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

fncb20190415_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): April 22, 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 April 22, 2019, FNCB Bancorp, Inc. issued a press release announcing its unaudited results of operations for the three-month period ended March 31, 2019 and financial condition at March 31, 2019. 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 April 22, 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: April 22, 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 First Quarter 2019 Earnings

 

 

Dunmore, Pa., April 22, 2019/Globe Newswire/—FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.6 million, or $0.14 per basic and diluted share, for the three months ended March 31, 2019, an increase of $0.6 million, or 30.5%, compared to net income of $2.0 million, or $0.12 per basic and diluted share, for the same three months of 2018. The increase in first quarter earnings reflected a credit for loan and lease losses in 2019 compared to a provision in 2018 and an increase in net interest income, partially offset by moderately higher non-interest expense. Return on average assets and return on average shareholders’ equity were 0.86% and 9.70%, respectively, for the first three months of 2019, compared to 0.70% and 9.44%, respectively for the same three months of 2018. 

 

First Quarter 2019 Highlights:

 

  30.5% increase in net income comparing the first quarters of 2019 and 2018;
 

Successfully completed a $23.0 million common stock offering;

 

Total risk-based capital and Tier I Leverage ratios improved to 15.06% and 10.45% at March 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;

 

Accelerated final payment on subordinated debt; and

 

Increased first quarter dividend by 25.0% comparing 2019 and 2018.

 

“Our first quarter operating results provides us with a solid start to 2019,” stated Gerard A. Champi, President and Chief Executive Officer. "The current rate environment and the highly competitive marketplace in which we operate has started to place pressure on our net interest margin, as increases in funding costs have outpaced earning asset yields. One of our foremost strategic objectives is growing core deposit relationships, which will benefit our liquidity position and assist us in managing funding costs," continued Champi. "We remain focused on creating efficiency within the balance sheet through effective asset/liability management initiatives in order to build on our first quarter results," Champi concluded. 

 

Summary Results 

 

For the three months ended March 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.1% to $9.1 million from $9.0 million for the same three months of 2018. Specifically, comparing the first quarters of 2019 and 2018, a $1.2 million, or 11.4%, increase in tax-equivalent interest income was almost entirely offset by a $1.1 million, or 70.5%, increase in interest expense.  FNCB’s tax-equivalent net interest margin for the first quarter of 2019 contracted 12 basis points to 3.14% compared to 3.26% for the same quarter of 2018. The margin contraction primarily reflected a 42 basis-point increase in the cost of funds to 1.11% for the three months ended March 31, 2019 from 0.69% for the same three months of 2018. The increase in funding costs almost entirely offset the effects of strong earning asset growth and a 23 basis-point increase in the tax-equivalent yield on earning assets. Average earning assets grew $57.3 million, or 5.2%, to $1.157 billion for the three months ended March 31, 2019 from $1.100 billion for the same period of 2018, while tax-equivalent earning-asset yields improved 23 basis points to 4.06% for the three months ended March 31, 2019 compared to 3.83% for the three months ended March 31, 2018. Average interest-bearing liabilities increased $52.8 million, or 5.8%, to $961.9 million for the first quarter of 2019 from $909.2 million for the same quarter of 2018. The growth in interest-bearing liabilities resulted in only a negligible increase in interest expense, as the impact of a $97.0 million, or 12.0%, increase in average interest-bearing deposits was almost entirely mitigated by a $44.3 million , or 43.1%, reduction in average borrowed funds. 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 the three months ended March 31, 2019 and 2018.

 

Non-interest income was $1.5 million for the three months ended March 31, 2019 and 2018. FNCB realized net gains on the sale of available-for-sale debt securities of $160 thousand for the first quarter of 2019. There were no gains on the sale of available-for-sale debt securities realized during the same period of 2018. Additionally, other income increased $112 thousand to $392 thousand for the three months ended March 31, 2019 from $280 thousand for the same three months of 2018. Partially offsetting these positive factors were decreases in net gains on the sales of SBA guaranteed loans and other real estate owned. During the first quarter of 2018, FNCB realized net gains on the sales of SBA guaranteed loans and other real estate owned of $251 thousand and $38 thousand, respectively.  The were no such gains realized in the first quarter of 2019.

 

For the three months ended March 31, 2019, non-interest expense increased by $193 thousand, or 2.7%, to $7.4 million from $7.2 million for the comparable three months of 2018. The increase primarily reflected increases in salaries and employee benefits and data processing costs, partially offset by reductions in occupancy expense and other operating expenses. 

 

 

 

 

Asset Quality

 

FNCB's asset quality weakened slightly as total non-performing loans increased $1.5 million to $6.2 million, or 0.74% of total loans, at March 31, 2019 from $4.7 million, or 0.56%, of total loans at December 31, 2018. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 1.28% at March 31, 2019 compared to 0.93% at December 31, 2018. The increase in non-performing loans and loan delinquencies was primarily attributable to two commercial relationships that were placed on non-accrual status during the first quarter of 2019. The allowance for loan and lease losses was $9.3 million, or 1.10% of total loans outstanding, at March 31, 2019, compared to $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management is actively managing problem credits through heightened workout efforts focused on developing strategies to resolve borrower difficulties through liquidation of  collateral and other appropriate means. Net charge-offs were $112 thousand, or an annual rate of 0.05% of average loans, for the three months ended March 31, 2019 compared to $192 thousand, or an annual rate of 0.10% of average loans, for the same three months of 2018. FNCB recorded a credit for loan and leases losses of $154 thousand for the first quarter of 2019 compared to a provision for loan and lease losses of $720 thousand for the same quarter of 2018. The $874 thousand variance primarily reflected a decrease in historical net charge-off rates. 

 

Financial Condition

 

Total assets were $1.214 billion at March 31, 2019, a decrease of $23.3 million, or 1.9%, from $1.238 billion at December 31, 2018. The moderate contraction in total assets primarily reflected a $21.9 million, or 7.4%, decrease in available-for-sale securities to $274.1 million at March 31, 2019 from $296.0 million at December 31, 2018. The proceeds from the sale of securities was used to supplement cyclical deposit trends and minimize wholesale funding utilization. Total deposits decreased $55.5 million, or 5.1%, to $1.040 billion at March 31, 2019 from $1.096 billion at December 31, 2018, which largely reflected the cyclical deposit trends of municipal customers. Loans, net of net deferred costs and unearned income, were $838.9 million at March 31, 2019, a slight decrease of $0.2 million compared to $839.1 million at December 31, 2018. Total borrowed funds increased $5.1 million to $39.3 million at March 31, 2019 from $34.2 million at December 31, 2018, reflecting a $10.0 million increase in FHLB of Pittsburgh advances partially offset by a $5.0 million principal repayment on the subordinated debt. 

 

Total shareholders’ equity increased $26.6 million, or 27.3%, to $123.8 million at March 31, 2019 from $97.2 million at December 31, 2018. FNCB successfully completed a public offering of its common stock, which resulted in a net increase to capital after offering expenses of $21.3 million. Also factoring into the capital improvement was net income for the three months ended March 31, 2019 of $2.6 million and a $3.6 million decrease in accumulated other comprehensive loss related to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $1.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.06% and 10.45%, respectively, at March 31, 2019 from 12.69% and 8.50%, respectively, at December 31, 2018. Dividends declared and paid for the first quarter were $0.05 per share in 2019, an increase of 25.0% from $0.04 per share in 2018. The dividend payout ratio, dividends declared divided by net income, was 38.2% and 33.2% for the three months ended March 31, 2019 and 2018, respectively. 

 

 

 

 

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 currently operates through 16 community offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making its 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, 2018.

 

 

 

FNCB Bancorp, Inc.

Selected Financial Data

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 
   

2019

   

2018

   

2018

   

2018

   

2018

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  

Cash dividends declared

  $ 0.05     $ 0.05     $ 0.04     $ 0.04     $ 0.04  

Book value

  $ 6.16     $ 5.78     $ 5.15     $ 5.18     $ 5.17  

Tangible book value

  $ 6.16     $ 5.78     $ 5.15     $ 5.18     $ 5.17  

Market value:

                                       

High

  $ 10.68     $ 10.39     $ 12.00     $ 10.00     $ 9.98  

Low

  $ 7.14     $ 8.21     $ 7.97     $ 8.01     $ 7.01  

Close

  $ 7.70     $ 8.44     $ 9.77     $ 8.88     $ 9.24  

Common shares outstanding

    20,108,560       16,821,371       16,819,471       16,817,097       16,766,600  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.86 %     2.26 %     0.59 %     0.79 %     0.70 %

Annualized return on average shareholders' equity

    9.70 %     32.26 %     8.41 %     11.23 %     9.44 %

Efficiency ratio

    71.24 %     47.59 %     67.11 %     63.94 %     68.78 %

Tier I leverage ratio

    10.45 %     8.50 %     7.66 %     7.69 %     7.80 %

Total risk-based capital to risk-adjusted assets

    15.06 %     12.69 %     11.42 %     11.31 %     11.70 %

Average shareholders' equity to average total assets

    8.89 %     7.00 %     7.00 %     7.05 %     7.38 %

Yield on earning assets (FTE)

    4.06 %     4.06 %     4.04 %     3.96 %     3.83 %

Cost of funds

    1.11 %     1.04 %     1.00 %     0.84 %     0.69 %

Net interest spread (FTE)

    2.95 %     3.02 %     3.04 %     3.12 %     3.15 %

Net interest margin (FTE)

    3.14 %     3.17 %     3.21 %     3.26 %     3.26 %

Total delinquent loans/total loans

    1.28 %     0.93 %     0.90 %     0.71 %     0.73 %

Allowance for loan and lease losses/total loans

    1.10 %     1.13 %     1.14 %     1.11 %     1.18 %

Non-performing loans/total loans

    0.74 %     0.56 %     0.51 %     0.41 %     0.30 %

Annualized net charge-offs/average loans

    0.05 %     0.05 %     0.36 %     0.47 %     0.10 %

 

 

 

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

March 31,

 

(in thousands, except share data)

 

2019

   

2018

 

Interest income

               

Interest and fees on loans

  $ 9,407     $ 8,288  

Interest and dividends on securities

               

U.S. government agencies

    893       890  

State and political subdivisions, tax-free

    37       20  

State and political subdivisions, taxable

    1,021       1,024  

Other securities

    205       195  

Total interest and dividends on securities

    2,156       2,129  

Interest on interest-bearing deposits in other banks

    46       23  

Total interest income

    11,609       10,440  

Interest expense

               

Interest on deposits

    2,238       1,067  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    287       352  

Interest on subordinated debentures

    24       56  

Interest on junior subordinated debentures

    114       87  

Total interest on borrowed funds

    425       495  

Total interest expense

    2,663       1,562  

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

    8,946       8,878  

(Credit) provision for loan and lease losses

    (154 )     720  

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

    9,100       8,158  

Non-interest income

               

Deposit service charges

    685       702  

Net gain on the sale of securities

    160       -  

Net gain (loss) on equity securities

    12       (19 )

Net gain on the sale of mortgage loans held for sale

    56       49  

Net gain on the sale of SBA guaranteed loans

    -       251  

Net gain on the sale of other real estate owned

    -       38  

Loan-related fees

    79       84  

Income from bank-owned life insurance

    131       134  

Other

    392       280  

Total non-interest income

    1,515       1,519  

Non-interest expense

               

Salaries and employee benefits

    3,899       3,666  

Occupancy expense

    550       603  

Equipment expense

    307       314  

Data processing expense

    781       648  

Regulatory assessments

    168       201  

Bank shares tax

    278       267  

Professional fees

    332       296  

Insurance expense

    126       135  

Other operating expenses

    984       1,102  

Total non-interest expense

    7,425       7,232  

Income before income taxes

    3,190       2,445  

Income tax expense

    555       426  

Net income

  $ 2,635     $ 2,019  
                 

Income per share

               

Basic

  $ 0.14     $ 0.12  

Diluted

  $ 0.14     $ 0.12  
                 

Cash dividends declared per common share

  $ 0.05     $ 0.04  

Weighted average number of shares outstanding:

               

Basic

    18,720,502       16,763,401  

Diluted

    18,733,652       16,789,336  

 

 

 

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands, except share data)

 

2019

   

2018

   

2018

   

2018

   

2018

 

Interest income

                                       

Interest and fees on loans

  $ 9,407     $ 9,561     $ 9,501     $ 9,031     $ 8,288  

Interest and dividends on securities

                                       

U.S. government agencies

    893       890       899       886       890  

State and political subdivisions, tax-free

    37       38       37       38       20  

State and political subdivisions, taxable

    1,021       1,026       1,028       1,027       1,024  

Other securities

    205       167       211       240       195  

Total interest and dividends on securities

    2,156       2,121       2,175       2,191       2,129  

Interest on interest-bearing deposits in other banks

    46       36       17       12       23  

Total interest income

    11,609       11,718       11,693       11,234       10,440  

Interest expense

                                       

Interest on deposits

    2,238       2,165       1,559       1,134       1,067  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    287       251       715       707       352  

Interest on subordinated debentures

    24       57       58       57       56  

Interest on junior subordinated debentures

    114       108       106       99       87  

Total interest on borrowed funds

    425       416       879       863       495  

Total interest expense

    2,663       2,581       2,438       1,997       1,562  

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

    8,946       9,137       9,255       9,237       8,878  

(Credit) provision for loan and lease losses

    (154 )     (199 )     1,149       880       720  

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

    9,100       9,336       8,106       8,357       8,158  

Non-interest income

                                       

Deposit service charges

    685       725       711       747       702  

Net gain (loss) on the sale of securities

    160       -       -       (4 )     -  

Net gain (loss) on equity securities

    12       7       (8 )     (7 )     (19 )

Net gain on the sale of mortgage loans held for sale

    56       39       71       51       49  

Net gain on the sale of SBA guaranteed loans

    -       -       -       71       251  

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

    -       -       -       (7 )     38  

Loan-related fees

    79       145       85       76       84  

Income from bank-owned life insurance

    131       142       141       138       134  

Insurance recovery

    -       6,027       -       -       -  

Other

    392       337       320       464       280  

Total non-interest income

    1,515       7,422       1,320       1,529       1,519  

Non-interest expense

                                       

Salaries and employee benefits

    3,899       4,048       3,581       3,485       3,666  

Occupancy expense

    550       562       500       526       603  

Equipment expense

    307       318       299       323       314  

Data processing expense

    781       759       745       647       648  

Regulatory assessments

    168       213       251       196       201  

Bank shares tax

    278       (131 )     278       222       267  

Professional fees

    332       295       241       196       296  

Insurance expense

    126       117       130       133       135  

Other operating expenses

    984       1,760       1,163       1,238       1,102  

Total non-interest expense

    7,425       7,941       7,188       6,966       7,232  

Income before income taxes

    3,190       8,817       2,238       2,920       2,445  

Income tax expense

    555       1,749       388       508       426  

Net income

  $ 2,635     $ 7,068     $ 1,850     $ 2,412     $ 2,019  
                                         

Income per share

                                       

Basic

  $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  

Diluted

  $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  
                                         

Cash dividends declared per common share

  $ 0.05     $ 0.05     $ 0.04     $ 0.04     $ 0.04  

Weighted average number of shares outstanding:

                                       

Basic

    18,720,502       16,820,337       16,818,625       16,792,812       16,763,401  

Diluted

    18,733,652       16,840,933       16,838,547       16,819,286       16,789,336  

 

 

 

FNCB Bancorp, Inc.

Consolidated Balance Sheets

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2019

   

2018

   

2018

   

2018

   

2018

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 25,683     $ 26,673     $ 23,051     $ 16,500     $ 12,323  

Interest-bearing deposits in other banks

    7,062       9,808       7,246       4,624       1,873  

Total cash and cash equivalents

    32,745       36,481       30,297       21,124       14,196  

Available-for-sale debt securities, at fair value

    274,114       296,032       288,780       290,863       298,314  

Equity securities, at fair value

    904       891       884       892       899  

Restricted stock, at cost

    3,120       3,123       3,333       7,964       5,703  

Loans held for sale

    609       820       938       629       366  

Loans, net of net deferred costs and unearned income

    838,864       839,100       864,316       855,391       808,202  

Allowance for loan and lease losses

    (9,253 )     (9,519 )     (9,827 )     (9,459 )     (9,562 )

Net loans

    829,611       829,581       854,489       845,932       798,640  

Bank premises and equipment, net

    14,991       14,425       13,895       13,900       12,870  

Accrued interest receivable

    3,706       3,614       4,061       3,654       3,430  

Bank-owned life insurance

    31,146       31,015       30,873       30,732       30,594  

Other real estate owned

    919       919       715       787       579  

Other assets

    22,526       20,831       22,857       22,810       23,669  

Total assets

  $ 1,214,451     $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 157,073     $ 156,600     $ 166,967     $ 177,388     $ 172,896  

Interest-bearing

    883,017       939,029       928,154       777,855       782,357  

Total deposits

    1,040,090       1,095,629       1,095,121       955,243       955,253  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    28,988       18,930       46,490       174,251       121,485  

Subordinated debentures

    -       5,000       5,000       5,000       5,000  

Junior subordinated debentures

    10,310       10,310       10,310       10,310       10,310  

Total borrowed funds

    39,298       34,240       61,800       189,561       136,795  

Accrued interest payable

    339       338       318       331       284  

Other liabilities

    10,942       10,306       7,306       7,027       10,190  

Total liabilities

    1,090,669       1,140,513       1,164,545       1,152,162       1,102,522  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    25,135       21,026       21,024       21,021       20,958  

Additional paid-in capital

    80,827       63,547       63,469       63,374       63,335  

Retained earnings

    18,809       17,186       10,965       9,792       8,057  

Accumulated other comprehensive loss

    (989 )     (4,540 )     (8,881 )     (7,062 )     (5,612 )

Total shareholders' equity

    123,782       97,219       86,577       87,125       86,738  

Total liabilities and shareholders’ equity

  $ 1,214,451     $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260  

 

 

 

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(dollars in thousands)

 

2019

   

2018

   

2018

   

2018

   

2018

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 8,940     $ 9,090     $ 9,059     $ 8,631     $ 7,934  

Loans - tax-free

    591       596       559       506       448  

Total loans

    9,531       9,686       9,618       9,137       8,382  

Securities:

                                       

Securities, taxable

    2,119       2,083       2,138       2,153       2,109  

Securities, tax-free

    47       48       47       48       25  

Total interest and dividends on securities

    2,166       2,131       2,185       2,201       2,134  

Interest-bearing deposits in other banks

    46       36       17       12       23  

Total interest income

    11,743       11,853       11,820       11,350       10,539  

Interest expense

                                       

Deposits

    2,238       2,165       1,559       1,134       1,067  

Borrowed funds

    425       416       879       863       495  
      2,663       2,581       2,438       1,997       1,562  

Net interest income

  $ 9,080     $ 9,272     $ 9,382     $ 9,353     $ 8,977  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 784,359     $ 796,886     $ 803,314     $ 784,427     $ 748,375  

Loans - tax-free

    59,220       58,722       55,848       49,855       44,383  

Total loans

    843,579       855,608       859,162       834,282       792,758  

Securities:

                                       

Securities, taxable

    299,498       299,981       303,037       305,627       301,032  

Securities, tax-free

    4,638       4,651       4,664       4,677       2,325  

Total securities

    304,136       304,632       307,701       310,304       303,357  

Interest-bearing deposits in other banks

    9,495       8,438       3,735       2,629       3,825  

Total interest-earning assets

    1,157,210       1,168,678       1,170,598       1,147,215       1,099,940  

Non-earning assets

    81,868       72,999       75,518       74,188       76,114  

Total assets

  $ 1,239,078     $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054  

Interest-bearing liabilities:

                                       

Deposits

  $ 903,542     $ 926,767     $ 827,570     $ 790,233     $ 806,494  

Borrowed funds

    58,402       62,495       149,682       163,547       102,676  

Total interest-bearing liabilities

    961,944       989,262       977,252       953,780       909,170  

Demand deposits

    155,122       157,223       173,616       173,037       169,450  

Other liabilities

    11,801       8,272       7,983       8,444       10,663  

Shareholders' equity

    110,211       86,920       87,265       86,142       86,771  

Total liabilities and shareholders' equity

  $ 1,239,078     $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    4.56 %     4.56 %     4.51 %     4.40 %     4.24 %

Interest and fees on loans - tax-free

    3.99 %     4.06 %     4.01 %     4.06 %     4.04 %

Total loans

    4.52 %     4.53 %     4.48 %     4.38 %     4.23 %

Securities:

                                       

Securities, taxable

    2.83 %     2.78 %     2.82 %     2.82 %     2.80 %

Securities, tax-free

    4.05 %     4.13 %     4.03 %     4.11 %     4.30 %

Total securities

    2.85 %     2.80 %     2.84 %     2.84 %     2.81 %

Interest-bearing deposits in other banks

    1.94 %     1.71 %     1.82 %     1.83 %     2.41 %

Total earning assets

    4.06 %     4.06 %     4.04 %     3.96 %     3.83 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.99 %     0.93 %     0.75 %     0.57 %     0.53 %

Interest on borrowed funds

    2.91 %     2.66 %     2.35 %     2.11 %     1.93 %

Total interest-bearing liabilities

    1.11 %     1.04 %     1.00 %     0.84 %     0.69 %

Net interest spread

    2.95 %     3.02 %     3.04 %     3.12 %     3.15 %

Net interest margin

    3.14 %     3.17 %     3.21 %     3.26 %     3.26 %

 

 

 

FNCB Bancorp, Inc.

Asset Quality Data

 

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

   

Mar 31,

 

(in thousands)

 

2019

   

2018

   

2018

   

2018

   

2018

 

At period end

                                       

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

  $ 6,175     $ 4,696     $ 4,391     $ 3,469     $ 2,403  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    6,175       4,696       4,391       3,469       2,403  

Other real estate owned (OREO)

    919       919       715       787       579  

Other non-performing assets

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

Total non-performing assets

  $ 8,994     $ 7,515     $ 7,006     $ 6,156     $ 4,882  
                                         

Accruing TDRs

  $ 8,215     $ 8,457     $ 8,515     $ 8,741     $ 8,797  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

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

Loans charged-off

    454       392       1,037       1,310       400  

Recoveries of charged-off loans

    342       283       256       327       208  

Net charge-offs

    112       109       781       983       192  

(Credit) provision for loan and lease losses

    (154 )     (199 )     1,149       880       720  

Ending balance

  $ 9,253     $ 9,519     $ 9,827     $ 9,459     $ 9,562  

 

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