FNCB Bancorp Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

fncb20180331_10q.htm

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-38408

FNCB BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Pennsylvania		23-2900790
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

102 E. Drinker St., Dunmore, PA		18512
(Address of Principal Executive Offices)		(Zip Code)

(570) 346-7667

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $1.25 par value	FNCB	Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 20,235,282 shares as of August 3, 2020

Table of Contents

Contents
PART I. Financial Information	3
Item 1. Financial Statements (unaudited)	3
Consolidated Statements of Financial Condition	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Shareholders’ Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3. Quantitative and Qualitative Disclosures about Market Risk	48
Item 4. Controls and Procedures	48
PART II. Other Information	49
Item 1. Legal Proceedings.	49
Item 1A. Risk Factors.	49
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	49
Item 3. Defaults upon Senior Securities.	49
Item 4. Mine Safety Disclosures.	49
Item 5. Other Information.	49
Item 6. Exhibits.	50

Table of Contents

Part I - Financial Information

Item 1 - Financial Statements

FNCB BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited)

	*June 30,*		*December 31,*
(in thousands, except share data)	*2020*		*2019*
Assets
Cash and cash equivalents:
Cash and due from banks	$	20,089	$	22,861
Interest-bearing deposits in other banks		81,390		11,704
Total cash and cash equivalents		101,479		34,565
Available-for-sale debt securities, at fair value		305,611		272,839
Equity securities, at fair value		938		920
Restricted stock, at cost		3,309		3,804
Loans held for sale		765		1,061
Loans, net of allowance for loan and lease losses of $11,024 and $8,950		937,404		819,529
Bank premises and equipment, net		17,467		17,518
Accrued interest receivable		5,201		3,234
Bank-owned life insurance		31,478		31,230
Other real estate owned		85		289
Net deferred tax assets		2,969		6,278
Other assets		11,465		12,274
Total assets	$	1,418,171	$	1,203,541

Liabilities
Deposits:
Demand (non-interest-bearing)	$	266,846	$	179,465
Interest-bearing		902,781		822,244
Total deposits		1,169,627		1,001,709
Borrowed funds:
Federal Reserve Bank Discount Window advances		36,242		-
Federal Home Loan Bank of Pittsburgh advances		42,809		46,909
Junior subordinated debentures		10,310		10,310
Total borrowed funds		89,361		57,219
Accrued interest payable		248		258
Other liabilities		13,578		10,748
Total liabilities		1,272,814		1,069,934

Shareholders' equity
Preferred shares ($1.25 par)
Authorized: 20,000,000 shares at June 30, 2020 and December 31, 2019
Issued and outstanding: 0 shares at June 30, 2020 and December 31, 2019		-		-
Common shares ($1.25 par)
Authorized: 50,000,000 shares at June 30, 2020 and December 31, 2019
Issued and outstanding: 20,208,607 shares at June 30, 2020 and 20,171,408 shares at December 31, 2019		25,260		25,214
Additional paid-in capital		81,261		81,130
Retained earnings		28,057		24,207
Accumulated other comprehensive income		10,779		3,056
Total shareholders' equity		145,357		133,607
Total liabilities and shareholders’ equity	$	1,418,171	$	1,203,541

The accompanying notes to consolidated financial statements are an integral part of these statements.

Table of Contents

FNCB BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
(in thousands, except share data)	*2020*		*2019*		*2020*		*2019*
Interest income
Interest and fees on loans	$	9,060	$	9,418	$	18,199	$	18,825
Interest and dividends on securities:
U.S. government agencies		589		906		1,339		1,799
State and political subdivisions, tax free		388		38		445		75
State and political subdivisions, taxable		735		811		1,500		1,832
Other securities		415		210		827		415
Total interest and dividends on securities		2,127		1,965		4,111		4,121
Interest on interest-bearing deposits in other banks		3		79		24		125
Total interest income		11,190		11,462		22,334		23,071
Interest expense
Interest on deposits		1,376		2,144		3,036		4,382
Interest on borrowed funds:
Federal Reserve Bank Discount Window advances		14		-		14		-
Federal Home Loan Bank of Pittsburgh advances		160		253		379		540
Junior subordinated debentures		60		111		148		225
Subordinated debentures		-		-		-		24
Total interest on borrowed funds		234		364		541		789
Total interest expense		1,610		2,508		3,577		5,171
Net interest income before provision for loan and lease losses		9,580		8,954		18,757		17,900
Provision for loan and lease losses		831		347		1,982		193
Net interest income after provision for loan and lease losses		8,749		8,607		16,775		17,707
Non-interest income
Deposit service charges		708		721		1,533		1,406
Net gain on the sale of available-for-sale debt securities		922		163		1,071		323
Net gain on equity securities		4		14		18		26
Net gain on the sale of mortgage loans held for sale		183		73		279		129
Net gain on the sale of other real estate owned		-		9		-		9
Loan-related fees		25		72		81		151
Income from bank-owned life insurance		119		129		248		260
Loan referral fees		214		6		262		20
Merchant services revenue		112		131		247		249
Other		214		260		456		520
Total non-interest income		2,501		1,578		4,195		3,093
Non-interest expense
Salaries and employee benefits		3,498		3,824		7,427		7,723
Occupancy expense		466

Price	7.85	EPS	0
Shares	20	P/E	21
MCap	158	P/FCF	17
Net Debt	52	EBIT	21
TEV	211	TEV/EBIT	10
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-03
10-Q	2020-03-31	Filed 2020-05-04
10-K	2019-12-31	Filed 2020-03-09
10-Q	2019-09-30	Filed 2019-11-05
10-Q	2019-06-30	Filed 2019-08-05
10-Q	2019-03-31	Filed 2019-05-03
10-K	2018-12-31	Filed 2019-03-08
10-Q	2018-09-30	Filed 2018-10-31
10-Q	2018-06-30	Filed 2018-08-03
10-Q	2018-03-31	Filed 2018-05-04
10-K	2017-12-31	Filed 2018-03-09
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-06-30	Filed 2017-08-04
10-Q	2017-03-31	Filed 2017-05-05
10-K	2016-12-31	Filed 2017-03-10
10-Q	2016-09-30	Filed 2016-11-04
10-Q	2016-06-30	Filed 2016-08-05
10-Q	2016-03-31	Filed 2016-05-06
10-K	2015-12-31	Filed 2016-03-11
10-Q	2015-09-30	Filed 2015-11-06
10-Q	2015-06-30	Filed 2015-08-07
10-Q	2015-03-31	Filed 2015-05-08
10-K	2014-12-31	Filed 2015-03-13
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-24
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-13
10-Q	2013-03-31	Filed 2013-05-14
10-K	2012-12-31	Filed 2013-03-28
10-Q	2012-09-30	Filed 2012-11-14
10-Q	2012-06-30	Filed 2012-08-24
10-Q	2012-03-31	Filed 2012-08-24
10-K	2011-12-31	Filed 2012-08-10
10-Q	2011-09-30	Filed 2012-08-10
10-Q	2010-08-09	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2010-03-16	Filed 2010-03-16

8-K	2020-09-03	Regulation FD, Exhibits
8-K	2020-07-31	Other Events, Exhibits
8-K	2020-07-20	Earnings, Exhibits
8-K	2020-07-02	Other Events, Exhibits
8-K	2020-07-01	Regulation FD, Exhibits
8-K	2020-05-13
8-K	2020-05-13
8-K	2020-04-29
8-K	2020-04-27
8-K	2020-03-25
8-K	2020-01-24
8-K	2020-01-22
8-K	2019-10-30
8-K	2019-10-21
8-K	2019-07-25
8-K	2019-07-01
8-K	2019-05-15
8-K	2019-05-15
8-K	2019-04-24
8-K	2019-04-22
8-K	2019-04-22
8-K	2019-02-05
8-K	2019-01-30
8-K	2019-01-28
8-K	2019-01-25
8-K	2018-12-21
8-K	2018-12-19
8-K	2018-12-14
8-K	2018-11-14
8-K	2018-10-31
8-K	2018-10-22
8-K	2018-10-19
8-K	2018-09-27
8-K	2018-08-14
8-K	2018-08-08
8-K	2018-07-30
8-K	2018-07-26
8-K	2018-07-20
8-K	2018-07-05
8-K	2018-05-16
8-K	2018-05-16
8-K	2018-04-25
8-K	2018-04-20
8-K	2018-04-06
8-K	2018-02-28
8-K	2018-01-31
8-K	2018-01-31
8-K	2018-01-24
8-K	2018-01-05

EX-31.1	ex_190561.htm
EX-31.2	ex_190562.htm
EX-32.1	ex_190563.htm

FNCB 10Q Quarterly Report

FNCB Bancorp Earnings 2020-06-30