FNCB Bancorp, Inc. Announces 2022 Net Income and Results of Operations and Authorization of Stock Repurchase Program

FNCB Bancorp, Inc.

DUNMORE, Pa., Jan. 27, 2023 (GLOBE NEWSWIRE) — FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income for 2022 of $20.4 million, or $1.03 per diluted share, compared to net income of $21.4 million, or $1.06 per diluted share, for 2021. The $1.0 million, or 4.4%, earnings decrease was due primarily to a $4.4 million, or 14.2%, increase in non-interest expense, coupled with a $1.8 million increase in the provision for loan and lease losses. Partially offsetting these negative factors was a $5.0 million, or 10.3%, increase in net interest income. Net income for the fourth quarter of 2022 was $4.9 million, or $0.24 per diluted share, an increase of $1.0 million, or 24.3%, compared to $3.9 million, or $0.20 per diluted share, for the same quarter of 2021. The increase in fourth quarter earnings was largely due to increases in net interest income and non-interest income, partially offset by increases in non-interest expense and the provision for loan and lease losses. 

Return on average assets and return on average shareholders’ equity were 1.21% and 15.55%, respectively, in 2022, compared to 1.36% and 13.46%, respectively in 2021. For the three months ended December 31, 2022, annualized return on average assets and annualized return on average shareholders’ equity were 1.13% and 17.40%, respectively. Comparatively, annualized return on average assets was 0.94% and annualized return on average shareholders’ equity was 9.82% for the three months ended December 31, 2021.

Dividends declared and paid in 2022 totaled $0.33 per share, an increase of $0.06 per share, or 22.2%, compared to $0.27 per share for 2021. Total dividends declared and paid for 2022 equated to a dividend yield of approximately 4.0% based on the closing stock price of $8.21 per share at December 31, 2022.

Stock Repurchase Program

On January 25, 2023, FNCB’s Board of Directors authorized a stock repurchase program under which up to 750,000 shares of FNCB’s outstanding common stock may be acquired in the open market commencing no earlier than March 3, 2023 and expiring December 31, 2023 pursuant to a trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. In 2022 and 2021, the Board of Directors had authorized a similar program under which 384,830 and 330,759 common shares were repurchased, respectively.

The repurchase of shares under the program is administered through an independent broker. Repurchases may occur from time to time at prevailing market prices, through open market transactions depending upon market conditions, and are subject to SEC regulations as well as certain price, market volume and timing constraints specified in the trading plan. Under the program, the purchases will be funded from working capital presently available to FNCB, and the repurchased shares will be returned to the status of authorized but unissued shares of Common Stock. There is not a guarantee as to the exact number of shares that will be repurchased by FNCB, and FNCB may discontinue purchases at any time that management determines additional repurchases are no longer warranted. As of December 31, 2022, FNCB had approximately 19.7 million shares outstanding.

Fourth Quarter and Full Year 2022 Highlights:

  • Fourth quarter diluted earnings per share increased $0.04 per share, or 20.0%, to $0.24 per share in 2022 compared to $0.20 per share for the fourth quarter of 2021. For the full year, diluted earnings per share decreased $0.03 per share, or 2.8%, to $1.03 per share in 2022 from $1.06 per share in 2021;

  • Return on average assets was 1.13% for the fourth quarter of 2022 and 0.94% for the same quarter of 2021. For the full year, return on average assets was 1.21% in 2022 compared to 1.36% in 2021;

  • For the fourth quarter, return on average shareholders’ equity was 17.40% in 2022 from 9.82% in 2021. Return on average shareholders’ equity for all of 2022 improved to 15.55% compared to 13.46% for 2021;

  • Tangible book value decreased $2.09 per share, or 25.6%, to $6.04 per share at December 31, 2022 from $8.13 per share at December 31, 2021;

  • Total risk-based capital and Tier I Leverage ratios (FNCB Bank) were 13.10% and 8.77% at December 31, 2022 compared to 14.64% and 8.92% at December 31, 2021, respectively;

  • The earning asset yield (FTE) for the fourth quarter increased 82 basis points to 4.23% in 2022 from 3.41% in 2021. Year over year, the earning asset yield (FTE) increased 16 basis points to 3.79% in 2022 from 3.63% in 2021;

  • Cost of funds for the fourth quarter of 2022 increased 103 basis points to 1.19% from 0.16% for the fourth quarter of 2021. Year over year, cost of funds increased 30 basis points to 0.55% in 2022 from 0.25% in 2021.

  • The net interest margin (FTE) for the fourth quarter of 2022 increased 3 basis points to 3.32% from 3.29% for the fourth quarter of 2021. Year over year, net interest margin (FTE) decreased 7 basis points to 3.38% in 2022 from 3.45% in 2021;

  • Ratio of non-performing loans to total loans improved to 0.25% at December 31, 2022 compared to 0.39% at December 31, 2021; and

  • The efficiency ratio improved to 59.37% for the fourth quarter of 2022 from 61.75% for the same quarter of 2021.

“FNCB’s strong performance in 2022 speaks to management’s ability to adapt to changing market demands and navigate through inflationary pressures within our industry,” stated Gerard A. Champi, President and Chief Executive Officer. “Earnings in 2022 benefitted from higher levels of net interest income, which reflected strong organic loan growth, new product offerings and our ability to effectively manage funding costs. We are beginning to experience increased competition within our market and remain vigilant as we head into 2023. We believe the strength of our balance sheet and asset quality positions will allow us to execute on our strategic initiatives and successfully face any challenges presented in 2023,” concluded Mr. Champi.

Summary Results 

For the three months ended December 31, 2022, FNCB’s net interest income on a fully tax-equivalent basis increased $0.9 million, or 7.1%, to $14.0 million from $13.1 million for the same three months of 2021, which resulted from an increase in tax-equivalent interest income, partially offset by an increase in interest expense. For the fourth quarter of 2022, tax-equivalent interest income increased $4.3 million, or 31.7%, to $17.8 million from $13.5 million in 2021. The increase in tax-equivalent interest income reflected higher volumes of earning assets, coupled with an increase in the tax-equivalent yield on earning assets. Average earning assets increased $96.5 million, or 6.1%, to $1.686 billion for the three months ended December 31, 2022, from $1.589 billion for the same three months of 2021. Specifically, average total loans and leases increased $163.7 million, or 17.0%, to $1.125 billion for the fourth quarter of 2022 from $961.6 million for the same quarter of 2021, which was largely due to strong organic loan demand and the new commercial equipment financing and leasing product offering. Coupled with the increase in earning asset volumes was an 82-basis point increase in the tax-equivalent yield on earning assets to 4.23% for the fourth quarter of 2022 from 3.41% for the same quarter of 2021, reflecting the rise in market interest rates. Specifically, the tax-equivalent yield on the loan and lease portfolio increased 58 basis points to 4.91% for the fourth quarter of 2022 from 4.33% for the same quarter of 2021, while the tax-equivalent yield on the investment portfolio increased 40 basis points to 2.84% from 2.44% comparing the fourth quarters of 2022 and 2021, respectively. Partially offsetting the increase in tax-equivalent interest income was a $3.4 million increase in interest expense, due primarily to higher volumes of wholesale borrowings, coupled with increases in funding costs. Overall, interest-bearing liabilities averaged $1.284 billion for the fourth quarter of 2022, an increase of $102.7 million or 8.7%, from $1.181 billion for the same quarter of 2021. Specifically, average borrowed funds increased $127.2 million, or 714.1%, to $145.0 million for the three months ended December 31, 2022, from $17.8 million for the same three months ended December 31, 2021, which was entirely due to an increase in the utilization of advances through FHLB of Pittsburgh. The increase in borrowed funds was partially offset by a $24.5 million, or 2.1%, decrease in average interest-bearing deposits, comparing the fourth quarters of 2022 and 2021, respectively. Specifically, interest-bearing demand deposits decreased $42.2 million, or 4.8%, to $831.5 million at December 31, 2022, compared to $873.7 million at December 31, 2021. FNCB’s cost of funds increased 103 basis points to 1.19% for the fourth quarter of 2022 compared to 0.16% for the same quarter of 2021. Deposit costs increased 67 basis points, while the cost of borrowed funds increased 302 basis points, comparing the fourth quarters of 2022 and 2021. The tax-equivalent net interest margin for the fourth quarter of 2022 increased 3 basis points to 3.32% compared to 3.29% for the same quarter of 2021. On a linked quarter basis, tax-equivalent net interest margin contracted 11 basis points from 3.43% for the third quarter of 2022, reflecting the continued increase in funding costs driven by the additional FOMC actions, coupled with escalating industry competition for deposits.

For the year ended December 31, 2022, tax-equivalent net interest income increased $5.2 million, or 10.5%, to $55.1 million compared to $49.9 million for the year ended December 31, 2021, due to an increase in tax-equivalent interest income, partially offset by an increase in interest expense. Similar to the quarterly period, the increase in tax-equivalent interest income reflected higher earning asset volumes and yields, while the increase in interest expense was primarily due to increased utilization of wholesale funding, coupled with higher funding costs. Average earning assets increased $9.3 million, or 12.7%, to $1.633 billion in 2022 from $1.449 billion in 2021. Specifically, average loans and lease volumes increased $6.2 million, or 13.0%, to $1.074 billion in 2022 from $950.5 million in 2021 and investment security volumes increased $3.1 million, or 28.0%, to $550.1 million in 2022 from $429.6 million in 2021. The tax-equivalent yield on average earning assets increased 16 basis points to 3.79% in 2022 from 3.63 % in 2021. Specifically, the tax equivalent yield on the loan and lease portfolio increased 7 basis points, to 4.43% for 2022 from 4.36% for 2021. The $4.0 million, or 148.9%, increase in interest expense resulted primarily from an increase in average borrowed funds, coupled with an increase in funding costs. Borrowed funds averaged $109.5 million for 2022, an increase of $97.3 million from $ 12.2 million at December 31, 2021. Total interest-bearing deposits increased $51.8 million, or 4.9%, to $1.118 billion at December 31, 2022, compared to $1.066 billion at December 31, 2021, which had little impact on interest expense as increases in lower-costing interest-bearing demand and savings volumes were offset by a reduction in higher-costing time deposit volumes. Specifically, interest-bearing demand deposits averaged $815.6 million in 2022, an increase of $50.8 million, or 6.6%, compared to $764.8 million in 2021, and savings deposits averaged $144.3 million in 2022, an increase of $19.3 million, or 15.5%, from $125.0 million in 2021. Meanwhile, average time deposits decreased $18.3 million, or 10.4%, to $158.0 million in 2022 from $176.3 million in 2021. For the year ended December 31, 2022, FNCB’s cost of funds increased 30 basis points to 0.55% from 0.25% for the year ended December 31, 2021. The tax-equivalent net interest margin declined 7 basis points to 3.38% in 2022 from 3.45% in 2021, while the net interest spread declined 14 basis points to 3.24%, from 3.38%, comparing 2022 and 2021, respectively. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for 2022 and 2021.

Non-interest income for the fourth quarter of 2022 was $2.4 million, an increase of $0.5 million, or 23.2%, from $1.9 million for the fourth quarter of 2021. The increase was largely due to income from settlements of $0.5 million, coupled with increases in deposit service charges and net gains on the sale of mortgages held for sale. Partially offsetting these positive factors, were a net loss recorded on the sale of available-for-sale securities and a reduction in net gains on equity securities. Settlement income included $0.3 million related to a BOLI death benefit claim and $0.2 million received from a vendor following a breach of contract. Deposit service charges increased $0.2 million, or 12.4%, to $1.2 million for the three months ended December 31, 2022, compared to $1.0 million for the same three-month period of 2021, which primarily reflected an increase in debit card fees. Net gains on the sale of mortgage loans held for sale were $82 thousand for the fourth quarter of 2022, an increase of $42 thousand, or 105.0%, from $40 thousand for the same quarter of 2021. These increases were partially offset by $0.2 million net loss recognized on the sale of available-for-sale debt securities as part of a portfolio repositioning in the fourth quarter of 2022. There were no gains or losses recognized on the sale of available-for-sale securities in the fourth quarter of 2021. For the quarter ended December 31, 2022, FNCB recorded net gains on equity securities of $87 thousand, a decrease of $58 thousand, or 40.0%, compared to $145 thousand for the same quarter of 2021. For the year ended December 31, 2022, non-interest income decreased $0.3 million, or 3.5%, to $8.0 million from $8.3 million for the year ended December 31, 2021. The year-to-date reduction in non-interest income resulted primarily from an unfavorable change in the market value of equity securities and a net loss on the sale of available-for-sale securities, coupled with reductions in net gains on the sale of mortgage loans held for sale, and loan related fees. Stock market volatility resulted in FNCB recording a net loss on equity securities of $34 thousand in 2022, compared to a net gain of $0.7 million recorded in 2021.  Additionally, FNCB recorded a net loss on the sale of available-for sale debt securities of $0.2 million in 2022 compared to a net gain of $0.2 million in 2021, a decrease of $0.4 million, or 204.7%. Net gain on the sale of mortgage loans held for sale decreased $0.1 million, or 41.8%, to $0.2 million for the year ended December 31, 2022, compared to $0.3 million for the of the year ended December 31, 2021. Additionally, loan-related fees decreased $0.2 million, or 37.7%, to $0.2 million in 2022 from $0.4 million in 2021 and income associated with BOLI death benefit claims decreased $0.1 million, or 35.9%, to $0.3 million from $0.4 million, respectively comparing the years ended December 31, 2022, and 2021. These decreases were partially offset by a $0.5 million, or 13.9%, increase in deposit service charges, resulting primarily from an increase in debit card fee income, a $0.2 million increase in BOLI income and a $0.1 million increase in merchant services revenue comparing 2022 and 2021.

Non-interest expense totaled $9.7 million for the fourth quarter of 2022, an increase of $0.5 million, or 5.4%, from $9.2 million for the fourth quarter of 2021, which primarily reflected increases in salaries and employee benefits and professional fees. Salaries and employee benefits expense increased $0.6 million, or 12.7%, to $5.5 million from $4.9 million comparing the three months ended December 31, 2022, and 2021, which was largely due to higher personnel costs and increases in employee retirement plan contributions and incentive pay. Professional fees for the fourth quarter increased $0.3 million, or 190.7%, to $0.4 million in 2022 from $0.1 million in 2021, which reflected additional costs related to new product offerings, implementation of a retail mortgage point-of-sale platform and various consulting engagements. Partially offsetting these expense increases, was a credit for off-balance sheet commitments of $0.1 million recorded in the fourth quarter of 2022, compared to a $0.2 million provision recorded for the respective quarter of 2021. For the year ended December 31, 2022, non-interest expense totaled $35.5 million, an increase of $4.4 million, or 14.2%, compared to $31.1 million for the year ended December 31, 2021. Similar to the fourth quarter increase, the yearly increase was primarily due to increases in salaries and employee benefits and professional fees. In addition, increases in data processing expenses, regulatory assessments and other operating expenses contributed to the increase in non-interest expense. Salaries and employee benefits increased $2.6 million, or 15.5%, to $19.3 million in 2022, compared to $16.7 million in 2021. Professional fees increased $0.6 million, or 88.9%, to $1.3 million in 2022, compared to $0.7 million in 2021. Meanwhile, data processing expenses increased $0.3 million, or 9.2%, to $4.0 million in 2022, compared to $3.7 million in 2021 primarily due to additional costs associated with the retail mortgage and commercial lending platforms. Additionally, for the year-to-date period, regulatory assessments and other operating expenses increased $0.2 million, or 33.2%, and $0.6 million, or 14.8%, respectively, as compared to 2021. The increase in other expenses was largely due to increases in insurance costs, legal fees, correspondent bank fees and servicing costs of purchased loans.

Asset Quality

FNCB experienced an improvement in asset quality throughout 2022, as exhibited by a decrease in total non-performing loans of $1.0 million, or 26.4%, to $2.8 million, or 0.25% of total loans, at December 31, 2022, from $3.9 million, or 0.39% of total loans, at December 31, 2021. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) improved to 0.44% at December 31, 2022, compared to 0.55% at December 31, 2021. On a linked-quarter basis, non-performing loans increased slightly by $0.1 million, or 4.2%, from $2.7 million at September 30, 2022, while the delinquency rate ticked up one basis point from 0.43% at September 30, 2022. FNCB recorded a provision for loan and lease losses of $2.0 million for 2022, an increase of $1.8 million, compared to a $0.2 million provision in 2021. The elevated amount of credit provisioning in 2022 was directly related to increases in loan and lease volumes. The allowance for loan and lease losses was $14.2 million, or 1.26% of total loans and leases, at December 31, 2022, compared to $12.4 million, or 1.27% of total loans and leases, at December 31, 2021.

Financial Condition

Total assets increased $81.2 million, or 4.9%, to $1.746 billion at December 31, 2022, from $1.664 billion at December 31, 2021.  The strong balance sheet growth reflected substantial increases in loans and leases, net of allowance for loan and lease losses (“ALLL”), partially offset by decreases in cash and cash equivalents and available-for-sale debt securities. Loans, net of ALLL, grew $143.1 million, or 14.8%, to $1.110 billion at December 31, 2022, from $967.0 million at December 31, 2021. Meanwhile, cash and cash equivalents decreased $57.1 million, or 57.8%, to $41.9 million at December 31, 2022, from $99.0 million at December 31, 2021. Available-for-sale debt securities decreased $46.5 million, or 8.9%, to $476.1 million at December 31, 2022, from $522.6 million at December 31, 2021, which was caused largely by a decline in the market value of these securities due to rising interest rates. The return municipal deposit seasonality and outflow of excess COVID-19 deposits was primarily responsible for a $34.8 million, or 2.4%, decrease in total deposits decreased to $1.421 billion at December 31, 2022, from $1.455 billion at December 31, 2021. Interest-bearing deposits decreased $20.1 million, or 1.8%, to $1.115 billion at December 31, 2022, from $1.135 billion at December 31, 2021, while non-interest-bearing deposits decreased $14.2 million, or 4.5%, to $305.9 million at December 31, 2022, from $320.1 million at December 31, 2021.

Total shareholders’ equity decreased $43.5 million, or 26.8%, to $118.9 million at December 31, 2022, from $162.5 million at December 31, 2021. The decrease in capital was primarily due to an accumulated other comprehensive loss of $48.0 million at December 31, 2022, from accumulated other comprehensive income of $6.4 million at December 31, 2021. The negative change of $54.4 million was related primarily to the depreciation in the fair value of FNCB’s available-for-sale debt securities, net of deferred taxes, due to the dramatic increase in market interest rates. Also impacting capital, was net income of $20.4 million, partially offset by $3.6 million utilized for the repurchase of common shares under a stock repurchase program authorized by FNCB’s Board of Directors and $6.5 million in dividends declared and paid in 2022. FNCB Bank was well capitalized with total risk-based capital, and Tier I leverage ratios of 13.10% and 8.77%, respectively, at December 31, 2022, and 14.64% and 8.92%, respectively, at December 31, 2021.

Availability of Filings

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

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank. Locally-based for over 113 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

Forward-looking Statements

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, including statements with respect to new product offerings, 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 and overall financial stability; government and regulatory responses to the COVID-19 pandemic; government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including, but not limited to, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) and the Tax Cuts and Jobs Act; political instability; the ability of FNCB to manage credit risk; weakness in the economic environment, in general, and within 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 most recent annual report on Form 10-K and quarterly reports on Form 10-Q.

 

 

FNCB Bancorp, Inc.

Selected Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 31,

 

 

Sept 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (fully diluted)

 

$

0.24

 

 

$

0.28

 

 

$

0.29

 

 

$

0.22

 

 

$

0.20

 

Cash dividends declared

 

$

0.090

 

 

$

0.090

 

 

$

0.075

 

 

$

0.075

 

 

$

0.075

 

Book value

 

$

6.04

 

 

$

5.67

 

 

$

6.38

 

 

$

7.03

 

 

$

8.13

 

Tangible book value

 

$

6.04

 

 

$

5.67

 

 

$

6.38

 

 

$

7.03

 

 

$

8.13

 

Market value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

 

$

8.70

 

 

$

8.65

 

 

$

10.02

 

 

$

10.15

 

 

$

9.40

 

Low

 

$

7.34

 

 

$

7.49

 

 

$

7.36

 

 

$

8.67

 

 

$

8.21

 

Close

 

$

8.21

 

 

$

7.51

 

 

$

8.00

 

 

$

9.49

 

 

$

9.24

 

Common shares outstanding

 

 

19,681,644

 

 

 

19,680,474

 

 

 

19,675,557

 

 

 

19,683,671

 

 

 

19,989,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

 

1.13

%

 

 

1.26

%

 

 

1.37

%

 

 

1.08

%

 

 

0.94

%

Annualized return on average shareholders’ equity

 

 

17.40

%

 

 

16.95

%

 

 

17.57

%

 

 

11.31

%

 

 

9.82

%

Efficiency ratio

 

 

59.37

%

 

 

54.88

%

 

 

53.35

%

 

 

58.12

%

 

 

61.75

%

Tier I leverage ratio (FNCB Bank)

 

 

8.77

%

 

 

9.38

%

 

 

9.32

%

 

 

9.30

%

 

 

8.92

%

Total risk-based capital to risk-adjusted assets (FNCB Bank)

 

 

13.10

%

 

 

14.16

%

 

 

13.90

%

 

 

14.10

%

 

 

14.64

%

Average shareholders’ equity to average total assets

 

 

6.50

%

 

 

7.44

%

 

 

7.80

%

 

 

9.54

%

 

 

9.61

%

Yield on earning assets (FTE)

 

 

4.23

%

 

 

3.87

%

 

 

3.58

%

 

 

3.45

%

 

 

3.41

%

Cost of funds

 

 

1.19

%

 

 

0.59

%

 

 

0.22

%

 

 

0.14

%

 

 

0.16

%

Net interest spread (FTE)

 

 

3.04

%

 

 

3.28

%

 

 

3.36

%

 

 

3.31

%

 

 

3.25

%

Net interest margin (FTE)

 

 

3.32

%

 

 

3.43

%

 

 

3.42

%

 

 

3.35

%

 

 

3.29

%

Total delinquent loans/total loans

 

 

0.44

%

 

 

0.43

%

 

 

0.39

%

 

 

0.55

%

 

 

0.55

%

Allowance for loan and lease losses/total loans

 

 

1.26

%

 

 

1.24

%

 

 

1.23

%

 

 

1.27

%

 

 

1.27

%

Non-performing loans/total loans

 

 

0.25

%

 

 

0.25

%

 

 

0.26

%

 

 

0.37

%

 

 

0.39

%

Annualized net charge-offs (recoveries)/average loans

 

 

0.09

%

 

 

0.03

%

 

 

(0.07

%)

 

 

0.02

%

 

 

(0.03

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

 

 

 

 

 

Year Ended

 

 

 

December 31,

 

(in thousands, except share data)

 

2022

 

 

2021

 

Interest income

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

47,193

 

 

$

41,049

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

Taxable

 

 

10,281

 

 

 

8,237

 

Tax-exempt

 

 

2,662

 

 

 

2,086

 

Dividends

 

 

549

 

 

 

239

 

Total interest and dividends on securities

 

 

13,492

 

 

 

10,562

 

Interest on interest-bearing deposits in other banks

 

 

91

 

 

 

88

 

Total interest income

 

 

60,776

 

 

 

51,699

 

Interest expense

 

 

 

 

 

 

 

 

Interest on deposits

 

 

3,970

 

 

 

2,508

 

Interest on borrowed funds:

 

 

 

 

 

 

 

 

Federal Reserve Bank Discount Window advances

 

 

3

 

 

 

 

Federal Home Loan Bank of Pittsburgh advances

 

 

2,401

 

 

 

6

 

Junior subordinated debentures

 

 

358

 

 

 

191

 

Total interest on borrowed funds

 

 

2,762

 

 

 

197

 

Total interest expense

 

 

6,732

 

 

 

2,705

 

Net interest income before provision for loan and lease losses

 

 

54,044

 

 

 

48,994

 

Provision for loan and lease losses

 

 

1,962

 

 

 

166

 

Net interest income after provision for loan and lease losses

 

 

52,082

 

 

 

48,828

 

Non-interest income

 

 

 

 

 

 

 

 

Deposit service charges

 

 

4,415

 

 

 

3,877

 

Net (loss) gain on the sale of available-for-sale securities

 

 

(223

)

 

 

213

 

Net (loss) gain on equity securities

 

 

(34

)

 

 

701

 

Net gain on the sale of mortgage loans held for sale

 

 

205

 

 

 

352

 

Loan-related fees

 

 

243

 

 

 

390

 

Income from bank-owned life insurance

 

 

710

 

 

 

541

 

Bank-owned life insurance settlement

 

 

273

 

 

 

426

 

Merchant services revenue

 

 

712

 

 

 

593

 

Other

 

 

1,680

 

 

 

1,175

 

Total non-interest income

 

 

7,981

 

 

 

8,268

 

Non-interest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

19,283

 

 

 

16,697

 

Occupancy expense

 

 

2,093

 

 

 

2,039

 

Equipment expense

 

 

1,295

 

 

 

1,338

 

Advertising expense

 

 

801

 

 

 

712

 

Data processing expense

 

 

4,027

 

 

 

3,689

 

Regulatory assessments

 

 

811

 

 

 

609

 

Bank shares tax

 

 

915

 

 

 

975

 

Professional fees

 

 

1,273

 

 

 

674

 

Other operating expenses

 

 

4,976

 

 

 

4,336

 

Total non-interest expense

 

 

35,474

 

 

 

31,069

 

Income before income taxes

 

 

24,589

 

 

 

26,027

 

Income tax expense

 

 

4,144

 

 

 

4,656

 

Net income

 

$

20,445

 

 

$

21,371

 

 

 

 

 

 

 

 

 

 

Income per share

 

 

 

 

 

 

 

 

Basic

 

$

1.04

 

 

$

1.06

 

Diluted

 

$

1.03

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.33

 

 

$

0.27

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

19,744,477

 

 

 

20,111,430

 

Diluted

 

 

19,762,566

 

 

 

20,126,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

 

 

Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

(in thousands, except share data)

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

13,721

 

 

$

12,270

 

 

$

11,100

 

 

$

10,102

 

 

$

10,325

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

2,856

 

 

 

2,633

 

 

 

2,402

 

 

 

2,390

 

 

 

2,281

 

Tax-exempt

 

 

701

 

 

 

691

 

 

 

658

 

 

 

612

 

 

 

567

 

Dividends

 

 

196

 

 

 

163

 

 

 

112

 

 

 

78

 

 

 

63

 

Total interest and dividends on securities

 

 

3,753

 

 

 

3,487

 

 

 

3,172

 

 

 

3,080

 

 

 

2,911

 

Interest on interest-bearing deposits in other banks

 

 

57

 

 

 

19

 

 

 

8

 

 

 

7

 

 

 

53

 

Total interest income

 

 

17,531

 

 

 

15,776

 

 

 

14,280

 

 

 

13,189

 

 

 

13,289

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

2,299

 

 

 

1,001

 

 

 

346

 

 

 

324

 

 

 

410

 

Interest on borrowed funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Reserve Bank Discount Window advances

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank of Pittsburgh advances

 

 

1,392

 

 

 

736

 

 

 

242

 

 

 

31

 

 

 

6

 

Junior subordinated debentures

 

 

138

 

 

 

99

 

 

 

70

 

 

 

51

 

 

 

48

 

Total interest on borrowed funds

 

 

1,533

 

 

 

835

 

 

 

312

 

 

 

82

 

 

 

54

 

Total interest expense

 

 

3,832

 

 

 

1,836

 

 

 

658

 

 

 

406

 

 

 

464

 

Net interest income before provision for loan and lease losses

 

 

13,699

 

 

 

13,940

 

 

 

13,622

 

 

 

12,783

 

 

 

12,825

 

Provision for loan and lease losses

 

 

628

 

 

 

513

 

 

 

62

 

 

 

759

 

 

 

338

 

Net interest income after provision for loan and lease losses

 

 

13,071

 

 

 

13,427

 

 

 

13,560

 

 

 

12,024

 

 

 

12,487

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

 

1,167

 

 

 

1,133

 

 

 

1,065

 

 

 

1,050

 

 

 

1,038

 

Net (loss) gain on the sale of available-for-sale securities

 

 

(188

)

 

 

 

 

 

(35

)

 

 

 

 

 

 

Net gain (loss) on equity securities

 

 

87

 

 

 

86

 

 

 

(82

)

 

 

(125

)

 

 

145

 

Net gain on the sale of mortgage loans held for sale

 

 

82

 

 

 

91

 

 

 

32

 

 

 

 

 

 

40

 

Loan-related fees

 

 

82

 

 

 

54

 

 

 

50

 

 

 

57

 

 

 

76

 

Income from bank-owned life insurance

 

 

168

 

 

 

200

 

 

 

197

 

 

 

145

 

 

 

139

 

Bank-owned life insurance settlement

 

 

273

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchant services revenue

 

 

168

 

 

 

173

 

 

 

172

 

 

 

199

 

 

 

140

 

Other

 

 

554

 

 

 

404

 

 

 

258

 

 

 

464

 

 

 

365

 

Total non-interest income

 

 

2,393

 

 

 

2,141

 

 

 

1,657

 

 

 

1,790

 

 

 

1,943

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,525

 

 

 

4,581

 

 

 

4,519

 

 

 

4,658

 

 

 

4,901

 

Occupancy expense

 

 

581

 

 

 

517

 

 

 

447

 

 

 

548

 

 

 

549

 

Equipment expense

 

 

341

 

 

 

314

 

 

 

316

 

 

 

324

 

 

 

333

 

Advertising expense

 

 

240

 

 

 

202

 

 

 

227

 

 

 

132

 

 

 

221

 

Data processing expense

 

 

981

 

 

 

974

 

 

 

1,009

 

 

 

1,063

 

 

 

1,024

 

Regulatory assessments

 

 

160

 

 

 

230

 

 

 

196

 

 

 

225

 

 

 

149

 

Bank shares tax

 

 

(176

)

 

 

375

 

 

 

375

 

 

 

341

 

 

 

(34

)

Professional fees

 

 

436

 

 

 

297

 

 

 

213

 

 

 

327

 

 

 

150

 

Insurance expense

 

 

182

 

 

 

167

 

 

 

155

 

 

 

154

 

 

 

156

 

Other operating expenses

 

 

1,396

 

 

 

1,375

 

 

 

775

 

 

 

772

 

 

 

1,723

 

Total non-interest expense

 

 

9,666

 

 

 

9,032

 

 

 

8,232

 

 

 

8,544

 

 

 

9,172

 

Income before income taxes

 

 

5,798

 

 

 

6,536

 

 

 

6,985

 

 

 

5,270

 

 

 

5,258

 

Income tax expense

 

 

879

 

 

 

1,101

 

 

 

1,247

 

 

 

917

 

 

 

1,300

 

Net income

 

$

4,919

 

 

$

5,435

 

 

$

5,738

 

 

$

4,353

 

 

$

3,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.25

 

 

$

0.28

 

 

$

0.29

 

 

$

0.22

 

 

$

0.20

 

Diluted

 

$

0.24

 

 

$

0.28

 

 

$

0.29

 

 

$

0.22

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.090

 

 

$

0.090

 

 

$

0.075

 

 

$

0.075

 

 

$

0.075

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

19,681,437

 

 

 

19,687,766

 

 

 

19,677,109

 

 

 

19,935,288

 

 

 

19,988,272

 

Diluted

 

 

19,690,676

 

 

 

19,697,047

 

 

 

19,694,125

 

 

 

19,972,113

 

 

 

20,015,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNCB Bancorp, Inc.

Consolidated Balance Sheets

 

 

 

Dec 31,

 

 

Sept 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

(in thousands)

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

26,588

 

 

$

29,231

 

 

$

23,355

 

 

$

19,383

 

 

$

16,651

 

Interest-bearing deposits in other banks

 

 

15,328

 

 

 

4,896

 

 

 

4,037

 

 

 

4,719

 

 

 

82,369

 

Total cash and cash equivalents

 

 

41,916

 

 

 

34,127

 

 

 

27,392

 

 

 

24,102

 

 

 

99,020

 

Available-for-sale debt securities, at fair value

 

 

476,091

 

 

 

472,451

 

 

 

495,604

 

 

 

514,133

 

 

 

522,566

 

Equity securities, at fair value

 

 

7,717

 

 

 

5,496

 

 

 

5,307

 

 

 

5,018

 

 

 

4,922

 

Restricted stock, at cost

 

 

8,545

 

 

 

4,838

 

 

 

5,787

 

 

 

4,020

 

 

 

1,911

 

Loans held for sale

 

 

60

 

 

 

248

 

 

 

667

 

 

 

 

 

 

 

Loans, net of net deferred costs and unearned income

 

 

1,124,317

 

 

 

1,111,230

 

 

 

1,088,748

 

 

 

1,036,400

 

 

 

979,439

 

Allowance for loan and lease losses

 

 

(14,193

)

 

 

(13,819

)

 

 

(13,381

)

 

 

(13,129

)

 

 

(12,416

)

Net loans

 

 

1,110,124

 

 

 

1,097,411

 

 

 

1,075,367

 

 

 

1,023,271

 

 

 

967,023

 

Bank premises and equipment, net

 

 

15,616

 

 

 

15,526

 

 

 

15,619

 

 

 

15,895

 

 

 

16,082

 

Accrued interest receivable

 

 

5,957

 

 

 

5,629

 

 

 

5,103

 

 

 

4,870

 

 

 

4,643

 

Bank-owned life insurance

 

 

36,499

 

 

 

37,036

 

 

 

36,836

 

 

 

36,639

 

 

 

33,494

 

Other assets

 

 

43,005

 

 

 

31,754

 

 

 

25,403

 

 

 

21,602

 

 

 

14,662

 

Total assets

 

$

1,745,530

 

 

$

1,704,516

 

 

$

1,693,085

 

 

$

1,649,550

 

 

$

1,664,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand (non-interest-bearing)

 

$

305,850

 

 

$

320,879

 

 

$

317,725

 

 

$

317,541

 

 

$

320,089

 

Interest-bearing

 

 

1,114,797

 

 

 

1,181,747

 

 

 

1,109,219

 

 

 

1,094,052

 

 

 

1,134,939

 

Total deposits

 

 

1,420,647

 

 

 

1,502,626

 

 

 

1,426,944

 

 

 

1,411,593

 

 

 

1,455,028

 

Borrowed funds

 

 

182,360

 

 

 

76,010

 

 

 

128,360

 

 

 

87,260

 

 

 

30,310

 

Accrued interest payable

 

 

171

 

 

 

101

 

 

 

85

 

 

 

57

 

 

 

49

 

Other liabilities

 

 

23,403

 

 

 

14,187

 

 

 

12,184

 

 

 

12,251

 

 

 

16,479

 

Total liabilities

 

 

1,626,581

 

 

 

1,592,924

 

 

 

1,567,573

 

 

 

1,511,161

 

 

 

1,501,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

24,602

 

 

 

24,600

 

 

 

24,594

 

 

 

24,604

 

 

 

24,987

 

Additional paid-in capital

 

 

77,502

 

 

 

77,381

 

 

 

77,233

 

 

 

77,642

 

 

 

80,128

 

Retained earnings

 

 

64,873

 

 

 

61,737

 

 

 

58,085

 

 

 

53,834

 

 

 

50,990

 

Accumulated other comprehensive (loss) income

 

 

(48,028

)

 

 

(52,126

)

 

 

(34,400

)

 

 

(17,691

)

 

 

6,352

 

Total shareholders’ equity

 

 

118,949

 

 

 

111,592

 

 

 

125,512

 

 

 

138,389

 

 

 

162,457

 

Total liabilities and shareholders’ equity

 

$

1,745,530

 

 

$

1,704,516

 

 

$

1,693,085

 

 

$

1,649,550

 

 

$

1,664,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

 

 

Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

(dollars in thousands)

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases – taxable

 

$

13,328

 

 

$

11,870

 

 

$

10,743

 

 

$

9,755

 

 

$

9,983

 

Loans and leases – tax-free

 

 

498

 

 

 

506

 

 

 

452

 

 

 

439

 

 

 

433

 

Total loans

 

 

13,826

 

 

 

12,376

 

 

 

11,195

 

 

 

10,194

 

 

 

10,416

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities, taxable

 

 

3,052

 

 

 

2,796

 

 

 

2,514

 

 

 

2,468

 

 

 

2,344

 

Securities, tax-free

 

 

888

 

 

 

875

 

 

 

833

 

 

 

775

 

 

 

719

 

Total interest and dividends on securities

 

 

3,940

 

 

 

3,671

 

 

 

3,347

 

 

 

3,243

 

 

 

3,063

 

Interest-bearing deposits in other banks

 

 

57

 

 

 

19

 

 

 

8

 

 

 

7

 

 

 

53

 

Total interest income

 

 

17,823

 

 

 

16,066

 

 

 

14,550

 

 

 

13,444

 

 

 

13,532

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,299

 

 

 

1,001

 

 

 

346

 

 

 

324

 

 

 

410

 

Borrowed funds

 

 

1,533

 

 

 

835

 

 

 

312

 

 

 

82

 

 

 

54

 

Total interest expense

 

 

3,832

 

 

 

1,836

 

 

 

658

 

 

 

406

 

 

 

464

 

Net interest income

 

$

13,991

 

 

$

14,230

 

 

$

13,892

 

 

$

13,038

 

 

$

13,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases – taxable

 

$

1,069,260

 

 

$

1,045,474

 

 

$

1,013,899

 

 

$

946,201

 

 

$

915,693

 

Loans and leases – tax-free

 

 

56,064

 

 

 

57,099

 

 

 

53,471

 

 

 

54,096

 

 

 

45,920

 

Total loans and leases

 

 

1,125,324

 

 

 

1,102,573

 

 

 

1,067,370

 

 

 

1,000,297

 

 

 

961,613

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities, taxable

 

 

439,998

 

 

 

438,339

 

 

 

442,998

 

 

 

437,955

 

 

 

409,210

 

Securities, tax-free

 

 

114,128

 

 

 

113,629

 

 

 

109,948

 

 

 

103,086

 

 

 

92,685

 

Total securities

 

 

554,126

 

 

 

551,968

 

 

 

552,946

 

 

 

541,041

 

 

 

501,895

 

Interest-bearing deposits in other banks

 

 

6,185

 

 

 

4,634

 

 

 

4,488

 

 

 

17,464

 

 

 

125,609

 

Total interest-earning assets

 

 

1,685,635

 

 

 

1,659,175

 

 

 

1,624,804

 

 

 

1,558,802

 

 

 

1,589,117

 

Non-earning assets

 

 

39,355

 

 

 

51,847

 

 

 

55,303

 

 

 

78,394

 

 

 

91,968

 

Total assets

 

$

1,724,990

 

 

$

1,711,022

 

 

$

1,680,107

 

 

$

1,637,196

 

 

$

1,681,085

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,138,817

 

 

$

1,118,909

 

 

$

1,101,947

 

 

$

1,111,671

 

 

$

1,163,920

 

Borrowed funds

 

 

144,995

 

 

 

130,481

 

 

 

113,932

 

 

 

47,346

 

 

 

17,810

 

Total interest-bearing liabilities

 

 

1,283,812

 

 

 

1,249,390

 

 

 

1,215,879

 

 

 

1,159,017

 

 

 

1,181,100

 

Demand deposits

 

 

309,372

 

 

 

318,656

 

 

 

319,505

 

 

 

308,830

 

 

 

322,536

 

Other liabilities

 

 

19,659

 

 

 

15,742

 

 

 

13,730

 

 

 

13,234

 

 

 

15,846

 

Shareholders’ equity

 

 

112,147

 

 

 

127,234

 

 

 

130,993

 

 

 

156,115

 

 

 

161,603

 

Total liabilities and shareholders’ equity

 

$

1,724,990

 

 

$

1,711,022

 

 

$

1,680,107

 

 

$

1,637,196

 

 

$

1,681,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield/Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases – taxable

 

 

4.99

%

 

 

4.54

%

 

 

4.24

%

 

 

4.12

%

 

 

4.36

%

Interest and fees on loans and leases – tax-free

 

 

3.56

%

 

 

3.54

%

 

 

3.38

%

 

 

3.25

%

 

 

3.77

%

Total loans

 

 

4.91

%

 

 

4.49

%

 

 

4.20

%

 

 

4.08

%

 

 

4.33

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities, taxable

 

 

2.77

%

 

 

2.55

%

 

 

2.27

%

 

 

2.25

%

 

 

2.29

%

Securities, tax-free

 

 

3.11

%

 

 

3.08

%

 

 

3.03

%

 

 

3.01

%

 

 

3.10

%

Total securities

 

 

2.84

%

 

 

2.66

%

 

 

2.42

%

 

 

2.40

%

 

 

2.44

%

Interest-bearing deposits in other banks

 

 

3.69

%

 

 

1.64

%

 

 

0.71

%

 

 

0.16

%

 

 

0.17

%

Total earning assets

 

 

4.23

%

 

 

3.87

%

 

 

3.58

%

 

 

3.45

%

 

 

3.41

%

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

0.81

%

 

 

0.36

%

 

 

0.13

%

 

 

0.12

%

 

 

0.14

%

Interest on borrowed funds

 

 

4.23

%

 

 

2.56

%

 

 

1.10

%

 

 

0.69

%

 

 

1.21

%

Total interest-bearing liabilities

 

 

1.19

%

 

 

0.59

%

 

 

0.22

%

 

 

0.14

%

 

 

0.16

%

Net interest spread

 

 

3.04

%

 

 

3.28

%

 

 

3.36

%

 

 

3.31

%

 

 

3.25

%

Net interest margin

 

 

3.32

%

 

 

3.43

%

 

 

3.42

%

 

 

3.35

%

 

 

3.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNCB Bancorp, Inc.

Asset Quality Data

 

 

 

Dec 31,

 

 

Sept 30,

 

 

Jun 30,

 

 

Mar 31,

 

 

Dec 31,

 

(in thousands)

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

At period end

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)

 

$

2,763

 

 

$

2,654

 

 

$

2,764

 

 

$

3,864

 

 

$

3,863

 

Loans past due 90 days or more and still accruing

 

 

78

 

 

 

74

 

 

 

14

 

 

 

 

 

 

 

Total non-performing loans and leases

 

 

2,841

 

 

 

2,728

 

 

 

2,778

 

 

 

3,864

 

 

 

3,863

 

Other real estate owned (OREO)

 

 

 

 

 

228

 

 

 

228

 

 

 

228

 

 

 

920

 

Other non-performing assets

 

 

1,773

 

 

 

1,773

 

 

 

1,773

 

 

 

1,773

 

 

 

1,773

 

Total non-performing assets

 

$

4,614

 

 

$

4,729

 

 

$

4,779

 

 

$

5,865

 

 

$

6,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing TDRs

 

$

5,554

 

 

$

6,201

 

 

$

6,329

 

 

$

6,455

 

 

$

6,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,819

 

 

$

13,381

 

 

$

13,129

 

 

$

12,416

 

 

$

12,018

 

Loans and leases charged-off

 

 

497

 

 

 

411

 

 

 

303

 

 

 

95

 

 

 

34

 

Recoveries of charged-off loans and leases

 

 

243

 

 

 

336

 

 

 

493

 

 

 

49

 

 

 

94

 

Net charge-offs (recoveries)

 

 

254

 

 

 

75

 

 

 

(190

)

 

 

46

 

 

 

(60

)

Provision for loan and lease losses

 

 

628

 

 

 

513

 

 

 

62

 

 

 

759

 

 

 

338

 

Ending balance

 

$

14,193

 

 

$

13,819

 

 

$

13,381

 

 

$

13,129

 

 

$

12,416

 

Source

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