities  (2)  5   14   12   7 
Net gain on the sale of mortgage loans held for sale  55   69   73   56   39 
Net gain on the sale of other real estate owned  -   11   9   -   - 
Loan-related fees  147   80   72   79   145 
Income from bank-owned life insurance  126   134   129   131   142 
Insurance recovery  -   -   -   -   6,027 
Other  1,013   356   397   392   337 
Total non-interest income  2,696   1,831   1,578   1,515   7,422 
Non-interest expense                    
Salaries and employee benefits  3,884   3,911   3,824   3,899   4,048 
Occupancy expense  494   460   444   550   562 
Equipment expense  351   332   329   307   318 
Data processing expense  801   742   789   781   759 
Regulatory assessments  41   21   76   168   213 
Bank shares tax  (194)  205   277   278   (131)
Professional fees  332   189   203   332   295 
Other operating expenses  2,097   1,469   1,180   1,110   1,877 
Total non-interest expense  7,806   7,329   7,122   7,425   7,941 
Income before income taxes  4,232   2,916   3,063   3,190   8,817 
Income tax expense  744   513   514   555   1,749 
Net income $3,488  $2,403  $2,549  $2,635  $7,068 
                     
Income per share                    
Basic $0.17  $0.12  $0.13  $0.14  $0.42 
Diluted $0.17  $0.12  $0.13  $0.14  $0.42 
                     
Cash dividends declared per common share $0.05  $0.05  $0.05  $0.05  $0.05 
Weighted average number of shares outstanding:                    
Basic  20,170,241   20,168,529   20,129,150   18,720,502   16,820,337 
Diluted  20,175,758   20,172,282   20,133,850   18,733,652   16,840,933 
                     


FNCB Bancorp, Inc.
Consolidated Balance Sheets
                
  Dec 31,  Sept 30,  Jun 30,  Mar 31,  Dec 31, 
(in thousands) 2019  2019  2019  2019  2018 
Assets                    
Cash and cash equivalents:                    
Cash and due from banks $22,861  $30,900  $24,277  $25,683  $26,673 
Interest-bearing deposits in other banks  11,704   6,611   5,627   7,062   9,808 
Total cash and cash equivalents  34,565   37,511   29,904   32,745   36,481 
Available-for-sale debt securities, at fair value  272,839   254,666   285,855   274,114   296,032 
Equity securities, at fair value  920   922   917   904   891 
Restricted stock, at cost  3,804   4,194   4,618   3,120   3,123 
Loans held for sale  1,061   1,140   419   609   820 
Loans, net of net deferred costs and unearned income  828,479   836,877   814,420   838,864   839,100 
Allowance for loan and lease losses  (8,950)  (9,315)  (8,945)  (9,253)  (9,519)
Net loans  819,529   827,562   805,475   829,611   829,581 
Bank premises and equipment, net  17,518   17,274   15,923   14,991   14,425 
Accrued interest receivable  3,234   3,038   3,640   3,706   3,614 
Bank-owned life insurance  31,230   31,104   31,275   31,146   31,015 
Other real estate owned  289   412   560   919   919 
Other assets  18,552   19,367   20,208   22,526   20,831 
Total assets $1,203,541  $1,197,190  $1,198,794  $1,214,451  $1,237,732 
                     
Liabilities                    
Deposits:                    
Demand (non-interest-bearing) $179,465  $179,025  $157,856  $157,073  $156,600 
Interest-bearing  822,244   785,035   803,208   883,017   939,029 
Total deposits  1,001,709   964,060   961,064   1,040,090   1,095,629 
Borrowed funds:                    
Federal Home Loan Bank of Pittsburgh advances  46,909   79,458   87,223   28,988   18,930 
Subordinated debentures  -   -   -   -   5,000 
Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
Total borrowed funds  57,219   89,768   97,533   39,298   34,240 
Accrued interest payable  258   401   389   339   338 
Other liabilities  10,748   10,394   10,102   10,942   10,306 
Total liabilities  1,069,934   1,064,623   1,069,088   1,090,669   1,140,513 
                     
Shareholders' equity                    
Preferred stock  -   -   -   -   - 
Common stock  25,214   25,211   25,184   25,135   21,026 
Additional paid-in capital  81,130   81,058   80,864   80,827   63,547 
Retained earnings  24,207   21,733   20,345   18,809   17,186 
Accumulated other comprehensive income (loss)  3,056   4,565   3,313   (989)  (4,540)
Total shareholders' equity  133,607   132,567   129,706   123,782   97,219 
Total liabilities and shareholders’ equity $1,203,541  $1,197,190  $1,198,794  $1,214,451  $1,237,732 
                     


FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
    
  Three Months Ended 
  Dec 31,  Sept 30,  Jun 30,  Mar 31,  Dec 31, 
(dollars in thousands) 2019  2019  2019  2019  2018 
Interest income                    
Loans:                    
Loans - taxable $9,138  $9,170  $9,084  $8,940  $9,090 
Loans - tax-free  464   403   423   591   596 
Total loans  9,602   9,573   9,507   9,531   9,686 
Securities:                    
Securities, taxable  1,904   1,951   1,927   2,119   2,083 
Securities, tax-free  47   47   48   47   48 
Total interest and dividends on securities  1,951   1,998   1,975   2,166   2,131 
Interest-bearing deposits in other banks  33   30   79   46   36 
Total interest income  11,586   11,601   11,561   11,743   11,853 
Interest expense                    
Deposits  1,818   1,901   2,144   2,238   2,165 
Borrowed funds  352   554   364   425   416 
Total interest expense  2,170   2,455   2,508   2,663   2,581 
Net interest income $9,416  $9,146  $9,053  $9,080  $9,272 
                     
Average balances                    
Earning assets:                    
Loans:                    
Loans - taxable $791,577  $781,963  $778,540  $784,359  $796,886 
Loans - tax-free  42,954   37,638   41,436   59,220   58,722 
Total loans  834,531   819,601   819,976   843,579   855,608 
Securities:                    
Securities, taxable  258,790   266,653   274,552   299,498   299,981 
Securities, tax-free  4,598   4,611   4,624   4,638   4,651 
Total securities  263,388   271,264   279,176   304,136   304,632 
Interest-bearing deposits in other banks  16,841   10,007   14,420   9,495   8,438 
Total interest-earning assets  1,114,760   1,100,872   1,113,572   1,157,210   1,168,678 
Non-earning assets  90,245   90,807   85,429   81,868   72,999 
Total assets $1,205,005  $1,191,679  $1,199,001  $1,239,078  $1,241,677 
Interest-bearing liabilities:                    
Deposits $830,318  $794,971  $851,726  $903,542  $926,767 
Borrowed funds  57,682   85,927   52,313   58,402   62,495 
Total interest-bearing liabilities  888,000   880,898   904,039   961,944   989,262 
Demand deposits  172,935   169,416   158,413   155,122   157,223 
Other liabilities  11,361   10,730   11,698   11,801   8,272 
Shareholders' equity  132,709   130,635   124,851   110,211   86,920 
Total liabilities and shareholders' equity $1,205,005  $1,191,679  $1,199,001  $1,239,078  $1,241,677 
                     
Yield/Cost                    
Earning assets:                    
Loans:                    
Interest and fees on loans - taxable  4.62%  4.69%  4.67%  4.56%  4.56%
Interest and fees on loans - tax-free  4.32%  4.28%  4.08%  3.99%  4.06%
Total loans  4.60%  4.67%  4.64%  4.52%  4.53%
Securities:                    
Securities, taxable  2.94%  2.93%  2.81%  2.83%  2.78%
Securities, tax-free  4.09%  4.08%  4.15%  4.05%  4.13%
Total securities  2.96%  2.95%  2.83%  2.85%  2.80%
Interest-bearing deposits in other banks  0.78%  1.20%  2.19%  1.94%  1.71%
Total earning assets  4.16%  4.22%  4.15%  4.06%  4.06%
Interest-bearing liabilities:                    
Interest on deposits  0.88%  0.96%  1.01%  0.99%  0.93%
Interest on borrowed funds  2.44%  2.58%  2.78%  2.91%  2.66%
Total interest-bearing liabilities  0.98%  1.11%  1.11%  1.11%  1.04%
Net interest spread  3.18%  3.11%  3.04%  2.95%  3.02%
Net interest margin  3.38%  3.32%  3.25%  3.14%  3.17%
                     


FNCB Bancorp, Inc.
Asset Quality Data
                
  Dec 31,  Sept 30,  Jun 30,  Mar 31,  Dec 31, 
(in thousands) 2019  2019  2019  2019  2018 
At period end                    
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $9,084  $6,119  $5,302  $6,175  $4,696 
Loans past due 90 days or more and still accruing  -   -   -   -   - 
Total non-performing loans  9,084   6,119   5,302   6,175   4,696 
Other real estate owned (OREO)  289   412   560   919   919 
Other non-performing assets  1,900   1,900   1,900   1,900   1,900 
Total non-performing assets $11,273  $8,431  $7,762  $8,994  $7,515 
                     
Accruing TDRs $7,745  $7,828  $7,897  $8,215  $8,457 
                     
                     
For the three months ended                    
Allowance for loan and lease losses                    
Beginning balance $9,315  $8,945  $9,253  $9,519  $9,827 
Loans charged-off  620   417   1,123   454   392 
Recoveries of charged-off loans  288   150   468   342   283 
Net charge-offs  332   267   655   112   109 
(Credit) Provision for loan and lease losses  (33)  637   347   (154)  (199)
Ending balance $8,950  $9,315  $8,945  $9,253  $9,519 
                     

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Source: FNCB Bancorp, Inc.
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