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FNCB Bancorp, Inc. Announces 2019 Earnings

DUNMORE, Pa., Jan. 24, 2020 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (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
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 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