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.
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 | |||||||
| 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 | ) | ||||||
| $ | 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 | ||||||||||||||||
| 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 | |||||||||||||||
| $ | 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 | ||||||||||||||||||||
| 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 | |||||||||||
CONTACT: INVESTOR CONTACT: James M. Bone, Jr., CPA Executive Vice President and Chief Financial Officer FNCB Bank (570) 348-6419 [email protected]