FNCB Bancorp Earnings 2021-03-31

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 March 31, 2021

☐

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: 20,224,666 shares as of April 30, 2021

Table of Contents

Contents
PART I. Financial Information	1
Item 1. Financial Statements (unaudited)	1
Consolidated Statements of Financial Condition	1
Consolidated Statements of Income	2
Consolidated Statements of Comprehensive Income	3
Consolidated Statements of Changes in Shareholders’ Equity	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures about Market Risk	43
Item 4. Controls and Procedures	43
PART II. Other Information	44
Item 1. Legal Proceedings.	44
Item 1A. Risk Factors.	44
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	44
Item 3. Defaults upon Senior Securities.	44
Item 4. Mine Safety Disclosures.	44
Item 5. Other Information.	44
Item 6. Exhibits.	45

Table of Contents

Part I - Financial Information

Item 1 - Financial Statements

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

	*March 31,*		*December 31,*
(in thousands, except share data)	*2021*		*2020*
Assets
Cash and cash equivalents:
Cash and due from banks	$	22,382	$	24,822
Interest-bearing deposits in other banks		76,172		130,989
Total cash and cash equivalents		98,554		155,811
Available-for-sale debt securities, at fair value		407,396		350,035
Equity securities, at fair value		4,267		3,026
Restricted stock, at cost		1,149		1,745
Loans held for sale		267		2,107
Loans, net of allowance for loan and lease losses of $12,076 and $11,950		919,867		889,152
Bank premises and equipment, net		17,407		17,579
Accrued interest receivable		4,567		4,286
Bank-owned life insurance		33,074		31,712
Other assets		13,488		10,226
Total assets	$	1,500,036	$	1,465,679

Liabilities
Deposits:
Demand (non-interest-bearing)	$	319,532	$	271,499
Interest-bearing		1,003,296		1,015,949
Total deposits		1,322,828		1,287,448
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances		-		-
Junior subordinated debentures		10,310		10,310
Total borrowed funds		10,310		10,310
Accrued interest payable		99		108
Accrued income tax expense		590		-
Other liabilities		11,279		11,953
Total liabilities		1,345,106		1,309,819

Shareholders' equity
Preferred shares ($1.25 par)
Authorized: 20,000,000 shares at March 31, 2021 and December 31, 2020
Issued and outstanding: 0 shares at March 31, 2021 and December 31, 2020		-		-
Common shares ($1.25 par)
Authorized: 50,000,000 shares at March 31, 2021 and December 31, 2020
Issued and outstanding: 20,240,668 shares at March 31, 2021 and 20,245,649 shares at December 31, 2020		25,300		25,307
Additional paid-in capital		81,640		81,587
Retained earnings		39,691		35,080
Accumulated other comprehensive income		8,299		13,886
Total shareholders' equity		154,930		155,860
Total liabilities and shareholders’ equity	$	1,500,036	$	1,465,679

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 March 31,*
(in thousands, except share data)	*2021*		*2020*
Interest income
Interest and fees on loans	$	9,786	$	9,139
Interest and dividends on securities:
Taxable		1,906		1,852
Tax-exempt		486		57
Dividends		62		75
Total interest and dividends on securities		2,454		1,984
Interest on interest-bearing deposits in other banks		3		21
Total interest income		12,243		11,144
Interest expense
Interest on deposits		798		1,660
Interest on borrowed funds:
Federal Home Loan Bank of Pittsburgh advances		-		219
Junior subordinated debentures		48		88
Total interest on borrowed funds		48		307
Total interest expense		846		1,967
Net interest income before provision for loan and lease losses		11,397		9,177
Provision for loan and lease losses		186		1,151
Net interest income after provision for loan and lease losses		11,211		8,026
Non-interest income
Deposit service charges		874		825
Net gain on the sale of available-for-sale debt securities		213		149
Net gain on equity securities		364		14
Net gain on the sale of mortgage loans held for sale		224		96
Loan-related fees		133		56
Income from bank-owned life insurance		121		129
Bank-owned life insurance settlement		422		-
Merchant services revenue		138		135
Other		285		290
Total non-interest income		2,774		1,694
Non-interest expense
Salaries and employee benefits		3,736		3,929
Occupancy expense		609		554
Equipment expense		353		371
Advertising expense		117		207
Data processing expense		819		725
Regulatory assessments		188		59
Bank shares tax		315		300
Professional fees		259		188
Other operating expenses		775		872
Total non-interest expense		7,171		7,205
Income before income tax expense		6,814		2,515
Income tax expense		981		452
Net income	$	5,833	$	2,063

Earnings per share
Basic	$	0.29	$	0.10
Diluted	$	0.29	$	0.10

Cash dividends declared per common share	$	0.060	$	0.055
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic		20,242,262		20,172,498
Diluted		20,253,606		20,176,565

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 COMPREHENSIVE INCOME
(unaudited)

	*Three Months Ended March 31,*
(in thousands)	*2021*			*2020*
Net income	$	5,833		$	2,063
Other comprehensive (loss) income:
Unrealized (losses) gains on available-for-sale debt securities		(7,067	)		4,336
Taxes		1,484			(911	)
Net of tax amount		(5,583	)		3,425

Reclassification adjustment for gains included in net income		(213	)		(149	)
Taxes		45			32
Net of tax amount		(168	)		(117	)

Derivative adjustments		208			(16	)
Taxes		(44	)		3
Net of tax amount		164			(13	)
Total other comprehensive (loss) income		(5,587	)		3,295
Comprehensive income	$	246		$	5,358

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 CHANGES IN SHAREHOLDERS’ EQUITY

For the Three Months Ended March 31, 2021 and 2020

(unaudited)

(in thousands, except per share data)	*Number of Common Shares*			*Common Stock*			*Additional Paid-in Capital*			*Retained Earnings*			*Accumulated Other Comprehensive Income*			*Total Shareholders' Equity*
Balances, December 31, 2019		20,171,408		$	25,214		$	81,130		$	24,207		$	3,056		$	133,607
Net income for the period		-			-			-			2,063			-			2,063
Cash dividends paid, $0.055 per share		-			-			-			(1,110	)		-			(1,110	)
Restricted stock awards		-			-			62			-			-			62
Common shares issued through dividend reinvestment/optional cash purchase plan		2,842			3			17			(5	)		-			15
Other comprehensive income, net of tax of $876		-			-			-			-			3,295			3,295
Balances, March 31, 2020		20,174,250		$	25,217		$	81,209		$	25,155		$	6,351		$	137,932

Balances, December 31, 2020		20,245,649		$	25,307		$	81,587		$	35,080		$	13,886		$	155,860
Net income for the period		-			-			-			5,833			-			5,833
Cash dividends paid, $0.060 per share		-			-			-			(1,215	)		-			(1,215	)
Restricted stock awards		-			-			80			-			-			80
Repurchase of common shares		(8,188	)		(11	)		(46	)		-			-			(57	)
Common shares issued through dividend reinvestment/optional cash purchase plan		3,207			4			19			(7	)		-			16
Other comprehensive loss, net of tax of $1,485		-			-			-			-			(5,587	)		(5,587	)
Balances, March 31, 2021		20,240,668		$	25,300		$	81,640		$	39,691		$	8,299		$	154,930

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 CASH FLOWS
(unaudited)

	*Three Months Ended March 31,*
(in thousands)	*2021*			*2020*
Cash flows from operating activities:
Net income	$	5,833		$	2,063
Adjustments to reconcile net income to net cash provided by operating activities:
Investment securities amortization, net		362			120
Equity in trust		(1	)		(3	)
Depreciation of bank premises and equipment		389			408
Amortization of loan origination (fees) costs		(1,262	)		336
Valuation adjustment for loan servicing rights		(5	)		23
Stock-based compensation expense		80			62
Provision for loan and lease losses		186			1,151
Valuation adjustment for off-balance sheet commitments		(15	)		2
Net gain on the sale of available-for-sale debt securities		(213	)		(149	)
Net gain on equity securities		(364	)		(14	)
Net gain on the sale of mortgage loans held for sale		(224	)		(96	)
Bank-owned life insurance settlement		(422	)		-
Income from bank-owned life insurance		(121	)		(129	)
Proceeds from the sale of mortgage loans held for sale		4,533			2,982
Funds used to originate mortgage loans held for sale		(2,469	)		(2,295	)
Decrease in net deferred tax assets		391			452

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	2021-03-31	Filed 2021-05-07
10-K	2020-12-31	Filed 2021-03-12
10-Q	2020-09-30	Filed 2020-11-02
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	2021-02-22
8-K	2021-02-16
8-K	2021-01-29
8-K	2021-01-27
8-K	2020-11-30
8-K	2020-10-30
8-K	2020-10-28
8-K	2020-09-03
8-K	2020-07-31
8-K	2020-07-20
8-K	2020-07-02
8-K	2020-07-01
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_238898.htm
EX-31.2	ex_238899.htm
EX-32.1	ex_238900.htm

FNCB 10Q Quarterly Report

FNCB Bancorp Earnings 2021-03-31