FNCB Bancorp (FNCB) 8-K First National Community Bancorp, Inc.Reports

Exhibit 99.1

FOR IMMEDIATE RELEASE

First National Community Bancorp, Inc.Reports

First Quarter 2016 Net Income

Dunmore, Pa., April 29, 2016/Globe Newswire/—First National Community Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), announced operating results for the quarter ended March 31, 2016. FNCB reported net income of $1.1 million, or $0.07 per basic and diluted share. Net income for the comparable period of 2015 was $3.5 million, or $0.21 per basic and diluted share. The $2.4 million decrease in first quarter earnings reflected lower non-interest income, a provision for loan and lease losses in 2016 versus a credit for loan and lease losses in 2015, partially offset by an increase in net interest income. Annualized return on average assets and return on average equity were 0.42% and 5.15%, respectively, for the three months ended March 31, 2016, compared to 1.45% and 26.34%, respectively, for the same three months of 2015. FNCB paid holders of its common stock a dividend of $0.02 per share for the first quarter of 2016. FNCB did not pay a dividend for the first quarter of 2015.

Performance Highlights:

● Paid a dividend of $0.02 per share in the first quarter of 2016, the first quarterly dividend payment since the fourth quarter of 2009;

● Year over year growth of $1.3 million, or 20.0%, in net interest income;

● 26 basis point improvement in tax-equivalent net interest margin in the first quarter of 2016 compared to same quarter of 2015;

● Year over year growth of 9.4% in average earning assets; and

● Paid $10.8 million in deferred and accrued interest on subordinated debt.

“We are pleased with FNCB’s first quarter results, which reflected normalized core earnings growth, net interest margin improvement and strong earning asset growth” stated Steven R. Tokach, President and Chief Executive Officer. “In addition, we were successful in achieving two significant goals during the first quarter. We were able to make our subordinated noteholders whole as to deferred interest, which significantly improved our leverage position, and provide a return to our loyal shareholders through the payment of a first quarter dividend. We sincerely appreciate the ongoing trust and support of these stakeholders,” concluded Mr. Tokach.

Summary Results forthe Three Months Ended March 31, 2016

Net interest income before the provision for loan and lease losses was $7.5 million for the first three months of 2016, an increase of $1.3 million, or 20.0%, compared to $6.3 million for the same period in 2015. Tax-equivalent interest income increased $0.8 million, or 10.7%, to $8.7 million for the three-month period ended March 31, 2016 compared to $7.9 million in 2015. The increase primarily reflected an $84.9 million, or 9.4%, increase in average earning assets. Specifically, average loans grew $56.8 million, or 8.4%, comparing the first quarters of 2016 and 2015, while average investment securities increased $59.1 million, or 29.8%. Also positively impacting net interest income was a 27 basis point decrease in the cost of funds to 0.48% for the first three months of 2016 from 0.75% for the same three months of 2015, which was the primary factor leading to a $0.4 million reduction in interest expense. Causing the greatest impact in funding costs was a 168 basis point decrease in the cost of borrowed funds, which resulted from a modification of the interest rate on FNCB’s subordinated notes from 9.00% to 4.50% mid-2015. Partially offsetting the impact of the reduction in funding costs was an $81.5 million, or 10.8%, increase in average interest-bearing liabilities. The tax-equivalent net interest margin for the three months ended March 31, 2016 was 3.11%, an improvement of 26 basis points from 2.85% for the same period in 2015.

For the three months ended March 31, 2016 non-interest income totaled $1.3 million, a decrease of $2.1 million, or 61.1%, compared to $3.4 million for the same three months of 2015. The change resulted primarily from a decrease in net gains on the sale of securities of $2.1 million to $103 thousand in 2016 from $2.2 million in 2015. In addition, FNCB experienced a decrease of $40 thousand in other income, and a net loss of $5 thousand on the sale of OREO compared to a net gain of $5 thousand in 2015. Partially offsetting these decreases were increases in net gains on the sale of mortgage loans of $28 thousand, service charges on deposits of $27 thousand, loan-related fees of $17 thousand and income from bank-owned life insurance of $11 thousand.

Non-interest expense remained relatively flat comparing the three months ended March 31, 2016 and 2015, increasing by $22 thousand, or 0.3%. The increases were primarily a rise in salaries and benefits expense of $375 thousand, or 11.94%, along with a $74 thousand increase in data processing expenses and a $39 thousand increase in equipment expense. The increase in salaries and benefits expense resulted from additions to staff, coupled with a 30.8% increase in health insurance costs. The recent conversion to a new core operating system in the fourth quarter of 2015 and other planned improvements to FNCB’s technology infrastructure caused the increase in data processing expense and equipment expense, specifically maintenance contract costs and depreciation. These increases were mostly offset by decreases in regulatory assessments of $172 thousand, or 42.0%, occupancy expenses of $140 thousand, insurance expenses of $70 thousand, expenses of other real estate owned of $54 thousand, and legal expenses of $43 thousand.

Improved Asset Quality

FNCB’s asset quality continued to improve through March 31, 2016, a result of the effective management of problem credits and delinquent loans. Total non-performing loans decreased $219 thousand, or 5.8%, to $3.6 million at March 31, 2016 from December 31, 2015. The ratio of non-performing loans to total loans improved 3 basis points to 0.49% at March 31, 2016, compared to 0.52% at December 31, 2015. The allowance for loan and lease losses as a percentage of gross loans was 1.19% at March 31, 2016 versus 1.20% at the end of 2015. FNCB’s ratio of total delinquent loans to total loans at March 31, 2016 was 0.82%, a 2 basis point improvement from 0.84% at December 31, 2015. Each of these asset quality metrics compare favorably to industry peer.

Financial Condition

FNCB’s total assets were relatively stable, decreasing $5.6 million, or 0.5%, to $1.085 billion at March 31, 2016 from $1.091 billion at December 31, 2015. The balance sheet change primarily reflected reductions of $5.4 million in loans, net of the ALLL, $2.4 million in FHLB of Pittsburgh stock, $1.3 million in OREO and $2.9 million in cash and cash equivalents, which were mostly offset by an increase in available-for-sale securities of $9.8 million. Total deposits grew $61.6 million, or 7.5%, due primarily to the attainment of a new municipal deposit relationship, along with an influx of public deposits related to the release of state government funds in early 2016 as a result of the state budget impasse. The deposit growth was used to repay borrowings from the FHLB of Pittsburgh, which declined $61.3 million, or 45.1%, when comparing March 31, 2016 and December 31, 2015. In addition, FNCB repaid all accrued interest totaling $10.8 million that had been deferred on the subordinated notes for the period September 1, 2010 through May 31, 2015.

Total shareholders’ equity increased $5.9 million, or 6.8%, to $92.0 million at March 31, 2016 from $86.2 million at December 31, 2015. The capital improvement resulted primarily from a $5.0 million increase in accumulated other comprehensive income from the appreciation in the fair value of available-for-sale securities, net of tax effects, coupled with net income of $1.1 million for the first quarter of 2015. Partially offsetting these increases was $0.3 million in dividends paid to common shareholders.

Availability of Filings

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Report on form 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. All of FNCB’s filings with the Securities and Exchange Commission are also available on the Investor Relations page of FNCB’s website,www.fncb.com/investorrelations.

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, visitwww.fncb.com.

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                    

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained inour filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith byus 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 causeFNCB’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 ofFNCB 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 ofFNCB and fluctuations in the value ofFNCB’s share price;the effectiveness ofFNCB’s system of internal controls; the ability ofFNCB 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 uponour information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success ofFNCB 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 ofFNCB 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 thatFNCB 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]

First National Community Bancorp, Inc.

Selected Financial Data

	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
	2016			2015			2015			2015			2015
Per share data:
Net income (fully diluted)	$	0.07		$	1.77		$	0.14		$	0.05		$	0.21
Cash dividends declared	$	0.02		$	-		$	-		$	-		$	-
Book value	$	5.57		$	5.22		$	3.61		$	3.33		$	3.38
Tangible book value	$	5.56		$	5.21		$	3.60		$	3.31		$	3.36
Market value:
High	$	6.90		$	5.50		$	6.05		$	6.55		$	5.40
Low	$	5.11		$	5.06		$	5.02		$	5.15		$	5.25
Close	$	6.12		$	5.25		$	5.19		$	6.05		$	5.26
Common shares outstanding		16,530,432			16,514,245			16,500,945			16,500,945			16,500,945
Selected ratios:
Annualized return on average assets		0.42	%		10.99	%		0.91	%		0.34	%		1.45	%
Annualized return on average shareholders' equity		5.15	%		192.68	%		16.38	%		5.89	%		26.34	%
Tier I leverage ratio		7.08	%		7.27	%		6.57	%		6.64	%		6.57	%
Total risk-based capital to risk-adjusted assets		11.81	%		11.79	%		11.20	%		11.60	%		12.96	%
Average shareholders' equity to average total assets		8.15	%		5.70	%		5.55	%		5.73	%		5.52	%
Yield on earning assets (FTE)		3.52	%		3.56	%		3.50	%		3.45	%		3.48	%
Cost of funds		0.48	%		0.48	%		0.51	%		0.73	%		0.75	%
Net interest spread (FTE)		3.04	%		3.08	%		2.98	%		2.72	%		2.73	%
Net interest margin (FTE)		3.11	%		3.15	%		3.07	%		2.85	%		2.85	%
Total delinquent loans/total loans		0.82	%		0.84	%		1.29	%		1.34	%		1.10	%
Allowance for loan and lease losses/total loans		1.19	%		1.21	%		1.36	%		1.51	%		1.63	%
Non-performing loans/total loans		0.49	%		0.52	%		0.93	%		0.84	%		0.77	%
Net charge-offs/average loans		0.47	%		0.02	%		0.04	%		0.14	%		0.01	%

First National Community Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

	Three Months Ended
	March 31,
(in thousands, except share data)	2016			2015
Interest income
Interest and fees on loans	$	6,969		$	6,472
Interest and dividends on securities
U.S. government agencies		930			971
State and political subdivisions, tax-free		10			50
State and political subdivisions, taxable		535			26
Other securities		96			157
Total interest and dividends on securities		1,571			1,204
Interest on interest-bearing deposits in other banks		4			21
Total interest income		8,544			7,697
Interest expense
Interest on deposits		642			683
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		148			120
Interest on subordinated debentures		159			563
Interest on junior subordinated debentures		57			49
Total interest on borrowed funds		364			732
Total interest expense		1,006			1,415
Net interest income before provision (credit) for loan and lease losses		7,538			6,282
Provision (credit) for loan and lease losses		696			(494	)
Net interest income after provision (credit) for loan and lease losses		6,842			6,776
Non-interest income
Deposit service charges		701			674
Net gain on the sale of securities		103			2,224
Net gain on the sale of mortgage loans held for sale		68			40
Net (loss) gain on the sale of other real estate owned		(5	)		5
Loan-related fees		107			90
Income from bank-owned life insurance		146			135
Other		211			251
Total non-interest income		1,331			3,419
Non-interest expense
Salaries and employee benefits		3,514			3,139
Occupancy expense		493			633
Equipment expense		423			384
Data processing expense		523			448
Regulatory assessments		237			409
Bank shares tax		241			217
Expense of other real estate owned		46			100
Legal expense		120			163
Professional fees		287			301
Insurance expense		128			198
Other operating expenses		792			790
Total non-interest expense		6,804			6,782
Income before income taxes		1,369			3,413
Income tax expense (benefit)		226			(62	)
Net income	$	1,143		$	3,475
Income per share
Basic	$	0.07		$	0.21
Diluted	$	0.07		$	0.21
Cash dividends declared per common share	$	0.02		$	-
Weighted average number of shares outstanding:
Basic		16,519,759			16,490,111
Diluted		16,519,759			16,490,111

First National Community Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			Jun 30,		Mar 31,
(in thousands, except share data)	2016			2015			2015			2015		2015
Interest income
Interest and fees on loans	$	6,969		$	7,032		$	6,693		$	6,475	$	6,472
Interest and dividends on securities
U.S. government agencies		930			992			1,061			1,012		971
State and political subdivisions, tax-free		10			18			19			22		50
State and political subdivisions, taxable		535			458			324			97		26
Other securities		96			102			92			82		157
Total interest and dividends on securities		1,571			1,570			1,496			1,213		1,204
Interest on interest-bearing deposits in other banks		4			4			10			11		21
Total interest income		8,544			8,606			8,199			7,699		7,697
Interest expense
Interest on deposits		642			628			677			643		683
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		148			147			128			119		120
Interest on subordinated debentures		159			160			162			565		563
Interest on junior subordinated debentures		57			56			50			51		49
Total interest on borrowed funds		364			363			340			735		732
Total interest expense		1,006			991			1,017			1,378		1,415
Net interest income before provision (credit) for loan and lease losses		7,538			7,615			7,182			6,321		6,282
Provision (credit) for loan and lease losses		696			(1,005	)		(191	)		345		(494	)
Net interest income after provision (credit) for loan and lease losses		6,842			8,620			7,373			5,976		6,776
Non-interest income
Deposit service charges		701			742			799			745		674
Net gain (loss) on the sale of securities		103			(6	)		4			74		2,224
Net gain on the sale of mortgage loans held for sale		68			223			13			16		40
Net (loss) gain on the sale of other real estate owned		(5	)		17			129			11		5
Loan-related fees		107			152			94			106		90
Income from bank-owned life insurance		146			149			145			135		135
Legal settlements		-			-			-			184		-
Other		211			180			195			274		251
Total non-interest income		1,331			1,457			1,379			1,545		3,419
Non-interest expense
Salaries and employee benefits		3,514			4,228			3,240			3,203		3,139
Occupancy expense		493			619			500			532		633
Equipment expense		423			423			408			442		384
Data processing expense		523			556			471			501		448
Regulatory assessments		237			239			203			99		409
Bank shares tax		241			53			217			218		217
Expense of other real estate owned		46			62			91			147		100
Legal expense		120			106			80			88		163
Professional fees		287			234			193			286		301
Insurance expense		128			131			128			202		198
Legal settlement		-			777			-			-		-
Other operating expenses		792			1,159			884			962		790
Total non-interest expense		6,804			8,587			6,415			6,680		6,782
Income before income taxes		1,369			1,490			2,337			841		3,413
Income tax expense (benefit)		226			(27,719	)		-			22		(62	)
Net income	$	1,143		$	29,209		$	2,337		$	819	$	3,475
Income per share
Basic	$	0.07		$	1.77		$	0.14		$	0.05	$	0.21
Diluted	$	0.07		$	1.77		$	0.14		$	0.05	$	0.21
Cash dividends declared per common share	$	0.02		$	-		$	-		$	-	$	-
Weighted average number of shares outstanding:
Basic		16,519,759			16,506,294			16,500,945			16,500,945		16,490,111
Diluted		16,519,759			16,506,294			16,500,945			16,500,945		16,490,111

First National Community Bancorp, Inc.

Consolidated Balance Sheets

	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)	2016			2015			2015			2015			2015
Assets
Cash and cash equivalents:
Cash and due from banks	$	16,367		$	19,544		$	20,631		$	22,443		$	19,985
Interest-bearing deposits in other banks		1,847			1,539			10,383			49,872			17,390
Total cash and cash equivalents		18,214			21,083			31,014			72,315			37,375
Securities available for sale, at fair value		263,523			253,773			249,228			226,539			204,635
Stock in Federal Home Loan Bank of Pittsburgh at cost		3,932			6,344			4,298			2,684			3,061
Loans held for sale		455			683			4,634			138			-
Loans, net of net deferred costs and unearned income		728,158			733,716			723,166			683,588			672,165
Allowance for loan and lease losses		(8,635	)		(8,790	)		(9,825	)		(10,328	)		(10,944	)
Net loans		719,523			724,926			713,341			673,260			661,221
Bank premises and equipment, net		10,904			11,193			11,258			11,059			11,221
Accrued interest receivable		2,854			2,475			2,618			2,174			2,118
Intangible assets		96			137			179			220			261
Bank-owned life insurance		29,527			29,381			29,232			29,087			28,952
Other real estate owned		1,806			3,154			1,618			1,740			2,369
Other assets		34,181			37,469			7,799			8,455			9,028
Total assets	$	1,085,015		$	1,090,618		$	1,055,219		$	1,027,671		$	960,241
Liabilities
Deposits:
Demand (non-interest-bearing)	$	162,882		$	154,531		$	152,038		$	144,075		$	134,993
Interest-bearing		720,243			667,015			700,004			721,293			640,118
Total deposits		883,125			821,546			852,042			865,368			775,111
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances		74,511			135,802			93,058			57,771			67,612
Subordinated debentures		14,000			14,000			14,000			14,000			25,000
Junior subordinated debentures		10,310			10,310			10,310			10,310			10,310
Total borrowed funds		98,821			160,112			117,368			82,081			102,922
Accrued interest payable		333			11,165			11,187			11,344			10,788
Other liabilities		10,695			11,617			14,989			13,935			15,678
Total liabilities		992,974			1,004,440			995,586			972,728			904,499
Shareholders' equity
Preferred stock		-			-			-			-			-
Common stock		20,663			20,643			20,626			20,626			20,626
Additional paid-in capital		62,069			62,059			61,939			61,870			61,801
Retained earnings (accumulated deficit)		4,527			3,714			(25,495	)		(27,832	)		(28,651	)
Accumulated other comprehensive income (loss)		4,782			(238	)		2,563			279			1,966
Total shareholders' equity		92,041			86,178			59,633			54,943			55,742
Total liabilities and shareholders’ equity	$	1,085,015		$	1,090,618		$	1,055,219		$	1,027,671		$	960,241

First National Community Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(dollars in thousands)	2016			2015			2015			2015			2015
Interest income
Loans:
Loans - taxable	$	6,603		$	6,694		$	6,371		$	6,148		$	6,148
Loans - tax-free		555			512			488			495			491
Total loans		7,158			7,206			6,859			6,643			6,639
Securities:
Securities, taxable		1,561			1,552			1,477			1,191			1,154
Securities, tax-free		15			27			29			33			76
Total interest and dividends on securities		1,576			1,579			1,506			1,224			1,230
Interest-bearing deposits in other banks		4			4			10			11			21
Total interest income		8,738			8,789			8,375			7,878			7,890
Interest expense
Deposits		642			628			677			643			683
Borrowed funds		364			363			340			735			732
Total interest expense		1,006			991			1,017			1,378			1,415
Net interest income	$	7,732		$	7,798		$	7,358		$	6,500		$	6,475
Average balances
Earning assets:
Loans:
Loans - taxable	$	683,198		$	685,795		$	660,709		$	637,005		$	633,731
Loans - tax-free		48,433			43,429			41,746			42,225			41,125
Total loans		731,631			729,224			702,455			679,230			674,856
Securities:
Securities, taxable		256,555			251,108			241,799			211,833			194,268
Securities, tax-free		1,107			1,713			1,707			2,007			4,283
Total securities		257,662			252,821			243,506			213,840			198,551
Interest-bearing deposits in other banks		3,746			6,797			12,185			18,984			34,708
Total interest-earning assets		993,039			988,842			958,146			912,054			908,115
Non-earning assets		101,958			65,633			62,063			62,254			61,476
Total assets	$	1,094,997		$	1,054,475		$	1,020,209		$	974,308		$	969,591
Interest-bearing liabilities:
Deposits	$	725,369		$	702,783		$	690,039		$	646,656		$	658,193
Borrowed funds		113,386			119,281			105,109			108,234			99,046
Total interest-bearing liabilities		838,755			822,064			795,148			754,890			757,239
Demand deposits		146,994			146,457			143,140			137,674			132,316
Other liabilities		19,967			25,811			25,303			25,964			26,525
Shareholders' equity		89,281			60,143			56,618			55,780			53,511
Total liabilities and shareholders' equity	$	1,094,997		$	1,054,475		$	1,020,209		$	974,308		$	969,591
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable		3.87	%		3.90	%		3.86	%		3.86	%		3.88	%
Interest and fees on loans - tax-free		4.58	%		4.72	%		4.67	%		4.69	%		4.78	%
Total loans		3.91	%		3.95	%		3.91	%		3.91	%		3.94	%
Securities:
Securities, taxable		2.43	%		2.47	%		2.44	%		2.25	%		2.38	%
Securities, tax-free		5.48	%		6.37	%		6.75	%		6.64	%		7.10	%
Total securities		2.45	%		2.50	%		2.47	%		2.29	%		2.48	%
Interest-bearing deposits in other banks		0.43	%		0.24	%		0.33	%		0.23	%		0.24	%
Total earning assets		3.52	%		3.56	%		3.50	%		3.45	%		3.48	%
Interest-bearing liabilities:
Interest on deposits		0.35	%		0.36	%		0.39	%		0.40	%		0.42	%
Interest on borrowed funds		1.28	%		1.22	%		1.29	%		2.72	%		2.96	%
Total interest-bearing liabilities		0.48	%		0.48	%		0.51	%		0.73	%		0.75	%
Net interest spread		3.04	%		3.08	%		2.98	%		2.72	%		2.73	%
Net interest margin		3.11	%		3.15	%		3.07	%		2.85	%		2.85	%

First National Community Bancorp, Inc.

Asset Quality Data

	Mar 31,		Dec 31,			Sept 30,			Jun 30,		Mar 31,
(in thousands)	2016		2015			2015			2015		2015
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)	$	3,569	$	3,788		$	6,741		$	5,757	$	5,184
Loans past due 90 days or more and still accruing		-		-			-			-		-
Total non-performing loans		3,569		3,788			6,741			5,757		5,184
Other real estate owned (OREO)		1,806		3,154			1,618			1,740		2,369
Total non-performing loans and OREO	$	5,375	$	6,942		$	8,359		$	7,497	$	7,553
Accruing TDRs	$	4,623	$	4,982		$	5,065		$	5,289	$	5,807
For the three months ended
Allowance for loan and lease losses
Beginning balance	$	8,790	$	9,825		$	10,328		$	10,944	$	11,520
Loans charged-off		1,148		198			968			1,192		277
Recoveries of charged-off loans		297		168			656			231		195
Net charge-offs		851		30			312			961		82
Provision (credit) for loan and lease losses		696		(1,005	)		(191	)		345		(494	)
Ending balance	$	8,635	$	8,790		$	9,825		$	10,328	$	10,944