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FNCB Uplisted to NASDAQ
http://otce.finra.org/DLDeletions
First National Community Bancorp, Inc. changed to FNCB Bancorp, Inc.
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First National Community Bancorp, Inc. Reports First Quarter 2016 Net Income
Company Release - 04/29/2016 16:05
DUNMORE, Pa., April 29, 2016 (GLOBE NEWSWIRE) -- First National Community Bancorp, Inc. (OTCQX:FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), announced operating results for the quarter ended March 31, 2016. FNCB reported net income of $1.1 million, or $0.07 per basic and diluted share. Net income for the comparable period of 2015 was $3.5 million, or $0.21 per basic and diluted share. The $2.4 million decrease in first quarter earnings reflected lower non-interest income, a provision for loan and lease losses in 2016 versus a credit for loan and lease losses in 2015, partially offset by an increase in net interest income. Annualized return on average assets and return on average equity were 0.42% and 5.15%, respectively, for the three months ended March 31, 2016, compared to 1.45% and 26.34%, respectively, for the same three months of 2015. FNCB paid holders of its common stock a dividend of $0.02 per share for the first quarter of 2016. FNCB did not pay a dividend for the first quarter of 2015.
Performance Highlights:
•Paid a dividend of $0.02 per share in the first quarter of 2016, the first quarterly dividend payment since the fourth quarter of 2009;
•Year over year growth of $1.3 million, or 20.0%, in net interest income;
•26 basis point improvement in tax-equivalent net interest margin in the first quarter of 2016 compared to same quarter of 2015;
•Year over year growth of 9.4% in average earning assets; and
•Paid $10.8 million in deferred and accrued interest on subordinated debt.
“We are pleased with FNCB’s first quarter results, which reflected normalized core earnings growth, net interest margin improvement and strong earning asset growth,” stated Steven R. Tokach, President and Chief Executive Officer. “In addition, we were successful in achieving two significant goals during the first quarter. We were able to make our subordinated noteholders whole as to deferred interest, which significantly improved our leverage position, and provide a return to our loyal shareholders through the payment of a first quarter dividend. We sincerely appreciate the ongoing trust and support of these stakeholders,” concluded Mr. Tokach.
Summary Results for the Three Months Ended March 31, 2016
Net interest income before the provision for loan and lease losses was $7.5 million for the first three months of 2016, an increase of $1.3 million, or 20.0%, compared to $6.3 million for the same period in 2015. Tax-equivalent interest income increased $0.8 million, or 10.7%, to $8.7 million for the three-month period ended March 31, 2016 compared to $7.9 million in 2015. The increase primarily reflected an $84.9 million, or 9.4%, increase in average earning assets. Specifically, average loans grew $56.8 million, or 8.4%, comparing the first quarters of 2016 and 2015, while average investment securities increased $59.1 million, or 29.8%. Also positively impacting net interest income was a 27 basis point decrease in the cost of funds to 0.48% for the first three months of 2016 from 0.75% for the same three months of 2015, which was the primary factor leading to a $0.4 million reduction in interest expense. Causing the greatest impact in funding costs was a 168 basis point 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% mid-2015. Partially offsetting the impact of the reduction in funding costs was an $81.5 million, or 10.8%, increase in average interest-bearing liabilities. The tax-equivalent net interest margin for the three months ended March 31, 2016 was 3.11%, an improvement of 26 basis points from 2.85% for the same period in 2015.
For the three months ended March 31, 2016 non-interest income totaled $1.3 million, a decrease of $2.1 million, or 61.1%, compared to $3.4 million for the same three months of 2015. The change resulted primarily from a decrease in net gains on the sale of securities of $2.1 million to $103 thousand in 2016 from $2.2 million in 2015. In addition, FNCB experienced a decrease of $40 thousand in other income, and a net loss of $5 thousand on the sale of OREO compared to a net gain of $5 thousand in 2015. Partially offsetting these decreases were increases in net gains on the sale of mortgage loans of $28 thousand, service charges on deposits of $27 thousand, loan-related fees of $17 thousand and income from bank-owned life insurance of $11 thousand.
Non-interest expense remained relatively flat comparing the three months ended March 31, 2016 and 2015, increasing by $22 thousand, or 0.3%. The increases were primarily a rise in salaries and benefits expense of $375 thousand, or 11.94%, along with a $74 thousand increase in data processing expenses and a $39 thousand increase in equipment expense. The increase in salaries and benefits expense resulted from additions to staff, coupled with a 30.8% increase in health insurance costs. The recent conversion to a new core operating system in the fourth quarter of 2015 and other planned improvements to FNCB’s technology infrastructure caused the increase in data processing expense and equipment expense, specifically maintenance contract costs and depreciation. These increases were mostly offset by decreases in regulatory assessments of $172 thousand, or 42.0%, occupancy expenses of $140 thousand, insurance expenses of $70 thousand, expenses of other real estate owned of $54 thousand, and legal expenses of $43 thousand.
Improved Asset Quality
FNCB’s asset quality continued to improve through March 31, 2016, a result of the effective management of problem credits and delinquent loans. Total non-performing loans decreased $219 thousand, or 5.8%, to $3.6 million at March 31, 2016 from December 31, 2015. The ratio of non-performing loans to total loans improved 3 basis points to 0.49% at March 31, 2016, compared to 0.52% at December 31, 2015. The allowance for loan and lease losses as a percentage of gross loans was 1.19% at March 31, 2016 versus 1.20% at the end of 2015. FNCB’s ratio of total delinquent loans to total loans at March 31, 2016 was 0.82%, a 2 basis point improvement from 0.84% at December 31, 2015. Each of these asset quality metrics compare favorably to industry peer.
Financial Condition
FNCB’s total assets were relatively stable, decreasing $5.6 million, or 0.5%, to $1.085 billion at March 31, 2016 from $1.091 billion at December 31, 2015. The balance sheet change primarily reflected reductions of $5.4 million in loans, net of the ALLL, $2.4 million in FHLB of Pittsburgh stock, $1.3 million in OREO and $2.9 million in cash and cash equivalents, which were mostly offset by an increase in available-for-sale securities of $9.8 million. Total deposits grew $61.6 million, or 7.5%, due primarily to the attainment of a new municipal deposit relationship, along with an influx of public deposits related to the release of state government funds in early 2016 as a result of the state budget impasse. The deposit growth was used to repay borrowings from the FHLB of Pittsburgh, which declined $61.3 million, or 45.1%, when comparing March 31, 2016 and December 31, 2015. In addition, FNCB repaid all accrued interest totaling $10.8 million that had been deferred on the subordinated notes for the period September 1, 2010 through May 31, 2015.
Total shareholders’ equity increased $5.9 million, or 6.8%, to $92.0 million at March 31, 2016 from $86.2 million at December 31, 2015. The capital improvement resulted primarily from a $5.0 million increase in accumulated other comprehensive income from the appreciation in the fair value of available-for-sale securities, net of tax effects, coupled with net income of $1.1 million for the first quarter of 2015. Partially offsetting these increases was $0.3 million in dividends paid to common shareholders.
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 First National Community Bank:
First National Community Bancorp, Inc. is the bank holding company of First National Community 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 has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.
FNCB $5.35
First National Community Bancorp, Inc. Announces Termination of OCC Consent Order
3 hours 44 minutes ago - DJNF
DUNMORE, Pa., March 26, 2015 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQX: FNCB) ("Company"), announced today that First National Community Bank ("Bank"), the Company's wholly-owned banking subsidiary, has been fully and completely released from the Consent Order ("CO") entered into with the Office of the Comptroller of the Currency ("OCC") in September 2010. The effective date of the termination of the CO was March 25, 2015.
In response to the CO and other factors, the Bank implemented and adopted industry best practices to meet the evolving expectations of the regulatory agencies for community banks. Included in the enhancements were additional corporate governance practices and disciplined business and banking principles related to the Bank's procedures, systems, policies, programs, plans, training and resources. The Board of Directors added experienced members to provide further oversight and guidance. These and other efforts were reflected in the results of operations for years 2013 and 2014. In 2014, the Company reported its most profitable year since 2008 and, as of December 31, 2014, both the Company's and the Bank's regulatory capital ratios were the highest they have been since December 31, 2008. All of these efforts were accomplished without any specific capital raising activity.
The termination of the CO signifies that the OCC has determined that the Bank has met all of the CO requirements. Also, with the termination of the CO, the Bank is now considered "well-capitalized" under the FDIC's prompt corrective action provisions.
"Since the Bank entered into the CO, the Board of Directors, management and all of our employees have worked tirelessly to improve the Bank's processes and controls, while continuing to serve our customers and strengthening our competitive position in Northeastern Pennsylvania. The termination of the CO is a highly positive milestone for the Bank and represents our team's successful efforts to improve our compliance-related infrastructure, as well as strengthen our balance sheet and improve the Bank's financial performance," said Steven R. Tokach, President and Chief Executive Officer. "It's gratifying that we have been able to realize significant performance improvements while operating under the limitations of a regulatory order. The termination of the CO enhances our ability to execute our strategic plan and enables our team to focus its time and energy on deepening existing and adding new customer relationships, growing core profitability and building long-term shareholder value through the remainder of 2015 and beyond."
About First National Community Bank:
First National Community Bancorp, Inc. is the bank holding company of First National Community Bank, which provides personal, small business and commercial banking services to individuals and businesses throughout Northeastern Pennsylvania. The institution was established as a National Banking Association in 1910 as The First National Bank of Dunmore, and has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.
INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
First National Community Bank
(570) 348-6419
james.bone@fncb.com
First National Community Bancorp, Inc. Reports 79% Increase in Third Quarter 2014 Earnings
DUNMORE, Pa., Nov. 10, 2014 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQB: FNCB), the parent company of Dunmore-based First National Community Bank, today announced a 78.9% increase in operating results for the three months ended September 30, 2014 over the same period of 2013. The Company reported net income of $3.4 million, or $0.20 per basic and diluted share, for the third quarter of 2014, compared to net income of $1.9 million, or $0.11 per basic and diluted share, for the same quarter of 2013. Net income for the nine months ended September 30, 2014 was $13.5 million, or $0.82 per basic and diluted share, a 214.0% increase compared to net income of $4.3 million, or $0.26 per basic and diluted share, for the comparable period of 2013. The improved performance for the third quarter resulted primarily from increases in non-interest income and net interest income, partially offset by a decrease in the credit for loan and lease losses. The increase in year-to-date net income reflected higher net interest and non-interest income, coupled with an increase in the credit for loan and lease losses for the nine-month period as a result of a $3.6 million full recovery on a previously charged-off commercial loan.
Performance Highlights:
•At September 30, 2014 the Bank continued to exceed all regulatory capital levels mandated by the OCC Consent Order.
•Annualized return on average assets and average shareholders' equity were 1.85% and 41.43% for the year-to-date period ended September 30, 2014, compared to 0.62% and 16.80% for the same period of 2013.
•Net interest income grew 5.0% for the nine months ended September 30, 2014.
•A 3 basis point improvement in the tax-equivalent net interest margin comparing the third quarters of 2014 and 2013.
•Net loan growth of 5.8% for the nine months ended September 30, 2014.
•Continued asset quality improvement as evidenced by decreases of 12.3% in non-performing loans and 38.4% in other real estate owned compared to December 31, 2013.
•A 17 basis point improvement in the ratio of non-performing loans to total loans to 0.82% at September 30, 2014 compared to 0.99% at December 31, 2013.
"The Company's very strong third quarter and year-to-date 2014 performance reflected improved net interest income, a stronger asset quality profile to that of national peer banks and ongoing management efforts to reduce operating costs," stated Steven R. Tokach, President and Chief Executive Officer. "Continued improvement in our financial performance and condition is reflective of the strength of our core banking franchise in Northeast Pennsylvania, effective loan work-out and recovery efforts and our focus on organic loan and deposit growth within our markets. The net result of our performance over the past couple years can be seen in both the Bank's enhanced core profitability performance as well as our capital position which exceeds all regulatory minimum requirements. FNCB is now solidly positioned to compete and grow within its service area, and to create long-term value for our shareholders."
Summary Results for the Three and Nine Months Ended September 30, 2014
Net interest income before the credit for loan and lease losses was $6.8 million for the third quarter, and $20.0 million for the nine months ended September 30, 2014 compared to $6.4 million and $19.1 million, respectively, for the same periods in 2013. The increase was primarily a result of lower interest expense on deposits and higher interest and dividend income on securities. The third quarter tax-equivalent net interest margin was 3.18%, an increase of 3 basis points from the prior year period, and an increase of 2 basis points compared to the second quarter of 2014. Despite the quarterly margin improvement, the tax-equivalent margin for the nine months ended September 30, 2014 was 3.14%, 7 basis points lower compared to 3.21% for the same period of 2013, due primarily to the repositioning of our investment securities portfolio from tax-free to taxable securities. Interest expense for the three and nine months ended September 30, 2014 decreased $311 thousand and $863 thousand, respectively, compared to the same periods in 2013, which resulted primarily from the continued reduction in the average cost of funds due to a positive change in the mix of non-interest-bearing and interest-bearing deposits accounts. The cost of funds decreased 14 basis points for the three-month period and 17 basis points for the nine-month period ended September 30, 2014 compared to the same periods of 2013.
Non-interest income was $4.4 million and $12.9 million for the three and nine months ended September 30, 2014, compared to $2.4 million and $7.2 million for the same periods in 2013. The $2.0 million, or 83.3%, increase in third quarter 2014 non-interest income was primarily the result of increased net gains on the sale of securities. The $5.7 million, or 79.2%, increase in non-interest income for the year-to-date period primarily reflected increased net gains on security sales and the recovery of all past due interest, late charges and legal and other expenses as part of a settlement of previously charged-off commercial real estate loans, and a first quarter gain from a divestiture of retail banking operations in Monroe County.
Non-interest expense for the three months ended September 30, 2014 decreased $281 thousand, or 3.5%, to $7.8 million compared to $8.1 million for the same period of 2013. The decrease in non-interest expense for the three-month period in 2014 resulted primarily from reductions in FDIC and OCC assessments due to an improvement in the Bank's risk category, as well as decreases in bank shares tax, legal and insurance expenses, partially offset by higher OREO expenses and other operating expenses. For the year-to-date period ended September 30, non-interest expense totaled $24.7 million in 2014 compared to $24.3 million in 2013. The $458 thousand increase resulted primarily from increases in OREO-related expenses and other operating expenses, partially offset by reductions in the expense categories mentioned above for the quarterly change. The increase in OREO-related expenses reflected valuation adjustments of several OREO properties, including the Company's transfer of the Stroudsburg, Pennsylvania office from bank premises and equipment to OREO due to a change in the Bank's strategic purpose for the former branch office. Included in other operating expenses was a $352 thousand loss incurred on the abandonment of certain software not utilized by the Bank as originally intended.
Improved Asset Quality
The Bank's asset quality ratios continued to improve through September 30, 2014, reflecting our continued focus on aggressive problem credit resolutions. The Bank recorded net recoveries of $3.5 million for the nine months ended September 30, 2014, compared to $1.5 million for the same nine months of 2013.
The Bank received a substantial legal settlement in the amount of $5.8 million resulting from judgments filed by the Bank pursuant to a large credit relationship during the second quarter of 2014. Of the total amount received, $3.6 million represented full recovery of previously charged-off loans, which was the primary factor leading to the increase in the credit for loan and lease losses of $3.2 million for the nine months ended September 30, 2014. The remainder of the settlement represented satisfaction of all past due interest and late charges and reimbursement of all legal fees and other related expenses associated with these credits incurred and paid by the Bank, which, as previously mentioned, favorably impacted the Company's year-to-date non-interest income.
Total non-performing loans were $5.6 million at September 30, 2014, a decrease of $787 thousand, or 12.3%, from December 31, 2013. The ratio of non-performing loans to total loans improved to 0.82% at September 30, 2014, compared to 0.99% at December 31, 2013, a decrease of 17 basis points. (The FDIC average for commercial banks with assets between $300 million and $1 billion at September 30, 2014, was 1.17%.) The allowance for loan and lease losses as a percentage of total loans was 1.76%. (The above described FDIC peer group average at September 30, 2014 was 1.51%.) The Bank had an annualized ratio of net recoveries to average loans outstanding for the nine months ended September 30, 2014 of 0.71%, due to the previously mentioned commercial real estate loans recovery totaling $3.6 million. (The average net charge-offs to average loans outstanding for the FDIC peer group at September 30, 2014 was 0.16%.)
Financial Condition
Total assets amounted to $982.1 million at September 30, 2014 compared $1.0 billion at December 31, 2013. Total loans (before unearned income, deferred fees and the allowance for loan and lease losses) at September 30, 2014 were $677.4 million, an increase of $34.1 million, or 5.3%, compared to December 31, 2013 and up $7.1 million, or 1.1%, compared to June 30, 2014. Total deposits at September 30, 2014 were $803.2 million, a decrease of $81.5 million from December 31, 2013, which primarily reflected the Monroe County retail banking activity divestiture and continued run-off of certificates of deposit in the ongoing low interest rate environment. In contrast, total deposits increased $33.0 million or 4.3% from June 30, 2014 due primarily to normal seasonal inflows of municipal deposits. Total borrowed funds were $104.1 million at September 30, 2014 compared to $62.4 million at December 31, 2013.
At September 30, 2014, all of the Bank's regulatory capital ratios were in compliance with the OCC Consent Order mandated minimums of Total risk-based capital of 13.0% and Tier 1 leverage ratio of 9.0%. Specifically, First National Community Bank's capital ratios were as follows: Total risk-based capital ratio of 15.28%, Tier 1 risk-based capital ratio of 14.02%, and Tier 1 leverage ratio of 10.05%. The capital ratios at September 30, 2014 represent excess capital dollars of $15.8 million and $10.2 million, respectively, above the OCC Consent Order mandated minimums of Total risk-based capital of 13.0% and the Tier 1 leverage ratio of 9.0%. The capital ratios at September 30, 2014 represent excess capital dollars of $36.6 million and $48.8 million, respectively, above the minimum capital required to be considered well capitalized under the prompt corrective action provision of current banking regulations.
Availability of Filings
A copy of the Company's Form 10-Q for the quarter ended September 30, 2014 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. The Company's September 30, 2014 quarterly report on Form 10-Q is also available on the Investor Relations page of the Company's website, www.fncb.com, and on the SEC website at: http://www.sec.gov/edgar/searchedgar/companysearch.html
About First National Community Bank:
First National Community Bancorp, Inc. is the bank holding company of First National Community 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 has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.
INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
First National Community Bank
(570) 348-6419
james.bone@fncb.com
Insider buy
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First National Community Bank Exceeded All Regulatory Capital Levels Mandated by the OCC Consent Order at June 30, 2014
9 days 18 hours 3 minutes ago - DJNF
DUNMORE, Pa., Aug. 11, 2014 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQB: FNCB), today announced that as of June 30, 2014 its wholly owned subsidiary, Dunmore, Pennsylvania based First National Community Bank, was in full compliance with all regulatory capital levels that were required by the Bank's OCC Consent Order.
At June 30, 2014, the Bank's Total risk-based capital ratio was 14.74%, which was above the 13.00% required by the Order, and its Tier 1 leverage capital ratio was 9.62%, which was above the 9.00% required by the Order. The Bank's Total risk-based capital increased 131 basis points, and its Tier 1 leverage ratio increased 130 basis points at June 30, 2014 compared to December 31, 2013.
"This significant accomplishment is the result of the collective efforts of our Board, management team and every employee working diligently to improve the Bank's financial condition and to maintain the confidence of our loyal shareholders, customers and the communities we serve," said Steven R. Tokach, President and Chief Executive Officer. "Our strong capital position enables FNCB to remain an active competitor in Northeast Pennsylvania, and we look forward to being a significant factor in the growth of this region."
About First National Community Bank:
First National Community Bancorp, Inc. is the bank holding company of First National Community 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 has been operating under its current name since 1988. For more information about FNCB, visit www.fncb.com.
INVESTOR CONTACT:
James M. Bone, Jr., CPA
Executive Vice President and
Chief Financial Officer
First National Community Bank
(570) 348-6419
james.bone@fncb.com
Press Release: First National Community Bancorp, Inc. Reports Second Quarter 2014 Net Income of $6.6 Million
9 days 17 hours 59 minutes ago - DJNF
First National Community Bancorp, Inc. Reports Second Quarter 2014 Net Income of $6.6 Million
FNCB Exceeded All Regulatory Capital Levels Mandated by the OCC Consent Order at Quarter End
PR Newswire
DUNMORE, Pa., Aug. 11, 2014
DUNMORE, Pa., Aug. 11, 2014 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQB: FNCB), the parent company of Dunmore-based First National Community Bank, today announced a continuation of favorable operating results for the second quarter and six months ended June 30, 2014. The Company reported net income of $6.6 million, or $0.40 per basic and diluted share, for the second quarter of 2014, compared to net income of $720 thousand, or $0.04 per basic and diluted share, for the same quarter of 2013. Net income for the six months ended June 30, 2014, was $10.1 million, or $0.61 per basic and diluted share, compared to net income of $2.5 million, or $0.15 per basic and diluted share, for the comparable period of 2013. The improved performance for the second quarter and six month periods resulted primarily from increases in the credit for loan and lease losses, non-interest income and net interest income, partially offset by an increase in non-interest expense.
Performance Highlights:
-- At June 30, 2014, the Bank exceeded all regulatory capital levels
mandated by the OCC Consent Order
-- Year-to-date annualized return on average equity of 50.62%
-- Year-to-date annualized return on average assets of 2.09%
-- Net interest income growth of 4.1% for the six months ended June 30, 2014
-- Net loan growth of 4.6% for the six months ended June 30, 2014
-- A 6 basis point improvement in the second quarter ratio of non-performing
loans to total loans to 0.83%, compared to 0.89% at March 31, 2014, and a
16 basis point improvement compared to 0.99% at December 31, 2013
-- A 12.9% decrease in non-performing loans from December 31, 2013
-- Other real estate owned ("OREO") was reduced by $1.1 million, or 25.1%,
compared to December 31, 2013
"Our strong operating performance through the first six months of 2014 reflects the momentum established in 2013, upon which we continue to build," said Steven R. Tokach, President and Chief Executive Officer. "The Company's bottom-line results were substantially improved in comparison to the prior year as a result of stable margins, continued solid asset quality metrics along with our focus on operating cost containment. We continued to effectively build our loan portfolio with 4.6% net loan growth through the midpoint of 2014, and we realized additional success with our efforts to address non-performing loans and other real estate owned. Importantly, at quarter end the Bank was in full compliance with all OCC Consent Order mandatory minimum capital requirements. We believe that we are in a strong financial condition and well positioned to continue to compete for profitable growth opportunities within our Northeastern Pennsylvania service area."
Substantial Recovery on Previously Charged-Off Commercial Loans
During the second quarter of 2014, the Company received a substantial legal settlement in the amount of $5.8 million resulting from judgments filed by the Company pursuant to a large credit relationship. Of the total amount received, $3.6 million represented full recovery of previously charged-off loans, which was the primary factor leading to the increase in the credit for loan and lease losses of $4.0 million and $4.4 million for the three and six months ended June 30, 2014, respectively. The remainder of the settlement represented satisfaction of all past due interest and late charges and reimbursement of all legal fees and other related expenses associated with these credits incurred and paid by the Company. The Company's increase in non-interest income for the second quarter and six months ended June 30, 2014 of $2.7 million and $3.7 million, respectively, resulted primarily from this settlement, coupled with net gains on the sale of investment securities.
Summary Results for the Three and Six Months Ended June 30, 2014
Net interest income before credit for loan and lease losses was $6.7 million for the second quarter, and $13.2 million for the six months ended June 30, 2014 compared to $6.3 million and $12.7 million for the same periods in 2013. The increase was primarily a result of lower interest expense on deposits and higher interest and dividend income on securities. The Bank's second quarter 2014 net interest margin was 3.16%, a decrease of 10 basis points from the prior year period, and an increase of 6 basis points compared to the first quarter of 2014. Interest expense for the three and six months ended June 30, 2014 decreased $268 thousand and $552 thousand, respectively, compared to the same periods in 2013, as a result of an 18 basis-point reduction in the Bank's average cost of funds, coupled with lower average balances of interest-bearing liabilities for both the three and six months ended June 30, 2014.
Non-interest income was $5.0 million and $8.4 million for the three and six months ended June 30, 2014, compared to $2.3 million and $4.7 million for the same periods in 2013. The increase in second quarter 2014 non-interest income was primarily the result of increased net gains on the sale of securities and recoveries related to two legal settlements, one of which was the recovery of all past due interest, late charges and legal and other expenses as part of a settlement of previously charged-off commercial real estate loans, and the other was a recovery in connection with the Shareholder Derivative Suit. The increase in non-interest income for the six months ended June 30, 2014, was primarily the result of the legal settlements detailed above, net gains on the sale of securities and a first quarter gain from a divestiture of retail banking operations in Monroe County.
Non-interest expense for the three and six months ended June 30, 2014 was $9.0 million and $17.0 million, respectively, compared to $7.9 million and $16.2 million for the same periods of 2013. The increased non-interest expense for both the three- and six-month periods in 2014 was a result of higher other real estate owned expenses associated with valuation adjustments of several OREO properties, including the Company's transfer of the Stroudsburg, Pennsylvania office from bank premises and equipment to OREO due to a change in the Bank's strategic purpose for the former branch office. Partially offsetting the increase in non-interest expense were decreases in insurance expenses, regulatory assessments and loan collection expenses, which reflected the Company's improved financial position and asset quality metrics.
Improved Asset Quality
The Bank's asset quality ratios continued to improve through June 30, 2014, reflecting our continued focus on aggressive problem credit resolutions. The Bank recorded net recoveries of $3.7 million for the six months ended June 30, 2014, compared to $1.3 million for the same six months of 2013.
Total non-performing loans were $5.6 million at June 30, 2014, a decrease of $825 thousand, or 12.9%, from December 31, 2013. The ratio of non-performing loans to total loans improved to 0.83% at June 30, 2014, compared to 0.99% at December 31, 2013, a decrease of 16 basis points. (The FDIC average for commercial banks with assets between $300 million and $1 billion at June 30, 2014, was 1.27%). The allowance for loan and lease losses as a percentage of non-accrual loans was 219% at June 30, 2014 compared with 221% at December 31, 2013. (The above described FDIC peer group average was 270% at June 30, 2014). The allowance for loan and lease losses, as a percentage of total loans was 1.82% (The above described FDIC peer group average at June 30, 2014 was 1.55%) The Bank had a ratio of net recoveries to average loans outstanding for the six months ended June 30, 2014 of 0.57%, due to the previously mentioned commercial real estate loans recovery totaling $3.6 million. (The average net charge-offs for the FDIC peer group at June 30, 2014 was 0.16%).
Financial Condition
The Company's total assets at June 30, 2014 were $957.9 million compared $1.0 billion at December 31, 2013. Total loans (before allowance for loan and lease losses) at June 30, 2014 were $671.0 million, an increase of $27.1 million compared to December 31, 2013 and up $16.8 million compared to March 31, 2014. Total deposits at June 30, 2014 were $770.2 million, a decrease of $114.5 million from December 31, 2013, reflective of normal seasonal outflows of municipal deposits, the Monroe County retail banking activity divestiture and continued run-off of certificates of deposit in the low interest rate environment. Total borrowed funds were $112.7 million at June 30, 2014 compared to $62.4 million at December 31, 2013.
At June 30, 2014, First National Community Bank's capital ratios were as follows: Total risk-based capital ratio of 14.74%, Tier 1 risk-based capital ratio of 13.48%, and Tier 1 leverage ratio of 9.62%. As of June 30, 2014, all of the Bank's regulatory capital ratios were in compliance with the OCC Consent Order mandated minimums of Total risk-based capital of 13% and Tier 1 leverage ratio of 9%.
Availability of Filings
A copy of the Company's Form 10-Q for the quarter ended June 30, 2014 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. The Company's June 30, 2014 quarterly report on Form 10-Q is also available on the Investor Relations page of the Company's website, www.fncb.com, and on the SEC website at:
http://www.sec.gov/edgar/searchedgar/companysearch.html
About First National Community Bank:
(MORE TO FOLLOW) Dow Jones Newswires
August 11, 2014 16:23 ET (20:23 GMT)
FNCB reaches regulatory milestone
http://thetimes-tribune.com/news/business/fncb-reaches-regulatory-milestone-1.1734937
First National Community Bancorp, Inc. Reports First Quarter 2014 Net Income of $3.5 Million
Date : 05/12/2014 @ 4:12PM
Source : PR Newswire (US)
Stock : First National Community Bancorp, Inc. (QB) (FNCB)
Quote : $5.45 0.0 (0.00%) @ 4:26PM
DUNMORE, Pa., May 12, 2014 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQB: FNCB), the parent company of Dunmore-based First National Community Bank, today announced its operating results for the quarter ended March 31, 2014. The Company reported net income of $3.5 million, or $0.21 per basic and diluted share, compared to net income of $1.7 million or $0.11 per basic and diluted share, for the prior year first quarter. The improved performance for the first quarter 2014 was a result of higher non-interest income, primarily related to a net gain on the sale of securities, an increase in the credit for loan and lease losses, and lower non-interest expense compared to the first quarter 2013.
Performance Highlights:
•A 7.2% increase in net interest income after credit for loan and lease losses, compared to prior year quarter
•Continued improvement in asset quality metrics, with a 9.2% decrease in non-performing loans from December 31, 2013
•A 10 basis point improvement in the ratio of non-performing loans to total loans to 0.89%, compared to 0.99% at December 31, 2013
•$3.4 million in other real estate owned, representing a 19.4% reduction compared to December 31, 2013, and a 12.5% decline compared to March 31, 2013
•An increase of $4.3 million, or 4.7%, in the Bank's total risk-based capital to $94.3 million at March 31, 2014 from December 31, 2013.
"We believe our $3.5 million first quarter profit is indicative of our solid all-around performance, which included strong loan growth, improved asset quality and effective management of non-interest expense," said Steven R. Tokach, President and Chief Executive Officer. "This was our fifth consecutive quarter of positive net earnings, which started in the first quarter of 2013, and indicates to us that 2013 was an inflection point for the Bank's performance. During this 15 month period we have substantially strengthened our capital position, continuously improved our asset quality metrics, significantly reduced non-interest expense and realized strong organic loan growth across our portfolios. During the first quarter we completed the sale of our Monroe County retail banking presence, which allowed us to refocus our service area, and realize a gain of more than $600 thousand from the sale. We believe that the significant progress realized during the last five quarters positions FNCB for solid performance through the remainder of 2014."
Summary Results for the Three Months Ended March 31, 2014
Net interest income before credit for loan and lease losses was $6.6 million for the first three months of 2014, compared to $6.4 million for the same period in 2013, resulting mainly from a decrease in funding costs. Net interest margin for the three months ended March 31, 2014 was 3.10%, a decrease of 17 basis points from the same period in 2013. Interest expense was $1.6 million for the three months ended March 31, 2014, reflecting a decrease of $284 thousand, or 15.29%, compared to the same period in 2013,and resulting from an 18 basis-point decline in the Bank's cost of funds, partially offset by an increase in average interest-bearing liabilities.
Non-interest income was $3.5 million for the three months ended March 31, 2014, compared to $2.5 million for the same period in 2013. The increase in non-interest income was primarily the result of $726 thousand increase in net gains on the sale of securities, and a $607 thousand gain on branch divestitures.
Non-interest expense for the three months ended March 31, 2014 was $8.0 million, a decrease of $314 thousand from $8.3 million in the same period in 2013. Professional fees, consisting of accounting and consulting expenses, decreased by $101 thousand for the quarter ended March 31, 2013 to $450 thousand for the same period in 2014. Professional fees are expected to continue to decline to more normalized levels in coming quarters, reflecting less reliance on outside advisors and consultants.
Improved Asset Quality
The Company's asset quality ratios continued to improve through March 31, 2014 as a result of aggressive problem credit resolutions. The Company's total non-performing loans were $5.8 million at March 31, 2014, a decrease of $587 thousand, or 9.21%, from December 31, 2013. The ratio of non-performing loans to total loans improved 10 basis points to 0.89% at March 31, 2014, compared to 0.99% at December 31, 2013. (The FDIC average for commercial banks with assets between $100 million and $1 billion at March 31, 2014 was 1.38%). The allowance for loan and lease losses as a percentage of loans was 1.93% at March 31, 2014 versus 2.18% at the end of 2013. (The above described FDIC peer group average was 1.59% at March 31, 2014). The Company's ratio of net charge-offs (recoveries) to average loans outstanding for the quarter ended March 31, 2014 was (0.02) % reflecting net recoveries of $142 thousand in the quarter. (The above described FDIC peer group had average net charge-offs of 0.03% for the quarter ended March 31, 2014.)
Financial Condition
The Company's total assets at March 31, 2014 were $974.1 million, a decrease of $29.7 million as compared to December 31, 2013, which reflected a decrease in cash and cash equivalents resulting from the decrease in deposits. Total loans (before allowance for loan and lease losses) at March 31, 2014 were $654.2 million, an increase of $10.3 million as compared to December 31, 2013. Total deposits at March 31, 2014 were $835.2 million, a decrease of $49.5 million from December 31, 2013, which resulted primarily from cyclical deposit trends of municipal customers and the Company's first quarter branch divestiture. Total borrowed funds of $69.8 million at March 31, 2014 were up $7.4 million from December 31, 2013.
At March 31, 2014, First National Community Bank's capital ratios were as follows: total risk-based capital ratio of 13.86%, tier 1 risk-based capital ratio of 12.60%, and tier 1 leverage ratio of 8.76%.
[....]
http://ih.advfn.com/p.php?pid=nmona&article=62170662
* I do not own shares of FNCB at this time.
Quarterly Report (10-q)
Date : 05/12/2014 @ 4:06PM
Source : Edgar (US Regulatory)
Stock : First National Community Bancorp, Inc. (QB) (FNCB)
Quote : $5.45 0.0 (0.00%) @ 4:26PM
[....]
Equity
Total shareholders’ equity increased $6.9 million to $40.5 million at March 31, 2014 from $33.6 million at December 31, 2013. Net income of $3.5 million and a $3.4 million increase in accumulated other comprehensive income were the primary factors leading to the capital improvement. The increase in accumulated other comprehensive income was primarily attributed to appreciation in the fair value of securities held in the available-for-sale portfolio. Book value per common share was $2.46 at March 31, 2014 compared to $2.04 at December 31, 2013.
<page 54>
[....]
http://ih.advfn.com/p.php?pid=nmona&article=62170496
*P/B remains high at 2.2 . On average all banks in Pennsylvania sell at 1.2 X BV.... and nationally banks with $1B in assets sell on average 1.55 X BV.
Marker:
First National Commu (FNCB)
$5.45 0.0 (0.00%)
Volume: 725
First National Commu (FNCB)
$9.9 up 1.2 (13.79%)
Volume: 14,057
Mid-day snapshot of pps
P/B now at 4.9749
Why?
Wow. This defies all reason.
First National Commu (FNCB)
$8.47 up 0.87 (11.45%)
Volume: 11,170
Price to Book now stands at an eye-popping 4.2563
National average on P/B for banks in the NE region of the country is 1.15...and an average P/E of 18.8.
National average on P/B for banks with $1B - $5B in assets is 1.44....and an average P/E of 17.7
Is this bank in better than average financial condition? Yes. Very much so. However the rapid increase from what was allready a very robust 2.2 P/B to a frothy industry leading 3.63 suggests to me someone knows something that isn't general knowledge yet. ??
At $7.60 the banks' P/B is 3.63
Oversold? Imo, very!
FNCB presentation from shareholder meeting Dec 23rd
http://www.sec.gov/Archives/edgar/data/1035976/000114420413068598/v363509_ex99-1.htm
Reviewed FNCB's financials that they reported for 6/30/2013 and the call report from 9/30/2013.
Reading through their latest annual report FNCB specifically points out that they are trying to regain "normalized status with their industry regulators'. They are still operating under the consent order with the office of the comptroller of the currency (OCC) and the written agreement with the Fed Reserve Bank of Philadelphia.
They state they are close to comply with all provisions under those orders except the capital ratios. FNCB needs their risk based capital level at 13% and they state they are within striking distance of that ratio.
Their 6/30/2013 reported risk based capital level was 12.27%.
In their 9/30/2013 call report, risk based capital level is 12.62%
There is a good possibility that just assuming similar qtr over qtr. progress that they will hit a 13% risk based capital level for the 12/31/2013 qtr.
FNCB is close to comply with all provisions and the consent order should be lifted soon. That will enable them to start paying a dividend again (which with the high insider ownership is likely) and better access to capital markets.
good luck FNCB shareholders
56Chevy,
First National Community Bancorp, Inc. Announces Third Quarter 2013 Net Income of $1.9 Million
Print
Alert
First National Community Bancorp, Inc. (QB) (USOTC:FNCB)
Intraday Stock Chart
Today : Tuesday 12 November 2013
Click Here for more First National Community Bancorp, Inc. (QB) Charts.
DUNMORE, Pa., Nov. 12, 2013 /PRNewswire/ -- First National Community Bancorp, Inc. (OTCQB: FNCB), the parent company of Dunmore-based First National Community Bank, today announced continued improvement in operating results for the third quarter and nine months ended September 30, 2013, compared to the prior year periods. The Company reported net income of $1.9 million, or $0.11 per basic and diluted share, compared to a net loss of $6.5 million, or $(0.40) per basic and diluted share, for the third quarter of 2012. Net income for the nine months ended September 30, 2013 was $4.3 million, or $0.26 per basic and diluted share, compared to a net loss of $8.7 million, or $(0.53) per basic and diluted share, for the comparable period of 2012. The improved performance for the quarter and nine months ended September 30, 2013 resulted primarily from: a reduction in the allowance for loan and lease losses reserve of $1.2 million and $2.4 million respectively, compared with loan and lease loss provisions of $3.8 million and $3.4 million for the prior year comparable periods; an increase in non-interest income of $0.7 million and $2.5 million for the respective periods, primarily reflecting increased gains on the sale of securities; and decreased non-interest expense of $3.1 million and $6.7 million for the respective periods, primarily due to successful cost containment initiatives and reduced reliance on outside consultants.
Performance Highlights:
A $59.5 million increase in net loans compared to December 31, 2012
A $3.1 million, or 27.8%, decrease in third quarter non-interest expense, and a $6.7 million, or 21.6%, reduction in non-interest expense for the first nine months, compared with the prior year comparable periods
A 20 basis point improvement, to 1.10%, in the third quarter ratio of non-performing loans to total loans, compared to 1.30% at June 30, 2013, and a 52 basis point improvement, compared with 1.62% at December 31, 2012
A $2.5 million, or 25.6%, decrease in non-performing loans from December 31, 2012
The Bank's total risk-based capital of $84.8 million, or 12.62% of risk-weighted assets at September 30, 2013, was up $6.4 million from December 31, 2012
"Our third quarter 2013 results represent continued meaningful improvement in the Bank's operating performance and encompasses our focus on organic loan generation, core deposit (demand deposit and savings accounts) growth, improving our operating profile, and maintaining solid asset quality metrics," said Steven R. Tokach, President and Chief Executive Officer. "Despite sluggish economic activity across our market area, we generated annualized net loan growth of nearly 14% through the first three quarters, reflecting strong activity in our residential and commercial real estate portfolios, as well as solid gains in our consumer lending portfolio. Our asset quality has continued to improve throughout 2013, reflecting our commitment to sound underwriting and credit monitoring practices. Non-performing loans at September 30, 2013 were $7.2 million, down from $8.3 million and $9.7 million at June 30, 2013, and at December 31, 2012, respectively. We believe that this substantive improvement reflects effective efforts to manage problem credits through heightened and effective work-out activity on non-performing loans."
Summary Results for the Three and Nine Months Ended September 30, 2013
Net interest income before the credit for loan and lease losses was $6.4 million for the three months, and $19.1 million for the nine months ended September 30, 2013, compared to $6.8 million and $21.0 million for the respective periods in 2012. The reduced net interest income for the third quarter 2013 was a result of lower yields on average interest-earning assets, partially offset by reduced cost of funds and an increase in average loan balances, as a result of strong third quarter loan demand. Lower net interest income for the nine months ended September 30, 2013 was a result of a decline in the yield on average interest-earning assets coupled with a decrease in average interest-earning assets, which was partially mitigated by a decrease in average interest-bearing liabilities, and to a lesser extent, a decline in the cost of funds.
The tax-equivalent net interest margin for the third quarter 2013 was 3.17%, a decrease of 12 basis points compared with the third quarter 2012. Third quarter 2013 interest income on a tax equivalent basis declined by $912 thousand, compared with the prior year quarter, primarily as a result of a 27 basis point decrease in the yield on average interest-earning assets. Interest expense for the third quarter 2013 declined by $394 thousand, or 17.9%, compared to the third quarter 2012 reflecting an 18 basis point decrease in the cost of funds and a $17.5 million reduction in average interest-bearing liabilities.
Non-interest income was $2.4 million and $7.2 million for the three and nine months ended September 30, 2013, compared to $1.7 million and $4.7 million for the same periods in 2012. The increase in non-interest income was primarily the result of increased net gains on the sale of securities.
Contact Information
First National Community Bancorp, Inc.,
102 East Drinker Street
Dunmore, PA 18512
(570) 346-7667
Investor Relations Contact
Ms. Stephanie A. Westington
(570) 348-6446
stephanie.westington@fncb.com
http://www.snl.com/IRWebLinkX/corporateprofile.aspx?iid=4038801
This is a very healthy bank from a cap ratio perspective...consequently the P/B is high as well at 2.2
No TARP
http://banktracker.investigativereportingworkshop.org/banks/pennsylvania/dunmore/first-national-community-bank/
*I do not own shares of FNCB at this time nor do I plan to anytime soon. The bank is worth watching for future opportunities.
FNCB Declares Cash Dividend
May 13, 2009 4:15:00 PM
Copyright Business Wire 2009
Email Story Discuss on ZenoBank
View Additional ProfilesDUNMORE, Pa.--(BUSINESS WIRE)-- The Board of Directors of First National Community Bancorp, Inc. ("the Company")(OTCBB:FNCB) declared a second quarter cash dividend of $.02 cents per share payable June 15, 2009 to shareholders of record on June 1, 2009. This payment represents a reduction in the cash dividend from the prior period as a result of the Company's current strategy to conserve capital.
The Company's subsidiary, First National Community Bank, conducts business from twenty offices located throughout Lackawanna, Luzerne, Wayne, and Monroe counties.
In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of management or the board of directors, and (c) statements of assumptions, such as economic conditions in the Company's market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "intends", "will", "should", "anticipates", or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis, as of this date. The Company does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Company files from time-to-time with the Securities and Exchange Commission, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed by the Company. Please also carefully review any Current Reports on Form 8-K filed by the Company with the Securities and Exchange Commission.
Source: First National Community Bancorp, Inc.
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First National Community Bancorp
Inc.
William Lance
570-348-6438
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