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FNCB Bancorp, Inc. Reports Increase in First Quarter 2019 Earnings

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

First Quarter 2019 Highlights:

  • 30.5% increase in net income comparing the first quarters of 2019 and 2018;
  • Successfully completed a $23.0 million common stock offering;
  • Total risk-based capital and Tier I Leverage ratios improved to 15.06% and 10.45% at March 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;
  • Accelerated final payment on subordinated debt; and
  • Increased first quarter dividend by 25.0% comparing 2019 and 2018.

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

Summary Results 

For the three months ended March 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.1% to $9.1 million from $9.0 million for the same three months of 2018. Specifically, comparing the first quarters of 2019 and 2018, a $1.2 million, or 11.4%, increase in tax-equivalent interest income was almost entirely offset by a $1.1 million, or 70.5%, increase in interest expense.  FNCB’s tax-equivalent net interest margin for the first quarter of 2019 contracted 12 basis points to 3.14% compared to 3.26% for the same quarter of 2018. The margin contraction primarily reflected a 42 basis-point increase in the cost of funds to 1.11% for the three months ended March 31, 2019 from 0.69% for the same three months of 2018. The increase in funding costs almost entirely offset the effects of strong earning asset growth and a 23 basis-point increase in the tax-equivalent yield on earning assets. Average earning assets grew $57.3 million, or 5.2%, to $1.157 billion for the three months ended March 31, 2019 from $1.100 billion for the same period of 2018, while tax-equivalent earning-asset yields improved 23 basis points to 4.06% for the three months ended March 31, 2019 compared to 3.83% for the three months ended March 31, 2018. Average interest-bearing liabilities increased $52.8 million, or 5.8%, to $961.9 million for the first quarter of 2019 from $909.2 million for the same quarter of 2018. The growth in interest-bearing liabilities resulted in only a negligible increase in interest expense, as the impact of a $97.0 million, or 12.0%, increase in average interest-bearing deposits was almost entirely mitigated by a $44.3 million , or 43.1%, reduction in average borrowed funds. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for the three months ended March 31, 2019 and 2018.

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

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

Asset Quality

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

Financial Condition

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

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

Availability of Filings

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

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

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

    Mar 31,     Dec 31,     Sept 30,     Jun 30,     Mar 31,  
    2019     2018     2018     2018     2018  
Per share data:                                        
Net income (fully diluted)   $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  
Cash dividends declared   $ 0.05     $ 0.05     $ 0.04     $ 0.04     $ 0.04  
Book value   $ 6.16     $ 5.78     $ 5.15     $ 5.18     $ 5.17  
Tangible book value   $ 6.16     $ 5.78     $ 5.15     $ 5.18     $ 5.17  
Market value:                                        
High   $ 10.68     $ 10.39     $ 12.00     $ 10.00     $ 9.98  
Low   $ 7.14     $ 8.21     $ 7.97     $ 8.01     $ 7.01  
Close   $ 7.70     $ 8.44     $ 9.77     $ 8.88     $ 9.24  
Common shares outstanding     20,108,560       16,821,371       16,819,471       16,817,097       16,766,600  
                                         
Selected ratios:                                        
Annualized return on average assets     0.86 %     2.26 %     0.59 %     0.79 %     0.70 %
Annualized return on average shareholders' equity     9.70 %     32.26 %     8.41 %     11.23 %     9.44 %
Efficiency ratio     71.24 %     47.59 %     67.11 %     63.94 %     68.78 %
Tier I leverage ratio     10.45 %     8.50 %     7.66 %     7.69 %     7.80 %
Total risk-based capital to risk-adjusted assets     15.06 %     12.69 %     11.42 %     11.31 %     11.70 %
Average shareholders' equity to average total assets     8.89 %     7.00 %     7.00 %     7.05 %     7.38 %
Yield on earning assets (FTE)     4.06 %     4.06 %     4.04 %     3.96 %     3.83 %
Cost of funds     1.11 %     1.04 %     1.00 %     0.84 %     0.69 %
Net interest spread (FTE)     2.95 %     3.02 %     3.04 %     3.12 %     3.15 %
Net interest margin (FTE)     3.14 %     3.17 %     3.21 %     3.26 %     3.26 %
Total delinquent loans/total loans     1.28 %     0.93 %     0.90 %     0.71 %     0.73 %
Allowance for loan and lease losses/total loans     1.10 %     1.13 %     1.14 %     1.11 %     1.18 %
Non-performing loans/total loans     0.74 %     0.56 %     0.51 %     0.41 %     0.30 %
Annualized net charge-offs/average loans     0.05 %     0.05 %     0.36 %     0.47 %     0.10 %
                                         

FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income

    Three Months Ended  
    March 31,  
(in thousands, except share data)   2019     2018  
Interest income                
Interest and fees on loans   $ 9,407     $ 8,288  
Interest and dividends on securities                
U.S. government agencies     893       890  
State and political subdivisions, tax-free     37       20  
State and political subdivisions, taxable     1,021       1,024  
Other securities     205       195  
Total interest and dividends on securities     2,156       2,129  
Interest on interest-bearing deposits in other banks     46       23  
Total interest income     11,609       10,440  
Interest expense                
Interest on deposits     2,238       1,067  
Interest on borrowed funds                
Interest on Federal Home Loan Bank of Pittsburgh advances     287       352  
Interest on subordinated debentures     24       56  
Interest on junior subordinated debentures     114       87  
Total interest on borrowed funds     425       495  
Total interest expense     2,663       1,562  
Net interest income before (credit) provision for loan and lease losses     8,946       8,878  
(Credit) provision for loan and lease losses     (154 )     720  
Net interest income after (credit) provision for loan and lease losses     9,100       8,158  
Non-interest income                
Deposit service charges     685       702  
Net gain on the sale of securities     160       -  
Net gain (loss) on equity securities     12       (19 )
Net gain on the sale of mortgage loans held for sale     56       49  
Net gain on the sale of SBA guaranteed loans     -       251  
Net gain on the sale of other real estate owned     -       38  
Loan-related fees     79       84  
Income from bank-owned life insurance     131       134  
Other     392       280  
Total non-interest income     1,515       1,519  
Non-interest expense                
Salaries and employee benefits     3,899       3,666  
Occupancy expense     550       603  
Equipment expense     307       314  
Data processing expense     781       648  
Regulatory assessments     168       201  
Bank shares tax     278       267  
Professional fees     332       296  
Insurance expense     126       135  
Other operating expenses     984       1,102  
Total non-interest expense     7,425       7,232  
Income before income taxes     3,190       2,445  
Income tax expense     555       426  
Net income   $ 2,635     $ 2,019  
                 
Income per share                
Basic   $ 0.14     $ 0.12  
Diluted   $ 0.14     $ 0.12  
                 
Cash dividends declared per common share   $ 0.05     $ 0.04  
Weighted average number of shares outstanding:                
Basic     18,720,502       16,763,401  
Diluted     18,733,652       16,789,336  
                 

FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income

    Three Months Ended  
    Mar 31,     Dec 31,     Sept 30,     Jun 30,     Mar 31,  
(in thousands, except share data)   2019     2018     2018     2018     2018  
Interest income                                        
Interest and fees on loans   $ 9,407     $ 9,561     $ 9,501     $ 9,031     $ 8,288  
Interest and dividends on securities                                        
U.S. government agencies     893       890       899       886       890  
State and political subdivisions, tax-free     37       38       37       38       20  
State and political subdivisions, taxable     1,021       1,026       1,028       1,027       1,024  
Other securities     205       167       211       240       195  
Total interest and dividends on securities     2,156       2,121       2,175       2,191       2,129  
Interest on interest-bearing deposits in other banks     46       36       17       12       23  
Total interest income     11,609       11,718       11,693       11,234       10,440  
Interest expense                                        
Interest on deposits     2,238       2,165       1,559       1,134       1,067  
Interest on borrowed funds                                        
Interest on Federal Home Loan Bank of Pittsburgh advances     287       251       715       707       352  
Interest on subordinated debentures     24       57       58       57       56  
Interest on junior subordinated debentures     114       108       106       99       87  
Total interest on borrowed funds     425       416       879       863       495  
Total interest expense     2,663       2,581       2,438       1,997       1,562  
Net interest income before (credit) provision for loan and lease losses     8,946       9,137       9,255       9,237       8,878  
(Credit) provision for loan and lease losses     (154 )     (199 )     1,149       880       720  
Net interest income after (credit) provision for loan and lease losses     9,100       9,336       8,106       8,357       8,158  
Non-interest income                                        
Deposit service charges     685       725       711       747       702  
Net gain (loss) on the sale of securities     160       -       -       (4 )     -  
Net gain (loss) on equity securities     12       7       (8 )     (7 )     (19 )
Net gain on the sale of mortgage loans held for sale     56       39       71       51       49  
Net gain on the sale of SBA guaranteed loans     -       -       -       71       251  
Net (loss) gain on the sale of other real estate owned     -       -       -       (7 )     38  
Loan-related fees     79       145       85       76       84  
Income from bank-owned life insurance     131       142       141       138       134  
Insurance recovery     -       6,027       -       -       -  
Other     392       337       320       464       280  
Total non-interest income     1,515       7,422       1,320       1,529       1,519  
Non-interest expense                                        
Salaries and employee benefits     3,899       4,048       3,581       3,485       3,666  
Occupancy expense     550       562       500       526       603  
Equipment expense     307       318       299       323       314  
Data processing expense     781       759       745       647       648  
Regulatory assessments     168       213       251       196       201  
Bank shares tax     278       (131 )     278       222       267  
Professional fees     332       295       241       196       296  
Insurance expense     126       117       130       133       135  
Other operating expenses     984       1,760       1,163       1,238       1,102  
Total non-interest expense     7,425       7,941       7,188       6,966       7,232  
Income before income taxes     3,190       8,817       2,238       2,920       2,445  
Income tax expense     555       1,749       388       508       426  
Net income   $ 2,635     $ 7,068     $ 1,850     $ 2,412     $ 2,019  
                                         
Income per share                                        
Basic   $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  
Diluted   $ 0.14     $ 0.42     $ 0.11     $ 0.14     $ 0.12  
                                         
Cash dividends declared per common share   $ 0.05     $ 0.05     $ 0.04     $ 0.04     $ 0.04  
Weighted average number of shares outstanding:                                        
Basic     18,720,502       16,820,337       16,818,625       16,792,812       16,763,401  
Diluted     18,733,652       16,840,933       16,838,547       16,819,286       16,789,336  
                                         

FNCB Bancorp, Inc.
Consolidated Balance Sheets

    Mar 31,     Dec 31,     Sept 30,     Jun 30,     Mar 31,  
(in thousands)   2019     2018     2018     2018     2018  
Assets                                        
Cash and cash equivalents:                                        
Cash and due from banks   $ 25,683     $ 26,673     $ 23,051     $ 16,500     $ 12,323  
Interest-bearing deposits in other banks     7,062       9,808       7,246       4,624       1,873  
Total cash and cash equivalents     32,745       36,481       30,297       21,124       14,196  
Available-for-sale debt securities, at fair value     274,114       296,032       288,780       290,863       298,314  
Equity securities, at fair value     904       891       884       892       899  
Restricted stock, at cost     3,120       3,123       3,333       7,964       5,703  
Loans held for sale     609       820       938       629       366  
Loans, net of net deferred costs and unearned income     838,864       839,100       864,316       855,391       808,202  
Allowance for loan and lease losses     (9,253 )     (9,519 )     (9,827 )     (9,459 )     (9,562 )
Net loans     829,611       829,581       854,489       845,932       798,640  
Bank premises and equipment, net     14,991       14,425       13,895       13,900       12,870  
Accrued interest receivable     3,706       3,614       4,061       3,654       3,430  
Bank-owned life insurance     31,146       31,015       30,873       30,732       30,594  
Other real estate owned     919       919       715       787       579  
Other assets     22,526       20,831       22,857       22,810       23,669  
Total assets   $ 1,214,451     $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260  
                                         
Liabilities                                        
Deposits:                                        
Demand (non-interest-bearing)   $ 157,073     $ 156,600     $ 166,967     $ 177,388     $ 172,896  
Interest-bearing     883,017       939,029       928,154       777,855       782,357  
Total deposits     1,040,090       1,095,629       1,095,121       955,243       955,253  
Borrowed funds:                                        
Federal Home Loan Bank of Pittsburgh advances     28,988       18,930       46,490       174,251       121,485  
Subordinated debentures     -       5,000       5,000       5,000       5,000  
Junior subordinated debentures     10,310       10,310       10,310       10,310       10,310  
Total borrowed funds     39,298       34,240       61,800       189,561       136,795  
Accrued interest payable     339       338       318       331       284  
Other liabilities     10,942       10,306       7,306       7,027       10,190  
Total liabilities     1,090,669       1,140,513       1,164,545       1,152,162       1,102,522  
                                         
Shareholders' equity                                        
Preferred stock     -       -       -       -       -  
Common stock     25,135       21,026       21,024       21,021       20,958  
Additional paid-in capital     80,827       63,547       63,469       63,374       63,335  
Retained earnings     18,809       17,186       10,965       9,792       8,057  
Accumulated other comprehensive loss     (989 )     (4,540 )     (8,881 )     (7,062 )     (5,612 )
Total shareholders' equity     123,782       97,219       86,577       87,125       86,738  
Total liabilities and shareholders’ equity   $ 1,214,451     $ 1,237,732     $ 1,251,122     $ 1,239,287     $ 1,189,260  
                                         

FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income

    Three Months Ended  
    Mar 31,     Dec 31,     Sept 30,     Jun 30,     Mar 31,  
(dollars in thousands)   2019     2018     2018     2018     2018  
Interest income                                        
Loans:                                        
Loans - taxable   $ 8,940     $ 9,090     $ 9,059     $ 8,631     $ 7,934  
Loans - tax-free     591       596       559       506       448  
Total loans     9,531       9,686       9,618       9,137       8,382  
Securities:                                        
Securities, taxable     2,119       2,083       2,138       2,153       2,109  
Securities, tax-free     47       48       47       48       25  
Total interest and dividends on securities     2,166       2,131       2,185       2,201       2,134  
Interest-bearing deposits in other banks     46       36       17       12       23  
Total interest income     11,743       11,853       11,820       11,350       10,539  
Interest expense                                        
Deposits     2,238       2,165       1,559       1,134       1,067  
Borrowed funds     425       416       879       863       495  
      2,663       2,581       2,438       1,997       1,562  
Net interest income   $ 9,080     $ 9,272     $ 9,382     $ 9,353     $ 8,977  
                                         
Average balances                                        
Earning assets:                                        
Loans:                                        
Loans - taxable   $ 784,359     $ 796,886     $ 803,314     $ 784,427     $ 748,375  
Loans - tax-free     59,220       58,722       55,848       49,855       44,383  
Total loans     843,579       855,608       859,162       834,282       792,758  
Securities:                                        
Securities, taxable     299,498       299,981       303,037       305,627       301,032  
Securities, tax-free     4,638       4,651       4,664       4,677       2,325  
Total securities     304,136       304,632       307,701       310,304       303,357  
Interest-bearing deposits in other banks     9,495       8,438       3,735       2,629       3,825  
Total interest-earning assets     1,157,210       1,168,678       1,170,598       1,147,215       1,099,940  
Non-earning assets     81,868       72,999       75,518       74,188       76,114  
Total assets   $ 1,239,078     $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054  
Interest-bearing liabilities:                                        
Deposits   $ 903,542     $ 926,767     $ 827,570     $ 790,233     $ 806,494  
Borrowed funds     58,402       62,495       149,682       163,547       102,676  
Total interest-bearing liabilities     961,944       989,262       977,252       953,780       909,170  
Demand deposits     155,122       157,223       173,616       173,037       169,450  
Other liabilities     11,801       8,272       7,983       8,444       10,663  
Shareholders' equity     110,211       86,920       87,265       86,142       86,771  
Total liabilities and shareholders' equity   $ 1,239,078     $ 1,241,677     $ 1,246,116     $ 1,221,403     $ 1,176,054  
                                         
Yield/Cost                                        
Earning assets:                                        
Loans:                                        
Interest and fees on loans - taxable     4.56 %     4.56 %     4.51 %     4.40 %     4.24 %
Interest and fees on loans - tax-free     3.99 %     4.06 %     4.01 %     4.06 %     4.04 %
Total loans     4.52 %     4.53 %     4.48 %     4.38 %     4.23 %
Securities:                                        
Securities, taxable     2.83 %     2.78 %     2.82 %     2.82 %     2.80 %
Securities, tax-free     4.05 %     4.13 %     4.03 %     4.11 %     4.30 %
Total securities     2.85 %     2.80 %     2.84 %     2.84 %     2.81 %
Interest-bearing deposits in other banks     1.94 %     1.71 %     1.82 %     1.83 %     2.41 %
Total earning assets     4.06 %     4.06 %     4.04 %     3.96 %     3.83 %
Interest-bearing liabilities:                                        
Interest on deposits     0.99 %     0.93 %     0.75 %     0.57 %     0.53 %
Interest on borrowed funds     2.91 %     2.66 %     2.35 %     2.11 %     1.93 %
Total interest-bearing liabilities     1.11 %     1.04 %     1.00 %     0.84 %     0.69 %
Net interest spread     2.95 %     3.02 %     3.04 %     3.12 %     3.15 %
Net interest margin     3.14 %     3.17 %     3.21 %     3.26 %     3.26 %
                                         

FNCB Bancorp, Inc.
Asset Quality Data

    Mar 31,     Dec 31,     Sept 30,     Jun 30,     Mar 31,  
(in thousands)   2019     2018     2018     2018     2018  
At period end                                        
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)   $ 6,175     $ 4,696     $ 4,391     $ 3,469     $ 2,403  
Loans past due 90 days or more and still accruing     -       -       -       -       -  
Total non-performing loans     6,175       4,696       4,391       3,469       2,403  
Other real estate owned (OREO)     919       919       715       787       579  
Other non-performing assets     1,900       1,900       1,900       1,900       1,900  
Total non-performing assets   $ 8,994     $ 7,515     $ 7,006     $ 6,156     $ 4,882  
                                         
Accruing TDRs   $ 8,215     $ 8,457     $ 8,515     $ 8,741     $ 8,797  
                                         
                                         
For the three months ended                                        
Allowance for loan and lease losses                                        
Beginning balance   $ 9,519     $ 9,827     $ 9,459     $ 9,562     $ 9,034  
Loans charged-off     454       392       1,037       1,310       400  
Recoveries of charged-off loans     342       283       256       327       208  
Net charge-offs     112       109       781       983       192  
(Credit) provision for loan and lease losses     (154 )     (199 )     1,149       880       720  
Ending balance   $ 9,253     $ 9,519     $ 9,827     $ 9,459     $ 9,562