Exhibit 99.1

FOR IMMEDIATE RELEASE

FNCB Bancorp, Inc. Reports 2016 Earnings of $6.3 Million

Dunmore, Pa., January 26, 2017/Globe Newswire/—FNCB Bancorp, Inc. (OTCQX: FNCB) (“FNCB”), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $6.3 million, or $0.38 per basic and diluted share, for the year ended December 31, 2016. Net income for the fourth quarter of 2016 was $1.5 million, or $0.09 per basic and diluted share.

2016 HIGHLIGHTS

● FNCB reported net income for the fourth consecutive fiscal year. Cumulative net income for fiscal years 2013 through 2016 totaled $62.0 million.

● Net interest income increased $3.1 million, or 11.5%, to $30.5 million in 2016 from $27.4 million in 2015.

● Total assets increased $104.8 million to $1.2 billion at December 31, 2016 from $1.1 billion at December 31, 2015, an increase of 9.6%.

● Total deposits increased $193.6 million, or 23.6%, to $1.0 billion at year-end 2016 from $821.5 million at year-end 2015.

● Non-performing assets decreased $0.5 million, or 7.2%, from $6.9 million at December 31, 2015 to $6.4 million at the close of 2016.

● FNCB paid $10.9 million deferred interest on subordinated debt in March 2016 and accelerated the payment of $4.0 million in principal on the subordinated debt due September 1, 2017 to December 1, 2016.

● FNCB resumed quarterly shareholder dividend payments in March 2016, and declared and paid dividends throughout the remainder of 2016.

● FNCB reinstated its dividend reinvestment and optional cash purchase plans in June 2016.

● FNCB declared a fourth quarter 2016 dividend of $0.03 per share, an increase of 50.0% compared to the $0.02 per share dividend declared for the third quarter of 2016.

● FNCB’s tangible book value improved 4.0% to $5.42 per share at December 31, 2016 from $5.21 per share at December 31, 2015.

● The Bank successfully completed a conversion from a federal charter to a state charter in the second quarter 2016.

“We are pleased with the continued success of our Company in 2016,” stated Gerard A. Champi, President and Chief Executive Officer. “We were able to deliver strong balance sheet growth and solid core-banking performance as evidenced by a double-digit increase in net interest income. We believe that the achievements we’ve made over the past four years have allowed us to create value for our shareholders, including growth in book value and the reinstatement of quarterly dividend payments as well as the dividend reinvestment and optional cash purchase plans,” continued Champi. “We are optimistic as we enter 2017 with the announcement of our planned expansion into the Lehigh Valley marketplace through the opening of a loan production office. We are excited to begin offering FNCB’s community bank brand and commitment to unsurpassed customer service to the Lehigh Valley,” concluded Champi.

Net income for the year ended December 31, 2015 was $35.8 million, or $2.17 per basic and diluted share. For the fourth quarter of 2015, FNCB recorded net income of $29.2 million, or $1.77, per basic and diluted common share. FNCB’s 2015 earnings performance was significantly impacted by the non-recurring reversal of a deferred tax asset (“DTA”) valuation allowance, which resulted in tax benefits of $27.7 million and $27.8 million in the consolidated statement of income for the fourth quarter and year ended December 31, 2015, respectively.

For the fourth quarter and year ended December 31, 2016, dividends declared and paid were $0.03 and $0.09 per share, respectively. The dividend payout ratio for 2016 was 23.7% and equaled a 1.5% annual return to shareholders based on the closing stock price of $6.05 per share at December 31, 2016. FNCB did not pay any dividends in 2015.

Return on average assets and return on average shareholders’ equity were 0.57% and 6.82%, respectively, in 2016, compared to 3.57% and 63.24%, respectively, in 2015. For the three months ended December 31, 2016, return on average assets and return on average shareholders’ equity were 0.55% and 6.43%, respectively, compared to 10.99% and 192.68%, respectively, for the same three months of 2015. Return on average assets and return on average shareholders’ equity for the fourth quarter and fiscal year ended December 31, 2015 were significantly impacted by the non-recurring $27.8 million tax benefit detailed above.

Summary Results for 2016

Net interest income before the credit for loan and lease losses increased $3.2 million, or 11.5%, to $30.6 million in 2016 from $27.4 million in 2015. The improvement in net interest income reflected a $2.5 million increase in interest income, coupled with a $0.6 million, or 12.6%, reduction in interest expense, in 2016 compared to 2015. The 7.9% increase in interest income in 2016 was largely due to an increase in average earning assets of $58.4 million, or 6.2%, to $1.0 billion in 2016 from $942.1 million in 2015. Specifically, average loans increased $35.0 million, or 5.0%, to $731.6 million in 2016 from $696.6 million in 2015, while average investment securities increased $34.4 million, or 15.1%, to $261.8 million in 2016 from $227.4 million in 2015. The 12.6% reduction in interest expense was due primarily to an 11 basis point reduction in FNCB’s cost of funds to 0.50% in 2016 from 0.61% in 2015. In 2016, FNCB realized a full year of the effect of its $11.0 million principal payment and a 450 basis point rate modification of its subordinated debentures, which was completed on June 30, 2015. As a result, interest expense on its subordinated debentures decreased $0.8 million, or 56.9%, in 2016 as compared to 2015. Overall, the average cost of borrowed funds decreased 59 basis points to 1.42% in 2016 from 2.01% in 2015. FNCB anticipates further reductions in borrowing costs in 2017 as a result of its accelerated repayment of $4.0 million in principal on its subordinated debentures which had a stated due date of September 1, 2017, but was paid by FNCB on December 1, 2016. FNCB’s tax-equivalent margin improved 14 basis points to 3.13% in 2016 from 2.99% in 2015. The margin improvement reflected the growth in average earning assets, as well as the positive effects of the reduced cost of borrowing funds.

Non-interest income decreased $1.6 million to $6.2 million in 2016 from $7.8 million in 2015. The 20.5% decrease was largely due to a $1.3 million, or 58.2%, decrease in net gains on the sale of investment securities.

Total non-interest expense decreased $0.9 million, or 3.2%, to $27.6 million in 2016 from $28.5 million in 2015. The decrease primarily reflected $0.8 million in non-recurring legal settlements that were accrued in 2015, coupled with decreases in occupancy costs of $0.5 million, or 22.2%, regulatory assessments of $0.2 million, or 23.3%, and insurance expense of $0.1 million, or 21.7%. Partially offsetting these decreases were increases in salaries and benefits of $0.5 million, equipment expense of $0.1 million, or 4.5%, and bank shares tax of $0.1 million, or 18.6%. The improvement in net interest income, and reduced expense levels, are reflected in an improvement in FNCB’s efficiency ratio to 75.49% in 2016 from 84.70% in 2015.

Improved Asset Quality

Asset quality continued to improve in 2016, reflecting FNCB’s continued focus on sound problem credit resolutions and commitment to disciplined credit risk management. Total non-performing assets decreased $0.5 million, or 7.2%, to $6.4 million at December 31, 2016 from $6.9 million at December 31, 2015. Decreases in non-performing loans, including non-accruing troubled debt restructurings, of $1.6 million and other real estate owned (“OREO”) of $1.1 million were partially offset by an increase in other non-performing assets of $2.2 million. Other non-performing assets include a classified account receivable secured by a letter of credit and foreclosed equipment.

The ratio of non-performing loans to total loans improved 21 basis points, or 40.4%, to 0.31% at December 31, 2016, compared to 0.52% at December 31, 2015. The allowance for loan and lease losses as a percentage of total loans was 1.15% at December 31, 2016 compared to 1.20% at the end of 2015. Net charge-offs as a percentage of average loans outstanding for the year ended December 31, 2016 was 0.21%, compared to 0.20% for the year ended December 31, 2015.

Financial Position

Total assets increased $104.8 million, or 9.6%, to $1.2 billion at December 31, 2016 from $1.1 billion at December 31, 2015. The balance sheet growth primarily reflected an increase in total deposits of $193.6 million, or 23.6%, a portion of which was used to repay $77.3 million in FHLB advances, accelerate the $4.0 million principal payment on the subordinated debentures, and fund net increases in loans, net of deferred costs and unearned income, and investment securities of $0.6 million and $18.9 million, respectively. With regard to the increase in total deposits, specifically, non-interest-bearing demand accounts increased $19.2 million, or 12.4%, and interest-bearing deposits increased $174.4 million, or 26.2% comparing December 31, 2016 and 2015. The increase in non-interest-bearing demand deposits is primarily attributable to growth in business checking accounts, while growth in municipal deposits contributed to the increase in interest-bearing deposits.

Total shareholders’ equity improved $4.0 million, or 4.6%, to $90.1 million at December 31, 2016 from $86.2 million at the end of 2015, which resulted primarily from net income for 2016 of $6.3 million, partially offset by a $1.5 million increase in accumulated other comprehensive loss resulting from depreciation in the market value, net of tax, of FNCB’s available-for-sale securities, due to changes in market interest rates. Also affecting shareholders’ equity were dividends declared and paid of $1.5 million, common shares issued through the dividend reinvestment and optional cash purchase plans of $0.4 million and stock-based compensation of $0.3 million.

FNCB’s total risk-based capital ratio and the Tier 1 leverage ratio improved to 12.06% and 7.53%, respectively, at December 31, 2016, from 11.79% and 7.27%, respectively, at December 31, 2015. The ratios 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, which became effective for the Company and the Bank on January 1, 2016.

Availability of Filings

Copies of FNCB’s most recent Annual Report on Form 10-K and Quarterly Reports on form 10-Q will be provided upon request from: Shareholder Relations, FNCB Bancorp, Inc., 102 East Drinker Street, Dunmore, PA 18512 or by calling (570) 348-6419. FNCB’s SEC filings including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are also available free of charge on the Investor Relations page of the FNCB’s website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html

About FNCB Bancorp, Inc.:
FNCB Bancorp, Inc. is the bank holding company of FNCB Bank, which provides personal, small business and commercial banking services to individuals and businesses in Northeastern Pennsylvania and the Lehigh Valley through its 19 branch offices and Allentown-based Limited Purpose Office. The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore and operated under the name First National Community Bank from 1988 through June 2016. On 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 the BauerFinancial 5-Star rated 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]

FNCB Bancorp, Inc.

Selected Financial Data

	Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
	2016			2016			2016			2016			2015
Per share data:
Net income (fully diluted)	$	0.09		$	0.12		$	0.10		$	0.07		$	1.77
Cash dividends declared	$	0.03		$	0.02		$	0.02		$	0.02		$	-
Book value	$	5.42		$	5.81		$	5.76		$	5.57		$	5.22
Tangible book value	$	5.42		$	5.81		$	5.75		$	5.56		$	5.21
Market value:
High	$	6.30		$	6.00		$	6.12		$	6.90		$	5.50
Low	$	5.00		$	4.75		$	5.50		$	5.11		$	5.06
Close	$	6.05		$	5.00		$	5.60		$	6.12		$	5.25
Common shares outstanding		16,645,845			16,614,856			16,586,868			16,530,432			16,514,245
Selected ratios:
Annualized return on average assets		0.55	%		0.73	%		0.60	%		0.42	%		10.99	%
Annualized return on average shareholders' equity		6.43	%		8.46	%		7.12	%		5.15	%		192.68	%
Efficiency ratio		77.25	%		70.96	%		77.78	%		76.01	%		92.80	%
Tier I leverage ratio		7.53	%		7.52	%		7.31	%		7.08	%		7.27	%
Total risk-based capital to risk-adjusted assets		12.06	%		12.37	%		12.00	%		11.81	%		11.79	%
Average shareholders' equity to average total assets		8.50	%		8.63	%		8.40	%		8.15	%		5.70	%
Yield on earning assets (FTE)		3.53	%		3.58	%		3.56	%		3.52	%		3.56	%
Cost of funds		0.49	%		0.52	%		0.50	%		0.48	%		0.48	%
Net interest spread (FTE)		3.03	%		3.06	%		3.06	%		3.04	%		3.08	%
Net interest margin (FTE)		3.11	%		3.14	%		3.14	%		3.11	%		3.15	%
Total delinquent loans/total loans		0.81	%		0.72	%		0.74	%		0.82	%		0.84	%
Allowance for loan and lease losses/total loans		1.15	%		1.17	%		1.17	%		1.19	%		1.20	%
Non-performing loans/total loans		0.31	%		0.33	%		0.37	%		0.49	%		0.52	%
Annualized net charge-offs (recoveries)/average loans		0.20	%		(0.09%	)		0.26	%		0.47	%		0.02	%

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

	Year Ended
	Dec 31,
(in thousands, except share data)	2016		2015
Interest income
Interest and fees on loans	$	28,223	$	26,672
Interest and dividends on securities
U.S. government agencies		3,557		4,036
State and political subdivisions, tax-free		46		109
State and political subdivisions, taxable		2,574		905
Other securities		315		433
Total interest and dividends on securities		6,492		5,483
Interest on interest-bearing deposits in other banks		33		46
Total interest income		34,748		32,201
Interest expense
Interest on deposits		2,730		2,631
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		595		514
Interest on subordinated debentures		625		1,450
Interest on junior subordinated debentures		247		206
Total interest on borrowed funds		1,467		2,170
Total interest expense		4,197		4,801
Net interest income before provision (credit) for loan and lease losses		30,551		27,400
Provision (credit) for loan and lease losses		1,153		(1,345	)
Net interest income after provision (credit) for loan and lease losses		29,398		28,745
Non-interest income
Deposit service charges		2,892		2,960
Net gain on the sale of securities		960		2,296
Net gain on the sale of mortgage loans held for sale		340		292
Net gain on the sale of SBA guaranteed loans		51		-
Net gain on the sale of other real estate owned		49		162
Loan-related fees		439		442
Income from bank-owned life insurance		552		564
Other		920		1,084
Total non-interest income		6,203		7,800
Non-interest expense
Salaries and employee benefits		14,320		13,810
Occupancy expense		1,777		2,284
Equipment expense		1,732		1,657
Data processing expense		1,997		1,976
Regulatory assessments		729		950
Bank shares tax		836		705
Expense of other real estate owned		409		400
Legal expense		362		437
Professional fees		961		1,014
Insurance expense		516		659
Other operating expenses		3,906		4,572
Total non-interest expense		27,545		28,464
Income before income taxes		8,056		8,081
Income tax expense (benefit)		1,747		(27,759	)
Net income	$	6,309	$	35,840
Income per share
Basic	$	0.38	$	2.17
Diluted	$	0.38	$	2.17
Cash dividends declared per common share	$	0.09	$	-
Weighted average number of shares outstanding:
Basic		16,571,251		16,499,622
Diluted		16,571,251		16,499,622

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

	Three Months Ended
	Dec 31,		Sept 30,			Jun 30,		Mar 31,			Dec 31,
(in thousands, except share data)	2016		2016			2016		2016			2015
Interest income
Interest and fees on loans	$	7,066	$	7,156		$	7,032	$	6,969		$	7,032
Interest and dividends on securities
U.S. government agencies		879		848			900		930			992
State and political subdivisions, tax-free		16		9			11		10			18
State and political subdivisions, taxable		740		675			624		535			458
Other securities		56		69			94		96			102
Total interest and dividends on securities		1,691		1,601			1,629		1,571			1,570
Interest on interest-bearing deposits in other banks		19		8			2		4			4
Total interest income		8,776		8,765			8,663		8,544			8,606
Interest expense
Interest on deposits		721		704			663		642			628
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		123		157			167		148			147
Interest on subordinated debentures		145		162			159		159			160
Interest on junior subordinated debentures		67		62			61		57			56
Total interest on borrowed funds		335		381			387		364			363
Total interest expense		1,056		1,085			1,050		1,006			991
Net interest income before provision (credit) for loan and lease losses		7,720		7,680			7,613		7,538			7,615
Provision (credit) for loan and lease losses		295		(234	)		396		696			(1,005	)
Net interest income after provision (credit) for loan and lease losses		7,425		7,914			7,217		6,842			8,620
Non-interest income
Deposit service charges		735		739			717		701			742
Net gain (loss) on the sale of securities		-		-			857		103			(6	)
Net gain on the sale of mortgage loans held for sale		102		99			71		68			223
Net gain on the sale of SBA guaranteed loans		-		51			-		-			-
Net gain (loss) on the sale of other real estate owned		20		32			2		(5	)		17
Loan-related fees		152		85			95		107			152
Income from bank-owned life insurance		126		137			143		146			149
Other		263		237			209		211			180
Total non-interest income		1,398		1,380			2,094		1,331			1,457
Non-interest expense
Salaries and employee benefits		3,954		3,263			3,589		3,514			4,228
Occupancy expense		476		479			329		493			619
Equipment expense		455		429			425		423			423
Data processing expense		475		505			494		523			556
Regulatory assessments		100		199			193		237			239
Bank shares tax		90		253			252		241			53
Expense of other real estate owned		74		95			194		46			62
Legal expense		77		79			86		120			106
Professional fees		245		157			272		287			234
Insurance expense		132		131			125		128			131
Legal settlement		-		-			-		-			777
Other operating expenses		1,085		963			1,066		792			1,159
Total non-interest expense		7,163		6,553			7,025		6,804			8,587
Income before income taxes		1,660		2,741			2,286		1,369			1,490
Income tax expense (benefit)		136		724			661		226			(27,719	)
Net income	$	1,524	$	2,017		$	1,625	$	1,143		$	29,209
Income per share
Basic	$	0.09	$	0.12		$	0.10	$	0.07		$	1.77
Diluted	$	0.09	$	0.12		$	0.10	$	0.07		$	1.77
Cash dividends declared per common share	$	0.03	$	0.02		$	0.02	$	0.02		$	-
Weighted average number of shares outstanding:
Basic		16,621,467		16,593,811			16,549,169		16,519,759			16,506,294
Diluted		16,621,467		16,593,811			16,549,169		16,519,759			16,506,294

FNCB Bancorp, Inc.

Consolidated Balance Sheets

	Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(in thousands)	2016			2016			2016			2016			2015
Assets
Cash and cash equivalents:
Cash and due from banks	$	20,562		$	24,558		$	15,847		$	16,367		$	19,544
Interest-bearing deposits in other banks		91,883			32,778			1,825			1,847			1,539
Total cash and cash equivalents		112,445			57,336			17,672			18,214			21,083
Securities available for sale, at fair value		272,676			263,475			262,190			263,523			253,773
Stock in Federal Home Loan Bank of Pittsburgh at cost		3,311			2,741			5,219			3,932			6,344
Loans held for sale		596			185			563			455			683
Loans, net of net deferred costs and unearned income		734,279			729,662			733,720			728,158			733,716
Allowance for loan and lease losses		(8,419	)		(8,490	)		(8,559	)		(8,635	)		(8,790	)
Net loans		725,860			721,172			725,161			719,523			724,926
Bank premises and equipment, net		10,784			10,615			10,793			10,904			11,193
Accrued interest receivable		2,757			2,736			2,511			2,854			2,475
Intangible assets		-			14			55			96			137
Bank-owned life insurance		29,933			29,807			29,670			29,527			29,381
Other real estate owned		2,048			2,065			1,628			1,806			3,154
Other assets		34,965			31,441			32,076			34,181			37,469
Total assets	$	1,195,375		$	1,121,587		$	1,087,538		$	1,085,015		$	1,090,618
Liabilities
Deposits:
Demand (non-interest-bearing)	$	173,702		$	157,119		$	144,082		$	162,882		$	154,531
Interest-bearing		841,437			773,840			691,751			720,243			667,015
Total deposits		1,015,139			930,959			835,833			883,125			821,546
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances		58,537			58,837			120,771			74,511			135,802
Subordinated debentures		10,000			14,000			14,000			14,000			14,000
Junior subordinated debentures		10,310			10,310			10,310			10,310			10,310
Total borrowed funds		78,847			83,147			145,081			98,821			160,112
Accrued interest payable		242			294			311			333			11,165
Other liabilities		11,000			10,614			10,813			10,695			11,617
Total liabilities		1,105,228			1,025,014			992,038			992,974			1,004,440
Shareholders' equity
Preferred stock		-			-			-			-			-
Common stock		20,807			20,768			20,734			20,663			20,643
Additional paid-in capital		62,593			62,381			62,210			62,069			62,059
Retained earnings		8,531			7,506			5,820			4,527			3,714
Accumulated other comprehensive (loss) income		(1,784	)		5,918			6,736			4,782			(238	)
Total shareholders' equity		90,147			96,573			95,500			92,041			86,178
Total liabilities and shareholders’ equity	$	1,195,375		$	1,121,587		$	1,087,538		$	1,085,015		$	1,090,618

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

	Three Months Ended
	Dec 31,			Sept 30,			Jun 30,			Mar 31,			Dec 31,
(dollars in thousands)	2016			2016			2016			2016			2015
Interest income
Loans:
Loans - taxable	$	6,767		$	6,809		$	6,674		$	6,603		$	6,694
Loans - tax-free		453			526			542			555			512
Total loans		7,220			7,335			7,216			7,158			7,206
Securities:
Securities, taxable		1,675			1,592			1,618			1,561			1,552
Securities, tax-free		24			14			17			15			27
Total interest and dividends on securities		1,699			1,606			1,635			1,576			1,579
Interest-bearing deposits in other banks		19			8			2			4			4
Total interest income		8,938			8,949			8,853			8,738			8,789
Interest expense
Deposits		721			704			663			642			628
Borrowed funds		335			381			387			364			363
Total interest expense		1,056			1,085			1,050			1,006			991
Net interest income	$	7,882		$	7,864		$	7,803		$	7,732		$	7,798
Average balances
Earning assets:
Loans:
Loans - taxable	$	687,225		$	688,038		$	682,642		$	683,198		$	685,795
Loans - tax-free		41,081			47,620			48,131			48,433			43,429
Total loans		728,306			735,658			730,773			731,631			729,224
Securities:
Securities, taxable		267,634			257,431			260,835			256,555			251,108
Securities, tax-free		1,664			905			1,090			1,107			1,713
Total securities		269,298			258,336			261,925			257,662			252,821
Interest-bearing deposits in other banks		15,727			6,448			2,347			3,746			6,797
Total interest-earning assets		1,013,331			1,000,442			995,045			993,039			988,842
Non-earning assets		95,322			99,010			97,271			101,958			65,633
Total assets	$	1,108,653		$	1,099,452		$	1,092,316		$	1,094,997		$	1,054,475
Interest-bearing liabilities:
Deposits	$	775,565		$	737,431		$	725,552		$	725,369		$	702,783
Borrowed funds		78,780			103,821			117,229			113,386			119,281
Total interest-bearing liabilities		854,345			841,252			842,781			838,755			822,064
Demand deposits		149,008			152,319			146,622			146,994			146,457
Other liabilities		11,029			11,006			11,125			19,967			25,811
Shareholders' equity		94,271			94,875			91,788			89,281			60,143
Total liabilities and shareholders' equity	$	1,108,653		$	1,099,452		$	1,092,316		$	1,094,997		$	1,054,475
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable		3.94	%		3.96	%		3.91	%		3.87	%		3.90	%
Interest and fees on loans - tax-free		4.41	%		4.42	%		4.50	%		4.58	%		4.72	%
Total loans		3.97	%		3.99	%		3.95	%		3.91	%		3.95	%
Securities:
Securities, taxable		2.50	%		2.47	%		2.48	%		2.43	%		2.47	%
Securities, tax-free		5.83	%		6.03	%		6.11	%		5.48	%		6.37	%
Total securities		2.52	%		2.49	%		2.50	%		2.45	%		2.50	%
Interest-bearing deposits in other banks		0.48	%		0.50	%		0.34	%		0.43	%		0.24	%
Total earning assets		3.53	%		3.58	%		3.56	%		3.52	%		3.56	%
Interest-bearing liabilities:
Interest on deposits		0.37	%		0.38	%		0.37	%		0.35	%		0.36	%
Interest on borrowed funds		1.70	%		1.47	%		1.32	%		1.28	%		1.22	%
Total interest-bearing liabilities		0.49	%		0.52	%		0.50	%		0.48	%		0.48	%
Net interest spread		3.03	%		3.06	%		3.06	%		3.04	%		3.08	%
Net interest margin		3.11	%		3.14	%		3.14	%		3.11	%		3.15	%

FNCB Bancorp, Inc.

Asset Quality Data

	Dec 31,		Sept 30,			Jun 30,		Mar 31,		Dec 31,
(in thousands)	2016		2016			2016		2016		2015
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)	$	2,234	$	2,416		$	2,739	$	3,569	$	3,788
Loans past due 90 days or more and still accruing		-		-			-		-		-
Total non-performing loans		2,234		2,416			2,739		3,569		3,788
Other real estate owned (OREO)		2,048		2,065			1,628		1,806		3,154
Other non-performing assets		2,160		260			-		-		-
Total non-performing assets	$	6,442	$	4,741		$	4,367	$	5,375	$	6,942
Accruing TDRs	$	4,176	$	4,106		$	4,043	$	4,623	$	4,982
For the three months ended
Allowance for loan and lease losses
Beginning balance	$	8,490	$	8,559		$	8,635	$	8,790	$	9,825
Loans charged-off		572		189			709		1,148		198
Recoveries of charged-off loans		206		354			237		297		168
Net charge-offs (recoveries)		366		(165	)		472		851		30
Provision (credit) for loan and lease losses		295		(234	)		396		696		(1,005	)
Ending balance	$	8,419	$	8,490		$	8,559	$	8,635	$	8,790