×

FNCB Bancorp, Inc. Announces 13% Increase in Third Quarter 2017 Earnings and 31% Increase in 2017 Year-to-Date Earnings

DUNMORE, Pa., Nov. 07, 2017 (GLOBE NEWSWIRE) -- FNCB Bancorp, Inc. (OTCQX:FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), reported net income of $2.272 million, or $0.14 per basic and diluted share, for the third quarter of 2017, an increase of $255 thousand, or 12.6%, compared to net income of $2.017 million, or $0.12 per basic and diluted share, for the same quarter of 2016. Net income for the nine months ended September 30, 2017 increased $1.5 million, or 30.8%, to $6.3 million, or $0.37 per basic and diluted share, from $4.8 million, or $0.29 per basic and diluted share, for the comparable nine-month period of 2016. The favorable variances in third quarter and year-to-date earnings were largely due to improved net interest income and non-interest income, coupled with a reduction in non-interest expense. Annualized return on average assets was 0.80% and 0.74%, respectively, for the three and nine months ended September 30, 2017, compared to 0.73% and 0.58%, for the respective periods of 2016. Annualized return on average equity was 9.27% and 8.87%, respectively, for the three- and nine-month periods ended September 30, 2017, compared to 8.46% and 6.95%, respectively, for the comparable periods in 2016. Dividends declared and paid were $0.03 per share for the third quarter of 2017 and $0.09 per share for the year-to-date period of 2017, which represented a 50.0% increase compared to $0.02 per share and $0.06 per share, respectively, for the three and nine months ended September 30, 2016. Year-to-date dividends declared and paid represented a 1.6% annualized return to shareholders based on the closing stock price of $7.57 per share at September 30, 2017.

Performance Highlights:

  • 7.9% increase in tax-equivalent net interest income, comparing the third quarters of 2017 and 2016;
  • Earning asset yield improves 19 basis points comparing third quarters of 2017 and 2016;
  • Tax-equivalent net interest margin increases 13 basis points comparing the third quarters of 2017 and 2016;
  • Efficiency ratio improved to 65.09% for the third quarter of 2017 from 70.96% for the comparable quarter of 2016;
  • Year over year growth in total deposits of $52.3 million, or 5.6%;
  • Closing stock price increases $2.57 per share, or 51.4%, year over year;
  • Tier I leverage ratio at September 30, 2017 improved 57 basis points, or 7.6%, from December 31, 2016;
  • Accelerated a $5.0 million principal reduction on FNCB’s subordinated notes originally due September 1, 2018 to September 1, 2017; and
  • Elected three new members to the boards of directors of FNCB and the Bank.

“Our strong third quarter performance reflected solid, organic loan and deposit growth, improved earning asset yields and a continued focus on improving efficiency and maintaining stable non-interest expense levels,” stated Gerard A. Champi, President and Chief Executive Officer. “Also in the third quarter, we were pleased to welcome three new members to the boards of directors of both FNCB and the Bank. The new directors, all accomplished leaders among their respective industries and the communities we serve, will add great value and support to our organization in executing our strategic objectives,” concluded Mr. Champi.

Summary Results for the Three and Nine Months Ended September 30, 2017

Tax-equivalent net interest income improved $0.6 million, or 7.9%, to $8.5 million for the third quarter of 2017, from $7.9 million for the same quarter of 2016. For the nine months ended September 30, 2017, tax-equivalent net interest income increased $1.4 million, or 5.9%, to $24.8 million, compared to $23.4 million for the same nine months of 2016. The improvement for both the quarter and year-to-date periods primarily reflected higher yields earned on and growth in average earning assets, coupled with reduced reliance on borrowed funds, partially offset by higher funding costs. Tax-equivalent earning asset yields improved 19 basis points for the third quarter and 8 basis points for the nine months ended September 30, 2017 over the same periods of 2016. Average earning assets grew $36.8 million, or 3.7%, and $41.1 million, or 4.1%, comparing the quarter and year-to-date periods ended September 30, 2017 and 2016, respectively. Strong growth in lower-costing interest-bearing demand and savings accounts resulted in reduced reliance on higher-costing Federal Home Loan Bank of Pittsburgh (“FHLB”) advances, which provided for relatively stable funding costs despite upward movements in short-term interest rates. Comparing the three months ended September 30, 2017 and 2016, average interest-bearing deposits increased $55.2 million, or 7.5%, while average borrowed funds decreased $30.7 million, or 29.5%. For the nine months ended September 30, interest-bearing deposits averaged $794.7 million in 2017, an increase of $65.2 million, or 8.9%, compared to $729.5 million in 2016. Conversely, borrowed funds averaged $74.6 million for the nine months ended September 30, 2017, a decrease of $36.9 million, or 33.1%, from $111.5 million averaged for the same period of 2016. Comparing the three months and nine months ended September 30, 2017 and 2016, FNCB’s cost of funds increased 7 basis points and 3 basis points, respectively. The tax-equivalent net interest margin improved 13 basis points to 3.27% for the third quarter of 2017 from 3.14% for the same quarter 2016. In addition, the third quarter 2017 margin was a 6-basis point improvement from 3.21% for the second quarter of 2017. For the nine months ended September 30, 2017 the tax-equivalent net interest margin was 3.18%, a 5-basis point improvement compared to 3.13% for the same nine months of 2016.

For the three months and nine months ended September 30, 2017, non-interest income increased $0.3 million, or 24.2%, and $0.5 million, or 10.4%, compared to the respective periods of 2016. The improvement in both the quarter and year-to-date periods resulted primarily from increases in net gains realized on the sale of available-for-sale securities.

For the three months ended September 30, 2017, non-interest expense totaled $6.4 million, a decrease of $0.2 million, or 2.4%, from $6.6 million for the same three months of 2016. The decrease in non-interest expense comparing the quarterly periods reflected a decrease in rent expense associated with long-term facilities planning, coupled with reductions in legal, regulatory, and advertising expenses and other losses. For the nine months ended September 30, 2017, non-interest expense decreased $0.1 million, or 0.6%, compared to the same year-to-date period of 2016. The decrease in non-interest expense for the year-to-date periods was due largely to lower salary and benefit costs due to open positions and a decline in severance costs, coupled with lower regulatory and legal expenses, partially offset by higher occupancy and equipment expenses.

Asset Quality

Asset quality improved during the third quarter, as total non-performing loans decreased $1.0 million to $2.6 million at September 30, 2017 from $3.7 million at June 30, 2017, but were $0.4 million higher than $2.2 million at December 31, 2016. The ratio of non-performing loans to total loans was 0.35% at September 30, 2017, compared to 0.50% at June 30, 2017 and 0.31% at December 31, 2016. FNCB’s asset quality compared favorably to the peer average of 0.70% at June 30, 2017, the most recent data reported for FDIC-insured banks having assets between $1.0 billion and $3.0 billion. The allowance for loan and lease losses as a percentage of gross loans was 1.17% at September 30, 2017, compared to 1.16% at June 30, 2017 and 1.15% at December 31, 2016.

Financial Condition

Total assets increased $49.4 million, or 4.5%, to $1.157 billion at September 30, 2017 from $1.108 billion at June 30, 2017. The increase reflected strong deposit growth, which was used to fund earning asset growth and accelerate a $5.0 million principal payment on FNCB’s subordinated notes originally due September 1, 2018 to September 1, 2017. Total deposits increased $50.5 million, or 5.4%, which was due largely to cyclical deposit trends of municipal customers, as well as the development of new municipal relationships. Net loans grew $31.0 million, or 4.3%, to $750.6 million at September 30, 2017 from $719.6 million at June 30, 2017.

Total assets at September 30, 2017 decreased $38.5 million, or 3.2%, from $1.196 billion at December 31, 2016. The change in total assets from year-end 2016, primarily resulted from a $68.6 million, or 61.0%, reduction in cash and cash equivalents, which was driven by a $31.9 million reduction in total deposits, coupled with the repayment of borrowed funds of $18.2 million. The decrease in total deposits was attributed primarily to the anticipated exit of short-term deposits in the first quarter of 2017 that were received late in 2016, with the remainder used to fund earning asset growth. Net loans grew $27.8 million, or 3.8%, to $750.6 million at September 30, 2017 from $722.9 million at December 31, 2016. Additionally, securities available for sale increased $6.0 million, or 2.2%, to $282.0 million at the end of the third quarter of 2017 from $276.0 million at year-end 2016.

Total shareholders’ equity increased $7.1 million, or 7.9%, to $97.5 million at September 30, 2017 from $90.4 million at December 31, 2016. The capital improvement resulted primarily from net income of $6.3 million, coupled with a $1.7 million increase in accumulated other comprehensive income, 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 18 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.

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

FNCB may from time to time make written or oral “forward-looking statements,” including statements contained in our filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications, which are made in good faith by us pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to FNCB’s beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, that are subject to significant risks and uncertainties, and are subject to change based on various factors (some of which are beyond our control). The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause FNCB’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in our markets; the effects of, and changes in trade, monetary, fiscal and tax policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the timely development of and acceptance of new products and services; the ability of FNCB to compete with other institutions for business; 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
Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
2017 2017 2017 2016 2016
Per share data:
Net income (fully diluted) $0.14 $0.11 $0.13 $0.09 $0.12
Cash dividends declared $0.03 $0.03 $0.03 $0.03 $0.02
Book value $5.82 $5.76 $5.58 $5.43 $5.81
Tangible book value $5.82 $5.76 $5.58 $5.43 $5.81
Market value:
High $8.00 $8.13 $7.50 $6.30 $6.00
Low $7.41 $6.35 $6.05 $5.00 $4.75
Close $7.57 $7.80 $6.37 $6.05 $5.00
Common shares outstanding 16,757,963 16,757,963 16,692,314 16,645,845 16,614,856
Selected ratios:
Annualized return on average assets 0.80% 0.65% 0.78% 0.55% 0.73%
Annualized return on average shareholders' equity 9.27% 7.60% 9.77% 6.43% 8.46%
Efficiency ratio 65.09% 72.81% 74.08% 77.25% 70.96%
Tier I leverage ratio 8.10% 7.99% 7.55% 7.53% 7.52%
Total risk-based capital to risk-adjusted assets 12.17% 12.53% 12.38% 12.06% 12.37%
Average shareholders' equity to average total assets 8.61% 8.49% 7.97% 8.50% 8.63%
Yield on earning assets (FTE) 3.77% 3.66% 3.47% 3.53% 3.58%
Cost of funds 0.59% 0.53% 0.48% 0.49% 0.52%
Net interest spread (FTE) 3.18% 3.13% 2.99% 3.03% 3.06%
Net interest margin (FTE) 3.27% 3.21% 3.07% 3.11% 3.14%
Total delinquent loans/total loans 0.81% 0.94% 0.75% 0.81% 0.72%
Allowance for loan and lease losses/total loans 1.17% 1.16% 1.16% 1.15% 1.17%
Non-performing loans/total loans 0.35% 0.50% 0.27% 0.31% 0.33%
Annualized net charge-offs (recoveries)/average loans 0.08% 0.14% (0.20%) 0.20% (0.09%)

FNCB Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
Nine Months Ended
September 30,
(in thousands, except share data) 2017 2016
Interest income
Interest and fees on loans $21,748 $20,984
Interest and dividends on securities
U.S. government agencies 2,566 2,678
State and political subdivisions, tax-free 42 30
State and political subdivisions, taxable 2,816 1,834
Other securities 409 432
Total interest and dividends on securities 5,833 4,974
Interest on interest-bearing deposits in other banks 146 14
Total interest income 27,727 25,972
Interest expense
Interest on deposits 2,513 2,009
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 424 472
Interest on subordinated debentures 323 480
Interest on junior subordinated debentures 219 180
Total interest on borrowed funds 966 1,132
Total interest expense 3,479 3,141
Net interest income before provision for loan and lease losses 24,248 22,831
Provision for loan and lease losses 486 858
Net interest income after provision for loan and lease losses 23,762 21,973
Non-interest income
Deposit service charges 2,147 2,157
Net gain on the sale of securities 1,338 960
Net gain on the sale of mortgage loans held for sale 241 238
Net gain on the sale of SBA guaranteed loans 79 51
Net gain on the sale of other repossessed assets 47 -
Net gain on the sale of other real estate owned 57 29
Loan-related fees 252 287
Income from bank-owned life insurance 399 426
Other 747 657
Total non-interest income 5,307 4,805
Non-interest expense
Salaries and employee benefits 10,069 10,366
Occupancy expense 1,567 1,301
Equipment expense 1,380 1,277
Data processing expense 1,502 1,522
Regulatory assessments 497 629
Bank shares tax 762 746
Expense of other real estate owned 432 335
Legal expense 115 285
Professional fees 662 716
Insurance expense 385 384
Other operating expenses 2,894 2,821
Total non-interest expense 20,265 20,382
Income before income taxes 8,804 6,396
Income tax expense 2,543 1,611
Net income $6,261 $4,785
Income per share
Basic $0.37 $0.29
Diluted $0.37 $0.29
Cash dividends declared per common share $0.09 $0.06
Weighted average number of shares outstanding:
Basic 16,711,172 16,554,391
Diluted 16,728,852 16,556,154

FNCB Bancorp, Inc.
Quarter-to-Date Consolidated Statements of Income
Three Months Ended
Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(in thousands, except share data) 2017 2017 2017 2016 2016
Interest income
Interest and fees on loans $7,576 $7,192 $6,980 $7,008 $7,098
Interest and dividends on securities
U.S. government agencies 816 850 900 879 848
State and political subdivisions, tax-free 7 12 23 16 9
State and political subdivisions, taxable 1,016 978 822 740 675
Other securities 166 119 124 114 127
Total interest and dividends on securities 2,005 1,959 1,869 1,749 1,659
Interest on interest-bearing deposits in other banks 24 32 90 19 8
Total interest income 9,605 9,183 8,939 8,776 8,765
Interest expense
Interest on deposits 943 826 744 721 704
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances 163 130 131 123 157
Interest on subordinated debentures 97 114 112 145 162
Interest on junior subordinated debentures 77 73 69 67 62
Total interest on borrowed funds 337 317 312 335 381
Total interest expense 1,280 1,143 1,056 1,056 1,085
Net interest income before provision (credit) for loan and lease losses 8,325 8,040 7,883 7,720 7,680
Provision (credit) for loan and lease losses 543 421 (478) 295 (234)
Net interest income after provision (credit) for loan and lease losses 7,782 7,619 8,361 7,425 7,914
Non-interest income
Deposit service charges 728 728 691 735 739
Net gain on the sale of securities 367 693 278 - -
Net gain on the sale of mortgage loans held for sale 106 110 25 102 99
Net (loss) gain on the sale of other repossessed assets - (10) 57 - -
Net gain on the sale of SBA guaranteed loans 23 56 - - 51
Net gain on the sale of other real estate owned - 6 51 20 32
Loan-related fees 96 65 91 152 85
Income from bank-owned life insurance 129 135 135 126 137
Other 265 240 242 263 237
Total non-interest income 1,714 2,023 1,570 1,398 1,380
Non-interest expense
Salaries and employee benefits 3,247 3,298 3,524 3,954 3,263
Occupancy expense 394 586 587 476 479
Equipment expense 474 446 460 455 429
Data processing expense 506 509 487 475 505
Regulatory assessments 160 164 173 100 199
Bank shares tax 252 252 258 90 253
Expense of other real estate owned 104 288 40 74 95
Legal expense 23 24 68 77 79
Professional fees 206 180 276 245 157
Insurance expense 132 128 125 132 131
Other operating expenses 899 1,065 930 1,085 963
Total non-interest expense 6,397 6,940 6,928 7,163 6,553
Income before income taxes 3,099 2,702 3,003 1,660 2,741
Income tax expense 827 910 806 136 724
Net income $2,272 $1,792 $2,197 $1,524 $2,017
Income per share
Basic $0.14 $0.11 $0.13 $0.09 $0.12
Diluted $0.14 $0.11 $0.13 $0.09 $0.12
Cash dividends declared per common share $0.03 $0.03 $0.03 $0.03 $0.02
Weighted average number of shares outstanding:
Basic 16,757,963 16,716,899 16,657,551 16,621,467 16,593,811
Diluted 16,777,671 16,736,995 16,670,788 16,621,467 16,593,811

FNCB Bancorp, Inc.
Consolidated Balance Sheets
Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(in thousands) 2017 2017 2017 2016 2016
Assets
Cash and cash equivalents:
Cash and due from banks $24,881 $24,169 $23,571 $20,562 $24,558
Interest-bearing deposits in other banks 18,929 1,991 3,154 91,883 32,778
Total cash and cash equivalents 43,810 26,160 26,725 112,445 57,336
Securities available for sale, at fair value 282,037 283,040 288,295 276,015 266,951
Stock in Federal Home Loan Bank of Pittsburgh at cost 2,450 2,282 2,678 3,311 2,741
Loans held for sale 147 617 563 596 185
Loans, net of net deferred costs and unearned income 759,489 728,141 715,450 731,279 726,662
Allowance for loan and lease losses (8,862) (8,469) (8,306) (8,419) (8,490)
Net loans 750,627 719,672 707,144 722,860 718,172
Bank premises and equipment, net 10,482 10,715 10,914 10,784 10,615
Accrued interest receivable 3,203 2,784 2,950 2,757 2,736
Bank-owned life insurance 30,332 30,203 30,068 29,933 29,807
Other real estate owned 1,088 1,183 1,352 2,048 2,065
Other assets 32,935 31,083 33,414 34,850 31,293
Total assets $1,157,111 $1,107,739 $1,104,103 $1,195,599 $1,121,901
Liabilities
Deposits:
Demand (non-interest-bearing) $162,426 $147,878 $156,901 $173,702 $157,119
Interest-bearing 820,786 784,872 766,525 841,437 773,840
Total deposits 983,212 932,750 923,426 1,015,139 930,959
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances 45,350 44,903 56,632 58,537 58,837
Subordinated debentures 5,000 10,000 10,000 10,000 14,000
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Total borrowed funds 60,660 65,213 76,942 78,847 83,147
Accrued interest payable 244 235 225 242 294
Other liabilities 15,513 12,797 10,107 11,000 10,614
Total liabilities 1,059,629 1,010,995 1,010,700 1,105,228 1,025,014
Shareholders' equity
Preferred stock - - - - -
Common stock 20,947 20,947 20,865 20,807 20,768
Additional paid-in capital 63,143 63,076 62,841 62,593 62,381
Retained earnings 13,282 11,517 10,228 8,531 7,506
Accumulated other comprehensive income (loss) 110 1,204 (531) (1,560) 6,232
Total shareholders' equity 97,482 96,744 93,403 90,371 96,887
Total liabilities and shareholders’ equity $1,157,111 $1,107,739 $1,104,103 $1,195,599 $1,121,901

FNCB Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
Three Months Ended
Sept 30, Jun 30, Mar 31, Dec 31, Sept 30,
(dollars in thousands) 2017 2017 2017 2016 2016
Interest income
Loans:
Loans - taxable $7,266 $6,874 $6,643 $6,709 $6,751
Loans - tax-free 470 482 511 453 526
Total loans 7,736 7,356 7,154 7,162 7,277
Securities:
Securities, taxable 1,998 1,947 1,846 1,733 1,650
Securities, tax-free 11 18 35 24 14
Total interest and dividends on securities 2,009 1,965 1,881 1,757 1,664
Interest-bearing deposits in other banks 24 32 90 19 8
Total interest income 9,769 9,353 9,125 8,938 8,949
Interest expense
Deposits 943 826 744 721 704
Borrowed funds 337 317 312 335 381
1,280 1,143 1,056 1,056 1,085
Net interest income $8,489 $8,210 $8,069 $7,882 $7,864
Average balances
Earning assets:
Loans:
Loans - taxable $700,729 $682,426 $680,518 $684,225 $685,038
Loans - tax-free 38,109 40,190 43,822 41,081 47,620
Total loans 738,838 722,616 724,340 725,306 732,658
Securities:
Securities, taxable 290,348 287,133 284,712 270,634 260,431
Securities, tax-free 600 1,105 2,571 1,664 905
Total securities 290,948 288,238 287,283 272,298 261,336
Interest-bearing deposits in other banks 7,499 12,676 39,520 15,727 6,448
Total interest-earning assets 1,037,285 1,023,530 1,051,143 1,013,331 1,000,442
Non-earning assets 92,603 90,672 92,368 95,322 99,010
Total assets $1,129,888 $1,114,202 $1,143,511 $1,108,653 $1,099,452
Interest-bearing liabilities:
Deposits $792,649 $783,672 $807,981 $775,565 $737,431
Borrowed funds 73,168 72,347 78,306 78,780 103,821
Total interest-bearing liabilities 865,817 856,019 886,287 854,345 841,252
Demand deposits 156,483 152,974 155,010 149,008 152,319
Other liabilities 10,325 10,633 11,045 11,029 11,006
Shareholders' equity 97,263 94,576 91,169 94,271 94,875
Total liabilities and shareholders' equity $1,129,888 $1,114,202 $1,143,511 $1,108,653 $1,099,452
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable 4.15% 4.03% 3.90% 3.94% 3.94%
Interest and fees on loans - tax-free 4.93% 4.80% 4.66% 4.41% 4.42%
Total loans 4.19% 4.07% 3.95% 3.97% 3.97%
Securities:
Securities, taxable 2.75% 2.71% 2.59% 2.56% 2.53%
Securities, tax-free 7.33% 6.51% 5.42% 5.83% 6.19%
Total securities 2.76% 2.73% 2.62% 2.58% 2.55%
Interest-bearing deposits in other banks 1.28% 1.01% 0.91% 0.48% 0.50%
Total earning assets 3.77% 3.66% 3.47% 3.53% 3.58%
Interest-bearing liabilities:
Interest on deposits 0.48% 0.42% 0.37% 0.37% 0.38%
Interest on borrowed funds 1.84% 1.75% 1.59% 1.70% 1.47%
Total interest-bearing liabilities 0.59% 0.53% 0.48% 0.49% 0.52%
Net interest spread 3.18% 3.13% 2.99% 3.03% 3.06%
Net interest margin 3.27% 3.21% 3.07% 3.11% 3.14%

FNCB Bancorp, Inc.
Asset Quality Data
Sept 30, June 30, Mar 31, Dec 31, Sept 30,
(in thousands) 2017 2017 2017 2016 2016
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs) $2,642 $3,681 $1,922 $2,234 $2,416
Loans past due 90 days or more and still accruing - - - - -
Total non-performing loans 2,642 3,681 1,922 2,234 2,416
Other real estate owned (OREO) 1,088 1,183 1,352 2,048 2,065
Other non-performing assets 1,900 1,900 2,006 2,160 260
Total non-performing assets $5,630 $6,764 $5,280 $6,442 $4,741
Accruing TDRs $9,283 $9,306 $8,775 $4,176 $4,106
For the three months ended
Allowance for loan and lease losses
Beginning balance $8,469 $8,306 $8,419 $8,490 $8,559
Loans charged-off 377 465 297 572 189
Recoveries of charged-off loans 227 207 662 206 354
Net charge-offs (recoveries) 150 258 (365) 366 (165)
Provision (credit) for loan and lease losses 543 421 (478) 295 (234)
Ending balance $8,862 $8,469 $8,306 $8,419 $8,490

Source:FNCB Bancorp, Inc.