FNCB Bancorp, Inc. (FNCB) | Investment Case

1. Company Snapshot

1.a. Company Description

FNCB Bancorp, Inc.operates as the bank holding company for FNCB Bank that provides retail and commercial banking services to individuals, businesses, local governments, and municipalities in Northeastern Pennsylvania.The company offers checking, savings, money market, and certificate of deposit products.

It also provides residential mortgage loans, and home equity term loans and lines of credit; construction, land acquisition, and development loans; commercial real estate loans; commercial and industrial loans; consumer loans, such as secured and unsecured installment loans, automobile financing, lines of credit, and overdraft protection loans; state and political subdivision loans and leases; and purchased loans.In addition, the company offers debit cards; mobile and telephone banking, check imaging, and electronic statement services; remote deposit capture, merchant, treasury, and purchasing card services; and wealth management services.As of January 28, 2022, it operated 17 community offices located in Lackawanna, Luzerne, and Wayne Counties.

The company was formerly known as First National Community Bancorp, Inc.and changed its name to FNCB Bancorp, Inc.in October 2016.

FNCB Bancorp, Inc.was founded in 1910 and is headquartered in Dunmore, Pennsylvania.

Show Full description

1.b. Last Insights on FNCB

FNCB Bancorp, Inc. reported a 7.0% performance over the past 3 months, driven by a 32.6% increase in net income to $3.5 million, or $0.18 per diluted share, primarily due to a $1.6 million increase in net interest income. The company also received regulatory approvals for its merger with Peoples Financial Services Corp., potentially leading to future growth opportunities.

1.c. Company Highlights

Last Price	6.75
Change Percentage	5.30%
Open	6.41
Previous Close	6.41
Market Cap ( Millions)	134
Volume	82420
Year High	7.15
Year Low	5.17
M A 50	5.71
M A 200	6.01

FCF Yield	11.61%
Dividend Yield	0.00%
ROE	10.24%
Debt / Equity	151.17%
Net Debt / EBIDTA	-3684.24%
Price To Book	0.99
Price Earnings Ratio	10.26
Price To FCF	8.61
Price To sales	1.51
EV / EBITDA	-88.33

2. Transcript Summary

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3. NewsRoom

Peoples Financial Services Corp. and FNCB Bancorp, Inc. Announce Receipt of Regulatory Approvals for Merger

Jun -14

Source: prnewswire.com

FNCB Bancorp, Inc. Announces First Quarter 2024 Earnings

Apr -30

Source: globenewswire.com

Peoples Financial Services Corp. and FNCB Bancorp, Inc. Announce Receipt of Shareholder Approval for Merger

Mar -22

Source: prnewswire.com

FNCB Bancorp, Inc. Announces Fourth Quarter and Year to Date 2023 Earnings

Jan -30

Source: globenewswire.com

FNCB BANCORP INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of FNCB Bancorp, Inc. - FNCB

Jan -26

Source: prnewswire.com

FNCB Bancorp, Inc. Declares First Quarter 2024 Dividend

Jan -24

Source: globenewswire.com

FNCB Bancorp: High-Yield Stock Likely To Trade Sideways

Nov -22

Source: Seeking Alpha

FNCB Bancorp, Inc. Announces Third Quarter 2023 Results

Oct -30

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Customary Retail and Commercial Banking

Expected Growth: 4.5%

Growing demand for digital banking services, increasing adoption of cashless transactions, and a strong presence in the Pennsylvania market drive growth in FNCB Bancorp's customary retail and commercial banking segment.

7. Detailed Products

Personal Banking

FNCB Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

The company provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

FNCB Bancorp, Inc. offers mortgage lending services, including residential and commercial mortgage loans.

Wealth Management

The company provides wealth management services, including investment advice, portfolio management, and retirement planning.

Insurance Services

FNCB Bancorp, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

Online Banking

The company provides online banking services, including bill pay, fund transfers, and account management.

Mobile Banking

FNCB Bancorp, Inc. offers mobile banking services, including mobile deposit, account access, and payment services.

8. FNCB Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FNCB Bancorp, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for FNCB Bancorp, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FNCB Bancorp, Inc. is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants for FNCB Bancorp, Inc. is low due to the high barriers to entry in the banking industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for FNCB Bancorp, Inc. is high due to the presence of multiple competitors in the banking industry, including large national banks and community banks.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	59.86%
Debt Cost	5.71%
Equity Weight	40.14%
Equity Cost	5.71%
WACC	5.71%
Leverage	149.10%

11. Quality Control: FNCB Bancorp, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Auburn National Bancorporation

A-Score: 6.5/10

Value: 7.3

Growth: 3.8

Quality: 6.8

Yield: 8.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Provident Financial Holdings

A-Score: 6.3/10

Value: 5.3

Growth: 4.3

Quality: 4.3

Yield: 7.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Pacific Premier Bancorp

A-Score: 5.9/10

Value: 5.5

Growth: 3.7

Quality: 7.4

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

FNCB

A-Score: 5.1/10

Value: 7.5

Growth: 4.4

Quality: 6.8

Yield: 4.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Independent Bank Group

A-Score: 4.4/10

Value: 3.6

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

HMN Financial

A-Score: 3.9/10

Value: 3.9

Growth: 2.8

Quality: 7.5

Yield: 1.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.68%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.71%

FNCB Bancorp, Inc. - US3025781093

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FNCB

1.c. Company Highlights

Higher Yield

Weak Momentum

Medium Volatility

Average Quality

Average Yield

Stable Momentum

Average Growth

Strong Momentum

Fairly Valued

More Volatile

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Customary Retail and Commercial Banking

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

Online Banking

Mobile Banking

8. FNCB Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: FNCB Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.75$

Current Price

6.75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA