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FNCB Bancorp, Inc. (FNCB)

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Previous Close7.15
Open7.15
Bid7.21 x 900
Ask7.26 x 800
Day's Range7.15 - 7.23
52 Week Range5.08 - 8.94
Volume3,021
Avg. Volume38,916
Market Cap146.022M
Beta (5Y Monthly)0.45
PE Ratio (TTM)7.64
EPS (TTM)0.94
Earnings DateJan 29, 2021
Forward Dividend & Yield0.24 (3.41%)
Ex-Dividend DateMay 28, 2021
1y Target EstN/A
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  • FNCB Bancorp, Inc. Announces First Quarter 2021 Net Income
    GlobeNewswire

    FNCB Bancorp, Inc. Announces First Quarter 2021 Net Income

    DUNMORE, Pa., April 30, 2021 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (NASDAQ: FNCB; www.fncb.com), the parent company of Dunmore-based FNCB Bank (the “Bank”), (collectively, ("FNCB") today reported net income of $5.8 million, or $0.29 per basic and diluted share, for the three months ended March 31, 2021, an increase of $3.7 million, or 182.7% from $2.1 million, or $0.10 per basic and diluted share, for the same three months of 2020. The increase in earnings comparing the first quarters of 2021 and 2020 was primarily due to a $2.2 million, or 24.2%, increase in net interest income, a $1.1 million, or 63.8%, increase in non-interest income, and a $1.0 million, or 83.8%, reduction in the provision for loan and lease losses. These positive factors were partially offset by an $0.5 million, or 117.0%, increase in income tax expense, which was due to the higher level of pre-tax net income. Annualized return on average assets and annualized return on average equity for the three months ended March 31, 2021 was 1.61% and 15.27%, respectively, compared to 0.69% and 6.06%, respectively, for the three months ended March 31, 2020. Dividends declared and paid were $0.060 per share for the first quarter of 2021, a 9.1% increase compared to $0.055 per share for the same period of 2020. Year-to-date 2021 dividends equated to an annualized dividend yield of approximately 3.2% based on the closing stock price of $7.54 per share at March 31, 2021. First quarter 2021 performance First quarter net income increased $3.7 million, or 182.7%, to $5.8 million, or $0.29 per share in 2021 compared to $2.1 million, or $0.10 per share in 2020;Yield on earnings assets (FTE) decreased 21 basis points to 3.85% in 2021 from 4.06% in 2020;Cost of funds decreased 55 basis points to 0.34% in 2021 from 0.89% in 2020;Net interest margin (FTE) increased 24 basis points to 3.59% in 2021, compared to 3.35% in 2020;Provision for loan and lease losses decreased $1.0 million, or 83.8%;Non-interest income increased $1.1 million, or 63.8%;Non-interest expense decreased $34 thousand, or 0.47%; andEfficiency ratio improved to 51.87% in 2021 compared to 66.46% in 2020. Summary financial position at March 31, 2021 as compared to December 31, 2020: Total assets grew $34.4 million, or 2.3%, to $1.500 billion at March 31, 2021 from $1.466 billion at December 31, 2020;Loans, net of deferred loan fees and cost and unearned income, increased $30.8 million, or 3.4%, to $931.9 million at March 31, 2021 from $901.1 million at December 31, 2020;Included in net loans were PPP loans outstanding, net of loan origination fees and costs, of $103.5 million at March 31, 2021;Total deposits increased $35.4 million, or 2.7% to $1.323 billion at March 31, 2021 from $1.287 billion at December 31, 2020;Non-performing loans as a percentage of total loans improved to 0.52% at March 31, 2021 from 0.62% at December 31, 2020; andThe Bank's total risk-based capital and leverage ratios improved to 16.26% and 9.88%, respectively, at March 31, 2021, compared to 15.79% and 9.57%, respectively, at December 31, 2020. "We are pleased with our strong first quarter 2021 results," stated Gerard A. Champi, President and CEO. "PPP was once again a major focus for us this quarter with the government's extension of this program on January 11, 2021. During the first quarter of 2021, the FNCB team assisted 540 business customers secure $59.0 million in additional funding under round two of the program. Additionally, loan origination fees recognized on the forgiveness of first round PPP loans contributed to our year-over-year earnings performance and margin improvement. We anticipate that the majority of outstanding PPP loans will be forgiven by the end of 2021 and earnings will continue to be favorably impacted by the additional fee recognition. We continued to see strong deposit growth, which was driven by the second round of PPP funding and additional fiscal stimulus payments, and were able to further reduce our funding costs. Most importantly, during the first quarter, we worked with health care providers to be able to secure and provide vaccines for our employees, as the health and safety of our FNCB family remains foremost," concluded Champi. Impact of the COVID-19 pandemic While the effects from the COVID-19 pandemic continue to impact national, regional and local economies, the Unites States economy has begun to show signs of recovering and with the availability and distribution of vaccines, governments have started to lift restrictions on businesses. All FNCB community offices are open, and while fully operational, are still operating under the pandemic preparedness plan. We continue to follow CDC and Commonwealth of Pennsylvania guidelines and take additional precautions to ensure the safety of our customers and our employees. Additionally, FNCB has worked with local health care providers to secure and offer vaccinations to all eligible employees. While positive developments have occurred, we are keenly aware that FNCB’s business and consumer customers may continue to experience varying degrees of financial distress, as uncertainty related to the pandemic still exists. Should the number of cases rise, or new COVID-19 variant infections increase, additional economic restrictions could be mandated again. Commercial activity has improved, but has not returned to pre-pandemic levels, which may result in asset quality deterioration. Our commercial customer base includes businesses in industries such as hotel/lodging, restaurants, hospitality, and retail and commercial real estate, all of which have been significantly impacted by the COVID-19 pandemic. We continue to closely monitor customers within these industries as the economic recovery unfolds. On December 27, 2020, another COVID-19 relief bill was signed into law that extended and modified several provisions of the PPP. This included an additional allocation of $284 billion in funding. The SBA reactivated the PPP on January 11, 2021, and on January 19, 2021, FNCB began originating additional loans through the PPP. The SBA will continue to accept new applications for this new round of funding through May 31, 2021. During the three months ended March 31, 2021, FNCB originated and received SBA approval and funding for 540 PPP loans totaling $59.0 million and received $2.8 million in related deferred loan origination fees associated with this funding. During the three months ended March 31, 2021, FNCB received forgiveness for PPP loans totaling $30.2 million originated in 2020 under the first round of funding, with $1.3 million in PPP loan origination fees, net of loan origination costs, recognized into interest income upon forgiveness. PPP loans, net of deferred loan origination fees and costs, outstanding at March 31, 2021 were $103.5 million. FNCB expects to apply and receive forgiveness for the majority of these loans by the end of 2021. Management expects the COVID-19 pandemic, as well as certain provisions of legislative and regulatory relief efforts, to continue to impact FNCB's operations. The full impact is unknown, continues to evolve and will be contingent upon the speed and extent of recovery. At this time, management cannot determine or estimate the full magnitude of the impact and cannot provide any assurances as to how the crisis may ultimately affect FNCB's results of operations or financial position. Management believes that FNCB's balance sheet and capital position are strong, and we will continue to address any issues related to the pandemic in a safe and sound manner as they arise. Summary Results Net interest income on a tax-equivalent basis increased $2.3 million, or 24.9%, to $11.6 million for the three months ended March 31, 2021 from $9.3 million for the comparable period of 2020. The improvement in tax-equivalent net interest income comparing the first quarters of 2021 and 2020 reflected a $1.2 million, or 10.6%, increase in tax-equivalent interest income, coupled with a $1.1 million, or 57.0%, reduction in interest expense. The increase in tax-equivalent interest income was largely due to higher volumes of earning assets and the recognition of PPP origination fees, partially offset by a decrease in the tax-equivalent yield on earning assets. Average earning assets increased $183.8 million, or 16.5%, to $1.296 billion for the first quarter of 2021 from $1.112 billion for the same quarter of 2020 due to higher loan and investment volumes. Comparing the first quarters of 2021 and 2020, average loans increased $86.9 million, or 10.4%, to $920.4 million from $833.5 million, respectively, and average investment securities increased $90.6 million, or 33.4%, to $362.0 million from $271.4 million, respectively. The increase in loan volumes primarily reflected the origination of PPP loans, net of forgiveness received, while the higher level of investment securities was due to the deployment of a portion of excess liquidity into the investment portfolio. The tax-equivalent yield on earning assets decreased 21 basis points to 3.85% for the first quarter of 2021 from 4.06% for the same quarter of 2020, which partially offset the positive impact on interest income from higher volumes of earning assets. The 57.0% decrease in interest expense was primarily due to a 55-basis point reduction in the cost of funds to 0.34% for the three months ended March 31, 2021 from 0.89% for the same three months of 2020. Specifically, the average rate paid for interest-bearing deposits decreased 49 basis points to 0.32% for the first quarter of 2021 from 0.81% for the same period of 2020. The average rates paid for interest-bearing demand and time deposits, which reflected the reduction in market interest rates, decreased 48 basis points and 58 basis points, respectively, comparing the three months ended March 31, 2021 and 2020. FNCB experienced strong deposit growth due to additional fiscal stimulus in the first quarter of 2021. Additionally, changing customer deposit preferences due to the reduction in economic activity and uncertainty related to the COVID-19 pandemic also contributed to the deposit growth, as well as factoring into deposit migration from time deposits into non-maturity deposits. Specifically, average interest-bearing deposits increased $177.9 million, or 21.7%, to $999.1 million from $821.2 million comparing the first quarters of 2021 and 2020, respectively. Average interest-bearing demand deposits increased $167.0 million, or 31.6%, to $695.8 million for the first quarter of 2021 compared to $528.8 million for the same quarter of 2020, while average savings deposits increased $20.4 million, or 21.7%, to $114.3 million from $94.0 million comparing the first quarters of 2021 and 2020, respectively. Conversely, average time deposits decreased $9.5 million to $188.9 million for the three months ended March 31, 2021 from $198.4 million for the same three months of 2020. FNCB used the excess liquidity from deposit growth to reduce its reliance on and repay higher-costing borrowed funds. As a result, average borrowed funds decreased $51.5 million, or 83.3%, to $10.3 million from $61.8 million comparing the first quarters of 2021 and 2020. FNCB’s tax-equivalent net interest margin improved 24 basis points to 3.59% for the first quarter of 2021 from 3.35% for the same quarter of 2020. The margin improvement was primarily impacted by activity related to PPP loans, coupled with reduction in funding costs. On a linked quarter basis, FNCB's tax-equivalent net interest margin decreased 11 basis points from 3.70% for the fourth quarter of 2020. Non-interest income increased $1.1 million, or 63.8%, to $2.8 million for the three months ended March 31, 2021 from $1.7 million for the same three months of 2020. The increase resulted primarily from a gain of $422 thousand from a bank-owned life insurance death benefit claim that was recognized in the first quarter of 2021, coupled with increases in net gains on equity securities and net gains on the sale of mortgage loans held for sale. Net gains on equity securities totaled $364 thousand for the first quarter of 2021, an increase of $350 thousand compared to $14 thousand for the same quarter of 2020. FNCB recorded net gains on the sale of mortgage loans of $224 thousand for the three months ended March 31, 2021, an increase of $128 thousand, or 133.3%, compared to $96 thousand for the same three-month period of 2020. Additionally, FNCB experienced increases in net gains on available-for-sale debt securities, loan related fees and deposit service charges. Net gains on the sales of available-for-sale securities totaled $213 thousand for the first quarter of 2021, an increase of $64 thousand, or 43.0%, compared to $149 thousand for the same quarter of 2020. Additionally, loan-related fees increased $77 thousand, or 137.5% to $133 thousand for the three months ended March 31, 2021, compared to $56 thousand for the same period of 2020, while an increase in debit card usage contributed to the $49 thousand, or 5.9%, increase in deposit service charges to $874 thousand from $825 thousand comparing the three months ended March 31, 2021 and 2020. Non-interest expense was relatively constant at $7.2 million, decreasing by $34 thousand, or 0.5%, comparing the three months ended March 31, 2021 and 2020. The decrease primarily reflected reductions in salaries and benefits, advertising expenses and other operating expenses. Salaries and benefits decreased $193 thousand, or 4.9% to $3.7 million for the three months ended March 31, 2021, from $3.9 million for the same period in 2020, due primarily to the deferral of payroll-related loan origination costs associated with PPP loans. Advertising expenses decreased $90 thousand, or 43.5%, to $117 thousand for the first quarter of 2021 from $207 thousand for the same quarter of 2020, as FNCB reduced its advertising during the pandemic. Other operating expenses decreased $97 thousand, or 11.1%, to $775 thousand from $872 thousand comparing the three months ended March 31, 2021 and 2020. This decrease reflected reductions in OREO-related expenses, coupled with reductions in office expense, auto expense and travel and entertainment expense due to travel restrictions and a large percentage of staff working remotely. These expense reductions were offset by increases in regulatory assessments of $129 thousand, or 218.6%, data processing of $94 thousand, or 13.0%, professional fees of $71 thousand, or 37.8%, and occupancy expense of $55 thousand, or 9.9%, comparing the three months ended March 31, 2021 and 2020. Regulatory assessments for the first quarter of 2020 were reduced by the remainder of the FDIC's small bank assessment credit. There were no such assessment credits in 2021. The increase in data processing expense reflected added costs associated with employees working remotely, coupled with additions to FNCB's digital banking services, while the increase in professional fees was primarily due to additional costs associated with FNCB's annual audit. The increase in FNCB's occupancy expense was largely due to higher snow removal costs. Asset Quality Despite the economic uncertainty related to the pandemic, FNCB's asset quality improved during the first quarter of 2021 as total non-performing loans decreased $739 thousand, or 13.2%, to $4.8 million, or 0.52% of total loans, at March 31, 2021 from $5.6 million, or 0.62% of total loans, at December 31, 2020. The improvement primarily reflected the payoff of one commercial relationship and the return of two other commercial loan relationships to accrual status. Year-over-year, non-performing loans decreased $3.8 million, or 43.5%, from $8.6 million, or 1.03% of total loans, at March 31, 2020. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 0.70% at March 31, 2021 compared to 0.99% at December 31, 2020 and 1.41% at March 31, 2020. Annualized net loans charged off, as a percentage of average loans, was 0.03% for the three months ended March 31, 2021 compared to 0.09% for the same three months of 2020. FNCB recorded a provision for loan and lease losses of $186 thousand for the first quarter of 2021 compared to $1.2 million for the first quarter of 2020. The larger provision recorded for the first quarter of 2020 was directly related to the economic disruption and uncertainty caused by the onset of COVID-19 pandemic. The allowance for loan and lease losses was $12.1 million, or 1.30% of total loans at March 31, 2021, compared to $11.9 million, or 1.33% of total loans at December 31, 2020 and $9.9 million, or 1.19%, at March 31, 2020. Excluding PPP loans, which are 100.0% guaranteed by the federal government, this ratio was 1.46% at March 31, 2021. Financial Condition Total assets increased $34.4 million, or 2.3%, to $1.500 billion at March 31, 2021 from $1.466 billion at December 31, 2020. The change in total assets primarily reflected increases in net loans and available-for-sale debt securities, which were partially offset by a decrease in cash and cash equivalents. Net loans increased $30.7 million, or 3.5%, to $919.9 million at March 31, 2021 from $889.2 million at December 31, 2020, primarily due to the origination and funding of a second round of PPP loans, partially offset by first-round PPP loan forgiveness. Available-for-sale debt securities increased $57.4 million, or 16.4%, to $407.4 million at March 31, 2021 from $350.0 million at December 31, 2020, which primarily reflected the deployment of a portion of FNCB's excess liquidity into the investment portfolio. Conversely, the deployment caused cash and cash equivalents to decrease $57.3 million, or 36.7%, to $98.5 million at March 31, 2021 from $155.8 million at December 31, 2020. Total deposits increased $35.4 million, or 2.7%, to $1.323 billion at March 31, 2021 from $1.287 billion at December 31, 2020. Specifically, non-interest bearing deposits increased $48.0 million, or 17.7%, due primarily to the second round of PPP loan funding and additional fiscal stimulus payments. Partially offsetting the increase in non-interest bearing deposits was a $12.7 million, or 1.2%, reduction in interest-bearing deposits reflecting the continued runoff and migration of certificates of deposit. Borrowed funds remained constant at $10.3 million at March 31, 2021 and December 31, 2020, comprised entirely of $10.3 million in FNCB's junior subordinated debentures. Total shareholders’ equity decreased $930 thousand, or 0.6%, to $154.9 million at March 31, 2021 from $155.9 million at December 31, 2020. Contributing to the decrease in capital was a $5.6 million decrease in accumulated other comprehensive income related primarily to the depreciation in the fair value of FNCB's available-for-sale debt securities, net of deferred taxes, and dividends declared and paid of $1.2 million for the three months ended March 31, 2021. These reductions to capital were partially offset by net income for the three months ended March 31, 2021 of $5.8 million. FNCB Bank's regulatory capital improved as the total risk-based capital ratio and Tier 1 leverage ratios increased to 16.26% and 9.88% at March 31, 2021 from 15.79% and 9.57% at December 31, 2020, 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 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 110 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 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., CPAExecutive Vice President and Chief Financial Officer FNCB Bank(570) 348-6419james.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 our reports to shareholders, and in our 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,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “future” 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 effect of the novel Coronavirus Disease 2019 ("COVID-19") pandemic on FNCB and its customers, the Commonwealth of Pennsylvania and the United States, related to the economy and overall financial stability; government and regulatory responses to the COVID-19 pandemic; government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Tax Cuts and Jobs Act; political instability; the ability of FNCB to manage credit risk; weakness in the economic environment, in general, and within FNCB’s market area; the deterioration of one or a few of the commercial real estate loans with relatively large balances contained in FNCB’s loan portfolio; greater risk of loan defaults and losses from concentration of loans held by FNCB, including those to insiders and related parties; if FNCB’s portfolio of loans to small and mid-sized community-based businesses increases its credit risk; if FNCB’s ALLL is not sufficient to absorb actual losses or if increases to the ALLL were required; FNCB is subject to interest-rate risk and any changes in interest rates could negatively impact net interest income or the fair value of FNCB's financial assets; if management concludes that the decline in value of any of FNCB’s investment securities is other-than-temporary could result in FNCB recording an impairment loss; if FNCB’s risk management framework is ineffective in mitigating risks or losses to FNCB; if FNCB is unable to successfully compete with others for business; a loss of depositor confidence resulting from changes in either FNCB’s financial condition or in the general banking industry; if FNCB is unable to retain or grow its core deposit base; inability or insufficient dividends from its subsidiary, FNCB Bank; if FNCB loses access to wholesale funding sources; interruptions or security breaches of FNCB’s information systems; any systems failures or interruptions in information technology and telecommunications systems of third parties on which FNCB depends; security breaches; if FNCB’s information technology is unable to keep pace with growth or industry developments or if technological developments result in higher costs or less advantageous pricing; the loss of management and other key personnel; dependence on the use of data and modeling in both its management’s decision-making generally and in meeting regulatory expectations in particular; additional risk arising from new lines of business, products, product enhancements or services offered by FNCB; inaccuracy of appraisals and other valuation techniques FNCB uses in evaluating and monitoring loans secured by real property and other real estate owned; unsoundness of other financial institutions; damage to FNCB’s reputation; defending litigation and other actions; dependence on the accuracy and completeness of information about customers and counterparties; risks arising from future expansion or acquisition activity; environmental risks and associated costs on its foreclosed real estate assets; any remediation ordered, or adverse actions taken, by federal and state regulators, including requiring FNCB to act as a source of financial and managerial strength for the FNCB Bank in times of stress; costs arising from extensive government regulation, supervision and possible regulatory enforcement actions; new or changed legislation or regulation and regulatory initiatives; noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations; failure to comply with numerous "fair and responsible banking" laws; any violation of laws regarding privacy, information security and protection of personal information or another incident involving personal, confidential or proprietary information of individuals; any rulemaking changes implemented by the Consumer Financial Protection Bureau; inability to attract and retain its highest performing employees due to potential limitations on incentive compensation contained in proposed federal agency rulemaking; any future increases in FNCB Bank’s FDIC deposit insurance premiums and assessments; 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 press release. Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the SEC, including its Form 10-K for the year ended December 31, 2020. FNCB Bancorp, Inc.Selected Financial Data Mar 31, Dec 31, Sept 30, Jun 30, Mar 31, 2021 2020 2020 2020 2020 Per share data: Net income (fully diluted) $0.29 $0.26 $0.20 $0.20 $0.10 Cash dividends declared $0.060 $0.055 $0.055 $0.055 $0.055 Book value $7.65 $7.70 $7.41 $7.19 $6.84 Tangible book value $7.65 $7.70 $7.41 $7.19 $6.84 Market value: High $8.94 $7.95 $6.93 $7.19 $8.54 Low $5.80 $5.16 $5.08 $5.15 $5.10 Close $7.54 $6.40 $5.32 $5.75 $6.91 Common shares outstanding 20,240,668 20,245,649 20,243,589 20,208,607 20,174,250 Selected ratios: Annualized return on average assets 1.61% 1.41% 1.15% 1.21% 0.69%Annualized return on average shareholders' equity 15.27% 13.49% 11.05% 11.62% 6.06%Efficiency ratio 51.87% 54.89% 66.66% 56.53% 66.46%Tier I leverage ratio (FNCB Bank) 9.88% 9.57% 10.17% 10.60% 11.09%Total risk-based capital to risk-adjusted assets (FNCB Bank) 16.26% 15.79% 16.09% 15.68% 15.44%Average shareholders' equity to average total assets 10.53% 10.42% 10.40% 10.38% 11.37%Yield on earning assets (FTE) 3.85% 4.05% 3.65% 3.70% 4.06%Cost of funds 0.34% 0.44% 0.59% 0.69% 0.89%Net interest spread (FTE) 3.51% 3.61% 3.06% 3.01% 3.17%Net interest margin (FTE) 3.59% 3.70% 3.19% 3.18% 3.35%Total delinquent loans/total loans 0.70% 0.99% 0.81% 0.89% 1.41%Allowance for loan and lease losses/total loans 1.30% 1.33% 1.28% 1.16% 1.19%Non-performing loans/total loans 0.52% 0.62% 0.64% 0.71% 1.03%Annualized net charge-offs (recoveries)/average loans 0.03% 0.09% (0.49%) (0.12%) 0.09% FNCB Bancorp, Inc.Year-to-Date Consolidated Statements of Income Three Months Ended March 31, (in thousands, except share data) 2021 2020 Interest income Interest and fees on loans $9,786 $9,139 Interest and dividends on securities: Taxable 1,906 1,852 Tax-exempt 486 57 Dividends 62 75 Total interest and dividends on securities 2,454 1,984 Interest on interest-bearing deposits in other banks 3 21 Total interest income 12,243 11,144 Interest expense Interest on deposits 798 1,660 Interest on borrowed funds Federal Home Loan Bank of Pittsburgh advances - 219 Junior subordinated debentures 48 88 Total interest on borrowed funds 48 307 Total interest expense 846 1,967 Net interest income before provision for loan and lease losses 11,397 9,177 Provision for loan and lease losses 186 1,151 Net interest income after provision for loan and lease losses 11,211 8,026 Non-interest income Deposit service charges 874 825 Net gain on the sale of available-for-sale securities 213 149 Net gain on equity securities 364 14 Net gain on the sale of mortgage loans held for sale 224 96 Loan-related fees 133 56 Income from bank-owned life insurance 121 129 Bank-owned life insurance settlement 422 - Merchant services revenue 138 135 Other 285 290 Total non-interest income 2,774 1,694 Non-interest expense Salaries and employee benefits 3,736 3,929 Occupancy expense 609 554 Equipment expense 353 371 Advertising expense 117 207 Data processing expense 819 725 Regulatory assessments 188 59 Bank shares tax 315 300 Professional fees 259 188 Other operating expenses 775 872 Total non-interest expense 7,171 7,205 Income before income taxes 6,814 2,515 Income tax expense 981 452 Net income $5,833 $2,063 Income per share Basic $0.29 $0.10 Diluted $0.29 $0.10 Cash dividends declared per common share $0.060 $0.055 Weighted average number of shares outstanding: Basic 20,242,262 20,172,498 Diluted 20,253,606 20,176,565 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) 2021 2020 2020 2020 2020 Interest income Interest and fees on loans $9,786 $10,338 $9,078 $9,060 $9,139 Interest and dividends on securities Taxable 1,906 1,832 1,698 1,692 1,852 Tax-exempt 486 465 463 388 57 Dividends 62 64 62 47 75 Total interest and dividends on securities 2,454 2,361 2,223 2,127 1,984 Interest on interest-bearing deposits in other banks 3 3 1 3 21 Total interest income 12,243 12,702 11,302 11,190 11,144 Interest expense Interest on deposits 798 1,077 1,291 1,376 1,660 Interest on borrowed funds Federal Reserve Bank Discount Window advances - - 18 14 - Federal Home Loan Bank of Pittsburgh advances - - 95 160 219 Junior subordinated debentures 48 50 52 60 88 Total interest on borrowed funds 48 50 165 234 307 Total interest expense 846 1,127 1,456 1,610 1,967 Net interest income before provision (credit) for loan and lease losses 11,397 11,575 9,846 9,580 9,177 Provision (credit) for loan and lease losses 186 (115) 74 831 1,151 Net interest income after provision (credit) for loan and lease losses 11,211 11,690 9,772 8,749 8,026 Non-interest income Deposit service charges 874 875 844 708 825 Net gain on the sale of available-for-sale securities 213 24 433 922 149 Net gain on equity securities 364 307 846 4 14 Net gain on the sale of mortgage loans held for sale 224 188 186 183 96 Loan-related fees 133 148 119 25 56 Income from bank-owned life insurance 121 116 118 119 129 Bank-owned life insurance settlement 422 - - - - Loan referral fees/Interest rate swap revenue - 52 76 214 48 Merchant services revenue 138 164 154 112 135 Other 285 211 194 214 242 Total non-interest income 2,774 2,085 2,970 2,501 1,694 Non-interest expense Salaries and employee benefits 3,736 3,984 3,835 3,498 3,929 Occupancy expense 609 532 500 466 554 Equipment expense 353 365 381 360 371 Advertising expense 117 190 175 113 207 Data processing expense 819 745 754 709 725 Regulatory assessments 188 131 122 75 59 Bank shares tax 315 (92) 263 315 300 Professional fees 259 339 279 193 188 Other operating expenses 775 1,249 1,534 695 872 Total non-interest expense 7,171 7,443 7,843 6,424 7,205 Income before income taxes 6,814 6,332 4,899 4,826 2,515 Income tax expense 981 1,176 792 805 452 Net income $5,833 $5,156 $4,107 $4,021 $2,063 Income per share Basic $0.29 $0.26 $0.20 $0.20 $0.10 Diluted $0.29 $0.26 $0.20 $0.20 $0.10 Cash dividends declared per common share $0.060 $0.055 $0.055 $0.055 $0.055 Weighted average number of shares outstanding: Basic 20,242,262 20,241,730 20,235,384 20,191,527 20,172,498 Diluted 20,253,606 20,244,652 20,235,384 20,191,527 20,176,565 FNCB Bancorp, Inc.Consolidated Balance Sheets Mar 31, Dec 31, Sept 30, Jun 30, Mar 31, (in thousands) 2021 2020 2020 2020 2020 Assets Cash and cash equivalents: Cash and due from banks $22,382 $24,822 $26,121 $20,089 $15,243 Interest-bearing deposits in other banks 76,172 130,989 78,895 81,390 30,304 Total cash and cash equivalents 98,554 155,811 105,016 101,479 45,547 Available-for-sale debt securities, at fair value 407,396 350,035 321,399 305,611 302,638 Equity securities, at fair value 4,267 3,026 2,719 938 934 Restricted stock, at cost 1,149 1,745 1,791 3,309 4,224 Loans held for sale 267 2,107 662 765 470 Loans, net of deferred loan fees and costs and unearned income 931,943 901,102 960,229 948,428 834,935 Allowance for loan and lease losses (12,076) (11,950) (12,269) (11,024) (9,907)Net loans 919,867 889,152 947,960 937,404 825,028 Bank premises and equipment, net 17,407 17,579 17,413 17,467 17,447 Accrued interest receivable 4,567 4,286 4,693 5,201 3,387 Bank-owned life insurance 33,074 31,712 31,596 31,478 31,359 Other assets 13,488 10,226 9,942 14,519 17,198 Total assets $1,500,036 $1,465,679 $1,443,191 $1,418,171 $1,248,232 Liabilities Deposits: Demand (non-interest-bearing) $319,532 $271,499 $274,110 $266,846 $181,223 Interest-bearing 1,003,296 1,015,949 998,128 902,781 820,339 Total deposits 1,322,828 1,287,448 1,272,238 1,169,627 1,001,562 Borrowed funds: Federal Reserve Bank Discount Window advances - - - 36,242 10,000 Federal Home Loan Bank of Pittsburgh advances - - - 42,809 77,934 Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310 Total borrowed funds 10,310 10,310 10,310 89,361 98,244 Accrued interest payable 99 108 139 248 261 Other liabilities 11,869 11,953 10,458 13,578 10,233 Total liabilities 1,345,106 1,309,819 1,293,145 1,272,814 1,110,300 Shareholders' equity Preferred stock - - - - - Common stock 25,300 25,307 25,304 25,260 25,217 Additional paid-in capital 81,640 81,587 81,500 81,261 81,209 Retained earnings 39,691 35,080 31,044 28,057 25,155 Accumulated other comprehensive income 8,299 13,886 12,198 10,779 6,351 Total shareholders' equity 154,930 155,860 150,046 145,357 137,932 Total liabilities and shareholders’ equity $1,500,036 $1,465,679 $1,443,191 $1,418,171 $1,248,232 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) 2021 2020 2020 2020 2020 Interest income Loans: Loans - taxable $9,401 $9,938 $8,688 $8,661 $8,693 Loans - tax-free 487 506 494 505 565 Total loans 9,888 10,444 9,182 9,166 9,258 Securities: Securities, taxable 1,968 1,896 1,760 1,739 1,927 Securities, tax-free 615 589 586 491 72 Total interest and dividends on securities 2,583 2,485 2,346 2,230 1,999 Interest-bearing deposits in other banks 3 3 1 3 21 Total interest income 12,474 12,932 11,529 11,399 11,278 Interest expense Deposits 798 1,077 1,291 1,376 1,660 Borrowed funds 48 50 165 234 307 Total interest expense 846 1,127 1,456 1,610 1,967 Net interest income $11,628 $11,805 $10,073 $9,789 $9,311 Average balances Earning assets: Loans: Loans - taxable $873,544 $889,964 $908,095 $875,119 $780,855 Loans - tax-free 46,897 46,444 44,826 46,836 52,615 Total loans 920,441 936,408 952,921 921,955 833,470 Securities: Securities, taxable 286,128 255,111 232,081 247,939 263,697 Securities, tax-free 75,876 71,154 69,973 56,220 7,698 Total securities 362,004 326,265 302,054 304,159 271,395 Interest-bearing deposits in other banks (a) 13,490 14,808 8,286 6,439 7,230 Total interest-earning assets (a) 1,295,935 1,277,481 1,263,261 1,232,553 1,112,095 Non-earning assets (a) 175,301 181,708 159,037 108,608 91,553 Total assets $1,471,236 $1,459,189 $1,422,298 $1,341,161 $1,203,648 Interest-bearing liabilities: Deposits $999,085 $1,016,916 $943,754 $850,525 $821,216 Borrowed funds 10,310 10,310 51,629 81,813 61,843 Total interest-bearing liabilities 1,009,395 1,027,226 995,383 932,338 883,059 Demand deposits 294,525 268,531 267,636 258,609 172,132 Other liabilities 12,413 11,377 11,384 11,065 11,636 Shareholders' equity 154,903 152,055 147,895 139,149 136,821 Total liabilities and shareholders' equity $1,471,236 $1,459,189 $1,422,298 $1,341,161 $1,203,648 Yield/Cost Earning assets: Loans: Interest and fees on loans - taxable 4.30% 4.47% 3.83% 3.96% 4.45%Interest and fees on loans - tax-free 4.15% 4.36% 4.41% 4.31% 4.30%Total loans 4.30% 4.46% 3.85% 3.98% 4.44%Securities: Securities, taxable 2.75% 2.97% 3.03% 2.81% 2.92%Securities, tax-free 3.24% 3.31% 3.35% 3.49% 3.74%Total securities 2.85% 3.05% 3.11% 2.93% 2.95%Interest-bearing deposits in other banks (a) 0.09% 0.08% 0.05% 0.19% 1.16%Total earning assets (a) 3.85% 4.05% 3.65% 3.70% 4.06%Interest-bearing liabilities: Interest on deposits 0.32% 0.42% 0.55% 0.65% 0.81%Interest on borrowed funds 1.86% 1.94% 1.28% 1.14% 1.99%Total interest-bearing liabilities 0.34% 0.44% 0.59% 0.69% 0.89%Net interest spread (a) 3.51% 3.61% 3.06% 3.01% 3.17%Net interest margin (a) 3.59% 3.70% 3.19% 3.18% 3.35% (a) Reflects revisions to average balances for the three months ended September 30, 2020, June 30, 2020 and March 31, 2020 to reclassify certain average deposits in other banks from interest-bearing deposits in other banks to non-earning assets in the amount of $62,315, $21,419 and $1,166, respectively. FNCB Bancorp, Inc.Asset Quality Data Mar 31, Dec 31, Sept 30, Jun 30, Mar 31, (in thousands) 2021 2020 2020 2020 2020 At period end Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $4,842 $5,581 $6,176 $6,740 $8,576 Loans past due 90 days or more and still accruing - - - - - Total non-performing loans 4,842 5,581 6,176 6,740 8,576 Other real estate owned (OREO) 58 58 58 85 85 Other non-performing assets 1,900 1,900 1,900 1,900 1,900 Total non-performing assets $6,800 $7,539 $8,134 $8,725 $10,561 Accruing TDRs $6,962 $6,975 $7,216 $8,592 $7,729 For the three months ended Allowance for loan and lease losses Beginning balance $11,950 $12,269 $11,024 $9,907 $8,950 Loans charged-off 361 338 582 316 329 Recoveries of charged-off loans 301 134 1,753 602 135 Net charge-offs (recoveries) 60 204 (1,171) (286) 194 Provision (credit) for loan and lease losses 186 (115) 74 831 1,151 Ending balance $12,076 $11,950 $12,269 $11,024 $9,907 FNCB Bancorp, Inc.Non-GAAP Reconciliations Mar 31, Dec 31, Sept 30, Jun 30, Mar 31, (dollars in thousands) 2021 2020 2020 2020 2020 Annualized net interest margin: Net interest margin (1 divided by 3) 3.59% 3.70% 3.19% 3.18% 3.35%Net interest margin, excluding PPP loans (non-GAAP) (2 divided by 4) 3.37% 3.49% 3.40% 3.34% 3.35% Net interest income (FTE) (1) $11,628 $11,805 $10,073 $9,789 $9,311 PPP loan interest and fee income 1,499 1,485 298 223 - Net interest income (FTE), excluding PPP loans (non-GAAP) (2) $10,129 $10,320 $9,775 $9,566 $9,311 Average earning assets (3)(a) $1,295,935 $1,277,481 $1,263,261 $1,232,553 $1,112,095 Average PPP loans 94,801 95,837 114,395 86,241 - Average earning assets, excluding PPP loans (non-GAAP) (4) $1,201,134 $1,181,644 $1,148,866 $1,146,312 $1,112,095 Allowance for loan and lease losses/total period end loans Allowance for loans and lease losses/total period end loans (5 divided by 6) 1.30% 1.33% 1.28% 1.16% 1.19%Allowance for loans and lease losses/total period end loans, excluding PPP loans (5 divided by 7) 1.46% 1.45% 1.45% 1.32% 1.19% Allowance for loans and lease losses (5) $12,076 $11,950 $12,269 $11,024 $9,907 Total period end loans (6) $931,943 $901,102 $960,229 $948,428 $834,935 PPP loans outstanding at period end 103,466 76,004 114,784 113,193 - Total period end loans, excluding PPP loans (7) $828,477 $825,098 $845,445 $835,235 $834,935 (a) Reflects revisions to average balances for the three months ended September 30, 2020, June 30, 2020 and March 31, 2020 to reclassify certain average deposits in other banks from interest-bearing deposits in other banks to non-earning assets in the amount of $62,315, $21,419, and $1,166, respectively.

  • FNCB Bancorp, Inc. Declares Second Quarter 2021 Dividend
    GlobeNewswire

    FNCB Bancorp, Inc. Declares Second Quarter 2021 Dividend

    DUNMORE, Pa., April 28, 2021 (GLOBE NEWSWIRE) -- On April 28, 2021, the Board of Directors of FNCB Bancorp, Inc. (NASDAQ:FNCB) declared a dividend of $0.06 per share for the second quarter of 2021, an increase of $0.005, or 9.1%, from $0.055 per share for the second quarter of 2020. The second quarter 2021 dividend is payable on June 15, 2021 to shareholders of record as of June 1, 2021. Year-to-date dividends declared in 2021 total $0.12 per share, compared to $0.11 per share in 2020. About FNCB Bancorp, Inc.: FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 110 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 remains dedicated to making its customers’ banking experience simply better. For more information about FNCB, visit www.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 our reports to shareholders, and in our 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,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “future” 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 effect of the coronavirus ("COVID-19") pandemic on FNCB and its customers, the Commonwealth of Pennsylvania and the United States, related to the economy and overall financial stability; government and regulatory responses to the COVID-19 pandemic; government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Tax Cuts and Jobs Act; political instability; the ability of FNCB to manage credit risk; weakness in the economic environment, in general, and within FNCB’s market area; the deterioration of one or a few of the commercial real estate loans with relatively large balances contained in FNCB’s loan portfolio; greater risk of loan defaults and losses from concentration of loans held by FNCB, including those to insiders and related parties; if FNCB’s portfolio of loans to small and mid-sized community-based businesses increases its credit risk; if FNCB’s ALLL is not sufficient to absorb actual losses or if increases to the ALLL were required; FNCB is subject to interest-rate risk and any changes in interest rates could negatively impact net interest income or the fair value of FNCB's financial assets; if management concludes that the decline in value of any of FNCB’s investment securities is other-than-temporary could result in FNCB recording an impairment loss; if FNCB’s risk management framework is ineffective in mitigating risks or losses to FNCB; if FNCB is unable to successfully compete with others for business; a loss of depositor confidence resulting from changes in either FNCB’s financial condition or in the general banking industry; if FNCB is unable to retain or grow its core deposit base; inability or insufficient dividends from its subsidiary, FNCB Bank; if FNCB loses access to wholesale funding sources; interruptions or security breaches of FNCB’s information systems; any systems failures or interruptions in information technology and telecommunications systems of third parties on which FNCB depends; security breaches; if FNCB’s information technology is unable to keep pace with growth or industry developments or if technological developments result in higher costs or less advantageous pricing; the loss of management and other key personnel; dependence on the use of data and modeling in both its management’s decision-making generally and in meeting regulatory expectations in particular; additional risk arising from new lines of business, products, product enhancements or services offered by FNCB; inaccuracy of appraisals and other valuation techniques FNCB uses in evaluating and monitoring loans secured by real property and other real estate owned; unsoundness of other financial institutions; damage to FNCB’s reputation; defending litigation and other actions; dependence on the accuracy and completeness of information about customers and counterparties; risks arising from future expansion or acquisition activity; environmental risks and associated costs on its foreclosed real estate assets; any remediation ordered, or adverse actions taken, by federal and state regulators, including requiring FNCB to act as a source of financial and managerial strength for the FNCB Bank in times of stress; costs arising from extensive government regulation, supervision and possible regulatory enforcement actions; new or changed legislation or regulation and regulatory initiatives; noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations; failure to comply with numerous "fair and responsible banking" laws; any violation of laws regarding privacy, information security and protection of personal information or another incident involving personal, confidential or proprietary information of individuals; any rulemaking changes implemented by the Consumer Financial Protection Bureau; inability to attract and retain its highest performing employees due to potential limitations on incentive compensation contained in proposed federal agency rulemaking; any future increases in FNCB Bank’s FDIC deposit insurance premiums and assessments; 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 press release. Readers should carefully review the risk factors described in the Annual Report and other documents that FNCB periodically files with the SEC, including its Form 10-K for the year ended December 31, 2020. CONTACT: INVESTOR CONTACT: James M. Bone, Jr., CPA Executive Vice President and Chief Financial Officer FNCB Bank (570) 348-6419 james.bone@fncb.com

  • Interested In FNCB Bancorp's (NASDAQ:FNCB) Upcoming US$0.06 Dividend? You Have Four Days Left
    Simply Wall St.

    Interested In FNCB Bancorp's (NASDAQ:FNCB) Upcoming US$0.06 Dividend? You Have Four Days Left

    Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...