FNCB Bancorp Inc (FNCB), a bank holding company operating in Northeastern Pennsylvania, is expected to report lower earnings year-over-year in 2019. We expect higher non-interest expense, and lower non-interest income to result in earnings decline. Meanwhile, we expect net interest income to be mostly flat year-over-year on the back of slight loan growth and net interest margin reduction. Details of our estimates are given below.
Lower Interest Rates to Drive Recovery in Loan Portfolio Size
FNCB’s net loans declined in 2Q 2019 due to one-off events, including the planned runoff of indirect automobile