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FNCB Bancorp, Inc. Reports 2016 Earnings of $6.3 Million

01/26/2017

DUNMORE, Pa., Jan. 26, 2017 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (OTCQX:FNCB) (“FNCB”), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $6.3 million, or $0.38 per basic and diluted share, for the year ended December 31, 2016. Net income for the fourth quarter of 2016 was $1.5 million, or $0.09 per basic and diluted share.

2016 HIGHLIGHTS             

  • FNCB reported net income for the fourth consecutive fiscal year. Cumulative net income for fiscal years 2013 through 2016 totaled $62.0 million.
  • Net interest income increased $3.1 million, or 11.5%, to $30.5 million in 2016 from $27.4 million in 2015.  
  • Total assets increased $104.8 million to $1.2 billion at December 31, 2016 from $1.1 billion at December 31, 2015, an increase of 9.6%.
  • Total deposits increased $193.6 million, or 23.6%, to $1.0 billion at year-end 2016 from $821.5 million at year-end 2015.
  • Non-performing assets decreased $0.5 million, or 7.2%, from $6.9 million at December 31, 2015 to $6.4 million at the close of 2016.
  • FNCB paid $10.9 million deferred interest on subordinated debt in March 2016 and accelerated the payment of $4.0 million in principal on the subordinated debt due September 1, 2017 to December 1, 2016.
  • FNCB resumed quarterly shareholder dividend payments in March 2016, and declared and paid dividends throughout the remainder of 2016.
  • FNCB reinstated its dividend reinvestment and optional cash purchase plans in June 2016.
  • FNCB declared a fourth quarter 2016 dividend of $0.03 per share, an increase of 50.0% compared to the $0.02 per share dividend declared for the third quarter of 2016.
  • FNCB’s tangible book value improved 4.0% to $5.42 per share at December 31, 2016 from $5.21 per share at December 31, 2015.
  • The Bank successfully completed a conversion from a federal charter to a state charter in the second quarter 2016.

“We are pleased with the continued success of our Company in 2016,” stated Gerard A. Champi, President and Chief Executive Officer. “We were able to deliver strong balance sheet growth and solid core-banking performance as evidenced by a double-digit increase in net interest income. We believe that the achievements we’ve made over the past four years have allowed us to create value for our shareholders, including growth in book value and the reinstatement of quarterly dividend payments as well as the dividend reinvestment and optional cash purchase plans,” continued Champi. “We are optimistic as we enter 2017 with the announcement of our planned expansion into the Lehigh Valley marketplace through the opening of a loan production office. We are excited to begin offering FNCB’s community bank brand and commitment to unsurpassed customer service to the Lehigh Valley,” concluded Champi.     

Net income for the year ended December 31, 2015 was $35.8 million, or $2.17 per basic and diluted share. For the fourth quarter of 2015, FNCB recorded net income of $29.2 million, or $1.77, per basic and diluted common share. FNCB’s 2015 earnings performance was significantly impacted by the non-recurring reversal of a deferred tax asset (“DTA”) valuation allowance, which resulted in tax benefits of $27.7 million and $27.8 million in the consolidated statement of income for the fourth quarter and year ended December 31, 2015, respectively.

For the fourth quarter and year ended December 31, 2016, dividends declared and paid were $0.03 and $0.09 per share, respectively. The dividend payout ratio for 2016 was 23.7% and equaled a 1.5% annual return to shareholders based on the closing stock price of $6.05 per share at December 31, 2016. FNCB did not pay any dividends in 2015.

Return on average assets and return on average shareholders’ equity were 0.57% and 6.82%, respectively, in 2016, compared to 3.57% and 63.24%, respectively, in 2015. For the three months ended December 31, 2016, return on average assets and return on average shareholders’ equity were 0.55% and 6.43%, respectively, compared to 10.99% and 192.68%, respectively, for the same three months of 2015.  Return on average assets and return on average shareholders’ equity for the fourth quarter and fiscal year ended December 31, 2015 were significantly impacted by the non-recurring $27.8 million tax benefit detailed above.

Summary Results for 2016

Net interest income before the credit for loan and lease losses increased $3.2 million, or 11.5%, to $30.6 million in 2016 from $27.4 million in 2015. The improvement in net interest income reflected a $2.5 million increase in interest income, coupled with a $0.6 million, or 12.6%, reduction in interest expense, in 2016 compared to 2015. The 7.9% increase in interest income in 2016 was largely due to an increase in average earning assets of $58.4 million, or 6.2%, to $1.0 billion in 2016 from $942.1 million in 2015. Specifically, average loans increased $35.0 million, or 5.0%, to $731.6 million in 2016 from $696.6 million in 2015, while average investment securities increased $34.4 million, or 15.1%, to $261.8 million in 2016 from $227.4 million in 2015. The 12.6% reduction in interest expense was due primarily to an 11 basis point reduction in FNCB’s cost of funds to 0.50% in 2016 from 0.61% in 2015.  In 2016, FNCB realized a full year of the effect of its $11.0 million principal payment and a 450 basis point rate modification of its subordinated debentures, which was completed on June 30, 2015. As a result, interest expense on its subordinated debentures decreased $0.8 million, or 56.9%, in 2016 as compared to 2015. Overall, the average cost of borrowed funds decreased 59 basis points to 1.42% in 2016 from 2.01% in 2015. FNCB anticipates further reductions in borrowing costs in 2017 as a result of its accelerated repayment of $4.0 million in principal on its subordinated debentures which had a stated due date of September 1, 2017, but was paid by FNCB on December 1, 2016. FNCB’s tax-equivalent margin improved 14 basis points to 3.13% in 2016 from 2.99% in 2015. The margin improvement reflected the growth in average earning assets, as well as the positive effects of the reduced cost of borrowing funds.

Non-interest income decreased $1.6 million to $6.2 million in 2016 from $7.8 million in 2015. The 20.5% decrease was largely due to a $1.3 million, or 58.2%, decrease in net gains on the sale of investment securities.

Total non-interest expense decreased $0.9 million, or 3.2%, to $27.6 million in 2016 from $28.5 million in 2015. The decrease primarily reflected $0.8 million in non-recurring legal settlements that were accrued in 2015, coupled with decreases in occupancy costs of $0.5 million, or 22.2%, regulatory assessments of $0.2 million, or 23.3%, and insurance expense of $0.1 million, or 21.7%. Partially offsetting these decreases were increases in salaries and benefits of $0.5 million, equipment expense of $0.1 million, or 4.5%, and bank shares tax of $0.1 million, or 18.6%. The improvement in net interest income, and reduced expense levels, are reflected in an improvement in FNCB’s efficiency ratio to 75.49% in 2016 from 84.70% in 2015.

Improved Asset Quality

Asset quality continued to improve in 2016, reflecting FNCB’s continued focus on sound problem credit resolutions and commitment to disciplined credit risk management. Total non-performing assets decreased $0.5 million, or 7.2%, to $6.4 million at December 31, 2016 from $6.9 million at December 31, 2015. Decreases in non-performing loans, including non-accruing troubled debt restructurings, of $1.6 million and other real estate owned (“OREO”) of $1.1 million were partially offset by an increase in other non-performing assets of $2.2 million. Other non-performing assets include a classified account receivable secured by a letter of credit and foreclosed equipment.

The ratio of non-performing loans to total loans improved 21 basis points, or 40.4%, to 0.31% at December 31, 2016, compared to 0.52% at December 31, 2015. The allowance for loan and lease losses as a percentage of total loans was 1.15% at December 31, 2016 compared to 1.20% at the end of 2015. Net charge-offs as a percentage of average loans outstanding for the year ended December 31, 2016 was 0.21%, compared to 0.20% for the year ended December 31, 2015.

Financial Position

Total assets increased $104.8 million, or 9.6%, to $1.2 billion at December 31, 2016 from $1.1 billion at December 31, 2015. The balance sheet growth primarily reflected an increase in total deposits of $193.6 million, or 23.6%, a portion of which was used to repay $77.3 million in FHLB advances, accelerate the $4.0 million principal payment on the subordinated debentures, and fund net increases in loans, net of deferred costs and unearned income, and investment securities of $0.6 million and $18.9 million, respectively. With regard to the increase in total deposits, specifically, non-interest-bearing demand accounts increased $19.2 million, or 12.4%, and interest-bearing deposits increased $174.4 million, or 26.2% comparing December 31, 2016 and 2015. The increase in non-interest-bearing demand deposits is primarily attributable to growth in business checking accounts, while growth in municipal deposits contributed to the increase in interest-bearing deposits.

Total shareholders’ equity improved $4.0 million, or 4.6%, to $90.1 million at December 31, 2016 from $86.2 million at the end of 2015, which resulted primarily from net income for 2016 of $6.3 million, partially offset by a $1.5 million increase in accumulated other comprehensive loss resulting from depreciation in the market value, net of tax, of FNCB’s available-for-sale securities, due to changes in market interest rates. Also affecting shareholders’ equity were dividends declared and paid of $1.5 million, common shares issued through the dividend reinvestment and optional cash purchase plans of $0.4 million and stock-based compensation of $0.3 million.

FNCB’s total risk-based capital ratio and the Tier 1 leverage ratio improved to 12.06% and 7.53%, respectively, at December 31, 2016, from 11.79% and 7.27%, respectively, at December 31, 2015. The ratios exceeded the 10.00% and 5.00% required to be well capitalized under the prompt corrective action provisions of the Basel III capital framework for U.S. Banking organizations, which became effective for the Company and the Bank on January 1, 2016.

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, which provides personal, small business and commercial banking services to individuals and businesses in Northeastern Pennsylvania and the Lehigh Valley through its 19 branch offices and Allentown-based Limited Purpose Office.  The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore and operated under the name First National Community Bank from 1988 through June 2016. On June 30, 2016, the institution changed its name to FNCB Bank upon its conversion from a national charter to a Pennsylvania state charter.  For more information about the BauerFinancial 5-Star rated FNCB, visit www.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 and fiscal 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; 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 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 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, 2015.

[The Company provides tabular information as follows]

 
FNCB Bancorp, Inc.
Selected Financial Data
    
   Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
    2016   2016   2016   2016   2015 
Per share data:          
Net income (fully diluted) $0.09  $0.12  $0.10  $0.07  $1.77 
Cash dividends declared $0.03  $0.02  $0.02  $0.02  $- 
Book value $5.42  $5.81  $5.76  $5.57  $5.22 
Tangible book value $5.42  $5.81  $5.75  $5.56  $5.21 
Market value:          
 High $6.30  $6.00  $6.12  $6.90  $5.50 
 Low $5.00  $4.75  $5.50  $5.11  $5.06 
 Close $6.05  $5.00  $5.60  $6.12  $5.25 
Common shares outstanding  16,645,845   16,614,856   16,586,868   16,530,432   16,514,245 
            
Selected ratios:          
Annualized return on average assets  0.55%  0.73%  0.60%  0.42%  10.99%
Annualized return on average shareholders' equity  6.43%  8.46%  7.12%  5.15%  192.68%
Efficiency ratio  77.25%  70.96%  77.78%  76.01%  92.80%
Tier I leverage ratio  7.53%  7.52%  7.31%  7.08%  7.27%
Total risk-based capital to risk-adjusted assets  12.06%  12.37%  12.00%  11.81%  11.79%
Average shareholders' equity to average total assets  8.50%  8.63%  8.40%  8.15%  5.70%
Yield on earning assets (FTE)  3.53%  3.58%  3.56%  3.52%  3.56%
Cost of funds  0.49%  0.52%  0.50%  0.48%  0.48%
Net interest spread (FTE)  3.03%  3.06%  3.06%  3.04%  3.08%
Net interest margin (FTE)  3.11%  3.14%  3.14%  3.11%  3.15%
Total delinquent loans/total loans  0.81%  0.72%  0.74%  0.82%  0.84%
Allowance for loan and lease losses/total loans  1.15%  1.17%  1.17%  1.19%  1.20%
Non-performing loans/total loans  0.31%  0.33%  0.37%  0.49%  0.52%
Annualized net charge-offs (recoveries)/average loans  0.20%  (0.09%)  0.26%  0.47%  0.02%
            

 

FNCB Bancorp, Inc. 
Year-to-Date Consolidated Statements of Income 
  
 Year Ended 
 Dec 31, 
(in thousands, except share data)  2016  2015  
Interest income     
Interest and fees on loans $28,223 $26,672  
Interest and dividends on securities     
 U.S. government agencies  3,557  4,036  
 State and political subdivisions, tax-free  46  109  
 State and political subdivisions, taxable  2,574  905  
 Other securities  315  433  
  Total interest and dividends on securities  6,492  5,483  
Interest on interest-bearing deposits in other banks  33  46  
   Total interest income  34,748  32,201  
Interest expense     
Interest on deposits  2,730  2,631  
Interest on borrowed funds     
 Interest on Federal Home Loan Bank of Pittsburgh advances  595  514  
 Interest on subordinated debentures  625  1,450  
 Interest on junior subordinated debentures  247  206  
  Total interest on borrowed funds  1,467  2,170  
   Total interest expense  4,197  4,801  
Net interest income before provision (credit) for loan and lease losses  30,551  27,400  
Provision (credit) for loan and lease losses  1,153  (1,345) 
Net interest income after provision (credit) for loan and lease losses  29,398  28,745  
Non-interest income     
Deposit service charges  2,892  2,960  
Net gain on the sale of securities  960  2,296  
Net gain on the sale of mortgage loans held for sale  340  292  
Net gain on the sale of SBA guaranteed loans  51  -  
Net gain on the sale of other real estate owned  49  162  
Loan-related fees  439  442  
Income from bank-owned life insurance  552  564  
Other    920  1,084  
   Total non-interest income  6,203  7,800  
Non-interest expense     
Salaries and employee benefits  14,320  13,810  
Occupancy expense  1,777  2,284  
Equipment expense  1,732  1,657  
Data processing expense  1,997  1,976  
Regulatory assessments  729  950  
Bank shares tax  836  705  
Expense of other real estate owned  409  400  
Legal expense  362  437  
Professional fees  961  1,014  
Insurance expense  516  659  
Other operating expenses  3,906  4,572  
   Total non-interest expense  27,545  28,464  
Income before income taxes  8,056  8,081  
Income tax expense (benefit)  1,747  (27,759) 
Net income  $6,309 $35,840  
         
Income per share     
 Basic  $0.38 $2.17  
 Diluted  $0.38 $2.17  
         
Cash dividends declared per common  share $0.09 $-  
Weighted average number of shares outstanding:     
 Basic   16,571,251  16,499,622  
 Diluted   16,571,251  16,499,622  
           

 

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)  2016  2016   2016  2016   2015   
Interest income            
Interest and fees on loans $7,066 $7,156  $7,032 $6,969  $7,032   
Interest and dividends on securities            
 U.S. government agencies  879  848   900  930   992   
 State and political subdivisions, tax-free  16  9   11  10   18   
 State and political subdivisions, taxable  740  675   624  535   458   
 Other securities  56  69   94  96   102   
  Total interest and dividends on securities  1,691  1,601   1,629  1,571   1,570   
Interest on interest-bearing deposits in other banks  19  8   2  4   4   
   Total interest income  8,776  8,765   8,663  8,544   8,606   
Interest expense            
Interest on deposits  721  704   663  642   628   
Interest on borrowed funds            
 Interest on Federal Home Loan Bank of Pittsburgh advances  123  157   167  148   147   
 Interest on subordinated debentures  145  162   159  159   160   
 Interest on junior subordinated debentures  67  62   61  57   56   
  Total interest on borrowed funds  335  381   387  364   363   
   Total interest expense  1,056  1,085   1,050  1,006   991   
Net interest income before provision (credit) for loan and lease losses  7,720  7,680   7,613  7,538   7,615   
Provision (credit) for loan and lease losses  295  (234)  396  696   (1,005)  
Net interest income after provision (credit) for loan and lease losses  7,425  7,914   7,217  6,842   8,620   
Non-interest income            
Deposit service charges  735  739   717  701   742   
Net gain (loss) on the sale of securities  -  -   857  103   (6)  
Net gain on the sale of mortgage loans held for sale  102  99   71  68   223   
Net gain on the sale of SBA guaranteed loans  -  51   -  -   -   
Net gain (loss) on the sale of other real estate owned  20  32   2  (5)  17   
Loan-related fees  152  85   95  107   152   
Income from bank-owned life insurance  126  137   143  146   149   
Other    263  237   209  211   180   
   Total non-interest income  1,398  1,380   2,094  1,331   1,457   
Non-interest expense            
Salaries and employee benefits  3,954  3,263   3,589  3,514   4,228   
Occupancy expense  476  479   329  493   619   
Equipment expense  455  429   425  423   423   
Data processing expense  475  505   494  523   556   
Regulatory assessments  100  199   193  237   239   
Bank shares tax  90  253   252  241   53   
Expense of other real estate owned  74  95   194  46   62   
Legal expense  77  79   86  120   106   
Professional fees  245  157   272  287   234   
Insurance expense  132  131   125  128   131   
Legal settlement  -  -   -  -   777   
Other operating expenses  1,085  963   1,066  792   1,159   
   Total non-interest expense  7,163  6,553   7,025  6,804   8,587   
Income before income taxes  1,660  2,741   2,286  1,369   1,490   
Income tax expense (benefit)  136  724   661  226   (27,719)  
Net income   $1,524 $2,017  $1,625 $1,143  $29,209   
                
Income per share            
 Basic  $0.09 $0.12  $0.10 $0.07  $1.77   
 Diluted  $0.09 $0.12  $0.10 $0.07  $1.77   
                
Cash dividends declared per common  share $0.03 $0.02  $0.02 $0.02  $-   
Weighted average number of shares outstanding:            
 Basic   16,621,467  16,593,811   16,549,169  16,519,759   16,506,294   
 Diluted   16,621,467  16,593,811   16,549,169  16,519,759   16,506,294   
                       

 

FNCB Bancorp, Inc.
Consolidated Balance Sheets
  
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2016   2016   2016   2016   2015 
Assets           
Cash and cash equivalents:         
 Cash and due from banks $20,562  $24,558  $15,847  $16,367  $19,544 
 Interest-bearing deposits in other banks  91,883   32,778   1,825   1,847   1,539 
  Total cash and cash equivalents  112,445   57,336   17,672   18,214   21,083 
Securities available for sale, at fair value  272,676   263,475   262,190   263,523   253,773 
Stock in Federal Home Loan Bank of Pittsburgh at cost  3,311   2,741   5,219   3,932   6,344 
Loans held for sale  596   185   563   455   683 
Loans, net of net deferred costs and unearned income  734,279   729,662   733,720   728,158   733,716 
Allowance for loan and lease losses  (8,419)  (8,490)  (8,559)  (8,635)  (8,790)
Net loans   725,860   721,172   725,161   719,523   724,926 
Bank premises and equipment, net  10,784   10,615   10,793   10,904   11,193 
Accrued interest receivable  2,757   2,736   2,511   2,854   2,475 
Intangible assets  -   14   55   96   137 
Bank-owned life insurance  29,933   29,807   29,670   29,527   29,381 
Other real estate owned  2,048   2,065   1,628   1,806   3,154 
Other assets   34,965   31,441   32,076   34,181   37,469 
   Total assets $1,195,375  $1,121,587  $1,087,538  $1,085,015  $1,090,618 
              
Liabilities           
Deposits:           
 Demand (non-interest-bearing) $173,702  $157,119  $144,082  $162,882  $154,531 
 Interest-bearing  841,437   773,840   691,751   720,243   667,015 
  Total deposits  1,015,139   930,959   835,833   883,125   821,546 
Borrowed funds:          
 Federal Home Loan Bank of Pittsburgh advances  58,537   58,837   120,771   74,511   135,802 
 Subordinated debentures  10,000   14,000   14,000   14,000   14,000 
 Junior subordinated debentures  10,310   10,310   10,310   10,310   10,310 
  Total borrowed funds  78,847   83,147   145,081   98,821   160,112 
Accrued interest payable  242   294   311   333   11,165 
Other liabilities  11,000   10,614   10,813   10,695   11,617 
  Total liabilities  1,105,228   1,025,014   992,038   992,974   1,004,440 
              
Shareholders' equity          
Preferred stock  -   -   -   -   - 
Common stock  20,807   20,768   20,734   20,663   20,643 
Additional paid-in capital  62,593   62,381   62,210   62,069   62,059 
Retained earnings  8,531   7,506   5,820   4,527   3,714 
Accumulated other comprehensive (loss) income  (1,784)  5,918   6,736   4,782   (238)
  Total shareholders' equity  90,147   96,573   95,500   92,041   86,178 
   Total liabilities and shareholders’ equity $1,195,375  $1,121,587  $1,087,538  $1,085,015  $1,090,618 
                

 

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)  2016   2016   2016   2016   2015  
Interest income           
Loans:             
Loans - taxable $6,767  $6,809  $6,674  $6,603  $6,694  
Loans - tax-free  453   526   542   555   512  
 Total loans  7,220   7,335   7,216   7,158   7,206  
Securities:            
Securities, taxable  1,675   1,592   1,618   1,561   1,552  
Securities, tax-free  24   14   17   15   27  
 Total interest and dividends on securities  1,699   1,606   1,635   1,576   1,579  
Interest-bearing deposits in other banks  19   8   2   4   4  
   Total interest income  8,938   8,949   8,853   8,738   8,789  
Interest expense           
Deposits   721   704   663   642   628  
Borrowed funds  335   381   387   364   363  
   Total interest expense  1,056   1,085   1,050   1,006   991  
   Net interest income $7,882  $7,864  $7,803  $7,732  $7,798  
                         
Average balances           
Earning assets:           
Loans:             
Loans - taxable $687,225  $688,038  $682,642  $683,198  $685,795  
Loans - tax-free  41,081   47,620   48,131   48,433   43,429  
 Total loans  728,306   735,658   730,773   731,631   729,224  
Securities:            
Securities, taxable  267,634   257,431   260,835   256,555   251,108  
Securities, tax-free  1,664   905   1,090   1,107   1,713  
 Total securities  269,298   258,336   261,925   257,662   252,821  
Interest-bearing deposits in other banks  15,727   6,448   2,347   3,746   6,797  
   Total interest-earning assets  1,013,331   1,000,442   995,045   993,039   988,842  
Non-earning assets  95,322   99,010   97,271   101,958   65,633  
   Total assets $1,108,653  $1,099,452  $1,092,316  $1,094,997  $1,054,475  
Interest-bearing liabilities:           
Deposits  $775,565  $737,431  $725,552  $725,369  $702,783  
Borrowed funds  78,780   103,821   117,229   113,386   119,281  
   Total interest-bearing liabilities  854,345   841,252   842,781   838,755   822,064  
Demand deposits  149,008   152,319   146,622   146,994   146,457  
Other liabilities  11,029   11,006   11,125   19,967   25,811  
Shareholders' equity  94,271   94,875   91,788   89,281   60,143  
 Total liabilities and shareholders' equity $1,108,653  $1,099,452  $1,092,316  $1,094,997  $1,054,475  
             
Yield/Cost  
Earning assets: 
Loans:   
Interest and fees on loans - taxable  3.94%  3.96%  3.91%  3.87%  3.90% 
Interest and fees on loans - tax-free  4.41%  4.42%  4.50%  4.58%  4.72% 
 Total loans  3.97%  3.99%  3.95%  3.91%  3.95% 
Securities:            
Securities, taxable  2.50%  2.47%  2.48%  2.43%  2.47% 
Securities, tax-free  5.83%  6.03%  6.11%  5.48%  6.37% 
 Total securities  2.52%  2.49%  2.50%  2.45%  2.50% 
Interest-bearing deposits in other banks  0.48%  0.50%  0.34%  0.43%  0.24% 
   Total earning assets  3.53%  3.58%  3.56%  3.52%  3.56% 
Interest-bearing liabilities:           
Interest on deposits  0.37%  0.38%  0.37%  0.35%  0.36% 
Interest on borrowed funds  1.70%  1.47%  1.32%  1.28%  1.22% 
   Total interest-bearing liabilities  0.49%  0.52%  0.50%  0.48%  0.48% 
   Net interest spread  3.03%  3.06%  3.06%  3.04%  3.08% 
 Net interest margin  3.11%  3.14%  3.14%  3.11%  3.15% 
                       

 

FNCB Bancorp, Inc.
Asset Quality Data
          
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2016  2016   2016  2016  2015 
At period end          
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $2,234 $2,416  $2,739 $3,569 $3,788 
Loans past due 90 days or more and still accruing  -  -   -  -  - 
 Total non-performing loans  2,234  2,416   2,739  3,569  3,788 
Other real estate owned (OREO)  2,048  2,065   1,628  1,806  3,154 
Other non-performing assets  2,160  260   -  -  - 
 Total non-performing assets $6,442 $4,741  $4,367 $5,375 $6,942 
             
Accruing TDRs $4,176 $4,106  $4,043 $4,623 $4,982 
             
             
For the three months ended          
Allowance for loan and lease losses          
Beginning balance $8,490 $8,559  $8,635 $8,790 $9,825 
Loans charged-off  572  189   709  1,148  198 
Recoveries of charged-off loans  206  354   237  297  168 
Net charge-offs (recoveries)  366  (165)  472  851  30 
Provision (credit) for loan and lease losses  295  (234)  396  696  (1,005)
Ending balance $8,419 $8,490  $8,559 $8,635 $8,790 
             


INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
FNCB Bank
(570) 348-6419
james.bone@fncb.com

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Source: FNCB Bancorp, Inc.

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