DUNMORE, Pa., Jan. 29, 2016 (GLOBE NEWSWIRE) -- First National Community Bancorp, Inc. (OTCQX:FNCB), the parent company of Dunmore-based First National Community Bank (the “Bank”), today reported record net income of $35.8 million, or $2.17 per basic and diluted share, for the year ended December 31, 2015, an increase of $22.4 million, or 167.1%, compared to $13.4 million, or $0.81 per basic and diluted share, for the year ended December 31, 2014.

167% Earnings Increase Included Reversal of Deferred Tax Asset Valuation Allowance

The Company’s earnings performance was significantly impacted by the non-recurring reversal of a deferred tax asset (“DTA”) valuation allowance, which resulted in the Company recording a tax benefit of $27.8 million in the consolidated statement of income for the year ended December 31, 2015. The reversal of the DTA valuation allowance indicates that upon consideration of all objectively verifiable evidence, management determined that it is more likely than not that future taxable income will be available to utilize the benefit of the Company’s net deferred tax assets, excluding DTAs for charitable contribution carryforwards, going forward. Also impacting the Company’s earnings performance in 2015 were decreases in non-interest income and the credit for loan and lease losses of $7.1 million and $4.5 million, respectively, which were partially offset by a $5.1 million reduction in non-interest expense and a $0.9 million increase in net interest income. For the fourth quarter of 2015, the Company recorded net income of $29.2 million, or $1.77, per basic and diluted common share, compared to a net loss of $31 thousand or $0.00 per basic and diluted share, for the same quarter of 2014. The improvement in fourth quarter results primarily reflected the reversal of DTA valuation allowance, increases in net interest income and the credit for loan and lease losses, partially offset by a reduction in non-interest income.

With the reversal of the DTA valuation allowance, at December 31, 2015, shareholders’ equity increased $34.8 million, or 67.7%, to $86.2 million, or $5.22 per share, from $51.4 million, or $3.12 per share, at December 31, 2014. Return on average assets and return on average shareholders’ equity equaled 3.57% and 63.24%, respectively in 2015, compared to 1.38% and 29.50%, respectively, in 2014. For the three months ended December 31, 2015, return on average assets and return on average shareholders’ equity were 10.99% and 192.68%, respectively, compared to (0.01)% and (0.24)%, respectively, for the same three months of 2014.

Performance Highlights:

• Earnings per share increased $1.36 to $2.17 in 2015 from $0.81 in 2014.
• Net interest income before the credit for loan and lease losses grew by 3.3% over 2014.
• Non-interest expense decreased $5.1 million, or 15.2% from 2014.
• Strong growth in net loans for 2015 of $66.2 million, or 10.0%.
• Asset quality improvement as evidenced by a 10.7% decline in nonperforming assets compared to December 31, 2014.
• Tangible book value improved 68.1% to $5.21 per share at December 31, 2015 compared to $3.10 per share at December 31, 2014.
  
  

“2015 has proved to be pivotal for our Company as we achieved several significant milestones this year,” stated Dominick L. DeNaples, Chairman of the Board. “Our accomplishments in 2015, including the termination of all regulatory enforcement actions, reflected our continued resolve and commitment to strengthen the Company’s risk profile and profitability through the execution of sound balance sheet management strategies,” commented Steven R. Tokach, President and Chief Executive Officer.  “The reversal of the DTA valuation allowance further reinforces our confidence in the Company’s ability to generate sustained profitability and enhance shareholder value going forward, and underscores our belief that the Company has regained its position as a premier community banking franchise in Northeastern Pennsylvania,” concluded Mr. Tokach.

Summary Results for 2015

Net interest income before the credit for loan and lease losses increased $874 thousand, or 3.3%, to $27.4 million in 2015 from $26.5 million in 2014. The improvement in net interest income reflected a $1.3 million, or 21.9%, decrease in interest expense, which was due primarily to a 19 basis point reduction in the Company’s cost of funds to 0.61% in 2015 from 0.80% in 2014.  Having the greatest impact on funding costs was an $11.0 million principal payment and rate modification of the Company’s subordinated debentures decreasing the interest rate 450 basis points completed on June 30, 2015. As a result, interest expense on the subordinated debentures decreased $0.8 million. Overall, the cost of borrowed funds decreased 116 basis points to 2.01% in 2015 from 3.17% in 2014. Partially offsetting the decrease in interest expense was a $0.5 million, or 1.4%, decrease in interest income to $32.2 million in 2015 from $32.7 million in 2014. The reduction in interest income was primarily caused by a 25 basis point reduction in the tax-equivalent yield on earning assets to 3.50% in 2015 from 3.75% in 2014. The Company’s tax-equivalent margin decreased 9 basis points to 2.99% in 2015 from 3.08% in 2014. The margin contraction reflected repositioning of the Company’s investment securities portfolio from tax-free to taxable securities as part of tax planning strategies aimed at facilitating the reversal of the DTA valuation allowance, and a 17 basis point decrease in the tax-equivalent yield on the loan portfolio, partially offset by the positive effects of $26.8 million in growth in average earning assets.

Non-interest income decreased $7.1 million to $7.8 million in 2015 from $14.9 million in 2014. The 47.7% decrease was due largely to a decrease in net gains on the sale of investment securities of $4.3 million, coupled with non-recurring income earned in 2014. Net gains on the sale of investment securities were $2.3 million in 2015, a $4.3 million, or 65.4%, decrease compared to $6.6 million in 2014. In addition, non-interest income in 2014 included $2.1 million of non-recurring income received from the settlement of judgements filed pursuant to a large, previously charged-off, commercial credit relationship, and a $0.6 million net gain recorded on the divestiture of the Company’s retail banking operations in Monroe County, Pennsylvania.

Non-interest expense levels were positively impacted by continued improvement in the Company’s asset quality and risk profile, termination of regulatory enforcement actions and on-going cost containment initiatives. Non-interest expense decreased $5.1 million, or 15.2%, to $28.5 million in 2015 from $33.6 million in 2014. Specifically, the above factors contributed directly to reductions of $2.2 million, or 84.4%, in expense of other real estate owned, $1.4 million, or 75.7%, in legal expense, $0.9 million, or 47.3%, in regulatory assessments, $0.6 million, or 35.3% in professional fees and $0.3 million, or 30.7%, in insurance costs.

Improved Asset Quality

The Company’s asset quality continued to improve in 2015, which reflects the ongoing focus on sound problem credit resolutions and commitment to disciplined credit risk management. Total non-performing assets decreased $0.9 million, or 10.7%, to $6.9 million at December 31, 2015 from $7.8 million at December 31, 2014. A $1.7 million decrease in non-performing loans, including non-accruing troubled debt restructurings, was partially offset by a $0.9 million increase in other real estate owned (“OREO”). In the fourth quarter of 2015, the Company foreclosed upon a commercial property collateralizing a $3.5 million non-accrual commercial real estate loan. The property was transferred to OREO at its fair value less cost to sell of $1.5 million. The loan was supported by a governmental agency guarantee. Accordingly, the Company does not expect to incur any loss on the difference between the recorded investment of this loan and the fair value of the collateral less cost to sell.

The ratio of non-performing loans to total loans improved 30 basis points to 0.52% at December 31, 2015, compared to 0.82% at December 31, 2014. The allowance for loan and lease losses as a percentage of total loans was 1.21% at December 31, 2015 compared to 1.72% at the end of 2014. Net charge-offs as a percentage of average loans outstanding for the year ended December 31, 2015 was 0.20%. In comparison, the Company posted net recoveries as a percentage of average loans outstanding of 0.51% in 2014, which was largely due to the aforementioned favorable legal settlement.

Financial Position

Total assets increased $120.6 million, or 12.4%, to $1.1 billion at December 31, 2015 from $970.0 million at December 31, 2014. Net loans grew $66.2 million, or 10.0%, which reflected strong demand for both commercial and consumer loan products. In addition, available-for-sale securities increased $34.8 million, or 15.9%. The balance sheet was also impacted by the reversal of the DTA valuation allowance, which was the primary factor causing a $28.7 million increase in other assets. Total deposits increased $26.2 million, or 3.3%, to $821.5 million at December 31, 2015 from $795.3 million at the end of 2014. Specifically, non-interest-bearing demand deposits increased $30.5 million, or 24.6%, while interest-bearing deposits decreased $4.3 million, or 0.6%. The increase in non-interest bearing demand deposits primarily reflected the positive balance fluctuations of several large commercial customer relationships. The decrease in interest-bearing deposits was largely related to lower deposit balances of the Company’s municipal customers due to a state budget impasse, and the planned runoff of higher-costing certificates of deposit generated through QwickRate®, a national deposits listing service. These decreases were partially offset by the attainment of a large commercial deposit relationship. Due to their lower cost, the Company increased its utilization of FHLB borrowings as an alternative funding source of liquidity by $74.6 million or 121.9%. This was the primary factor leading to a $63.6 million, or 65.9%, increase in total borrowed funds. Partially offsetting the increase in FHLB advances was the $11.0 million principal repayment of the Company’s subordinated debentures.

Impacted by the DTA valuation allowance reversal, total shareholders’ equity improved $34.8 million, or 67.7%, to $86.2 million at December 31, 2015 from $51.4 million at the end of 2014.  Net income for 2015 of $35.8 million, which included an income tax benefit of $27.8 million related to the reversal of the DTA valuation allowance, was the primary factor leading to the Company’s improved capital position.

At December 31, 2015, the Company’s total risk-based capital ratio and the Tier 1 leverage ratio were 11.75% and 7.27%, respectively, at December 31, 2015. The respective ratios for the Bank at December 31, 2015 were 13.79% and 9.79%. The ratios for both the Company and the Bank 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, 2015.

Availability of Filings

Copies of the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on for 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. The Company’s SEC filings including Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are 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.

The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission (“SEC”), in its reports to shareholders, and in other communications by the Company, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to the Company’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 the Company’s 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 the Company’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 the Company’s 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 the Company to compete with other institutions for business; the composition and concentrations of the Company’s lending risk and the adequacy of the Company’s reserves to manage those risks; the valuation of the Company’s investment securities; the ability of the Company to pay dividends or repurchase common shares; the ability of the Company to retain key personnel; the impact of any pending or threatened litigation against the Company; the marketability of shares of the Company and fluctuations in the value of the Company’s share price;  the impact of the Company’s ability to comply with its regulatory agreements and orders; the effectiveness of the Company’s system of internal controls; the ability of the Company 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 the Company’s information technology systems; changes in consumer spending and saving habits; the nature, extent, and timing of governmental actions and reforms, and the success of the Company at managing the risks involved in the foregoing and other risks and uncertainties, including those detailed in the Company’s filings with the SEC.

The Company 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 the Company on its website or otherwise.  The Company 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 the Company 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 the Company periodically files with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2014.

[The Company provides tabular information as follows]



First National Community Bancorp, Inc.
Selected Financial Data
			Dec 31,				Sept 30,				Jun 30,				Mar 31,				Dec 31,
				2015				2015				2015				2015				2014
Per share data:
Net income (fully diluted)			$	1.77			$	0.14			$	0.05			$	0.21			$	-
Cash dividends declared			$	-			$	-			$	-			$	-			$	-
Book value			$	5.22			$	3.61			$	3.33			$	3.38			$	3.12
Tangible book value			$	5.21			$	3.60			$	3.32			$	3.36			$	3.10
Market value:
	High		$	5.50			$	6.05			$	6.55			$	5.40			$	6.65
	Low		$	5.06			$	5.02			$	5.15			$	5.25			$	5.60
	Close		$	5.25			$	5.19			$	6.05			$	5.26			$	6.00
Common shares outstanding				16,514,245				16,500,945				16,500,945				16,500,945				16,484,419
Selected ratios:
Annualized return on average assets				10.99	%			0.91	%			0.34	%			1.45	%			(0.01	)%
Annualized return on average shareholders' equity				192.68	%			16.38	%			5.89	%			26.34	%			(0.24	)%
Tier I leverage ratio				7.27	%			6.57	%			6.64	%			6.57	%			6.05	%
Total risk-based capital to risk-adjusted assets				11.79	%			11.20	%			11.60	%			12.96	%			13.67	%
Average shareholders' equity to average total assets				5.70	%			5.55	%			5.73	%			5.52	%			5.22	%
Yield on earning assets (FTE)				3.56	%			3.50	%			3.45	%			3.48	%			3.56	%
Cost of funds				0.48	%			0.51	%			0.73	%			0.75	%			0.79	%
Net interest spread (FTE)				3.08	%			2.98	%			2.72	%			2.73	%			2.77	%
Net interest margin (FTE)				3.15	%			3.07	%			2.85	%			2.85	%			2.90	%
Total delinquent loans/total loans				0.85	%			1.29	%			1.34	%			1.10	%			1.21	%
Allowance for loan and lease losses/total loans				1.21	%			1.36	%			1.51	%			1.63	%			1.72	%
Non-performing loans/total loans				0.52	%			0.93	%			0.84	%			0.77	%			0.82	%
Net charge-offs/average loans				0.02	%			0.04	%			0.14	%			0.01	%			0.02	%

 

First National Community Bancorp, Inc.
Year-to-Date Consolidated Statements of Income
					Year Ended
					December 31,
(in thousands, except share data)						2015				2014
Interest income
Interest and fees on loans					$	26,672			$	26,629
Interest and dividends on securities
	U.S. government agencies					4,036				3,494
	State and political subdivisions, tax-free					109				1,883
	State and political subdivisions, taxable					905				324
	Other securities					433				272
		Total interest and dividends on securities				5,483				5,973
Interest on interest-bearing deposits in other banks						46				71
			Total interest income			32,201				32,673
Interest expense
Interest on deposits						2,631				3,180
Interest on borrowed funds
	Interest on Federal Home Loan Bank of Pittsburgh advances					514				450
	Interest on subordinated debentures					1,450				2,281
	Interest on junior subordinated debentures					206				236
		Total interest on borrowed funds				2,170				2,967
			Total interest expense			4,801				6,147
Net interest income before credit for loan and lease losses						27,400				26,526
Credit for loan and lease losses						(1,345	)			(5,869	)
Net interest income after credit for loan and lease losses						28,745				32,395
Non-interest income
Deposit service charges						2,960				2,975
Net gain on the sale of securities						2,296				6,640
Net gain on the sale of mortgage loans held for sale						292				292
Net loss on the sale of education loans						-				(13	)
Net gain on the sale of other real estate owned						162				209
Gain on branch divestitures						-				607
Loan-related fees						442				440
Income from bank-owned life insurance						564				650
Legal settlements						184				2,127
Other						900				993
			Total non-interest income			7,800				14,920
Non-interest expense
Salaries and employee benefits						13,810				13,111
Occupancy expense						2,284				2,088
Equipment expense						1,657				1,471
Data processing expense						1,976				2,088
Regulatory assessments						950				1,801
Bank shares tax						705				522
Expense of other real estate owned						400				2,569
Legal expense						437				1,799
Professional fees						1,014				1,567
Insurance expense						659				951
Legal/regulatory settlements						777				1,500
Other operating expenses						3,795				4,102
			Total non-interest expense			28,464				33,569
Income before income taxes						8,081				13,746
Income tax (benefit) expense						(27,759	)			326
Net income					$	35,840			$	13,420
Income per share
	Basic				$	2.17			$	0.81
	Diluted				$	2.17			$	0.81
Cash dividends declared per common  share					$	-			$	-
Weighted average number of shares outstanding:
	Basic					16,499,622				16,472,660
	Diluted					16,499,622				16,472,871

 

First National Community 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)						2015				2015				2015				2015				2014
Interest income
Interest and fees on loans					$	7,032			$	6,693			$	6,475			$	6,472			$	6,671
Interest and dividends on securities
	U.S. government agencies					992				1,061				1,012				971				998
	State and political subdivisions, tax-free					18				19				22				50				204
	State and political subdivisions, taxable					458				324				97				26				53
	Other securities					102				92				82				157				66
		Total interest and dividends on securities				1,570				1,496				1,213				1,204				1,321
Interest on interest-bearing deposits in other banks						4				10				11				21				27
			Total interest income			8,606				8,199				7,699				7,697				8,019
Interest expense
Interest on deposits						628				677				643				683				745
Interest on borrowed funds
	Interest on Federal Home Loan Bank of Pittsburgh advances					147				128				119				120				116
	Interest on subordinated debentures					160				162				565				563				575
	Interest on junior subordinated debentures					56				50				51				49				87
		Total interest on borrowed funds				363				340				735				732				778
			Total interest expense			991				1,017				1,378				1,415				1,523
Net interest income before (credit) provision for loan and lease losses						7,615				7,182				6,321				6,282				6,496
(Credit) provision for loan and lease losses						(1,005	)			(191	)			345				(494	)			(240	)
Net interest income after (credit) provision for loan and lease losses						8,620				7,373				5,976				6,776				6,736
Non-interest income
Deposit service charges						742				799				745				674				758
Net (loss) gain on the sale of securities						(6	)			4				74				2,224				634
Net gain on the sale of mortgage loans held for sale						223				13				16				40				69
Net gain on the sale of other real estate owned						17				129				11				5				106
Loan-related fees						152				94				106				90				148
Income from bank-owned life insurance						149				145				135				135				154
Legal settlements						-				-				184				-				-
Other						180				195				274				251				194
			Total non-interest income			1,457				1,379				1,545				3,419				2,063
Non-interest expense
Salaries and employee benefits						4,228				3,240				3,203				3,139				3,302
Occupancy expense						619				500				532				633				534
Equipment expense						423				408				442				384				403
Data processing expense						556				471				501				448				532
Regulatory assessments						239				203				99				409				412
Bank shares tax						53				217				218				217				150
Expense of other real estate owned						62				91				147				100				74
Legal expense						106				80				88				163				371
Professional fees						234				193				286				301				327
Insurance expense						131				128				202				198				194
Legal settlement						777				-				-				-				1,500
Other operating expenses						1,159				884				962				790				1,031
			Total non-interest expense			8,587				6,415				6,680				6,782				8,830
Income (loss) before income taxes						1,490				2,337				841				3,413				(31	)
Income tax (benefit) expense						(27,719	)			-				22				(62	)			-
Net income (loss)					$	29,209			$	2,337			$	819			$	3,475			$	(31	)
Income per share
	Basic				$	1.77			$	0.14			$	0.05			$	0.21			$	-
	Diluted				$	1.77			$	0.14			$	0.05			$	0.21			$	-
Cash dividends declared per common  share					$	-			$	-			$	-			$	-			$	-
Weighted average number of shares outstanding:
	Basic					16,506,294				16,500,945				16,500,945				16,490,111				16,475,899
	Diluted					16,506,294				16,500,945				16,500,945				16,490,111				16,475,899

 

First National Community Bancorp, Inc.
Consolidated Balance Sheets
					Dec 31,				Sept 30,				Jun 30,				Mar 31,				Dec 31,
(in thousands)						2015				2015				2015				2015				2014
Assets
Cash and cash equivalents:
	Cash and due from banks				$	19,544			$	20,631			$	22,443			$	19,985			$	22,657
	Interest-bearing deposits in other banks					1,539				10,383				49,872				17,390				13,010
		Total cash and cash equivalents				21,083				31,014				72,315				37,375				35,667
Securities available for sale, at fair value						253,773				249,228				226,539				204,635				218,989
Stock in Federal Home Loan Bank of Pittsburgh at cost						6,344				4,298				2,684				3,061				2,803
Loans held for sale						683				4,634				138				-				603
Loans, net of net deferred costs and unearned income						733,716				723,166				683,588				672,165				670,267
Allowance for loan and lease losses						(8,790	)			(9,825	)			(10,328	)			(10,944	)			(11,520	)
Net loans						724,926				713,341				673,260				661,221				658,747
Bank premises and equipment, net						11,193				11,258				11,059				11,221				11,003
Accrued interest receivable						2,475				2,618				2,174				2,118				2,075
Intangible assets						137				179				220				261				302
Bank-owned life insurance						29,381				29,232				29,087				28,952				28,817
Other real estate owned						3,154				1,618				1,740				2,369				2,255
Other assets						37,469				7,799				8,455				9,028				8,768
			Total assets		$	1,090,618			$	1,055,219			$	1,027,671			$	960,241			$	970,029
Liabilities
Deposits:
	Demand (non-interest-bearing)				$	154,531			$	152,038			$	144,075			$	134,993			$	124,064
	Interest-bearing					667,015				700,004				721,293				640,118				671,272
		Total deposits				821,546				852,042				865,368				775,111				795,336
Borrowed funds:
	Federal Home Loan Bank of Pittsburgh advances					135,802				93,058				57,771				67,612				61,194
	Subordinated debentures					14,000				14,000				14,000				25,000				25,000
	Junior subordinated debentures					10,310				10,310				10,310				10,310				10,310
		Total borrowed funds				160,112				117,368				82,081				102,922				96,504
Accrued interest payable						11,165				11,187				11,344				10,788				10,262
Other liabilities						11,617				14,989				13,935				15,678				16,529
		Total liabilities				1,004,440				995,586				972,728				904,499				918,631
Shareholders' equity
Preferred stock						-				-				-				-				-
Common stock						20,643				20,626				20,626				20,626				20,605
Additional paid-in capital						62,059				61,939				61,870				61,801				61,781
Retained earnings (accumulated deficit)						3,714				(25,495	)			(27,832	)			(28,651	)			(32,126	)
Accumulated other comprehensive (loss) income						(238	)			2,563				279				1,966				1,138
		Total shareholders' equity				86,178				59,633				54,943				55,742				51,398
			Total liabilities and shareholders’ equity		$	1,090,618			$	1,055,219			$	1,027,671			$	960,241			$	970,029

 

First National Community Bancorp, Inc.
Summary Tax-equivalent Net Interest Income
					Three Months Ended
					Dec 31,				Sept 30,				Jun 30,				Mar 31,				Dec 31,
(dollars in thousands)						2015				2015				2015				2015				2014
Interest income
Loans:
Loans - taxable					$	6,694			$	6,371			$	6,148			$	6,148			$	6,340
Loans - tax-free						512				488				495				491				501
	Total loans					7,206				6,859				6,643				6,639				6,841
Securities:
Securities, taxable						1,552				1,477				1,191				1,154				1,117
Securities, tax-free						27				29				33				76				309
	Total interest and dividends on securities					1,579				1,506				1,224				1,230				1,426
Interest-bearing deposits in other banks						4				10				11				21				27
			Total interest income			8,789				8,375				7,878				7,890				8,294
Interest expense
Deposits						628				677				643				683				745
Borrowed funds						363				340				735				732				778
			Total interest expense			991				1,017				1,378				1,415				1,523
			Net interest income		$	7,798			$	7,358			$	6,500			$	6,475			$	6,771
Average balances
Earning assets:
Loans:
Loans - taxable					$	685,795			$	660,709			$	637,005			$	633,731			$	635,146
Loans - tax-free						43,429				41,746				42,225				41,125				40,477
	Total loans					729,224				702,455				679,230				674,856				675,623
Securities:
Securities, taxable						251,108				241,799				211,833				194,268				196,351
Securities, tax-free						1,713				1,707				2,007				4,283				17,055
	Total interest and dividends on securities					252,821				243,506				213,840				198,551				213,406
Interest-bearing deposits in other banks						6,797				12,185				18,984				34,708				43,618
			Total interest-earning assets			988,842				958,146				912,054				908,115				932,647
Non-earning assets						65,633				62,063				62,254				61,476				58,826
			Total assets		$	1,054,475			$	1,020,209			$	974,308			$	969,591			$	991,473
Interest-bearing liabilities:
Deposits					$	702,783			$	690,039			$	646,656			$	658,193			$	675,901
Borrowed funds						119,281				105,109				108,234				99,046				99,251
			Total interest-bearing liabilities			822,064				795,148				754,890				757,239				775,152
Demand deposits						146,457				143,140				137,674				132,316				139,336
Other liabilities						25,811				25,303				25,964				26,525				25,278
Shareholders' equity						60,143				56,618				55,780				53,511				51,707
			Total liabilities and shareholders' equity		$	1,054,475			$	1,020,209			$	974,308			$	969,591			$	991,473
Yield/Cost
Earning assets:
Loans:
Interest and fees on loans - taxable						3.90	%			3.86	%			3.86	%			3.88	%			3.99	%
Interest and fees on loans - tax-free						4.72	%			4.67	%			4.69	%			4.78	%			4.95	%
	Total loans					3.95	%			3.91	%			3.91	%			3.94	%			4.05	%
Securities:
Securities, taxable						2.47	%			2.44	%			2.25	%			2.38	%			2.28	%
Securities, tax-free						6.37	%			6.75	%			6.64	%			7.10	%			7.25	%
	Total interest and dividends on securities					2.50	%			2.47	%			2.29	%			2.48	%			2.67	%
Interest on interest-bearing deposits in other banks						0.24	%			0.33	%			0.23	%			0.24	%			0.25	%
			Total earning assets			3.56	%			3.50	%			3.45	%			3.48	%			3.56	%
Interest-bearing liabilities:
Interest on deposits						0.36	%			0.39	%			0.40	%			0.42	%			0.44	%
Interest on borrowed funds						1.22	%			1.29	%			2.72	%			2.96	%			3.14	%
			Total interest-bearing liabilities			0.48	%			0.51	%			0.73	%			0.75	%			0.79	%
			Net interest spread			3.08	%			2.98	%			2.72	%			2.73	%			2.77	%
			Net interest margin			3.15	%			3.07	%			2.85	%			2.85	%			2.90	%

 

First National Community Bancorp, Inc.
Asset Quality Data
				Dec 31,				Sept 30,				Jun 30,				Mar 31,				Dec 31,
(in thousands)					2015				2015				2015				2015				2014
At period end
Non-accrual loans, including non-accruing troubled debt restructured loans (TDRs)				$	3,788			$	6,741			$	5,757			$	5,184			$	5,522
Loans past due 90 days or more and still accruing					-				-				-				-				-
	Total non-performing loans				3,788				6,741				5,757				5,184				5,522
Other real estate owned (OREO)					3,154				1,618				1,740				2,369				2,255
	Total non-performing loans and OREO			$	6,942			$	8,359			$	7,497			$	7,553			$	7,777
Accruing TDRs				$	4,982			$	5,065			$	5,289			$	5,807			$	5,282
For the three months ended
Allowance for loan and lease losses
Beginning balance				$	9,825			$	10,328			$	10,944			$	11,520			$	11,898
Loans charged-off					198				968				1,192				277				427
Recoveries of charged-off loans					168				656				231				195				289
Net charge-offs					30				312				961				82				138
(Credit) provision for loan and lease losses					(1,005	)			(191	)			345				(494	)			(240	)
Ending balance				$	8,790			$	9,825			$	10,328			$	10,944			$	11,520

 

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

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