Results

FNCB Bancorp Inc.

01/24/2020 | Press release | Distributed by Public on 01/24/2020 15:13

FNCB Bancorp, Inc. Announces 2019 Earnings

FNCB Bancorp, Inc. Announces 2019 Earnings

Company Release - 1/24/20204:05 PMET

DUNMORE, Pa., Jan. 24, 2020 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the 'Bank'), today reported net income for 2019 of $11.1 million, or $0.56 per basic and diluted share, compared to net income of $13.3 million, or $0.79 per basic and diluted share, for 2018. The $2.3 million, or 17.0%, earnings reduction was largely due to a $4.2 million decrease in non-interest revenue, partially offset by decreases in the provision for loan and lease losses and income tax expense of $1.8 million and $0.7 million, respectively. Net income for the fourth quarter of 2019 was $3.5 million, a decrease of $3.6 million, or 50.7%, compared to $7.1 million for the same quarter of 2018, which primarily reflected a $4.7 million decrease in non-interest income, partially offset by a $1.0 million decrease in income tax expense. Included in non-interest income for the three months and year ended December 31, 2018 was $6.0 million in non-recurring income related to an insurance recovery.

Return on average assets and return on average shareholders' equity were 0.92% and 8.88%, respectively, in 2019, compared to 1.09% and 15.38%, respectively in 2018. For the three months ended December 31, 2019, annualized return on average assets and annualized return on average shareholders' equity were 1.15% and 10.43%, respectively. Comparatively, annualized return on average assets was 2.26% and annualized return on average shareholders' equity was 32.26% for the three months ended December 31, 2018.

Dividends declared and paid in 2019 totaled $0.20 per share, an increase of $0.03 per share, or 17.6%, compared to $0.17 per share for 2018. Total dividends declared and paid for 2019 equated to a dividend yield of approximately 2.37% based on the closing stock price of $8.45 per share at December 31, 2019.

2019 Highlights:

  • Successfully completed a $23.0 million common stock offering in the first quarter of 2019;
  • Joined the Russell 3000® Index effective July 1, 2019;
  • Celebrated the grand opening of FNCB Bank's 17th community office located in Mountain Top, Luzerne County, Pennsylvania in the second quarter of 2019;
  • Completed the relocation and new construction of FNCB Bank's Main Office to a brand new, state-of-the-art facility with a grand re-opening in the fourth quarter of 2019;
  • Total risk-based capital and Tier I Leverage ratios improved to 16.11% and 11.37% at December 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;
  • Yield on earning assets (FTE) for the fourth quarter increased 10 basis points year over year to 4.16% in 2019 compared to 4.06% in 2018;
  • Cost of funds for the fourth quarter of 2019 decreased 6 basis points to 0.98% from 1.04% for the fourth quarter of 2018;
  • Net interest margin (FTE) improved 21 basis points to 3.38% from 3.17% comparing the fourth quarters for 2019 and 2018, respectively; and
  • Dividend payout ratio reached 36.4% in 2019.

'2019 was a successful year for our Company, and we would like to thank our entire FNCB team for all their hard work,' stated Gerard A. Champi, President and Chief Executive Officer. 'We were able to take advantage of changes in market conditions to re-position and create efficiency within our balance sheet by trading off lower-yielding assets for higher-yielding, higher-quality earning assets, while reducing our reliance on more expensive wholesale funding. This strategy has translated into consistent increases in earning asset yields, reductions in funding costs and improvement in our net interest margin throughout 2019,' continued Champi. 'We believe we are well-positioned to continue to create value within our franchise as we move forward into 2020,' Champi concluded.

Summary Results

For the three months ended December 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.6% to $9.4 million from $9.3 million for the same three months of 2018. Additionally, FNCB's tax-equivalent net interest margin for the fourth quarter of 2019 improved 21 basis points to 3.38% compared to 3.17% for the same quarter of 2018. The margin improvement primarily reflected an increase in the tax-equivalent yield on average earning assets of 10 basis points to 4.16% for the fourth quarter of 2019 from 4.06% for the same quarter of 2018, coupled with a 6 basis-point decrease in the cost of funds to 0.98% for the three months ended December 31, 2019 from 1.04% for the same three months of 2018. For the year ended December 31, 2019, tax-equivalent net interest income decreased $0.3 million, or 0.8%, to $36.7 million compared to $37.0 million for the year ended December 31, 2018. The modest decrease in net interest income for the year-to-date period was largely due to higher funding costs, partially offset by an increase in the tax-equivalent yield on average earning assets. For the year ended December 31, 2019, the cost of funds increased 18 basis points to 1.08% from 0.90% for the year ended December 31, 2018. Conversely, the tax-equivalent earning-asset yields improved 18 basis points to 4.15% in 2019 compared to 3.97% in 2018. The tax-equivalent net interest margin improved 5 basis points to 3.27% in 2019 from 3.22% in 2018. Additionally, the net interest margin for the fourth quarter of 2019 improved 6 basis points to 3.38% from 3.32% for the third quarter of 2019. 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 2019 and 2018.

For the quarter ended December 31, 2019, non-interest income amounted to $2.7 million, a decrease of $4.7 million, or 63.7%, compared to $7.4 million for the same period of 2018. Non-interest income totaled $7.6 million for the year ended December 31, 2019, a decrease of $4.2 million, or 35.4%, compared to $11.8 million for the year ended December 31, 2018. The decrease in non-interest income for the fourth quarter and year-to-date periods was primarily due to an 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, 2019 were net gains on the sale of available-for-sale securities of $0.5 million and $1.2 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, 2019, non-interest expense decreased by $0.1 million, or 1.7%, to $7.8 million from $7.9 million for the comparable three months of 2018. Non-interest expense for all of 2019 totaled $29.7 million, an increase of $0.4 million, or 1.2%, from $29.3 million for 2018. The increase in non-interest expense resulted largely from higher salaries and employee benefits expense related to staffing additions and annual merit increases, coupled with higher data processing costs and other expenses, which were partially offset by decreases in regulatory assessments, other losses and bank shares tax.

Asset Quality

Total non-performing loans increased $4.4 million to $9.1 million, or 1.10% of total loans, at December 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 1.46% at December 31, 2019 compared to 0.93% at the end of 2018. The increase in non-performing loans and loan delinquencies primarily reflected several large commercial relationships that were placed on non-accrual status during 2019. The net loans charged off, as a percentage of average loans, was 0.16% for 2019 compared to 0.25% for 2018. The allowance for loan and lease losses as a percentage of gross loans was 1.08% and 1.13% at December 31, 2019 and 2018, respectively.

Financial Condition

Total assets decreased $34.2 million, or 2.8%, to $1.204 billion at December 31, 2019, from $1.238 billion at December 31, 2018. The change in the balance sheet primarily reflected decreases in available-for-sale debt securities, loans, net of net deferred loan costs and unearned income, and cash and cash equivalents. Available-for-sale debt securities decreased $23.2 million, or 7.8%, to $272.8 million at December 31, 2019 from $296.0 million at December 31, 2018. Proceeds from the sale of available-for-sale debt securities, not re-invested back into the portfolio, were used to supplement deposit gathering. Loans, net of net deferred loan costs and unearned income, contracted $10.6 million, or 1.3%, to $828.5 million at December 31, 2019, from $839.1 million at December 31, 2018, which primarily reflected a planned reduction in the indirect automobile loan portfolio. Total deposits decreased $93.9 million, or 8.6%, to $1.002 billion at December 31, 2019 from $1.096 billion at December 31, 2018. Interest-bearing deposits decreased $116.8 million, or 12.4%, to $822.2 million at December 31, 2019 from $939.0 million at December 31, 2018, which largely reflected a $75.8 million reduction in wholesale time deposits and the runoff of retail certificates of deposit. Partially offsetting the reduction in interest-bearing deposits was a $22.9 million, or 14.6%, increase in non-interest-bearing demand deposits to $179.5 million at December 31, 2019 from $156.6 million at December 31, 2018. Total borrowed funds increased $23.0 million to $57.2 million at December 31, 2019 from $34.2 million at December 31, 2018.

Total shareholders' equity increased $36.4 million, or 37.4%, to $133.6 million at December 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 in the first quarter of 2019. Also factoring into the capital improvement was net income for 2019 of $11.1 million and a $7.6 million positive change in other comprehensive income related entirely to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $4.0 million. FNCB's total risk-based capital and Tier I leverage ratios improved to 16.11% and 11.37%, respectively, at December 31, 2019 compared to 12.69% and 8.50%, respectively, at December 31, 2018. Additionally, tangible book value improved $0.84, or 14.5%, to $6.62 per share at December 31, 2019 from $5.78 per share at December 31, 2018.

Availability of Filings

Copies of FNCB's most recent Annual Report on Form 10-K and Quarterly Reports on form 10-Q will be provided upon request from: Shareholder Relations, FNCB Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. FNCB's SEC filings including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available free of charge on the Investor Relations page of 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 17 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
Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
2019 2019 2019 2019 2018
Per share data:
Net income (fully diluted) $ 0.17 $ 0.12 $ 0.13 $ 0.14 $ 0.42
Cash dividends declared $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05
Book value $ 6.62 $ 6.57 $ 6.44 $ 6.16 $ 5.78
Tangible book value $ 6.62 $ 6.57 $ 6.44 $ 6.16 $ 5.78
Market value:
High $ 8.86 $ 9.41 $ 8.12 $ 10.68 $ 10.39
Low $ 7.03 $ 7.03 $ 7.16 $ 7.14 $ 8.21
Close $ 8.45 $ 7.81 $ 7.74 $ 7.70 $ 8.44
Common shares outstanding 20,171,408 20,169,492 20,148,017 20,108,560 16,821,371
Selected ratios:
Annualized return on average assets 1.15 % 0.80 % 0.85 % 0.86 % 2.26 %
Annualized return on average shareholders' equity 10.43 % 7.30 % 8.19 % 9.70 % 32.26 %
Efficiency ratio 67.35 % 69.20 % 68.12 % 71.24 % 47.59 %
Tier I leverage ratio 11.37 % 11.27 % 11.02 % 10.45 % 8.50 %
Total risk-based capital to risk-adjusted assets 16.11 % 15.72 % 15.71 % 15.06 % 12.69 %
Average shareholders' equity to average total assets 11.01 % 10.96 % 10.41 % 8.89 % 7.00 %
Yield on earning assets (FTE) 4.16 % 4.22 % 4.15 % 4.06 % 4.06 %
Cost of funds 0.98 % 1.11 % 1.11 % 1.11 % 1.04 %
Net interest spread (FTE) 3.18 % 3.11 % 3.04 % 2.95 % 3.02 %
Net interest margin (FTE) 3.38 % 3.32 % 3.25 % 3.14 % 3.17 %
Total delinquent loans/total loans 1.46 % 1.16 % 0.99 % 1.28 % 0.93 %
Allowance for loan and lease losses/total loans 1.08 % 1.11 % 1.10 % 1.10 % 1.13 %
Non-performing loans/total loans 1.10 % 0.73 % 0.65 % 0.74 % 0.56 %
Annualized net charge-offs/average loans 0.16 % 0.13 % 0.32 % 0.05 % 0.05 %
FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
Year Ended
December 31,
(in thousands, except share data) 2019 2018
Interest income
Interest and fees on loans $ 37,818 $ 36,381
Interest and dividends on securities
U.S. government agencies 3,545 3,565
State and political subdivisions, tax-free 149 133
State and political subdivisions, taxable 3,263 4,105
Other securities 1,093 813
Total interest and dividends on securities 8,050 8,616
Interest on interest-bearing deposits in other banks 188 88
Total interest income 46,056 45,085
Interest expense
Interest on deposits 8,101 5,925
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 1,241 2,025
Interest on subordinated debentures 24 228
Interest on junior subordinated debentures 430 400
Total interest on borrowed funds 1,695 2,653
Total interest expense 9,796 8,578
Net interest income before provision for loan and lease losses 36,260 36,507
Provision for loan and lease losses 797 2,550
Net interest income after provision for loan and lease losses 35,463 33,957
Non-interest income
Deposit service charges 3,035 2,885
Net gain (loss) on the sale of securities 1,227 (4 )
Net gain (loss) on equity securities 29 (27 )
Net gain on the sale of mortgage loans held for sale 253 210
Net gain on the sale of SBA guaranteed loans - 322
Net gain on the sale of other real estate owned 20 31
Loan-related fees 378 390
Income from bank-owned life insurance 520 555
Insurance recovery - 6,027
Other 2,158 1,401
Total non-interest income 7,620 11,790
Non-interest expense
Salaries and employee benefits 15,518 14,780
Occupancy expense 1,948 2,191
Equipment expense 1,319 1,254
Data processing expense 3,113 2,799
Regulatory assessments 306 861
Bank shares tax 566 636
Professional fees 1,056 1,028
Other operating expenses 5,856 5,778
Total non-interest expense 29,682 29,327
Income before income taxes 13,401 16,420
Income tax expense 2,326 3,071
Net income $ 11,075 $ 13,349
Income per share
Basic $ 0.56 $ 0.79
Diluted $ 0.56 $ 0.79
Cash dividends declared per common share $ 0.20 $ 0.17
Weighted average number of shares outstanding:
Basic 19,802,095 16,799,004
Diluted 19,807,592 16,820,753
FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
Three Months Ended
Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands, except share data) 2019 2019 2019 2019 2018
Interest income
Interest and fees on loans $ 9,505 $ 9,488 $ 9,418 $ 9,407 $ 9,561
Interest and dividends on securities
U.S. government agencies 822 924 906 893 890
State and political subdivisions, tax-free 37 37 38 37 38
State and political subdivisions, taxable 718 713 811 1,021 1,026
Other securities 364 314 210 205 167
Total interest and dividends on securities 1,941 1,988 1,965 2,156 2,121
Interest on interest-bearing deposits in other banks 33 30 79 46 36
Total interest income 11,479 11,506 11,462 11,609 11,718
Interest expense
Interest on deposits 1,818 1,901 2,144 2,238 2,165
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 253 448 253 287 251
Interest on subordinated debentures 0 0 0 24 57
Interest on junior subordinated debentures 99 106 111 114 108
Total interest on borrowed funds 352 554 364 425 416
Total interest expense 2,170 2,455 2,508 2,663 2,581
Net interest income before (credit) provision for loan and lease losses 9,309 9,051 8,954 8,946 9,137
(Credit) Provision for loan and lease losses (33 ) 637 347 (154 ) (199 )
Net interest income after (credit) provision for loan and lease losses 9,342 8,414 8,607 9,100 9,336
Non-interest income
Deposit service charges 832 797 721 685 725
Net gain on the sale of securities 525 379 163 160 -
Net (loss) gain on equity securities (2 ) 5 14 12 7
Net gain on the sale of mortgage loans held for sale 55 69 73 56 39
Net gain on the sale of other real estate owned - 11 9 - -
Loan-related fees 147 80 72 79 145
Income from bank-owned life insurance 126 134 129 131 142
Insurance recovery - - - - 6,027
Other 1,013 356 397 392 337
Total non-interest income 2,696 1,831 1,578 1,515 7,422
Non-interest expense
Salaries and employee benefits 3,884 3,911 3,824 3,899 4,048
Occupancy expense 494 460 444 550 562
Equipment expense 351 332 329 307 318
Data processing expense 801 742 789 781 759
Regulatory assessments 41 21 76 168 213
Bank shares tax (194 ) 205 277 278 (131 )
Professional fees 332 189 203 332 295
Other operating expenses 2,097 1,469 1,180 1,110 1,877
Total non-interest expense 7,806 7,329 7,122 7,425 7,941
Income before income taxes 4,232 2,916 3,063 3,190 8,817
Income tax expense 744 513 514 555 1,749
Net income $ 3,488 $ 2,403 $ 2,549 $ 2,635 $ 7,068
Income per share
Basic $ 0.17 $ 0.12 $ 0.13 $ 0.14 $ 0.42
Diluted $ 0.17 $ 0.12 $ 0.13 $ 0.14 $ 0.42
Cash dividends declared per common share $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05
Weighted average number of shares outstanding:
Basic 20,170,241 20,168,529 20,129,150 18,720,502 16,820,337
Diluted 20,175,758 20,172,282 20,133,850 18,733,652 16,840,933
FNCB Bancorp, Inc.
Consolidated Balance Sheets
Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands) 2019 2019 2019 2019 2018
Assets
Cash and cash equivalents:
Cash and due from banks $ 22,861 $ 30,900 $ 24,277 $ 25,683 $ 26,673
Interest-bearing deposits in other banks 11,704 6,611 5,627 7,062 9,808
Total cash and cash equivalents 34,565 37,511 29,904 32,745 36,481
Available-for-sale debt securities, at fair value 272,839 254,666 285,855 274,114 296,032
Equity securities, at fair value 920 922 917 904 891
Restricted stock, at cost 3,804 4,194 4,618 3,120 3,123
Loans held for sale 1,061 1,140 419 609 820
Loans, net of net deferred costs and unearned income 828,479 836,877 814,420 838,864 839,100
Allowance for loan and lease losses (8,950 ) (9,315 ) (8,945 ) (9,253 ) (9,519 )
Net loans 819,529 827,562 805,475 829,611 829,581
Bank premises and equipment, net 17,518 17,274 15,923 14,991 14,425
Accrued interest receivable 3,234 3,038 3,640 3,706 3,614
Bank-owned life insurance 31,230 31,104 31,275 31,146 31,015
Other real estate owned 289 412 560 919 919
Other assets 18,552 19,367 20,208 22,526 20,831
Total assets $ 1,203,541 $ 1,197,190 $ 1,198,794 $ 1,214,451 $ 1,237,732
Liabilities
Deposits:
Demand (non-interest-bearing) $ 179,465 $ 179,025 $ 157,856 $ 157,073 $ 156,600
Interest-bearing 822,244 785,035 803,208 883,017 939,029
Total deposits 1,001,709 964,060 961,064 1,040,090 1,095,629
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances 46,909 79,458 87,223 28,988 18,930
Subordinated debentures - - - - 5,000
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Total borrowed funds 57,219 89,768 97,533 39,298 34,240
Accrued interest payable 258 401 389 339 338
Other liabilities 10,748 10,394 10,102 10,942 10,306
Total liabilities 1,069,934 1,064,623 1,069,088 1,090,669 1,140,513
Shareholders' equity
Preferred stock - - - - -
Common stock 25,214 25,211 25,184 25,135 21,026
Additional paid-in capital 81,130 81,058 80,864 80,827 63,547
Retained earnings 24,207 21,733 20,345 18,809 17,186
Accumulated other comprehensive income (loss) 3,056 4,565 3,313 (989 ) (4,540 )
Total shareholders' equity 133,607 132,567 129,706 123,782 97,219
Total liabilities and shareholders' equity $ 1,203,541 $ 1,197,190 $ 1,198,794 $ 1,214,451 $ 1,237,732
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) 2019 2019 2019 2019 2018
Interest income
Loans:
Loans - taxable $ 9,138 $ 9,170 $ 9,084 $ 8,940 $ 9,090
Loans - tax-free 464 403 423 591 596
Total loans 9,602 9,573 9,507 9,531 9,686
Securities:
Securities, taxable 1,904 1,951 1,927 2,119 2,083
Securities, tax-free 47 47 48 47 48
Total interest and dividends on securities 1,951 1,998 1,975 2,166 2,131
Interest-bearing deposits in other banks 33 30 79 46 36
Total interest income 11,586 11,601 11,561 11,743 11,853
Interest expense
Deposits 1,818 1,901 2,144 2,238 2,165
Borrowed funds 352 554 364 425 416
Total interest expense 2,170 2,455 2,508 2,663 2,581
Net interest income $ 9,416 $ 9,146 $ 9,053 $ 9,080 $ 9,272
Average balances
Earning assets:
Loans:
Loans - taxable $ 791,577 $ 781,963 $ 778,540 $ 784,359 $ 796,886
Loans - tax-free 42,954 37,638 41,436 59,220 58,722
Total loans 834,531 819,601 819,976 843,579 855,608
Securities:
Securities, taxable 258,790 266,653 274,552 299,498 299,981
Securities, tax-free 4,598 4,611 4,624 4,638 4,651
Total securities 263,388 271,264 279,176 304,136 304,632
Interest-bearing deposits in other banks 16,841 10,007 14,420 9,495 8,438
Total interest-earning assets 1,114,760 1,100,872 1,113,572 1,157,210 1,168,678
Non-earning assets 90,245 90,807 85,429 81,868 72,999
Total assets $ 1,205,005 $ 1,191,679 $ 1,199,001 $ 1,239,078 $ 1,241,677
Interest-bearing liabilities:
Deposits $ 830,318 $ 794,971 $ 851,726 $ 903,542 $ 926,767
Borrowed funds 57,682 85,927 52,313 58,402 62,495
Total interest-bearing liabilities 888,000 880,898 904,039 961,944 989,262
Demand deposits 172,935 169,416 158,413 155,122 157,223
Other liabilities 11,361 10,730 11,698 11,801 8,272
Shareholders' equity 132,709 130,635 124,851 110,211 86,920
Total liabilities and shareholders' equity $ 1,205,005 $ 1,191,679 $ 1,199,001 $ 1,239,078 $ 1,241,677
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable 4.62 % 4.69 % 4.67 % 4.56 % 4.56 %
Interest and fees on loans - tax-free 4.32 % 4.28 % 4.08 % 3.99 % 4.06 %
Total loans 4.60 % 4.67 % 4.64 % 4.52 % 4.53 %
Securities:
Securities, taxable 2.94 % 2.93 % 2.81 % 2.83 % 2.78 %
Securities, tax-free 4.09 % 4.08 % 4.15 % 4.05 % 4.13 %
Total securities 2.96 % 2.95 % 2.83 % 2.85 % 2.80 %
Interest-bearing deposits in other banks 0.78 % 1.20 % 2.19 % 1.94 % 1.71 %
Total earning assets 4.16 % 4.22 % 4.15 % 4.06 % 4.06 %
Interest-bearing liabilities:
Interest on deposits 0.88 % 0.96 % 1.01 % 0.99 % 0.93 %
Interest on borrowed funds 2.44 % 2.58 % 2.78 % 2.91 % 2.66 %
Total interest-bearing liabilities 0.98 % 1.11 % 1.11 % 1.11 % 1.04 %
Net interest spread 3.18 % 3.11 % 3.04 % 2.95 % 3.02 %
Net interest margin 3.38 % 3.32 % 3.25 % 3.14 % 3.17 %
FNCB Bancorp, Inc.
Asset Quality Data
Dec 31, Sept 30, Jun 30, Mar 31, Dec 31,
(in thousands) 2019 2019 2019 2019 2018
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $ 9,084 $ 6,119 $ 5,302 $ 6,175 $ 4,696
Loans past due 90 days or more and still accruing - - - - -
Total non-performing loans 9,084 6,119 5,302 6,175 4,696
Other real estate owned (OREO) 289 412 560 919 919
Other non-performing assets 1,900 1,900 1,900 1,900 1,900
Total non-performing assets $ 11,273 $ 8,431 $ 7,762 $ 8,994 $ 7,515
Accruing TDRs $ 7,745 $ 7,828 $ 7,897 $ 8,215 $ 8,457
For the three months ended
Allowance for loan and lease losses
Beginning balance $ 9,315 $ 8,945 $ 9,253 $ 9,519 $ 9,827
Loans charged-off 620 417 1,123 454 392
Recoveries of charged-off loans 288 150 468 342 283
Net charge-offs 332 267 655 112 109
(Credit) Provision for loan and lease losses (33 ) 637 347 (154 ) (199 )
Ending balance $ 8,950 $ 9,315 $ 8,945 $ 9,253 $ 9,519
Source: FNCB Bancorp, Inc.