8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 22, 2019

FNCB Bancorp, Inc.

(Exact name of registrant as specified in its Charter)

Pennsylvania	000-53869	23-2900790
(State or other jurisdiction	(Commission file number)	(IRS Employer
of incorporation)		Identification No.)

102 E. Drinker St., Dunmore, PA, 18512

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: 570.346.7667

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                                              Emerging growth company ☐

If an emerging growth company, indicated 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.                                                                  ☐

Item 2.02 Results of Operations and Financial Condition.

On April 22, 2019, FNCB Bancorp, Inc. issued a press release announcing its unaudited results of operations for the three-month period ended March 31, 2019 and financial condition at March 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01          Financial Statements and Exhibits

Exhibits:

99.1     Press Release issued April 22, 2019

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FNCB BANCORP, INC.
	By:	/s/ James M. Bone, Jr., CPA
		James M. Bone, Jr., CPA
		Executive Vice President and Chief Financial Officer
Dated: April 22, 2019

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

FNCB Bancorp, Inc. Reports Increase in First Quarter 2019 Earnings

Dunmore, Pa., April 22, 2019/Globe Newswire/—FNCB Bancorp, Inc. (NASDAQ: FNCB), the parent company of Dunmore-based FNCB Bank (the “Bank”), today reported net income of $2.6 million, or $0.14 per basic and diluted share, for the three months ended March 31, 2019, an increase of $0.6 million, or 30.5%, compared to net income of $2.0 million, or $0.12 per basic and diluted share, for the same three months of 2018. The increase in first quarter earnings reflected a credit for loan and lease losses in 2019 compared to a provision in 2018 and an increase in net interest income, partially offset by moderately higher non-interest expense. Return on average assets and return on average shareholders’ equity were 0.86% and 9.70%, respectively, for the first three months of 2019, compared to 0.70% and 9.44%, respectively for the same three months of 2018. 

First Quarter 2019 Highlights:

● 30.5% increase in net income comparing the first quarters of 2019 and 2018;

● Successfully completed a $23.0 million common stock offering;

● Total risk-based capital and Tier I Leverage ratios improved to 15.06% and 10.45% at March 31, 2019 compared to 12.69% and 8.50% at December 31, 2018, respectively;

● Accelerated final payment on subordinated debt; and

● Increased first quarter dividend by 25.0% comparing 2019 and 2018.

“Our first quarter operating results provides us with a solid start to 2019,” stated Gerard A. Champi, President and Chief Executive Officer. "The current rate environment and the highly competitive marketplace in which we operate has started to place pressure on our net interest margin, as increases in funding costs have outpaced earning asset yields. One of our foremost strategic objectives is growing core deposit relationships, which will benefit our liquidity position and assist us in managing funding costs," continued Champi. "We remain focused on creating efficiency within the balance sheet through effective asset/liability management initiatives in order to build on our first quarter results," Champi concluded. 

Summary Results 

For the three months ended March 31, 2019, tax-equivalent net interest income increased $0.1 million, or 1.1% to $9.1 million from $9.0 million for the same three months of 2018. Specifically, comparing the first quarters of 2019 and 2018, a $1.2 million, or 11.4%, increase in tax-equivalent interest income was almost entirely offset by a $1.1 million, or 70.5%, increase in interest expense.  FNCB’s tax-equivalent net interest margin for the first quarter of 2019 contracted 12 basis points to 3.14% compared to 3.26% for the same quarter of 2018. The margin contraction primarily reflected a 42 basis-point increase in the cost of funds to 1.11% for the three months ended March 31, 2019 from 0.69% for the same three months of 2018. The increase in funding costs almost entirely offset the effects of strong earning asset growth and a 23 basis-point increase in the tax-equivalent yield on earning assets. Average earning assets grew $57.3 million, or 5.2%, to $1.157 billion for the three months ended March 31, 2019 from $1.100 billion for the same period of 2018, while tax-equivalent earning-asset yields improved 23 basis points to 4.06% for the three months ended March 31, 2019 compared to 3.83% for the three months ended March 31, 2018. Average interest-bearing liabilities increased $52.8 million, or 5.8%, to $961.9 million for the first quarter of 2019 from $909.2 million for the same quarter of 2018. The growth in interest-bearing liabilities resulted in only a negligible increase in interest expense, as the impact of a $97.0 million, or 12.0%, increase in average interest-bearing deposits was almost entirely mitigated by a $44.3 million , or 43.1%, reduction in average borrowed funds. For purposes of presenting net interest income, earning-asset yields and net interest margin information on a tax-equivalent basis, tax-free interest income is adjusted using the statutory federal corporate income tax rate of 21.0% for the three months ended March 31, 2019 and 2018.

Non-interest income was $1.5 million for the three months ended March 31, 2019 and 2018. FNCB realized net gains on the sale of available-for-sale debt securities of $160 thousand for the first quarter of 2019. There were no gains on the sale of available-for-sale debt securities realized during the same period of 2018. Additionally, other income increased $112 thousand to $392 thousand for the three months ended March 31, 2019 from $280 thousand for the same three months of 2018. Partially offsetting these positive factors were decreases in net gains on the sales of SBA guaranteed loans and other real estate owned. During the first quarter of 2018, FNCB realized net gains on the sales of SBA guaranteed loans and other real estate owned of $251 thousand and $38 thousand, respectively.  The were no such gains realized in the first quarter of 2019.

For the three months ended March 31, 2019, non-interest expense increased by $193 thousand, or 2.7%, to $7.4 million from $7.2 million for the comparable three months of 2018. The increase primarily reflected increases in salaries and employee benefits and data processing costs, partially offset by reductions in occupancy expense and other operating expenses. 

Asset Quality

FNCB's asset quality weakened slightly as total non-performing loans increased $1.5 million to $6.2 million, or 0.74% of total loans, at March 31, 2019 from $4.7 million, or 0.56%, of total loans at December 31, 2018. FNCB’s loan delinquency rate (total delinquent loans as a percentage of total loans) was 1.28% at March 31, 2019 compared to 0.93% at December 31, 2018. The increase in non-performing loans and loan delinquencies was primarily attributable to two commercial relationships that were placed on non-accrual status during the first quarter of 2019. The allowance for loan and lease losses was $9.3 million, or 1.10% of total loans outstanding, at March 31, 2019, compared to $9.5 million, or 1.13% of total loans outstanding, at December 31, 2018. Management is actively managing problem credits through heightened workout efforts focused on developing strategies to resolve borrower difficulties through liquidation of  collateral and other appropriate means. Net charge-offs were $112 thousand, or an annual rate of 0.05% of average loans, for the three months ended March 31, 2019 compared to $192 thousand, or an annual rate of 0.10% of average loans, for the same three months of 2018. FNCB recorded a credit for loan and leases losses of $154 thousand for the first quarter of 2019 compared to a provision for loan and lease losses of $720 thousand for the same quarter of 2018. The $874 thousand variance primarily reflected a decrease in historical net charge-off rates. 

Financial Condition

Total assets were $1.214 billion at March 31, 2019, a decrease of $23.3 million, or 1.9%, from $1.238 billion at December 31, 2018. The moderate contraction in total assets primarily reflected a $21.9 million, or 7.4%, decrease in available-for-sale securities to $274.1 million at March 31, 2019 from $296.0 million at December 31, 2018. The proceeds from the sale of securities was used to supplement cyclical deposit trends and minimize wholesale funding utilization. Total deposits decreased $55.5 million, or 5.1%, to $1.040 billion at March 31, 2019 from $1.096 billion at December 31, 2018, which largely reflected the cyclical deposit trends of municipal customers. Loans, net of net deferred costs and unearned income, were $838.9 million at March 31, 2019, a slight decrease of $0.2 million compared to $839.1 million at December 31, 2018. Total borrowed funds increased $5.1 million to $39.3 million at March 31, 2019 from $34.2 million at December 31, 2018, reflecting a $10.0 million increase in FHLB of Pittsburgh advances partially offset by a $5.0 million principal repayment on the subordinated debt. 

Total shareholders’ equity increased $26.6 million, or 27.3%, to $123.8 million at March 31, 2019 from $97.2 million at December 31, 2018. FNCB successfully completed a public offering of its common stock, which resulted in a net increase to capital after offering expenses of $21.3 million. Also factoring into the capital improvement was net income for the three months ended March 31, 2019 of $2.6 million and a $3.6 million decrease in accumulated other comprehensive loss related to appreciation in the fair value of available-for-sale debt securities, net of deferred taxes, partially offset by dividends declared of $1.0 million. FNCB’s total risk-based capital and Tier I leverage ratios improved to 15.06% and 10.45%, respectively, at March 31, 2019 from 12.69% and 8.50%, respectively, at December 31, 2018. Dividends declared and paid for the first quarter were $0.05 per share in 2019, an increase of 25.0% from $0.04 per share in 2018. The dividend payout ratio, dividends declared divided by net income, was 38.2% and 33.2% for the three months ended March 31, 2019 and 2018, respectively. 

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. Locally-based for over 100 years, FNCB Bank continues as a premier community bank in Northeastern Pennsylvania – offering a full suite of personal, small business and commercial banking solutions with industry-leading mobile, online and in-branch products and services. FNCB currently operates through 16 community offices located in Lackawanna, Luzerne and Wayne Counties and a limited purpose office in Lehigh County, and remains dedicated to making its customers’ banking experience simply better. 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, fiscal and tax 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, including for deposit and loan growth: 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 stock 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 ability of FNCB to identify future acquisition targets, complete acquisitions and integrate new teams into FNCB’s operations; 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, 2018.

FNCB Bancorp, Inc.

Selected Financial Data

	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
	2019			2018			2018			2018			2018
Per share data:
Net income (fully diluted)	$	0.14		$	0.42		$	0.11		$	0.14		$	0.12
Cash dividends declared	$	0.05		$	0.05		$	0.04		$	0.04		$	0.04
Book value	$	6.16		$	5.78		$	5.15		$	5.18		$	5.17
Tangible book value	$	6.16		$	5.78		$	5.15		$	5.18		$	5.17
Market value:
High	$	10.68		$	10.39		$	12.00		$	10.00		$	9.98
Low	$	7.14		$	8.21		$	7.97		$	8.01		$	7.01
Close	$	7.70		$	8.44		$	9.77		$	8.88		$	9.24
Common shares outstanding		20,108,560			16,821,371			16,819,471			16,817,097			16,766,600
Selected ratios:
Annualized return on average assets		0.86	%		2.26	%		0.59	%		0.79	%		0.70	%
Annualized return on average shareholders' equity		9.70	%		32.26	%		8.41	%		11.23	%		9.44	%
Efficiency ratio		71.24	%		47.59	%		67.11	%		63.94	%		68.78	%
Tier I leverage ratio		10.45	%		8.50	%		7.66	%		7.69	%		7.80	%
Total risk-based capital to risk-adjusted assets		15.06	%		12.69	%		11.42	%		11.31	%		11.70	%
Average shareholders' equity to average total assets		8.89	%		7.00	%		7.00	%		7.05	%		7.38	%
Yield on earning assets (FTE)		4.06	%		4.06	%		4.04	%		3.96	%		3.83	%
Cost of funds		1.11	%		1.04	%		1.00	%		0.84	%		0.69	%
Net interest spread (FTE)		2.95	%		3.02	%		3.04	%		3.12	%		3.15	%
Net interest margin (FTE)		3.14	%		3.17	%		3.21	%		3.26	%		3.26	%
Total delinquent loans/total loans		1.28	%		0.93	%		0.90	%		0.71	%		0.73	%
Allowance for loan and lease losses/total loans		1.10	%		1.13	%		1.14	%		1.11	%		1.18	%
Non-performing loans/total loans		0.74	%		0.56	%		0.51	%		0.41	%		0.30	%
Annualized net charge-offs/average loans		0.05	%		0.05	%		0.36	%		0.47	%		0.10	%

FNCB Bancorp, Inc.

Year-to-Date Consolidated Statements of Income

	Three Months Ended
	March 31,
(in thousands, except share data)	2019			2018
Interest income
Interest and fees on loans	$	9,407		$	8,288
Interest and dividends on securities
U.S. government agencies		893			890
State and political subdivisions, tax-free		37			20
State and political subdivisions, taxable		1,021			1,024
Other securities		205			195
Total interest and dividends on securities		2,156			2,129
Interest on interest-bearing deposits in other banks		46			23
Total interest income		11,609			10,440
Interest expense
Interest on deposits		2,238			1,067
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		287			352
Interest on subordinated debentures		24			56
Interest on junior subordinated debentures		114			87
Total interest on borrowed funds		425			495
Total interest expense		2,663			1,562
Net interest income before (credit) provision for loan and lease losses		8,946			8,878
(Credit) provision for loan and lease losses		(154	)		720
Net interest income after (credit) provision for loan and lease losses		9,100			8,158
Non-interest income
Deposit service charges		685			702
Net gain on the sale of securities		160			-
Net gain (loss) on equity securities		12			(19	)
Net gain on the sale of mortgage loans held for sale		56			49
Net gain on the sale of SBA guaranteed loans		-			251
Net gain on the sale of other real estate owned		-			38
Loan-related fees		79			84
Income from bank-owned life insurance		131			134
Other		392			280
Total non-interest income		1,515			1,519
Non-interest expense
Salaries and employee benefits		3,899			3,666
Occupancy expense		550			603
Equipment expense		307			314
Data processing expense		781			648
Regulatory assessments		168			201
Bank shares tax		278			267
Professional fees		332			296
Insurance expense		126			135
Other operating expenses		984			1,102
Total non-interest expense		7,425			7,232
Income before income taxes		3,190			2,445
Income tax expense		555			426
Net income	$	2,635		$	2,019
Income per share
Basic	$	0.14		$	0.12
Diluted	$	0.14		$	0.12
Cash dividends declared per common share	$	0.05		$	0.04
Weighted average number of shares outstanding:
Basic		18,720,502			16,763,401
Diluted		18,733,652			16,789,336

FNCB Bancorp, Inc.

Quarter-to-Date Consolidated Statements of Income

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands, except share data)	2019			2018			2018			2018			2018
Interest income
Interest and fees on loans	$	9,407		$	9,561		$	9,501		$	9,031		$	8,288
Interest and dividends on securities
U.S. government agencies		893			890			899			886			890
State and political subdivisions, tax-free		37			38			37			38			20
State and political subdivisions, taxable		1,021			1,026			1,028			1,027			1,024
Other securities		205			167			211			240			195
Total interest and dividends on securities		2,156			2,121			2,175			2,191			2,129
Interest on interest-bearing deposits in other banks		46			36			17			12			23
Total interest income		11,609			11,718			11,693			11,234			10,440
Interest expense
Interest on deposits		2,238			2,165			1,559			1,134			1,067
Interest on borrowed funds
Interest on Federal Home Loan Bank of Pittsburgh advances		287			251			715			707			352
Interest on subordinated debentures		24			57			58			57			56
Interest on junior subordinated debentures		114			108			106			99			87
Total interest on borrowed funds		425			416			879			863			495
Total interest expense		2,663			2,581			2,438			1,997			1,562
Net interest income before (credit) provision for loan and lease losses		8,946			9,137			9,255			9,237			8,878
(Credit) provision for loan and lease losses		(154	)		(199	)		1,149			880			720
Net interest income after (credit) provision for loan and lease losses		9,100			9,336			8,106			8,357			8,158
Non-interest income
Deposit service charges		685			725			711			747			702
Net gain (loss) on the sale of securities		160			-			-			(4	)		-
Net gain (loss) on equity securities		12			7			(8	)		(7	)		(19	)
Net gain on the sale of mortgage loans held for sale		56			39			71			51			49
Net gain on the sale of SBA guaranteed loans		-			-			-			71			251
Net (loss) gain on the sale of other real estate owned		-			-			-			(7	)		38
Loan-related fees		79			145			85			76			84
Income from bank-owned life insurance		131			142			141			138			134
Insurance recovery		-			6,027			-			-			-
Other		392			337			320			464			280
Total non-interest income		1,515			7,422			1,320			1,529			1,519
Non-interest expense
Salaries and employee benefits		3,899			4,048			3,581			3,485			3,666
Occupancy expense		550			562			500			526			603
Equipment expense		307			318			299			323			314
Data processing expense		781			759			745			647			648
Regulatory assessments		168			213			251			196			201
Bank shares tax		278			(131	)		278			222			267
Professional fees		332			295			241			196			296
Insurance expense		126			117			130			133			135
Other operating expenses		984			1,760			1,163			1,238			1,102
Total non-interest expense		7,425			7,941			7,188			6,966			7,232
Income before income taxes		3,190			8,817			2,238			2,920			2,445
Income tax expense		555			1,749			388			508			426
Net income	$	2,635		$	7,068		$	1,850		$	2,412		$	2,019
Income per share
Basic	$	0.14		$	0.42		$	0.11		$	0.14		$	0.12
Diluted	$	0.14		$	0.42		$	0.11		$	0.14		$	0.12
Cash dividends declared per common share	$	0.05		$	0.05		$	0.04		$	0.04		$	0.04
Weighted average number of shares outstanding:
Basic		18,720,502			16,820,337			16,818,625			16,792,812			16,763,401
Diluted		18,733,652			16,840,933			16,838,547			16,819,286			16,789,336

FNCB Bancorp, Inc.

Consolidated Balance Sheets

	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)	2019			2018			2018			2018			2018
Assets
Cash and cash equivalents:
Cash and due from banks	$	25,683		$	26,673		$	23,051		$	16,500		$	12,323
Interest-bearing deposits in other banks		7,062			9,808			7,246			4,624			1,873
Total cash and cash equivalents		32,745			36,481			30,297			21,124			14,196
Available-for-sale debt securities, at fair value		274,114			296,032			288,780			290,863			298,314
Equity securities, at fair value		904			891			884			892			899
Restricted stock, at cost		3,120			3,123			3,333			7,964			5,703
Loans held for sale		609			820			938			629			366
Loans, net of net deferred costs and unearned income		838,864			839,100			864,316			855,391			808,202
Allowance for loan and lease losses		(9,253	)		(9,519	)		(9,827	)		(9,459	)		(9,562	)
Net loans		829,611			829,581			854,489			845,932			798,640
Bank premises and equipment, net		14,991			14,425			13,895			13,900			12,870
Accrued interest receivable		3,706			3,614			4,061			3,654			3,430
Bank-owned life insurance		31,146			31,015			30,873			30,732			30,594
Other real estate owned		919			919			715			787			579
Other assets		22,526			20,831			22,857			22,810			23,669
Total assets	$	1,214,451		$	1,237,732		$	1,251,122		$	1,239,287		$	1,189,260
Liabilities
Deposits:
Demand (non-interest-bearing)	$	157,073		$	156,600		$	166,967		$	177,388		$	172,896
Interest-bearing		883,017			939,029			928,154			777,855			782,357
Total deposits		1,040,090			1,095,629			1,095,121			955,243			955,253
Borrowed funds:
Federal Home Loan Bank of Pittsburgh advances		28,988			18,930			46,490			174,251			121,485
Subordinated debentures		-			5,000			5,000			5,000			5,000
Junior subordinated debentures		10,310			10,310			10,310			10,310			10,310
Total borrowed funds		39,298			34,240			61,800			189,561			136,795
Accrued interest payable		339			338			318			331			284
Other liabilities		10,942			10,306			7,306			7,027			10,190
Total liabilities		1,090,669			1,140,513			1,164,545			1,152,162			1,102,522
Shareholders' equity
Preferred stock		-			-			-			-			-
Common stock		25,135			21,026			21,024			21,021			20,958
Additional paid-in capital		80,827			63,547			63,469			63,374			63,335
Retained earnings		18,809			17,186			10,965			9,792			8,057
Accumulated other comprehensive loss		(989	)		(4,540	)		(8,881	)		(7,062	)		(5,612	)
Total shareholders' equity		123,782			97,219			86,577			87,125			86,738
Total liabilities and shareholders’ equity	$	1,214,451		$	1,237,732		$	1,251,122		$	1,239,287		$	1,189,260

FNCB Bancorp, Inc.

Summary Tax-equivalent Net Interest Income

	Three Months Ended
	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(dollars in thousands)	2019			2018			2018			2018			2018
Interest income
Loans:
Loans - taxable	$	8,940		$	9,090		$	9,059		$	8,631		$	7,934
Loans - tax-free		591			596			559			506			448
Total loans		9,531			9,686			9,618			9,137			8,382
Securities:
Securities, taxable		2,119			2,083			2,138			2,153			2,109
Securities, tax-free		47			48			47			48			25
Total interest and dividends on securities		2,166			2,131			2,185			2,201			2,134
Interest-bearing deposits in other banks		46			36			17			12			23
Total interest income		11,743			11,853			11,820			11,350			10,539
Interest expense
Deposits		2,238			2,165			1,559			1,134			1,067
Borrowed funds		425			416			879			863			495
		2,663			2,581			2,438			1,997			1,562
Net interest income	$	9,080		$	9,272		$	9,382		$	9,353		$	8,977
Average balances
Earning assets:
Loans:
Loans - taxable	$	784,359		$	796,886		$	803,314		$	784,427		$	748,375
Loans - tax-free		59,220			58,722			55,848			49,855			44,383
Total loans		843,579			855,608			859,162			834,282			792,758
Securities:
Securities, taxable		299,498			299,981			303,037			305,627			301,032
Securities, tax-free		4,638			4,651			4,664			4,677			2,325
Total securities		304,136			304,632			307,701			310,304			303,357
Interest-bearing deposits in other banks		9,495			8,438			3,735			2,629			3,825
Total interest-earning assets		1,157,210			1,168,678			1,170,598			1,147,215			1,099,940
Non-earning assets		81,868			72,999			75,518			74,188			76,114
Total assets	$	1,239,078		$	1,241,677		$	1,246,116		$	1,221,403		$	1,176,054
Interest-bearing liabilities:
Deposits	$	903,542		$	926,767		$	827,570		$	790,233		$	806,494
Borrowed funds		58,402			62,495			149,682			163,547			102,676
Total interest-bearing liabilities		961,944			989,262			977,252			953,780			909,170
Demand deposits		155,122			157,223			173,616			173,037			169,450
Other liabilities		11,801			8,272			7,983			8,444			10,663
Shareholders' equity		110,211			86,920			87,265			86,142			86,771
Total liabilities and shareholders' equity	$	1,239,078		$	1,241,677		$	1,246,116		$	1,221,403		$	1,176,054
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable		4.56	%		4.56	%		4.51	%		4.40	%		4.24	%
Interest and fees on loans - tax-free		3.99	%		4.06	%		4.01	%		4.06	%		4.04	%
Total loans		4.52	%		4.53	%		4.48	%		4.38	%		4.23	%
Securities:
Securities, taxable		2.83	%		2.78	%		2.82	%		2.82	%		2.80	%
Securities, tax-free		4.05	%		4.13	%		4.03	%		4.11	%		4.30	%
Total securities		2.85	%		2.80	%		2.84	%		2.84	%		2.81	%
Interest-bearing deposits in other banks		1.94	%		1.71	%		1.82	%		1.83	%		2.41	%
Total earning assets		4.06	%		4.06	%		4.04	%		3.96	%		3.83	%
Interest-bearing liabilities:
Interest on deposits		0.99	%		0.93	%		0.75	%		0.57	%		0.53	%
Interest on borrowed funds		2.91	%		2.66	%		2.35	%		2.11	%		1.93	%
Total interest-bearing liabilities		1.11	%		1.04	%		1.00	%		0.84	%		0.69	%
Net interest spread		2.95	%		3.02	%		3.04	%		3.12	%		3.15	%
Net interest margin		3.14	%		3.17	%		3.21	%		3.26	%		3.26	%

FNCB Bancorp, Inc.

Asset Quality Data

	Mar 31,			Dec 31,			Sept 30,		Jun 30,		Mar 31,
(in thousands)	2019			2018			2018		2018		2018
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)	$	6,175		$	4,696		$	4,391	$	3,469	$	2,403
Loans past due 90 days or more and still accruing		-			-			-		-		-
Total non-performing loans		6,175			4,696			4,391		3,469		2,403
Other real estate owned (OREO)		919			919			715		787		579
Other non-performing assets		1,900			1,900			1,900		1,900		1,900
Total non-performing assets	$	8,994		$	7,515		$	7,006	$	6,156	$	4,882
Accruing TDRs	$	8,215		$	8,457		$	8,515	$	8,741	$	8,797
For the three months ended
Allowance for loan and lease losses
Beginning balance	$	9,519		$	9,827		$	9,459	$	9,562	$	9,034
Loans charged-off		454			392			1,037		1,310		400
Recoveries of charged-off loans		342			283			256		327		208
Net charge-offs		112			109			781		983		192
(Credit) provision for loan and lease losses		(154	)		(199	)		1,149		880		720
Ending balance	$	9,253		$	9,519		$	9,827	$	9,459	$	9,562