INVESTOR RELATIONS

 

FNCB Bancorp, Inc. Announces First Quarter 2020 Earnings

Company Release - 4/27/2020 8:30 AM ET

DUNMORE, Pa., April 27, 2020 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB; www.fncb.com), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.1 million, or $0.10 per basic and diluted share, for the three months ended March 31, 2020, a decrease of $0.5 million, or 21.7% from $2.6 million, or $0.14 per basic and diluted share, for the comparable period of 2019. Return on average assets and return on average shareholders’ equity were 0.69% and 6.06%, respectively, in 2020, compared to 0.86% and 9.70%, respectively in 2019. The decline in first quarter 2020 earnings was primarily caused by a $1.3 million increase in the provision for loan and lease losses which reflected deteriorating economic conditions brought on by the COVID-19 global pandemic. 

FNCB declared and paid dividends in the first quarter of 2020 of $0.055 per share, an increase of $0.005 per share, or 10.0%, compared to $0.05 per share for the same quarter of 2019. The first quarter 2020 dividend equated to a dividend yield of approximately 3.2% based on the closing stock price of $6.91 per share at March 31, 2020.

First Quarter 2020 Highlights as compared to the First Quarter of 2019:

 Net interest income (FTE) increased $0.2 million, or 2.5%;
 Yield on earnings assets (FTE) decreased 1 basis point to 4.05% in 2020 from 4.06% in 2019;
 Cost of funds decreased 22 basis points to 0.89% in 2020 from 1.11% in 2019; 
 Net interest margin (FTE) improved 21 basis points to 3.35% in 2020, compared to 3.14% in 2019;
 Non-interest income increased $0.2 million, or 11.8%;
 Non-interest expense decreased $0.2 million, or 3.0%;
 Efficiency ratio improved to 66.46% in 2020 compared to 71.24% in 2019; and
 Total capital increased $14.1 million, or 11.4% to $137.9 million from $123.8 million comparing March 31, 2020 and 2019, respectively.

CEO Commentary and FNCB's Response to COVID-19

"In 2020, we are celebrating the 110th anniversary of our wholly-owned subsidiary, FNCB Bank as a community bank," announced Gerard A. Champi, FNCB's President and Chief Executive Officer. "Our celebration, however, has been tempered by the recent outbreak of COVID-19. We would like to extend our sympathies to the families of those lost to COVID-19 and our sincere gratitude and appreciation to all those working in healthcare and essential locations who are fighting this disease head on. Additionally, I would like to thank all the members of our FNCB team who are dedicated to helping our customers and communities navigate through the challenges of this difficult time. 

The health and safety of our employees and customers has been at the forefront since the beginning of this crisis. To address the financial needs of our community in a safe and consistent manner, our offices remain open for regular business via our drive-thru facilities, call center and online and mobile banking applications. We are also a member of the AllPoint® ATM Network, giving our customers access to over 55,000 surcharge-free ATMs. For customers needing in-person service, we are offering a by-appointment option while adhering to social distancing mandates. We also quickly adapted and took measures to ensure the safety of our staff by practicing social distancing, eliminating travel and in-person meetings and have provided the technology so the majority of our operational staff can work remotely. As an additional customer resource, we have included a COVID-19 information page on our website, www.fncb.com/covid19help, that includes general information about FNCB's response to the pandemic, assistance that is available and an information section to help customers avoid virus-related scams.

In the early stage of the crisis, we proactively conducted a bank-wide outreach effort. Our community office managers and personal bankers personally called their customers to discuss any concerns and to let them know we are here to help them in any way we can. We continue to reach out to our customers and strongly encourage them to call for assistance.

To provide financial stability for both our personal and business customers that are facing unemployment, temporary furloughs and closures, we quickly rolled out a payment deferral program providing for either a three-month interest-only period or full payment deferral for three months. As of April 22, 2020, we assisted 695 customers under our payment deferral program, with the total principal balance of loans modified of $137.5 million. We also developed a special "Personal Relief Loan," an unsecured, 36-month, low-interest loan up to $5,000 for individuals financially impacted by COVID-19 due to temporary loss of employment. Additionally, in light of our mission to be a simply better bank for our community, we suspended all repossession and foreclosure activity and have suspended certain deposit service charges related to debit card usage.

The CARES Act stimulus package passed by Congress included Small Business Administration (SBA) lending programs that offered relief for small businesses. Part of the package included the Paycheck Protection Program (PPP), an initiative that provides 100% federally guaranteed loans to small businesses. As an SBA Lender, FNCB Bank is actively participating in PPP loans, assisting our small business community through this crisis. On April 16, 2020, when the SBA announced funding had been exhausted, we were able to serve 379 small businesses with loans totaling $88.1 million.

We anticipate the COVID-19 pandemic will impact our business in future periods. As we do not yet know the length and severity of the economic downturn, we cannot determine or estimate the magnitude of the impact at this time. We will continue to work diligently to address these and any other issues that arise due to the COVID-19 pandemic. We believe that the steps we took in 2019 to strengthen our balance sheet and capital position will allow us to withstand the challenges that may be presented. We are committed to continuing to serve the needs of our customers, employees and communities and stand ready to work together to get through this uncertain time," Champi concluded.

The following are examples of ways in which FNCB's business may be affected, among others:

 Significantly lower market interest rates may have a negative impact on FNCB's loan yields as variable-rate loans and securities indexed to prime and LIBOR will reprice downward;
 Non-interest income could decrease because of waived service charges and loan fees;
 Point-of-sale fee income may decline due to a decrease in debit card spending due to the "Stay at Home" requirements;
 Non-interest expense could increase as a result of additional cleaning costs, supplies, equipment and other items needed to address the effects of COVID-19;
 Additional loan modifications may occur and borrowers may default on their loans, which may result in additional credit-related provisioning; 
 Sustained contraction in economic activity may result in reduced demand for our products and services; and
 Continued stock market volatility could cause the price of our common stock to fluctuate, including for reasons unrelated to our performance.

Summary Results 

Tax-equivalent net interest income for the first quarter of 2020 increased $0.2 million, or 2.5% to $9.3 million compared to $9.1 million for the same period of 2019. Additionally, FNCB’s tax-equivalent net interest margin improved 21 basis points to 3.35% for the three months ended March 31, 2020 from 3.14% for the same period of 2019. The year over year improvement in both tax-equivalent net interest income and the net interest margin primarily reflected a 22 basis-point decrease in FNCB's cost of funds to 0.89% for the first quarter of 2020 from 1.11% for the same quarter of 2019. The decrease in the cost of funds was due primarily to a 92 basis-point reduction in the cost of borrowed funds, coupled with an 18 basis-point decrease in the cost of interest-bearing deposits, both of which largely reflected the effect of lower short-term interest rates.  Tax-equivalent net interest income also benefited from a $78.9 million, or 8.2%, reduction in average interest-bearing liabilities, which was partially offset by a  $43.9 million, or 3.8%, decrease in average earning assets and a 1 basis point reduction in the tax-equivalent earning-asset yield.

On a linked quarter basis, the tax-equivalent net interest margin contracted 3 basis points from 3.38% for the fourth quarter of 2019, which was primarily due to an 11 basis point decrease in the tax-equivalent yield on earning assets to 4.05% for the first quarter of 2020 from 4.16% for the fourth quarter of 2019. Partially offsetting the decline in yield was a 9 basis point reduction in the cost of funds from 0.98% for the three months ended December 31, 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 2020 and 2019.

For the quarter ended March 31, 2020, non-interest income amounted to $1.7 million, an increase of $179 thousand, or 11.8%, compared to $1.5 million for the same period of 2019.  The positive change in non-interest income was primarily due to a $140 thousand, or 20.4% increase in deposit service charges. In the second half of 2019, FNCB engaged an independent third-party to conduct a comprehensive evaluation of FNCB's non-interest revenue streams and fee structure to identify opportunities for enhancement. Recommendations to FNCB's fee structure arising from the assessment were fully implemented prior to the beginning of 2020, driving the increase in deposit service charges. Also favorably impacting non-interest income were increases in net gains on the sale of residential mortgage loans and income from merchant services. These increases were partially offset by reductions in net gains on the sale of available-for-sale debt securities and loan-related fees.  

For the three months ended March 31, 2020, non-interest expense decreased $220 thousand, or 3.0%, to $7.2 million from $7.4 million for the comparable three months of 2019. The decrease primarily reflected decreases in professional fees, regulatory assessments and data processing costs, partially offset by increases in occupancy expense and salaries and employee benefit costs. 

The increases in net interest income and non-interest income, coupled with the reduction in non-interest expense, resulted in an improvement in FNCB's efficiency ratio year over year to 66.46% for the first quarter of 2020 from 71.24% for the same quarter of 2019.  

Asset Quality

Total non-performing loans were $8.6 million, or 1.03% of total loans, at March 31, 2020, an increase of $2.4 million, or 38.9%, compared to $6.2 million, or 0.74% of total loans, at March 31, 2019. However, on a linked quarter basis, non-performing loans decreased $0.5 million, or 5.6%, from $9.1 million, or 1.10% of total loans, at December 31, 2019. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 1.41% at March 31, 2020 compared to 1.46% at December 31, 2019 and 1.28% at March 31, 2019. Annualized net loans charged off, as a percentage of average loans, was 0.09% for the three months ended March 31, 2020 compared to 0.05% for the same period of 2019. The provision for loan and lease losses totaled $1.2 million for the first quarter of 2020, an increase of $1.3 million as compared to a release of reserves of $0.1 million for the same period of 2019. The allowance for loan and lease losses was $9.9 million, or 1.19% of total loans at March 31, 2020, compared to $8.9 million, or 1.08% of total loans at December 31, 2019 and $9.3 million, or 1.10% at March 31, 2019. The increase in credit provisioning in the first quarter of 2020 was primarily related to economic disruption and uncertainty caused by the COVID-19 pandemic.

Financial Condition

Total assets increased $44.7 million, or 3.7%, to $1.248 billion at March 31, 2020 from $1.203 billion at December 31, 2019. The change in the balance sheet primarily reflected increases 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 increased $29.8 million, or 10.9%, to $302.6 million at March 31, 2020 from $272.8 million at December 31, 2019. Loans, net of net deferred loan costs and unearned income, increased $6.5 million, or 0.8%, to $834.9 million at March 31, 2020 from $828.5 million at December 31, 2019, which primarily reflected strong demand for commercial and industrial loans and an increase in loans to state and political subdivisions, partially offset by a reduction in consumer loans due to runoff of indirect automobile loans. Cash and cash equivalents were $45.5 million at March 31, 2020, an increase of $11.0 million, or 31.8%, compared to $34.6 million at December 31, 2019. Total deposits were relatively stable and equaled $1.002 billion at March 31, 2020 and December 31, 2019. Interest-bearing deposits decreased $1.9 million, or 0.2%, to $820.3 million at March 31, 2020 from $822.2 million at December 31, 2019. Partially offsetting the reduction in interest-bearing deposits was a $1.8 million, or 1.0%, increase in non-interest-bearing demand deposits to $181.2 million at March 31, 2020 from $179.5 million at December 31, 2019. Total borrowed funds increased $41.0 million to $98.2 million at March 31, 2020 from $57.2 million at December 31, 2019. 

Total shareholders’ equity increased $4.3 million, or 3.2%, to $137.9 million at March 31, 2020 from $133.6 million at December 31, 2019.  Factoring into the capital improvement was first quarter 2020 net income of $2.1 million and a $3.3 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 $1.1 million. On a linked quarter basis, FNCB's tangible book value improved $0.22, or 3.3%, to $6.84 per share at March 31, 2020 from $6.62 per share at December 31, 2019, and $0.68 per share, or 11.0%, year over year from $6.16 per share at March 31, 2019. FNCB Bank’s total risk-based capital and Tier I leverage ratios improved to 15.44% and 11.09%, respectively, at March 31, 2020 compared to 14.77% and 10.36%, respectively, at December 31, 2019.

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 110 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 outbreak of a highly infectious or contagious disease, such as COVID-19; 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, 2019.


FNCB Bancorp, Inc.
Selected Financial Data


  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
  2020  2019  2019  2019  2019 
Per share data:                    
Net income (fully diluted) $0.10  $0.17  $0.12  $0.13  $0.14 
Cash dividends declared $0.055  $0.050  $0.050  $0.050  $0.050 
Book value $6.84  $6.62  $6.57  $6.44  $6.16 
Tangible book value $6.84  $6.62  $6.57  $6.44  $6.16 
Market value:                    
High $8.54  $8.86  $9.41  $8.12  $10.68 
Low $5.10  $7.03  $7.03  $7.16  $7.14 
Close $6.91  $8.45  $7.81  $7.74  $7.70 
Common shares outstanding  20,174,250   20,171,408   20,169,492   20,148,017   20,108,560 
                     
Selected ratios:                    
Annualized return on average assets  0.69%  1.15%  0.80%  0.85%  0.86%
Annualized return on average shareholders' equity  6.06%  10.43%  7.30%  8.19%  9.70%
Efficiency ratio  66.46%  67.35%  69.20%  68.12%  71.24%
Tier I leverage ratio (FNCB Bank)  11.09%  10.36%  11.01%  10.69%  10.07%
Total risk-based capital to risk-adjusted assets (FNCB Bank)  15.44%  14.77%  15.37%  15.25%  14.49%
Average shareholders' equity to average total assets  11.37%  11.01%  10.96%  10.41%  8.89%
Yield on earning assets (FTE)  4.05%  4.16%  4.22%  4.15%  4.06%
Cost of funds  0.89%  0.98%  1.11%  1.11%  1.11%
Net interest spread (FTE)  3.16%  3.18%  3.11%  3.04%  2.95%
Net interest margin (FTE)  3.35%  3.38%  3.32%  3.25%  3.14%
Total delinquent loans/total loans  1.41%  1.46%  1.16%  0.99%  1.28%
Allowance for loan and lease losses/total loans  1.19%  1.08%  1.11%  1.10%  1.10%
Non-performing loans/total loans  1.03%  1.10%  0.73%  0.65%  0.74%
Annualized net charge-offs/average loans  0.09%  0.16%  0.13%  0.32%  0.05%


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


  Three Months Ended 
  March 31, 
(in thousands, except share data) 2020  2019 
Interest income        
Interest and fees on loans $9,139  $9,407 
Interest and dividends on securities        
U.S. government agencies  750   893 
State and political subdivisions, tax-free  57   37 
State and political subdivisions, taxable  765   1,021 
Other securities  412   205 
Total interest and dividends on securities  1,984   2,156 
Interest on interest-bearing deposits in other banks  21   46 
Total interest income  11,144   11,609 
Interest expense        
Interest on deposits  1,660   2,238 
Interest on borrowed funds        
Interest on Federal Reserve Bank discount window advances  -   - 
Interest on Federal Home Loan Bank of Pittsburgh advances  219   287 
Interest on subordinated debentures  -   24 
Interest on junior subordinated debentures  88   114 
Total interest on borrowed funds  307   425 
Total interest expense  1,967   2,663 
Net interest income before provision (credit) for loan and lease losses  9,177   8,946 
Provision (credit) for loan and lease losses  1,151   (154)
Net interest income after provision (credit) for loan and lease losses  8,026   9,100 
Non-interest income        
Deposit service charges  825   685 
Net gain on the sale of securities  149   160 
Net gain on equity securities  14   12 
Net gain on the sale of mortgage loans held for sale  96   56 
Loan-related fees  56   79 
Income from bank-owned life insurance  129   131 
Merchant services revenue  135   118 
Loan referral fees  42   - 
Other  248   274 
Total non-interest income  1,694   1,515 
Non-interest expense        
Salaries and employee benefits  3,929   3,899 
Occupancy expense  554   550 
Equipment expense  371   307 
Data processing expense  725   781 
Regulatory assessments  59   168 
Bank shares tax  300   278 
Professional fees  188   332 
Other operating expenses  1,079   1,110 
Total non-interest expense  7,205   7,425 
Income before income taxes  2,515   3,190 
Income tax expense  452   555 
Net income $2,063  $2,635 
         
Income per share        
Basic $0.10  $0.14 
Diluted $0.10  $0.14 
         
Cash dividends declared per common share $0.055  $0.050 
Weighted average number of shares outstanding:        
Basic  20,172,498   18,720,502 
Diluted  20,176,565   18,733,652 


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


  Three Months Ended 
  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands, except share data) 2020  2019  2019  2019  2019 
Interest income                    
Interest and fees on loans $9,139  $9,505  $9,488  $9,418  $9,407 
Interest and dividends on securities                    
U.S. government agencies  750   822   924   906   893 
State and political subdivisions, tax-free  57   37   37   38   37 
State and political subdivisions, taxable  765   718   713   811   1,021 
Other securities  412   364   314   210   205 
Total interest and dividends on securities  1,984   1,941   1,988   1,965   2,156 
Interest on interest-bearing deposits in other banks  21   33   30   79   46 
Total interest income  11,144   11,479   11,506   11,462   11,609 
Interest expense                    
Interest on deposits  1,660   1,818   1,901   2,144   2,238 
Interest on borrowed funds                    
Interest on Federal Reserve Bank discount window advances  -                 
Interest on Federal Home Loan Bank of Pittsburgh advances  219   253   448   253   287 
Interest on subordinated debentures  -   -   -   -   24 
Interest on junior subordinated debentures  88   99   106   111   114 
Total interest on borrowed funds  307   352   554   364   425 
Total interest expense  1,967   2,170   2,455   2,508   2,663 
Net interest income before provision (credit) for loan and lease losses  9,177   9,309   9,051   8,954   8,946 
Provision (credit) for loan and lease losses  1,151   (33)  637   347   (154)
Net interest income after provision (credit) for loan and lease losses  8,026   9,342   8,414   8,607   9,100 
Non-interest income                    
Deposit service charges  825   832   797   721   685 
Net gain on the sale of securities  149   525   379   163   160 
Net gain (loss) on equity securities  14   (2)  5   14   12 
Net gain on the sale of mortgage loans held for sale  96   55   69   73   56 
Net gain on the sale of other real estate owned  -   -   11   9   - 
Loan-related fees  56   147   80   72   79 
Income from bank-owned life insurance  129   126   134   129   131 
Merchant services revenue  135   145   142   131   118 
Loan referral fees  42   670   33   -   - 
Other  248   198   181   266   274 
Total non-interest income  1,694   2,696   1,831   1,578   1,515 
Non-interest expense                    
Salaries and employee benefits  3,929   3,884   3,911   3,824   3,899 
Occupancy expense  554   494   460   444   550 
Equipment expense  371   351   332   329   307 
Data processing expense  725   801   742   789   781 
Regulatory assessments  59   41   21   76   168 
Bank shares tax  300   (194)  205   277   278 
Professional fees  188   332   189   203   332 
Other operating expenses  1,079   2,097   1,469   1,180   1,110 
Total non-interest expense  7,205   7,806   7,329   7,122   7,425 
Income before income taxes  2,515   4,232   2,916   3,063   3,190 
Income tax expense  452   744   513   514   555 
Net income $2,063  $3,488  $2,403  $2,549  $2,635 
                     
Income per share                    
Basic $0.10  $0.17  $0.12  $0.13  $0.14 
Diluted $0.10  $0.17  $0.12  $0.13  $0.14 
                     
Cash dividends declared per common share $0.055  $0.050  $0.050  $0.050  $0.050 
Weighted average number of shares outstanding:                    
Basic  20,172,498   20,170,241   20,168,529   20,129,150   18,720,502 
Diluted  20,176,565   20,175,758   20,172,282   20,133,850   18,733,652 


FNCB Bancorp, Inc.
Consolidated Balance Sheets


  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands) 2020  2019  2019  2019  2019 
Assets                    
Cash and cash equivalents:                    
Cash and due from banks $15,243  $22,861  $30,900  $24,277  $25,683 
Interest-bearing deposits in other banks  30,304   11,704   6,611   5,627   7,062 
Total cash and cash equivalents  45,547   34,565   37,511   29,904   32,745 
Available-for-sale debt securities, at fair value  302,638   272,839   254,666   285,855   274,114 
Equity securities, at fair value  934   920   922   917   904 
Restricted stock, at cost  4,224   3,804   4,194   4,618   3,120 
Loans held for sale  470   1,061   1,140   419   609 
Loans, net of net deferred costs and unearned income  834,935   828,479   836,877   814,420   838,864 
Allowance for loan and lease losses  (9,907)  (8,950)  (9,315)  (8,945)  (9,253)
Net loans  825,028   819,529   827,562   805,475   829,611 
Bank premises and equipment, net  17,447   17,518   17,274   15,923   14,991 
Accrued interest receivable  3,387   3,234   3,038   3,640   3,706 
Bank-owned life insurance  31,359   31,230   31,104   31,275   31,146 
Other real estate owned  86   289   412   560   919 
Other assets  17,112   18,552   19,367   20,208   22,526 
Total assets $1,248,232  $1,203,541  $1,197,190  $1,198,794  $1,214,451 
                     
Liabilities                    
Deposits:                    
Demand (non-interest-bearing) $181,223  $179,465  $179,025  $157,856  $157,073 
Interest-bearing  820,339   822,244   785,035   803,208   883,017 
Total deposits  1,001,562   1,001,709   964,060   961,064   1,040,090 
Borrowed funds:                    
Federal Reserve Bank discount window advances  10,000   -   -   -   - 
Federal Home Loan Bank of Pittsburgh advances  77,934   46,909   79,458   87,223   28,988 
Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
Total borrowed funds  98,244   57,219   89,768   97,533   39,298 
Accrued interest payable  261   258   401   389   339 
Other liabilities  10,233   10,748   10,394   10,102   10,942 
Total liabilities  1,110,300   1,069,934   1,064,623   1,069,088   1,090,669 
                     
Shareholders' equity                    
Preferred stock  -   -   -   -   - 
Common stock  25,217   25,214   25,211   25,184   25,135 
Additional paid-in capital  81,209   81,130   81,058   80,864   80,827 
Retained earnings  25,155   24,207   21,733   20,345   18,809 
Accumulated other comprehensive income (loss)  6,351   3,056   4,565   3,313   (989)
Total shareholders' equity  137,932   133,607   132,567   129,706   123,782 
Total liabilities and shareholders’ equity $1,248,232  $1,203,541  $1,197,190  $1,198,794  $1,214,451 


FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income


  Three Months Ended 
  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(dollars in thousands) 2020  2019  2019  2019  2019 
Interest income                    
Loans:                    
Loans - taxable $8,693  $9,138  $9,170  $9,084  $8,940 
Loans - tax-free  565   464   403   423   591 
Total loans  9,258   9,602   9,573   9,507   9,531 
Securities:                    
Securities, taxable  1,927   1,904   1,951   1,927   2,119 
Securities, tax-free  72   47   47   48   47 
Total interest and dividends on securities  1,999   1,951   1,998   1,975   2,166 
Interest-bearing deposits in other banks  21   33   30   79   46 
Total interest income  11,278   11,586   11,601   11,561   11,743 
Interest expense                    
Deposits  1,660   1,818   1,901   2,144   2,238 
Borrowed funds  307   352   554   364   425 
Total interest expense  1,967   2,170   2,455   2,508   2,663 
Net interest income $9,311  $9,416  $9,146  $9,053  $9,080 
                     
Average balances                    
Earning assets:                    
Loans:                    
Loans - taxable $780,855  $791,577  $781,963  $778,540  $784,359 
Loans - tax-free  52,615   42,954   37,638   41,436   59,220 
Total loans  833,470   834,531   819,601   819,976   843,579 
Securities:                    
Securities, taxable  263,697   258,790   266,653   274,552   299,498 
Securities, tax-free  7,698   4,598   4,611   4,624   4,638 
Total securities  271,395   263,388   271,264   279,176   304,136 
Interest-bearing deposits in other banks  8,396   16,841   10,007   14,420   9,495 
Total interest-earning assets  1,113,261   1,114,760   1,100,872   1,113,572   1,157,210 
Non-earning assets  90,387   90,245   90,807   85,429   81,868 
Total assets $1,203,648  $1,205,005  $1,191,679  $1,199,001  $1,239,078 
Interest-bearing liabilities:                    
Deposits $821,216  $830,318  $794,971  $851,726  $903,542 
Borrowed funds  61,843   57,682   85,927   52,313   58,402 
Total interest-bearing liabilities  883,059   888,000   880,898   904,039   961,944 
Demand deposits  172,132   172,935   169,416   158,413   155,122 
Other liabilities  11,636   11,361   10,730   11,698   11,801 
Shareholders' equity  136,821   132,709   130,635   124,851   110,211 
Total liabilities and shareholders' equity $1,203,648  $1,205,005  $1,191,679  $1,199,001  $1,239,078 
                     
Yield/Cost                    
Earning assets:                    
Loans:                    
Interest and fees on loans - taxable  4.45%  4.62%  4.69%  4.67%  4.56%
Interest and fees on loans - tax-free  4.29%  4.32%  4.28%  4.08%  3.99%
Total loans  4.44%  4.60%  4.67%  4.64%  4.52%
Securities:                    
Securities, taxable  2.92%  2.94%  2.93%  2.81%  2.83%
Securities, tax-free  3.74%  4.09%  4.08%  4.15%  4.05%
Total securities  2.95%  2.96%  2.95%  2.83%  2.85%
Interest-bearing deposits in other banks  1.00%  0.78%  1.20%  2.19%  1.94%
Total earning assets  4.05%  4.16%  4.22%  4.15%  4.06%
Interest-bearing liabilities:                    
Interest on deposits  0.81%  0.88%  0.96%  1.01%  0.99%
Interest on borrowed funds  1.99%  2.44%  2.58%  2.78%  2.91%
Total interest-bearing liabilities  0.89%  0.98%  1.11%  1.11%  1.11%
Net interest spread  3.16%  3.18%  3.11%  3.04%  2.95%
Net interest margin  3.35%  3.38%  3.32%  3.25%  3.14%


FNCB Bancorp, Inc.
Asset Quality Data


  Mar 31,  Dec 31,  Sept 30,  Jun 30,  Mar 31, 
(in thousands) 2020  2019  2019  2019  2019 
At period end                    
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $8,576  $9,084  $6,119  $5,302  $6,175 
Loans past due 90 days or more and still accruing  -   -   -   -   - 
Total non-performing loans  8,576   9,084   6,119   5,302   6,175 
Other real estate owned (OREO)  86   289   412   560   919 
Other non-performing assets  1,900   1,900   1,900   1,900   1,900 
Total non-performing assets $10,562  $11,273  $8,431  $7,762  $8,994 
                     
Accruing TDRs $7,729  $7,745  $7,828  $7,897  $8,215 
                     
                     
For the three months ended                    
Allowance for loan and lease losses                    
Beginning balance $8,950  $9,315  $8,945  $9,253  $9,519 
Loans charged-off  328   620   417   1,123   454 
Recoveries of charged-off loans  134   288   150   468   342 
Net charge-offs  194   332   267   655   112 
Provision (credit) for loan and lease losses  1,151   (33)  637   347   (154)
Ending balance $9,907  $8,950  $9,315  $8,945  $9,253 

 

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Source: FNCB Bancorp, Inc.
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