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FNCB Bancorp, Inc. Announces Increased Second Quarter and Year-to-date 2018 Earnings

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DUNMORE, Pa., July 20, 2018 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ:FNCB), the parent company of Dunmore-based FNCB Bank (the "Bank"), reported net income of $2.412 million, or $0.14 per basic and diluted share, for the second quarter of 2018, an increase of $620 thousand, or 34.6%, compared to net income of $1.792 million, or $0.11 per basic and diluted share, for the same quarter of 2017. Net income for the six months ended June 30, 2018 increased $442 thousand, or 11.1%, to $4.431 million, or $0.26 per basic and diluted share, from $3.989 million, or $0.24 per basic and diluted share, for the comparable six-month period of 2017. Earnings for the second quarter and year-to-date periods were impacted favorably by improved net interest income and lower income tax expense. Partially offsetting these positive factors were increases in the provision for loan and lease losses and non-interest expense and lower non-interest income.

Annualized return on average assets was 0.79% and 0.75%, respectively, for the three and six months ended June 30, 2018, compared to 0.65% and 0.71%, for the respective periods of 2017. Annualized return on average equity was 11.23% and 10.34%, respectively, for the three- and six-month periods ended June 30, 2018, compared to 7.60% and 8.66%, respectively, for the comparable periods in 2017. Dividends declared and paid were $0.04 per share for the second quarter and $0.08 per share for the year-to-date period of 2018, which represented a 33.3% increase compared to $0.03 per share and $0.06 per share, respectively, for the three and six months ended June 30, 2017. The dividend pay-out ratio for the six months ended June 30, 2018 was 30.3%, compared to 25.1% for the same period of 2017.

Second Quarter 2018 Performance Highlights:

  • Tax-equivalent net interest income increased 13.9% and 12.6%, comparing the second quarter and year-to-date periods of 2018 and 2017, respectively;
  • Tax-equivalent yield on earning assets for the second quarter of 2018 improved 30 basis points compared to the same quarter of 2017;
  • Efficiency ratio for six months ended June 30, 2018 improves to 66.32% from 73.38% for same period of 2017;
  • Year over year growth in total loans, net of net deferred costs and unearned income, of $127.3 million, or 17.5%;
  • Closing stock price increased $1.08 per share, or 13.8%, year over year;
  • FNCB Bancorp, Inc. added as a member of the Russell Microcap® Index effective June 25, 2018;
  • Opened new state-of-the-art branch office located in Plains Township, Pennsylvania.

"We are very pleased with the strong demand for our loan products that we experienced in the second quarter of 2018," stated Gerard A. Champi, President and Chief Executive Officer. "Our expansion into the Lehigh Valley market area and additions to both retail and commercial lending staff has proved successful in generating solid, organic loan growth," continued Mr. Champi. "The strong demand, coupled with higher earning-asset yields, translated into nearly 20% growth in year-to-date interest income year-over-year. For the second half of 2018, we will be focused on effectively managing our funding costs amid this very challenging rate environment," concluded Mr. Champi.

Summary Results for the Three and Six Months Ended June 30, 2018

Tax-equivalent net interest income was $9.4 million for the second quarter of 2018, an increase of $1.1 million, or 13.9%, from $8.2 million for the same quarter of 2017. Similarly, tax-equivalent net interest income for the six months ended June 30, 2018 increased $2.0 million, or 12.6%, to $18.3 million compared to $16.3 million for the same six-month period of 2017. The improvement for both the quarter and year-to-date periods were largely due to growth in average earning assets and higher earning-asset yields, partially offset by higher funding costs. Average earning assets grew $123.7 million, or 12.1%, and $86.4 million, or 8.3%, comparing the quarter and year-to-date periods ended June 30, 2018 and 2017, respectively. Tax-equivalent earning-asset yields improved 30 basis points for the second quarter and 34 basis points for the six months ended June 30, 2018 over the same periods of 2017. For the three months ended June 30, 2018, the cost of funds increased 31 basis points to 0.84% from 0.53% for the same period of 2017. Similarly, the cost of funds increased 26 basis points to 0.76% from 0.50% comparing the year-to-date periods of 2018 and 2017. The tax-equivalent net interest margin remained stable at 3.26% for the quarterly periods ended June 30, 2018 and March 31, 2018. 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 2018 and 34.0% for 2017.

Non-interest income totaled $1.5 million for the three months ended June 30, 2018, compared to $2.0 million for the comparable period of 2017. For the six months ended June 30, 2018, non-interest income amounted to $3.0 million, a decrease of $0.5 million, or 15.2%, compared to $3.6 million for the same period of 2017. The decrease in non-interest revenue for the second quarter and year-to-date periods resulted primarily from a reduction in net gains realized on the sale of available-for-sale investment securities.

Non-interest expense was relatively stable, increasing by $26 thousand, or 0.4%, comparing for the three months ended June 30, 2018 and 2017. Comparing the six months ended June 30, 2018 and 2017, non-interest expense increased $330 thousand, or 2.4%.  The increase in non-interest expense resulted primarily from higher salaries and employee benefits expense related to staffing additions within FNCB Bank's retail and commercial lending and credit administration units.

Asset Quality

Total non-performing loans increased $1.1 million to $3.5 million at June 30, 2018 from $2.4 million at March 31, 2018. However, year-over-year non-performing loans decreased $0.2 million from $3.7 million at June 30, 2017. The increase from March 31, 2018 was primarily attributable to one commercial relationship that was placed on non-accrual status. The ratio of non-performing loans to total loans was 0.41% at June 30, 2018, compared to 0.30% at March 31, 2018 and 0.50% at June 30, 2017. Despite the increase in non-performing loans from the previous quarter end, FNCB's asset quality compared favorably to the peer average of 0.61% at March 31, 2018, the most recent data reported for bank holding companies having assets between $1.0 billion and $3.0 billion. The allowance for loan and lease losses as a percentage of gross loans was 1.11% at June 30, 2018, 1.18% at March 31, 2018 and 1.16% at June 30, 2017.

Financial Condition

Total assets increased $77.0 million, or 6.6%, to $1.239 billion at June 30, 2018 from $1.162 billion at December 31, 2017. The increase in total assets primarily reflected growth in loans, net of net deferred costs and unearned income, of $84.7 million, or 11.0%, to $855.4 million at June 30, 2018 from $770.6 million at December 31, 2017. Total deposits decreased $47.2 million, or 4.7%, to $955.2 million at June 30, 2018 from $1.002 billion at December 31, 2017. The decrease in deposits was primarily attributable to cyclical net outflows of public funds. The strong loan demand, coupled with the decrease in total deposits, resulted in greater reliance on wholesale funding. As a result, FHLB of Pittsburgh advances increased $129.3 million, or 287.5%, to $174.3 million at June 30, 2018 from $45.0 million at the end of 2017.

Total shareholders' equity decreased $2.1 million, or 2.3%, to $87.1 million at June 30, 2018 from $89.2 million at December 31, 2017. The reduction in capital resulted primarily from a $5.3 million increase in accumulated other comprehensive loss related to depreciation in the fair value of available-for-sale debt securities, net of deferred taxes, and year-to-date dividends declared of $1.3 million. Partially offsetting these decreases was net income of $4.4 million for the six months ended June 30, 2018. Despite the decrease in capital, FNCB remains well capitalized with total risk-based capital and Tier I leverage ratios of 11.31% and 7.69%, respectively, at June 30, 2018.   

Availability of Filings

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

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as Northeastern Pennsylvania's premier community bank – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB operates through 16 branch offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making our 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; the composition and concentrations of FNCB's lending risk and the adequacy of FNCB's reserves to manage those risks; the valuation of FNCB's investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB stock and fluctuations in the value of FNCB's share price; the effectiveness of FNCB's system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services' laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the 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, 2017.

[FNCB provides tabular information as follows]

 
 
FNCB Bancorp, Inc.
Selected Financial Data
                     
     
    Jun 30,   Mar 31,   Dec 31,   Sept 30,   Jun 30,
    2018   2018   2017   2017   2017
Per share data:                                        
Net income (fully diluted)   $ 0.14     $ 0.12     $ (0.36 )   $ 0.14     $ 0.11  
Cash dividends declared   $ 0.04     $ 0.04     $ 0.04     $ 0.03     $ 0.03  
Book value   $ 5.18     $ 5.17     $ 5.32     $ 5.82     $ 5.76  
Tangible book value   $ 5.18     $ 5.17     $ 5.32     $ 5.82     $ 5.76  
Market value:                                        
High   $ 10.00     $ 9.98     $ 7.99     $ 8.00     $ 8.13  
Low   $ 8.01     $ 7.01     $ 6.54     $ 7.41     $ 6.35  
Close   $ 8.88     $ 9.24     $ 7.30     $ 7.57     $ 7.80  
Common shares outstanding     16,817,097       16,766,600       16,757,963       16,757,963       16,757,963  
                                         
Selected ratios:                                        
Annualized return on average assets     0.79 %     0.70 %     (2.09 %)     0.80 %     0.65 %
Annualized return on average shareholders' equity     11.23 %     9.44 %     (24.98 %)     9.27 %     7.60 %
Efficiency ratio     63.94 %     68.78 %     73.42 %     65.09 %     72.81 %
Tier I leverage ratio     7.69 %     7.80 %     7.74 %     8.10 %     7.99 %
Total risk-based capital to risk-adjusted assets     11.31 %     11.70 %     12.08 %     12.17 %     12.53 %
Average shareholders' equity to average total assets     7.05 %     7.38 %     8.35 %     8.61 %     8.49 %
Yield on earning assets (FTE)     3.96 %     3.83 %     3.84 %     3.77 %     3.66 %
Cost of funds     0.84 %     0.69 %     0.59 %     0.59 %     0.53 %
Net interest spread (FTE)     3.12 %     3.15 %     3.25 %     3.18 %     3.13 %
Net interest margin (FTE)     3.26 %     3.26 %     3.35 %     3.27 %     3.21 %
Total delinquent loans/total loans     0.71 %     0.73 %     0.72 %     0.81 %     0.94 %
Allowance for loan and lease losses/total loans     1.11 %     1.18 %     1.17 %     1.17 %     1.16 %
Non-performing loans/total loans     0.41 %     0.30 %     0.34 %     0.35 %     0.50 %
Annualized net charge-offs/average loans     0.47 %     0.10 %     0.06 %     0.08 %     0.14 %
                                         

 

FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
  Six Months Ended
  June 30,
(in thousands, except share data)     2018       2017  
Interest income        
Interest and fees on loans   $ 17,319     $ 14,172  
Interest and dividends on securities                
  U.S. government agencies     1,776       1,750  
  State and political subdivisions, tax-free     58       35  
  State and political subdivisions, taxable     2,051       1,800  
  Other securities     435       243  
    Total interest and dividends on securities     4,320       3,828  
Interest on interest-bearing deposits in other banks     35       122  
      Total interest income     21,674       18,122  
Interest expense                
Interest on deposits     2,201       1,570  
Interest on borrowed funds                
  Interest on Federal Home Loan Bank of Pittsburgh advances     1,059       261  
  Interest on subordinated debentures     113       226  
  Interest on junior subordinated debentures     186       142  
    Total interest on borrowed funds     1,358       629  
      Total interest expense     3,559       2,199  
Net interest income before provision (credit) for loan and lease losses     18,115       15,923  
Provision (credit) for loan and lease losses     1,600       (57 )
Net interest income after provision (credit) for loan and lease losses     16,515       15,980  
Non-interest income                
Deposit service charges     1,449       1,419  
Net (loss) gain on the sale of securities     (4 )     971  
Net loss on equity securities     (26 )     -  
Net gain on the sale of mortgage loans held for sale     100       135  
Net gain on the sale of SBA guaranteed loans     322       56  
Net gain on the sale of other repossessed assets     -       47  
Net gain on the sale of other real estate owned     31       57  
Loan-related fees     160       156  
Income from bank-owned life insurance     272       270  
Other         744       482  
      Total non-interest income     3,048       3,593  
Non-interest expense                
Salaries and employee benefits     7,151       6,822  
Occupancy expense     1,129       1,173  
Equipment expense     637       906  
Data processing expense     1,295       996  
Regulatory assessments     397       337  
Bank shares tax     489       510  
Professional fees     492       456  
Insurance expense     268       253  
Other operating expenses     2,340       2,415  
      Total non-interest expense     14,198       13,868  
Income before income taxes     5,365       5,705  
Income tax expense     934       1,716  
Net income     $ 4,431     $ 3,989  
                       
Income per share                
  Basic     $ 0.26     $ 0.24  
  Diluted     $ 0.26     $ 0.24  
                       
Cash dividends declared per common  share   $ 0.08     $ 0.06  
Weighted average number of shares outstanding:                
  Basic       16,778,188       16,687,389  
  Diluted       16,801,426       16,704,056  
 
 

 

FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income (Loss)
                           
  Three Months Ended
  Jun 30,   Mar 31,   Dec 31,   Sept 30,   Jun 30,
(in thousands, except share data)     2018       2018       2017       2017     2017  
Interest income                    
Interest and fees on loans   $ 9,031     $ 8,288     $ 8,073     $ 7,576   $ 7,191  
Interest and dividends on securities                    
  U.S. government agencies     886       890       860       816     850  
  State and political subdivisions, tax-free     38       20       7       7     12  
  State and political subdivisions, taxable     1,027       1,024       993       1,016     978  
  Other securities     240       195       154       166     120  
    Total interest and dividends on securities     2,191       2,129       2,014       2,005     1,960  
Interest on interest-bearing deposits in other banks     12       23       34       24     32  
      Total interest income     11,234       10,440       10,121       9,605     9,183  
Interest expense                    
Interest on deposits     1,134       1,067       1,008       943     826  
Interest on borrowed funds                    
  Interest on Federal Home Loan Bank of Pittsburgh advances     707       352       175       163     130  
  Interest on subordinated debentures     57       56       57       97     114  
  Interest on junior subordinated debentures     99       87       81       77     73  
    Total interest on borrowed funds     863       495       313       337     317  
      Total interest expense     1,997       1,562       1,321       1,280     1,143  
Net interest income before provision for loan and lease losses     9,237       8,878       8,800       8,325     8,040  
Provision for loan and lease losses     880       720       283       543     421  
Net interest income after provision for loan and lease losses     8,357       8,158       8,517       7,782     7,619  
Non-interest income                    
Deposit service charges     747       702       756       728     728  
Net (loss) gain on the sale of securities     (4 )     -       259       367     693  
Net loss on equity securities     (7 )     (19 )     -       -     -  
Net gain on the sale of mortgage loans held for sale     51       49       63       106     110  
Net loss on the sale of other repossessed assets     -       -       -       -     (10 )
Net gain on the sale of SBA guaranteed loans     71       251       -       23     56  
Net (loss) gain on the sale of other real estate owned     (7 )     37       22       -     6  
Loan-related fees     76       84       132       96     65  
Income from bank-owned life insurance     138       134       128       129     135  
Other         464       281       558       265     240  
      Total non-interest income     1,529       1,519       1,918       1,714     2,023  
Non-interest expense                    
Salaries and employee benefits     3,485       3,666       4,092       3,247     3,298  
Occupancy expense     526       603       538       394     586  
Equipment expense     323       314       435       474     446  
Data processing expense     647       648       521       506     509  
Regulatory assessments     196       201       189       160     164  
Bank shares tax     222       267       38       252     252  
Professional fees     196       296       294       206     180  
Insurance expense     133       135       134       132     128  
Other operating expenses     1,238       1,102       1,563       1,026     1,377  
      Total non-interest expense     6,966       7,232       7,804       6,397     6,940  
Income before income taxes     2,920       2,445       2,631       3,099     2,702  
Income tax expense     508       426       8,745       827     910  
Net income (loss)   $ 2,412     $ 2,019     $ (6,114 )   $ 2,272   $ 1,792  
                           
Income (loss) per share                    
  Basic     $ 0.14     $ 0.12     $ (0.36 )   $ 0.14   $ 0.11  
  Diluted     $ 0.14     $ 0.12     $ (0.36 )   $ 0.14   $ 0.11  
                           
Cash dividends declared per common  share   $ 0.04     $ 0.04     $ 0.04     $ 0.03   $ 0.03  
Weighted average number of shares outstanding:                    
  Basic       16,792,812       16,763,401       16,757,963       16,757,963     16,716,899  
  Diluted       16,819,286       16,789,336       16,774,209       16,777,671     16,736,995  
 
 

 

FNCB Bancorp, Inc.
Consolidated Balance Sheets
                         
    Jun 30,   Mar 31,   Dec 31,   Sept 30,   Jun 30,
(in thousands)   2018   2018   2017   2017    2017 
Assets                                            
Cash and cash equivalents:                                        
  Cash and due from banks   $ 16,500     $ 12,323     $ 22,755     $ 24,881     $ 24,169  
  Interest-bearing deposits in other banks     4,624       1,873       14,991       18,929       1,991  
    Total cash and cash equivalents     21,124       14,196       37,746       43,810       26,160  
Securities available for sale, at fair value     290,863       298,314       289,459       281,102       282,106  
Equity securities, at fair value     892       899       918       925       924  
Restricted stock, at cost     7,964       5,703       2,763       2,460       2,292  
Loans held for sale     629       366       1,095       147       617  
Loans, net of net deferred costs and unearned income     855,391       808,202       770,643       759,489       728,141  
Allowance for loan and lease losses     (9,459 )     (9,562 )     (9,034 )     (8,862 )     (8,469 )
Net loans       845,932       798,640       761,609       750,627       719,672  
Bank premises and equipment, net     13,900       12,870       10,388       10,482       10,715  
Accrued interest receivable     3,654       3,430       3,234       3,203       2,784  
Bank-owned life insurance     30,732       30,594       30,460       30,332       30,203  
Other real estate owned     787       579       1,023       1,088       1,183  
Other assets       22,810       23,669       23,610       32,935       31,083  
      Total assets   $ 1,239,287     $ 1,189,260     $ 1,162,305     $ 1,157,111     $ 1,107,739  
                                               
Liabilities                                          
Deposits:                                          
  Demand (non-interest-bearing)   $ 177,388     $ 172,896     $ 176,325     $ 162,426     $ 147,878  
  Interest-bearing     777,855       782,357       826,123       820,786       784,872  
    Total deposits     955,243       955,253       1,002,448       983,212       932,750  
Borrowed funds:                                        
  Federal Home Loan Bank of Pittsburgh advances     174,251       121,485       44,968       45,350       44,903  
  Subordinated debentures     5,000       5,000       5,000       5,000       10,000  
  Junior subordinated debentures     10,310       10,310       10,310       10,310       10,310  
    Total borrowed funds     189,561       136,795       60,278       60,660       65,213  
Accrued interest payable     331       284       241       244       235  
Other liabilities     7,027       10,190       10,147       15,513       12,797  
    Total liabilities     1,152,162       1,102,522       1,073,114       1,059,629       1,010,995  
                                               
Shareholders' equity                                        
Preferred stock     -       -       -       -       -  
Common stock     21,021       20,958       20,947       20,947       20,947  
Additional paid-in capital     63,374       63,335       63,210       63,143       63,076  
Retained earnings     9,792       8,057       6,779       13,282       11,517  
Accumulated other comprehensive (loss) income     (7,062 )     (5,612 )     (1,745 )     110       1,204  
    Total shareholders' equity     87,125       86,738       89,191       97,482       96,744  
      Total liabilities and shareholders' equity   $ 1,239,287     $ 1,189,260     $ 1,162,305     $ 1,157,111     $ 1,107,739  
                                         
                                         

 

FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
                           
          Three Months Ended
          Jun 30,   Mar 31,   Dec 31,   Sept 30,   Jun 30,
(dollars in thousands)   2018   2018   2017   2017   2017
Interest income                                        
Loans:                                            
Loans - taxable   $ 8,631     $ 7,934     $ 7,736     $ 7,266     $ 6,873  
Loans - tax-free     506       448       511       470       482  
  Total loans     9,137       8,382       8,247       7,736       7,355  
Securities:                                          
Securities, taxable     2,153       2,109       2,007       1,998       1,948  
Securities, tax-free     48       25       11       11       18  
  Total interest and dividends on securities     2,201       2,134       2,018       2,009       1,966  
Interest-bearing deposits in other banks     12       23       34       24       32  
      Total interest income     11,350       10,539       10,299       9,769       9,353  
Interest expense                                        
Deposits       1,134       1,067       1,008       943       826  
Borrowed funds     863       495       313       337       317  
            1,997       1,562       1,321       1,280       1,143  
      Net interest income   $ 9,353     $ 8,977     $ 8,978     $ 8,489     $ 8,210  
                                               
Average balances                                        
Earning assets:                                        
Loans:                                            
Loans - taxable   $ 784,427     $ 748,375     $ 725,988     $ 700,729     $ 682,426  
Loans - tax-free     49,855       44,383       41,548       38,109       40,190  
  Total loans     834,282       792,758       767,536       738,838       722,616  
Securities:                                          
Securities, taxable     305,627       301,032       292,307       290,348       287,133  
Securities, tax-free     4,677       2,325       600       600       1,105  
  Total securities     310,304       303,357       292,907       290,948       288,238  
Interest-bearing deposits in other banks     2,629       3,825       12,215       7,499       12,676  
      Total interest-earning assets     1,147,215       1,099,940       1,072,658       1,037,285       1,023,530  
Non-earning assets     74,188       76,114       89,801       92,603       90,672  
      Total assets   $ 1,221,403     $ 1,176,054     $ 1,162,459     $ 1,129,888     $ 1,114,202  
Interest-bearing liabilities:                                        
Deposits     $ 790,233     $ 806,494     $ 824,680     $ 792,649     $ 783,672  
Borrowed funds     163,547       102,676       67,476       73,168       72,347  
      Total interest-bearing liabilities     953,780       909,170       892,156       865,817       856,019  
Demand deposits     173,037       169,450       162,135       156,483       152,974  
Other liabilities     8,444       10,663       11,079       10,325       10,633  
Shareholders' equity     86,142       86,771       97,089       97,263       94,576  
  Total liabilities and shareholders' equity   $ 1,221,403     $ 1,176,054     $ 1,162,459     $ 1,129,888     $ 1,114,202  
                                           
Yield/Cost                                          
Earning assets:                                        
Loans:                                            
Interest and fees on loans - taxable     4.40 %     4.24 %     4.26 %     4.15 %     4.03 %
Interest and fees on loans - tax-free     4.06 %     4.04 %     4.92 %     4.93 %     4.80 %
  Total loans     4.38 %     4.23 %     4.30 %     4.19 %     4.07 %
Securities:                                          
Securities, taxable     2.82 %     2.80 %     2.75 %     2.75 %     2.71 %
Securities, tax-free     4.11 %     4.30 %     7.33 %     7.33 %     6.51 %
  Total securities     2.84 %     2.81 %     2.76 %     2.76 %     2.73 %
Interest-bearing deposits in other banks     1.83 %     2.41 %     1.11 %     1.28 %     1.01 %
      Total earning assets     3.96 %     3.83 %     3.84 %     3.77 %     3.66 %
Interest-bearing liabilities:                                        
Interest on deposits     0.57 %     0.53 %     0.49 %     0.48 %     0.42 %
Interest on borrowed funds     2.11 %     1.93 %     1.86 %     1.84 %     1.75 %
      Total interest-bearing liabilities     0.84 %     0.69 %     0.59 %     0.59 %     0.53 %
      Net interest spread     3.12 %     3.15 %     3.25 %     3.18 %     3.13 %
  Net interest margin     3.26 %     3.26 %     3.35 %     3.27 %     3.21 %
                                           
                                           

 

FNCB Bancorp, Inc.
Asset Quality Data
                       
                       
      Jun 30,   Mar 31,   Dec 31,   Sept 30,   Jun 30,
(in thousands)   2018   2018   2017   2017   2017
At period end                              
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)   $ 3,469   $ 2,403   $ 2,578   $ 2,642   $ 3,681
Loans past due 90 days or more and still accruing     -     -     -     -     -
  Total non-performing loans     3,469     2,403     2,578     2,642     3,681
Other real estate owned (OREO)     787     579     1,023     1,088     1,183
Other non-performing assets     1,900     1,900     1,900     1,900     1,900
  Total non-performing assets   $ 6,156   $ 4,882   $ 5,501   $ 5,630   $ 6,764
                                 
Accruing TDRs    $ 8,741   $ 8,797   $ 9,299   $ 9,283   $ 9,306
                                 
                                 
For the three months ended                              
Allowance for loan and lease losses                              
Beginning balance   $ 9,562   $ 9,034   $ 8,862   $ 8,469   $ 8,306
Loans charged-off     1,310     400     310     377     465
Recoveries of charged-off loans     327     208     199     227     207
Net charge-offs      983     192     111     150     258
Provision for loan and lease losses     880     720     283     543     421
Ending balance   $ 9,459   $ 9,562   $ 9,034   $ 8,862   $ 8,469
                                 

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