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8-K - FORM 8-K - FNCB Bancorp, Inc.fncb20160729_8k.htm

EXHIBIT 99.1

 

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

First National Community Bancorp, Inc. Reports

Second Quarter 2016 Net Income

 

 

Dunmore, Pa., July 29, 2016/Globe Newswire/—First National Community Bancorp, Inc. (OTCQX: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), announced net income for the three months ended June 30, 2016 was $1.6 million, or $0.10 per basic and diluted share. Net income for the comparable period of 2015 was $0.8 million, or $0.05 per basic and diluted share. The $0.8 million, or 98.4%, improvement in second quarter earnings reflected increases in net interest income and non-interest income, partially offset by higher provisions for loan and lease losses, income taxes and an increase in non-interest expense. Net income for the six months ended June 30, 2016 was $2.8 million, or $0.17 per basic and diluted share, compared to net income of $4.3 million, or $0.26 per basic and diluted share, for the same period of 2015. Annualized return on average assets was 0.60% and 0.51%, respectively, for the three and six months ended June 30, 2016, compared to 0.34% and 0.89%, for the respective periods of 2015. Annualized return on average equity was 7.12% and 6.15%, respectively, for the three- and six-month periods ended June 30, 2016, compared to 5.89% and 15.84%, respectively, for the comparable periods in 2015. FNCB paid holders of its common stock dividends of $0.02 for the second quarter of 2016, totaling $0.04 per share for the year-to-date period of 2016. FNCB did not pay a dividend during the first six months of 2015.

 

Effective June 30, 2016, the Bank, formerly known as First National Community Bank, completed a charter conversion from a national bank to a Pennsylvania state bank. The conversion followed receipt of required regulatory approvals from the Pennsylvania Department of Banking and Securities. Effective with the conversion, the Bank changed its legal name to FNCB Bank.

 

Performance Highlights:

 

 

Reinstated dividend reinvestment and stock purchase plan;

 

Year over year growth in net interest income of $2.5 million, or 20.2%;

 

29 basis point improvement in tax-equivalent net interest margin comparing the second quarters of 2016 and 2015; and

 

23.3% decrease in non-performing loans from prior quarter end; 52.4% decrease from one year ago.

 

“During the second quarter we were able to create meaningful value for our shareholders by reinstituting the dividend reinvestment and stock purchase plan,” stated Gerard A. Champi, President and Chief Executive Officer. “Through the plan, shareholders once again have the ability to increase their investment in FNCB at a discounted price,” mentioned Champi. “I am also happy to say that, during the second quarter, the Bank successfully completed a charter conversion from a national bank to a Pennsylvania state bank. In addition to reducing our annual regulatory assessment costs, becoming a state-chartered institution provides FNCB with greater flexibility to execute strategies for long-term growth and increase bank profitability going forward. The conversion was a seamless transition and had no change in FDIC deposit insurance coverage for our customers. We are committed to and will continue to offer and deliver the same high level products and quality services our customers are accustomed to receiving,” concluded Champi.

 

 
 

 

 

Summary Results for the Three and Six Months Ended June 30, 2016

 

Net interest income before provision (credit) for loan and lease losses was $7.6 million for the second quarter, and $15.2 million for the six months ended June 30, 2016 compared to $6.3 million and $12.6 million for the same periods in 2015. The improvement for both the quarter and year-to-date periods primarily reflected significant growth in earning assets, higher earning asset yields and reduced funding costs. Average earning assets grew $83.0 million, or 9.1%, and $83.9 million, or 9.2%, comparing the quarter and year-to-date periods ended June 30, 2016 and 2015, respectively. Tax-equivalent earning asset yields improved 11 basis points for the second quarter and 7 basis points for the six months ended June 30, 2016 over the same periods of 2015. Comparing the three months and six months ended June 30, 2016 and 2015, FNCB’s cost of funds decreased 23 basis points and 25 basis points, respectively. Causing the greatest impact in funding costs was a decrease in the cost of borrowed funds, which resulted from a modification of the interest rate on FNCB’s subordinated notes from 9.00% to 4.50% in mid-2015. The tax-equivalent net interest margin for second quarter 2016 was 3.14%, a 3 basis point improvement from the first quarter of 2016, and 29 basis points higher than the same prior year period.

 

Non-interest income totaled $2.1 million for the three months ended June 30, 2016, compared to $1.5 million for the comparable period of 2015. The $0.6 million, or 35.5%, increase primarily reflected an increase in net gains on the sale of securities of $0.8 million, partially offset by a reduction due to a legal settlement of $0.2 million received in the second quarter of 2015. For the six months ended June 30, 2016, non-interest income totaled $3.4 million, a decrease of $1.6 million, or 31.0%, compared to $5.0 million for the same six months of 2015. The change resulted primarily from decreases in net gains on the sale of securities, legal settlements and other income of $1.3 million, $0.2 million and $0.1 million, respectively.

 

For the three months ended June 30, 2016, non-interest expense totaled $7.0 million, an increase of $0.3 million, or 5.2%, from $6.7 million for the same three months of 2015. The increase in 2016 was due primarily to higher salaries and benefits expense of $0.4 million, which resulted from additions to staff and increases in health insurance costs. Also affecting non-interest expense were increases in regulatory assessments, expense of other real estate owned and Bank shares tax. Expenses of other real estate owned included a valuation adjustment of $0.1 million on a Bank property that was previously held for expansion. These increases were partially mitigated by decreases in occupancy expense and insurance expense. On a year-to-date basis, non-interest expense increased $0.3 million, or 2.7%, to $13.8 million in 2016 from $13.5 million in 2015. The increase in the first half of 2016 as compared to the same period of 2015 was due primarily to increases in salaries and benefits expenses of $0.8 million and data processing expense of $0.1 million. These increases were partially offset by lower occupancy expense, regulatory assessments, and insurance expense.

 

 
 

 

 

Asset Quality

 

Total non-performing loans were $2.7 million at June 30, 2016, a decrease of $0.8 million, or 23.3%, from $3.6 million at March 31, 2016, and $1.0 million, or 27.7%, from December 31, 2015. The ratio of non-performing loans to total loans was 0.37% at June 30, 2016 compared to 0.49% at March 31, 2016 and 0.52% at December 31, 2015. (At March 31, 2016, the most recent data available, the FDIC average for commercial banks with assets between $1.0 billion and $3.0 billion was 0.81%.) The allowance for loan and lease losses as a percentage of gross loans was 1.17% at June 30, 2016, 1.19% at March 31, 2016 and 1.21% at the end of 2015. (The above described FDIC peer group average was 1.25% at March 31, 2016.)

 

Financial Condition

 

Total assets were relatively stable, decreasing $3.1 million, or 0.3%, to $1.088 billion at June 30, 2016 from $1.091 billion at December 31, 2015. The change in total assets primarily reflected an $8.4 million, or 3.3%, increase in available-for-sale securities, which was more than offset by reductions of $4.5 million in net deferred tax assets, $1.1 million in FHLB of Pittsburgh stock, $1.5 million in OREO and $3.4 million in cash and cash equivalents. Total deposits grew $14.3 million, or 1.7%, to $835.8 million at June 30, 2016 from $821.5 million at December 31, 2015. The deposit growth was used to repay $15.0 million in advances from the FHLB of Pittsburgh. In addition, on March 1, 2016, FNCB repaid in its entirety $10.8 million in accrued interest that it had previously been deferring on the subordinated debentures (“Notes”) for the period September 1, 2010 through May 31, 2015.

 

Total shareholders’ equity increased $9.3 million, or 10.8%, to $95.5 million at June 30, 2016 from $86.2 million at December 31, 2015. The capital improvement resulted primarily from a $7.0 million increase in accumulated other comprehensive income, which resulted from appreciation in the fair value of available-for-sale securities net of the tax impact of the appreciation, coupled with net income for the first six months of 2016 of $2.8 million.


At June 30, 2016, the Company’s total risk-based capital and Tier I leverage ratios were 12.00% and 7.31%, respectively. The respective ratios for the Bank at June 30, 2016 were 12.97% and 8.82%. The ratios well exceeded the 10.00% and 5.00% required to be well capitalized under the prompt corrective action provisions of the Basel III capital framework for U.S. banking organizations.

 

Availability of Filings

 

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Report on form 10-Q will be provided upon request from: Shareholder Relations, First National Community Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. All of FNCB’s filings with the Securities and Exchange Commission are also available on the Investor Relations page of FNCB’s website, www.fncb.com/investorrelations.

 

About FNCB Bank:

First National Community Bancorp, Inc. is the bank holding company of FNCB Bank, which provides personal, small business and commercial banking services to individuals and businesses throughout Lackawanna, Luzerne, and Wayne Counties in Northeastern Pennsylvania. 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 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 and fiscal 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 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, 2015.

 

 

[The Company provides tabular information as follows]

 

 
 

 

 

First National Community Bancorp, Inc.

Selected Financial Data

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 
   

2016

   

2016

   

2015

   

2015

   

2015

 

Per share data:

                                       

Net income (fully diluted)

  $ 0.10     $ 0.07     $ 1.77     $ 0.14     $ 0.05  

Cash dividends declared

  $ 0.02     $ 0.02     $ -     $ -     $ -  

Book value

  $ 5.76     $ 5.57     $ 5.22     $ 3.61     $ 3.33  

Tangible book value

  $ 5.75     $ 5.56     $ 5.21     $ 3.60     $ 3.31  

Market value:

                                       

High

  $ 6.12     $ 6.90     $ 5.50     $ 6.05     $ 6.55  

Low

  $ 5.50     $ 5.11     $ 5.06     $ 5.02     $ 5.15  

Close

  $ 5.60     $ 6.12     $ 5.25     $ 5.19     $ 6.05  

Common shares outstanding

    16,586,868       16,530,432       16,514,245       16,500,945       16,500,945  
                                         

Selected ratios:

                                       

Annualized return on average assets

    0.60 %     0.42 %     10.99 %     0.91 %     0.34 %

Annualized return on average shareholders' equity

    7.12 %     5.15 %     192.68 %     16.38 %     5.89 %

Tier I leverage ratio

    7.31 %     7.08 %     7.27 %     6.57 %     6.64 %

Total risk-based capital to risk-adjusted assets

    12.00 %     11.81 %     11.79 %     11.20 %     11.60 %

Average shareholders' equity to average total assets

    8.40 %     8.15 %     5.70 %     5.55 %     5.73 %

Yield on earning assets (FTE)

    3.56 %     3.52 %     3.56 %     3.50 %     3.45 %

Cost of funds

    0.50 %     0.48 %     0.48 %     0.51 %     0.73 %

Net interest spread (FTE)

    3.06 %     3.04 %     3.08 %     2.98 %     2.72 %

Net interest margin (FTE)

    3.14 %     3.11 %     3.15 %     3.07 %     2.85 %

Total delinquent loans/total loans

    0.74 %     0.82 %     0.84 %     1.29 %     1.34 %

Allowance for loan and lease losses/total loans

    1.17 %     1.19 %     1.20 %     1.36 %     1.51 %

Non-performing loans/total loans

    0.37 %     0.49 %     0.52 %     0.93 %     0.84 %

Annualized net charge-offs/average loans

    0.26 %     0.47 %     0.02 %     0.04 %     0.14 %

 

 
 

 

 

First National Community Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

 

   

Six Months Ended

 
   

June 30,

 

(in thousands, except share data)

 

2016

   

2015

 

Interest income

               

Interest and fees on loans

  $ 14,001     $ 12,947  

Interest and dividends on securities

               

U.S. government agencies

    1,830       1,983  

State and political subdivisions, tax-free

    21       72  

State and political subdivisions, taxable

    1,159       123  

Other securities

    190       239  

Total interest and dividends on securities

    3,200       2,417  

Interest on interest-bearing deposits in other banks

    6       32  

Total interest income

    17,207       15,396  

Interest expense

               

Interest on deposits

    1,305       1,326  

Interest on borrowed funds

               

Interest on Federal Home Loan Bank of Pittsburgh advances

    315       239  

Interest on subordinated debentures

    318       1,128  

Interest on junior subordinated debentures

    118       100  

Total interest on borrowed funds

    751       1,467  

Total interest expense

    2,056       2,793  

Net interest income before provision (credit) for loan and lease losses

    15,151       12,603  

Provision (credit) for loan and lease losses

    1,092       (149 )

Net interest income after provision (credit) for loan and lease losses

    14,059       12,752  

Non-interest income

               

Deposit service charges

    1,418       1,419  

Net gain on the sale of securities

    960       2,298  

Net gain on the sale of mortgage loans held for sale

    139       56  

Net (loss) gain on the sale of other real estate owned

    (3 )     16  

Loan-related fees

    202       196  

Income from bank-owned life insurance

    289       270  

Other

    420       709  

Total non-interest income

    3,425       4,964  

Non-interest expense

               

Salaries and employee benefits

    7,103       6,342  

Occupancy expense

    822       1,165  

Equipment expense

    848       826  

Data processing expense

    1,017       949  

Regulatory assessments

    430       508  

Bank shares tax

    493       435  

Expense of other real estate owned

    240       247  

Legal expense

    206       251  

Professional fees

    559       587  

Insurance expense

    253       400  

Other operating expenses

    1,858       1,752  

Total non-interest expense

    13,829       13,462  

Income before income taxes

    3,655       4,254  

Income tax expense (benefit)

    887       (40 )

Net income

  $ 2,768     $ 4,294  
                 

Income per share

               

Basic

  $ 0.17     $ 0.26  

Diluted

  $ 0.17     $ 0.26  
                 

Cash dividends declared per common share

  $ 0.04     $ -  

Weighted average number of shares outstanding:

               

Basic

    16,534,464       16,495,558  

Diluted

    16,534,464       16,495,558  

 

 
 

 

 

First National Community Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

 

 

   

Three Months Ended

 
   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands, except share data)

 

2016

   

2016

   

2015

   

2015

   

2015

 

Interest income

                                       

Interest and fees on loans

  $ 7,032     $ 6,969     $ 7,032     $ 6,693     $ 6,475  

Interest and dividends on securities

                                       

U.S. government agencies

    900       930       992       1,061       1,012  

State and political subdivisions, tax-free

    11       10       18       19       22  

State and political subdivisions, taxable

    624       535       458       324       97  

Other securities

    94       96       102       92       82  

Total interest and dividends on securities

    1,629       1,571       1,570       1,496       1,213  

Interest on interest-bearing deposits in other banks

    2       4       4       10       11  

Total interest income

    8,663       8,544       8,606       8,199       7,699  

Interest expense

                                       

Interest on deposits

    663       642       628       677       643  

Interest on borrowed funds

                                       

Interest on Federal Home Loan Bank of Pittsburgh advances

    167       148       147       128       119  

Interest on subordinated debentures

    159       159       160       162       565  

Interest on junior subordinated debentures

    61       57       56       50       51  

Total interest on borrowed funds

    387       364       363       340       735  

Total interest expense

    1,050       1,006       991       1,017       1,378  

Net interest income before provision (credit) for loan and lease losses

    7,613       7,538       7,615       7,182       6,321  

Provision (credit) for loan and lease losses

    396       696       (1,005 )     (191 )     345  

Net interest income after provision (credit) for loan and lease losses

    7,217       6,842       8,620       7,373       5,976  

Non-interest income

                                       

Deposit service charges

    717       701       742       799       745  

Net gain (loss) on the sale of securities

    857       103       (6 )     4       74  

Net gain on the sale of mortgage loans held for sale

    71       68       223       13       16  

Net gain (loss) on the sale of other real estate owned

    2       (5 )     17       129       11  

Loan-related fees

    95       107       152       94       106  

Income from bank-owned life insurance

    143       146       149       145       135  

Legal settlements

    -       -       -       -       184  

Other

    209       211       180       195       274  

Total non-interest income

    2,094       1,331       1,457       1,379       1,545  

Non-interest expense

                                       

Salaries and employee benefits

    3,589       3,514       4,228       3,240       3,203  

Occupancy expense

    329       493       619       500       532  

Equipment expense

    425       423       423       408       442  

Data processing expense

    494       523       556       471       501  

Regulatory assessments

    193       237       239       203       99  

Bank shares tax

    252       241       53       217       218  

Expense of other real estate owned

    194       46       62       91       147  

Legal expense

    86       120       106       80       88  

Professional fees

    272       287       234       193       286  

Insurance expense

    125       128       131       128       202  

Legal settlement

    -       -       777       -       -  

Other operating expenses

    1,066       792       1,159       884       962  

Total non-interest expense

    7,025       6,804       8,587       6,415       6,680  

Income before income taxes

    2,286       1,369       1,490       2,337       841  

Income tax expense (benefit)

    661       226       (27,719 )     -       22  

Net income

  $ 1,625     $ 1,143     $ 29,209     $ 2,337     $ 819  
                                         

Income per share

                                       

Basic

  $ 0.10     $ 0.07     $ 1.77     $ 0.14     $ 0.05  

Diluted

  $ 0.10     $ 0.07     $ 1.77     $ 0.14     $ 0.05  
                                         

Cash dividends declared per common share

  $ 0.02     $ 0.02     $ -     $ -     $ -  

Weighted average number of shares outstanding:

                                       

Basic

    16,549,169       16,519,759       16,506,294       16,500,945       16,500,945  

Diluted

    16,549,169       16,519,759       16,506,294       16,500,945       16,500,945  

 

 
 

 

 

First National Community Bancorp, Inc.

Consolidated Balance Sheets

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands)

 

2016

   

2016

   

2015

   

2015

   

2015

 

Assets

                                       

Cash and cash equivalents:

                                       

Cash and due from banks

  $ 15,847     $ 16,367     $ 19,544     $ 20,631     $ 22,443  

Interest-bearing deposits in other banks

    1,825       1,847       1,539       10,383       49,872  

Total cash and cash equivalents

    17,672       18,214       21,083       31,014       72,315  

Securities available for sale, at fair value

    262,190       263,523       253,773       249,228       226,539  

Stock in Federal Home Loan Bank of Pittsburgh at cost

    5,219       3,932       6,344       4,298       2,684  

Loans held for sale

    563       455       683       4,634       138  

Loans, net of net deferred costs and unearned income

    733,720       728,158       733,716       723,166       683,588  

Allowance for loan and lease losses

    (8,559 )     (8,635 )     (8,790 )     (9,825 )     (10,328 )

Net loans

    725,161       719,523       724,926       713,341       673,260  

Bank premises and equipment, net

    10,793       10,904       11,193       11,258       11,059  

Accrued interest receivable

    2,511       2,854       2,475       2,618       2,174  

Intangible assets

    55       96       137       179       220  

Bank-owned life insurance

    29,670       29,527       29,381       29,232       29,087  

Other real estate owned

    1,628       1,806       3,154       1,618       1,740  

Other assets

    32,076       34,181       37,469       7,799       8,455  

Total assets

  $ 1,087,538     $ 1,085,015     $ 1,090,618     $ 1,055,219     $ 1,027,671  
                                         

Liabilities

                                       

Deposits:

                                       

Demand (non-interest-bearing)

  $ 144,082     $ 162,882     $ 154,531     $ 152,038     $ 144,075  

Interest-bearing

    691,751       720,243       667,015       700,004       721,293  

Total deposits

    835,833       883,125       821,546       852,042       865,368  

Borrowed funds:

                                       

Federal Home Loan Bank of Pittsburgh advances

    120,771       74,511       135,802       93,058       57,771  

Subordinated debentures

    14,000       14,000       14,000       14,000       14,000  

Junior subordinated debentures

    10,310       10,310       10,310       10,310       10,310  

Total borrowed funds

    145,081       98,821       160,112       117,368       82,081  

Accrued interest payable

    311       333       11,165       11,187       11,344  

Other liabilities

    10,813       10,695       11,617       14,989       13,935  

Total liabilities

    992,038       992,974       1,004,440       995,586       972,728  
                                         

Shareholders' equity

                                       

Preferred stock

    -       -       -       -       -  

Common stock

    20,734       20,663       20,643       20,626       20,626  

Additional paid-in capital

    62,210       62,069       62,059       61,939       61,870  

Retained earnings (accumulated deficit)

    5,820       4,527       3,714       (25,495 )     (27,832 )

Accumulated other comprehensive income (loss)

    6,736       4,782       (238 )     2,563       279  

Total shareholders' equity

    95,500       92,041       86,178       59,633       54,943  

Total liabilities and shareholders’ equity

  $ 1,087,538     $ 1,085,015     $ 1,090,618     $ 1,055,219     $ 1,027,671  

 

 
 

 

 

First National Community Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

 

   

Three Months Ended

 
   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(dollars in thousands)

 

2016

   

2016

   

2015

   

2015

   

2015

 

Interest income

                                       

Loans:

                                       

Loans - taxable

  $ 6,674     $ 6,603     $ 6,694     $ 6,371     $ 6,148  

Loans - tax-free

    542       555       512       488       495  

Total loans

    7,216       7,158       7,206       6,859       6,643  

Securities:

                                       

Securities, taxable

    1,618       1,561       1,552       1,477       1,191  

Securities, tax-free

    17       15       27       29       33  

Total interest and dividends on securities

    1,635       1,576       1,579       1,506       1,224  

Interest-bearing deposits in other banks

    2       4       4       10       11  

Total interest income

    8,853       8,738       8,789       8,375       7,878  

Interest expense

                                       

Deposits

    663       642       628       677       643  

Borrowed funds

    387       364       363       340       735  

Total interest expense

    1,050       1,006       991       1,017       1,378  

Net interest income

  $ 7,803     $ 7,732     $ 7,798     $ 7,358     $ 6,500  
                                         

Average balances

                                       

Earning assets:

                                       

Loans:

                                       

Loans - taxable

  $ 682,642     $ 683,198     $ 685,795     $ 660,709     $ 637,005  

Loans - tax-free

    48,131       48,433       43,429       41,746       42,225  

Total loans

    730,773       731,631       729,224       702,455       679,230  

Securities:

                                       

Securities, taxable

    260,835       256,555       251,108       241,799       211,833  

Securities, tax-free

    1,090       1,107       1,713       1,707       2,007  

Total securities

    261,925       257,662       252,821       243,506       213,840  

Interest-bearing deposits in other banks

    2,347       3,746       6,797       12,185       18,984  

Total interest-earning assets

    995,045       993,039       988,842       958,146       912,054  

Non-earning assets

    97,271       101,958       65,633       62,063       62,254  

Total assets

  $ 1,092,316     $ 1,094,997     $ 1,054,475     $ 1,020,209     $ 974,308  

Interest-bearing liabilities:

                                       

Deposits

  $ 725,552     $ 725,369     $ 702,783     $ 690,039     $ 646,656  

Borrowed funds

    117,229       113,386       119,281       105,109       108,234  

Total interest-bearing liabilities

    842,781       838,755       822,064       795,148       754,890  

Demand deposits

    146,622       146,994       146,457       143,140       137,674  

Other liabilities

    11,125       19,967       25,811       25,303       25,964  

Shareholders' equity

    91,788       89,281       60,143       56,618       55,780  

Total liabilities and shareholders' equity

  $ 1,092,316     $ 1,094,997     $ 1,054,475     $ 1,020,209     $ 974,308  
                                         

Yield/Cost

                                       

Earning assets:

                                       

Loans:

                                       

Interest and fees on loans - taxable

    3.91 %     3.87 %     3.90 %     3.86 %     3.86 %

Interest and fees on loans - tax-free

    4.50 %     4.58 %     4.72 %     4.67 %     4.69 %

Total loans

    3.95 %     3.91 %     3.95 %     3.91 %     3.91 %

Securities:

                                       

Securities, taxable

    2.48 %     2.43 %     2.47 %     2.44 %     2.25 %

Securities, tax-free

    6.11 %     5.48 %     6.37 %     6.75 %     6.64 %

Total securities

    2.50 %     2.45 %     2.50 %     2.47 %     2.29 %

Interest-bearing deposits in other banks

    0.34 %     0.43 %     0.24 %     0.33 %     0.23 %

Total earning assets

    3.56 %     3.52 %     3.56 %     3.50 %     3.45 %

Interest-bearing liabilities:

                                       

Interest on deposits

    0.37 %     0.35 %     0.36 %     0.39 %     0.40 %

Interest on borrowed funds

    1.32 %     1.28 %     1.22 %     1.29 %     2.72 %

Total interest-bearing liabilities

    0.50 %     0.48 %     0.48 %     0.51 %     0.73 %

Net interest spread

    3.06 %     3.04 %     3.08 %     2.98 %     2.72 %

Net interest margin

    3.14 %     3.11 %     3.15 %     3.07 %     2.85 %

 

 
 

 

 

First National Community Bancorp, Inc.

Asset Quality Data

 

   

Jun 30,

   

Mar 31,

   

Dec 31,

   

Sept 30,

   

Jun 30,

 

(in thousands)

 

2016

   

2016

   

2015

   

2015

   

2015

 

At period end

                                       

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

  $ 2,739     $ 3,569     $ 3,788     $ 6,741     $ 5,757  

Loans past due 90 days or more and still accruing

    -       -       -       -       -  

Total non-performing loans

    2,739       3,569       3,788       6,741       5,757  

Other real estate owned (OREO)

    1,628       1,806       3,154       1,618       1,740  

Total non-performing loans and OREO

  $ 4,367     $ 5,375     $ 6,942     $ 8,359     $ 7,497  
                                         

Accruing TDRs

  $ 4,043     $ 4,623     $ 4,982     $ 5,065     $ 5,289  
                                         
                                         

For the three months ended

                                       

Allowance for loan and lease losses

                                       

Beginning balance

  $ 8,635     $ 8,790     $ 9,825     $ 10,328     $ 10,944  

Loans charged-off

    709       1,148       198       968       1,192  

Recoveries of charged-off loans

    237       297       168       656       231  

Net charge-offs

    472       851       30       312       961  

Provision (credit) for loan and lease losses

    396       696       (1,005 )     (191 )     345  

Ending balance

  $ 8,559     $ 8,635     $ 8,790     $ 9,825     $ 10,328