DUNMORE, Pa., April 29, 2022 (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 $4.4 million, or $0.22 per basic and diluted share, for the three months ended March 31, 2022, a decrease of $1.4 million, or 25.4%, compared to $5.8 million, or $0.29 per share for the same period of 2021. The reduction in earnings was largely due to increases in non-interest expense and the provision for loan and lease losses, coupled with a decrease in non-interest income. These reductions to earnings were partially mitigated by an increase in net interest income. For the three months ended March 31, 2022, the annualized return on average assets and return on average equity was 1.08% and 11.31%, respectively, compared to 1.61% and 15.27%, respectively, for the same period of 2021. FNCB declared and paid dividends to shareholders of common stock of $0.075 per share for the first quarter of 2022, a 25% increase, compared to $0.060 per share for the same period of 2021.
First quarter 2022 performance:
Summary financial position at March 31, 2022 as compared to December 31, 2021:
“We are very pleased with our first quarter 2022 operating results,” stated Gerard A. Champi, President and CEO. ”We continued to effectively manage funding costs and improve earning asset yields and the net interest margin over the prior quarter. Additionally, we successfully completed several strategic initiatives during the first quarter of 2022 including completing the launch of 1st Equipment Finance, our new commercial equipment financing and leasing product offering, and the purchase of several third-party originated loan pools. Both initiatives allowed us to diversify FNCB’s loan portfolio, reduce risk and enhance net interest income run rates going forward,” concluded Champi.
Summary Results
Net interest income on a tax-equivalent basis increased $1.4 million, or 12.1%, to $13.0 million for the three months ended March 31, 2022 from $11.6 million for the comparable period of 2021. The improvement in tax-equivalent net interest income primarily reflected an increase in tax-equivalent interest income of $1.0 million or 7.8%, to $13.5 million for the first quarter of 2022 from $12.5 million for the same quarter of 2021, coupled with a decrease in interest expense of $0.4 million, or 52.0%, to $0.4 million from $0.8 million comparing the first quarter of 2022 and 2021, respectively. The $1.0 million, or 7.8%, increase in tax-equivalent interest income largely reflected higher volumes of earning assets, as total average earning assets increased $263.0 million, or 20.3%, to $1.559 billion for the three months ended March 31, 2022 from $1.296 billion for the same three months of 2021. Specifically, total securities averaged $541.0 million for the first quarter of 2022, an increase of $179.0 million, or 49.5%, from $362.0 million for the first quarter of 2021, reflecting the redeployment of excess liquidity into the investment portfolio throughout 2021. In addition, average total loans and leases increased $79.9 million, or 8.7%, to $1.000 billion for the first quarter of 2022 from $920.4 million for the same quarter of 2021, which was largely due to strong organic loan demand, FNCB’s new commercial equipment financing and leasing product offering and purchases of third-party originated loan pools. Partially offsetting the positive impact of earning asset growth, was a decrease in the tax-equivalent yield on average earning assets of 40 basis points to 3.45% for the three months ended March 31, 2022, compared to 3.85% for the same three months of 2021. The decline in yield included a reduction in net loan origination fees recognized on forgiven PPP loans of $0.6 million, or 49.8%, comparing the three months ended March 31, 2022 and 2021, as the majority of PPP loans were forgiven in 2021. FNCB continued to successfully manage funding costs as evidenced by a 20-basis point reduction in the cost of funds to 0.14% for the three months ended March 31, 2022 from 0.34% for the same three months of 2021, which was the main factor leading to the $0.4 million, or 52.0%, reduction in interest expense. Specifically, the average rate paid for interest-bearing deposits decreased 20 basis points to 0.12% for the first quarter of 2022 from 0.32% for the same period of 2021, which reflected the reduction in market interest rates and repricing of higher-costing time deposits upon maturity. Additionally, average borrowing costs decreased 117 basis points to 0.69% from 1.86% comparing the three months ended March 31, 2022 and 2021. Interest-bearing liabilities averaged $1.159 billion for the first quarter of 2022, an increase of $149.6 million, or 14.8%, from $1.009 billion for the same quarter of 2021. The increase in interest-bearing liabilities reflected deposit migration from time deposits into non-maturity deposits as well as an increase in utilization of wholesale funding. Specifically, interest-bearing deposits increased $112.6 million, or 11.3%, to $1.112 billion from $999.1 million, while average borrowed funds increased $37.0 million, or 359.2%, to $47.3 million from $10.3 million, comparing the first quarters of 2022 and 2021, respectively. Average interest-bearing demand deposits increased $130.7 million, or 18.8%, to $826.5 million for the first quarter of 2022 compared to $695.8 million for the same quarter of 2021, while average savings deposits increased $26.1 million, or 22.9%, to $140.5 million from $114.3 million comparing the first quarters of 2022 and 2021, respectively. Conversely, average time deposits decreased $44.3 million, or 23.4%, to $144.7 million for the three months ended March 31, 2022 from $189.0 million for the same three months of 2021. Despite the increase in net interest income, FNCB began to experience some margin compression, as the tax-equivalent net interest margin decreased 24 basis points to 3.35% for the first quarter of 2022 from 3.59% for the same quarter of 2021. Additionally, the net interest spread declined 20 basis points to 3.31% for the three months ended March 31, 2022 from 3.51% for the same three months of 2021. The reduction in margin and spread largely reflected decreases in yields earned on loans and investments, coupled with the decline in PPP loan origination fees recognized, comparing the first quarters of 2022 and 2021. On a linked-quarter basis, the tax-equivalent net interest margin and interest rate spread each widened 6 basis points from 3.29% and 3.25%, respectively, for the fourth quarter of 2021.
For the three months ended March 31, 2022, non-interest income decreased $1.0 million, or 35.5%, to $1.8 million from $2.8 million for the three months ended March 31, 2021. The decrease was largely due to shifting market conditions which resulted in reductions in net gains on equity securities, net gains on the sale of available-for-sale debt securities and net gains on the sale of mortgage loans held for sale. In addition, in 2021, FNCB recorded non-recurring income of $0.4 million received on a BOLI insurance claim. These reductions were partially offset by an increase in deposit service charges. For the three months ended March 31, 2022, FNCB recorded a net loss on equity securities of $0.1 million, a decrease of $0.5 million, or 134.3%, compared to a net gain on equity securities of $0.4 million for the same three months of 2021. Additionally, there were no net gains realized on the sale of available-for-sale debt securities during the three months ended March 31, 2022. Comparatively, net gains realized on the sale of available-for-sale debt securities were $0.2 million for the same three-month period of 2021. There were no net gains on the sale of mortgage loans held for sale for the first quarter of 2022, compared to $0.2 million for the same quarter of 2021. These reductions were partially offset by a $0.2 million, or 20.1%, increase in deposit service charges to $1.1 million for the three months ended March 31, 2022, compared to $0.9 million for the three months ended March 31, 2021.
Non-interest expense increased $1.3 million, or 19.2% to $8.5 million for the three months ended March 31, 2022 from $7.2 million for the three months ended March 31, 2021, which primarily reflected increases in salaries and employee benefits, data processing expenses and other operating expenses. Salaries and employee benefits increased $0.9 million, or 24.7%, to $4.6 million for the first quarter of 2022 from $3.7 million for the same quarter of 2021. The increase in salaries and benefits was primarily due to the onboarding of additional staff related to the new commercial equipment financing and leasing product offering, increases in payroll taxes and higher retirement costs. Data processing expenses increased $0.3 million, or 29.8%, to $1.1 million for the three months ended March 31, 2022, compared to $0.8 million for the same three months of 2021. Other operating expenses increased $0.1 million, or 19.5% to $0.9 million for the first quarter of 2022, compared to $0.8 million for the same quarter of 2021.
Asset Quality
FNCB’s asset quality was favorable during the first quarter of 2022, as total non-performing loans remained relatively constant at $3.9 million, representing 0.37% and 0.39% of total loans and leases, gross at March 31, 2022 and at December 31, 2021, respectively. Year-over-year, non-performing loans decreased $0.9 million, or 20.2%, from $4.8 million, or 0.52% of total loans, gross, at March 31, 2021. FNCBs loan delinquency rate (total delinquent loans as a percentage of total loans, gross) remained constant at 0.55% at March 31, 2022 and at December 31, 2021, but improved 0.15% compared to 0.70% at March 31, 2021. FNCB recorded a provision for loan and lease losses of $0.8 million for the first quarter of 2022 compared to a $0.2 million provision for the same quarter of 2021. The increase was primarily attributable to increases in loan and lease volumes. The allowance for loan and lease losses was $13.1 million, or 1.27% of total loans and leases, gross, at March 31, 2022, compared to $12.4 million, or 1.27% of total loans and leases, gross, at December 31, 2021 and $12.1 million, or 1.30% of total loans and leases, gross, at March 31, 2021.
Financial Condition
Total assets decreased $14.8 million, or 0.9%, to $1.650 billion at March 31, 2022 from $1.664 billion at December 31, 2021. The change in total assets primarily reflected decreases in cash and cash equivalents and available-for-sale debt securities, which were partially offset by an increase in loans and leases, net of the ALLL. Cash and cash equivalents decreased $74.9 million, or 75.7%, to $24.1 million at March 31, 2022 from $99.0 million at December 31, 2021. Available-for-sale debt securities decreased $8.5 million, or 1.6%, to $514.1 million at March 31, 2022 from $522.6 million at December 31, 2021. Loans and leases increased $56.2 million, or 5.8%, to $1.023 billion at March 31, 2022 from $967.0 million at December 31, 2021. Increases were experienced across all loan categories, which reflected the roll-out of the new commercial equipment financing product offering, strong organic loan demand and the purchase of several pools of third-party originated loans. Total deposits decreased $43.4 million, or 3.0%, to $1.412 billion at March 31, 2022 from $1.455 billion at December 31, 2021. Meanwhile, total borrowed funds increased $57.0 million to $87.3 million at March 31, 2022 from $30.3 million at December 31, 2021. The increase was entirely due to an increase in advances through the FHLB of Pittsburgh.
Total shareholders equity decreased $24.1 million, or 14.8%, to $138.4 million at March 31, 2022 from $162.5 million at December 31, 2021. The decrease in capital was primarily due to an accumulated other comprehensive loss of $17.7 million at March 31, 2022, compared to accumulated other comprehensive income of $6.3 million at December 31, 2021. This $24.0 million reduction was related primarily to the depreciation in the fair value of FNCB’s available-for-sale debt securities, net of deferred taxes. Also contributing to the reduction in capital was $3.0 million for the repurchase of common shares under a board authorized stock repurchase program and $1.5 million in dividends declared and paid for the three months ended March 31, 2022. These reductions were slightly offset by net income for the three months ended March 31, 2022 of $4.4 million. Tangible book value decreased from $8.13 per share at December 31, 2021 to $7.03 per share at March 31, 2022. FNCB Bank was considered well capitalized with total risk-based capital and Tier 1 leverage ratios of 14.10% and 9.30%, respectively, at March 31, 2022, and 14.64% and 8.92%, respectively, at December 31, 2021.
Availability of Filings
Copies of FNCBs 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. FNCBs 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 FNCBs 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 112 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 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 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 FNCBs 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 FNCBs 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, overall financial stability and the global supply chain; the COVID-19 pandemic and actions taken to control its spread; 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 FNCBs market area; the deterioration of one or a few of the commercial real estate loans with relatively large balances contained in FNCBs loan portfolio; greater risk of loan defaults and losses from concentration of loans held by FNCB, including those to insiders and related parties; if FNCBs portfolio of loans to small and mid-sized community-based businesses increases its credit risk; if FNCBs 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 FNCBs investment securities is other-than-temporary could result in FNCB recording an impairment loss; if FNCBs 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 FNCBs 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 FNCBs information systems; any systems failures or interruptions in information technology and telecommunications systems of third parties on which FNCB depends; security breaches; if FNCBs 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 managements 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 FNCBs 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 Banks 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 FNCBs 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 managements 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, 2021.
| FNCB Bancorp, Inc. | |||||||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Per share data: | |||||||||||||||||||
| Net income (fully diluted) | $ | 0.22 | $ | 0.20 | $ | 0.31 | $ | 0.26 | $ | 0.29 | |||||||||
| Cash dividends declared | $ | 0.075 | $ | 0.075 | $ | 0.075 | $ | 0.060 | $ | 0.060 | |||||||||
| Book value | $ | 7.03 | $ | 8.13 | $ | 8.10 | $ | 7.99 | $ | 7.65 | |||||||||
| Tangible book value | $ | 7.03 | $ | 8.13 | $ | 8.10 | $ | 7.99 | $ | 7.65 | |||||||||
| Market value: | |||||||||||||||||||
| High | $ | 10.15 | $ | 9.40 | $ | 8.35 | $ | 7.98 | $ | 8.94 | |||||||||
| Low | $ | 8.67 | $ | 8.21 | $ | 7.17 | $ | 6.90 | $ | 5.80 | |||||||||
| Close | $ | 9.49 | $ | 9.24 | $ | 8.23 | $ | 7.27 | $ | 7.54 | |||||||||
| Common shares outstanding | 19,683,671 | 19,989,875 | 19,985,837 | 20,102,602 | 20,240,668 | ||||||||||||||
| Selected ratios: | |||||||||||||||||||
| Annualized return on average assets | 1.08 | % | 0.94 | % | 1.58 | % | 1.38 | % | 1.61 | % | |||||||||
| Annualized return on average shareholders’ equity | 11.31 | % | 9.82 | % | 15.61 | % | 13.37 | % | 15.27 | % | |||||||||
| Efficiency ratio | 58.12 | % | 61.75 | % | 51.32 | % | 51.86 | % | 51.87 | % | |||||||||
| Tier I leverage ratio (FNCB Bank) | 9.30 | % | 8.92 | % | 9.80 | % | 9.90 | % | 9.88 | % | |||||||||
| Total risk-based capital to risk-adjusted assets (FNCB Bank) | 14.10 | % | 14.64 | % | 15.91 | % | 15.79 | % | 16.26 | % | |||||||||
| Average shareholders’ equity to average total assets | 9.54 | % | 9.61 | % | 10.14 | % | 10.35 | % | 10.53 | % | |||||||||
| Yield on earning assets (FTE) | 3.45 | % | 3.41 | % | 3.63 | % | 3.80 | % | 3.85 | % | |||||||||
| Cost of funds | 0.14 | % | 0.16 | % | 0.23 | % | 0.30 | % | 0.34 | % | |||||||||
| Net interest spread (FTE) | 3.31 | % | 3.25 | % | 3.40 | % | 3.50 | % | 3.51 | % | |||||||||
| Net interest margin (FTE) | 3.35 | % | 3.29 | % | 3.46 | % | 3.58 | % | 3.59 | % | |||||||||
| Total delinquent loans/total loans | 0.55 | % | 0.55 | % | 0.61 | % | 0.56 | % | 0.70 | % | |||||||||
| Allowance for loan and lease losses/total loans | 1.27 | % | 1.27 | % | 1.25 | % | 1.26 | % | 1.30 | % | |||||||||
| Non-performing loans/total loans | 0.37 | % | 0.39 | % | 0.47 | % | 0.46 | % | 0.52 | % | |||||||||
| Annualized net (recoveries) charge-offs /average loans | 0.00 | % | (0.03 | %) | (0.03 | %) | (0.02 | %) | 0.03 | % | |||||||||
| FNCB Bancorp, Inc. | |||||||
| Year-to-Date Consolidated Statements of Income | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| (in thousands, except share data) | 2022 | 2021 | |||||
| Interest income | |||||||
| Interest and fees on loans and leases | $ | 10,102 | $ | 9,786 | |||
| Interest and dividends on securities: | |||||||
| Taxable | 2,390 | 1,906 | |||||
| Tax-exempt | 612 | 486 | |||||
| Dividends | 78 | 62 | |||||
| Total interest and dividends on securities | 3,080 | 2,454 | |||||
| Interest on interest-bearing deposits in other banks | 7 | 3 | |||||
| Total interest income | 13,189 | 12,243 | |||||
| Interest expense | |||||||
| Interest on deposits | 324 | 798 | |||||
| Interest on borrowed funds | |||||||
| Federal Home Loan Bank of Pittsburgh advances | 31 | – | |||||
| Junior subordinated debentures | 51 | 48 | |||||
| Total interest on borrowed funds | 82 | 48 | |||||
| Total interest expense | 406 | 846 | |||||
| Net interest income before provision for loan and lease losses | 12,783 | 11,397 | |||||
| Provision for loan and lease losses | 759 | 186 | |||||
| Net interest income after provision for loan and lease losses | 12,024 | 11,211 | |||||
| Non-interest income | |||||||
| Deposit service charges | 1,050 | 874 | |||||
| Net gain on the sale of available-for-sale debt securities | – | 213 | |||||
| Net (loss) gain on equity securities | (125 | ) | 364 | ||||
| Net gain on the sale of mortgage loans held for sale | – | 224 | |||||
| Loan-related fees | 57 | 133 | |||||
| Income from bank-owned life insurance | 145 | 121 | |||||
| Bank-owned life insurance settlement | – | 422 | |||||
| Merchant services revenue | 199 | 138 | |||||
| Other | 464 | 285 | |||||
| Total non-interest income | 1,790 | 2,774 | |||||
| Non-interest expense | |||||||
| Salaries and employee benefits | 4,658 | 3,736 | |||||
| Occupancy expense | 548 | 609 | |||||
| Equipment expense | 324 | 353 | |||||
| Advertising expense | 132 | 117 | |||||
| Data processing expense | 1,063 | 819 | |||||
| Regulatory assessments | 225 | 188 | |||||
| Bank shares tax | 341 | 315 | |||||
| Professional fees | 327 | 259 | |||||
| Other operating expenses | 926 | 775 | |||||
| Total non-interest expense | 8,544 | 7,171 | |||||
| Income before income taxes | 5,270 | 6,814 | |||||
| Income tax expense | 917 | 981 | |||||
| Net income | $ | 4,353 | $ | 5,833 | |||
| Income per share | |||||||
| Basic | $ | 0.22 | $ | 0.29 | |||
| Diluted | $ | 0.22 | $ | 0.29 | |||
| Cash dividends declared per common share | $ | 0.075 | $ | 0.060 | |||
| Weighted average number of shares outstanding: | |||||||
| Basic | 19,935,288 | 20,242,262 | |||||
| Diluted | 19,972,113 | 20,253,606 | |||||
| FNCB Bancorp, Inc. | ||||||||||||||||||
| Quarter-to-Date Consolidated Statements of Income | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||
| (in thousands, except share data) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||
| Interest income | ||||||||||||||||||
| Interest and fees on loans and leases | $ | 10,102 | $ | 10,325 | $ | 10,696 | $ | 10,242 | $ | 9,786 | ||||||||
| Interest and dividends on securities | ||||||||||||||||||
| Taxable | 2,390 | 2,281 | 2,070 | 1,980 | 1,906 | |||||||||||||
| Tax-exempt | 612 | 567 | 517 | 516 | 486 | |||||||||||||
| Dividends | 78 | 63 | 55 | 59 | 62 | |||||||||||||
| Total interest and dividends on securities | 3,080 | 2,911 | 2,642 | 2,555 | 2,454 | |||||||||||||
| Interest on interest-bearing deposits in other banks | 7 | 53 | 31 | 1 | 3 | |||||||||||||
| Total interest income | 13,189 | 13,289 | 13,369 | 12,798 | 12,243 | |||||||||||||
| Interest expense | ||||||||||||||||||
| Interest on deposits | 324 | 410 | 582 | 718 | 798 | |||||||||||||
| Interest on borrowed funds | ||||||||||||||||||
| Federal Home Loan Bank of Pittsburgh advances | 31 | 6 | – | – | – | |||||||||||||
| Junior subordinated debentures | 51 | 48 | 47 | 48 | 48 | |||||||||||||
| Total interest on borrowed funds | 82 | 54 | 47 | 48 | 48 | |||||||||||||
| Total interest expense | 406 | 464 | 629 | 766 | 846 | |||||||||||||
| Net interest income before provision (credit) for loan and lease losses | 12,783 | 12,825 | 12,740 | 12,032 | 11,397 | |||||||||||||
| Provision (credit) for loan and lease losses | 759 | 338 | (513 | ) | 155 | 186 | ||||||||||||
| Net interest income after provision (credit) for loan and lease losses | 12,024 | 12,487 | 13,253 | 11,877 | 11,211 | |||||||||||||
| Non-interest income | ||||||||||||||||||
| Deposit service charges | 1,050 | 1,038 | 1,009 | 956 | 874 | |||||||||||||
| Net gain on the sale of available-for-sale debt securities | – | – | – | – | 213 | |||||||||||||
| Net (loss) gain on equity securities | (125 | ) | 145 | 156 | 36 | 364 | ||||||||||||
| Net gain on the sale of mortgage loans held for sale | – | 40 | 41 | 47 | 224 | |||||||||||||
| Loan-related fees | 57 | 76 | 77 | 104 | 133 | |||||||||||||
| Income from bank-owned life insurance | 145 | 139 | 139 | 142 | 121 | |||||||||||||
| Bank-owned life insurance settlement | – | – | – | 4 | 422 | |||||||||||||
| Merchant services revenue | 199 | 140 | 159 | 156 | 138 | |||||||||||||
| Other | 464 | 365 | 261 | 264 | 285 | |||||||||||||
| Total non-interest income | 1,790 | 1,943 | 1,842 | 1,709 | 2,774 | |||||||||||||
| Non-interest expense | ||||||||||||||||||
| Salaries and employee benefits | 4,658 | 4,901 | 4,022 | 4,038 | 3,736 | |||||||||||||
| Occupancy expense | 548 | 549 | 450 | 431 | 609 | |||||||||||||
| Equipment expense | 324 | 333 | 319 | 333 | 353 | |||||||||||||
| Advertising expense | 132 | 221 | 160 | 214 | 117 | |||||||||||||
| Data processing expense | 1,063 | 1,024 | 961 | 885 | 819 | |||||||||||||
| Regulatory assessments | 225 | 149 | 160 | 112 | 188 | |||||||||||||
| Bank shares tax | 341 | (34 | ) | 352 | 342 | 315 | ||||||||||||
| Professional fees | 327 | 150 | 153 | 112 | 259 | |||||||||||||
| Other operating expenses | 926 | 1,879 | 923 | 759 | 775 | |||||||||||||
| Total non-interest expense | 8,544 | 9,172 | 7,500 | 7,226 | 7,171 | |||||||||||||
| Income before income taxes | 5,270 | 5,258 | 7,595 | 6,360 | 6,814 | |||||||||||||
| Income tax expense | 917 | 1,300 | 1,244 | 1,131 | 981 | |||||||||||||
| Net income | $ | 4,353 | $ | 3,958 | $ | 6,351 | $ | 5,229 | $ | 5,833 | ||||||||
| Income per share | ||||||||||||||||||
| Basic | $ | 0.22 | $ | 0.20 | $ | 0.31 | $ | 0.26 | $ | 0.29 | ||||||||
| Diluted | $ | 0.22 | $ | 0.20 | $ | 0.31 | $ | 0.26 | $ | 0.29 | ||||||||
| Cash dividends declared per common share | $ | 0.075 | $ | 0.075 | $ | 0.075 | $ | 0.060 | $ | 0.060 | ||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||
| Basic | 19,935,288 | 19,988,272 | 19,997,021 | 20,222,216 | 20,242,262 | |||||||||||||
| Diluted | 19,972,113 | 20,015,776 | 20,009,387 | 20,232,694 | 20,253,606 | |||||||||||||
| FNCB Bancorp, Inc. | ||||||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||||
| (in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||
| Cash and due from banks | $ | 19,383 | $ | 16,651 | $ | 24,612 | $ | 24,782 | $ | 22,382 | ||||||||||
| Interest-bearing deposits in other banks | 4,719 | 82,369 | 149,581 | 31,160 | 76,172 | |||||||||||||||
| Total cash and cash equivalents | 24,102 | 99,020 | 174,193 | 55,942 | 98,554 | |||||||||||||||
| Available-for-sale debt securities | 514,133 | 522,566 | 470,323 | 432,807 | 407,396 | |||||||||||||||
| Equity securities, at fair value | 5,018 | 4,922 | 4,777 | 4,303 | 4,267 | |||||||||||||||
| Restricted stock, at cost | 4,020 | 1,911 | 1,826 | 1,099 | 1,149 | |||||||||||||||
| Loans held for sale | – | – | 491 | 642 | 267 | |||||||||||||||
| Loans and leases, net of deferred loan fees and costs and unearned income | 1,036,400 | 979,439 | 958,408 | 976,538 | 931,943 | |||||||||||||||
| Allowance for loan and lease losses | (13,129 | ) | (12,416 | ) | (12,018 | ) | (12,285 | ) | (12,076 | ) | ||||||||||
| Net loans and leases | 1,023,271 | 967,023 | 946,390 | 964,253 | 919,867 | |||||||||||||||
| Bank premises and equipment, net | 15,895 | 16,082 | 17,269 | 17,360 | 17,407 | |||||||||||||||
| Accrued interest receivable | 4,870 | 4,643 | 4,593 | 4,485 | 4,567 | |||||||||||||||
| Bank-owned life insurance | 36,639 | 33,494 | 33,355 | 33,216 | 33,074 | |||||||||||||||
| Other assets | 21,602 | 14,662 | 12,674 | 10,656 | 13,488 | |||||||||||||||
| Total assets | $ | 1,649,550 | $ | 1,664,323 | $ | 1,665,891 | $ | 1,524,763 | $ | 1,500,036 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand (non-interest-bearing) | $ | 317,541 | $ | 320,089 | $ | 321,952 | $ | 312,408 | $ | 319,532 | ||||||||||
| Interest-bearing | 1,094,052 | 1,134,939 | 1,160,114 | 1,025,770 | 1,003,296 | |||||||||||||||
| Total deposits | 1,411,593 | 1,455,028 | 1,482,066 | 1,338,178 | 1,322,828 | |||||||||||||||
| Borrowed funds | 87,260 | 30,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||
| Accrued interest payable | 57 | 49 | 56 | 87 | 99 | |||||||||||||||
| Other liabilities | 12,251 | 16,479 | 11,509 | 15,574 | 11,869 | |||||||||||||||
| Total liabilities | 1,511,161 | 1,501,866 | 1,503,941 | 1,364,149 | 1,345,106 | |||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
| Preferred stock | – | – | – | – | – | |||||||||||||||
| Common stock | 24,604 | 24,987 | 24,982 | 25,128 | 25,300 | |||||||||||||||
| Additional paid-in capital | 77,642 | 80,128 | 80,000 | 80,591 | 81,640 | |||||||||||||||
| Retained earnings | 53,834 | 50,990 | 48,541 | 43,698 | 39,691 | |||||||||||||||
| Accumulated other comprehensive income | (17,691 | ) | 6,352 | 8,427 | 11,197 | 8,299 | ||||||||||||||
| Total shareholders’ equity | 138,389 | 162,457 | 161,950 | 160,614 | 154,930 | |||||||||||||||
| Total liabilities and shareholders equity | $ | 1,649,550 | $ | 1,664,323 | $ | 1,665,891 | $ | 1,524,763 | $ | 1,500,036 | ||||||||||
| FNCB Bancorp, Inc. | ||||||||||||||||||||
| Summary Tax-equivalent Net Interest Income | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||||
| (dollars in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Loans – taxable | $ | 9,755 | $ | 9,983 | $ | 10,364 | $ | 9,897 | $ | 9,401 | ||||||||||
| Loans – tax-free | 439 | 433 | 420 | 437 | 487 | |||||||||||||||
| Total loans | 10,194 | 10,416 | 10,784 | 10,334 | 9,888 | |||||||||||||||
| Securities: | ||||||||||||||||||||
| Securities, taxable | 2,468 | 2,344 | 2,125 | 2,039 | 1,968 | |||||||||||||||
| Securities, tax-free | 775 | 719 | 654 | 653 | 615 | |||||||||||||||
| Total interest and dividends on securities | 3,243 | 3,063 | 2,779 | 2,692 | 2,583 | |||||||||||||||
| Interest-bearing deposits in other banks | 7 | 53 | 31 | 1 | 3 | |||||||||||||||
| Total interest income | 13,444 | 13,532 | 13,594 | 13,027 | 12,474 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 324 | 410 | 582 | 718 | 798 | |||||||||||||||
| Borrowed funds | 82 | 54 | 47 | 48 | 48 | |||||||||||||||
| Total interest expense | 406 | 464 | 629 | 766 | 846 | |||||||||||||||
| Net interest income | $ | 13,038 | $ | 13,068 | $ | 12,965 | $ | 12,261 | $ | 11,628 | ||||||||||
| Average balances | ||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Loans – taxable | $ | 946,201 | $ | 915,693 | $ | 921,648 | $ | 909,833 | $ | 873,544 | ||||||||||
| Loans – tax-free | 54,096 | 45,920 | 43,091 | 44,583 | 46,897 | |||||||||||||||
| Total loans | 1,000,297 | 961,613 | 964,739 | 954,416 | 920,441 | |||||||||||||||
| Securities: | ||||||||||||||||||||
| Securities, taxable | 437,955 | 409,210 | 357,684 | 326,848 | 286,128 | |||||||||||||||
| Securities, tax-free | 103,086 | 92,685 | 82,706 | 82,304 | 75,876 | |||||||||||||||
| Total securities | 541,041 | 501,895 | 440,390 | 409,152 | 362,004 | |||||||||||||||
| Interest-bearing deposits in other banks | 17,464 | 125,609 | 94,434 | 7,042 | 13,490 | |||||||||||||||
| Total interest-earning assets | 1,558,802 | 1,589,117 | 1,499,563 | 1,370,610 | 1,295,935 | |||||||||||||||
| Non-earning assets | 78,394 | 91,968 | 105,912 | 145,861 | 175,301 | |||||||||||||||
| Total assets | $ | 1,637,196 | $ | 1,681,085 | $ | 1,593,014 | $ | 1,516,471 | $ | 1,471,236 | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Deposits | $ | 1,111,671 | $ | 1,163,920 | $ | 1,080,312 | $ | 1,019,612 | $ | 999,085 | ||||||||||
| Borrowed funds | 47,346 | 17,810 | 10,419 | 10,310 | 10,310 | |||||||||||||||
| Total interest-bearing liabilities | 1,159,017 | 1,181,100 | 1,090,731 | 1,029,922 | 1,009,395 | |||||||||||||||
| Demand deposits | 308,830 | 322,536 | 325,571 | 317,670 | 294,525 | |||||||||||||||
| Other liabilities | 13,234 | 15,846 | 15,258 | 11,998 | 12,413 | |||||||||||||||
| Shareholders’ equity | 156,115 | 161,603 | 161,454 | 156,881 | 154,903 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,637,196 | $ | 1,681,085 | $ | 1,593,014 | $ | 1,561,471 | $ | 1,471,236 | ||||||||||
| Yield/Cost | ||||||||||||||||||||
| Earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| Interest and fees on loans – taxable | 4.12 | % | 4.36 | % | 4.50 | % | 4.35 | % | 4.30 | % | ||||||||||
| Interest and fees on loans – tax-free | 3.25 | % | 3.77 | % | 3.90 | % | 3.92 | % | 4.15 | % | ||||||||||
| Total loans | 4.08 | % | 4.33 | % | 4.47 | % | 4.33 | % | 4.30 | % | ||||||||||
| Securities: | ||||||||||||||||||||
| Securities, taxable | 2.25 | % | 2.29 | % | 2.38 | % | 2.50 | % | 2.75 | % | ||||||||||
| Securities, tax-free | 3.01 | % | 3.10 | % | 3.16 | % | 3.17 | % | 3.24 | % | ||||||||||
| Total securities | 2.40 | % | 2.44 | % | 2.52 | % | 2.63 | % | 2.85 | % | ||||||||||
| Interest-bearing deposits in other banks | 0.16 | % | 0.17 | % | 0.13 | % | 0.06 | % | 0.09 | % | ||||||||||
| Total earning assets | 3.45 | % | 3.41 | % | 3.63 | % | 3.80 | % | 3.85 | % | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest on deposits | 0.12 | % | 0.14 | % | 0.22 | % | 0.28 | % | 0.32 | % | ||||||||||
| Interest on borrowed funds | 0.69 | % | 1.21 | % | 1.80 | % | 1.86 | % | 1.86 | % | ||||||||||
| Total interest-bearing liabilities | 0.14 | % | 0.16 | % | 0.23 | % | 0.30 | % | 0.34 | % | ||||||||||
| Net interest spread | 3.31 | % | 3.25 | % | 3.40 | % | 3.50 | % | 3.51 | % | ||||||||||
| Net interest margin | 3.35 | % | 3.29 | % | 3.46 | % | 3.58 | % | 3.59 | % | ||||||||||
| FNCB Bancorp, Inc. | |||||||||||||||||||
| Asset Quality Data | |||||||||||||||||||
| Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||
| At period end | |||||||||||||||||||
| Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) | $ | 3,864 | $ | 3,863 | $ | 4,475 | $ | 4,555 | $ | 4,842 | |||||||||
| Loans past due 90 days or more and still accruing | – | – | – | – | – | ||||||||||||||
| Total non-performing loans | 3,864 | 3,863 | 4,475 | 4,555 | 4,842 | ||||||||||||||
| Other real estate owned (OREO) | 228 | 920 | 54 | 236 | 58 | ||||||||||||||
| Other non-performing assets | 1,773 | 1,773 | 1,773 | 1,773 | 1,900 | ||||||||||||||
| Total non-performing assets | $ | 5,865 | $ | 6,556 | $ | 6,302 | $ | 6,564 | $ | 6,800 | |||||||||
| Accruing TDRs | $ | 6,455 | $ | 6,666 | $ | 6,666 | $ | 6,823 | $ | 6,962 | |||||||||
| For the three months ended | |||||||||||||||||||
| Allowance for loan and lease losses | |||||||||||||||||||
| Beginning balance | $ | 12,416 | $ | 12,018 | $ | 12,285 | $ | 12,076 | $ | 11,950 | |||||||||
| Loans charged-off | 95 | 34 | 255 | 136 | 361 | ||||||||||||||
| Recoveries of charged-off loans | 49 | 94 | 501 | 190 | 301 | ||||||||||||||
| Net charge-offs (recoveries) | 46 | (60 | ) | (246 | ) | (54 | ) | 60 | |||||||||||
| Provision (credit) for loan and lease losses | 759 | 338 | (513 | ) | 155 | 186 | |||||||||||||
| Ending balance | $ | 13,129 | $ | 12,416 | $ | 12,018 | $ | 12,285 | $ | 12,076 | |||||||||
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