Exhibit 99.1
FOR IMMEDIATE RELEASE
FNCB Bancorp, Inc.Reports
Third Quarter 2016 Net Income
Dunmore, Pa., October 28, 2016/Globe Newswire/—FNCB Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), announced net income for the three months ended September 30, 2016 of $2.0 million, or $0.12 per basic and diluted share. Net income for the comparable period of 2015 was $2.3 million, or $0.14 per basic and diluted share. The $0.3 million, or 13.7%, decrease in third quarter earnings primarily reflected increases in income tax expense and non-interest expense, partially mitigated by higher net interest income. Net income for the nine months ended September 30, 2016 was $4.8 million, or $0.29 per basic and diluted share, compared to net income of $6.6 million, or $0.40 per basic and diluted share, for the same period of 2015. Annualized return on average assets was 0.73% and 0.58%, respectively, for the three and nine months ended September 30, 2016, compared to 0.91% and 0.90%, for the respective periods of 2015. Annualized return on average equity was 8.46% and 6.95%, respectively, for the three- and nine-month periods ended September 30, 2016, compared to 16.38% and 15.96%, respectively, for the comparable periods in 2015. FNCB paid holders of its common stock dividends of $0.02 for the third quarter of 2016, totaling $0.06 per share for the year-to-date period of 2016. FNCB did not pay a dividend during the nine months ended September 30, 2015.
Effective October 17, 2016, the corporate name, formerly First National Community Bancorp, Inc., changed to FNCB Bancorp, Inc., following the completion of a charter conversion of FNCB Bank, the Company’s wholly-owned subsidiary, from a national bank to a Pennsylvania state bank.
Performance Highlights:
● | Year-over-year deposit growth of 9.3%; |
● | Year-over-year growth in net interest income of $3.0 million, or 15.4%; |
● | 7 basis point improvement in tax-equivalent net interest margin comparing the third quarters of 2016 and 2015; and |
● | 11.8% decrease in non-performing loans from prior quarter end; 64.1% decrease from one year ago. |
“We are pleased with the strong, double-digit growth in net interest income given this very challenging rate environment,” stated Gerard A. Champi, President and Chief Executive Officer. “In addition, through the diligent efforts of our entire banking team, we posted meaningful, organic deposit growth, while maintaining funding costs, during the third quarter of 2016. The launch of our new WOW ME suite of consumer checking and savings products earlier in the year has led to increases in personal demand deposits, while initiatives in our governmental banking, retail and commercial divisions resulted in strong deposit growth in public funds and small business accounts,” concluded Champi.
Summary Results forthe Three and Nine Months Ended September 30, 2016
Net interest income before (credit) provision for loan and lease losses was $7.7 million for the third quarter, an increase of $0.5 million compared to $7.2 million for the same quarter of 2015. The 6.9% increase in net interest income reflected strong growth in volume and yields on earning assets aided by stable funding costs. For the year-to-date period, net interest income grew $3.0 million, or 15.4%, to $22.8 million in 2016 from $19.8 million in 2015. The improvement for the year-to-date period resulted primarily from significant growth in earning assets, higher earning asset yields and reduced funding costs. Average earning assets grew $42.3 million, or 4.4%, and $69.9 million, or 7.5%, comparing the quarter and year-to-date periods ended September 30, 2016 and 2015, respectively. Tax-equivalent earning asset yields improved 8 basis points for the third quarter and 7 basis points for the nine months ended September 30, 2016 over the same periods of 2015. FNCB’s cost of funds increased 1 basis point comparing the third quarters of 2016 and 2015. However, comparing the nine-month periods, FNCB’s cost of funds decreased 16 basis points to 0.50% in 2016 from 0.66% in 2015. Causing the greatest impact in year-to-date funding costs was a 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% in mid-2015. The tax-equivalent net interest margin for third quarter 2016 was 3.14%, which reflected no change from the second quarter of 2016, and a 7 basis point increase over the margin for the same prior year period. The year-to-date tax-equivalent net interest margin was 3.13% in 2016, an improvement of 20 basis points compared to 2.93% in 2015.
Non-interest income was $1.4 million for both three-month periods ended September 30, 2016 and 2015. Higher net gains on the sale of mortgage loans, net gains on the sale of SBA guaranteed loans and other income were offset by reductions in service charges, loan-related fees and net gains on the sale of other real estate owned. For the nine months ended September 30, 2016, non-interest income totaled $4.8 million, a decrease of $1.5 million, or 24.2%, compared to $6.3 million for the same nine months of 2015. The change resulted primarily from a $1.3 million decrease in net gains on the sale of securities, coupled with a $0.2 million reduction in other income related to legal settlements received in 2015.
For the three months ended September 30, 2016, non-interest expense totaled $6.6 million, an increase of $0.1 million, or 2.2%, from $6.4 million for the same three months of 2015. The increase for the third quarter 2016 was due primarily to advertising expense related to new deposit product offerings. On a year-to-date basis, non-interest expense increased $0.5 million, or 2.5%, to $20.4 million in 2016 from $19.9 million in 2015. The increase in non-interest expense for the nine months ended September 30, 2016 as compared to the same period of 2015 was due primarily to increases in salaries and benefits expenses of $0.8 million due to higher health insurance costs, partially offset by a $0.4 million reduction in occupancy expense.
Asset Quality
FNCB continues to realize an improvement in asset quality as total non-performing loans decreased $0.3 million, or 11.8%, to $2.4 million at September 30, 2016 from $2.7 million at June 30, 2016, and $1.4 million, or 36.2%, from December 31, 2015. The ratio of non-performing loans to total loans was 0.33% at September 30, 2016 compared to 0.37% at June 30, 2016 and 0.52% at December 31, 2015. (At June 30, 2016, the most recent data available, the FDIC average for commercial banks with assets between $1.0 billion and $3.0 billion was 0.79%). The allowance for loan and lease losses as a percentage of gross loans was 1.17% at September 30, 2016, which was unchanged compared to the prior quarter end, and 1.21% at the end of 2015. (The above described FDIC peer group average was 1.22% at June 30, 2016.)
Financial Condition
Total assets increased $31.0 million, or 2.8%, to $1.122 billion at September 30, 2016 from $1.091 billion at December 31, 2015. The change in total assets primarily resulted from an increase of $36.3 million in cash and cash equivalents. Total deposits increased $109.4 million, or 13.3%, to $931.0 million at September 30, 2016 from $821.5 million at year-end 2015. The deposit growth resulted primarily from a cyclical influx of public funds from seasonal tax payments during the third quarter. In addition, deposit gathering initiatives in FNCB’s commercial and governmental banking units, coupled with the new WOW ME product offering also favorably impacted deposit growth.The inflow of cash from deposit growth was used to repay borrowings from the FHLB of Pittsburgh, which declined $77.0 million, or 56.7%, when comparing September 30, 2016 and December 31, 2015. In addition, accrued interest payable decreased $10.9 million, or 97.4%, as FNCB repaid in entirety all accrued interest that had previously been deferred on the subordinated debentures in the first quarter of 2016. Payoffs of several large commercial loan relationships outpaced demand, which resulted in a $4.1 million, or 0.6%, decline in loans, net of net deferred costs and unearned income. Investment securities available for sale increased $9.7 million, or 3.8%.
Total shareholders’ equity increased $10.4 million, or 12.1%, to $96.6 million at September 30, 2016 from $86.2 million at December 31, 2015. The capital improvement resulted primarily from a $6.2 million increase in accumulated other comprehensive income, which resulted from appreciation in the fair value of available-for-sale securities net of the tax impact of the appreciation, coupled with net income for the nine months ended September 30, 2016 of $4.8 million.
At September 30, 2016, FNCB’s total risk-based capital and Tier I leverage ratios were 12.37% and 7.52%, respectively. The respective ratios for the Bank at September 30, 2016 were 13.40% and 9.05%. The ratios well 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. Book value per share increased $0.59 per share, or 11.3%, to $5.81 at September 30, 2016 from $5.22 at December 31, 2015.
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, FNCB 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 FNCB Bank:
FNCB Bancorp, Inc. is the bank holding company of FNCB 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 had been operating under the name First National Community Bank from 1988 through June 2016. Effective June 30, 2016, the institution changed its name to FNCB Bank upon its conversion from a national charter to a Pennsylvania state charter. For more information about 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 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]
FNCB Bancorp, Inc.
Selected Financial Data
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Per share data: | ||||||||||||||||||||
Net income (fully diluted) | $ | 0.12 | $ | 0.10 | $ | 0.07 | $ | 1.77 | $ | 0.14 | ||||||||||
Cash dividends declared | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | - | $ | - | ||||||||||
Book value | $ | 5.81 | $ | 5.76 | $ | 5.57 | $ | 5.22 | $ | 3.61 | ||||||||||
Tangible book value | $ | 5.81 | $ | 5.75 | $ | 5.56 | $ | 5.21 | $ | 3.60 | ||||||||||
Market value: | ||||||||||||||||||||
High | $ | 6.00 | $ | 6.12 | $ | 6.90 | $ | 5.50 | $ | 6.05 | ||||||||||
Low | $ | 4.75 | $ | 5.50 | $ | 5.11 | $ | 5.06 | $ | 5.02 | ||||||||||
Close | $ | 5.00 | $ | 5.60 | $ | 6.12 | $ | 5.25 | $ | 5.19 | ||||||||||
Common shares outstanding | 16,614,856 | 16,586,868 | 16,530,432 | 16,514,245 | 16,500,945 | |||||||||||||||
Selected ratios: | ||||||||||||||||||||
Annualized return on average assets | 0.73 | % | 0.60 | % | 0.42 | % | 10.99 | % | 0.91 | % | ||||||||||
Annualized return on average shareholders' equity | 8.46 | % | 7.12 | % | 5.15 | % | 192.68 | % | 16.38 | % | ||||||||||
Tier I leverage ratio | 7.52 | % | 7.31 | % | 7.08 | % | 7.27 | % | 6.57 | % | ||||||||||
Total risk-based capital to risk-adjusted assets | 12.37 | % | 12.00 | % | 11.81 | % | 11.79 | % | 11.20 | % | ||||||||||
Average shareholders' equity to average total assets | 8.63 | % | 8.40 | % | 8.15 | % | 5.70 | % | 5.55 | % | ||||||||||
Yield on earning assets (FTE) | 3.58 | % | 3.56 | % | 3.52 | % | 3.56 | % | 3.50 | % | ||||||||||
Cost of funds | 0.52 | % | 0.50 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||
Net interest spread (FTE) | 3.06 | % | 3.06 | % | 3.04 | % | 3.08 | % | 2.98 | % | ||||||||||
Net interest margin (FTE) | 3.14 | % | 3.14 | % | 3.11 | % | 3.15 | % | 3.07 | % | ||||||||||
Total delinquent loans/total loans | 0.72 | % | 0.74 | % | 0.82 | % | 0.84 | % | 1.29 | % | ||||||||||
Allowance for loan and lease losses/total loans | 1.17 | % | 1.17 | % | 1.19 | % | 1.20 | % | 1.36 | % | ||||||||||
Non-performing loans/total loans | 0.33 | % | 0.37 | % | 0.49 | % | 0.52 | % | 0.93 | % | ||||||||||
Annualized net (recoveries) charge-offs/average loans | (0.09 | %) | 0.26 | % | 0.47 | % | 0.02 | % | 0.04 | % | ||||||||||
FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
Nine Months Ended | ||||||||
Sept 30, | ||||||||
(in thousands, except share data) | 2016 | 2015 | ||||||
Interest income | ||||||||
Interest and fees on loans | $ | 21,157 | $ | 19,640 | ||||
Interest and dividends on securities | ||||||||
U.S. government agencies | 2,678 | 3,044 | ||||||
State and political subdivisions, tax-free | 30 | 91 | ||||||
State and political subdivisions, taxable | 1,834 | 447 | ||||||
Other securities | 259 | 331 | ||||||
Total interest and dividends on securities | 4,801 | 3,913 | ||||||
Interest on interest-bearing deposits in other banks | 14 | 42 | ||||||
Total interest income | 25,972 | 23,595 | ||||||
Interest expense | ||||||||
Interest on deposits | 2,009 | 2,003 | ||||||
Interest on borrowed funds | ||||||||
Interest on Federal Home Loan Bank of Pittsburgh advances | 472 | 367 | ||||||
Interest on subordinated debentures | 480 | 1,290 | ||||||
Interest on junior subordinated debentures | 180 | 150 | ||||||
Total interest on borrowed funds | 1,132 | 1,807 | ||||||
Total interest expense | 3,141 | 3,810 | ||||||
Net interest income before provision (credit) for loan and lease losses | 22,831 | 19,785 | ||||||
Provision (credit) for loan and lease losses | 858 | (340 | ) | |||||
Net interest income after provision (credit) for loan and lease losses | 21,973 | 20,125 | ||||||
Non-interest income | ||||||||
Deposit service charges | 2,157 | 2,218 | ||||||
Net gain on the sale of securities | 960 | 2,302 | ||||||
Net gain on the sale of mortgage loans held for sale | 238 | 69 | ||||||
Net gain on the sale of SBA guaranteed loans | 51 | - | ||||||
Net gain on the sale of other real estate owned | 29 | 145 | ||||||
Loan-related fees | 287 | 290 | ||||||
Income from bank-owned life insurance | 426 | 415 | ||||||
Other | 657 | 904 | ||||||
Total non-interest income | 4,805 | 6,343 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 10,366 | 9,582 | ||||||
Occupancy expense | 1,301 | 1,665 | ||||||
Equipment expense | 1,277 | 1,234 | ||||||
Data processing expense | 1,522 | 1,420 | ||||||
Regulatory assessments | 629 | 711 | ||||||
Bank shares tax | 746 | 652 | ||||||
Expense of other real estate owned | 335 | 338 | ||||||
Legal expense | 285 | 331 | ||||||
Professional fees | 716 | 780 | ||||||
Insurance expense | 384 | 528 | ||||||
Other operating expenses | 2,821 | 2,636 | ||||||
Total non-interest expense | 20,382 | 19,877 | ||||||
Income before income taxes | 6,396 | 6,591 | ||||||
Income tax expense (benefit) | 1,611 | (40 | ) | |||||
Net income | $ | 4,785 | $ | 6,631 | ||||
Income per share | ||||||||
Basic | $ | 0.29 | $ | 0.40 | ||||
Diluted | $ | 0.29 | $ | 0.40 | ||||
Cash dividends declared per common share | $ | 0.06 | $ | - | ||||
Weighted average number of shares outstanding: | ||||||||
Basic | 16,554,391 | 16,497,373 | ||||||
Diluted | 16,554,391 | 16,497,373 | ||||||
FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
Three Months Ended | ||||||||||||||||||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands, except share data) | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 7,156 | $ | 7,032 | $ | 6,969 | $ | 7,032 | $ | 6,693 | ||||||||||
Interest and dividends on securities | ||||||||||||||||||||
U.S. government agencies | 848 | 900 | 930 | 992 | 1,061 | |||||||||||||||
State and political subdivisions, tax-free | 9 | 11 | 10 | 18 | 19 | |||||||||||||||
State and political subdivisions, taxable | 675 | 624 | 535 | 458 | 324 | |||||||||||||||
Other securities | 69 | 94 | 96 | 102 | 92 | |||||||||||||||
Total interest and dividends on securities | 1,601 | 1,629 | 1,571 | 1,570 | 1,496 | |||||||||||||||
Interest on interest-bearing deposits in other banks | 8 | 2 | 4 | 4 | 10 | |||||||||||||||
Total interest income | 8,765 | 8,663 | 8,544 | 8,606 | 8,199 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on deposits | 704 | 663 | 642 | 628 | 677 | |||||||||||||||
Interest on borrowed funds | ||||||||||||||||||||
Interest on Federal Home Loan Bank of Pittsburgh advances | 157 | 167 | 148 | 147 | 128 | |||||||||||||||
Interest on subordinated debentures | 162 | 159 | 159 | 160 | 162 | |||||||||||||||
Interest on junior subordinated debentures | 62 | 61 | 57 | 56 | 50 | |||||||||||||||
Total interest on borrowed funds | 381 | 387 | 364 | 363 | 340 | |||||||||||||||
Total interest expense | 1,085 | 1,050 | 1,006 | 991 | 1,017 | |||||||||||||||
Net interest income before (credit) provision for loan and lease losses | 7,680 | 7,613 | 7,538 | 7,615 | 7,182 | |||||||||||||||
(Credit) Provision for loan and lease losses | (234 | ) | 396 | 696 | (1,005 | ) | (191 | ) | ||||||||||||
Net interest income after (credit) provision for loan and lease losses | 7,914 | 7,217 | 6,842 | 8,620 | 7,373 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Deposit service charges | 739 | 717 | 701 | 742 | 799 | |||||||||||||||
Net gain (loss) on the sale of securities | - | 857 | 103 | (6 | ) | 4 | ||||||||||||||
Net gain on the sale of mortgage loans held for sale | 99 | 71 | 68 | 223 | 13 | |||||||||||||||
Net gain on the sale of SBA guaranteed loans | 51 | - | - | - | - | |||||||||||||||
Net gain (loss) on the sale of other real estate owned | 32 | 2 | (5 | ) | 17 | 129 | ||||||||||||||
Loan-related fees | 85 | 95 | 107 | 152 | 94 | |||||||||||||||
Income from bank-owned life insurance | 137 | 143 | 146 | 149 | 145 | |||||||||||||||
Other | 237 | 209 | 211 | 180 | 195 | |||||||||||||||
Total non-interest income | 1,380 | 2,094 | 1,331 | 1,457 | 1,379 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 3,263 | 3,589 | 3,514 | 4,228 | 3,240 | |||||||||||||||
Occupancy expense | 479 | 329 | 493 | 619 | 500 | |||||||||||||||
Equipment expense | 429 | 425 | 423 | 423 | 408 | |||||||||||||||
Data processing expense | 505 | 494 | 523 | 556 | 471 | |||||||||||||||
Regulatory assessments | 199 | 193 | 237 | 239 | 203 | |||||||||||||||
Bank shares tax | 253 | 252 | 241 | 53 | 217 | |||||||||||||||
Expense of other real estate owned | 95 | 194 | 46 | 62 | 91 | |||||||||||||||
Legal expense | 79 | 86 | 120 | 106 | 80 | |||||||||||||||
Professional fees | 157 | 272 | 287 | 234 | 193 | |||||||||||||||
Insurance expense | 131 | 125 | 128 | 131 | 128 | |||||||||||||||
Legal settlement | - | - | - | 777 | - | |||||||||||||||
Other operating expenses | 963 | 1,066 | 792 | 1,159 | 884 | |||||||||||||||
Total non-interest expense | 6,553 | 7,025 | 6,804 | 8,587 | 6,415 | |||||||||||||||
Income before income taxes | 2,741 | 2,286 | 1,369 | 1,490 | 2,337 | |||||||||||||||
Income tax expense (benefit) | 724 | 661 | 226 | (27,719 | ) | - | ||||||||||||||
Net income | $ | 2,017 | $ | 1,625 | $ | 1,143 | $ | 29,209 | $ | 2,337 | ||||||||||
Income per share | ||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.10 | $ | 0.07 | $ | 1.77 | $ | 0.14 | ||||||||||
Diluted | $ | 0.12 | $ | 0.10 | $ | 0.07 | $ | 1.77 | $ | 0.14 | ||||||||||
Cash dividends declared per common share | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | - | $ | - | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 16,593,811 | 16,549,169 | 16,519,759 | 16,506,294 | 16,500,945 | |||||||||||||||
Diluted | 16,593,811 | 16,549,169 | 16,519,759 | 16,506,294 | 16,500,945 | |||||||||||||||
FNCB Bancorp, Inc.
Consolidated Balance Sheets
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands) | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 24,558 | $ | 15,847 | $ | 16,367 | $ | 19,544 | $ | 20,631 | ||||||||||
Interest-bearing deposits in other banks | 32,778 | 1,825 | 1,847 | 1,539 | 10,383 | |||||||||||||||
Total cash and cash equivalents | 57,336 | 17,672 | 18,214 | 21,083 | 31,014 | |||||||||||||||
Securities available for sale, at fair value | 263,475 | 262,190 | 263,523 | 253,773 | 249,228 | |||||||||||||||
Stock in Federal Home Loan Bank of Pittsburgh at cost | 2,741 | 5,219 | 3,932 | 6,344 | 4,298 | |||||||||||||||
Loans held for sale | 185 | 563 | 455 | 683 | 4,634 | |||||||||||||||
Loans, net of net deferred costs and unearned income | 729,662 | 733,720 | 728,158 | 733,716 | 723,166 | |||||||||||||||
Allowance for loan and lease losses | (8,490 | ) | (8,559 | ) | (8,635 | ) | (8,790 | ) | (9,825 | ) | ||||||||||
Net loans | 721,172 | 725,161 | 719,523 | 724,926 | 713,341 | |||||||||||||||
Bank premises and equipment, net | 10,615 | 10,793 | 10,904 | 11,193 | 11,258 | |||||||||||||||
Accrued interest receivable | 2,736 | 2,511 | 2,854 | 2,475 | 2,618 | |||||||||||||||
Intangible assets | 14 | 55 | 96 | 137 | 179 | |||||||||||||||
Bank-owned life insurance | 29,807 | 29,670 | 29,527 | 29,381 | 29,232 | |||||||||||||||
Other real estate owned | 2,065 | 1,628 | 1,806 | 3,154 | 1,618 | |||||||||||||||
Other assets | 31,441 | 32,076 | 34,181 | 37,469 | 7,799 | |||||||||||||||
Total assets | $ | 1,121,587 | $ | 1,087,538 | $ | 1,085,015 | $ | 1,090,618 | $ | 1,055,219 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand (non-interest-bearing) | $ | 157,119 | $ | 144,082 | $ | 162,882 | $ | 154,531 | $ | 152,038 | ||||||||||
Interest-bearing | 773,840 | 691,751 | 720,243 | 667,015 | 700,004 | |||||||||||||||
Total deposits | 930,959 | 835,833 | 883,125 | 821,546 | 852,042 | |||||||||||||||
Borrowed funds: | ||||||||||||||||||||
Federal Home Loan Bank of Pittsburgh advances | 58,837 | 120,771 | 74,511 | 135,802 | 93,058 | |||||||||||||||
Subordinated debentures | 14,000 | 14,000 | 14,000 | 14,000 | 14,000 | |||||||||||||||
Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||
Total borrowed funds | 83,147 | 145,081 | 98,821 | 160,112 | 117,368 | |||||||||||||||
Accrued interest payable | 294 | 311 | 333 | 11,165 | 11,187 | |||||||||||||||
Other liabilities | 10,614 | 10,813 | 10,695 | 11,617 | 14,989 | |||||||||||||||
Total liabilities | 1,025,014 | 992,038 | 992,974 | 1,004,440 | 995,586 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Preferred stock | - | - | - | - | - | |||||||||||||||
Common stock | 20,768 | 20,734 | 20,663 | 20,643 | 20,626 | |||||||||||||||
Additional paid-in capital | 62,381 | 62,210 | 62,069 | 62,059 | 61,939 | |||||||||||||||
Retained earnings (accumulated deficit) | 7,506 | 5,820 | 4,527 | 3,714 | (25,495 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | 5,918 | 6,736 | 4,782 | (238 | ) | 2,563 | ||||||||||||||
Total shareholders' equity | 96,573 | 95,500 | 92,041 | 86,178 | 59,633 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,121,587 | $ | 1,087,538 | $ | 1,085,015 | $ | 1,090,618 | $ | 1,055,219 | ||||||||||
FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
Three Months Ended | ||||||||||||||||||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
Interest income | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Loans - taxable | $ | 6,809 | $ | 6,674 | $ | 6,603 | $ | 6,694 | $ | 6,371 | ||||||||||
Loans - tax-free | 526 | 542 | 555 | 512 | 488 | |||||||||||||||
Total loans | 7,335 | 7,216 | 7,158 | 7,206 | 6,859 | |||||||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 1,592 | 1,618 | 1,561 | 1,552 | 1,477 | |||||||||||||||
Securities, tax-free | 14 | 17 | 15 | 27 | 29 | |||||||||||||||
Total interest and dividends on securities | 1,606 | 1,635 | 1,576 | 1,579 | 1,506 | |||||||||||||||
Interest-bearing deposits in other banks | 8 | 2 | 4 | 4 | 10 | |||||||||||||||
Total interest income | 8,949 | 8,853 | 8,738 | 8,789 | 8,375 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 704 | 663 | 642 | 628 | 677 | |||||||||||||||
Borrowed funds | 381 | 387 | 364 | 363 | 340 | |||||||||||||||
Total interest expense | 1,085 | 1,050 | 1,006 | 991 | 1,017 | |||||||||||||||
Net interest income | $ | 7,864 | $ | 7,803 | $ | 7,732 | $ | 7,798 | $ | 7,358 | ||||||||||
Average balances | ||||||||||||||||||||
Earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Loans - taxable | $ | 688,038 | $ | 682,642 | $ | 683,198 | $ | 685,795 | $ | 660,709 | ||||||||||
Loans - tax-free | 47,620 | 48,131 | 48,433 | 43,429 | 41,746 | |||||||||||||||
Total loans | 735,658 | 730,773 | 731,631 | 729,224 | 702,455 | |||||||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 257,431 | 260,835 | 256,555 | 251,108 | 241,799 | |||||||||||||||
Securities, tax-free | 905 | 1,090 | 1,107 | 1,713 | 1,707 | |||||||||||||||
Total securities | 258,336 | 261,925 | 257,662 | 252,821 | 243,506 | |||||||||||||||
Interest-bearing deposits in other banks | 6,448 | 2,347 | 3,746 | 6,797 | 12,185 | |||||||||||||||
Total interest-earning assets | 1,000,442 | 995,045 | 993,039 | 988,842 | 958,146 | |||||||||||||||
Non-earning assets | 99,010 | 97,271 | 101,958 | 65,633 | 62,063 | |||||||||||||||
Total assets | $ | 1,099,452 | $ | 1,092,316 | $ | 1,094,997 | $ | 1,054,475 | $ | 1,020,209 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Deposits | $ | 737,431 | $ | 725,552 | $ | 725,369 | $ | 702,783 | $ | 690,039 | ||||||||||
Borrowed funds | 103,821 | 117,229 | 113,386 | 119,281 | 105,109 | |||||||||||||||
Total interest-bearing liabilities | 841,252 | 842,781 | 838,755 | 822,064 | 795,148 | |||||||||||||||
Demand deposits | 152,319 | 146,622 | 146,994 | 146,457 | 143,140 | |||||||||||||||
Other liabilities | 11,006 | 11,125 | 19,967 | 25,811 | 25,303 | |||||||||||||||
Shareholders' equity | 94,875 | 91,788 | 89,281 | 60,143 | 56,618 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,099,452 | $ | 1,092,316 | $ | 1,094,997 | $ | 1,054,475 | $ | 1,020,209 | ||||||||||
Yield/Cost | ||||||||||||||||||||
Earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Interest and fees on loans - taxable | 3.96 | % | 3.91 | % | 3.87 | % | 3.90 | % | 3.86 | % | ||||||||||
Interest and fees on loans - tax-free | 4.42 | % | 4.50 | % | 4.58 | % | 4.72 | % | 4.68 | % | ||||||||||
Total loans | 3.99 | % | 3.95 | % | 3.91 | % | 3.95 | % | 3.91 | % | ||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 2.47 | % | 2.48 | % | 2.43 | % | 2.47 | % | 2.44 | % | ||||||||||
Securities, tax-free | 6.03 | % | 6.11 | % | 5.48 | % | 6.37 | % | 6.80 | % | ||||||||||
Total securities | 2.49 | % | 2.50 | % | 2.45 | % | 2.50 | % | 2.47 | % | ||||||||||
Interest-bearing deposits in other banks | 0.50 | % | 0.34 | % | 0.43 | % | 0.24 | % | 0.33 | % | ||||||||||
Total earning assets | 3.58 | % | 3.56 | % | 3.52 | % | 3.56 | % | 3.50 | % | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest on deposits | 0.38 | % | 0.37 | % | 0.35 | % | 0.36 | % | 0.39 | % | ||||||||||
Interest on borrowed funds | 1.47 | % | 1.32 | % | 1.28 | % | 1.22 | % | 1.29 | % | ||||||||||
Total interest-bearing liabilities | 0.52 | % | 0.50 | % | 0.48 | % | 0.48 | % | 0.51 | % | ||||||||||
Net interest spread | 3.06 | % | 3.06 | % | 3.04 | % | 3.08 | % | 2.98 | % | ||||||||||
Net interest margin | 3.14 | % | 3.14 | % | 3.11 | % | 3.15 | % | 3.07 | % | ||||||||||
FNCB Bancorp, Inc.
Asset Quality Data
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands) | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
At period end | ||||||||||||||||||||
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) | $ | 2,416 | $ | 2,739 | $ | 3,569 | $ | 3,788 | $ | 6,741 | ||||||||||
Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||
Total non-performing loans | 2,416 | 2,739 | 3,569 | 3,788 | 6,741 | |||||||||||||||
Other real estate owned (OREO) | 2,065 | 1,628 | 1,806 | 3,154 | 1,618 | |||||||||||||||
Total non-performing loans and OREO | $ | 4,481 | $ | 4,367 | $ | 5,375 | $ | 6,942 | $ | 8,359 | ||||||||||
Accruing TDRs | $ | 4,106 | $ | 4,043 | $ | 4,623 | $ | 4,982 | $ | 5,065 | ||||||||||
For the three months ended | ||||||||||||||||||||
Allowance for loan and lease losses | ||||||||||||||||||||
Beginning balance | $ | 8,559 | $ | 8,635 | $ | 8,790 | $ | 9,825 | $ | 10,328 | ||||||||||
Loans charged-off | 189 | 709 | 1,148 | 198 | 968 | |||||||||||||||
Recoveries of charged-off loans | 354 | 237 | 297 | 168 | 656 | |||||||||||||||
Net (recoveries) charge-offs | (165 | ) | 472 | 851 | 30 | 312 | ||||||||||||||
(Credit) Provision for loan and lease losses | (234 | ) | 396 | 696 | (1,005 | ) | (191 | ) | ||||||||||||
Ending balance | $ | 8,490 | $ | 8,559 | $ | 8,635 | $ | 8,790 | $ | 9,825 | ||||||||||