Exhibit 99.1
FOR IMMEDIATE RELEASE
FNCB Bancorp, Inc. Reports Third Quarter Net Income of $1.850 Million
Year-To-Date Revenue of $31.7 Million Up 7.4% from Prior Year
Dunmore, Pa., October 19, 2018/Globe Newswire/—FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), reported net income of $1.850 million, or $0.11 per basic and diluted share, for the third quarter of 2018, compared to net income of $2.272 million, or $0.14 per basic and diluted share, for the same quarter of 2017. The $422 thousand, or 18.6%, decrease in third quarter earnings reflected increases of $0.8 million in non-interest expense and $0.6 million in the provision for loan and lease losses, coupled with a $ 0.4 million decrease in non-interest income. Partially offsetting these factors was a $0.9 million increase in net interest income comparing the third quarters of 2018 and 2017. Net income for the nine months ended September 30, 2018 was $6.281 million, or $0.37 per basic and diluted share, compared to $6.261 million, or $0.37 per basic and diluted share, for the same period of 2017.
Cash Dividends Declared
Dividends declared and paid were $0.04 per share for the third quarter and $0.12 per share for the year-to-date period of 2018, which represented a 33.3% increase compared to $0.03 per share and $0.09 per share, respectively, for the three and nine months ended September 30, 2017. The dividend pay-out ratio for the nine months ended September 30, 2018 was 32.1%, compared to 24.0% for the same period of 2017.
Third Quarter 2018 Performance Highlights:
● | Year-to-date total revenue (net interest income and non-interest income) increased 7.4% year over year; |
● | Net interest income (FTE) increased 10.5% and 11.9%, comparing the third quarter and year-to-date periods of 2018 and 2017, respectively; |
● | Yield on earning assets (FTE) for the third quarter of 2018 improved 27 basis points compared to the same quarter of 2017; |
● | Year over year growth in total loans, net of net deferred costs and unearned income, of $104.8 million, or 13.8%; |
● | Total deposits grew $111.9 million, or 11.4%, comparing September 30, 2018 and 2017. |
“The efforts of our dedicated team resulted in another solid and productive quarter characterized by continued loan and deposit growth, a double-digit increase in interest income compared to the prior year quarter, as well as solid year-over-year revenue growth (net interest income + non-interest income),” said Gerard A. Champi, President and Chief Executive Officer. “Loan demand in the third quarter of 2018 was driven by strong consumer loan activity and growth in our commercial real estate and municipal portfolios. Our third quarter loan loss provision was up $606 thousand in comparison to the third quarter 2017, primarily reflecting strong loan growth and a single commercial relationship that was placed on non-accrual status. Overall, our asset quality remains favorable with key industry metrics below or in line with peer levels. Core deposit funding, which continues to be a strategic focus, has remained solid throughout 2018, contributing to the nearly 12.0% growth in total deposits year over year. Our continued deposit growth was gratifying because it occurred despite some rather aggressive pricing from competitors across our service footprint, indicative of the ongoing strength of the FNCB Bank brand. We continue to focus on improving financial performance, with a specific benchmark for return on average assets of 1.00%. At the close of the third quarter of 2018, our balance sheet remains strong and our ability to attract core deposits, as well as generate growth across our various loan portfolios, we believe leaves us well positioned to extend our performance through the remainder of 2018 and the first half of 2019.”
Summary Results for the Three and Nine Months Ended September 30, 2018
Tax-equivalent net interest income was $9.4 million for the third quarter of 2018, an increase of $0.9 million, or 10.5%, from $8.5 million for the same quarter of 2017. Tax-equivalent net interest income for the nine months ended September 30, 2018 increased $2.9 million, or 11.9%, to $27.7 million compared to $24.8 million for the same nine-month period of 2017. The improvement for both the quarter and year-to-date periods was largely due to growth in average earning assets and higher earning-asset yields, partially offset by higher funding costs. Average earning assets grew $133.3 million, or 12.9%, and $102.2 million, or 9.9%, comparing the three- and nine-month periods ended September 30, 2018 and 2017, respectively. Tax-equivalent earning-asset yields improved 27 basis points for the third quarter and 31 basis points for the nine months ended September 30, 2018 over the same periods of 2017. For the three months ended September 30, 2018, the cost of funds increased 41 basis points to 1.00% from 0.59% for the same period of 2017. Similarly, the cost of funds increased 31 basis points to 0.84% from 0.53% comparing the year-to-date periods of 2018 and 2017. The tax-equivalent net interest spread for the nine months ended September 30, 2018 and 2017 remained stable at 3.10%, while the tax-equivalent net interest margin increased 6 basis points to 3.24% from 3.18% comparing the nine months ended September 30, 2018 and 2017, respectively. Despite the increase in the year-to-date margin, rising funding costs in the third quarter of 2018 resulted in a decrease in the tax-equivalent net interest margin of 6 basis points to 3.21% from 3.27% from the same quarter of 2017. Additionally, the net interest margin for the third quarter of 2018 compressed 5 basis points from the second quarter of 2018 percentage of 3.26%. 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 $1.3 million for the three months ended September 30, 2018, a decrease of $0.4 million, or 23.0%, compared to $1.7 million for the comparable period of 2017. For the nine months ended September 30, 2018, non-interest income amounted to $4.4 million, a decrease of $0.9 million, or 17.7%, compared to $5.3 million for the same period of 2017. Included in non-interest income for the three and nine months ended September 30, 2017 were net gains on the sale of available-for sale securities of $0.4 million and $1.3 million, respectively. Comparatively, there were no net gains on the sale of available-for-sale securities for the three months ended September 30, 2018. For the nine months ended September 30, 2018, FNCB realized net losses on the sale of available-for-sale securities of $4 thousand.
For the three months ended September 30, 2018, non-interest expense increased $0.8 million, or 12.4%, to $7.2 million from $6.4 million for the same three months of 2017. Comparing the nine months ended September 30, 2018 and 2017, non-interest expense increased $1.1 million, or 5.5%. The increase in non-interest expense resulted largely from higher salaries and employee benefits expense related to staffing additions within FNCB Bank’s retail and commercial lending and credit administration units, coupled with increases in regulatory assessments, which, we believe, primarily reflected strong balance sheet growth.
Annualized return on average assets and return on average equity was 0.59% and 8.41%, respectively, for the three months ended September 30, 2018, compared to 0.80% and 9.27%, for the respective periods of 2017. For the nine months ended September 30, 2018, annualized return on average assets and return on average equity was 0.69% and 9.68%, respectively, compared to 0.74% and 8.87%, respectively, for the nine months ended September 30, 2017.
Asset Quality
Total non-performing loans were $4.4 million at September 30, 2018, an increase of $0.9 million from $3.5 million at June 30, 2018 and $1.8 million from $2.6 million at September 30, 2017. The increase from June 30, 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 0.51% at September 30, 2018, compared to 0.41% at June 30, 2018 and 0.35% at September 30, 2017. Despite the increase in non-performing loans from the previous quarter end, FNCB’s asset quality continued to compare favorably to the peer average of 0.64% at June 30, 2018, the most recent data reported in the Board of Governors of the Federal Reserve System Bank Holding Company Performance Report 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 1.14% at September 30, 2018, 1.11% at June 30, 2018 and 1.17% at September 30, 2017.
Financial Condition
Total assets increased $88.8 million, or 7.6%, to $1.251 billion at September 30, 2018 from $1.162 billion at December 31, 2017. The increase in total assets primarily reflected strong growth in interest-earning assets. Specifically, loans, net of net deferred costs and unearned income, increased $93.7 million, or 12.2%, to $864.3 million at September 30, 2018 from $770.6 million at December 31, 2017. The asset growth was funded with an increase in total deposits of $92.7 million, or 9.2%, to $1.095 billion at September 30, 2018 from $1.002 billion at December 31, 2017. The increase in deposits was primarily attributable to increases in retail and wholesale time deposits, coupled with cyclical inflows from municipal customers.
Total shareholders’ equity decreased $2.6 million, or 2.9%, to $86.6 million at September 30, 2018 from $89.2 million at December 31, 2017. The reduction in capital resulted primarily from a $7.1 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 $2.0 million. Partially offsetting these decreases was net income of $6.3 million for the nine months ended September 30, 2018. Despite the decrease in capital, FNCB remains well capitalized with total risk-based capital and Tier I leverage ratios of 11.42% and 7.66%, respectively, at September 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 a premier community bank in Northeastern Pennsylvania – 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, including for deposit and loan growth: 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 ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; 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 press release, 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 Bancorp, Inc. |
Selected Financial Data |
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Per share data: | ||||||||||||||||||||
Net income (loss) (fully diluted) | $ | 0.11 | $ | 0.14 | $ | 0.12 | $ | (0.36 | ) | $ | 0.14 | |||||||||
Cash dividends declared | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.03 | ||||||||||
Book value | $ | 5.15 | $ | 5.18 | $ | 5.17 | $ | 5.32 | $ | 5.82 | ||||||||||
Tangible book value | $ | 5.15 | $ | 5.18 | $ | 5.17 | $ | 5.32 | $ | 5.82 | ||||||||||
Market value: | ||||||||||||||||||||
High | $ | 12.00 | $ | 10.00 | $ | 9.98 | $ | 7.99 | $ | 8.00 | ||||||||||
Low | $ | 7.97 | $ | 8.01 | $ | 7.01 | $ | 6.54 | $ | 7.41 | ||||||||||
Close | $ | 9.77 | $ | 8.88 | $ | 9.24 | $ | 7.30 | $ | 7.57 | ||||||||||
Common shares outstanding | 16,819,471 | 16,817,097 | 16,766,600 | 16,757,963 | 16,757,963 | |||||||||||||||
Selected ratios: | ||||||||||||||||||||
Annualized return on average assets | 0.59 | % | 0.79 | % | 0.70 | % | (2.09 | %) | 0.80 | % | ||||||||||
Annualized return on average shareholders' equity | 8.41 | % | 11.23 | % | 9.44 | % | (24.98 | %) | 9.27 | % | ||||||||||
Efficiency ratio | 67.11 | % | 63.94 | % | 68.78 | % | 73.42 | % | 65.09 | % | ||||||||||
Tier I leverage ratio | 7.66 | % | 7.69 | % | 7.80 | % | 7.74 | % | 8.10 | % | ||||||||||
Total risk-based capital to risk-adjusted assets | 11.42 | % | 11.31 | % | 11.70 | % | 12.08 | % | 12.17 | % | ||||||||||
Average shareholders' equity to average total assets | 7.00 | % | 7.05 | % | 7.38 | % | 8.35 | % | 8.61 | % | ||||||||||
Yield on earning assets (FTE) | 4.04 | % | 3.96 | % | 3.83 | % | 3.84 | % | 3.77 | % | ||||||||||
Cost of funds | 1.00 | % | 0.84 | % | 0.69 | % | 0.59 | % | 0.59 | % | ||||||||||
Net interest spread (FTE) | 3.04 | % | 3.12 | % | 3.15 | % | 3.25 | % | 3.18 | % | ||||||||||
Net interest margin (FTE) | 3.21 | % | 3.26 | % | 3.26 | % | 3.35 | % | 3.27 | % | ||||||||||
Total delinquent loans/total loans | 0.90 | % | 0.71 | % | 0.73 | % | 0.72 | % | 0.81 | % | ||||||||||
Allowance for loan and lease losses/total loans | 1.14 | % | 1.11 | % | 1.18 | % | 1.17 | % | 1.17 | % | ||||||||||
Non-performing loans/total loans | 0.51 | % | 0.41 | % | 0.30 | % | 0.34 | % | 0.35 | % | ||||||||||
Annualized net charge-offs/average loans | 0.36 | % | 0.47 | % | 0.10 | % | 0.06 | % | 0.08 | % | ||||||||||
FNCB Bancorp, Inc. | |||||
Year-to-Date Consolidated Statements of Income |
Nine Months Ended | ||||||||
September 30, | ||||||||
(in thousands, except share data) | 2018 | 2017 | ||||||
Interest income | ||||||||
Interest and fees on loans | $ | 26,820 | $ | 21,748 | ||||
Interest and dividends on securities | ||||||||
U.S. government agencies | 2,675 | 2,566 | ||||||
State and political subdivisions, tax-free | 95 | 42 | ||||||
State and political subdivisions, taxable | 3,079 | 2,816 | ||||||
Other securities | 646 | 409 | ||||||
Total interest and dividends on securities | 6,495 | 5,833 | ||||||
Interest on interest-bearing deposits in other banks | 52 | 146 | ||||||
Total interest income | 33,367 | 27,727 | ||||||
Interest expense | ||||||||
Interest on deposits | 3,760 | 2,513 | ||||||
Interest on borrowed funds | ||||||||
Interest on Federal Home Loan Bank of Pittsburgh advances | 1,774 | 424 | ||||||
Interest on subordinated debentures | 171 | 323 | ||||||
Interest on junior subordinated debentures | 292 | 219 | ||||||
Total interest on borrowed funds | 2,237 | 966 | ||||||
Total interest expense | 5,997 | 3,479 | ||||||
Net interest income before provision for loan and lease losses | 27,370 | 24,248 | ||||||
Provision for loan and lease losses | 2,749 | 486 | ||||||
Net interest income after provision for loan and lease losses | 24,621 | 23,762 | ||||||
Non-interest income | ||||||||
Deposit service charges | 2,160 | 2,147 | ||||||
Net (loss) gain on the sale of securities | (4 | ) | 1,338 | |||||
Net loss on equity securities | (34 | ) | - | |||||
Net gain on the sale of mortgage loans held for sale | 171 | 241 | ||||||
Net gain on the sale of SBA guaranteed loans | 322 | 79 | ||||||
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 | 245 | 252 | ||||||
Income from bank-owned life insurance | 413 | 399 | ||||||
Other | 1,064 | 747 | ||||||
Total non-interest income | 4,368 | 5,307 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 10,732 | 10,069 | ||||||
Occupancy expense | 1,629 | 1,567 | ||||||
Equipment expense | 936 | 1,380 | ||||||
Data processing expense | 2,040 | 1,502 | ||||||
Regulatory assessments | 648 | 497 | ||||||
Bank shares tax | 767 | 762 | ||||||
Professional fees | 733 | 662 | ||||||
Insurance expense | 398 | 385 | ||||||
Other operating expenses | 3,503 | 3,441 | ||||||
Total non-interest expense | 21,386 | 20,265 | ||||||
Income before income taxes | 7,603 | 8,804 | ||||||
Income tax expense | 1,322 | 2,543 | ||||||
Net income | $ | 6,281 | $ | 6,261 | ||||
Income per share | ||||||||
Basic | $ | 0.37 | $ | 0.37 | ||||
Diluted | $ | 0.37 | $ | 0.37 | ||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.09 | ||||
Weighted average number of shares outstanding: | ||||||||
Basic | 16,791,815 | 16,711,172 | ||||||
Diluted | 16,813,948 | 16,728,852 | ||||||
FNCB Bancorp, Inc. | ||||||||
Quarter-to-Date Consolidated Statements of Income (Loss) |
Three Months Ended | ||||||||||||||||||||
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands, except share data) | 2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 9,501 | $ | 9,031 | $ | 8,288 | $ | 8,073 | $ | 7,576 | ||||||||||
Interest and dividends on securities | ||||||||||||||||||||
U.S. government agencies | 899 | 886 | 890 | 860 | 816 | |||||||||||||||
State and political subdivisions, tax-free | 37 | 38 | 20 | 7 | 7 | |||||||||||||||
State and political subdivisions, taxable | 1,028 | 1,027 | 1,024 | 993 | 1,016 | |||||||||||||||
Other securities | 211 | 240 | 195 | 154 | 166 | |||||||||||||||
Total interest and dividends on securities | 2,175 | 2,191 | 2,129 | 2,014 | 2,005 | |||||||||||||||
Interest on interest-bearing deposits in other banks | 17 | 12 | 23 | 34 | 24 | |||||||||||||||
Total interest income | 11,693 | 11,234 | 10,440 | 10,121 | 9,605 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on deposits | 1,559 | 1,134 | 1,067 | 1,008 | 943 | |||||||||||||||
Interest on borrowed funds | ||||||||||||||||||||
Interest on Federal Home Loan Bank of Pittsburgh advances | 715 | 707 | 352 | 175 | 163 | |||||||||||||||
Interest on subordinated debentures | 58 | 57 | 56 | 57 | 97 | |||||||||||||||
Interest on junior subordinated debentures | 106 | 99 | 87 | 81 | 77 | |||||||||||||||
Total interest on borrowed funds | 879 | 863 | 495 | 313 | 337 | |||||||||||||||
Total interest expense | 2,438 | 1,997 | 1,562 | 1,321 | 1,280 | |||||||||||||||
Net interest income before provision for loan and lease losses | 9,255 | 9,237 | 8,878 | 8,800 | 8,325 | |||||||||||||||
Provision for loan and lease losses | 1,149 | 880 | 720 | 283 | 543 | |||||||||||||||
Net interest income after provision for loan and lease losses | 8,106 | 8,357 | 8,158 | 8,517 | 7,782 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Deposit service charges | 711 | 747 | 702 | 756 | 728 | |||||||||||||||
Net (loss) gain on the sale of securities | - | (4 | ) | - | 259 | 367 | ||||||||||||||
Net loss on equity securities | (8 | ) | (7 | ) | (19 | ) | - | - | ||||||||||||
Net gain on the sale of mortgage loans held for sale | 71 | 51 | 49 | 63 | 106 | |||||||||||||||
Net gain on the sale of SBA guaranteed loans | - | 71 | 251 | - | 23 | |||||||||||||||
Net (loss) gain on the sale of other real estate owned | - | (7 | ) | 37 | 22 | - | ||||||||||||||
Loan-related fees | 85 | 76 | 84 | 132 | 96 | |||||||||||||||
Income from bank-owned life insurance | 141 | 138 | 134 | 128 | 129 | |||||||||||||||
Other | 320 | 464 | 281 | 558 | 265 | |||||||||||||||
Total non-interest income | 1,320 | 1,529 | 1,519 | 1,918 | 1,714 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 3,581 | 3,485 | 3,666 | 4,092 | 3,247 | |||||||||||||||
Occupancy expense | 500 | 526 | 603 | 538 | 394 | |||||||||||||||
Equipment expense | 299 | 323 | 314 | 435 | 474 | |||||||||||||||
Data processing expense | 745 | 647 | 648 | 521 | 506 | |||||||||||||||
Regulatory assessments | 251 | 196 | 201 | 189 | 160 | |||||||||||||||
Bank shares tax | 278 | 222 | 267 | 38 | 252 | |||||||||||||||
Professional fees | 241 | 196 | 296 | 294 | 206 | |||||||||||||||
Insurance expense | 130 | 133 | 135 | 134 | 132 | |||||||||||||||
Other operating expenses | 1,163 | 1,238 | 1,102 | 1,563 | 1,026 | |||||||||||||||
Total non-interest expense | 7,188 | 6,966 | 7,232 | 7,804 | 6,397 | |||||||||||||||
Income before income taxes | 2,238 | 2,920 | 2,445 | 2,631 | 3,099 | |||||||||||||||
Income tax expense | 388 | 508 | 426 | 8,745 | 827 | |||||||||||||||
Net income (loss) | $ | 1,850 | $ | 2,412 | $ | 2,019 | $ | (6,114 | ) | $ | 2,272 | |||||||||
Income (loss) per share | ||||||||||||||||||||
Basic | $ | 0.11 | $ | 0.14 | $ | 0.12 | $ | (0.36 | ) | $ | 0.14 | |||||||||
Diluted | $ | 0.11 | $ | 0.14 | $ | 0.12 | $ | (0.36 | ) | $ | 0.14 | |||||||||
Cash dividends declared per common share | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.03 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 16,818,625 | 16,792,812 | 16,763,401 | 16,757,963 | 16,757,963 | |||||||||||||||
Diluted | 16,838,547 | 16,819,286 | 16,789,336 | 16,774,209 | 16,777,671 | |||||||||||||||
FNCB Bancorp, Inc. | ||||||||
Consolidated Balance Sheets |
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands) | 2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 23,051 | $ | 16,500 | $ | 12,323 | $ | 22,755 | $ | 24,881 | ||||||||||
Interest-bearing deposits in other banks | 7,246 | 4,624 | 1,873 | 14,991 | 18,929 | |||||||||||||||
Total cash and cash equivalents | 30,297 | 21,124 | 14,196 | 37,746 | 43,810 | |||||||||||||||
Securities available for sale, at fair value | 288,780 | 290,863 | 298,314 | 289,459 | 281,102 | |||||||||||||||
Equity securities, at fair value | 884 | 892 | 899 | 918 | 925 | |||||||||||||||
Restricted stock, at cost | 3,333 | 7,964 | 5,703 | 2,763 | 2,460 | |||||||||||||||
Loans held for sale | 938 | 629 | 366 | 1,095 | 147 | |||||||||||||||
Loans, net of net deferred costs and unearned income | 864,316 | 855,391 | 808,202 | 770,643 | 759,489 | |||||||||||||||
Allowance for loan and lease losses | (9,827 | ) | (9,459 | ) | (9,562 | ) | (9,034 | ) | (8,862 | ) | ||||||||||
Net loans | 854,489 | 845,932 | 798,640 | 761,609 | 750,627 | |||||||||||||||
Bank premises and equipment, net | 13,895 | 13,900 | 12,870 | 10,388 | 10,482 | |||||||||||||||
Accrued interest receivable | 4,061 | 3,654 | 3,430 | 3,234 | 3,203 | |||||||||||||||
Bank-owned life insurance | 30,873 | 30,732 | 30,594 | 30,460 | 30,332 | |||||||||||||||
Other real estate owned | 715 | 787 | 579 | 1,023 | 1,088 | |||||||||||||||
Other assets | 22,857 | 22,810 | 23,669 | 23,610 | 32,935 | |||||||||||||||
Total assets | $ | 1,251,122 | $ | 1,239,287 | $ | 1,189,260 | $ | 1,162,305 | $ | 1,157,111 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand (non-interest-bearing) | $ | 166,967 | $ | 177,388 | $ | 172,896 | $ | 176,325 | $ | 162,426 | ||||||||||
Interest-bearing | 928,154 | 777,855 | 782,357 | 826,123 | 820,786 | |||||||||||||||
Total deposits | 1,095,121 | 955,243 | 955,253 | 1,002,448 | 983,212 | |||||||||||||||
Borrowed funds: | ||||||||||||||||||||
Federal Home Loan Bank of Pittsburgh advances | 46,490 | 174,251 | 121,485 | 44,968 | 45,350 | |||||||||||||||
Subordinated debentures | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | |||||||||||||||
Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||
Total borrowed funds | 61,800 | 189,561 | 136,795 | 60,278 | 60,660 | |||||||||||||||
Accrued interest payable | 318 | 331 | 284 | 241 | 244 | |||||||||||||||
Other liabilities | 7,306 | 7,027 | 10,190 | 10,147 | 15,513 | |||||||||||||||
Total liabilities | 1,164,545 | 1,152,162 | 1,102,522 | 1,073,114 | 1,059,629 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Preferred stock | - | - | - | - | - | |||||||||||||||
Common stock | 21,024 | 21,021 | 20,958 | 20,947 | 20,947 | |||||||||||||||
Additional paid-in capital | 63,469 | 63,374 | 63,335 | 63,210 | 63,143 | |||||||||||||||
Retained earnings | 10,965 | 9,792 | 8,057 | 6,779 | 13,282 | |||||||||||||||
Accumulated other comprehensive (loss) income | (8,881 | ) | (7,062 | ) | (5,612 | ) | (1,745 | ) | 110 | |||||||||||
Total shareholders' equity | 86,577 | 87,125 | 86,738 | 89,191 | 97,482 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,251,122 | $ | 1,239,287 | $ | 1,189,260 | $ | 1,162,305 | $ | 1,157,111 | ||||||||||
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) | 2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
Interest income | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Loans - taxable | $ | 9,059 | $ | 8,631 | $ | 7,934 | $ | 7,736 | $ | 7,266 | ||||||||||
Loans - tax-free | 559 | 506 | 448 | 511 | 470 | |||||||||||||||
Total loans | 9,618 | 9,137 | 8,382 | 8,247 | 7,736 | |||||||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 2,138 | 2,153 | 2,109 | 2,007 | 1,998 | |||||||||||||||
Securities, tax-free | 47 | 48 | 25 | 11 | 11 | |||||||||||||||
Total interest and dividends on securities | 2,185 | 2,201 | 2,134 | 2,018 | 2,009 | |||||||||||||||
Interest-bearing deposits in other banks | 17 | 12 | 23 | 34 | 24 | |||||||||||||||
Total interest income | 11,820 | 11,350 | 10,539 | 10,299 | 9,769 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 1,559 | 1,134 | 1,067 | 1,008 | 943 | |||||||||||||||
Borrowed funds | 879 | 863 | 495 | 313 | 337 | |||||||||||||||
| 2,438 | 1,997 | 1,562 | 1,321 | 1,280 | ||||||||||||||||
Net interest income | $ | 9,382 | $ | 9,353 | $ | 8,977 | $ | 8,978 | $ | 8,489 | ||||||||||
Average balances | ||||||||||||||||||||
Earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Loans - taxable | $ | 803,314 | $ | 784,427 | $ | 748,375 | $ | 725,988 | $ | 700,729 | ||||||||||
Loans - tax-free | 55,848 | 49,855 | 44,383 | 41,548 | 38,109 | |||||||||||||||
Total loans | 859,162 | 834,282 | 792,758 | 767,536 | 738,838 | |||||||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 303,037 | 305,627 | 301,032 | 292,307 | 290,348 | |||||||||||||||
Securities, tax-free | 4,664 | 4,677 | 2,325 | 600 | 600 | |||||||||||||||
Total securities | 307,701 | 310,304 | 303,357 | 292,907 | 290,948 | |||||||||||||||
Interest-bearing deposits in other banks | 3,735 | 2,629 | 3,825 | 12,215 | 7,499 | |||||||||||||||
Total interest-earning assets | 1,170,598 | 1,147,215 | 1,099,940 | 1,072,658 | 1,037,285 | |||||||||||||||
Non-earning assets | 75,518 | 74,188 | 76,114 | 89,801 | 92,603 | |||||||||||||||
Total assets | $ | 1,246,116 | $ | 1,221,403 | $ | 1,176,054 | $ | 1,162,459 | $ | 1,129,888 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Deposits | $ | 827,570 | $ | 790,233 | $ | 806,494 | $ | 824,680 | $ | 792,649 | ||||||||||
Borrowed funds | 149,682 | 163,547 | 102,676 | 67,476 | 73,168 | |||||||||||||||
Total interest-bearing liabilities | 977,252 | 953,780 | 909,170 | 892,156 | 865,817 | |||||||||||||||
Demand deposits | 173,616 | 173,037 | 169,450 | 162,135 | 156,483 | |||||||||||||||
Other liabilities | 7,983 | 8,444 | 10,663 | 11,079 | 10,325 | |||||||||||||||
Shareholders' equity | 87,265 | 86,142 | 86,771 | 97,089 | 97,263 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,246,116 | $ | 1,221,403 | $ | 1,176,054 | $ | 1,162,459 | $ | 1,129,888 | ||||||||||
Yield/Cost | ||||||||||||||||||||
Earning assets: | ||||||||||||||||||||
Loans: | ||||||||||||||||||||
Interest and fees on loans - taxable | 4.51 | % | 4.40 | % | 4.24 | % | 4.26 | % | 4.15 | % | ||||||||||
Interest and fees on loans - tax-free | 4.01 | % | 4.06 | % | 4.04 | % | 4.92 | % | 4.93 | % | ||||||||||
Total loans | 4.48 | % | 4.38 | % | 4.23 | % | 4.30 | % | 4.19 | % | ||||||||||
Securities: | ||||||||||||||||||||
Securities, taxable | 2.82 | % | 2.82 | % | 2.80 | % | 2.75 | % | 2.75 | % | ||||||||||
Securities, tax-free | 4.03 | % | 4.11 | % | 4.30 | % | 7.33 | % | 7.33 | % | ||||||||||
Total securities | 2.84 | % | 2.84 | % | 2.81 | % | 2.76 | % | 2.76 | % | ||||||||||
Interest-bearing deposits in other banks | 1.82 | % | 1.83 | % | 2.41 | % | 1.11 | % | 1.28 | % | ||||||||||
Total earning assets | 4.04 | % | 3.96 | % | 3.83 | % | 3.84 | % | 3.77 | % | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest on deposits | 0.75 | % | 0.57 | % | 0.53 | % | 0.49 | % | 0.48 | % | ||||||||||
Interest on borrowed funds | 2.35 | % | 2.11 | % | 1.93 | % | 1.86 | % | 1.84 | % | ||||||||||
Total interest-bearing liabilities | 1.00 | % | 0.84 | % | 0.69 | % | 0.59 | % | 0.59 | % | ||||||||||
Net interest spread | 3.04 | % | 3.12 | % | 3.15 | % | 3.25 | % | 3.18 | % | ||||||||||
Net interest margin | 3.21 | % | 3.26 | % | 3.26 | % | 3.35 | % | 3.27 | % | ||||||||||
FNCB Bancorp, Inc. | ||||||||||||
Asset Quality Data |
Sept 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
(in thousands) | 2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
At period end | ||||||||||||||||||||
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) | $ | 4,391 | $ | 3,469 | $ | 2,403 | $ | 2,578 | $ | 2,642 | ||||||||||
Loans past due 90 days or more and still accruing | - | - | - | - | - | |||||||||||||||
Total non-performing loans | 4,391 | 3,469 | 2,403 | 2,578 | 2,642 | |||||||||||||||
Other real estate owned (OREO) | 715 | 787 | �� | 579 | 1,023 | 1,088 | ||||||||||||||
Other non-performing assets | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 | |||||||||||||||
Total non-performing assets | $ | 7,006 | $ | 6,156 | $ | 4,882 | $ | 5,501 | $ | 5,630 | ||||||||||
Accruing TDRs | $ | 8,515 | $ | 8,741 | $ | 8,797 | $ | 9,299 | $ | 9,283 | ||||||||||
For the three months ended | ||||||||||||||||||||
Allowance for loan and lease losses | ||||||||||||||||||||
Beginning balance | $ | 9,459 | $ | 9,562 | $ | 9,034 | $ | 8,862 | $ | 8,469 | ||||||||||
Loans charged-off | 1,037 | 1,310 | 400 | 310 | 377 | |||||||||||||||
Recoveries of charged-off loans | 256 | 327 | 208 | 199 | 227 | |||||||||||||||
Net charge-offs | 781 | 983 | 192 | 111 | 150 | |||||||||||||||
Provision for loan and lease losses | 1,149 | 880 | 720 | 283 | 543 | |||||||||||||||
Ending balance | $ | 9,827 | $ | 9,459 | $ | 9,562 | $ | 9,034 | $ | 8,862 | ||||||||||