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Source: FNCB Bancorp, Inc.

FNCB Bancorp, Inc. Reports Third Quarter Net Income of $1.850 Million

Year-To-Date Revenue of $31.7 Million Up 7.4% from Prior Year  

DUNMORE, Pa., Oct. 19, 2018 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), reported net income of $1.850 million, or $0.11 per basic and diluted share, for the third quarter of 2018, compared to net income of $2.272 million, or $0.14 per basic and diluted share, for the same quarter of 2017. The $422 thousand, or 18.6%, decrease in third quarter earnings reflected increases of $0.8 million in non-interest expense and $0.6 million in the provision for loan and lease losses, coupled with a $ 0.4 million decrease in non-interest income. Partially offsetting these factors was a $0.9 million increase in net interest income comparing the third quarters of 2018 and 2017. Net income for the nine months ended September 30, 2018 was $6.281 million, or $0.37 per basic and diluted share, compared to $6.261 million, or $0.37 per basic and diluted share, for the same period of 2017.

Cash Dividends Declared

Dividends declared and paid were $0.04 per share for the third quarter and $0.12 per share for the year-to-date period of 2018, which represented a 33.3% increase compared to $0.03 per share and $0.09 per share, respectively, for the three and nine months ended September 30, 2017. The dividend pay-out ratio for the nine months ended September 30, 2018 was 32.1%, compared to 24.0% for the same period of 2017.

Third Quarter 2018 Performance Highlights:

  • Year-to-date total revenue (net interest income and non-interest income) increased 7.4% year over year;
  • Net interest income (FTE) increased 10.5% and 11.9%, comparing the third quarter and year-to-date periods of 2018 and 2017, respectively;
  • Yield on earning assets (FTE) for the third quarter of 2018 improved 27 basis points compared to the same quarter of 2017;
  • Year over year growth in total loans, net of net deferred costs and unearned income, of $104.8 million, or 13.8%;
  • Total deposits grew $111.9 million, or 11.4%, comparing September 30, 2018 and 2017.

“The efforts of our dedicated team resulted in another solid and productive quarter characterized by continued loan and deposit growth, a double-digit increase in interest income compared to the prior year quarter, as well as solid year-over-year revenue growth (net interest income + non-interest income),” said Gerard A. Champi, President and Chief Executive Officer. “Loan demand in the third quarter of 2018 was driven by strong consumer loan activity and growth in our commercial real estate and municipal portfolios. Our third quarter loan loss provision was up $606 thousand in comparison to the third quarter 2017, primarily reflecting strong loan growth and a single commercial relationship that was placed on non-accrual status. Overall, our asset quality remains favorable with key industry metrics below or in line with peer levels.  Core deposit funding, which continues to be a strategic focus, has remained solid throughout 2018, contributing to the nearly 12.0% growth in total deposits year over year. Our continued deposit growth was gratifying because it occurred despite some rather aggressive pricing from competitors across our service footprint, indicative of the ongoing strength of the FNCB Bank brand. We continue to focus on improving financial performance, with a specific benchmark for return on average assets of 1.00%. At the close of the third quarter of 2018, our balance sheet remains strong and our ability to attract core deposits, as well as generate growth across our various loan portfolios, we believe leaves us well positioned to extend our performance through the remainder of 2018 and the first half of 2019.”

Summary Results for the Three and Nine Months Ended September 30, 2018

Tax-equivalent net interest income was $9.4 million for the third quarter of 2018, an increase of $0.9 million, or 10.5%, from $8.5 million for the same quarter of 2017. Tax-equivalent net interest income for the nine months ended September 30, 2018 increased $2.9 million, or 11.9%, to $27.7 million compared to $24.8 million for the same nine-month period of 2017. The improvement for both the quarter and year-to-date periods was largely due to growth in average earning assets and higher earning-asset yields, partially offset by higher funding costs. Average earning assets grew $133.3 million, or 12.9%, and $102.2 million, or 9.9%, comparing the three- and nine-month periods ended September 30, 2018 and 2017, respectively. Tax-equivalent earning-asset yields improved 27 basis points for the third quarter and 31 basis points for the nine months ended September 30, 2018 over the same periods of 2017. For the three months ended September 30, 2018, the cost of funds increased 41 basis points to 1.00% from 0.59% for the same period of 2017. Similarly, the cost of funds increased 31 basis points to 0.84% from 0.53% comparing the year-to-date periods of 2018 and 2017. The tax-equivalent net interest spread for the nine months ended September 30, 2018 and 2017 remained stable at 3.10%, while the tax-equivalent net interest margin increased 6 basis points to 3.24% from 3.18% comparing the nine months ended September 30, 2018 and 2017, respectively. Despite the increase in the year-to-date margin, rising funding costs in the third quarter of 2018 resulted in a decrease in the tax-equivalent net interest margin of 6 basis points to 3.21% from 3.27% from the same quarter of 2017.  Additionally, the net interest margin for the third quarter of 2018 compressed 5 basis points from the second quarter of 2018 percentage of 3.26%. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for 2018 and 34.0% for 2017.

Non-interest income totaled $1.3 million for the three months ended September 30, 2018, a decrease of $0.4 million, or 23.0%, compared to $1.7 million for the comparable period of 2017. For the nine months ended September 30, 2018, non-interest income amounted to $4.4 million, a decrease of $0.9 million, or 17.7%, compared to $5.3 million for the same period of 2017. Included in non-interest income for the three and nine months ended September 30, 2017 were net gains on the sale of available-for sale securities of $0.4 million and $1.3 million, respectively. Comparatively, there were no net gains on the sale of available-for-sale securities for the three months ended September 30, 2018. For the nine months ended September 30, 2018, FNCB realized net losses on the sale of available-for-sale securities of $4 thousand.

For the three months ended September 30, 2018, non-interest expense increased $0.8 million, or 12.4%, to $7.2 million from $6.4 million for the same three months of 2017. Comparing the nine months ended September 30, 2018 and 2017, non-interest expense increased $1.1 million, or 5.5%.  The increase in non-interest expense resulted largely from higher salaries and employee benefits expense related to staffing additions within FNCB Bank’s retail and commercial lending and credit administration units, coupled with increases in regulatory assessments, which, we believe, primarily reflected strong balance sheet growth.

Annualized return on average assets and return on average equity was 0.59% and 8.41%, respectively, for the three months ended September 30, 2018, compared to 0.80% and 9.27%, for the respective periods of 2017. For the nine months ended September 30, 2018, annualized return on average assets and return on average equity was 0.69% and 9.68%, respectively, compared to 0.74% and 8.87%, respectively, for the nine months ended September 30, 2017.

Asset Quality

Total non-performing loans were $4.4 million at September 30, 2018, an increase of $0.9 million from $3.5 million at June 30, 2018 and $1.8 million from $2.6 million at September 30, 2017. The increase from June 30, 2018 was primarily attributable to one commercial relationship that was placed on non-accrual status. The ratio of non-performing loans to total loans was 0.51% at September 30, 2018, compared to 0.41% at June 30, 2018 and 0.35% at September 30, 2017. Despite the increase in non-performing loans from the previous quarter end, FNCB’s asset quality continued to compare favorably to the peer average of 0.64% at June 30, 2018, the most recent data reported in the Board of Governors of the Federal Reserve System Bank Holding Company Performance Report for bank holding companies having assets between $1.0 billion and $3.0 billion. The allowance for loan and lease losses as a percentage of gross loans was 1.14% at September 30, 2018, 1.11% at June 30, 2018 and 1.17% at September 30, 2017.

Financial Condition

Total assets increased $88.8 million, or 7.6%, to $1.251 billion at September 30, 2018 from $1.162 billion at December 31, 2017. The increase in total assets primarily reflected strong growth in interest-earning assets. Specifically, loans, net of net deferred costs and unearned income, increased $93.7 million, or 12.2%, to $864.3 million at September 30, 2018 from $770.6 million at December 31, 2017. The asset growth was funded with an increase in total deposits of $92.7 million, or 9.2%, to $1.095 billion at September 30, 2018 from $1.002 billion at December 31, 2017. The increase in deposits was primarily attributable to increases in retail and wholesale time deposits, coupled with cyclical inflows from municipal customers.

Total shareholders’ equity decreased $2.6 million, or 2.9%, to $86.6 million at September 30, 2018 from $89.2 million at December 31, 2017. The reduction in capital resulted primarily from a $7.1 million increase in accumulated other comprehensive loss related to depreciation in the fair value of available-for-sale debt securities, net of deferred taxes, and year-to-date dividends declared of $2.0 million. Partially offsetting these decreases was net income of $6.3 million for the nine months ended September 30, 2018. Despite the decrease in capital, FNCB remains well capitalized with total risk-based capital and Tier I leverage ratios of 11.42% and 7.66%, respectively, at September 30, 2018.   

Availability of Filings

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Reports on form 10-Q will be provided upon request from: Shareholder Relations, FNCB Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. FNCB’s SEC filings including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available free of charge on the Investor Relations page of the FNCB’s website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 100 years, FNCB Bank continues as a premier community bank in Northeastern Pennsylvania – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB operates through 16 branch offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making our customers’ banking experience simply better. For more information about FNCB, visit www.fncb.com.

INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
FNCB Bank
(570) 348-6419
james.bone@fncb.com

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control).  The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements.  The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary, fiscal and tax policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business, including for deposit and loan growth: the composition and concentrations of FNCB’s lending risk and the adequacy of FNCB’s reserves to manage those risks; the valuation of FNCB’s investment securities; the ability of FNCB to pay dividends or repurchase common shares; the ability of FNCB to retain key personnel; the impact of any pending or threatened litigation against FNCB; the marketability of shares of FNCB stock and fluctuations in the value of FNCB’s share price; the effectiveness of FNCB’s system of internal controls; the ability of FNCB to attract additional capital investment; the impact of changes in financial services’ laws and regulations (including laws concerning capital adequacy, taxes, banking, securities and insurance); the ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; the impact of technological changes and security risks upon our information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of FNCB at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in FNCB’s filings with the SEC.

FNCB cautions that the foregoing list of important factors is not all inclusive.  Readers are also cautioned not to place undue reliance on any forward-looking statements, which reflect management’s analysis only as of the date of this press release, even if subsequently made available by FNCB on its website or otherwise.  FNCB does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of FNCB to reflect events or circumstances occurring after the date of this report.

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

[FNCB provides tabular information as follows]

FNCB Bancorp, Inc.
Selected Financial Data
            
   Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
    2018   2018   2018   2017   2017 
Per share data:          
Net income (loss) (fully diluted) $  0.11  $  0.14  $  0.12  $  (0.36) $  0.14 
Cash dividends declared $  0.04  $  0.04  $  0.04  $  0.04  $  0.03 
Book value $  5.15  $  5.18  $  5.17  $  5.32  $  5.82 
Tangible book value $  5.15  $  5.18  $  5.17  $  5.32  $  5.82 
Market value:          
 High $  12.00  $  10.00  $  9.98  $  7.99  $  8.00 
 Low $  7.97  $  8.01  $  7.01  $  6.54  $  7.41 
 Close $  9.77  $  8.88  $  9.24  $  7.30  $  7.57 
Common shares outstanding    16,819,471     16,817,097     16,766,600     16,757,963     16,757,963 
            
Selected ratios:          
Annualized return on average assets  0.59%  0.79%  0.70%  (2.09%)  0.80%
Annualized return on average shareholders' equity  8.41%  11.23%  9.44%  (24.98%)  9.27%
Efficiency ratio  67.11%  63.94%  68.78%  73.42%  65.09%
Tier I leverage ratio  7.66%  7.69%  7.80%  7.74%  8.10%
Total risk-based capital to risk-adjusted assets  11.42%  11.31%  11.70%  12.08%  12.17%
Average shareholders' equity to average total assets  7.00%  7.05%  7.38%  8.35%  8.61%
Yield on earning assets (FTE)  4.04%  3.96%  3.83%  3.84%  3.77%
Cost of funds  1.00%  0.84%  0.69%  0.59%  0.59%
Net interest spread (FTE)  3.04%  3.12%  3.15%  3.25%  3.18%
Net interest margin (FTE)  3.21%  3.26%  3.26%  3.35%  3.27%
Total delinquent loans/total loans  0.90%  0.71%  0.73%  0.72%  0.81%
Allowance for loan and lease losses/total loans  1.14%  1.11%  1.18%  1.17%  1.17%
Non-performing loans/total loans  0.51%  0.41%  0.30%  0.34%  0.35%
Annualized net charge-offs/average loans  0.36%  0.47%  0.10%  0.06%  0.08%
            


FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
 
     Nine Months Ended
     September 30,
(in thousands, except share data)  2018   2017
Interest income    
Interest and fees on loans $  26,820  $  21,748
Interest and dividends on securities    
 U.S. government agencies    2,675     2,566
 State and political subdivisions, tax-free    95     42
 State and political subdivisions, taxable    3,079     2,816
 Other securities    646     409
  Total interest and dividends on securities    6,495     5,833
Interest on interest-bearing deposits in other banks    52     146
   Total interest income    33,367     27,727
Interest expense    
Interest on deposits    3,760     2,513
Interest on borrowed funds    
 Interest on Federal Home Loan Bank of Pittsburgh advances    1,774     424
 Interest on subordinated debentures    171     323
 Interest on junior subordinated debentures    292     219
  Total interest on borrowed funds    2,237     966
   Total interest expense    5,997     3,479
Net interest income before provision for loan and lease losses    27,370     24,248
Provision for loan and lease losses    2,749     486
Net interest income after provision for loan and lease losses    24,621     23,762
Non-interest income    
Deposit service charges    2,160     2,147
Net (loss) gain on the sale of securities    (4)    1,338
Net loss on equity securities    (34)    -
Net gain on the sale of mortgage loans held for sale    171     241
Net gain on the sale of SBA guaranteed loans    322     79
Net gain on the sale of other repossessed assets    -     47
Net gain on the sale of other real estate owned    31     57
Loan-related fees    245     252
Income from bank-owned life insurance    413     399
Other      1,064     747
   Total non-interest income    4,368     5,307
Non-interest expense    
Salaries and employee benefits    10,732     10,069
Occupancy expense    1,629     1,567
Equipment expense    936     1,380
Data processing expense    2,040     1,502
Regulatory assessments    648     497
Bank shares tax    767     762
Professional fees    733     662
Insurance expense    398     385
Other operating expenses    3,503     3,441
   Total non-interest expense    21,386     20,265
Income before income taxes    7,603     8,804
Income tax expense    1,322     2,543
Net income  $  6,281  $  6,261
        
Income per share    
 Basic  $  0.37  $  0.37
 Diluted  $  0.37  $  0.37
        
Cash dividends declared per common  share  $  0.12  $  0.09
Weighted average number of shares outstanding:    
 Basic   16,791,815   16,711,172
 Diluted   16,813,948   16,728,852
        


FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income (Loss)
              
     Three Months Ended
     Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(in thousands, except share data)  2018   2018   2018   2017   2017
Interest income          
Interest and fees on loans $  9,501  $  9,031  $  8,288  $  8,073  $  7,576
Interest and dividends on securities          
 U.S. government agencies    899     886     890     860     816
 State and political subdivisions, tax-free    37     38     20     7     7
 State and political subdivisions, taxable    1,028     1,027     1,024     993     1,016
 Other securities    211     240     195     154     166
  Total interest and dividends on securities    2,175     2,191     2,129     2,014     2,005
Interest on interest-bearing deposits in other banks    17     12     23     34     24
   Total interest income    11,693     11,234     10,440     10,121     9,605
Interest expense          
Interest on deposits    1,559     1,134     1,067     1,008     943
Interest on borrowed funds          
 Interest on Federal Home Loan Bank of Pittsburgh advances    715     707     352     175     163
 Interest on subordinated debentures    58     57     56     57     97
 Interest on junior subordinated debentures    106     99     87     81     77
  Total interest on borrowed funds    879     863     495     313     337
   Total interest expense    2,438     1,997     1,562     1,321     1,280
Net interest income before provision for loan and lease losses    9,255     9,237     8,878     8,800     8,325
Provision for loan and lease losses    1,149     880     720     283     543
Net interest income after provision for loan and lease losses    8,106     8,357     8,158     8,517     7,782
Non-interest income          
Deposit service charges    711     747     702     756     728
Net (loss) gain on the sale of securities    -     (4)    -     259     367
Net loss on equity securities    (8)    (7)    (19)    -     -
Net gain on the sale of mortgage loans held for sale    71     51     49     63     106
Net gain on the sale of SBA guaranteed loans    -     71     251     -     23
Net (loss) gain on the sale of other real estate owned    -     (7)    37     22     -
Loan-related fees    85     76     84     132     96
Income from bank-owned life insurance    141     138     134     128     129
Other      320     464     281     558     265
   Total non-interest income    1,320     1,529     1,519     1,918     1,714
Non-interest expense          
Salaries and employee benefits    3,581     3,485     3,666     4,092     3,247
Occupancy expense    500     526     603     538     394
Equipment expense    299     323     314     435     474
Data processing expense    745     647     648     521     506
Regulatory assessments    251     196     201     189     160
Bank shares tax    278     222     267     38     252
Professional fees    241     196     296     294     206
Insurance expense    130     133     135     134     132
Other operating expenses    1,163     1,238     1,102     1,563     1,026
   Total non-interest expense    7,188     6,966     7,232     7,804     6,397
Income before income taxes    2,238     2,920     2,445     2,631     3,099
Income tax expense    388     508     426     8,745     827
Net income (loss) $  1,850  $  2,412  $  2,019  $  (6,114) $  2,272
              
Income (loss) per share          
 Basic  $  0.11  $  0.14  $  0.12  $  (0.36) $  0.14
 Diluted  $  0.11  $  0.14  $  0.12  $  (0.36) $  0.14
              
Cash dividends declared per common  share  $  0.04  $  0.04  $  0.04  $  0.04  $  0.03
Weighted average number of shares outstanding:          
 Basic   16,818,625   16,792,812   16,763,401   16,757,963   16,757,963
 Diluted   16,838,547   16,819,286   16,789,336   16,774,209   16,777,671
              


FNCB Bancorp, Inc.
Consolidated Balance Sheets
              
     Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(in thousands)  2018   2018   2018   2017   2017 
Assets            
Cash and cash equivalents:          
 Cash and due from banks $  23,051  $  16,500  $  12,323  $  22,755  $  24,881 
 Interest-bearing deposits in other banks    7,246     4,624     1,873     14,991     18,929 
  Total cash and cash equivalents    30,297     21,124     14,196     37,746     43,810 
Securities available for sale, at fair value    288,780     290,863     298,314     289,459     281,102 
Equity securities, at fair value    884     892     899     918     925 
Restricted stock, at cost    3,333     7,964     5,703     2,763     2,460 
Loans held for sale    938     629     366     1,095     147 
Loans, net of net deferred costs and unearned income    864,316     855,391     808,202     770,643     759,489 
Allowance for loan and lease losses    (9,827)    (9,459)    (9,562)    (9,034)    (8,862)
Net loans     854,489     845,932     798,640     761,609     750,627 
Bank premises and equipment, net    13,895     13,900     12,870     10,388     10,482 
Accrued interest receivable    4,061     3,654     3,430     3,234     3,203 
Bank-owned life insurance    30,873     30,732     30,594     30,460     30,332 
Other real estate owned    715     787     579     1,023     1,088 
Other assets     22,857     22,810     23,669     23,610     32,935 
   Total assets $  1,251,122  $  1,239,287  $  1,189,260  $  1,162,305  $  1,157,111 
              
Liabilities           
Deposits:           
 Demand (non-interest-bearing) $  166,967  $  177,388  $  172,896  $  176,325  $  162,426 
 Interest-bearing    928,154     777,855     782,357     826,123     820,786 
  Total deposits    1,095,121     955,243     955,253     1,002,448     983,212 
Borrowed funds:          
 Federal Home Loan Bank of Pittsburgh advances    46,490     174,251     121,485     44,968     45,350 
 Subordinated debentures    5,000     5,000     5,000     5,000     5,000 
 Junior subordinated debentures    10,310     10,310     10,310     10,310     10,310 
  Total borrowed funds    61,800     189,561     136,795     60,278     60,660 
Accrued interest payable    318     331     284     241     244 
Other liabilities    7,306     7,027     10,190     10,147     15,513 
  Total liabilities    1,164,545     1,152,162     1,102,522     1,073,114     1,059,629 
              
Shareholders' equity          
Preferred stock    -     -     -     -     - 
Common stock    21,024     21,021     20,958     20,947     20,947 
Additional paid-in capital    63,469     63,374     63,335     63,210     63,143 
Retained earnings    10,965     9,792     8,057     6,779     13,282 
Accumulated other comprehensive (loss) income    (8,881)    (7,062)    (5,612)    (1,745)    110 
  Total shareholders' equity    86,577     87,125     86,738     89,191     97,482 
   Total liabilities and shareholders’ equity $  1,251,122  $  1,239,287  $  1,189,260  $  1,162,305  $  1,157,111 
              


FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
              
     Three Months Ended
     Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(dollars in thousands)  2018   2018   2018   2017   2017 
Interest income          
Loans:            
Loans - taxable $  9,059  $  8,631  $  7,934  $  7,736  $  7,266 
Loans - tax-free    559     506     448     511     470 
 Total loans    9,618     9,137     8,382     8,247     7,736 
Securities:           
Securities, taxable    2,138     2,153     2,109     2,007     1,998 
Securities, tax-free    47     48     25     11     11 
 Total interest and dividends on securities    2,185     2,201     2,134     2,018     2,009 
Interest-bearing deposits in other banks    17     12     23     34     24 
   Total interest income    11,820     11,350     10,539     10,299     9,769 
Interest expense          
Deposits     1,559     1,134     1,067     1,008     943 
Borrowed funds    879     863     495     313     337 
        2,438     1,997     1,562     1,321     1,280 
   Net interest income $  9,382  $  9,353  $  8,977  $  8,978  $  8,489 
              
Average balances          
Earning assets:          
Loans:            
Loans - taxable $  803,314  $  784,427  $  748,375  $  725,988  $  700,729 
Loans - tax-free    55,848     49,855     44,383     41,548     38,109 
 Total loans    859,162     834,282     792,758     767,536     738,838 
Securities:           
Securities, taxable    303,037     305,627     301,032     292,307     290,348 
Securities, tax-free    4,664     4,677     2,325     600     600 
 Total securities    307,701     310,304     303,357     292,907     290,948 
Interest-bearing deposits in other banks    3,735     2,629      3,825     12,215     7,499 
   Total interest-earning assets    1,170,598     1,147,215     1,099,940     1,072,658     1,037,285 
Non-earning assets    75,518     74,188     76,114     89,801     92,603 
   Total assets $  1,246,116  $  1,221,403  $  1,176,054  $  1,162,459  $  1,129,888 
Interest-bearing liabilities:          
Deposits  $  827,570  $  790,233  $  806,494  $  824,680  $  792,649 
Borrowed funds    149,682     163,547     102,676     67,476     73,168 
   Total interest-bearing liabilities    977,252     953,780     909,170     892,156     865,817 
Demand deposits    173,616     173,037     169,450     162,135     156,483 
Other liabilities    7,983     8,444     10,663     11,079     10,325 
Shareholders' equity    87,265     86,142     86,771     97,089     97,263 
   Total liabilities and shareholders' equity $  1,246,116  $  1,221,403  $  1,176,054  $  1,162,459  $  1,129,888 
              
Yield/Cost           
Earning assets:          
Loans:            
Interest and fees on loans - taxable  4.51%  4.40%  4.24%  4.26%  4.15%
Interest and fees on loans - tax-free  4.01%  4.06%  4.04%  4.92%  4.93%
 Total loans  4.48%  4.38%  4.23%  4.30%  4.19%
Securities:           
Securities, taxable  2.82%  2.82%  2.80%  2.75%  2.75%
Securities, tax-free  4.03%  4.11%  4.30%  7.33%  7.33%
 Total securities  2.84%  2.84%  2.81%  2.76%  2.76%
Interest-bearing deposits in other banks  1.82%  1.83%  2.41%  1.11%  1.28%
   Total earning assets  4.04%  3.96%  3.83%  3.84%  3.77%
Interest-bearing liabilities:          
Interest on deposits  0.75%  0.57%  0.53%  0.49%  0.48%
Interest on borrowed funds  2.35%  2.11%  1.93%  1.86%  1.84%
   Total interest-bearing liabilities  1.00%  0.84%  0.69%  0.59%  0.59%
   Net interest spread  3.04%  3.12%  3.15%  3.25%  3.18%
   Net interest margin  3.21%  3.26%  3.26%  3.35%  3.27%
              


FNCB Bancorp, Inc.
Asset Quality Data
             
    Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(in thousands)  2018  2018  2018  2017  2017
At period end          
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $  4,391 $  3,469 $  2,403 $  2,578 $  2,642
Loans past due 90 days or more and still accruing    -    -    -    -    -
 Total non-performing loans    4,391    3,469    2,403    2,578    2,642
Other real estate owned (OREO)    715    787    579    1,023    1,088
Other non-performing assets    1,900    1,900    1,900    1,900    1,900
 Total non-performing assets $  7,006 $  6,156 $  4,882 $  5,501 $  5,630
             
Accruing TDRs $  8,515 $  8,741 $  8,797 $  9,299 $  9,283
             
             
For the three months ended          
Allowance for loan and lease losses          
Beginning balance $  9,459 $  9,562 $  9,034 $  8,862 $  8,469
Loans charged-off    1,037    1,310    400    310    377
Recoveries of charged-off loans    256    327    208    199    227
Net charge-offs    781    983    192    111    150
Provision for loan and lease losses    1,149    880    720    283    543
Ending balance $  9,827 $  9,459 $  9,562 $  9,034 $  8,862