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Section 1: 8-K (FORM 8-K)

fncb20190125_8k.htm

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 25, 2019

FNCB Bancorp, Inc.

(Exact name of registrant as specified in its Charter)

 

Pennsylvania

000-53869

23-2900790

(State or other jurisdiction

(Commission file number)

(IRS Employer 

of incorporation)

 

Identification No.)

 

102 E. Drinker St., Dunmore, PA, 18512

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code: 570.346.7667

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                                              Emerging growth company ☐

 

 

If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                                                                                                                         ☐

 

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On January 25, 2019, FNCB Bancorp, Inc. issued a press release announcing its unaudited results of operations for the three- and twelve-month periods ending December 31, 2018 and financial condition at December 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

 

 

Item 9.01

Financial Statements and Exhibits

 

 

Exhibits:

 

99.1     Press Release issued January 25, 2019

 

 

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FNCB BANCORP, INC.

 

 

 

 

 

By:

/s/ James M. Bone, Jr., CPA

 

 

James M. Bone, Jr., CPA

 

 

Executive Vice President and Chief Financial Officer

 

 

Dated: January 25, 2019

 

 

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Section 2: EX-99.1 (EXHIBIT 99.1)

ex_133424.htm

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

  

FNCB Bancorp, Inc. Reports Increase in 2018 Earnings

 

 

Dunmore, Pa., January 25, 2019/Globe Newswire/—FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $13.3 million, or $0.79 per basic and diluted share, for 2018, compared to net income of $0.1 million, or $0.01 per basic and diluted share, for 2017. For the fourth quarter of 2018, FNCB recorded net income of $7.1 million, or $0.42 per basic and diluted share, compared to a net loss of $6.1 million, or $0.36 per basic and diluted share for the respective quarter of 2017. The increase in earnings for the fourth quarter and year-to-date periods were due largely to a decrease in income tax expense, coupled with increases in net interest income and non-interest income. Income tax expense decreased $7.0 million and $8.2 million comparing the three months and year ended December 31, 2018 and 2017, respectively. During the fourth quarter of 2017, FNCB had recognized additional, non-recurring income tax expense of $8.0 million resulting from the revaluation of FNCB’s net deferred tax assets following the enactment of the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. With regard to non-interest revenue, in the fourth quarter of 2018, FNCB, the Bank and Fidelity Deposit Company of Maryland resolved a dispute by entering into a mutual release of all claims, which resulted in FNCB recognizing an insurance recovery after related expenses of $6.0 million. Partially offsetting these positive factors for the year ended December 31, 2018 were increases in the provision for loan and lease losses and non-interest expense.

 

Return on average assets and return on average shareholders’ equity were 1.09% and 15.38%, respectively, in 2018, compared to 0.01% and 0.15%, respectively in 2017. For the three months ended December 31, 2018, return on average assets and return on average shareholders’ equity were 2.26% and 32.26%, respectively. Comparatively, return on average assets was (2.09%) and return on average shareholders’ equity was (24.98%) for the three months ended December 31, 2017.

 

2018 Performance Highlights:

 

 

Year-to-date total revenue (net interest income and non-interest income) increased $8.0 million, or 19.9% year over year;

 

Net interest income (FTE) increased 3.3% and 9.6%, comparing the quarter and year ended December 31 of 2018 and 2017, respectively;

 

Efficiency ratio for the fourth quarter improved to 47.59% in 2018 from 73.42% in 2017;

 

Yield on earning assets (FTE) for the fourth quarter of 2018 improved 22 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 $68.5 million, or 8.9%;

 

Total deposits grew $93.2 million, or 9.3%, comparing December 31, 2018 and 2017; and

 

Total capital increased $8.0 million, or 9.0%, comparing December 31, 2018 and 2017.

 

 

 

 

“We are very pleased with our 2018 operating performance,” stated Gerard A. Champi, President and Chief Executive Officer. “The solid results reflected the ongoing efforts of the entire FNCB team focused on organic loan and core deposit growth, funding cost management and controlling non-interest expense. We experienced strong demand for loans and deposits and were able to grow interest revenue and maintain our net interest margin in 2018 amid what proved to be a very challenging interest rate environment and competitive marketplace,” continued Champi. “We realize we still have much work to do ahead but are encouraged as we enter into 2019. We believe our strong balance sheet leaves us well positioned to advance our performance into the new year and continue to create long-term value for our shareholders,” concluded Champi.

 

Cash Dividends Declared

 

Dividends declared and paid were $0.05 per share for the fourth quarter and $0.17 per share for the year-to-date period of 2018, which represented increases of 25.0% and 30.8% compared to $0.04 per share and $0.13 per share, respectively, for the fourth quarter and year-to-date periods ended December 31, 2017. Total dividends declared and paid for 2018 equated to a dividend yield of approximately 2.01% based on the closing stock price of $8.44 per share at December 31, 2018.

 

Summary Results for 2018

 

For the three months ended December 31, 2018, tax-equivalent net interest income increased $0.3 million, or 3.3% to $9.3 million from $9.0 million for the same three months of 2017. Despite the increase in net interest income, FNCB’s tax-equivalent net interest margin for the fourth quarter of 2018 contracted 18 basis points to 3.17% compared to 3.35% for the same quarter of 2017. The margin contraction primarily reflected a 45 basis-point increase in the cost of funds to 1.04% for the three months ended December 31, 2018 from 0.59% for the same three months of 2017. For the year ended December 31, 2018, tax-equivalent net interest income increased $3.2 million, or 9.6%, to $37.0 million compared to $33.7 million for the year ended December 31, 2017. The improvement in net interest income for the year-to-date period was largely due to growth in average earning assets and higher earning-asset yields, partially offset by higher funding costs. Average earning assets grew $100.7 million, or 9.6%, to $1.147 billion in 2018 from $1.046 billion in 2017. Tax-equivalent earning-asset yields improved 29 basis points to 3.97% in 2018 compared to 3.68% in 2017. For the year ended December 31, 2018, the cost of funds increased 35 basis points to 0.90% from 0.55% for the year ended December 31, 2017. The tax-equivalent net interest margin decreased 1 basis point to 3.22% in 2018 from 3.23% in 2017. The net interest margin for the fourth quarter of 2018 decreased 4 basis points to 3.17% from 3.21% for the third quarter of 2018. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for 2018 and 34.0% for 2017.

 

For the quarter ended December 31, 2018, non-interest income amounted to $7.4 million, an increase of $5.5 million, or 287.0%, compared to $1.9 million for the same period of 2017. Non-interest income totaled $11.8 million for the year ended December 31, 2018, an increase of $4.6 million, or 63.2%, compared to $7.2 million for the year ended December 31, 2017. The increase in non-interest income for the fourth quarter and year-to-date periods was primarily due to the insurance recovery, net of related expenses, of $6.0 million received in the fourth quarter of 2018. Included in non-interest income for the three months and year ended December 31, 2017 were net gains on the sale of available-for sale securities of $0.3 million and $1.6 million, respectively. Comparatively, there were no net gains on the sale of available-for-sale securities for the three months ended December 31, 2018. For the year ended December 31, 2018, FNCB realized net losses on the sale of available-for-sale securities of $4 thousand.

 

 

 

 

For the three months ended December 31, 2018, non-interest expense increased by $0.1 million, or 1.8%, to $7.9 million from $7.8 million for the comparable three months of 2017. Non-interest expense for all of 2018 totaled $29.3 million, an increase of $1.2 million, or 4.5%, from $28.1 million for 2017. 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.

 

Asset Quality

 

Total non-performing loans increased $2.1 million to $4.7 million, or 0.56% of total loans, at December 31, 2018, from $2.6 million, or 0.34% of total loans at December 31, 2017. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 0.93% at December 31, 2018 compared to 0.72% at the end of 2017. The increase in non-performing loans and loan delinquencies was primarily attributable to two commercial relationships that were placed on non-accrual status during 2018. The allowance for loan and lease losses as a percentage of gross loans was 1.13% and 1.17% at December 31, 2018 and 2017, respectively.

 

Financial Condition

 

Total assets increased $75.4 million, or 6.5%, to $1.238 billion at December 31, 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 $68.5 million, or 8.9%, to $839.1 million at December 31, 2018 from $770.6 million at December 31, 2017. Available-for-sale securities increased $6.5 million to $296.0 million at December 31, 2018 from $289.5 million at December 31, 2017. The asset growth was funded with an increase in total deposits of $93.2 million, or 9.3%, to $1.096 billion at December 31, 2018 from $1.002 billion at December 31, 2017. The increase in deposits was primarily attributable to increases in retail and wholesale time deposits. Borrowings through the Federal Home Loan Bank of Pittsburgh decreased $26.0 million to $18.9 million at December 31, 2018 from $44.9 million at December 31, 2017.

 

Total shareholders’ equity increased $8.0 million, or 9.0%, to $97.2 million at December 31, 2018 from $89.2 million at December 31, 2017. The capital increase resulted primarily from net income in 2018 of $13.3 million, partially offset by a $2.8 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 $2.9 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 12.69% and 8.50%, respectively, at December 31, 2018 from $12.08% and 7.74%, respectively, at December 31, 2017.

 

 

 

 

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

[email protected]

 

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 report, even if subsequently made available by FNCB on its website or otherwise. FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this report.

 

Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2017.

 

[FNCB provides tabular information as follows]

 

 

FNCB Bancorp, Inc.

Selected Financial Data

 

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

 
   

2018

   

2018

   

2018

   

2018

   

2017

 

Per share data:

                                       

Net income (loss) (fully diluted)

  $ 0.42     $ 0.11     $ 0.14     $ 0.12     $ (0.36 )

Cash dividends declared

  $ 0.05     $ 0.04     $ 0.04     $ 0.04     $ 0.04  

Book value

  $ 5.78     $ 5.15     $ 5.18     $ 5.17     $ 5.32  

Tangible book value

  $ 5.78     $ 5.15     $ 5.18     $ 5.17     $ 5.32  

Market value:

                                       

High

  $ 10.39     $ 12.00     $ 10.00     $ 9.98     $ 7.99  

Low

  $ 8.21     $ 7.97     $ 8.01     $ 7.01     $ 6.54  

Close

  $ 8.44     $ 9.77     $ 8.88     $ 9.24     $ 7.30  

Common shares outstanding

    16,821,371       16,819,471       16,817,097       16,766,600       16,757,963  
                                         

Selected ratios:

                                       

Annualized return on average assets

    2.26 %     0.59 %     0.79 %     0.70 %     (2.09 %)

Annualized return on average shareholders' equity

    32.26 %     8.41 %     11.23 %     9.44 %     (24.98 %)

Efficiency ratio

    47.59 %     67.11 %     63.94 %     68.78 %     73.42 %

Tier I leverage ratio

    8.50 %     7.66 %     7.69 %     7.80 %     7.74 %

Total risk-based capital to risk-adjusted assets

    12.69 %     11.42 %     11.31 %     11.70 %     12.08 %

Average shareholders' equity to average total assets

    7.00 %     7.00 %     7.05 %     7.38 %     8.35 %

Yield on earning assets (FTE)

    4.06 %     4.04 %     3.96 %     3.83 %     3.84 %

Cost of funds

    1.04 %     1.00 %     0.84 %     0.69 %     0.59 %

Net interest spread (FTE)

    3.02 %     3.04 %     3.12 %     3.15 %     3.25 %

Net interest margin (FTE)

    3.17 %     3.21 %     3.26 %     3.26 %     3.35 %

Total delinquent loans/total loans

    0.93 %     0.90 %     0.71 %     0.73 %     0.72 %

Allowance for loan and lease losses/total loans

    1.13 %     1.14 %     1.11 %     1.18 %     1.17 %

Non-performing loans/total loans

    0.56 %     0.51 %     0.41 %     0.30 %     0.34 %

Annualized net charge-offs/average loans

    0.05 %     0.36 %     0.47 %     0.10 %     0.06 %

 

 

 

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Year Ended

 
   

December 31,

 

(in thousands, except share data)

 

2018

   

2017

 

Interest income

               

Interest and fees on loans

  $ 36,381     $ 29,821  

Interest and dividends on securities

               

U.S. government agencies

    3,565       3,426  

State and political subdivisions, tax-free

    133       49  

State and political subdivisions, taxable

    4,105       3,809  

Other securities

    813       563  

Total interest and dividends on securities

    8,616       7,847  

Interest on interest-bearing deposits in other banks

    88       180  

Total interest income

    45,085       37,848  

Interest expense

               

Interest on deposits

    5,925       3,521  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    2,025       599  

Interest on subordinated debentures

    228       380  

Interest on junior subordinated debentures

    400       300  

Total interest on borrowed funds

    2,653       1,279  

Total interest expense

    8,578       4,800  

Net interest income before provision for loan and lease losses

    36,507       33,048  

Provision for loan and lease losses

    2,550       769  

Net interest income after provision for loan and lease losses

    33,957       32,279  

Non-interest income

               

Deposit service charges

    2,885       2,903  

Net (loss) gain on the sale of securities

    (4 )     1,597  

Net loss on equity securities

    (27 )     -  

Net gain on the sale of mortgage loans held for sale

    210       304  

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       79  

Loan-related fees

    390       384  

Income from bank-owned life insurance

    555       527  

Insurance recovery

    6,027       -  

Other

    1,401       1,305  

Total non-interest income

    11,790       7,225  

Non-interest expense

               

Salaries and employee benefits

    14,780       14,161  

Occupancy expense

    2,191       2,105  

Equipment expense

    1,254       1,815  

Data processing expense

    2,799       2,023  

Regulatory assessments

    861       686  

Bank shares tax

    636       800  

Professional fees

    1,028       956  

Insurance expense

    515       519  

Other operating expenses

    5,263       5,004  

Total non-interest expense

    29,327       28,069  

Income before income taxes

    16,420       11,435  

Income tax expense

    3,071       11,288  

Net income

  $ 13,349     $ 147  
                 

Income per share

               

Basic

  $ 0.79     $ 0.01  

Diluted

  $ 0.79     $ 0.01  
                 

Cash dividends declared per common share

  $ 0.17     $ 0.13  

Weighted average number of shares outstanding:

               

Basic

    16,799,004       16,722,966  

Diluted

    16,820,753       16,740,288  

 

 

 

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income (Loss)

 

   

Three Months Ended

 
   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

 

(in thousands, except share data)

 

2018

   

2018

   

2018

   

2018

   

2017

 

Interest income

                                       

Interest and fees on loans

  $ 9,561     $ 9,501     $ 9,031     $ 8,288     $ 8,073  

Interest and dividends on securities

                                       

U.S. government agencies

    890       899       886       890       860  

State and political subdivisions, tax-free

    38       37       38       20       7  

State and political subdivisions, taxable

    1,026       1,028       1,027       1,024       993  

Other securities

    167       211       240       195       154  

Total interest and dividends on securities

    2,121       2,175       2,191       2,129       2,014  

Interest on interest-bearing deposits in other banks

    36       17       12       23       34  

Total interest income

    11,718       11,693       11,234       10,440       10,121  

Interest expense

                                       

Interest on deposits

    2,165       1,559       1,134       1,067       1,008  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    251       715       707       352       175  

Interest on subordinated debentures

    57       58       57       56       57  

Interest on junior subordinated debentures

    108       106       99       87       81  

Total interest on borrowed funds

    416       879       863       495       313  

Total interest expense

    2,581       2,438       1,997       1,562       1,321  

Net interest income before (credit) provision for loan and lease losses

    9,137       9,255       9,237       8,878       8,800  

(Credit) provision for loan and lease losses

    (199 )     1,149       880       720       283  

Net interest income after (credit) provision for loan and lease losses

    9,336       8,106       8,357       8,158       8,517  

Non-interest income

                                       

Deposit service charges

    725       711       747       702       756  

Net (loss) gain on the sale of securities

    -       -       (4 )     -       259  

Net gain (loss) on equity securities

    7       (8 )     (7 )     (19 )     -  

Net gain on the sale of mortgage loans held for sale

    39       71       51       49       63  

Net gain on the sale of SBA guaranteed loans

    -       -       71       251       -  

Net (loss) gain on the sale of other real estate owned

    -       -       (7 )     38       22  

Loan-related fees

    145       85       76       84       132  

Income from bank-owned life insurance

    142       141       138       134       128  

Insurance recovery

    6,027       -       -       -       -  

Other

    337       320       464       280       558  

Total non-interest income

    7,422       1,320       1,529       1,519       1,918  

Non-interest expense

                                       

Salaries and employee benefits

    4,048       3,581       3,485       3,666       4,092  

Occupancy expense

    562       500       526       603       538  

Equipment expense

    318       299       323       314       435  

Data processing expense

    759       745       647       648       521  

Regulatory assessments

    213       251       196       201       189  

Bank shares tax

    (131 )     278       222       267       38  

Professional fees

    295       241       196       296       294  

Insurance expense

    117       130       133       135       134  

Other operating expenses

    1,760       1,163       1,238       1,102       1,563  

Total non-interest expense

    7,941       7,188       6,966       7,232       7,804  

Income before income taxes

    8,817       2,238       2,920       2,445       2,631  

Income tax expense

    1,749       388       508       426       8,745  

Net income (loss)

  $ 7,068     $ 1,850     $ 2,412     $ 2,019     $ (6,114 )
                                         

Income (loss) per share

                                       

Basic

  $ 0.42     $ 0.11     $ 0.14     $ 0.12     $ (0.36 )

Diluted

  $ 0.42     $ 0.11     $ 0.14     $ 0.12     $ (0.36 )
                                         

Cash dividends declared per common share

  $ 0.05     $ 0.04     $ 0.04     $ 0.04     $ 0.04  

Weighted average number of shares outstanding:

                                       

Basic

    16,820,337       16,818,625       16,792,812       16,763,401       16,757,963  

Diluted

    16,840,933       16,838,547       16,819,286       16,789,336       16,774,209  

 

 

 

FNCB Bancorp, Inc.

Consolidated Balance Sheets

 

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

 

(in thousands)

 

2018

   

2018

   

2018

   

2018

   

2017

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 26,673     $ 23,051     $ 16,500     $ 12,323     $ 22,755  

Interest-bearing deposits in other banks

    9,808       7,246       4,624       1,873       14,991  

Total cash and cash equivalents

    36,481       30,297       21,124       14,196       37,746  

Securities available for sale, at fair value

    296,032       288,780       290,863       298,314       289,459  

Equity securities, at fair value

    891       884       892       899       918  

Restricted stock, at cost

    3,123       3,333       7,964       5,703       2,763  

Loans held for sale

    820       938       629       366       1,095  

Loans, net of net deferred costs and unearned income

    839,100       864,316       855,391       808,202       770,643  

Allowance for loan and lease losses

    (9,519 )     (9,827 )     (9,459 )     (9,562 )     (9,034 )

Net loans

    829,581       854,489       845,932       798,640       761,609  

Bank premises and equipment, net

    14,425       13,895       13,900       12,870       10,388  

Accrued interest receivable

    3,614       4,061       3,654       3,430       3,234  

Bank-owned life insurance

    31,015       30,873       30,732       30,594       30,460  

Other real estate owned

    919       715       787       579       1,023  

Other assets

    20,831       22,857       22,810       23,669       23,610  

Total assets

  $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260     $ 1,162,305  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 156,600     $ 166,967     $ 177,388     $ 172,896     $ 176,325  

Interest-bearing

    939,029       928,154       777,855       782,357       826,123  

Total deposits

    1,095,629       1,095,121       955,243       955,253       1,002,448  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    18,930       46,490       174,251       121,485       44,968  

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

    34,240       61,800       189,561       136,795       60,278  

Accrued interest payable

    338       318       331       284       241  

Other liabilities

    10,306       7,306       7,027       10,190       10,147  

Total liabilities

    1,140,513       1,164,545       1,152,162       1,102,522       1,073,114  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    21,026       21,024       21,021       20,958       20,947  

Additional paid-in capital

    63,547       63,469       63,374       63,335       63,210  

Retained earnings

    17,186       10,965       9,792       8,057       6,779  

Accumulated other comprehensive loss

    (4,540 )     (8,881 )     (7,062 )     (5,612 )     (1,745 )

Total shareholders' equity

    97,219       86,577       87,125       86,738       89,191  

Total liabilities and shareholders’ equity

  $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260     $ 1,162,305  

 

 

 

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

 

(dollars in thousands)

 

2018

   

2018

   

2018

   

2018

   

2017

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 9,090     $ 9,059     $ 8,631     $ 7,934     $ 7,736  

Loans - tax-free

    596       559       506       448       511  

Total loans

    9,686       9,618       9,137       8,382       8,247  

Securities:

                                       

Securities, taxable

    2,083       2,138       2,153       2,109       2,007  

Securities, tax-free

    48       47       48       25       11  

Total interest and dividends on securities

    2,131       2,185       2,201       2,134       2,018  

Interest-bearing deposits in other banks

    36       17       12       23       34  

Total interest income

    11,853       11,820       11,350       10,539       10,299  

Interest expense

                                       

Deposits

    2,165       1,559       1,134       1,067       1,008  

Borrowed funds

    416       879       863       495       313  
      2,581       2,438       1,997       1,562       1,321  

Net interest income

  $ 9,272     $ 9,382     $ 9,353     $ 8,977     $ 8,978  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 796,886     $ 803,314     $ 784,427     $ 748,375     $ 725,988  

Loans - tax-free

    58,722       55,848       49,855       44,383       41,548  

Total loans

    855,608       859,162       834,282       792,758       767,536  

Securities:

                                       

Securities, taxable

    299,981       303,037       305,627       301,032       292,307  

Securities, tax-free

    4,651       4,664       4,677       2,325       600  

Total securities

    304,632       307,701       310,304       303,357       292,907  

Interest-bearing deposits in other banks

    8,438       3,735       2,629       3,825       12,215  

Total interest-earning assets

    1,168,678       1,170,598       1,147,215       1,099,940       1,072,658  

Non-earning assets

    72,999       75,518       74,188       76,114       89,801  

Total assets

  $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054     $ 1,162,459  

Interest-bearing liabilities:

                                       

Deposits

  $ 926,767     $ 827,570     $ 790,233     $ 806,494     $ 824,680  

Borrowed funds

    62,495       149,682       163,547       102,676       67,476  

Total interest-bearing liabilities

    989,262       977,252       953,780       909,170       892,156  

Demand deposits

    157,223       173,616       173,037       169,450       162,135  

Other liabilities

    8,272       7,983       8,444       10,663       11,079  

Shareholders' equity

    86,920       87,265       86,142       86,771       97,089  

Total liabilities and shareholders' equity

  $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054     $ 1,162,459  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    4.56 %     4.51 %     4.40 %     4.24 %     4.26 %

Interest and fees on loans - tax-free

    4.06 %     4.01 %     4.06 %     4.04 %     4.92 %

Total loans

    4.53 %     4.48 %     4.38 %     4.23 %     4.30 %

Securities:

                                       

Securities, taxable

    2.78 %     2.82 %     2.82 %     2.80 %     2.75 %

Securities, tax-free

    4.13 %     4.03 %     4.11 %     4.30 %     7.33 %

Total securities

    2.80 %     2.84 %     2.84 %     2.81 %     2.76 %

Interest-bearing deposits in other banks

    1.71 %     1.82 %     1.83 %     2.41 %     1.11 %

Total earning assets

    4.06 %     4.04 %     3.96 %     3.83 %     3.84 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.93 %     0.75 %     0.57 %     0.53 %     0.49 %

Interest on borrowed funds

    2.66 %     2.35 %     2.11 %     1.93 %     1.86 %

Total interest-bearing liabilities

    1.04 %     1.00 %     0.84 %     0.69 %     0.59 %

Net interest spread

    3.02 %     3.04 %     3.12 %     3.15 %     3.25 %

Net interest margin

    3.17 %     3.21 %     3.26 %     3.26 %     3.35 %

 

 

 

FNCB Bancorp, Inc.

Asset Quality Data

 

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

   

Dec 31,

 

(in thousands)

 

2018

   

2018

   

2018

   

2018

   

2017

 

At period end

                                       

Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)

  $ 4,696     $ 4,391     $ 3,469     $ 2,403     $ 2,578  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    4,696       4,391       3,469       2,403       2,578  

Other real estate owned (OREO)

    919       715       787       579       1,023  

Other non-performing assets

    1,900       1,900       1,900       1,900       1,900  

Total non-performing assets

  $ 7,515     $ 7,006     $ 6,156     $ 4,882     $ 5,501  
                                         

Accruing TDRs

  $ 8,457     $ 8,515     $ 8,741     $ 8,797     $ 9,299  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 9,827     $ 9,459     $ 9,562     $ 9,034     $ 8,862  

Loans charged-off

    392       1,037       1,310       400       310  

Recoveries of charged-off loans

    283       256       327       208       199  

Net charge-offs

    109       781       983       192       111  

(Credit) provision for loan and lease losses

    (199 )     1,149       880       720       283  

Ending balance

  $ 9,519     $ 9,827     $ 9,459     $ 9,562     $ 9,034  

 

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