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FNCB Bancorp, Inc. Reports 92% Increase in First Quarter 2017 Earnings

DUNMORE, Pa., May 01, 2017 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (OTCQX:FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), reported net income of $2.197 million, or $0.13 per basic and diluted share, for the quarter ended March 31, 2017, an increase of $1.054 million, or 92.2%, compared to net income of $1.143 million, or $0.07 per basic and diluted share, for the same quarter of 2016. The earnings improvement was largely due to a credit for loan and lease losses resulting from a recovery of a previously charged-off loan. First quarter 2017 earnings were also impacted by higher net interest income and non-interest income, partially offset by increases in income tax expense and non-interest expense. Annualized return on average assets and return on average equity improved to 0.78% and 9.77%, respectively, for the three months ended March 31, 2017, compared to 0.42% and 5.15%, respectively, for the same three months of 2016. FNCB paid holders of its common stock a dividend of $0.03 per share for the first quarter of 2017, a 50.0% increase compared to $0.02 per share for the same period of 2016. The first quarter 2017 dividend represented a 1.9% annualized return to shareholders based on the closing stock price of $6.37 per share at March 31, 2017.

Performance Highlights:

  • 92% increase in earnings, comparing the first quarters of 2017 and 2016;
  • 4.6% growth in net interest income comparing first quarters of 2017 and 2016;
  • Year over year growth in total deposits of $40.3 million, or 4.6%;
  • 46.1% reduction in non-performing loans comparing March 31, 2017 and 2016;
  • Tier I leverage ratio at March 31, 2017 improved 6.6% compared to March 31, 2016;
  • Expanded into growing Lehigh Valley marketplace with the opening of a limited purpose banking office.

“The successful management and resolution of non-performing assets, effective balance sheet management and continued improvement in credit quality and operating efficiency all factored into the solid operating results posted for the first quarter of 2017,” stated Gerard A. Champi, President and Chief Executive Officer. “For the remainder of the year, we are focusing on developing opportunities that will provide for meaningful, profitable and sustainable revenue growth for the future. Along those lines, during the first quarter we expanded our footprint into the Lehigh Valley marketplace through the opening of a limited purpose banking office in Allentown, Pennsylvania. We believe this new market provides a unique growth opportunity for FNCB going forward,” concluded Champi.

Summary Results for the Three Months Ended March 31, 2017

Tax-equivalent net interest income increased $0.3 million, or 4.4%, to $8.1 million for the first three months of 2017, from $7.7 million for the same period in 2016. The improvement reflected strong growth in average-earning assets, higher yields on the loan and investment portfolios due to increases in market interest rates, a reduction in average borrowed funds and stable funding costs. Tax-equivalent interest income increased $0.4 million, or 4.4%, to $9.1 million for the three-month period ended March 31, 2017 compared to $8.7 million for the same period of 2016. Partially offsetting the increase in interest income was a $0.1 million increase in interest expense. The increase in tax-equivalent interest income primarily resulted from a $58.1 million, or 5.9%, increase in average earning assets, specifically a $26.6 million, or 10.3%, increase in average investment securities and a $35.8 million, or 955.0%, increase in average interest-bearing deposits in other banks. The tax-equivalent yields earned on the loan and investment portfolios increased 6 basis points and 11 basis points, respectively, comparing the first quarters of 2017 and 2016. Despite these increases, the tax-equivalent yield on earning assets decreased 5 basis points to 3.47% for the three months ended March 31, 2017 from 3.52% for the same three months of 2016, as 61.6% of the growth in average earning assets was concentrated in lower-yielding deposits in other banks. Regarding interest expense, FNCB’s cost of funds remained stable at 0.48% for the three months ended March 31, 2017 and 2016, as strong deposit growth resulted in reduced reliance on higher-costing wholesale funds and other borrowed funds. Average deposits grew $82.6 million, or 11.4%, to $808.0 million for the three months ended March 31, 2017 from $725.4 million for the same three months of 2016. Conversely, average borrowed funds decreased $35.1 million, or 30.9%, to $78.3 million for the first quarter of 2017 from $113.4 million for the same quarter of 2016, resulting from reductions in FHLB borrowings in the first quarter of 2017 and a $4.0 million payment on FNCB’s subordinated debentures on December 1, 2016.

For the three months ended March 31, 2017 non-interest income totaled $1.6 million, an increase of $0.2 million, or 18.0%, compared to $1.3 million for the same three months of 2016. The change resulted primarily from an increase in net gains on the sale of securities of $0.2 million comparing the first quarters of 2017 and 2016. In addition, FNCB also recorded net gains on the sale of OREO and other repossessed assets of $51 thousand and $57 thousand, respectively, in the first quarter of 2017. Comparatively, for the first quarter of 2016, FNCB recorded a net loss on the sale of OREO of $5 thousand. Partially offsetting these gains was a decrease in net gains on the sale of mortgage loans of $43 thousand.

FNCB experienced a slight increase of $0.1 million, or 1.8%, in non-interest expense comparing the three months ended March 31, 2017 and 2016, primarily reflecting an increase of $94 thousand, or 19.1%, in occupancy expense, resulting from long-term facilities planning and increased snow removal costs during the first quarter of 2017. Other increases comparing the first quarters of 2017 and 2016 included $37 thousand in equipment expenses, $21 thousand in advertising expenses, and $17 thousand in bank shares tax. Partially offsetting these increases were decreases in regulatory assessments, legal expense, and data processing expense of $64 thousand, $52 thousand, and $36 thousand, respectively. FNCB’s efficiency ratio for the three months ended March 31, 2017 improved to 74.08% from 76.01% for the same three months of 2016.

Improved Asset Quality

Effective management of problem credits and delinquent loans led to continued improvement in FNCB’s asset quality during the first quarter of 2017. Total non-performing loans decreased $0.3 million, or 14.0%, to $1.9 million at March 31, 2017 from $2.2 million at December 31, 2016. The ratio of non-performing loans to total loans improved to 0.27% at March 31, 2017, compared to 0.31% at December 31, 2016 and 0.49% at March 31, 2016. In addition, delinquent loan levels continued to improve as evidenced by a 6-basis point improvement in ratio of total delinquent loans to total loans to 0.75% at March 31, 2017 from 0.81% at December 31, 2016. The allowance for loan and lease losses as a percentage of gross loans was 1.16% at March 31, 2017 versus 1.15% at the end of 2016.

Financial Condition

Total assets decreased $91.5 million, or 7.7%, to $1.104 billion at March 31, 2017 from $1.195 billion at December 31, 2016. The change in total assets primarily reflected a $91.7 million reduction in total deposits, which led to a corresponding decrease of $85.7 million in cash and cash equivalents. The decrease in total deposits was primarily attributable to cyclical net outflows of public funds, coupled with the anticipated exit of short-term funds received at the end of 2016 related to the sale of a municipal utility. Net loans decreased by $15.7 million, or 2.2%, while available-for-sale securities grew by $12.3 million, or 4.5%. The decrease in net loans resulted primarily from the planned exit of a large, local automobile floor plan relationship.

Total shareholders’ equity increased $3.0 million, or 3.4%, to $93.2 million at March 31, 2017 from $90.1 million at December 31, 2016. The capital improvement resulted primarily from net income of $2.2 million, coupled with a $1.0 million decrease in the accumulated other comprehensive loss, from the appreciation in the fair value of available-for-sale securities, net of tax effects.

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, which provides personal, small business and commercial banking services to individuals and businesses throughout Northeastern Pennsylvania through its 19 branch offices and Allentown-based Limited Purpose Banking Office. The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore, and had been operating under the name First National Community Bank from 1988 through June 2016. Effective June 30, 2016, the institution changed its name to FNCB Bank upon its conversion from a national charter to a Pennsylvania state charter. For more information about BauerFinancial 5-Star rated 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 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; 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 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, 2016.

[FNCB provides tabular information as follows]

FNCB Bancorp, Inc.
Selected Financial Data
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
2017 2016 2016 2016 2016
Per share data:
Net income (fully diluted) $0.13 $0.09 $0.12 $0.10 $0.07
Cash dividends declared $0.03 $0.03 $0.02 $0.02 $0.02
Book value $5.58 $5.42 $5.81 $5.76 $5.57
Tangible book value $5.58 $5.42 $5.81 $5.75 $5.56
Market value:
High $7.50 $6.30 $6.00 $6.12 $6.90
Low $6.05 $5.00 $4.75 $5.50 $5.11
Close $6.37 $6.05 $5.00 $5.60 $6.12
Common shares outstanding 16,692,314 16,645,845 16,614,856 16,586,868 16,530,432
Selected ratios:
Annualized return on average assets 0.78% 0.55% 0.73% 0.60% 0.42%
Annualized return on average shareholders' equity 9.77% 6.43% 8.46% 7.12% 5.15%
Efficiency ratio 74.08% 77.25% 70.96% 77.78% 76.01%
Tier I leverage ratio 7.55% 7.53% 7.52% 7.31% 7.08%
Total risk-based capital to risk-adjusted assets 12.38% 12.06% 12.37% 12.00% 11.81%
Average shareholders' equity to average total assets 7.97% 8.50% 8.63% 8.40% 8.15%
Yield on earning assets (FTE) 3.47% 3.53% 3.58% 3.56% 3.52%
Cost of funds 0.48% 0.49% 0.52% 0.50% 0.48%
Net interest spread (FTE) 2.99% 3.03% 3.06% 3.06% 3.04%
Net interest margin (FTE) 3.07% 3.11% 3.14% 3.14% 3.11%
Total delinquent loans/total loans 0.75% 0.81% 0.72% 0.74% 0.82%
Allowance for loan and lease losses/total loans 1.16% 1.15% 1.17% 1.17% 1.19%
Non-performing loans/total loans 0.27% 0.31% 0.33% 0.37% 0.49%
Annualized net (recoveries) charge-offs/average loans (0.20%) 0.20% (0.09%) 0.26% 0.47%

FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
Three Months Ended
Mar 31,
(in thousands, except share data) 2017 2016
Interest income
Interest and fees on loans $7,038 $6,969
Interest and dividends on securities
U.S. government agencies 900 930
State and political subdivisions, tax-free 23 10
State and political subdivisions, taxable 822 535
Other securities 66 96
Total interest and dividends on securities 1,811 1,571
Interest on interest-bearing deposits in other banks 90 4
Total interest income 8,939 8,544
Interest expense
Interest on deposits 744 642
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 131 148
Interest on subordinated debentures 112 159
Interest on junior subordinated debentures 69 57
Total interest on borrowed funds 312 364
Total interest expense 1,056 1,006
Net interest income before (credit) provision for loan and lease losses 7,883 7,538
(Credit) provision for loan and lease losses (478) 696
Net interest income after (credit) provision for loan and lease losses 8,361 6,842
Non-interest income
Deposit service charges 691 701
Net gain on the sale of securities 278 103
Net gain on the sale of mortgage loans held for sale 25 68
Net gain on the sale of other repossessed assets 57 -
Net gain (loss) on the sale of other real estate owned 51 (5)
Loan-related fees 91 107
Income from bank-owned life insurance 135 146
Other 242 211
Total non-interest income 1,570 1,331
Non-interest expense
Salaries and employee benefits 3,524 3,514
Occupancy expense 587 493
Equipment expense 460 423
Data processing expense 487 523
Regulatory assessments 173 237
Bank shares tax 258 241
Expense of other real estate owned 40 46
Legal expense 68 120
Professional fees 276 287
Insurance expense 125 128
Other operating expenses 930 792
Total non-interest expense 6,928 6,804
Income before income taxes 3,003 1,369
Income tax expense 806 226
Net income $2,197 $1,143
Income per share
Basic $0.13 $0.07
Diluted $0.13 $0.07
Cash dividends declared per common share $0.03 $0.02
Weighted average number of shares outstanding:
Basic 16,657,551 16,519,759
Diluted 16,670,788 16,520,580

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) 2017 2016 2016 2016 2016
Interest income
Interest and fees on loans $7,038 $7,066 $7,156 $7,032 $6,969
Interest and dividends on securities
U.S. government agencies 900 879 848 900 930
State and political subdivisions, tax-free 23 16 9 11 10
State and political subdivisions, taxable 822 740 675 624 535
Other securities 66 56 69 94 96
Total interest and dividends on securities 1,811 1,691 1,601 1,629 1,571
Interest on interest-bearing deposits in other banks 90 19 8 2 4
Total interest income 8,939 8,776 8,765 8,663 8,544
Interest expense
Interest on deposits 744 721 704 663 642
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 131 123 157 167 148
Interest on subordinated debentures 112 145 162 159 159
Interest on junior subordinated debentures 69 67 62 61 57
Total interest on borrowed funds 312 335 381 387 364
Total interest expense 1,056 1,056 1,085 1,050 1,006
Net interest income before (credit) provision for loan and lease losses 7,883 7,720 7,680 7,613 7,538
(Credit) provision for loan and lease losses (478) 295 (234) 396 696
Net interest income after (credit) provision for loan and lease losses 8,361 7,425 7,914 7,217 6,842
Non-interest income
Deposit service charges 691 735 739 717 701
Net gain on the sale of securities 278 - - 857 103
Net gain on the sale of mortgage loans held for sale 25 102 99 71 68
Net gain on the sale of other repossessed assets 57 - - - -
Net gain on the sale of SBA guaranteed loans - - 51 - -
Net gain (loss) on the sale of other real estate owned 51 20 32 2 (5)
Loan-related fees 91 152 85 95 107
Income from bank-owned life insurance 135 126 137 143 146
Other 242 263 237 209 211
Total non-interest income 1,570 1,398 1,380 2,094 1,331
Non-interest expense
Salaries and employee benefits 3,524 3,954 3,263 3,589 3,514
Occupancy expense 587 476 479 329 493
Equipment expense 460 455 429 425 423
Data processing expense 487 475 505 494 523
Regulatory assessments 173 100 199 193 237
Bank shares tax 258 90 253 252 241
Expense of other real estate owned 40 74 95 194 46
Legal expense 68 77 79 86 120
Professional fees 276 245 157 272 287
Insurance expense 125 132 131 125 128
Other operating expenses 930 1,085 963 1,066 792
Total non-interest expense 6,928 7,163 6,553 7,025 6,804
Income before income taxes 3,003 1,660 2,741 2,286 1,369
Income tax expense 806 136 724 661 226
Net income $2,197 $1,524 $2,017 $1,625 $1,143
Income per share
Basic $0.13 $0.09 $0.12 $0.10 $0.07
Diluted $0.13 $0.09 $0.12 $0.10 $0.07
Cash dividends declared per common share $0.03 $0.03 $0.02 $0.02 $0.02
Weighted average number of shares outstanding:
Basic 16,657,551 16,621,467 16,593,811 16,549,169 16,519,759
Diluted 16,670,788 16,621,467 16,593,811 16,549,169 16,520,580

FNCB Bancorp, Inc.
Consolidated Balance Sheets
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(in thousands) 2017 2016 2016 2016 2016
Assets
Cash and cash equivalents:
Cash and due from banks $23,571 $20,562 $24,558 $15,847 $16,367
Interest-bearing deposits in other banks 3,154 91,883 32,778 1,825 1,847
Total cash and cash equivalents 26,725 112,445 57,336 17,672 18,214
Securities available for sale, at fair value 284,965 272,676 263,475 262,190 263,523
Stock in Federal Home Loan Bank of Pittsburgh at cost 2,678 3,311 2,741 5,219 3,932
Loans held for sale 563 596 185 563 455
Loans, net of net deferred costs and unearned income 718,450 734,279 729,662 733,720 728,158
Allowance for loan and lease losses (8,306) (8,419) (8,490) (8,559) (8,635)
Net loans 710,144 725,860 721,172 725,161 719,523
Bank premises and equipment, net 10,914 10,784 10,615 10,793 10,904
Accrued interest receivable 2,950 2,757 2,736 2,511 2,854
Intangible assets - - 14 55 96
Bank-owned life insurance 30,068 29,933 29,807 29,670 29,527
Other real estate owned 1,352 2,048 2,065 1,628 1,806
Other assets 33,526 34,965 31,441 32,076 34,181
Total assets $1,103,885 $1,195,375 $1,121,587 $1,087,538 $1,085,015
Liabilities
Deposits:
Demand (non-interest-bearing) $156,901 $173,702 $157,119 $144,082 $162,882
Interest-bearing 766,525 841,437 773,840 691,751 720,243
Total deposits 923,426 1,015,139 930,959 835,833 883,125
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances 56,632 58,537 58,837 120,771 74,511
Subordinated debentures 10,000 10,000 14,000 14,000 14,000
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Total borrowed funds 76,942 78,847 83,147 145,081 98,821
Accrued interest payable 225 242 294 311 333
Other liabilities 10,107 11,000 10,614 10,813 10,695
Total liabilities 1,010,700 1,105,228 1,025,014 992,038 992,974
Shareholders' equity
Preferred stock - - - - -
Common stock 20,865 20,807 20,768 20,734 20,663
Additional paid-in capital 62,841 62,593 62,381 62,210 62,069
Retained earnings 10,228 8,531 7,506 5,820 4,527
Accumulated other comprehensive (loss) income (749) (1,784) 5,918 6,736 4,782
Total shareholders' equity 93,185 90,147 96,573 95,500 92,041
Total liabilities and shareholders’ equity $1,103,885 $1,195,375 $1,121,587 $1,087,538 $1,085,015

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) 2017 2016 2016 2016 2016
Interest income
Loans:
Loans - taxable $6,701 $6,767 $6,809 $6,674 $6,603
Loans - tax-free 511 453 526 542 555
Total loans 7,212 7,220 7,335 7,216 7,158
Securities:
Securities, taxable 1,788 1,675 1,592 1,618 1,561
Securities, tax-free 35 24 14 17 15
Total interest and dividends on securities 1,823 1,699 1,606 1,635 1,576
Interest-bearing deposits in other banks 90 19 8 2 4
Total interest income 9,125 8,938 8,949 8,853 8,738
Interest expense
Deposits 744 721 704 663 642
Borrowed funds 312 335 381 387 364
Total interest expense 1,056 1,056 1,085 1,050 1,006
Net interest income $8,069 $7,882 $7,864 $7,803 $7,732
Average balances
Earning assets:
Loans:
Loans - taxable $683,518 $687,225 $688,038 $682,642 $683,198
Loans - tax-free 43,822 41,081 47,620 48,131 48,433
Total loans 727,340 728,306 735,658 730,773 731,631
Securities:
Securities, taxable 281,712 267,634 257,431 260,835 256,555
Securities, tax-free 2,571 1,664 905 1,090 1,107
Total securities 284,283 269,298 258,336 261,925 257,662
Interest-bearing deposits in other banks 39,520 15,727 6,448 2,347 3,746
Total interest-earning assets 1,051,143 1,013,331 1,000,442 995,045 993,039
Non-earning assets 92,368 95,322 99,010 97,271 101,958
Total assets $1,143,511 $1,108,653 $1,099,452 $1,092,316 $1,094,997
Interest-bearing liabilities:
Deposits $807,981 $775,565 $737,431 $725,552 $725,369
Borrowed funds 78,306 78,780 103,821 117,229 113,386
Total interest-bearing liabilities 886,287 854,345 841,252 842,781 838,755
Demand deposits 155,010 149,008 152,319 146,622 146,994
Other liabilities 11,045 11,029 11,006 11,125 19,967
Shareholders' equity 91,169 94,271 94,875 91,788 89,281
Total liabilities and shareholders' equity $1,143,511 $1,108,653 $1,099,452 $1,092,316 $1,094,997
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable 3.92% 3.94% 3.96% 3.91% 3.87%
Interest and fees on loans - tax-free 4.66% 4.41% 4.42% 4.50% 4.58%
Total loans 3.97% 3.97% 3.99% 3.95% 3.91%
Securities:
Securities, taxable 2.54% 2.50% 2.47% 2.48% 2.43%
Securities, tax-free 5.42% 5.83% 6.03% 6.11% 5.48%
Total securities 2.56% 2.52% 2.49% 2.50% 2.45%
Interest-bearing deposits in other banks 0.91% 0.48% 0.50% 0.34% 0.43%
Total earning assets 3.47% 3.53% 3.58% 3.56% 3.52%
Interest-bearing liabilities:
Interest on deposits 0.37% 0.37% 0.38% 0.37% 0.35%
Interest on borrowed funds 1.59% 1.70% 1.47% 1.32% 1.28%
Total interest-bearing liabilities 0.48% 0.49% 0.52% 0.50% 0.48%
Net interest spread 2.99% 3.03% 3.06% 3.06% 3.04%
Net interest margin 3.07% 3.11% 3.14% 3.14% 3.11%

FNCB Bancorp, Inc.
Asset Quality Data
Mar 31, Dec 31, Sept 30, Jun 30, Mar 31,
(in thousands) 2017
2016 2016
2016 2016
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $1,922 $2,234 $2,416 $2,739 $3,569
Loans past due 90 days or more and still accruing - - - - -
Total non-performing loans 1,922 2,234 2,416 2,739 3,569
Other real estate owned (OREO) 1,352 2,048 2,065 1,628 1,806
Other non-performing assets 2,006 2,160 260 - -
Total non-performing assets $5,280 $6,442 $4,741 $4,367 $5,375
Accruing TDRs $8,775 $4,176 $4,106 $4,043 $4,623
For the three months ended
Allowance for loan and lease losses
Beginning balance $8,419 $8,490 $8,559 $8,635 $8,790
Loans charged-off 297 572 189 709 1,148
Recoveries of charged-off loans 662 206 354 237 297
Net (recoveries) charge-offs (365) 366 (165) 472 851
(Credit) provision for loan and lease losses (478) 295 (234) 396 696
Ending balance $8,306 $8,419 $8,490 $8,559 $8,635


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

Source:FNCB Bancorp, Inc.