Attached files
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| 8-K - FORM 8-K (2009 EARNINGS) - FNCB Bancorp, Inc. | form8k2009earnings.htm |
FNCB
RELEASES 2009 RESULTS
First National Community Bancorp, Inc.,
the parent company of Dunmore based First National Community Bank, reported a
net loss for the year of 2009 totaling $11.3 million. The deterioration in
general economic conditions and declining real estate values severely impacted
borrowers’ ability to make scheduled payments on their loans, resulting in the
company allocating almost $32 million of earnings to replenish the reserve for
credit losses and to strengthen its ability to absorb future
losses. Also contributing to the 2009 results were credit losses
incurred on investment securities totaling $6.2 million, and a $5.4 million
increase in operating expenses which includes a $2 million increase in FDIC
insurance premiums. Net interest income before the provision for
credit loss decreased 2% from the 2008 total due to a decrease in loans
outstanding.
During 2009, the company was successful
in raising over $23 million of new capital through a subordinated debt
offering. At year-end, the Bank’s risk-based capital ratios exceeded
the current “well-capitalized” regulatory requirements with a Total Risk Based
Capital ratio of 11.82%, a Tier I Capital ratio of 10.56%, and a Tier I Leverage
ratio of 9.09%.
Total assets increased $82 million
during 2009 due to significant growth in deposits, while net loans decreased $29
million as the company tightened credit standards in order to maintain required
capital levels. Cash dividends were reduced from 46 cents per share
to 17 cents per share to conserve capital and maintain regulatory
requirements.
FNCB currently operates from twenty-one
community offices located throughout the Lackawanna, Luzerne, Wayne, and Monroe
County markets. The company’s newest office, located on Wheeler
Avenue in Dunmore, opened in December 2009.
This
press release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Actual results and trends could differ
materially from those set forth in such statements due to various risks,
uncertainties and other factors. Such risks, uncertainties and other
factors that could cause actual results and experience to differ include, but
are not limited to, the following: the strategic initiatives and business plans
may not be satisfactorily completed or executed, if at all; increased demand or
prices for the Corporation’s financial services and products may not occur;
changing economic and competitive conditions; technological developments; the
effectiveness of the Corporation’s business strategy due to changes in current
or future market conditions; effects of deterioration of economic conditions on
customers specifically the effect on
loan customers to repay loans; inability
of the Corporation to raise or achieve desired or required levels of capital;
the effects of competition, and of changes in laws and regulations, including
industry consolidation and development of competing financial products and
services; interest rate movements; relationships with customers and employees;
challenges in establishing and maintaining operations; volatilities in the
securities markets; and deteriorating economic conditions and other risks and
uncertainties, including those detailed in the Corporation’s filings with the
Securities and Exchange Commission.