Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. The following table summarizes loans and leases receivable, net, by major category at June 30, 2022 December 31, 2021 June 30, December 31, (in thousands) 2022 2021 Residential real estate $ 250,480 $ 234,113 Commercial real estate 368,423 366,009 Construction, land acquisition and development 62,495 41,646 Commercial and industrial 230,089 193,086 Consumer 98,905 85,522 State and political subdivisions 77,644 61,071 Total loans and leases, gross 1,088,036 981,447 Unearned income (719 ) (1,442 ) Net deferred loan origination fees (costs) 1,431 (566 ) Allowance for loan and lease losses (13,381 ) (12,416 ) Loans and leases, net $ 1,075,367 $ 967,023 Included in commercial and industrial loans and leases at June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021, 100.0% may June 30, 2022 December 31, 2021. In 2021, June 30, 2022 December 31, 2021. June 30, 2022 December 31, 2021. June 30, 2022 December 31, 2021. FNCB has granted loans, letters of credit and lines of credit to certain of its executive officers and directors as well as to certain of their related parties. For more information about related party transactions, refer to Note 8, FNCB originates 1 4 three six June 30, 2022, 1 4 three six June 30, 2021, three six June 30, 2022 2021. June 30, 2022 1 4 no 1 4 December 31, 2021. The unpaid principal balance of loans serviced for others, which includes residential mortgages and SBA-guaranteed loans, was $75.4 million at June 30, 2022 December 31, 2021 There were no three six June 30, 2022. 2, 2021 10 Management evaluates the credit quality of the loan portfolio on an ongoing basis and performs a formal review of the adequacy of the ALLL at the end of each quarter. This evaluation is inherently subjective, as it requires material estimates that may may 19 may may The following table summarizes activity in the ALLL by major category for the three six June 30, 2022 2021 Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total Three months ended June 30, 2022 Allowance for loan and lease losses: Beginning balance, April 1, 2022 $ 2,196 $ 4,424 $ 538 $ 3,092 $ 1,259 $ 491 $ 1,129 $ 13,129 Charge-offs - - - (13 ) (290 ) - - (303 ) Recoveries - 224 - 7 262 - - 493 Provisions (credits) 12 (566 ) 208 218 76 114 - 62 Ending balance, June 30, 2022 $ 2,208 $ 4,082 $ 746 $ 3,304 $ 1,307 $ 605 $ 1,129 $ 13,381 Three months ended June 30, 2021 Allowance for loan and lease losses: Beginning balance, April 1, 2021 $ 1,732 $ 4,521 $ 516 $ 2,603 $ 1,219 $ 387 $ 1,098 $ 12,076 Charge-offs (6 ) - - (11 ) (119 ) - - (136 ) Recoveries 13 - - 7 170 - - 190 Provisions (credits) 119 127 (23 ) (116 ) (93 ) 122 19 155 Ending balance, June 30, 2021 $ 1,858 $ 4,648 $ 493 $ 2,483 $ 1,177 $ 509 $ 1,117 $ 12,285 Six months ended June 30, 2022 Allowance for loan and lease losses: Beginning balance, January 1, 2022 $ 2,081 $ 4,530 $ 392 $ 2,670 $ 1,159 $ 455 $ 1,129 $ 12,416 Charge-offs (3 ) - - (32 ) (363 ) - - (398 ) Recoveries - 224 - 11 307 - - 542 Provisions (credits) 130 (672 ) 354 655 204 150 - 821 Ending balance, June 30, 2022 $ 2,208 $ 4,082 $ 746 $ 3,304 $ 1,307 $ 605 $ 1,129 $ 13,381 Six months ended June 30, 2021 Allowance for loan and lease losses: Beginning balance, January 1, 2021 $ 1,715 $ 4,268 $ 538 $ 2,619 $ 1,319 $ 405 $ 1,086 $ 11,950 Charge-offs (6 ) - - (30 ) (461 ) - - (497 ) Recoveries 16 46 - 32 397 - - 491 Provisions (credits) 133 334 (45 ) (138 ) (78 ) 104 31 341 Ending balance, June 30, 2021 $ 1,858 $ 4,648 $ 493 $ 2,483 $ 1,177 $ 509 $ 1,117 $ 12,285 The following table presents, by major category, the allocation of the ALLL and the related loan balance disaggregated based on the impairment methodology at June 30, 2022 December 31, 2021 Construction, Land State and Residential Commercial Acquisition and Commercial Political (in thousands) Real Estate Real Estate Development and Industrial Consumer Subdivisions Unallocated Total June 30, 2022 Allowance for loan and lease losses: Individually evaluated for impairment $ 12 $ 5 $ - $ 6 $ - $ - $ - $ 23 Collectively evaluated for impairment 2,196 4,077 746 3,298 1,307 605 1,129 13,358 Total $ 2,208 $ 4,082 $ 746 $ 3,304 $ 1,307 $ 605 $ 1,129 $ 13,381 Loans and leases receivable: Individually evaluated for impairment $ 1,749 $ 6,449 $ - $ 411 $ - $ - $ - $ 8,609 Collectively evaluated for impairment 248,731 361,974 62,495 229,678 98,905 77,644 - 1,079,427 Total $ 250,480 $ 368,423 $ 62,495 $ 230,089 $ 98,905 $ 77,644 $ - $ 1,088,036 December 31, 2021 Allowance for loan and lease losses: Individually evaluated for impairment $ 9 $ 6 $ - $ 11 $ - $ - $ - $ 26 Collectively evaluated for impairment 2,072 4,524 392 2,659 1,159 455 1,129 12,390 Total $ 2,081 $ 4,530 $ 392 $ 2,670 $ 1,159 $ 455 $ 1,129 $ 12,416 Loans and leases receivable: Individually evaluated for impairment $ 1,681 $ 7,530 $ - $ 762 $ - $ - $ - $ 9,973 Collectively evaluated for impairment 232,432 358,479 41,646 192,324 85,522 61,071 - 971,474 Total $ 234,113 $ 366,009 $ 41,646 $ 193,086 $ 85,522 $ 61,071 $ - $ 981,447 Credit Quality Indicators – Commercial Loans Management continuously monitors and evaluates the credit quality of FNCB’s commercial loans by regularly reviewing certain credit quality indicators. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of FNCB’s loan receivables. FNCB’s loan rating system assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial and industrial loans include commercial indirect auto loans which are not not 1. Minimal Risk 2. Above Average Credit Quality 3. Average Risk 4. Acceptable Risk 5. Pass - Watch 6. Special Mention 7. Substandard - Accruing 8. Substandard - Non-Accrual 9. Doubtful 10. Loss This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass – Assets rated 1 5 no not Special Mention – Assets classified as special mention do not not Substandard – Assets classified as substandard have well defined weaknesses based on objective evidence and are characterized by the distinct possibility that FNCB will sustain some loss if the deficiencies are not Doubtful – Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that such weaknesses make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss – Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not Credit Quality Indicators – Other Loans Certain residential real estate loans, consumer loans, commercial and municipal indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status unless collection of the loan is in process and reasonably assured. FNCB utilizes accruing versus non-accrual status as the credit quality indicator for these loan pools. The following tables present the recorded investment in loans and leases receivable by major category and credit quality indicator at June 30, 2022 December 31, 2021 Credit Quality Indicators June 30, 2022 Commercial Loans and Leases Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 42,833 $ 480 $ 72 $ - $ - $ 43,385 $ 206,295 $ 800 $ 207,095 $ 250,480 Commercial real estate 359,498 6,831 2,094 - - 368,423 - - - 368,423 Construction, land acquisition and development 57,340 1,655 - - - 58,995 3,500 - 3,500 62,495 Commercial and industrial 218,098 9,022 874 - - 227,994 2,095 - 2,095 230,089 Consumer - - - - - - 98,719 186 98,905 98,905 State and political subdivisions 77,642 - - - - 77,642 2 - 2 77,644 Total $ 755,411 $ 17,988 $ 3,040 $ - $ - $ 776,439 $ 310,611 $ 986 $ 311,597 $ 1,088,036 Credit Quality Indicators December 31, 2021 Commercial Loans and Leases Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 42,028 $ 530 $ 77 $ - $ - $ 42,635 $ 190,919 $ 559 $ 191,478 $ 234,113 Commercial real estate 350,904 8,232 6,873 - - 366,009 - - - 366,009 Construction, land acquisition and development 34,869 - - - - 34,869 6,777 - 6,777 41,646 Commercial and industrial 187,554 1,877 1,343 - - 190,774 2,312 - 2,312 193,086 Consumer - - - - - - 85,291 231 85,522 85,522 State and political subdivisions 61,066 - - - - 61,066 5 - 5 61,071 Total $ 676,421 $ 10,639 $ 8,293 $ - $ - $ 695,353 $ 285,304 $ 790 $ 286,094 $ 981,447 Included in loans and leases receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $2.8 million and $3.9 million at June 30, 2022 December 31, 2021, six no may may 90 90 June 30, 2022 December 31, 2021 The following tables present the delinquency status of past due and non-accrual loans and leases at June 30, 2022 December 31, 2021 June 30, 2022 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans and leases: Residential real estate $ 249,580 $ 6 $ 22 $ - $ 249,608 Commercial real estate 366,727 42 112 - 366,881 Construction, land acquisition and development 62,495 - - - 62,495 Commercial and industrial 229,885 39 1 - 229,925 Consumer 97,430 1,119 156 14 98,719 State and political subdivisions 77,644 - - - 77,644 Total performing (accruing) loans and leases 1,083,761 1,206 291 14 1,085,272 Non-accrual loans and leases: Residential real estate 47 91 91 642 871 Commercial real estate 215 - - 1,327 1,542 Construction, land acquisition and development - - - - - Commercial and industrial 164 - - - 164 Consumer 65 54 40 28 187 State and political subdivisions - - - - - Total non-accrual loans and leases 491 145 131 1,997 2,764 Total loans and leases receivable $ 1,084,252 $ 1,351 $ 422 $ 2,011 $ 1,088,036 December 31, 2021 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans and leases: Residential real estate $ 233,054 $ 406 $ 17 $ - $ 233,477 Commercial real estate 363,394 116 - - 363,510 Construction, land acquisition and development 41,646 - - - 41,646 Commercial and industrial 192,584 4 1 - 192,589 Consumer 84,333 754 204 - 85,291 State and political subdivisions 61,071 - - - 61,071 Total performing (accruing) loans and leases 976,082 1,280 222 - 977,584 Non-accrual loans and leases: Residential real estate 67 27 87 455 636 Commercial real estate 1,172 - - 1,327 2,499 Construction, land acquisition and development - - - - - Commercial and industrial 497 - - - 497 Consumer 117 85 15 14 231 State and political subdivisions - - - - - Total non-accrual loans and leases 1,853 112 102 1,796 3,863 Total loans and leases receivable $ 977,935 $ 1,392 $ 324 $ 1,796 $ 981,447 The following tables present a distribution of the recorded investment, unpaid principal balance and the related allowance for FNCB’s impaired loans, which have been analyzed for impairment under ASC 310, June 30, 2022 December 31, 2021 not not 450. $100 450 June 30, 2022 December 31, 2021. June 30, 2022 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 587 $ 660 $ - Commercial real estate 1,542 1,787 - Construction, land acquisition and development - - - Commercial and industrial 228 228 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 2,357 2,675 - With a related allowance recorded: Residential real estate 1,162 1,162 12 Commercial real estate 4,907 4,907 5 Construction, land acquisition and development - - - Commercial and industrial 183 401 6 Consumer - - - State and political subdivisions - - - Total impaired loans with a related allowance recorded 6,252 6,470 23 Total impaired loans: Residential real estate 1,749 1,822 12 Commercial real estate 6,449 6,694 5 Construction, land acquisition and development - - - Commercial and industrial 411 629 6 Consumer - - - State and political subdivisions - - - Total impaired loans $ 8,609 $ 9,145 $ 23 December 31, 2021 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Residential real estate $ 395 $ 463 $ - Commercial real estate 2,499 4,230 - Construction, land acquisition and development - - - Commercial and industrial 314 347 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 3,208 5,040 - With a related allowance recorded: Residential real estate 1,286 1,285 9 Commercial real estate 5,031 5,031 6 Construction, land acquisition and development - - - Commercial and industrial 448 666 11 Consumer - - - State and political subdivisions - - - Total impaired loans with a related allowance recorded 6,765 6,982 26 Total impaired loans: Residential real estate 1,681 1,748 9 Commercial real estate 7,530 9,261 6 Construction, land acquisition and development - - - Commercial and industrial 762 1,013 11 Consumer - - - State and political subdivisions - - - Total impaired loans $ 9,973 $ 12,022 $ 26 The following table presents the average balance and interest income by loan category recognized on impaired loans for the three six June 30, 2022 2021 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Average Interest Average Interest Average Interest Average Interest (in thousands) Balance Income (1) Balance Income (1) Balance Income (1) Balance Income (1) Residential real estate $ 1,757 $ 15 $ 2,094 $ 17 $ 1,740 $ 30 $ 2,092 $ 35 Commercial real estate 6,472 58 8,183 56 6,961 112 8,233 113 Construction, land acquisition and development - - 66 1 - - 67 2 Commercial and industrial 417 6 929 2 576 10 895 4 Consumer - - - - - - - - State and political subdivisions - - - - - - - - Total impaired loans $ 8,646 $ 79 $ 11,272 $ 76 $ 9,277 $ 152 $ 11,287 $ 154 ( 1 The additional interest income that would have been earned on non-accrual and restructured loans had these loans performed in accordance with their original terms approximated $43 thousand and $86 thousand for the three six June 30, 2022, three six June 30, 2021, Troubled Debt Restructured Loans TDRs were $6.5 million and $6.9 million at June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 not June 30, 2022 The modification of the terms of loans classified as TDRs may one There were no loans modified as TDRs during the three six June 30, 2022 2021. 12 three six June 30, 2022 2021. Residential Real Estate Loan Foreclosures There were three residential real estate properties with an aggregate recorded investment of $230 thousand that were in the process of foreclosure at June 30, 2022. no June 30, 2022. During the three six June 30, 2021, third 2021. three six June 30, 2021. June 30, 2021. |