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First National Community Bancorp, Inc. Reports Record 2015 Earnings of $35.8 Million

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DUNMORE, Pa., Jan. 29, 2016 (GLOBE NEWSWIRE) -- First National Community Bancorp, Inc. (OTCQX:FNCB), the parent company of Dunmore-based First National Community Bank (the "Bank"), today reported record net income of $35.8 million, or $2.17 per basic and diluted share, for the year ended December 31, 2015, an increase of $22.4 million, or 167.1%, compared to $13.4 million, or $0.81 per basic and diluted share, for the year ended December 31, 2014.

167% Earnings Increase Included Reversal of Deferred Tax Asset Valuation Allowance

The Company's earnings performance was significantly impacted by the non-recurring reversal of a deferred tax asset ("DTA") valuation allowance, which resulted in the Company recording a tax benefit of $27.8 million in the consolidated statement of income for the year ended December 31, 2015. The reversal of the DTA valuation allowance indicates that upon consideration of all objectively verifiable evidence, management determined that it is more likely than not that future taxable income will be available to utilize the benefit of the Company's net deferred tax assets, excluding DTAs for charitable contribution carryforwards, going forward. Also impacting the Company's earnings performance in 2015 were decreases in non-interest income and the credit for loan and lease losses of $7.1 million and $4.5 million, respectively, which were partially offset by a $5.1 million reduction in non-interest expense and a $0.9 million increase in net interest income. For the fourth quarter of 2015, the Company recorded net income of $29.2 million, or $1.77, per basic and diluted common share, compared to a net loss of $31 thousand or $0.00 per basic and diluted share, for the same quarter of 2014. The improvement in fourth quarter results primarily reflected the reversal of DTA valuation allowance, increases in net interest income and the credit for loan and lease losses, partially offset by a reduction in non-interest income.

With the reversal of the DTA valuation allowance, at December 31, 2015, shareholders' equity increased $34.8 million, or 67.7%, to $86.2 million, or $5.22 per share, from $51.4 million, or $3.12 per share, at December 31, 2014. Return on average assets and return on average shareholders' equity equaled 3.57% and 63.24%, respectively in 2015, compared to 1.38% and 29.50%, respectively, in 2014. For the three months ended December 31, 2015, return on average assets and return on average shareholders' equity were 10.99% and 192.68%, respectively, compared to (0.01)% and (0.24)%, respectively, for the same three months of 2014.

Performance Highlights:

  • Earnings per share increased $1.36 to $2.17 in 2015 from $0.81 in 2014.
  • Net interest income before the credit for loan and lease losses grew by 3.3% over 2014.
  • Non-interest expense decreased $5.1 million, or 15.2% from 2014.
  • Strong growth in net loans for 2015 of $66.2 million, or 10.0%.
  • Asset quality improvement as evidenced by a 10.7% decline in nonperforming assets compared to December 31, 2014.
  • Tangible book value improved 68.1% to $5.21 per share at December 31, 2015 compared to $3.10 per share at December 31, 2014.

"2015 has proved to be pivotal for our Company as we achieved several significant milestones this year," stated Dominick L. DeNaples, Chairman of the Board. "Our accomplishments in 2015, including the termination of all regulatory enforcement actions, reflected our continued resolve and commitment to strengthen the Company's risk profile and profitability through the execution of sound balance sheet management strategies," commented Steven R. Tokach, President and Chief Executive Officer.  "The reversal of the DTA valuation allowance further reinforces our confidence in the Company's ability to generate sustained profitability and enhance shareholder value going forward, and underscores our belief that the Company has regained its position as a premier community banking franchise in Northeastern Pennsylvania," concluded Mr. Tokach.

Summary Results for 2015

Net interest income before the credit for loan and lease losses increased $874 thousand, or 3.3%, to $27.4 million in 2015 from $26.5 million in 2014. The improvement in net interest income reflected a $1.3 million, or 21.9%, decrease in interest expense, which was due primarily to a 19 basis point reduction in the Company's cost of funds to 0.61% in 2015 from 0.80% in 2014.  Having the greatest impact on funding costs was an $11.0 million principal payment and rate modification of the Company's subordinated debentures decreasing the interest rate 450 basis points completed on June 30, 2015. As a result, interest expense on the subordinated debentures decreased $0.8 million. Overall, the cost of borrowed funds decreased 116 basis points to 2.01% in 2015 from 3.17% in 2014. Partially offsetting the decrease in interest expense was a $0.5 million, or 1.4%, decrease in interest income to $32.2 million in 2015 from $32.7 million in 2014. The reduction in interest income was primarily caused by a 25 basis point reduction in the tax-equivalent yield on earning assets to 3.50% in 2015 from 3.75% in 2014. The Company's tax-equivalent margin decreased 9 basis points to 2.99% in 2015 from 3.08% in 2014. The margin contraction reflected repositioning of the Company's investment securities portfolio from tax-free to taxable securities as part of tax planning strategies aimed at facilitating the reversal of the DTA valuation allowance, and a 17 basis point decrease in the tax-equivalent yield on the loan portfolio, partially offset by the positive effects of $26.8 million in growth in average earning assets.

Non-interest income decreased $7.1 million to $7.8 million in 2015 from $14.9 million in 2014. The 47.7% decrease was due largely to a decrease in net gains on the sale of investment securities of $4.3 million, coupled with non-recurring income earned in 2014. Net gains on the sale of investment securities were $2.3 million in 2015, a $4.3 million, or 65.4%, decrease compared to $6.6 million in 2014. In addition, non-interest income in 2014 included $2.1 million of non-recurring income received from the settlement of judgements filed pursuant to a large, previously charged-off, commercial credit relationship, and a $0.6 million net gain recorded on the divestiture of the Company's retail banking operations in Monroe County, Pennsylvania.

Non-interest expense levels were positively impacted by continued improvement in the Company's asset quality and risk profile, termination of regulatory enforcement actions and on-going cost containment initiatives. Non-interest expense decreased $5.1 million, or 15.2%, to $28.5 million in 2015 from $33.6 million in 2014. Specifically, the above factors contributed directly to reductions of $2.2 million, or 84.4%, in expense of other real estate owned, $1.4 million, or 75.7%, in legal expense, $0.9 million, or 47.3%, in regulatory assessments, $0.6 million, or 35.3% in professional fees and $0.3 million, or 30.7%, in insurance costs.

Improved Asset Quality

The Company's asset quality continued to improve in 2015, which reflects the ongoing focus on sound problem credit resolutions and commitment to disciplined credit risk management. Total non-performing assets decreased $0.9 million, or 10.7%, to $6.9 million at December 31, 2015 from $7.8 million at December 31, 2014. A $1.7 million decrease in non-performing loans, including non-accruing troubled debt restructurings, was partially offset by a $0.9 million increase in other real estate owned ("OREO"). In the fourth quarter of 2015, the Company foreclosed upon a commercial property collateralizing a $3.5 million non-accrual commercial real estate loan. The property was transferred to OREO at its fair value less cost to sell of $1.5 million. The loan was supported by a governmental agency guarantee. Accordingly, the Company does not expect to incur any loss on the difference between the recorded investment of this loan and the fair value of the collateral less cost to sell.

The ratio of non-performing loans to total loans improved 30 basis points to 0.52% at December 31, 2015, compared to 0.82% at December 31, 2014. The allowance for loan and lease losses as a percentage of total loans was 1.21% at December 31, 2015 compared to 1.72% at the end of 2014. Net charge-offs as a percentage of average loans outstanding for the year ended December 31, 2015 was 0.20%. In comparison, the Company posted net recoveries as a percentage of average loans outstanding of 0.51% in 2014, which was largely due to the aforementioned favorable legal settlement.

Financial Position

Total assets increased $120.6 million, or 12.4%, to $1.1 billion at December 31, 2015 from $970.0 million at December 31, 2014. Net loans grew $66.2 million, or 10.0%, which reflected strong demand for both commercial and consumer loan products. In addition, available-for-sale securities increased $34.8 million, or 15.9%. The balance sheet was also impacted by the reversal of the DTA valuation allowance, which was the primary factor causing a $28.7 million increase in other assets. Total deposits increased $26.2 million, or 3.3%, to $821.5 million at December 31, 2015 from $795.3 million at the end of 2014. Specifically, non-interest-bearing demand deposits increased $30.5 million, or 24.6%, while interest-bearing deposits decreased $4.3 million, or 0.6%. The increase in non-interest bearing demand deposits primarily reflected the positive balance fluctuations of several large commercial customer relationships. The decrease in interest-bearing deposits was largely related to lower deposit balances of the Company's municipal customers due to a state budget impasse, and the planned runoff of higher-costing certificates of deposit generated through QwickRate®, a national deposits listing service. These decreases were partially offset by the attainment of a large commercial deposit relationship. Due to their lower cost, the Company increased its utilization of FHLB borrowings as an alternative funding source of liquidity by $74.6 million or 121.9%. This was the primary factor leading to a $63.6 million, or 65.9%, increase in total borrowed funds. Partially offsetting the increase in FHLB advances was the $11.0 million principal repayment of the Company's subordinated debentures.

Impacted by the DTA valuation allowance reversal, total shareholders' equity improved $34.8 million, or 67.7%, to $86.2 million at December 31, 2015 from $51.4 million at the end of 2014.  Net income for 2015 of $35.8 million, which included an income tax benefit of $27.8 million related to the reversal of the DTA valuation allowance, was the primary factor leading to the Company's improved capital position.

At December 31, 2015, the Company's total risk-based capital ratio and the Tier 1 leverage ratio were 11.75% and 7.27%, respectively, at December 31, 2015. The respective ratios for the Bank at December 31, 2015 were 13.79% and 9.79%. The ratios for both the Company and the Bank 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, 2015.

Availability of Filings

Copies of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on for 10-Q will be provided upon request from: Shareholder Relations, First National Community Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. The Company's SEC filings including Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available on the Investor Relations page of the Company's website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html

About First National Community Bank: 

First National Community Bancorp, Inc. is the bank holding company of First National Community Bank, which provides personal, small business and commercial banking services to individuals and businesses throughout Lackawanna, Luzerne, and Wayne Counties in Northeastern Pennsylvania.  The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore, and has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.

The Company may from time to time make written or oral "forward-looking statements," including statements contained in the Company's filings with the Securities and Exchange Commission ("SEC"), in its reports to shareholders, and in other communications by the Company, which are made in good faith by the Company pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to the Company'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 the Company's 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 the Company'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 the Company's 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 the Company to compete with other institutions for business; the composition and concentrations of the Company's lending risk and the adequacy of the Company's reserves to manage those risks; the valuation of the Company's investment securities; the ability of the Company to pay dividends or repurchase common shares; the ability of the Company to retain key personnel; the impact of any pending or threatened litigation against the Company; the marketability of shares of the Company and fluctuations in the value of the Company's share price;  the impact of the Company's ability to comply with its regulatory agreements and orders; the effectiveness of the Company's system of internal controls; the ability of the Company 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 the Company's information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of the Company at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in the Company's filings with the SEC.

The Company 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 the Company on its website or otherwise.  The Company 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 the Company 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 the Company periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2014.

[The Company provides tabular information as follows]



First National Community Bancorp, Inc.
Selected Financial Data
            
    
   Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
    2015   2015   2015   2015   2014 
Per share data:          
Net income (fully diluted) $  1.77  $  0.14  $  0.05  $  0.21  $  -  
Cash dividends declared $  -   $  -   $  -   $  -   $  -  
Book value $  5.22  $  3.61  $  3.33  $  3.38  $  3.12 
Tangible book value $  5.21  $  3.60  $  3.32  $  3.36  $  3.10 
Market value:          
 High  $  5.50  $  6.05  $  6.55  $  5.40  $  6.65 
 Low $  5.06  $  5.02  $  5.15  $  5.25  $  5.60 
 Close $  5.25  $  5.19  $  6.05  $  5.26  $  6.00 
Common shares outstanding    16,514,245     16,500,945     16,500,945     16,500,945     16,484,419 
            
Selected ratios:          
Annualized return on average assets  10.99%  0.91%  0.34%  1.45%  (0.01)%
Annualized return on average shareholders' equity  192.68%  16.38%  5.89%  26.34%  (0.24)%
Tier I leverage ratio  7.27%  6.57%  6.64%  6.57%  6.05%
Total risk-based capital to risk-adjusted assets  11.79%  11.20%  11.60%  12.96%  13.67%
Average shareholders' equity to average total assets  5.70%  5.55%  5.73%  5.52%  5.22%
Yield on earning assets (FTE)  3.56%  3.50%  3.45%  3.48%  3.56%
Cost of funds  0.48%  0.51%  0.73%  0.75%  0.79%
Net interest spread (FTE)  3.08%  2.98%  2.72%  2.73%  2.77%
Net interest margin (FTE)  3.15%  3.07%  2.85%  2.85%  2.90%
Total delinquent loans/total loans  0.85%  1.29%  1.34%  1.10%  1.21%
Allowance for loan and lease losses/total loans  1.21%  1.36%  1.51%  1.63%  1.72%
Non-performing loans/total loans  0.52%  0.93%  0.84%  0.77%  0.82%
Net charge-offs/average loans  0.02%  0.04%  0.14%  0.01%  0.02%
            

 

First National Community Bancorp, Inc. 
Year-to-Date Consolidated Statements of Income 
 Year Ended 
 December 31,  
(in thousands, except share data)  2015   2014  
Interest income     
Interest and fees on loans $  26,672  $  26,629  
Interest and dividends on securities     
 U.S. government agencies    4,036     3,494  
 State and political subdivisions, tax-free    109     1,883  
 State and political subdivisions, taxable    905     324  
 Other securities    433     272  
  Total interest and dividends on securities    5,483     5,973  
Interest on interest-bearing deposits in other banks    46     71  
   Total interest income    32,201     32,673  
Interest expense     
Interest on deposits    2,631     3,180  
Interest on borrowed funds     
 Interest on Federal Home Loan Bank of Pittsburgh advances    514     450  
 Interest on subordinated debentures    1,450     2,281  
 Interest on junior subordinated debentures     206     236  
  Total interest on borrowed funds    2,170     2,967  
   Total interest expense    4,801     6,147  
Net interest income before credit for loan and lease losses    27,400     26,526  
Credit for loan and lease losses    (1,345)    (5,869) 
Net interest income after credit for loan and lease losses    28,745     32,395  
Non-interest income     
Deposit service charges    2,960     2,975  
Net gain on the sale of securities    2,296     6,640  
Net gain on the sale of mortgage loans held for sale    292     292  
Net loss on the sale of education loans    -     (13) 
Net gain on the sale of other real estate owned    162     209  
Gain on branch divestitures    -     607  
Loan-related fees    442     440  
Income from bank-owned life insurance    564     650  
Legal settlements    184     2,127  
Other      900     993  
   Total non-interest income    7,800     14,920  
Non-interest expense     
Salaries and employee benefits    13,810     13,111  
Occupancy expense    2,284     2,088  
Equipment expense    1,657     1,471  
Data processing expense    1,976     2,088  
Regulatory assessments    950     1,801  
Bank shares tax    705     522  
Expense of other real estate owned    400     2,569  
Legal expense    437     1,799  
Professional fees    1,014     1,567  
Insurance expense    659     951  
Legal/regulatory settlements    777     1,500  
Other operating expenses    3,795     4,102  
   Total non-interest expense    28,464     33,569  
Income before income taxes    8,081     13,746  
Income tax (benefit) expense    (27,759)    326  
Net income  $  35,840  $  13,420  
         
Income per share     
 Basic  $  2.17  $  0.81  
 Diluted  $  2.17  $  0.81  
         
Cash dividends declared per common  share  $  -   $  -   
Weighted average number of shares outstanding:     
 Basic   16,499,622   16,472,660  
 Diluted   16,499,622   16,472,871  

 

First National Community 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)  2015   2015   2015   2015   2014  
Interest income           
Interest and fees on loans $  7,032  $  6,693  $  6,475  $  6,472  $  6,671  
Interest and dividends on securities           
 U.S. government agencies    992     1,061     1,012     971     998  
 State and political subdivisions, tax-free    18     19     22     50     204  
 State and political subdivisions, taxable    458     324     97     26     53  
 Other securities    102     92     82     157     66  
  Total interest and dividends on securities    1,570     1,496     1,213     1,204     1,321  
Interest on interest-bearing deposits in other banks    4     10     11     21     27  
   Total interest income    8,606     8,199     7,699     7,697     8,019  
Interest expense           
Interest on deposits    628     677     643     683     745  
Interest on borrowed funds           
 Interest on Federal Home Loan Bank of Pittsburgh advances    147     128     119     120     116  
 Interest on subordinated debentures    160     162     565     563     575  
 Interest on junior subordinated debentures     56     50     51     49     87  
  Total interest on borrowed funds    363     340     735     732     778  
   Total interest expense    991     1,017     1,378     1,415     1,523  
Net interest income before (credit) provision for loan and lease losses    7,615     7,182     6,321     6,282     6,496  
(Credit) provision for loan and lease losses    (1,005)    (191)    345     (494)    (240) 
Net interest income after (credit) provision for loan and lease losses    8,620     7,373     5,976     6,776     6,736  
Non-interest income           
Deposit service charges    742     799     745     674     758  
Net (loss) gain on the sale of securities    (6)    4     74     2,224     634  
Net gain on the sale of mortgage loans held for sale    223     13     16     40     69  
Net gain on the sale of other real estate owned    17     129     11     5     106  
Loan-related fees    152     94     106     90     148  
Income from bank-owned life insurance    149     145     135     135     154  
Legal settlements    -     -     184     -     -  
Other      180     195     274     251     194  
   Total non-interest income    1,457     1,379     1,545     3,419     2,063  
Non-interest expense           
Salaries and employee benefits    4,228     3,240     3,203     3,139     3,302  
Occupancy expense    619     500     532     633     534  
Equipment expense    423     408     442     384     403  
Data processing expense    556     471     501     448     532  
Regulatory assessments    239     203     99     409     412  
Bank shares tax    53     217     218     217     150  
Expense of other real estate owned    62     91     147     100     74  
Legal expense    106     80     88     163     371  
Professional fees    234     193     286     301     327  
Insurance expense    131     128     202     198     194  
Legal settlement    777     -     -     -     1,500  
Other operating expenses    1,159     884     962     790     1,031  
   Total non-interest expense    8,587     6,415     6,680     6,782     8,830  
Income (loss) before income taxes    1,490     2,337     841     3,413     (31) 
Income tax (benefit) expense    (27,719)    -     22     (62)    -  
Net income (loss) $  29,209  $  2,337  $  819  $  3,475  $  (31) 
               
Income per share           
 Basic  $  1.77  $  0.14  $  0.05  $  0.21  $  -   
 Diluted  $  1.77  $  0.14  $  0.05  $  0.21  $  -   
               
Cash dividends declared per common  share  $  -   $  -   $  -   $  -   $  -   
Weighted average number of shares outstanding:           
 Basic   16,506,294   16,500,945   16,500,945   16,490,111   16,475,899  
 Diluted   16,506,294   16,500,945   16,500,945   16,490,111   16,475,899  

 

First National Community Bancorp, Inc.
Consolidated Balance Sheets
              
  
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2015   2015   2015   2015   2014 
Assets           
Cash and cash equivalents:         
 Cash and due from banks $  19,544  $  20,631  $  22,443  $  19,985  $  22,657 
 Interest-bearing deposits in other banks    1,539     10,383     49,872     17,390     13,010 
  Total cash and cash equivalents    21,083     31,014     72,315     37,375     35,667 
Securities available for sale, at fair value    253,773     249,228     226,539     204,635     218,989 
Stock in Federal Home Loan Bank of Pittsburgh at cost    6,344     4,298     2,684     3,061     2,803 
Loans held for sale    683     4,634     138     -     603 
Loans, net of net deferred costs and unearned income    733,716     723,166     683,588     672,165     670,267 
Allowance for loan and lease losses    (8,790)    (9,825)    (10,328)    (10,944)    (11,520)
Net loans     724,926     713,341     673,260     661,221     658,747 
Bank premises and equipment, net    11,193     11,258     11,059     11,221     11,003 
Accrued interest receivable    2,475     2,618     2,174     2,118     2,075 
Intangible assets    137     179     220     261     302 
Bank-owned life insurance    29,381     29,232     29,087     28,952     28,817 
Other real estate owned    3,154     1,618     1,740     2,369     2,255 
Other assets     37,469     7,799     8,455     9,028     8,768 
   Total assets $  1,090,618  $  1,055,219  $  1,027,671  $  960,241  $  970,029 
              
Liabilities           
Deposits:           
 Demand (non-interest-bearing) $  154,531  $  152,038  $  144,075  $  134,993  $  124,064 
 Interest-bearing     667,015     700,004     721,293     640,118     671,272 
  Total deposits    821,546     852,042     865,368     775,111     795,336 
Borrowed funds:          
 Federal Home Loan Bank of Pittsburgh advances    135,802     93,058     57,771     67,612     61,194 
 Subordinated debentures    14,000     14,000     14,000     25,000     25,000 
 Junior subordinated debentures    10,310     10,310     10,310     10,310     10,310 
  Total borrowed funds    160,112     117,368     82,081     102,922     96,504 
Accrued interest payable    11,165     11,187     11,344     10,788     10,262 
Other liabilities    11,617     14,989     13,935     15,678     16,529 
  Total liabilities    1,004,440     995,586     972,728     904,499     918,631 
              
Shareholders' equity          
Preferred stock    -     -     -     -     - 
Common stock    20,643     20,626     20,626     20,626     20,605 
Additional paid-in capital    62,059     61,939     61,870     61,801     61,781 
Retained earnings (accumulated deficit)    3,714     (25,495)    (27,832)    (28,651)    (32,126)
Accumulated other comprehensive (loss) income    (238)    2,563     279     1,966     1,138 
  Total shareholders' equity    86,178     59,633     54,943     55,742     51,398 
   Total liabilities and shareholders' equity $  1,090,618  $  1,055,219  $  1,027,671  $  960,241  $  970,029 
     

 

First National Community Bancorp, Inc. 
Summary Tax-equivalent Net Interest Income 
               
     Three Months Ended 
     Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, 
(dollars in thousands)  2015   2015   2015   2015   2014  
Interest income           
Loans:             
Loans - taxable $  6,694  $  6,371  $  6,148  $  6,148  $  6,340  
Loans - tax-free    512     488     495     491     501  
 Total loans    7,206     6,859     6,643     6,639     6,841  
Securities:            
Securities, taxable    1,552     1,477     1,191     1,154     1,117  
Securities, tax-free    27     29     33     76     309  
 Total interest and dividends on securities    1,579     1,506     1,224     1,230     1,426  
Interest-bearing deposits in other banks    4     10     11     21     27  
   Total interest income    8,789     8,375     7,878     7,890     8,294  
Interest expense           
Deposits     628     677     643     683     745  
Borrowed funds    363     340     735     732     778  
   Total interest expense    991     1,017     1,378     1,415     1,523  
   Net interest income $  7,798  $  7,358  $  6,500  $  6,475  $  6,771  
 
Average balances           
Earning assets:           
Loans:             
Loans - taxable $  685,795  $  660,709  $  637,005  $  633,731  $  635,146  
Loans - tax-free    43,429     41,746     42,225     41,125     40,477  
 Total loans    729,224     702,455     679,230     674,856     675,623  
Securities:            
Securities, taxable    251,108     241,799     211,833     194,268     196,351  
Securities, tax-free    1,713     1,707     2,007     4,283     17,055  
 Total interest and dividends on securities    252,821     243,506     213,840     198,551     213,406  
Interest-bearing deposits in other banks    6,797     12,185     18,984     34,708     43,618  
   Total interest-earning assets    988,842     958,146     912,054     908,115     932,647  
Non-earning assets    65,633     62,063     62,254     61,476     58,826  
   Total assets $  1,054,475  $  1,020,209  $  974,308  $  969,591  $  991,473  
Interest-bearing liabilities:           
Deposits  $  702,783  $  690,039  $  646,656  $  658,193  $  675,901  
Borrowed funds    119,281     105,109     108,234     99,046     99,251  
   Total interest-bearing liabilities    822,064     795,148     754,890     757,239     775,152  
Demand deposits    146,457     143,140     137,674     132,316     139,336  
Other liabilities    25,811     25,303     25,964     26,525     25,278  
Shareholders' equity    60,143     56,618     55,780     53,511     51,707  
 Total liabilities and shareholders' equity $  1,054,475  $  1,020,209  $  974,308  $  969,591  $  991,473  
             
Yield/Cost  
Earning assets: 
Loans:   
Interest and fees on loans - taxable  3.90%  3.86%  3.86%  3.88%  3.99% 
Interest and fees on loans - tax-free  4.72%  4.67%  4.69%  4.78%  4.95% 
 Total loans  3.95%  3.91%  3.91%  3.94%  4.05% 
Securities:            
Securities, taxable  2.47%  2.44%  2.25%  2.38%  2.28% 
Securities, tax-free  6.37%  6.75%  6.64%  7.10%  7.25% 
 Total interest and dividends on securities  2.50%  2.47%  2.29%  2.48%  2.67% 
Interest on interest-bearing deposits in other banks  0.24%  0.33%  0.23%  0.24%  0.25% 
   Total earning assets  3.56%  3.50%  3.45%  3.48%  3.56% 
Interest-bearing liabilities:           
Interest on deposits  0.36%  0.39%  0.40%  0.42%  0.44% 
Interest on borrowed funds  1.22%  1.29%  2.72%  2.96%  3.14% 
   Total interest-bearing liabilities  0.48%  0.51%  0.73%  0.75%  0.79% 
   Net interest spread  3.08%  2.98%  2.72%  2.73%  2.77% 
 Net interest margin  3.15%  3.07%  2.85%  2.85%  2.90% 

 

First National Community Bancorp, Inc.
Asset Quality Data
             
          
 Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands)  2015   2015   2015   2015   2014 
At period end          
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $  3,788  $  6,741  $  5,757  $  5,184  $  5,522 
Loans past due 90 days or more and still accruing    -     -     -     -     - 
 Total non-performing loans    3,788     6,741     5,757     5,184     5,522 
Other real estate owned (OREO)    3,154     1,618     1,740     2,369     2,255 
 Total non-performing loans and OREO $  6,942  $  8,359  $  7,497  $  7,553  $  7,777 
             
Accruing TDRs  $  4,982  $  5,065  $  5,289  $  5,807  $  5,282 
             
             
For the three months ended          
Allowance for loan and lease losses          
Beginning balance $  9,825  $  10,328  $  10,944  $  11,520  $  11,898 
Loans charged-off    198     968     1,192     277     427 
Recoveries of charged-off loans    168     656     231     195     289 
Net charge-offs    30     312     961     82     138 
(Credit) provision for loan and lease losses    (1,005)    (191)    345     (494)    (240)
Ending balance $  8,790  $  9,825  $  10,328  $  10,944  $  11,520 
             

 

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

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